Tourism Organisational Performance FY2023/24 Q2 Detailed Report Presentation
This detailed report presentation showcases the Organisational Performance for Quarter 2 of FY2023/24 to the Portfolio Committee on Tourism. It covers Environmental Analysis, Summary Report, Corporate Compliance, Bidding Impact, Financial Performance, Human Capital Governance, and more. The report highlights key insights such as international arrivals comparison, foreign expenditure trends, and domestic performance metrics for the tourism industry.
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FY2023/24 QUARTER 2 ORGANISATIONAL PERFORMANCE REPORT Detailed Presentation to Portfolio Committee on Tourism 14th November 2023
Contents 1 2 3 4 5 6 7 8 9 Environmental Analysis Quarter 2 Performance Against FY23/24 APP: Summary Report Corporate Compliance Campaign Report Bidding Impact Report Financial Performance Human Capital Governance Quarter 2 Performance Against FY23/24 APP: Detailed Report Abbreviations & Acronyms 2
From January to August, there were 5.47 million arrivals, marking a significant uptick of 63.4%. The primary driving force behind the total arrivals was Africa-Land, comprising nearly 4 million arrivals, reflecting a substantial increase of 66.1%. In the same timeframe, Africa Air arrivals amounted to 157.5 thousand, indicating a growth of 38.4%. Within the Asia , Australasia and Middle East region, there were almost 240 thousand arrivals, signifying an impressive surge of 86.9%. Notably, Asia experienced the most substantial percentage growth, primarily fueled by the delayed opening of the Chinese market, which saw an astounding 247% increase during this period. International Arrivals 2023 YTD International Arrivals Cumulative comparison | Jan Aug (2023 vs 2022) 4 Source: Tourism & Migration Report Statistics South Africa, August 2023
TTFDS (Spend) Trend 2023 YTD Insights The foreign direct expenditure from tourists during the initial half of 2023 has exhibited superior surpassing the levels recorded in 2019 by an approximate margin of R5 billion. The African continent, particularly its land- based regions, has emerged as the leading contributor to this substantial expenditure, amounting to R19 billion, outpacing Europe's expenditure of R16.5 billion. Notably, the top countries demonstrating the highest spending tendencies are Zimbabwe, the United Kingdom, the United States, and Germany. performance, 5 Source: SAT Departure Survey & Tourism & Migration Report Statistics South Africa, August 2023
Insights Domestic Performance 2023 YTD In the second quarter of 2023, there has been a notable upswing in both totaltrips and holidaytrips in contrast to the metrics Specifically, Q2 2023 witnessed a total of 10 million trips, culminating in tourism expenditure of 13 billion rands. Total Trips from 2019. a domestic Holiday Trips Holiday trips Total Spend 6 Source: SAT Domestic Tourism Survey
QUARTER 2 PERFORMANCE AGAINST FY23/24 APP Summary Report 7
Overview of FY23/24 Year To Date Performance Overview of FY23/24 Year To Date Performance FY23/24 FY23/24 FY22/23 FY22/23 Quarter Quarter Planned Targets Planned Targets Targets Achieved Targets Achieved % Performance % Performance Year on Year Comparative Analysis Year on Year Comparative Analysis 1 50 37 74% 65% (24 targets achieved against 37 planned targets) 2 52 44 85% 71% (24 targets achieved against 34 planned targets) Quarter 2 Programme Performance Quarter 2 Overall Performance 16 120% 14 14 85% 14 100% 100% 92% 12 12 4 100% 4 12 11 86% 80% 10 9 8 8 64% 8 60% 52 6 40% 44 4 4 4 3 2 2 20% 2 1 0 0% 1 2 3 4 5 Planned Targets Achieved Targets Significant Progress Due Achieved Significant progress Not Achieved % Achievement Not Achieved % Achievement 8
Overview of FY23/24 Quarter 2 Performance - Programme 1: Corporate Support Implemented 2 of the 3 planned deliverables from the FY2022/23 Risk Management Maturity Assessment Report, namely the review of the Combined Assurance Framework and project risk assessments. The The review review of of the lack lack of of capacity capacity in in the the business business unit unit. . A Fixed-Term Contract will be considered as mitigation. the risk risk appetite appetite and and tolerance tolerance framework framework was was not not achieved achieved due due to to a a Implemented Implemented the the responsible business units and the determination assessment was conducted on some elements of findings and the outcome will be socialised. the planned planned milestones milestones in in Corporate Corporate Compliance Compliance Campaign Campaign including the audit action plan for FY22/23 and the allocation of findings to 52 52% % implementation implementation of of valid Management. valid audit audit recommendations recommendations was was achieved, achieved, exceeding exceeding the the target target of of 50 50% %. This is attributed to timeous implementation by 100 100% % of of compliant compliant invoices invoices were were paid paid within within thirty thirty days days from date of receipt due to effective internal controls. During Quarter 2, as part of the drive to promote integrity and ethical conduct in SCM, the procedures procedures and and conducted conducted organisation organisation- -wide wide training training on The target of developing developing a a Policy Policy to to execute execute the Optimisation Strategy. As reported in the first quarter, the project is adversely affected by the change in approach and the scope of work. the entity entity monitored monitored non non- -compliance compliance to to SCM SCM policies policies and and on Ethics Ethics in in the the Budget Budget Optimisation Optimisation Strategy the Public Public Service Strategy was Service. . was not not achieved achieved due to delays in the finalisation of the Budget The action action plan the development of an internal communications framework. plan to to address address issues issues arising arising from from the the prior prior year s year s staff staff engagement engagement assessment assessment was was implemented implemented, through staff feedback sessions and In terms of Employment Equity targets, SA positions positions against against a a target target of of 50 across all occupational levels) against voluntary disclosure continues to be a challenge in relation to PWDs. SA Tourism Tourism achieved PwDs against against a a target against a a target target of of 60 achieved 66 target of of 2 2% %; and m maintained 60% %. . The moratorium in place currently impacts the achievement of some EE targets whilst 66% % women women against against a a target aintained at at least target of of 60 least 75 60%; 44 75% % Black Black people 44% % women women in in senior people (Africans, Coloureds, and Indians senior and and top top management management 50% %; ; 0 0% % PwDs 2 2% % Labour Labour Turnover Turnover (LTO) (LTO) as % of average headcount was was achieved achieved against against a a target target of of < <8 8% %. . The target of < <8 8% % Vacancies place. Vacancies as % of staff establishment was was not not achieved achieved as as the the quarter quarter ended ended on on 14 14%. This is attributed to the moratorium in The Quarter Quarter 2 2 deliverables HC and Payroll solution. deliverables of of the the FY FY2023 2023/ /24 24 roadmap roadmap of of the the ICT ICT Governance Governance Framework Framework was was achieved achieved, including the implementation of the Smart 9
