Marketing South Africa in Angola & DRC 02 September 2012 Wavela Mthobeli

Marketing South Africa in Angola & DRC

02 September 2012

Wavela Mthobeli

Slide no. 2 © South African Tourism 2012

South African Tourism is the official tourism marketing organisation of South Africa. We market across the world focusing on three groups of travellers – international leisure travellers, the domestic and regional traveller, and business tourists who travel to South Africa for conferences and incentives.

SA Tourism is the tourism marketing organisation of South Africa

Understand the market

Choose the attractive segments

Market the destination

Angola has been identified as a core market and DRC as an investment market in the SA Tourism portfolio of markets and a route to market strategy was developed in 2011 to define SA Tourism’s entry strategy into the market and define marketing strategies to grow tourism from this market. This booklet has been developed to help market South Africa in Angola. Detailed information on our marketing plans in each market is available from our Regional Director: Africa & Middle East (see address on the back cover).

As the information in this booklet was sourced in the development of the marketing strategy, it does not include the latest data available on the Angolan market. Current information on the Angolan market is available on our website www.southafrica.net/research.

A key part of our business is to:

May 2012 3 | Copyright © 2012 SA Tourism

Focus Markets Within Africa

Below is the outcome of the fourth portfolio review process that took place during July/August 2009 and which covers the the country SAT will focus its marketing from 2011/12 to 2013/14

Africa Americas Asia & Australasia Europe

Core Markets

Angola

Botswana

Kenya

Nigeria

South Africa1

USA1Australia1

India

France1

Germany

Netherlands

UK1

Investment Markets

DRC

Mozambique

Brazil

Canada

China (incl. Hong Kong)

Japan

Belgium

Italy

Sweden

Tactical Markets

Lesotho

SwazilandNew Zealand Ireland

Watch-list Markets

Malawi

Namibia

Zambia

Zimbabwe

Argentina Republic of Korea

Austria

Denmark

Portugal

Spain

Switzerland

Strategic Importance

Bahrain, Oman, Qatar, Saudi Arabia

Strategic Air Links/Hubs

Egypt, Ethiopia, Ghana, Mauritius, Senegal,

Tanzania, UAE

Malaysia

Singapore

Co

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try

Ma

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Re

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irect

or

Sta

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Ma

na

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Glo

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Responsibility2011 –

2013/4

Note: 1indicates business tourism hubs


Market Phase and Key Characteristics

ConsumerConsumer

ProductProduct

MarketingMarketing

Overall StrategyOverall

Strategy

CompetitorCompetitor

ChannelChannel

Uninformed, price insensitive, multi-purpose

Very individualised Status oriented Few One-stop-shops Unsophisticated, isolated,

experience based Combine with trade

initiatives

Develop positioning

Seek information & opportunity; discover leisure

Emergence of packages (seeking scale effects)

Emerging specialisation/focus

Integrate products; information/choice provider

“Shout”: get as many as you can

Facilitate scale effects (e.g., packages)

Very informed, price sensitive, focus on leisure

Specialised packages

High competition Clear focus Specialisation; information

provider Adapt trade and market to

select segments Understand segments and

select

MarketSymptoms

MarketSymptoms

TourismAuthorityActions

TourismAuthorityActions

Tourism Industry Life Cycle

Note: 1The duration of the four phases of the life cycle may vary significantly; their graphical representation with equal distances may thus be misleading. Source: Framework based on Michael Porter: Competitive Strategy, 1980, Chapter 8 (Industry Evolution)

Tourism in African markets is still in a nascent stage.

Time1

KenyaNigeria

USA

Germany, Netherlands, France, UK, Japan

Italy

SADC, DRC

IndiaSouth AfricaBrazil

This phase may be very long

China, Australia

Botswana

Introduction Growth Maturity

Percentage of population

travelling for leisure

Angola

Mozambique


Agenda

Angola within SA Tourism’s portfolio

Angolan Market Context

Angolan Tourism Market

Angolan Travellers

Messages, Channels and Products for the Angolan Market


Economic GrowthEconomic Growth Angola in the African ContextAngola in the African Context

Macro-Economic Outlook

Economic Growth (1)

The Economist and the IMF ranked Angola as the fastest growing economy from 2001 to 2010, with an annual average GDP growth rate of 11.1%

However, analysts predict that Angola will not be among the top 10 countries in the world between 2011 and 2015


However, analysts predict that Angola will not be among the top 10 countries in the world between 2011 and 2015

GDP at Constant Prices and GDP Growth in Angola, 2005–2015E, in Kwanza Bn

CountryGDP

(USD Bn)

GDP per Capita (USD)

GDP Growth Rate (%)

Nigeria 206.7 1,324 7.4%

Angola 85.8 4,812 5.9%

Kenya 32.4 888 4.1%

DRC 12.6 189 5.4%

Mozambique 10.2 473 6.4%

Country Comparison, by GDP, GDP per Capita1 and GDP Growth Rate1, 2010


343329

312294

277258

244242

214

178

150

0

50

100

150

200

250

300

350

400

450

5.8%

17.3%

15E14E13E12E11E10E09E08070605

Note: 1At constant prices Source: Monitor and Grail Primary Research and Analysis; “Angola’s Uncertain Future”, The Economist, Nov 2007; “2009 Investment Climate Statement-Angola”, US Department of State; CIA World Factbook; “Africa’s Impressive Growth”, The Economist, Jan 2011; “Oil, Glorious Oil”, The Economist, Jan 2010


Geographic Economy

CABINDA

~60% of the oil resources in Angola are situated in the Cabinda province

CABINDA

~60% of the oil resources in Angola are situated in the Cabinda province

LUANDA Luanda is the most active

region in terms of the economy– Most of the country’s

wealth is concentrated here

– It is the most populous region in the country, accounting for one third of the country’s population

LUANDA Luanda is the most active

region in terms of the economy– Most of the country’s

wealth is concentrated here

– It is the most populous region in the country, accounting for one third of the country’s population

UPCOMING CITIES Although Luanda remains

the centre of activity in Angola, there are people who have decided to move/return to other cities– Benguela– Lobito– Lubango– Huambo

These cities are perceived to offer better lifestyles and/or business opportunities

UPCOMING CITIES Although Luanda remains

the centre of activity in Angola, there are people who have decided to move/return to other cities– Benguela– Lobito– Lubango– Huambo

These cities are perceived to offer better lifestyles and/or business opportunities

Luanda is the most important city economically, and is likely to remain so for the foreseeable futureLuanda is the most important city economically, and is likely to remain so for the foreseeable future

Luanda is the most important province in the country, accounting for ~90% of Angola’s economic activity. It is also the most populated province in the country.

Source: Monitor and Grail Primary Research and Analysis; “Charming Chaos”, The Washington Post


…Leading to Increased Consumerism…Leading to Increased ConsumerismGrowth in the Middle Classes…Growth in the Middle Classes…

Angola’s Growing Middle Classes

SEC Distribution in Luanda (2008–2010) CAGR

’08–’10CAGR’08–’10

This group is focused on status and are thus big spenders

– Prefer international, luxury brands (e.g.: Prada shoes, Louis Vuitton bags, HermN es scarves)

– Drive large luxury SUVs (e.g.: Toyota Prado / VX, Range Rovers)

This group is focused on status and are thus big spenders

– Prefer international, luxury brands (e.g.: Prada shoes, Louis Vuitton bags, HermN es scarves)

– Drive large luxury SUVs (e.g.: Toyota Prado / VX, Range Rovers)

-3%

+23%

+30%

A:

B:

C:

The Angolan demographic landscape is changing, with a wealthy upper middle class emerging. It grew from 9.4% to 15.8%. This group is focused on status and are thus big spenders.

