Number of arrivals (millions) Western Cape Destination Performance Report: April-June 2016 Global Tourism Performance According to the United Nations World Tourism Organisation, international tourist arrivals grew by 4% between January and June 2016. Destinations worldwide reached a total of 561 million international tourists (overnight visitors), reflecting 21 million more tourists when compared to the same period of 2015. The first half of 2016 accounted for around 46% of the total international arrivals count for the year, with positive prospects anticipated for the remainder of the year. Asia and the Pacific demonstrated renewed strength between January and June 2016, recording a 9% growth in international arrivals and achieving the highest growth rate across world regions. International arrivals to the Americas grew by 4%, led by Central America and South America. Tourist arrivals to Europe grew by 3%, with solid growth from many destinations. The Sub-Saharan destinations rebounded strongly and contributed to a solid growth of 5% for Africa. 1,400 1,200 1,000 800 600 400 200 0 INTERNATIONAL TOURIST ARRIVALS, 2012-JUN 2016 YTD 2012 2013 2014 2015 Jan-Jun 2016 Arrivals 1,040 1,088 1,134 1,186 561 April May June GROWTH IN INTERNATIONAL TOURIST ARRIVALS BY REGION, APR-JUN- 2016 0.0 0.3 0.1 1.4 2.1 2.4 2.1 2.8 4.1 6.0 7.0 12.0 Europe Asia and the Pacific Americas Africa 1 Source: World Tourism Organisation, 2016 In ranking order, China retained its position as the world s top source market over the period, with global outbound trends reflecting a double-digit growth (19%) in expenditure from the market. The United States, the world s second largest market, increased by 8% in expenditure on outbound travel, largely attributed to a strong currency. INTERNATIONAL OUTBOUND TRENDS, JAN-JUN 2016 Ranking Top Global Markets % Growth in expenditure on international travel 1 China +19% 2 United States +8% Ranking in third position, Germany reported a 4% increase in international expenditure, while the United Kingdom, the fourth largest market, reflected another double-digit growth (10%) between January and June 3 4 Germany United Kingdom +4% +10% 2016. Source: World Tourism Organisation, 2016 Additional markets which portrayed a strong demand for outbound travel in the first half of 2016 were Spain (18%), India (16%), Norway (11%), Australia (10%) and Japan (6%). Challenging economic constraints and depreciated currencies in Russia and Brazil led to weak travel expenditure from these markets.
National Tourism Performance International Trends Foreign arrivals to South Africa accounted for 2.2 million of total tourism trips taken between April and June 2016, and recorded a double digit growth of 10.4% year-on-year. The fastest growth across regions was attained from Asia and Australasia (33.1%), the Americas (20.2%), Europe (17.5%) and the Africa-air markets (16.4%). In Q2 2016, the estimated Total Foreign Direct Spend (TFDS; excluding capital expenditure) in South Africa was R16.8 billion and increased by 10.6% year-on-year. The growth in tourism revenue between 2014 and 2016 is largely driven by the increase in items bought for the purpose of reselling (traders), food items and other expenditure. Shopping continued to rank as the leading spend category and grew from R3.7 billion in 2015 to R4.9 billion in 2016. During the quarter under review the exchange rate to major currencies continued to worsen, making it more favourable for international tourists to travel. South Africa recorded an average expenditure of R850 per foreign tourist per day. By region, the overseas markets reflected an increase in their daily spend, this can largely be due to the exchange rates. The Europeans spend increased by R400 to a total of R1300 and the Americans spend increased by R200 to reach R1400 per day in South Africa. International Tourism Indicators Q2 2015 Q2 2016 y-o-y % change Total number of tourist arrivals 2,015,056 2,248,082 10.4% Total foreign direct spend (excl capital expenditure) from tourists R15,2 billion R16,8 billion 10.6% Total number of bed nights spent