Overview of FY23/24 Quarter 2 Performance - Programme 2: Business Enablement The Quarter Quarter 2 2 deliverables planned planned. This is attributed to timeous planning of outputs. deliverables of of the the Integrated Integrated Digital Digital and and Analytics Analytics Operating Operating Framework Framework progressed progressed as as With regards to the provision of data analytics and strategic insights, several produced produced including the International Leisure Brand Tracker Global Fieldwork Report, the Departure Survey Fieldwork Report, the Domestic Tourism Survey Fieldwork Report, the Business Events Brand Equity Survey Fieldwork Report and the Domestic Leisure Brand Tracker Fieldwork Report. several tourism tourism tracking tracking surveys surveys were were In addition, the Quarterly Statistics Statistics and and Performance Quarterly Trend Performance Report Trend Analysis Analysis Report Report were were produced Report and produced. . and 2 2 thought thought leadership leadership pieces, pieces, and and the the quarterly quarterly Tourism Tourism The Quarter Quarter 2 2 improvement achieved achieved. This included inter alia a joint meeting of CEOs and CMOs of Provincial Tourism Authorities, the Minister s Marketing Workshop with sector, and the participation at several sector engagements. improvement actions actions from from the the FY FY2022 2022/ /23 23 South South African African Tourism Tourism Corporate Corporate Brand Brand Index Index were were The plan delivered delivered as planned given delays in procurement. The tender will be re-issued in Quarter 3. plan of of action action to to improve improve the the rating rating as as the the Best Best Company Company to to Work Work for for Survey, Survey, or or equivalent, equivalent, was was not not The Quarter Quarter 2 2 milestones amplification of the BRICS Summit, promotion of the Netball World cup, the media launch of Tourism Month, and the promotion of sports tourism. milestones of of the the FY FY2023 2023/ /24 24 Global Global PR PR and and Communications Communications Plan Plan were were executed executed, including 10
Overview of FY23/24 Quarter 2 Performance - Programme 3: Leisure Tourism Marketing The Quarter Quarter 2 2 milestones and Rugby World Cup build up in stadium activation and media buy throughAll Blacks and Springboks match. milestones of of FY FY2023 2023/ /24 24 Global Global Tourism Tourism Brand Brand Campaign Campaign Plan Plan were were achieved achieved. This included a brand activation at the BRICS Summit The global global tourism The collaborations collaborations and/or SATSA SATSA digital digital platforms The campaign campaign plans intervention has been put in place to ensure that the Asia and and Australasia Region improves performance. The 360 West West Africa Africa and and Central, Central, East, East, and and Land Land Africa Africa markets were were implemented implemented and and progress progress reports reports wer were e provided provided. The CEL Brand Campaign saw the promotion of 424 deals for provinces in 12 African countries and features in in-flight magazines of airlines promoting SA. As part of the West Africa Summer Campaign, 5 content creators were hosted to promote South African lifestyle events. Heritage Day activities were undertaken to profile destination South Africa. Developed Developed the the 360 360 West West Africa Africa and and Central, Central, East, East, and and Land Land Africa Africa markets markets brand Implemented Implemented the the Sho t Sho t Left Left Travel Travel Week Week Campaign Campaign from 4thto 10thSeptember. 920 travel week deals from all provinces were featured on the platform. Developed Developed and and approved approved the the Sho t Sho t Left Left Summer Summer Deals Deals Driven Driven Campaign Campaign Concept The campaign aims to promote affordable and accessible domestic travel. Implemented Implemented 79 79 distribution distribution channel channel initiatives initiatives against against a a target target of of 2 25. The target was exceeded as the entity leveraged additional opportunities with channel and provinces. Implemented Implemented the the Quarter Quarter 2 2 milestones milestones of of the the FY FY2023 2023/ /24 24 Global Global Trade Trade Plan Plan which included an aviation chapter at the BRICS Business Council Annual Report, participation at the Inter-Provincial Cruise Tourism Workshop, and BRICS Aviation Working Group Conference and the Air Algerie Workshop. Implemented Implemented the the Quarter Quarter 2 2 milestones milestones of of the the Global Global Advocacy Advocacy Programme Programme as planned. Key highlights include thought leadership pieces, media and panel engagements, and media articles. The quarterly quarterly tourism tourism economic economic impact impact communication communication activity activity was was successfully performance towards sector recovery. tourism exceptionalism campaign and/or partnerships partnerships achieved platforms. . plans for for each each hub campaign was achieved in in Quarter was localised localised in in South Quarter 1 1 were South Africa were implemented implemented through Africa through through the the launch launch of of the through the the Siya Siya Kolisi the Siya Siya Kolisi Kolisi AV Kolisi partnership partnership. AV launc launch h and and the the amplification amplification through through hub were were executed executed with with progress progress reports reports per per hub hub provided, except for the Asia and and Australasia Region. An markets campaigns campaigns 1 1 (CEL Brand Campaign) and and 2 (West Africa Summer Campaign) brand campaign campaign 3 3 concepts concepts as as planned planned. Concept for implementation from 1stOctober 2023 to 14thJanuary 2024. successfully ac achieved through an opinion piece focusing on tourism 11