53.7%

35.3%

5.3%1.5%1.6%

0%

20%

40%

60%

80%

100%

2010

42.1%

15.8%

2008

31.8%

9.4%

3.5%

Very Low

Class (E)

Low Class (D)

Middle Class (C)

Upper Middle

Class (B)

Upper Class (A)

• A chauffeur guides

• Drivw shining SUV

• Mostly in smartly suits

• Gated condominium, ferrying a smartly-dressed executive”

– Louise Redvers, Inter Press Service

• A chauffeur guides

• Drivw shining SUV

• Mostly in smartly suits

• Gated condominium, ferrying a smartly-dressed executive”

– Louise Redvers, Inter Press Service

Note: Assume SEC class is linked to income groups: A = >10,000 USD per month, B = 5,000–10,000 USD per month, C = 2,000–5,000 USD per monthSource: Monitor and Grail Primary Research and Analysis; Market Studies; “Rich and Poor — One Country but Worlds Apart”, IPS, Sept 2009; “Rebuilding a Nation”, Mail & Guardian Online, Sept 2008; “It’s Party Time for Luanda’s Elite as Angola Grows Rich on Oil and Gems”, The Observer, Aug 2008; “Media and Market Overview — Angola”, Executive Centre, 2011


Agenda




Angolan Travellers



Angolans visiting South AfricaAngolans visiting South Africa

Angolans Visiting South Africa

Overview (1/2)

Angolans Visiting South Africa by Gender Angolans Visiting South Africa by Gender

Angolans Visiting South Africa by Age

In 2011, the number of Angolans visiting South Africa increased to 39k

The major groups travelling to South Africa were single Angolans with no children and married Angolans with children

– In 2009, 32% of travellers were single and 54% were married with children

– However, despite the high number of travellers who are married with children, most Angolans travel to South Africa alone

Angolans across income segments were aware of South Africa, and were willing to visit South Africa

– However, their purpose of visit varied from business-related to multipurpose to leisure

In 2011, 39K Angolans visited South Africa. The Angolan travellers to South Africa are generally 30–39 years old, and are either single with no children or married with children

43% 44% 52% 47%

0%

20%

40%

60%

80%

100%

Female

Male

2009

53%

2008

48%

2007

56%

2006

57%

30% 29% 29% 28%

0%

20%

40%

60%

80%

100%

2009

1%

30%

37%

4%

2008

2%

29%

37%

3%

2007

2%

29%

35%

5%

2006

2%

31%

33%

4%

18-2020–2930–3940–54Over 55

Source: Monitor and Grail Primary Research and Analysis; SAT Departure’s Survey


Volume and Growth of Tourist Arrivals to South Africa (000’s)Volume and Growth of Tourist Arrivals to South Africa (000’s)

Market Attractiveness – Key Indicators

Volume and Spend of Tourist Arrivals to South Africa

Source: Grail Research & Monitor Analysis; SAT Arrivals Survey, 2009–2011

(‘0

00s)

KenyaDRCAngola

23%

Nigeria

9%3%

201120102009

Angola recorded a 3% growth in arrivals and a 2% increase in average spend in South Africa between 2009 and 2011

Average Spend in South Africa per Tourist (ZAR)Average Spend in South Africa per Tourist (ZAR)

(Z

AR

)

KenyaDRCAngola

-4%

2%

Nigeria

10%

-15%

201120102009

3%


Target ConsumersTarget Consumers Messages, Channels and Products

Messages, Channels and Products

Entry Strategy

Overview

Definition of consumer groups based on meaningful variables which differentiate consumer needs and travel behaviour along the buying process

Identification of high growth potential consumer groups based on potential attractiveness to SAT and its ability to win through actionability

Detailed characterisation of consumer groups

A structured process was followed to define and prioritise consumer groups and develop SAT’s communication strategy and its timeframe

Definition of key elements of the message to be used in each market

Identification of the best channels to reach the consumer groups per market

Definition of the key components of the basic package to offer in each market and additional specific components meaningful to the markets

Source: Grail Research & Monitor Analysis


Angolan Travellers

Consumer Groups

The buying process was then mapped for different consumer groups created according to different variables. Lifestyle was proven to be the most significant indicator of travel behaviour

Lifestyle Lifestyle

When analysing the data, it became clear that income was not always a good indicator of lifestyle and travel behaviours, instead, a lifestyle indicator was assigned

– Older respondents earning in a high income bracket could not always afford to lead lifestyles correlated to their income due to large numbers of dependents or other financial burdens

– Younger respondents from wealthy families may not be earning in the high-income bracket, but benefit from familial wealth which allows them to live a “Luxury Seekers” lifestyle

– In one case, spending clearly indicated that a respondent had not been truthful about his income

When analysing the data, it became clear that income was not always a good indicator of lifestyle and travel behaviours, instead, a lifestyle indicator was assigned

– Older respondents earning in a high income bracket could not always afford to lead lifestyles correlated to their income due to large numbers of dependents or other financial burdens

– Younger respondents from wealthy families may not be earning in the high-income bracket, but benefit from familial wealth which allows them to live a “Luxury Seekers” lifestyle

– In one case, spending clearly indicated that a respondent had not been truthful about his income

Note: Lifestyle income p.a for each consumer group: Budget Travellers: USD20k-USD50k; Rising Nouveau Riches: USD50k-USD100k; Luxury Seekers:100k+Source: Monitor and Grail Primary Research and Analysis; SAT Departure’s Survey

Budget TravellersBudget Travellers Rising Nouveau RichesRising Nouveau Riches Luxury SeekersLuxury Seekers

Usually leverage a business trip and stay a little bit longer for leisure or buy for trade

Mainly travel alone Rely on friends or colleagues to gather

information about what to do and where to stay

Look to take advantage of “paying less for the same” by eating out at inexpensive restaurants, relaxing in public parks, shopping at discount stores

Use travel agents to book hotel and flights

Travel usually driven by a personal need (Medical, Event, Study, VFR)

Travel alone, but when possible bring family along (one child at a time)

Rely on friends but also use internet to gather information about where to go

Look to take advantage of “getting much more for the same price” by eating at luxury restaurants, shopping at high-end stores and partying in chic nightclubs

Use travel agents to book hotel and flights

Besides traveling for business, frequently travel for pure leisure

Travel alone, but when possible enjoy the company of friends and family

Rely on friends but also use internet to gather information about where to go

Look for experiences that cannot be obtained in Angola, such as new and different cultures, museums, sights, natural beauty

Use internet to book hotel and flights more often

3 CONSUMER GROUPS EMERGED


Budget TravellersBudget Travellers

Ernesto is married with 8 children and lives in a home in Viana Although Ernesto earns good money (~USD 70,000 per annum) as a

colonel in the Angolan Naval Force, he finds it hard to keep up with the cost of living in Luanda

– He is always saving to pay for his children’s education and to buy them clothing, and is looking to move up from his beat-up Corolla

Ernesto travels internationally quite regularly for business and always tries to add on a few days for leisure