by tourists 19,2 million 19,7 million 13.9% Average spend in South Africa per foreign tourist R7,900 R8,000 Average spend in South Africa per foreign tourist per day Average length of stay of tourists visiting South Africa R770 R850 9.8 nights 9.1 nights % of tourists who visited more than one province 14.2% 13.7% - 2 Domestic Trends In Q2 2016 domestic tourism accounted for 5.4 million trips and generated R6.4 billion in tourism revenue for South Africa. The decrease in domestic trips were largely driven by the shift in the Easter holidays, and had a negative impact on trips taken for the purpose of visiting family and friends. Despite the decline in the overall number of trips taken for the period, holiday and business trips grew by 26% and 30% respectively. South africa generated 19.8 million bed nights from the domestic market. The decline in bed nights was mainly attributed to the decrease in the total domestic trips for the period. While the average nights per domestic trip remained stable at 3.6 nights, bed nights spent in South Africa are largely dominated by nights spent in unpaid accommodation for both domestic and foreign tourists. Domestic Tourism Indicators Q2 2015 Q2 2016 Total Domestic Trips 5,8 million 5,4 million Total Direct Domestic Spend R 4,5 billion R 6,4 billion Average Spend per Domestic Trip R770 R 1,180 Average Nights per Domestic Trip 3.7 nights 3.6 nights Total Quarter Domestic Bednights 21,1 million 19,8 million
Provincial Tourism Performance Province Arrivals Spend (billions) Western Cape Tourism Performance PROVINCIAL TOURISM PERFORMANCE, APR-JUN 2016 Length of stay Bed nights Paid Bed nights Accommodation spend (billions) % Visited other provinces Gauteng 894,287 R8.1 8.4 7,843,308 1,778,000 R0.7 25.1% Western Cape 394,357 R3.5 11.7 3,458,690 2,033,000 R0.7 37.5% Eastern Cape 63,353 R0.5 9.9 555,639 281,000 R0.2 61.7% Kwa Zulu Natal 146,954 R1.2 8.5 1,288,853 308,000 R0.2 28.4% Mpumalanga 202,588 R1.1 5.7 1,776,789 576,000 R0.2 43.4% Limpopo 162,796 R1.6 4.3 1,427,798 455,000 R0.1 8.3% North West 113,888 R0.4 5.4 998,847 117,000 R0.1 44.9% Northern Cape 16,022 R0.1 7.7 140,521 67,000 R0.0 24.1% Free State 253,838 R0.3 8.0 2,226,278 120,000 R0.0 4.9% The Western Cape accounted for 13.6% of all South African tourist arrivals and received 20.8% of South Africa s tourist s spend. In addition, the Western Cape held 17.8% of South Africa s bed nights recorded during the period. The Western Cape held the following share of South African tourists during Q2 2016: Western Cape s share of Africa land tourists visiting South Africa 3.0% Western Cape s share of Africa air tourists visiting South Africa 23.6% Western Cape s share of Americas tourists visiting South Africa 55.7% Western Cape s share of Asia & Australasia tourists visiting South Africa 44.7% Western Cape s share of European tourists visiting South Africa 59.0% 3 Western Cape Performance Indicators Q2 2015 Q2 2016 y-o-y % Change Total number of tourist arrivals 375,845 394,357 4.9% Total foreign direct spend (excl capital expenditure) from tourists R3.2 billion R3.5 billion 9.5% Total number of bed nights spent by tourists 3,587,741 3,458,690-3.6% A total of 394,357 tourists were recorded during Q2 2016. Tourist arrivals to the province grew by 4.9% year-on-year, coupled with strong growth rates across all global regions to the province. Europe sustained a strong presence as the Western Cape s strongest international market, with tourist arrivals increasing by 18.1% to reach 142,585. Germany The Africa-air region recorded the most robust growth rate for the quarter. While the market is still France at a small base, tourist arrivals from the Africa-air Netherlands region is portraying a growing interest in the China incl Hong Western Cape. Following the Africa-air region, double digit growth rates were achieved in tourist Australia arrivals from the Americas (27.5%) and Asia & India Australasia (26.6%). The positive growth during this Zimbabwe quarter is extremely significant and portrays a positive shift from the historical drop during the winter period. TOP 10 SOURCE MARKETS INTO THE WESTERN CAPE, Q2 2016 USA UK Namibia 15,810 15,177 14,692 11,055 10,436 9,852 28,624 26,193 48,064 43,299
