2013/14 LEVY COLLECTOR REPORT - TOMSA

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2013/14 LEVY COLLECTOR REPORT - TOMSA
LEVY COLLECTOR REPORT
            2013/14
2013/14 LEVY COLLECTOR REPORT - TOMSA
KEY TRAVEL & TOURISM CONTACTS

KEY TOURISM CONTACTS
Tourism Levy South Africa (TOMSA)                                   012 654 2660    tomsa@tbcsa.travel                   www.tomsa.co.za
Tourism Safety Initiative (TSI)                                     012 654 2660    info@tourismsafety.co.za             www.tourismsafety.co.za
Tourism Business Index                                              012 654 2660    pr@tbcsa.travel                      www.tbcsa.travel
Hotel Investment Conference Africa                                  012 654 2660    hica@tbcsa.travel                    www.hica.co.za

STATE AGENCIES AND PARASTATALS
South African Tourism                                               011 895 3000    travel@southafrica.net               www.southafrica.net
Tourism Grading Council of South Africa (TGCSA)                     011 895 3000    feedback@tourismgrading.co.za        www.tourismgrading.co.za
Cultural, Arts, Sports and Tourism Training Authority (CATHSSETA)   011 217 0600    info@cathsseta.org.za                www.theta.org.za
Airports Company South Africa                                       011 723 1400    customercare@airports.co.za          www.acsa.co.za
Brand South Africa                                                  011 483 0122    info@brandsouthafrica.com            www.brandsouthafrica.com
Statistics South Africa                                             012 310 8911    info@statssa.gov.za                  www.stassa.gov.za

NATIONAL GOVERNMENT DEPARTMENTS
Department of Tourism                                               012 444 6000    callcentre@tourism.gov.za            www.tourism.gov.za
Department of Transport                                             012 309 3657    KhozaC@dot.gov.za                    www.transport.gov.za
Department 0f Home Affairs                                          0800 60 11 90   csc@dha.gov.za                       www.dha.gov.za
Department of Public Enterprises                                    012 431 1000    info@dpe.gov.za                      www.dpe.gov.za
Department of Economic Development                                  012 394 1006    odgcorrrespondence@economic.gov.za   www.economic.gov.za
Department of Environmental Affairs                                 012 310 3911    callcentre@environment.gov.za        www.environment.gov.za
Department of Health                                                0123958000      dg@health.gov.za                     www.doh.gov.za
Department of International Realtions & Cooperation                 012 351 1000    consular@dirco.co.za                 www.dfa.gov.za
Department of Trade & Industry                                      0861 843 384    contactus@thedti.gov.za              www.thedti.gov.za
South African Police Service                                        10111                                                www.saps.gov.za

PROVINCIAL TOURISM AUTHORITIES
Cape Routes Unlimited                                               021 405 4500    021 426 5640                         www.tourismcapetown.co.za
Eastern Cape Tourism Authority                                      043 742 4450    043 701 9600                         www.ectourism.co.za
Free State Tourism Authority                                        051 411 4300    051 444 0297                         www.freestatetourism.org
Gauteng Tourism Authority                                           011 639 1600    0867867170                           www.visitgauteng.net
Limpopo Tourism Authority                                           011 085 2500    015 293 3655                         www.golimpopo.com
KwaZulu Natal Tourism Authority                                     031 366 7500    031 305 6693                         www.zulu.org.za
Mpumalanga Tourism and Parks                                        013 759 5300    013 752 4186                         www.mpumalanga.com
North West Parks and Tourism Board                                  018 397 1500    018 397 1660                         www.tourismnorthwest.co.za
Northern Cape Tourism                                               053 832 2657    053 831 2937                         www.northencape.org.za

SOUTH AFRICAN TRADE & INVESTMENT AGENCIES
Gauteng Economic Development Agency                                 011 833 8750    011 833 8930                         www.geda.co.za
Eastern Cape Development Corporation                                043 704 5600    043 704 5700                         www.ecdc.co.za
Trade and Investment KwaZulu Natal                                  031 368 9600    031 368 5888                         www.tikzn.co.za
Free State Development Corporation                                  051 400 0800    051 447 0929                         www.fdc.co.za
Mpumalanga Economic Growth Agency                                   013 656 3231    013 6563241                          www.mega.gov.za
Invest North-West                                                   014 594 2570    014 590 2575                         www.inw.org.za
Northern Cape Economic Development Agency                           053 833 1503    053 833 1390                         www.nceda.co.za
Western Cape Investment Trade Promotion Agency                      021 487 8600    021 487 8700                         www.wesgro.org.za
Trade and Investment Limpopo                                        015 295 5171    015 295 5197                         www.til.co.za
2013/14 LEVY COLLECTOR REPORT - TOMSA
TABLE OF CONTENTS
TOMSA CORPORATE PROFILE                                 2

MESSAGE FROM TOMSA BOARD CHAIRMAN                       3

TOMSA BOARD MEMBERS                                     4

REPORT BY TBCSA CEO                                     5

TOMSA SALES & MARKETING REPORT                          6

REFLECTIONS OF LEVY COLLECTIONS                         8

MESSAGE FROM SA TOURISM CEO TO LEVY COLLECTORS         11

SA TOURISM EXECUTIVE REPORT                            12

LEVY COLLECTORS IN GOOD STANDING AT 31 DECEMBER 2013   27

                                                   1
2013/14 LEVY COLLECTOR REPORT - TOMSA
TOMSA CORPORATE PROFILE

TOMSA stands for Tourism Levy South Africa. It is a levy collected by businesses operating within the travel and tourism industry, whose
aim is to contribute to the promotion of South Africa as the preferred tourist destination, locally and internationally. The tourism levy is
administered by the TBCSA.