He also saves to be able to go on one international trip once every 1–2 years, where he buys items such as furniture or appliances. He rarely spends superfluously on these trips, choosing budget accommodation and skipping the high-end living / dining experience

For these trips, Ernesto will decide where to go based on what he needs to buy and where he thinks he can find those things for the lowest price

He regrets not being able to take his wife and children with him when travelling, because he thinks it is important to learn about new places and to experience new things

Ernesto generally books his tickets through a travel agency but is sure to shop around for the best price

Ernesto is married with 8 children and lives in a home in Viana Although Ernesto earns good money (~USD 70,000 per annum) as a

colonel in the Angolan Naval Force, he finds it hard to keep up with the cost of living in Luanda

– He is always saving to pay for his children’s education and to buy them clothing, and is looking to move up from his beat-up Corolla

Ernesto travels internationally quite regularly for business and always tries to add on a few days for leisure

He also saves to be able to go on one international trip once every 1–2 years, where he buys items such as furniture or appliances. He rarely spends superfluously on these trips, choosing budget accommodation and skipping the high-end living / dining experience

For these trips, Ernesto will decide where to go based on what he needs to buy and where he thinks he can find those things for the lowest price

He regrets not being able to take his wife and children with him when travelling, because he thinks it is important to learn about new places and to experience new things

Ernesto generally books his tickets through a travel agency but is sure to shop around for the best price

Budget Travellers Consumer Group

Consumer Portrait

Despite not generally choosing their destination, these travellers are focused on getting as much out of international trips as they can, especially shopping for everyday items that are expensive in Angola

Meet Ernesto, a 49 year old Angolan

I usually go through a travel agency because TAAG is a lot

of confusion

I usually go through a travel agency because TAAG is a lot

of confusion

Budget TravellersBudget Travellers

Branca is a single mother of 1 and lives in a informal house in Prenda Branca earns ~USD 25,000 per annum working as a computer operator,

but also has an entrepreneurial venture of her own trading clothes She is not a flashy person and works hard to afford the basics She travels extensively for business but has not really been exposed to

travel outside of the places to which her company chooses to send her. When she travels, she is usually on a shoe-string budget and stays at hostels / backpackers

Branca always takes the opportunity to buy a few things when she goes travelling so that she can come home and sell them for additional income

Branca relies on information from people who have travelled to a country before her

– She is interested in whether or not there is crime and whether there are good places to shop

Branca always books directly with a travel agent and is very price-sensitive when it comes to booking any international travel

Branca enjoyed the time she spent in the shopping malls in South Africa the most, and usually spends on only one good dinner when she travels

Branca is a single mother of 1 and lives in a informal house in Prenda Branca earns ~USD 25,000 per annum working as a computer operator,

but also has an entrepreneurial venture of her own trading clothes She is not a flashy person and works hard to afford the basics She travels extensively for business but has not really been exposed to

travel outside of the places to which her company chooses to send her. When she travels, she is usually on a shoe-string budget and stays at hostels / backpackers

Branca always takes the opportunity to buy a few things when she goes travelling so that she can come home and sell them for additional income

Branca relies on information from people who have travelled to a country before her

– She is interested in whether or not there is crime and whether there are good places to shop

Branca always books directly with a travel agent and is very price-sensitive when it comes to booking any international travel

Branca enjoyed the time she spent in the shopping malls in South Africa the most, and usually spends on only one good dinner when she travels

Meet Branca, a 26 year old Angolan

I do business; take advantage of buying a few things to sell

I do business; take advantage of buying a few things to sell

Source: Monitor and Grail Primary Research and Analysis


Rising Nouveau Riches Consumer Group

Consumer Portrait

This group of consumers is extremely aspirational and visits places like South Africa in order to experience world class luxuries at prices that they can afford

Rising Nouveau RichesRising Nouveau Riches

Isis is single and has no children She makes a good salary working in Total’s HR department, and recently

bought herself a sedan She understands the value of money and will never shop for clothes in

Luanda as she believes that it is way too expensive. She would much rather save up for an international trip to do her shopping, and while there stay at a 3 star B&B and spend some time immersing herself in the local culture

Isis is very conscious of living a healthy lifestyle. She goes to gym regularly and is focused on eating well

On weekends, she spends a lot of time out with friends partying and eating out at the local favourites, but she cannot afford to frequent Luanda’s most exclusive venues; she does like to treat herself to a luxury night out once a month though

Isis says that she needs to travel at least every three months because Luanda is so chaotic. She generally likes to spend more than 10 days away to really feel relaxed

Isis was not aware that travel agents could offer packages, but she would be interested in buying a package that didn’t mandate too many activities. When she goes to a new place, she likes to have time to explore for herself

Isis is single and has no children She makes a good salary working in Total’s HR department, and recently

bought herself a sedan She understands the value of money and will never shop for clothes in

Luanda as she believes that it is way too expensive. She would much rather save up for an international trip to do her shopping, and while there stay at a 3 star B&B and spend some time immersing herself in the local culture

Isis is very conscious of living a healthy lifestyle. She goes to gym regularly and is focused on eating well

On weekends, she spends a lot of time out with friends partying and eating out at the local favourites, but she cannot afford to frequent Luanda’s most exclusive venues; she does like to treat herself to a luxury night out once a month though

Isis says that she needs to travel at least every three months because Luanda is so chaotic. She generally likes to spend more than 10 days away to really feel relaxed

Isis was not aware that travel agents could offer packages, but she would be interested in buying a package that didn’t mandate too many activities. When she goes to a new place, she likes to have time to explore for herself

Meet Isis, a 26 year old Angolan

8–10 days vacation is not enough time to relax; you can do and see a lot of things, but it is not long enough if you really

want to relax

8–10 days vacation is not enough time to relax; you can do and see a lot of things, but it is not long enough if you really

want to relax

Rising Nouveau RichesRising Nouveau Riches

Marco is single and has no children

He has a job as a retail salesman but makes regular trips to Portugal and Spain to buy shoes and clothes to sell for extra money

He is a very aspirational person and is driven to move up in life. As a result, status is extremely important to him and he likes to show things like his cellphone off and the upgrades he has made to his Toyota Pick-up

Marco is also extremely price-sensitive; he is always on the lookout for deals and tries to travel internationally when he can find the cheapest air tickets. When there he usually stays at 2-3 star hotels or with family

Marco only ever travels to Spain and Portugal because he feels comfortable there and knows all of the best places to shop. He can be very effective in using his trips to purchase high-quality merchandise for his business, but also in terms of maximising his relaxation time

Marco is thinking about visiting a new destination like Dubai or Singapore, because his friends have been talking a lot about them

He hasn’t considered travelling to South Africa because has heard it is difficult to get a visa

Marco is single and has no children

He has a job as a retail salesman but makes regular trips to Portugal and Spain to buy shoes and clothes to sell for extra money

He is a very aspirational person and is driven to move up in life. As a result, status is extremely important to him and he likes to show things like his cellphone off and the upgrades he has made to his Toyota Pick-up

Marco is also extremely price-sensitive; he is always on the lookout for deals and tries to travel internationally when he can find the cheapest air tickets. When there he usually stays at 2-3 star hotels or with family

Marco only ever travels to Spain and Portugal because he feels comfortable there and knows all of the best places to shop. He can be very effective in using his trips to purchase high-quality merchandise for his business, but also in terms of maximising his relaxation time