The ranking of the top 10 attractions enjoyed in the Western Cape revealed the strong popularity of Cape Town s Big7 iconic attractions. Top attractions enjoyed during Q2 2016 included Cape Point, Cape Town Central City, Kirstenbosch National Botanical Gardens, Robben Island Museum, the Table Mountain Aerial Cableway and the V&A Waterfront. These are the iconic destinations that form the core of the true Cape Town experience, and the ranking of the top attractions indicated below reflects a solid demand for these attractions. Additional Western Cape regions which appeared in the top 10 ranking included the Cape Winelands and the Cape Garden Route & Klein Karoo. Adventure (76.5%) ranked as the most popular activity enjoyed by tourists during the quarter, closely followed by natural attractions (74.8%), theme parks (73.7%) and the beaches (70.1%). TOP 10 ATTRACTIONS ENJOYED IN THE WESTERN CAPE, Q2 2016 TOP ACTIVITIES ENJOYED IN THE WESTERN CAPE, Q2 2016 Cape Town Central City V&A Waterfront Cape Point Table Mountain Cableway The Winelands Camps Bay Kirstenbosch Botanical Gardens The Garden Route Clifton Beach Robben Island 79.4% 78.5% 62.8% 58.9% 48.6% 36.2% 31.0% 27.1% 24.0% 23.2% Adventure Visiting natural attractions Theme parks Beach Cultural, historical & heritage Widlife Health Nightlife Eating out Sporting-spectator Entertainment Education training study Business Shopping Social 42.1% 30.1% 26.9% 26.8% 25.1% 24.8% 24.7% 16.2% 12.4% 76.5% 74.8% 73.7% 70.1% 63.0% 62.0% 4 In Q2 2016, the Western Cape recorded the 2 nd highest number of bed nights, generating 3.5 million for the quarter. Amongst the provinces, slightly over 70% of formal bed nights were spent in the Western Cape and Gauteng provinces. During Q2 2016, the Western Cape held the highest number in formal bed nights* and grew by 6.9% year on year. Visiting friends and family ranked as the top accommodation usage amongst tourists during Q2 2016, followed by hotels and self-catering establishments. FORMAL BED NIGHTS BY PROVINCE, Q2 2016 Province Formal bed nights y-o-y % change Gauteng 1,750,000-17.6% Western Cape 2,008,000 6.9% Eastern Cape 272,000-2.9% KwaZulu-Natal 296,000-46.3% Limpopo 267,000-37.2% Mpumalanga 422,000-8.3% North West 110,000-24.1% ACCOMMODATION USAGE IN THE WESTERN CAPE, Q2 2016 Game lodge, 199,000 Guesthouse, 271,000 Backpackers, 433,000 Bed and breakfast, 161,000 Camping, 45,000 Visiting friends & family, 1,296,000 Northern Cape 59,000 34.1% Free State 107,000 1.9% Self-catering, 559,000 *Formal bed nights: hotels, guesthouses, bed and breakfasts, self-catering, game lodges and backpackers. Hotels, 1,036,000
Appendix: Tourist Arrivals into the Western Cape TOURIST ARRIVALS TO THE WESTERN CAPE BY COUNTRY OF ORIGIN, Q2 2015/2016 Country of origin Q2 2015 Q2 2016 15/16 % Change AFRICA LAND 43,325 50,532 16.6% Botswana 1,592 - - Lesotho 6,522 5,904-9.5% Malawi 1,585 - - Mozambique - 3,926 - Namibia 22,637 28,624 26.4% Swaziland 1,267 - - Zambia 1,131 954-15.6% Zimbabwe 7,629 9,852 29.1% AFRICA AIR 16,601 21,303 28.3% Angola 2,084 2,473 18.7% Democratic Republic of Congo 871 1,194 37.0% Ethiopia 129 465 260.1% Ghana 430 674 56.7% Kenya 1,155 1,200 3.9% Nigeria 1,454 1,935 33.0% Tanzania 978 966-1.2% Uganda 356 405 13.8% AMERICAS 49,758 63,431 27.5% Argentina 333 1,034 210.3% Brazil 3,193 3,506 9.8% Canada 5,756 8,371 45.4% USA 38,618 48,064 24.5% ASIA & AUSTRALASIA 40,571 51,374 26.6% Australia 11,071 11,055-0.1% China including Hong Kong 8,581 14,692 71.2% India 8,527 10,436 22.4% Japan 2,728 3,349 22.8% New Zealand 2,382 2,423 1.7% South Korea 1,515 1,569 3.6% EUROPE 120,728 142,585 18.1% Austria 1,522 1,836 20.6% Belgium 4,716 4,239-10.1% Denmark 1,728 1,930 11.7% France 13,762 15,810 14.9% Germany 21,764 26,193 20.4% Italy 4,781 6,188 29.4% Netherlands 11,319 15,177 34.1% Russia 786 684-12.9% Spain 2,731 2,803 2.6% Sweden 2,478 3,333 34.5% Switzerland 4,859 5,413 11.4% UK 36,779 43,299 17.7% ALL FOREIGN TOURISTS 375,845 394,357 4.9% 5