Overview of FY23/24 Quarter 2 Performance - Programme 4: Business Events The planned planned milestones services. The Global Global B B2 2B B Campaign delegate boosting. 30 30 bid bid submissions submissions were 2 2 business business events events were Training Workshop Driving Professionalism in Events, from 28thto 29thSeptember 2023, in Mossel Bay. SAACI Congress, from 30thJuly to 1stAugust 2023, in Addo. The Quarter Quarter 2 2 Business Business Events Events Bidding Bidding Impact Impact Report Report was During the first quarter, in partnership with the local business events industry and Convention Bureaus, the entity sourced and submitted 33 bids for international business events to be hosted in SA between 2022 and 2029. The 33 bid submissions have a combined estimated economic value of R937m and may potentially attract 35 865 international and regional delegates to SA between 2022 and 2029. Thus far, South Africa has won 7 of the bids submitted. These secured bids may contribute R13m to SA's economy between 2022 - 2025 and attract 675 international and regional delegates. The secured conferences will contribute to the regional spread of business events and will be hosted in Johannesburg, Tshwane, Cape Town, Sun City, and Potchefstroom. The Post Post- -Show Show Economic Economic Impact Impact Study Study briefing briefing for for Africa's Africa's Travel Travel Indaba Planning Planning for for Meetings Meetings Africa Africa 2024 2024 Reimagined Reimagined was was undertaken undertaken with the formulation of the Communication Strategy. Planning Planning for for IMEX IMEX America, America, IBTM IBTM and and WTM, WTM, progressed progressed as planned. milestones in in approved approved Domestic Domestic B B2 2B B Campaign Campaign Plan Plan were were achieved achieved, including 2 case studies and bid support Campaign Plan Plan was was executed executed, including the launch of the Exceptionalism Global AV, 2 sector stories, and were submi submitted as planned. were hosted hosted in in VTSDs VTSDs: was produced produced. The report highlights: Indaba 2023 2023 Reimagined Reimagined was was undertaken undertaken as planned. 12
Overview of FY23/24 Quarter 2 Performance - Programme 5: Tourist Experience 4 4 261 MOUs and the TravelStart partnership, were implemented in the entity s drive to meet the target. 261 establishments establishments were were graded graded against the target of 2 713. Special funding projects, provincial The Quarter Quarter 2 2 milestones executed executed, which included the development of the change management plan, progress reported on the development of the operational model, and the TGCSA Summer Campaign was developed. milestones in in the the grading grading model model and and TGCSA TGCSA Value Value Proposition Proposition Roadmap Roadmap were were Developed Developed the developed in Quarter 1. the annual annual Product Product Proposition Proposition Roadmap Roadmap, in support of the Product Proposition Three Three- -Year development of the roadmap to guide strategy execution. Year Tourism Tourism Value Value Chain Chain Strategy Strategy was was approved approved as planned. The next step would be the 13
Quarter 2 Corporate Compliance Campaign Report Quarter 2 Corporate Compliance Campaign Report South African Tourism is an organisation striving to obtain a clean audit outcome for the FY2022/2023, improving from the prior year s unqualified opinion. Key to this endeavour is the conceptualisation of Operation Clean Audit (OPCA). OPCA s objective is to ensure that the internal control environment is effective, efficient, and conducive to SAT obtaining favourable audit outcomes which could result in improved productivity and its goal is to receive a clean audit within 24 months, by March 2026. The OPCA project includes the following focus areas: financial management supply chain management human capital management legal services non-financial performance management risk management audit management 14 14
Quarter 2 Corporate Compliance Campaign Report Quarter 2 Corporate Compliance Campaign Report Based on the planned targets for Quarter 2, the following performance was achieved: Quarterly plan for the Corporate Compliance Campaign was developed and approved by the ACEO within the first month of the quarter. An audit action plan for FY22/23 audit findings was compiled after the final Management Report was received from Auditor General. Audit Findings were categorized per business unit. Audit Action plan was tracked and matters that cannot be resolved were escalated to EXCO. The determination assessment was conducted on some elements of findings and the outcome to be socialised. The Operation Clean Audit Steering Committee tracks the mitigation of internal audit and external audit findings monthly and identifies areas for intervention where challenges are noted. 15 15
Quarter 2 Bidding Impact Report Quarter 2 Bidding Impact Report For Quarter 1of the 2023/24 Financial Year (April - June), the SANCB, in conjunction with the local business events industry and Convention Bureaus, sourced and submitted 33 bids for international business events to be hosted in South Africa between 2022 and 2029. The 33 bid submissions have a combined estimated economic value of R937m and can potentially attract 35,865 international and regional delegates to South Africa between 2022 and 2029. Thus far, South Africa has won 7 of the bids submitted for the 2023/24 financial year. These secured business pieces will contribute R13m to South Africa's economy between 2022 - 2025 and attract 675 international and regional delegates. The SANCB invested R2.7m in bid support through its Bid Support Programme to attract business events linked with the National Government's development priorities. The secured conferences will also contribute to the regional spread of business events and will be hosted in Johannesburg, Tshwane, Cape Town, Sun City, and Potchefstroom. Estimates are that 30 international and regional bids will be submitted for meetings, incentives, conferences and exhibitions during FY23/24 Quarter 2. 16 16