Marco is thinking about visiting a new destination like Dubai or Singapore, because his friends have been talking a lot about them

He hasn’t considered travelling to South Africa because has heard it is difficult to get a visa

Meet Marco, a 39 year old Angolan

I say trust: I feel at home in relation to language, people and

places, and already know the products I need and trust the

quality

I say trust: I feel at home in relation to language, people and

places, and already know the products I need and trust the

quality



Luxury Seekers Consumer Group

Consumer Portrait

These consumers are aware of the social value that is placed on travel and are interested in being able to interact with their peers when it comes to discussing the most interesting travel destinations

Luxury SeekersLuxury Seekers

Jose is a married entrepreneur with 3 children

As a self-made man, Jose has a very strong work ethic and only sleeps 4–5 hours every night

He gets up early to go to gym as often as he can, and tries to maintain a healthy lifestyle, even with his hectic work schedule

Jose owns a large mansion in Talatonia, where he lives with his family. His 4-car garage houses his 4x4s and family sedans

Jose is not restricted in his travel behaviour by money at all: he recently spent 47 nights at the Sheraton in Dubai with his entire family

Although Jose enjoys travelling internationally and does so often, he still travels domestically more frequently

Jose has taken advantage of fully inclusive packages before, but believes that the prices charged for packages in Angola are inflated

Jose travels to ensure that he is exposed to new cultures and people. He thinks that knowledge is one of the most valuable things in life and wants to be exposed to lots of new and different things

He also thinks that life is short and sees international travel as a way of living life to the fullest

Jose is a married entrepreneur with 3 children

As a self-made man, Jose has a very strong work ethic and only sleeps 4–5 hours every night

He gets up early to go to gym as often as he can, and tries to maintain a healthy lifestyle, even with his hectic work schedule

Jose owns a large mansion in Talatonia, where he lives with his family. His 4-car garage houses his 4x4s and family sedans

Jose is not restricted in his travel behaviour by money at all: he recently spent 47 nights at the Sheraton in Dubai with his entire family

Although Jose enjoys travelling internationally and does so often, he still travels domestically more frequently

Jose has taken advantage of fully inclusive packages before, but believes that the prices charged for packages in Angola are inflated

Jose travels to ensure that he is exposed to new cultures and people. He thinks that knowledge is one of the most valuable things in life and wants to be exposed to lots of new and different things

He also thinks that life is short and sees international travel as a way of living life to the fullest

Meet Jose, a 43 year old Angolan

Travel agents in Angola are not serious — they don’t have enough

information and provide poor service

Travel agents in Angola are not serious — they don’t have enough

information and provide poor service

Luxury SeekersLuxury Seekers

Patrick is single and has no children His work as a consultant does not bring in a lot of money, but he has a very

wealthy European family who has bought him his LandCruiser and who pays for his apartment

Despite his affluent background, Patrick still has aspirations of making it on his own and is very aware of the world around him, from politics to popular culture

Patrick understands that living in Luanda has de-sensitised him to the value of a dollar, as he easily spends over USD 400 on a night out

Patrick is very image conscious and spends time going to gym and taking care of his appearance. He always dresses well but is never flashy

He uses the new iPhone but doesn’t feel like he needs to flash it around as a status symbol

Patrick likes to travel purely for leisure and always prefers to go with friends. He usually stays at 5 star hotels / resorts and lives large on these trips

He likes to read up on a destination through travel blogs and magazines before he goes there, identifying the ‘cool’ places to visit and things to do

Patrick does not ever buy packages, but would be interested in being able to customise one for himself. He doesn’t use travel agents except for business trips as he doesn’t trust them

Patrick is single and has no children His work as a consultant does not bring in a lot of money, but he has a very

wealthy European family who has bought him his LandCruiser and who pays for his apartment

Despite his affluent background, Patrick still has aspirations of making it on his own and is very aware of the world around him, from politics to popular culture

Patrick understands that living in Luanda has de-sensitised him to the value of a dollar, as he easily spends over USD 400 on a night out

Patrick is very image conscious and spends time going to gym and taking care of his appearance. He always dresses well but is never flashy

He uses the new iPhone but doesn’t feel like he needs to flash it around as a status symbol

Patrick likes to travel purely for leisure and always prefers to go with friends. He usually stays at 5 star hotels / resorts and lives large on these trips

He likes to read up on a destination through travel blogs and magazines before he goes there, identifying the ‘cool’ places to visit and things to do

Patrick does not ever buy packages, but would be interested in being able to customise one for himself. He doesn’t use travel agents except for business trips as he doesn’t trust them

Meet Patrick, a 26 year old Angolan

I always Google the top 5 nightclubs before I go

I always Google the top 5 nightclubs before I go



Agenda




Angolan Travellers

Messages and Products for the Angolan Market



Key Messages – Overview

Messaging for each market is made up of a number of key components of differing importance

Note: Colour-coding is intended to help with identification of similarities in messages across different consumer groups, white boxes indicate no similaritySource: Grail Research & Monitor Analysis

Key Components of Message

Cosmopolitan, urban living

Cosmopolitan, urban living

1st-world destination

1st-world destination Value for moneyValue for moneyOnly a couple of

hours awayOnly a couple of

hours awayAngolaAngola

High ImportanceHigh Importance

Affordable cosmopolitan destination with great cities and diverse activities at 1st-world standards only a short flight away from Luanda

Building awareness: TV, internet and social media

Information gathering / driving purchase: travel agents, internet and social media

Airfare, transfers and a 4-star hotel close to shopping and other “luxury 1st-world activities”

Key Message(s)Key Message(s) Key Channel(s)Key Channel(s) Key Product(s)Key Product(s)


BASIC PRODUCT OFFERINGBASIC PRODUCT OFFERING


Drive Purchase – Products: Some Options (1/3)

Angolans do not like the idea of traditional packaged holidays crammed with activities, but would be open to simple packages that bundle flights and accommodation

Note: 1 Based on the range of nights spent by the majority of Angolans when in South Africa; 2 Prices based on normal rate; they may decrease when negotiated Source: Monitor and Grail Primary Research and Analysis

4- or 5-Star Accommodation, preferably linked to a shopping centre (e.g.: Sandton Sun and Towers in Johannesburg, Radisson Blu Cape Town)

Return Airfare

These packages can also be used to drive increased spend by adding a shopping component to the itinerary or ensuring that the accommodation is linked to a shopping centre (e.g. Michelangelo)– Angolans who travel almost always include

some shopping in their trips In addition, it is important for these packages

to include information on the world class activities nearby (e.g.: restaurants, nightclubs and even spa’s)

AirfareAirfare Return airfare in economy class

TransferTransfer Transfers (airport > hotel > airport)

HotelHotel

4- or 5-star hotel in a major city (e.g.: Johannesburg, Cape Town, Durban)– Angolans travelling to South Africa are used to

paying “South African 4-star hotel prices” for much lower quality accommodation in Angola

Length of StayLength of Stay 4 nights or 7 nights1

PricePrice ~ USD1,800 for 4 nights, ~USD 2,500 for 7 nights2

Transfer

AdditionalsAdditionals

Components of a Package


OFF-PEAK PROMOTIONS OFF-PEAK PROMOTIONS

For the low price of...during the months of June and July

EVENT-DRIVEN PACKAGESEVENT-DRIVEN PACKAGES


WEDDING DESTINATIONWEDDING DESTINATION



Additional elements and “reasons to travel” can be added to the basic package to create limited offer promotions, event-driven packages and wedding-destination packages


4- or 5-Star Accommodation(e.g.: Beverly Hills Umhlanga, Michelangelo Johannesburg)

Return Airfare

Memorable Event (e.g.: Durban July,

Cirque du Soleil, U2)

4- or 5-Star Accommodation, preferably linked to a shopping centre (e.g.: Sandton Sun and Towers in Johannesburg, Radisson Blu Cape Town)

Return Airfare

South Africa is a popular wedding destination for couples from developed countries all over the world – Low prices and beautiful scenery

In the longer-term, SAT could promote South Africa as a convenient and memorable wedding destination for Angolan couples– Increase frequency of travel and spend

Offering the same basic package at lower prices during off-peak months

Drive consumers to travel during low seasons to ensure that available airlift is used throughout the year – Increased frequency

Event-driven packages can be used to drive increased frequency

In addition, it can be used to trigger travel in Angolans considering South Africa, but who have not done so yet

International concerts and shows

Transfer

Transfer





In addition, it will be important to ensure that travel agents and online sites encourage consumers to stay longer, return more regularly and bring their friends and family to South Africa through highlighting specials offered by collaborators and / or groundhandlers


DRIVING INCREASED LENGTH OF STAYDRIVING INCREASED LENGTH OF STAY

DRIVING INCREASED FREQUENCYDRIVING INCREASED FREQUENCY

ENCOURAGING TRAVEL WITH FRIENDS AND FAMILYENCOURAGING TRAVEL WITH FRIENDS AND FAMILY

Highlight hotels which offer free / bonus nights Drive customers to visit more than one region in South Africa

– Create deals whereby consumers stay with one hotel group wherever they travel in exchange for bonus nights (e.g.: Shop South Africa’s 3 major cities with Radisson and get 2 free nights)

Highlight hotel frequent guest programmes Link to events throughout the year (e.g.: Visit

South Africa for these 3 events in 2011 and receive 10,000 bonus points on your frequent guest programme)

Highlight hotel offers where kids stay free Link to kid-friendly activities (e.g. uShaka

Marine World, Gold Reef City)

Marketing South Africa in the DRC

May 2012


Context: Africa is Important

Focus Markets Within Africa

Below is the outcome of the fourth portfolio review process that took place during July/August 2009 and which covers the period 2011/12 to 2013/14

Africa Americas Asia & Australasia Europe

Core Markets

Angola

Botswana

Kenya

Nigeria

South Africa1

USA1Australia1

India

France1

Germany

Netherlands

UK1

Investment Markets

DRC

Mozambique

Brazil

Canada

China (incl. Hong Kong)

Japan

Belgium

Italy

Sweden

Tactical Markets

Lesotho

SwazilandNew Zealand Ireland

Watch-list Markets

Malawi

Namibia

Zambia

Zimbabwe

Argentina Republic of Korea

Austria

Denmark

Portugal

Spain

Switzerland

Strategic Importance

Bahrain, Oman, Qatar, Saudi Arabia

Strategic Air Links/Hubs

Egypt, Ethiopia, Ghana, Mauritius, Senegal,

Tanzania, UAE

Malaysia

Singapore

Co

un

try

Ma

na

ge

r

Re

gio

na

l D

irect

or

Sta

keh

old

er

Ma

na

ge

r

Glo

ba

l C

ha

nn

el

Ma

na

ge

r

Responsibility2011 –

2013/4

Note: 1indicates business tourism hubs


Agenda

DRC within SA Tourism’s portfolio

DRC Market Context

DRC Tourism Market

DRC Travellers

Messages, Channels and Products for the DRC Market

25 | Copyright © 2012 South African TourismMay 2012

Extreme PovertyProjected GDP Growth

The DRC has high economic potential but nevertheless the economy remains small and the country is considered the poorest in the world

CountryGDP (USD Bn)

GDP per Capita (USD )

GDP Growth Rate (%)

Nigeria 206.7 1,324 7.4%

Angola 85.8 4,812 5.9%

Kenya 32.4 888 4.1%

DRC 12.6 300 5.4%

Country Comparison, by GDP, GDP per Capita and GDP Growth Rate, 20101

In 2010, the DRC was ranked the lowest GDP per capita in the world

More than three-quarters of the population live on less than 1 USD per day

Extremely high rates of poverty and inequality with a Gini coefficient of 40%

Fewer than 20% have reliable access to water and electricity

A large portion of the country is isolated from the capital in Kinshasa

Note: 1At Constant Prices (2000)Source: Grail Research & Monitor Analysis; IMF; CIA Factbook

Real GDP Growth Rates1

8.1%

6.8%7.0%

5.4%

2.8%

6.2%6.3%

5.6%

7.8%

2013E2012E2011E2010E20092008200720062005

Rea

l GD

P %

Cha

nge

Economic

Current Economic Situation is Small but Promising


Economic

A Few Key Economic Drivers

GDP growth is and will continue to be driven by agriculture and mining sector performance, supported by infrastructure development and increased FDI

GDP GrowthGDP Growth

FDIFDI

AgricultureAgriculture

Infrastructure DevelopmentInfrastructure Development

Outlook

Drivers

The mining sector is expected to recover strongly in 2010-11, with copper exports expected to increase by 25%

Several new mining facilities are scheduled to start production in 2010-11, which should boost output levels

“BMI believes that the Congolese mining sector can reach an average annual growth rate of between 4.7% across our forecast period”1

Note: 1Business Monitor InternationalSource: Africa News; New Markets Research; Infrastructure Consortium of Africa; Office of the US Trade Rep; African Trade Policy Notes – Worldbank

MiningMining Wholesale / RetailWholesale / Retail

Support

The agricultural sector is expected to increase as producers and traders start to benefit from improvements in national infrastructure

The government has undertaken various reforms in the law on the Agricultural Code to attract private investment

The South African retail group Shoprite plans to start trading in the DRC by the end of 2010 or early 2011 after investing up to ZAR400 MM

The Chief Executive of Shoprite, Basson, was quoted as saying the group would start trading by the end of next year, and that the first two stores would be located in Kinshasa and Lubumbashi


Increasingly Negative Current Account BalanceIncreasingly Negative Current Account BalanceIncreasingly Negative Current Account BalanceIncreasingly Negative Current Account Balance Productivity Increasing SlowlyProductivity Increasing SlowlyProductivity Increasing SlowlyProductivity Increasing Slowly

High Government Debt in Slow DeclineHigh Government Debt in Slow DeclineHigh Government Debt in Slow DeclineHigh Government Debt in Slow DeclineDramatic Decrease in InflationDramatic Decrease in Inflation

Considering a few key indicators, the DRC made some significant economic improvements since 2000, but the fundamentals still require vast improvement

Source: IMF

% o

f GD

P

18%

550%

20082000

-532%

Consumer Price Inflation

-15.9%

-4.0%

20092000

-11.8%

Current Account Balance as Percent of GDP

136%

217%

20082002

-81%

Government Debt as Percent of GDP

GDP per Person Employed, Constant 1990 PPP$

554640

20082000

+15.5%

% o

f GD

PU

SD

Economic

Financial Indicators Show Relative Improvement%

cha

nge


Major Ethnic Groups in the DRC

Population

Diverse Ethnic Groups

There are four main ethnic groups in the DRC; the majority of the population practicse Christianity