Overview of FY23/24 Quarter 2 Programme Performance Overview of FY23/24 Quarter 2 Programme Performance PROGRAMME PROGRAMME QUARTER 2 PLANNED TARGET QUARTER 2 PLANNED TARGET PERFORMANCE FOR QUARTER 2 PERFORMANCE FOR QUARTER 2 Implement Management Maturity Assessment Report the recommendations from the FY2022/23 Risk Three deliverables were planned, namely the annual review of Risk Appetite and Tolerance Framework; review of the Combined Assurance Framework; and project risk assessments. The annual review of the Risk Appetite and Tolerance Framework was not achieved. The 2 planned deliverables of the Quarter 2 Corporate Compliance Campaign Action Plan were implemented. 52% implementation of valid audit recommendations 100% payment of compliant invoices within thirty days from date of receipt Implement the Quarter 2 milestones in Corporate Compliance Campaign 50% implementation of valid audit recommendations 100% payment of compliant invoices within thirty days from date of receipt Implement in Quarter 2: 4. Monitoring of non-compliance to SCM policies and procedures 5. Conduct organisation wide training on Ethics in the Public Service Develop and approve Policy to execute Budget Optimisation Strategy Monitoring of non-compliance to SCM policies and procedures and organisation wide training on Ethics in the Public Service were conducted. Policy to execute Budget Optimisation Strategy was not developed nor approved. The planned deliverables for the quarter including staff feedback sessions and the development of an internal communications framework were implemented. 66% 44% 0% 75% 1: Corporate Support Implement the action plan (to address issues arising from the prior year s staff engagement assessment) 60% women in SA Tourism 50% women in senior and top management positions in SA Tourism 2% people with disabilities employed in SA Tourism Maintain at least 60% Black people (Africans, Coloureds, and Indians across all occupational levels) <8% Labour Turnover (LTO) as % of average headcount 2% <8% Vacancies as % of staff establishment Implement the Quarter 2 deliverables of the FY2023/24 roadmap of the ICT Governance Framework 14% The Quarter 2 deliverables of the FY2023/24 roadmap of the ICT Governance Framework namely the smart HC and Payroll Solution were implemented as planned. 17 17
Overview of FY23/24 Quarter 2 Programme Performance Overview of FY23/24 Quarter 2 Programme Performance PROGRAMME PROGRAMME QUARTER 2 PLANNED TARGET QUARTER 2 PLANNED TARGET PERFORMANCE FOR QUARTER 2 PERFORMANCE FOR QUARTER 2 The 8 planned deliverables in line with the Roadmap were achieved. Implement the Quarter 2 milestones as per the Year 2 Roadmap of the Integrated Digital and Analytics Operating Framework International Leisure Brand Tracker Global Fieldwork Report International Leisure Brand Tracker Global Fieldwork Report produced. Departure Survey Fieldwork Report produced. Domestic Tourism Survey Fieldwork Report produced. Business Events Brand Equity Survey Fieldwork Report produced. Domestic Leisure Brand Tracker Fieldwork Report produced. 1 Quarterly Trend Analysis Report produced. 2 thought leadership pieces published. 1 Tourism Statistics and Performance Report produced. The planned deliverables for the improvement actions from the FY2022/23 South African Tourism Corporate Brand Index were achieved. Plan of action to improve rating was not developed. Departure Survey Fieldwork Report Domestic Tourism Survey Fieldwork Report Business Events Brand Equity Survey Fieldwork Report Domestic Leisure Brand Tracker Fieldwork Report 1 Quarterly Trend Analysis Report 2 thought leadership pieces published 1 Tourism Statistics and Performance Report Implement the Quarter 2 improvement actions from the FY2022/23 South African Tourism Corporate Brand Index 2: Business Enablement Develop plan of action to improve rating (Best Company to Work for Survey, or equivalent) Implement the Quarter 2 milestones as per the FY2023/24 Global PR and Communications Plan Implemented the 8 deliverables for Quarter 2 in line with the FY2023/24 Global PR and Communications Plan. 18 18
Overview of FY23/24 Quarter 2 Programme Performance Overview of FY23/24 Quarter 2 Programme Performance PROGRAMME PROGRAMME PERFORMANCE FOR QUARTER 2 PERFORMANCE FOR QUARTER 2 QUARTER 2 PLANNED TARGET QUARTER 2 PLANNED TARGET Implement Quarter 2 milestones of FY2023/24 Global Tourism Brand Campaign Plan 1 global tourism campaign localised in South Africa The planned deliverables for Quarter 2 in line with the FY2023/24 Global Tourism Brand Campaign Plan were implemented. 1 global tourism campaign was localised in South Africa Roll-out of collaborations and/or partnerships The roll-out of collaborations was delivered. Execute campaign for each hub The target was achieved but the approval for the Australasia, Japan, and China hubs was not obtained as required. The target was achieved but the approval for the Australasia, Japan, China and India hubs was not obtained as required. The West Africa and Central, East and Land Africa markets campaigns 1 and 2 were implemented. The progress reports campaign 1 and 2 were completed. Campaign progress report per hub Implement 360 West Africa and Central, East, and Land Africa markets campaigns 1 and 2 Campaigns 1 and 2 progress reports 3: Leisure Tourism Marketing Develop 360 West Africa and Central, East, and Land Africa markets brand campaign 3 concepts Implement Sho t Left Travel Week Campaign Develop and approve the Sho t Left Summer Deals Driven Campaign Concept Implement 25 distribution channel initiatives Implement the Quarter 2 milestones of FY2023/24 Global Trade Plan Implement the Quarter 2 milestones of the Global Advocacy Programme 1 quarterly tourism economic impact communication activity The 360 West Africa and Central, East, and Land Africa markets brand campaign 3 concepts were developed. The Sho t Left Travel Week Campaign was implemented. Developed and approved the Sho t Left Summer Deals Driven Campaign Concept Implemented 79 distribution channel initiatives . The 3 planned milestones of the FY2023/24 Global Trade Plan for Quarter 2 were implemented Implemented 7 Quarter 2 milestones of the Global Advocacy Programme 12 economic impact communication activities 19 19
Overview of FY23/24 Quarter 2 Programme Performance Overview of FY23/24 Quarter 2 Programme Performance PROGRAMME PROGRAMME PERFORMANCE FOR QUARTER 2 PERFORMANCE FOR QUARTER 2 QUARTER 2 PLANNED TARGET QUARTER 2 PLANNED TARGET Implement approved Domestic B2B Campaign Plan Implement Quarter approved Global B2B Campaign Plan 30 bid submissions 2 business events hosted in VTSDs Quarter 2 Business Events Bidding Impact Report Post-Show Economic Impact Study briefing (Africa's Travel Indaba 2023 Reimagined) Planning for Meetings Reimagined Communication Strategy formulation Plan for IMEX America, IBTM and WTM Quarter 2 milestones in Implemented Domestic B2B Campaign Plan for Quarter 2. Implemented the 3 planned milestones in approved Global B2B Campaign Plan for Quarter 2. 30 bid submissions 2 business events hosted in VTSDs Quarter 2 Business Events produced. Post-Show Economic Impact Study briefing was undertaken. the 4 planned milestones in approved 2 milestones in Bidding Impact Report 4: Business Events Africa 2024 Planning Communication Strategy formulated. for Meetings Africa 2024 Reimagined Planning for IMEX America, IBTM and WTM undertaken. 20 20