Source: CIA Country Profile; Gateway Africa; Library of Congress

Lu

ba

Mo

ng

o DRC has four major ethnic groups: Luba,

Mongo, Kongo and Mangbetu-Azande (Hamitic). In addition, DRC has over 200 African ethnic groups of which the majority are Bantu

Religious affiliations are: Roman Catholic 50%, Protestant 20%, Kimbanguist 10%, Muslim 10%, other (includes syncretic sects and indigenous beliefs) 10%

The Luba– Known to be a very creative group of people but historically known to be ambitious and inclined to nepotism with better literacy rates

The Mongo- Live in the African equatorial forest, south of the main Congo River bend and north of the Kasai and Sankuru Rivers

Ethnic Group Spread in the DRC

Ko

ng

o The Kongo – Live along the Atlantic coast

of Africa from Pointe-Noire) to Luanda, Angola. Like the Luba they are historically known to be ambitious and inclined to nepotism

Ha

mit

ic The Hamitic - Found in the east and north

east of the country that originally come from Darfur in southern Sudan and Ethiopia


Population

Influx of Expats

There are several expat and immigrant groups present, which could represent potential tactical groups

Source: UN MONUSCO; IOM – International Organisation of Migration; Vodacom; National Agency for Investment Promotion; Mining Weekly

UN and Diplomatic ExpatsUN and Diplomatic Expats International ImmigrantsInternational Immigrants Global MNC expatsGlobal MNC expats

Potential tactical target groups Potential tactical target groups

African RefugeesAfrican Refugees

The UN has been more active in the DRC due to high levels of social unrest and violence (Estimated number of expats ~ 20,000)

Spillover benefits of marketing in DRC, more tourists from Asia– Approximately 10 000

military expats are from India, Pakistan and Bangladesh

– India and SA already have a favourable economic, political and cultural relationship

DRC could potentially be used to gain access into other markets– North African immigrants

estimated ~ 92,000 but are unskilled

– There is a substantial Belgian population due to DRC’s colonial past

– Russian immigrants are present in the DRC estimated ~ 36,004

– Indian immigrants are mostly employed in telecoms and auto repairs estimated ~ 23,274

DRC have few MNC’s concentrated in 3 sectors (Mining, ICT and Financial services)

MNC expat community is estimated to be quite small in DRC – Due largely to social unrest

i.e. BHP Billiton runs its DRC operations in Johannesburg

– Vodacom only employs 600 people with less than 10% being expat

Refugees are not attractive as a target segment– Refugees live below the

poverty line– Refugee numbers in DRC

have declined by 10% p.a. between 2000 and 2008 to 155,162

– 72% of all refugees are from Angola


Population

Large Division of Rich and Poor

The richest 20% of the population account for 51% of the total income earned in the DRC

Source: WorldBank; Grail Research & Monitor Analysis

Household Income Breakdown by Population, 2006

Per

cent

of T

otal

Cou

ntry

Inco

me

/ Con

sum

ptio

n

Lowest 20%

5%

Fourth 20%

9%

Third 20%

14%

Second 20%

21%

Highest 20%

51%

“Our country is extremely rich [in terms of natural resources]; however,

there are only two classes [the rich and the poor]”

– Claude Nyamugabo, Minister of SME

“Our country is extremely rich [in terms of natural resources]; however,

there are only two classes [the rich and the poor]”

– Claude Nyamugabo, Minister of SME

“My wish, it is the emergence of a Congolese middle class”

– Gaspard-Hubert Lonsi Koko, President of the Union of Congo

“My wish, it is the emergence of a Congolese middle class”

– Gaspard-Hubert Lonsi Koko, President of the Union of Congo

Highest 10% makes up 35% of

the total income of the DRC


Population

Small Concentration of Wealth

Commercial activity is concentrated in the regions surrounding; Kinshasa and Lubumbashi

Source: NL EVD Int; Invest in DRC; OECD; Action Against hunger; High Beam Research; US Institute of Peace; Commercial Bank of Congo

Key Commercial Clusters

KinshasaKinshasa

LubumbashiLubumbashi

Kinshasa is the capital, and most populated city (~10M inhabitants) in DRC

Kinshasa has a young population, with more than half the people under 22 years of age, and a small proportion over 50

It is the centre of economic activity and many companies are headquartered here

Kinshasa has the best physical infrastructure i.e. rail, ports and roads

The built-up area of Kinshasa is divided into industrial, residential, and commercial zones

Lubumbashi is the second largest city of the DRC (population of 1.5M in 2010)

Copper and cobalt mining continues to be Lubumbashi's principal economic activity

Lubumbashi is an important tourist destination in the DRC

There are many European foreign nationals living there, particularly at the managerial, professional, and commercial level

There is a growing demand for housing, office, shopping and other community related facilities in the city


Congolese Consumers

Who are the Congolese and What Do They Do? (1/2)

Note: 1Society of Ambiance Makers and Elegant PeopleSource: Monitor Grail Primary and Secondary Research and Analysis

Congolese are proud, life-loving, and status conscious people that have learnt to face life’s issues, while enjoying the simple pleasures available

…while looking to enjoy la ‘belle vie’1, which includes night life, music, dancing

and good food

“Congolese’s slogan is ‘Inzo ya ngolo, Mvuatu ya ngolo, Nketo ya ngolo’ (Beautiful house, beautiful clothes, beautiful woman)”

– Congolese Journalist at Congo Vision

“Kinshasa has several bars and clubs and so only few African cities are as lively”

– Congolese Consumer

The Congolese are generally proud and status conscious...

“Appearance is crucial for Congolese. They prefer to wear expensive branded clothes rather than eat. It is the SAPE1 phenomena”


“Travelling is a luxury so when I travel, I always share my experience and show the pictures taken to my friends just to show off”


…they are ingenious and enduring, always seeking business opportunities

to improve their day-to-day life...

“Salaries are insufficient to meet family’s expenses in DRC. To make ends meet, people are forced to have one or more side businesses”


“I always say that Congolese are the most resourceful people in the world”

– Congolese Journalist at RFI


Congolese Consumers

Who are the Congolese and What Do They Do? (2/2)

...they tend to prefer travelling abroad rather than in DRC

“DRC is undeveloped and it is difficult to travel within the country due to lack of road and infrastructure. ”


“I prefer travelling to developed countries where I can experience luxury and look for business opportunities”


A nation that likes its music and language...