Overview of FY23/24 Quarter 2 Programme Performance Overview of FY23/24 Quarter 2 Programme Performance PROGRAMME PROGRAMME PERFORMANCE FOR QUARTER 2 PERFORMANCE FOR QUARTER 2 QUARTER 2 PLANNED TARGET QUARTER 2 PLANNED TARGET 2 713 graded establishments 4 261 graded establishments. Implement Quarter 2 milestones in the grading model and Proposition Roadmap Develop Product Proposition Roadmap Implemented the 3 planned milestones in the grading model and Proposition Roadmap. Developed Product Proposition Roadmap. TGCSA Value TGCSA Value 5: Tourist Experience Approve Three-Year Tourism Value Chain Strategy Three-Year Tourism Value Chain Strategy was approved. 21 21
Overview of FY23/24 Quarter 2 Programme Performance: Areas of Under Overview of FY23/24 Quarter 2 Programme Performance: Areas of Under- -Performance Performance PROGRAMME PROGRAMME QUARTER QUARTER 2 TARGET 2 TARGET MITIGATING ACTIONS MITIGATING ACTIONS Implement the recommendations from the FY2022/23 Risk Management Maturity Assessment Report A lack of capacity within the Business Unit led to the one planned deliverable not being delivered. The entity will consider a fixed-term contract to solve for the lack of capacity in the business unit. The approach to the strategy development was revised which affected the planned timelines. Mitigating measures will be implemented to ensure that the project is concluded as planned. Appointment of women in top and senior positions will be prioritised once the moratorium is lifted. The entity is prioritising the employment of people with disabilities in the recruitment that is underway. Continuous awareness internally is undertaken. The recruitment of critical positions has commenced through fixed-term contracts. Develop and approve Policy to execute Budget Optimisation Strategy 1: Support Corporate 50% management positions in SA Tourism 2% people with disabilities employed in SA Tourism women in senior and top <8% establishment Vacancies as % of staff 22 22
Overview of FY23/24 Quarter 2 Programme Performance: Areas of Under Overview of FY23/24 Quarter 2 Programme Performance: Areas of Under- -Performance Performance PROGRAMME PROGRAMME QUARTER QUARTER 2 TARGET 2 TARGET MITIGATING ACTIONS MITIGATING ACTIONS Develop plan of action to improve rating (Best Company to Work for Survey, or equivalent) The entity will undertake an organisational assessment focusing on areas that would lead to the entity becoming an employer of choice. The tender was published but errors were identified resulting in the cancellation of the tender. This led to a delay in achieving the planned target. The tender will be re-issued by 31stOctober 2023. The target was achieved but the approval for the Australasia, Japan, and China hubs was not obtained as required. There is a significant capacity deficit in the Tourism Execution Business Unit which adversely impacts its ability to meet its targets. Management has requested that critical vacancies be recruited for to provide the requisite capacity. The target was achieved but the approval for the Australasia, Japan, China and India hubs was not obtained as required. There is a significant capacity deficit in the Tourism Execution Business Unit which adversely impacts its ability to meet its targets. Management has requested that critical vacancies be recruited for to provide the requisite capacity. 2: Business Enablement Execute campaign for each hub 3: Leisure Tourism Marketing Campaign progress report per hub 23 23
Financial Performance Revenue PROGRAMME APP ANNUAL BUDGET R'000 INCOME FORECAST BY 30 SEP 2023 REVENUE R'000 % OF ACTUAL INCOME ON ANNUAL BUDGET % OF ACTUAL INCOME ON FORECAST INCOME TO DATE 87% REASONS FOR VARIANCE INCOME FORECAST Q2 REVENUE Q2 R'000 Tranfer from the Department of Tourism 1 344 672 672 336 586 683 44% The allocation was only received in Q1 and no further grants have been transferred in Q2. Revenue is recognised based on approval from the Tourism Business Council of South Africa, no revenue was received In Q2. However funds were subsequently received in Q3. The TGCSA has overachieved its targets by almost 50% however the delay in implementation of the Tourism Incentive Programme for qualifying graded establishment has had a negative impact on this line item Sundry revenue includes interest generated from a favourable bank balance in the first quarter. Exhibition income will be recognised in Q3. 197 383 - TOMSA voluntary levies 53 972 26 986 - 0% 0% 13 493 - Grading Revenue 13 211 6 605 1 176 9% 18% 3 580 502 Sundry Revenue 62 980 25 761 17 928 28% 70% 18 609 9 351 41% 83% TOTAL REVENUE 1 474 835 731 688 605 787 233 065 9 853 25
Financial Performance Expenditure by Programme Programme Annual Budget R'000 EXPENDITURE FORECAST BY 30 SEP 2023 EXPENDITURE R'000 %EXPENDITURE ON ANNUAL BUDGET % OF ACTUAL EXPENDITURE ON FORECAST EXPENDITURE TO DATE 113% REASONS FOR VARIANCES EXPENDITURE FORECAST Q2 EXPENDITURE Q2 R'000 Corporate Support 161 718 112 701 127 155 79% The year to date variance includes underspending in compensation for employees due to vacancies, however is offset by office rental paid upfront as per contractual obligations, and non cash items such as depreciation and amortisation. The cumulative overspending is due to brand tracking services and global subscriptions which have been commited as per contractual obligations. Due to timing, the current quarter reflects a higher budget. The cumulative overspend variance is attributable to higher unrealised foreign exchange transactions. The cumulative overspend variance is due to increased sale events which require upfront commitment. The current quarter reflects a higher budget owing to the overspend in the previous quarter. The variance is due to underspend in production of plaques project which will be completed in Q3. 44 503 44 343 Business Enablement 88 421 33 877 45 124 51% 133% 12 056 10 050 Leisure Tourism Marketing 910 502 541 589 559 898 61% 103% 269 932 241 518 Business Events 221 746 165 532 173 076 78% 105% 51 035 36 350 92 448 52 659 45 124 49% 86% 30 209 20 603 Visitor Experience 64% TOTAL 1 474 835 906 357 950 378 105% 407 734 352 865 26
Financial Performance Expenditure by Economic Classification ECONOMIC CLASSIFICATION ANNUAL BUDGET EXPENDITURE FORECAST BY 30 SEP 2023 EXPENDITURE % OF % OF ACTUAL EXPENDITURE ON FORECAST EXPENDITURE TO DATE REASONS FOR VARIANCES EXPENDITURE ON ANNUAL BUDGET Compensation of employees 261 106 127 376 114 532 44% 90% The underspending is due to vacancies which results in underpending as per budgeted organogram The overspend in good and services is attributable to overspending in Programme 2,3,4 and 5 Goods and services 1 213 729 778 981 835 847 69% 107% TOTAL EXPENSES 1 474 835 906 357 950 378 64% 105% 27