“Congolese enjoy their music a lot and rarely play foreign music. Someone who would work towards promoting Congolese music would be seen as a hero in the Congo”

– Canadian Centre of Intercultural Learning

“Congolese speak French only when it is not possible to communicate in local languages”


...Congolese are family oriented and this impacts their travelling decisions

“Congolese are taught to contribute to the family’s well being by respecting their elders and providing for family”

– Australian Department of Immigration

“I prefer travelling to visit my family than going to a country where I do not have relatives”


They are proud of their music, local languages and family, although they prefer international over domestic travel

Source: Grail Research & Monitor Analysis; Canadian Centre of Intercultural Learning; Australian Department of Immigration


Agenda


DRC Market Context

DRC Tourism Market

DRC Travellers



Congolese Visiting South AfricaCongolese Visiting South Africa

Consumers

Overview (1/2)

Congolese Visiting South Africa by Gender Congolese Visiting South Africa by Gender

Congolese Visiting South Africa by Age In 2010, the number of Congolese visiting South Africa

increased to 33,101 from 16,079 in 2005

In terms of demographics, in 2009, 27% of travellers were single and 46% were married with children

On average, 86% of Congolese travel alone, 9% with one other person

Congolese across income segments were aware of South Africa, and were willing to visit South Africa

However, their purpose of visit varied from VFR (37%) to business (34%) to pure holiday (11%)

In 2011, more than 33k Congolese visited South Africa; the Congolese travellers to South Africa are generally males between the ages of 30 and 54, and are either single or married with children

27% 34% 27%

2008

73%

2007

66%

2006

73%

14% 19% 11% 1%2%4%

13%6%

2006

40%

34%

8%

2008

34%

41%

2007

37%

37%

18-20

21-29

30-39

40-54

55+

Source: Grail Research & Monitor Analysis; SAT Departure’s Survey

Female

Male


Volume and Growth of Tourist Arrivals to South Africa (000’s)Volume and Growth of Tourist Arrivals to South Africa (000’s)

Market Attractiveness – Key Indicators

Volume and Spend of Tourist Arrivals to South Africa

Source: Grail Research & Monitor Analysis; SAT Arrivals Survey, 2009–2011

(‘0

00s)

KenyaDRCAngola

23%

Nigeria

9%3%

201120102009

Angola recorded a 3% growth in arrivals and a 2% increase in average spend in South Africa between 2009 and 2011

Average Spend in South Africa per Tourist (ZAR)Average Spend in South Africa per Tourist (ZAR)

(Z

AR

)

KenyaDRCAngola

-4%

2%

Nigeria

10%

-15%

201120102009

3%


Where to Play: Consumers

Target Customers

In the DRC three consumer groups were identified; the level of education and stated income emerged as the most significant influences on travel behaviour

Social Status

Respondents with a lower income and lower levels of education often perceived travel to be an opportunity to augment their supplemental income through entrepreneurial (commercial) activities

Respondents who were educated abroad, and returned to DRC to find positions as executives in MNCs, had different travel preferences and behaviours than the other two consumer groups

Finally, respondents who were born into wealthier families and earn high incomes are used to the concept of international travel for pure leisure

Stated Income

Education

Entrepreneurs

Mainly travel for business shopping Mainly travel alone Rely on friends or colleagues to

gather information Looking for value for money

experiences, and to save as much money as possible in order to purchase more

Purchase tickets mainly at airline counters, sometimes asking friends and family for help

Go Getters

Travel usually driven by a personal need (Medical, Event, Study, VFR)

Travel alone, but when possible will bring a friend

Rely on friends but also use the internet to gather information about where to go

Looking for world class experiences, mainly in shopping and nightlife, with some cultural activities

Use airline counters to purchase tickets

Well-To-Do Travellers

Frequently travel for pure leisure Typically travel with family Rely on friends but also use the

internet to gather information about where to go

Look for luxury world class experiences in restaurants, spas and shopping with some cultural activities

Use airline counters and, to a lesser extent, travel agents to book travel and accommodation



EntrepreneursEntrepreneursEntrepreneursEntrepreneurs

Antoinette is married with no children She works for a local bank, in the accounting department Antoinette rarely goes on the internet, but enjoys discovering the

new functions on her mobile phone Antoinette enjoys going to Dubai, especially for the shopping, but

also appreciates the infrastructure and modernity She likes buying nice clothes for herself, and luxury goods to resell

in Kinshasa Activities such as safari, wildlife and nature are not the key travel

motivators for her Her trips are generally 3 times / year, for about 5 days each time The fact that the visa process to Dubai is very simple and fast also

encourages her to choose this destination over others

Antoinette is married with no children She works for a local bank, in the accounting department Antoinette rarely goes on the internet, but enjoys discovering the

new functions on her mobile phone Antoinette enjoys going to Dubai, especially for the shopping, but

also appreciates the infrastructure and modernity She likes buying nice clothes for herself, and luxury goods to resell

in Kinshasa Activities such as safari, wildlife and nature are not the key travel

motivators for her Her trips are generally 3 times / year, for about 5 days each time The fact that the visa process to Dubai is very simple and fast also

encourages her to choose this destination over others

Alain is married with 3 children He works as a mid-level employee for a local mining company He travels a lot for business, and has started a side business with

his wife to supplement their income Alain may access the internet from time to time, but he prefers

talking to people when gathering information For their honeymoon, he and his wife took a 4 week trip to China

and Dubai, in part for shopping opportunities He has been to both Dubai and China several times, and has built

up his network of contacts there which help him to find the best deals

His trips to China usually last 7-10 days, to Dubai slightly shorter Although he has already travelled to SA, Alain will visit again if he

gets a good deal on the flight ticket and hotel

Alain is married with 3 children He works as a mid-level employee for a local mining company He travels a lot for business, and has started a side business with

his wife to supplement their income Alain may access the internet from time to time, but he prefers

talking to people when gathering information For their honeymoon, he and his wife took a 4 week trip to China

and Dubai, in part for shopping opportunities He has been to both Dubai and China several times, and has built

up his network of contacts there which help him to find the best deals

His trips to China usually last 7-10 days, to Dubai slightly shorter Although he has already travelled to SA, Alain will visit again if he

gets a good deal on the flight ticket and hotel

Entrepreneurs Consumer Group

Consumer Portrait

These travellers are focused on getting as much out of international trips as they can, especially shopping for everyday items that are expensive in the DRC

Meet Antoinette, a 25 year old Congolese ConsumerMeet Alain, a 40 year old Congolese Consumer


“My wife and I started a side business together, so when we travel we

are looking for opportunities”

“My wife and I started a side business together, so when we travel we

are looking for opportunities”

“You can buy luxury goods in Dubai for 1/3 of the price…plus the visa process is very

easy”

“You can buy luxury goods in Dubai for 1/3 of the price…plus the visa process is very

easy”


Go Getters Consumer Group

Consumer Portrait

This group of consumers is extremely aspirational and visits places like South Africa in order to experience world class luxuries at prices that they can afford

Go GettersGo Getters

Victorine is single and has no children She works for an international bank in the accounting dept Victorine likes her job, and has plans to move into management in

the next 3 years Victorine surfs the internet from work, and has a facebook account

but is not yet very active She still lives at home with her parents, but has plans to move into

an apartment with friends of hers this year For vacation, Victorine loves to go to island destinations; she has

been to Ile Maurice and Madagascar and would love to see the Caribbean

Her trips are typically once a year, for about 7-14 days She compares South Africa to the US and the EU, and prefers to

travel to there as it is closer to DRC

Victorine is single and has no children She works for an international bank in the accounting dept Victorine likes her job, and has plans to move into management in

the next 3 years Victorine surfs the internet from work, and has a facebook account

but is not yet very active She still lives at home with her parents, but has plans to move into

an apartment with friends of hers this year For vacation, Victorine loves to go to island destinations; she has

been to Ile Maurice and Madagascar and would love to see the Caribbean

Her trips are typically once a year, for about 7-14 days She compares South Africa to the US and the EU, and prefers to

travel to there as it is closer to DRC

Meet Victorine, a 28 year old Congolese Consumer

Go GettersGo Getters

Tino is married, but has no children He works for Tigo telecom as a sales manager He lives with his wife in a two bedroom apartment on the outskirts of