Financial Performance Analysis of Goods and Services Goods and Services Analysis 7% 11% Media 31% Production 5% Activation 2% Total Travel Expenses Hosting Capabilities Research 27% 17% 28
Human Capital Management: Employment Equity Gender Male Female Foreign Total Occupational Level African Coloured Indian Chinese White Subtotal African Coloured Indian Chinese White Subtotal Male Female Subtotal Top Management 0 0 0 0 0 0 1 0 1 0 0 2 0 0 0 2 Senior Management 3 1 0 0 1 5 5 2 1 1 0 9 0 0 0 14 Professionally Qualified 20 0 1 0 2 23 25 4 3 0 3 35 7 10 17 75 Skilled 10 1 1 0 2 14 26 4 3 0 3 36 5 11 16 66 Semi-Skilled 4 0 0 0 0 4 4 0 0 0 0 4 0 0 0 8 Unskilled and defined decision-making 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Permanent 37 2 2 0 5 46 61 10 8 1 6 86 12 21 33 165 Contract Labour (including interns) 3 0 0 0 0 3 6 0 0 0 0 6 0 0 0 9 Grand Total 40 2 2 0 5 49 67 10 8 1 6 92 12 21 33 174 30
GOVERNANCE 31
Board Meetings 8thAugust 2023 22ndAugust 2023 5thSeptember 2023 26thSeptember 2023 30thAugust 2023 Board Meeting Details Special meeting Ordinary meeting (cont.) Special meeting Special meeting Ordinary meeting Virtual Virtual Virtual Physical Virtual T Harris T Harris T Harris T Harris T Harris K Zama K Zama K Zama K Zama K Zama Attendance - Z Mntambo Z Mntambo U Pillay U Pillay U Pillay U Pillay - - - Ms Pillay appointed on 14th August 2023. 32
Committee Meetings Marketing and Commercial Committee Human Capital and Remuneration Committee TGCSA Awards Committee Audit and Risk Committee 24thJuly 2023 24thJuly 2023 25thJuly 2023 26thJuly 2023 Committee Meeting Details Ordinary meeting Ordinary meeting Ordinary meeting Ordinary meeting Physical Physical Virtual Virtual K Zama Attendance Z Mntambo Z Mntambo K Zama S Botha (Committee Member) Considering the reduced capacity of the current Board, on 9th May 2023 the Board resolved to designate Mr. Mntambo to manage the board committee functions for the MARCOM and Awards Committee as well as Ms. Zama to manage the board committee functions for ARCO and HCREMCO. All Board members may still attend any of the committee meetings. Ms. Pillay was appointed 14th August 2023. 33
QUARTER 2 PERFORMANCE AGAINST FY23/24 APP Detailed Report: Programme 1 Corporate Support 34
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation Collaboration Business ensure achievement of the target as well as continuous engagement Executive Managers. A lack of capacity within the Business Unit led to the one planned deliverable being delivered. Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.1. Governance and internal control 2.1.1. risk maturity level Improved Improved maturity level up by one level from the assessment risk 1 Implement recommendations the FY2022/23 Management Assessment Report the from Risk As recommendations from the FY2022/23 Management Assessment Report, the 3 planned deliverables Quarter 1 were achieved. part of the None with None required. Units to Risk prior Maturity Maturity planned for with 2 Implement recommendations the FY2022/23 Management Assessment Report the from Risk Three planned, annual Appetite Framework; review of the Combined Framework; risk assessments. Implemented the 3 planned Quarter 1 milestones in the Corporate Campaign Operation Clean Audit implementation plan. The 2 planned deliverables of the Quarter 2 Corporate Compliance Action Plan implemented. deliverables namely review and were the Risk The review of the Risk Appetite and Tolerance Framework was achieved. None. annual The entity will consider fixed-term contract solve for the lack capacity in the business unit. None required. a of Maturity Tolerance to not Assurance and project of not 2.1.2. Compliance Campaign (Operation Clean Audit) implemented Corporate FY2023/24 Corporate Compliance Campaign (Operation Clean Audit) implemented 1 Implement the Quarter 1 milestones in Corporate Compliance Campaign Collaboration within the organisation led to the achievement of this target. Compliance 2 Implement the Quarter 2 milestones in Corporate Compliance Campaign None. Collaboration within the organisation led to the achievement of this target. None required. Campaign were 35
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Attributes To Success / Reasons For Deviation Corrective Measures Output Quarter Quarterly Target Variance 2.1. Governance and internal control 2.1.3. Percentage implementation of valid internal and external recommendations 100% implementation of valid recommendation s 1 25% implementation of valid recommendations 26% of recommendations. implementation valid The was exceeded by 1%. target Management implemented the recommendations within the agreed action dates as indicated in the internal and external audit reports. Management implemented the recommendations within the agreed action dates as indicated in the internal and external audit reports. Effective internal controls led to the achievement of this target. audit audit audit audit 2 50% implementation of valid recommendations 52% of recommendations implementation valid The was exceeded by 2%. target None required. audit audit 2.2. Financial management 2.2.1. Percentage payment compliant invoices thirty days date of receipt 100% of invoices thirty days from date of receipt payment compliant within 1 100% 100% None None required. of within from 100% 100% None. Effective internal controls led to the achievement of this target. None required. 36
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation Progress Against Quarterly Or Annual Target 2023/24 Annual Target Corrective Measures Output Output Indicators Quarter Quarterly Target Variance 2.2. Financial management 2.2.2. initiatives promote and ethical conduct in supply management (SCM) implemented as per Section 57 of the PFMA Number of to 6 SCM ethics and integrity initiatives implemented 1 Implement in Quarter 1: Implemented the following: None Timeous planning led to the achievement of the target. None required. 1. budget related issued to business unit managers Letters confirming 1. Letters budget acknowledgment responsibilities budget owners as per section 57 of the PFMA were issued Business Managers on 2ndMay 2023. confirming integrity allocation accountability and and of by chain 2. Capability building for procurement committees to Unit 3. organisation SCM code of conduct Create awareness wide on 2. Capability building for procurement committees arranged by SCM and conducted by National Treasury on 8thJune 2023, through a virtual platform. was 3. Created organisation-wide the SCM Conduct. awareness on of Code 37