Kinshasa Tino accesses the internet through his mobile phone, and also when

he is at work; he has a facebook account Tino usually takes one vacation per year with his wife; they try to

see new places and visit friends and family to reduce costs Their trips are typically 10-14 days, depending on the distance and

the cost Tino has aspirations to see new places; he has been to London

once and would love to see the rest of Europe He views South Africa as a country with high quality of life,

developed infrastructure, and quality shopping

Tino is married, but has no children He works for Tigo telecom as a sales manager He lives with his wife in a two bedroom apartment on the outskirts of

Kinshasa Tino accesses the internet through his mobile phone, and also when

he is at work; he has a facebook account Tino usually takes one vacation per year with his wife; they try to

see new places and visit friends and family to reduce costs Their trips are typically 10-14 days, depending on the distance and

the cost Tino has aspirations to see new places; he has been to London

once and would love to see the rest of Europe He views South Africa as a country with high quality of life,

developed infrastructure, and quality shopping

Meet Tino, a 32 year old Congolese Consumer

“I like to check out fun, modern places…my wife enjoys checking

out the shops too”

“I like to check out fun, modern places…my wife enjoys checking

out the shops too”


“Vacation is a way for me to relax…I love

going to islands and going to the beach”

“Vacation is a way for me to relax…I love

going to islands and going to the beach”


Well-To-Do TravellersWell-To-Do TravellersWell-To-Do TravellersWell-To-Do Travellers

Jean Marc is married with 3 children He is a senior executive at DHL consulting to other companies He considers himself very “virtually connected” with accounts on

facebook, linked in, and hi5 Jean Marc takes at least one or two vacations a year with his family,

almost always to a long haul international destination These trips last on average 3 weeks, but could last as long as 4-6

weeks Jean Marc seeks new and interesting destinations, but also enjoys

returning to the same location if he had a very pleasant experience Prestige / high status is a key driver of his destination choices For him visa, money and language are not issues for travelling as

long as he can have ‘la belle vie’ (beautiful life)

Jean Marc is married with 3 children He is a senior executive at DHL consulting to other companies He considers himself very “virtually connected” with accounts on

facebook, linked in, and hi5 Jean Marc takes at least one or two vacations a year with his family,

almost always to a long haul international destination These trips last on average 3 weeks, but could last as long as 4-6

weeks Jean Marc seeks new and interesting destinations, but also enjoys

returning to the same location if he had a very pleasant experience Prestige / high status is a key driver of his destination choices For him visa, money and language are not issues for travelling as

long as he can have ‘la belle vie’ (beautiful life)

Virginie is married with 5 children She works as an HR manager, as well as helps her husband with a

car rental business on the side She is tech savvy due to her business ventures, but rarely has time

to surf the web or engage in social networking Virginie’s family is very important to her, having family vacation

time is very neccessary As a family, they tend to take one long vacation which lasts about 4

weeks For family trips, she lets the kids decide on the location, as long as

their grades in school have been satisfactory Virginie also takes separate shorter vacations with her husband,

typically to beach destinations, at least once a year Virginie and her family have never encountered visa issues

Virginie is married with 5 children She works as an HR manager, as well as helps her husband with a

car rental business on the side She is tech savvy due to her business ventures, but rarely has time

to surf the web or engage in social networking Virginie’s family is very important to her, having family vacation

time is very neccessary As a family, they tend to take one long vacation which lasts about 4

weeks For family trips, she lets the kids decide on the location, as long as

their grades in school have been satisfactory Virginie also takes separate shorter vacations with her husband,

typically to beach destinations, at least once a year Virginie and her family have never encountered visa issues

“I decide where to go based on what interests me…Europe and the US

are always good choices”

“I decide where to go based on what interests me…Europe and the US

are always good choices”

“I let the kids decide where we all go on vacation…this year they wanted to go to

Atlanta”

“I let the kids decide where we all go on vacation…this year they wanted to go to

Atlanta”

Luxury Seekers Consumer Group

Consumer Portrait

The Well-To-Do Travellers view vacations as relaxing leisure time, and can be very flexible on their destination choices; the vacations are longer than the other consumer groups and typically they travel with their families

Meet Virginie, a 43 year old Congolese ConsumerMeet Jean Marc, a 37 year old Congolese Consumer



Agenda


DRC Market Context

DRC Tourism Market

DRC Travellers




Key Messages – Overview

Messaging for each market is made up of a number of key components of differing importance

Note: Colour-coding is intended to help with identification of similarities in messages across different consumer groups, white boxes indicate no similaritySource: Grail Research & Monitor Analysis

Key Components of Message

Accessibility and affordability

Accessibility and affordability

Modern infrastructure

Modern infrastructure

Variety of business and leisure opportunities

Variety of business and leisure opportunities

DRCDRC

High ImportanceHigh Importance

Affordable and accessible destination, which offers modern infrastructure and multiple opportunities in terms of business and leisure

Building awareness: TV, internet and social media

Information gathering: travel agents and other partners

Driving purchase: travel agents, airlines and social media

Airfare, transfers and 3- or 4-star hotel (for Go Getters) and 2- or 3-star hotel (for Entrepreneurs) in a major city, hotel with free shuttles to city center

Key Message(s)Key Message(s) Key Channel(s)Key Channel(s) Key Product(s)Key Product(s)


Objective: Drive Increased Arrivals through Basic Product Offerings

How to Win: Consumer and Product Communication

Basic Product Offering Options

The offering would differ slightly by priority consumer group with a combination of various elements as opposed to a package


EntrepreneursGo Getters

Airfare Return airfare in economy class Airfare Return airfare in economy class

Transfer Transfers (airport > hotel > airport) Transfer Transfers (airport > hotel > airport)

Hotel

3 or 4 star accommodation in a major South African city e.g. Cape Town, Durban or Johannesburg

Close proximity to nightlife and shopping

Hotel with free shuttles to city centre

Hotel

B&B or 2 star accommodation in a major South African city e.g. Cape Town, Durban or Johannesburg

Close proximity to shopping

Hotel with free shuttles to city centre

Length of Stay 7 to 12 nights Length of Stay 7 to 12 nights

Service Visa processing assistance Service Visa processing assistance


Objective: Drive Increased Spend through Promotions and Add-On’s


EntrepreneursGo Getters

How to Win: Consumer and Product Communication

Promotions and Potential add-on Offers

Promotions and other offerings would further help to drive arrivals and increase spend

Others

Promotions Promotions

Night out on the town in a limo Special access to private clubs Discounted concert and sporting

event tickets Increased luggage allowance

Shopping advice, coupons Discounted freight offers Business interpreter services Increased luggage allowance

Off-peak flight reductions Discount on second flight for

significant other/friend Flight/accommodation discounts

on stays longer than 10 days

Off-peak flight reductions Discount on second flight for

business partner Flight/accommodation

discounts on stays longer than 10 days

Others


For more information contact our Johannesburg office:South African Tourism

Bojanala House90 Protea RoadChislehurstonSandton, 2196

Private Bag X10012Sandton 2146

Call centre: +27 83 123 6789 Email address: [email protected]

Website: www.southafrica.net

Documents

Marketing South Africa in Angola & DRC 02 September 2012 Wavela Mthobeli