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation An effective implementat ion plan led to achievemen t of target. Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.2. Financial management 2.2.2. Number of initiatives to promote integrity ethical conduct supply management (SCM) implemented as per Section 57 of PFMA 6 SCM ethics and integrity initiatives implemented 2 Implement in Quarter 2: Implemented in Quarter 2: None. None required. 4. Monitoring of non-compliance to SCM policies and procedures 5. organisation training on Ethics in the Public Service 4. Monitoring of non- compliance to SCM policies and procedures 5. Conduct organisation wide training on Ethics in the Public Service and in chain Conduct wide the 38
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation The approach to the development was which the timelines. Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual TargetQuarter Corrective Measures Output Quarterly Target Variance 2.3. Revenue enhancement and cost optimisation 2.3.1. Optimisation Strategy developed Budget Finalised Budget Optimisation Strategy 1 Approve Optimisation Strategy Budget Budget Strategy approved. Optimisation was The was achieved. target not Mitigating measures be implemented to ensure that the project concluded planned. Mitigating measures will be implemented to ensure that the project is concluded as planned. not strategy will revised affected planned is as 2 Develop approve Policy to execute Optimisation Strategy and Policy Budget Optimisation Strategy developed approved. to execute The target was achieved. The to the strategy development was which the timelines. approach not Budget was not nor revised affected planned 39
Outcome Achieve good corporate and cooperative governance 2023/24 Annual Target Progress Against Quarterly Or Annual Target Attributes To Success / Reasons For Deviation Corrective Measures Output Output Indicators Quarter Quarterly Target Variance 2.4. Human capital management and development 2.4.1. engagement score Staff 3.13 engagement score Staff 1 Develop action plan to address issues arising from prior year s engagement assessment Implement action plan Action plan to address issues arising from the prior year s engagement assessment was drafted. None Despite capacity, Capital were able to prioritise this target the the Business lack Human of None required. the staff staff Unit 2 the The deliverables quarter feedback sessions and the development of an internal communications framework implemented. planned for A project tracker has been developed optimise performance against this target. None required. None. the staff to including were 2.4.2. Implementation of Employment Equity (EE) Plan: None required. 2.4.2.1. Percentage of women Tourism 60% 1 60% 65% The target was exceeded 5%. The appointment of women has been prioritised in line with the Employment Equity Plan supported by targeted recruitment. Continuous monitoring of the Employment Equity Plan has assisted in achieving this target. in SA by 2 60% 66% The was exceeded by 6%. target None required. 40
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target 2023/24 Annual Target Quarterly Target Attributes To Success / Reasons For Deviation Output Output Indicators Quarter Variance Corrective Measures Appointment of women in top and senior positions will be prioritised once the moratorium is lifted. 2.4.2.2. Percentage of women in senior and management positions Tourism 50% 1 50% 44% The target was not achieved by 6%. An increase in resignations and the moratorium impacts the ability replacements at senior and top management level. An increase in resignations and the moratorium impacts the ability replacements at senior and top management level. The target was not achieved due to low levels of declaration by employees. moratorium also impacts progress target. The target was not achieved due to a lack of declaration by employees. The moratorium also adversely progress on this target. top to recruit in SA 2 50% 44% The target was not achieved by 6%. Appointment of women in top and positions prioritised moratorium is lifted. The entity will implement a disability learnership, convene awareness sessions, and conduct a assessment analysis. The entity is prioritising the employment people with disabilities in the recruitment that is underway. awareness internally is undertaken. senior to recruit will once be the 2.4.2.3. Percentage of people disabilities employed in SA Tourism 2% 1 2% 0% The target was not achieved. with disability The adversely on readiness and this gap 2 2% 0% The target was not achieved. of impacts Continuous 41
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target 2023/24 Annual Target Attributes To Success / Reasons For Deviation Output Indicators Quarterly Target Corrective Measures Output Quarter Variance None required. 2.4.2.4. Maintain at least Black (Africans, Coloureds, Indians across all occupational levels) 60% 1 60% 75% The was exceeded by 5%. target The appointment of Black people been prioritised line with Employment Plan, supported by targeted recruitment. The appointment of Black people been prioritised line with Employment Equity Plan, supported by targeted recruitment. 60% people has in the and Equity 2 60% 75% The was exceeded by 15%. target None required. has in the 42
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Quarterly Target Attributes To Success / Reasons For Deviation Corrective Measures Output Quarter Variance The Capital Unit will consider fixed-term contracts increase capacity so that it is able to deliver its timeously. Human Business 2.4. capital management and development Human 2.4.3. Turnover (LTO) as % of average headcount Labour <8% 1 <8% 3% The achieved but the report was submitted the due date which is partial compliance to reporting requirements. target was Whilst the target was met, the quarterly headcount report was provided 12 days after the end of the quarter as opposed to 5 days after the quarter. This is due to the lack of capacity in Capital Business Unit which adversely impacts the unit s ability to meet times. There was a terminations terminations updated timeously. A moratorium is currently in place thus vacancies cannot be filled. after to its end of the the Human targets turnaround 2 <8% 2% None. decrease and reports in None required. the were Critical have prioritised recruitment through fixed-term contracts. The recruitment of positions commenced through term contracts. positions been 2.4.4. Vacancies as % of establishment <8% 1 <8% 14% The vacancy rate is 14% which is not in line with the target. for staff 2 <8% 14% The vacancy rate is 14% which is not in line with the target. A moratorium is currently in place thus vacancies cannot be filled. critical has fixed- 43
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target Attributes To Success / Reasons For Deviation 2023/24 Annual Target Corrective Measures Output Output Indicators Quarter Quarterly Target Variance In the event that approval the DOA is not obtained timely the matter will be escalated to the monthly meeting intervention. 2.5. Governance and controls ICT 2.5.1. Governance Framework implemented ICT FY2023/24 roadmap Governance Framework implemented 1 Implement Quarter deliverables of the FY2023/24 roadmap ICT Governance Framework the The deliverables of the FY2023/24 roadmap of the ICT Governance Framework planned Quarter 1 were achieved. The Quarter 2 deliverables of FY2023/24 roadmap the Governance Framework namely smart HC and Payroll Solution were implemented as planned. 6 The target was achieved the approval was obtained required. The performance is adversely by the application DOA in approving the framework roadmap. as per for ICT 1 but impacted partial of internal in a not as the manner, of the and EXCO for for None required. 2 Implement Quarter deliverables the roadmap of the ICT Governance Framework the None. Timeous planning of output-related activities led to the achievement of the target. 2 of the FY2023/24 of ICT the 44
QUARTER 2 PERFORMANCE AGAINST FY23/24 APP Detailed Report: Programme 2 Business Enablement 45
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation The Portfolio Evidence was not accessible. Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.6. Integrated Digital Analytics Operating Framework 2.6.1. Digital Analytics Operating Framework annual implemented Integrated Implementation of Year 2 Roadmap of the Integrated Digital Analytics Operating Framework 1 Implement Quarter 1 milestones as per the Year 2 Roadmap Integrated Digital and Analytics Framework the Implemented milestones planned for Quarter 1 milestones as per the Roadmap Integrated Digital and Analytics Framework The 8 deliverables with the were achieved. the The of could only be verified for 2 of the milestones planned Quarter 1. None. Portfolio Evidence of The Unit that the Portfolio of Evidence provided timeous in future. Business will ensure and and and of the Year of 2 is a the 8 in roadmap Operating fashion Operating for 2 Implement Quarter 2 milestones as per the Year 2 Roadmap Integrated and Operating Framework - the planned in Roadmap Timeous planning output-related activities assisted with the achievement the target. None required. line of of the Digital Analytics of 2.7. information gathering Tourism 2.7.1. Number of tourism information tracking completed 5 information tracking completed tourism 1 - - - - 2 International Leisure Brand Global Report International Brand Tracker Global Fieldwork produced. Leisure None. Timeous planning led to the achievement of the target. None required. surveys Tracker Fieldwork surveys Report 46
Outcome Achieve good corporate and cooperative governance Attributes To Success / Reasons For Deviation 2 Departure Survey Fieldwork Reports delivered instead of one quarterly report as per requirements. Timeous planning led to the achievement of the target. Progress Against Quarterly Or Annual Target Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.7. Tourism information gathering 2.7.1. Number of information tracking surveys completed 5 information tracking surveys completed tourism 1 Departure Survey Fieldwork Report 2 Departure Fieldwork Reports monthly Survey A fieldwork report not produced. quarterly monthly Additional training will be provided to the Business to compliance with the requirements. tourism was Unit were ensure TID TID 2 Departure Survey Fieldwork Report Departure Fieldwork produced. Survey Report None. None required. 47
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target Domestic Tourism Survey Fieldwork Report Tourism Survey Fieldwork Reports Attributes To Success / Reasons For Deviation Two Domestic Tourism Survey Fieldwork Reports delivered instead of one quarterly report as per TID requirements. A management approach led to the achievement of the target. - Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.7. information gathering Tourism 2.7.1. Number of information tracking surveys completed 5 information tracking surveys completed tourism 1 2 Domestic monthly A quarterly fieldwork report was produced . monthly Additional training will be provided to the Business to compliance with the requirements. None required. tourism were Unit not ensure TID 2 Domestic Tourism Survey Fieldwork Report Domestic Tourism Survey Fieldwork Report produced. - None. project 1 - - - 2 Business Events Brand Survey Fieldwork Report Business Events Equity Fieldwork Report produced. None. Timeous planning the achievement of the target. None required. Equity Brand Survey led to 48
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target - - Attributes To Success / Reasons For Deviation Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.7. information gathering Tourism 2.7.1. Number of information tracking surveys completed 5 information tracking surveys completed tourism 1 - - - tourism 2 Domestic Leisure Brand Fieldwork Report Domestic Leisure Tracker Fieldwork Report produced. None. A management approach led to the achievement of the target. project None required. Tracker Brand 49
Outcome Achieve good corporate and cooperative governance Progress Against Quarterly Or Annual Target Attributes To Success / Reasons For Deviation Output Indicators 2023/24 Annual Target Corrective Measures Output Quarter Quarterly Target Variance 2.8. Tourism trends analysis 2.8.1. of trend analysis reports Number 4 quarterly trend analysis reports 1 1 Quarterly Trend Analysis Report 1 Analysis produced. Quarterly Trend Report The achieved but the reporting requirements were not met. target was Partial compliance to TID requirements led to the achievement. Additional training will be provided to the Business Unit to compliance the requirements. None required. under- ensure with TID 2 1 Quarterly Trend Analysis Report 1 Analysis produced. Quarterly Trend Report None. A management approach led to the achievement of the target. The thought pieces were required to showcase data on the 24 Prioritisation Investment Markets. A management approach led to the achievement of the target. project 2.9. Tourism thought leadership 2.9.1. of leadership pieces published Number thought 8 leadership pieces published thought 1 2 leadership published thought pieces 25 thought leadership pieces published An additional 23 thought leadership pieces were produced. additional leadership None required. were Marketing and 2 2 leadership pieces published thought 2 thought leadership pieces published. None. project None required. 50