The concept of a tourism levy is not unique to South Africa, however what makes TOMSA special is that is based on voluntary
contributions from tourism businesses that recognise the value of working as a collective to promote our destination.

HOW DOES BUSINESS BENEFIT FROM SUPPORTING TOMSA?

Mutually beneficial relationship

TOMSA facilitates a mutually beneficial relationship between business operating in the local travel and tourism industry and the
country's national destination marketing organisation, South African Tourism.

For business, it is important that its views, hands-on knowledge and insights are taken into account when embarking on marketing
campaigns to promote the destination. In turn, tourism operators also acknowledge that implementing marketing campaigns of this
nature can be a costly affair; hence the industry's commitment to raise funds in support of the country's destination marketing efforts.

Essentially, TOMSA is about developing a joint approach between business, government and the wider public to collectively promote the
destination for the overall benefit of the industry and the broader economy.

Growth in numbers

Since its inception TOMSA has grown from collecting R26 million in 2000 to collecting in excess of R100 million fourteen years later. Over
the same period, the promotion of destination South Africa has increased dramatically and South Africa is now actively promoted in
twelve core markets around the world, namely – the USA, UK, Germany, France, Italy, Netherlands, Kenya, Nigeria, China, Japan, India
and Australia.

South African Tourism has also recognised the value that can be found in the African markets and is increasingly expanding its
promotional activities to reach new audiences within the Continent and within the BRICs countries. With additional funding from
TOMSA, the marketing reach continues to expand thus opening doors to new markets and new business opportunities for industry.

HOW MUCH IS THE LEVY?

In broad terms levy collection constitutes paying over 1% of each confirmed booking towards the TOMSA fund. The levies are paid by the
tourist and the business merely acts as a collector of the levies to be paid over to the TBCSA. In its capacity as administrator, the TBCSA
ensures that levies collected are transferred to South African Tourism.

The relationship with South African Tourism is regulated through two key mechanisms.

 Firstly, through a Memorandum of Understanding (MOU) between the TBCSA and SA Tourism. The MOU includes amongst others,
  the responsibilities of both parties and the benefits to accrue to levy collectors; and the schedule to allow private sector inputs into
  South African Tourism's annual business plans.
 Secondly, through quarterly bilateral meetings held between the two organisations to discuss the challenges and opportunities in the
  sector and discussing South African Tourism's marketing and promotional activities.

Currently, levy collection is largely concentrated at the car rental, tour operator and accommodation sectors, however, there are future
plans to expand this initiative to other sectors.

                                                                    2
2013/14 LEVY COLLECTOR REPORT - TOMSA
MESSAGE FROM TOMSA BOARD CHAIRMAN

TOMSA's 14th year anniversary celebration has to be one of the key highlights of 2013.
Many of us gathered at the TOMSA exhibition stand in the ICC, during the annual Tourism
Indaba, to mark this important occasion. It is the significance of this event that still lingers on
as I reflect on the highlights of year under review.

One might be tempted to pose the question – what significance? What has TOMSA achieved
in the past fourteen years that is worth celebrating in the first place? My response to this is
PLENTY!

For starters TOMSA's significance lies in the fact that South Africa is one of the few (if not the
only) tourism destinations in the world to have a voluntary tourism levy collection system.
Meaning as the travel and tourism private sector, we have the direct access, 'share of voice'
and financial muscle to support our country's destination marketing efforts through our
relationship with SA Tourism.

Secondly, TOMSA provides a valuable platform to engage and collaborate on destination
marketing issues. This year's collaboration with the SA Tourism, the Tourism Grading Council
and the Tourism Enterprise Partnership on the Power of One road shows was not only a
promotions exercise for TOMSA. It served as a key vehicle through which we could align
TOMSA with other industry programmes and industry solicit views about levy collection and                     Mr Franco Jordaan
the work done to market destination South Africa.                                                           TOMSA Board Chairman

Thirdly and perhaps more importantly, despite the uncertain economic environment within which we operate, the private sector's
TOMSA contribution to SA Tourism continues to grow. Fourteen years later, R923 458 151.00 in levy collections is a far cry from the
R26 315 789.00 we collected in the year 2000.

As we look ahead to our 15th anniversary, it is important to emphasise that growth in levy collections is not good enough. It is critical that
we also grow our levy collector base, which means expanding into other industry sectors which previously did not collect the levy – the
demand from business in these sectors is growing by the day. In addition, this needs closer collaboration with sector associations
affiliated to the TBCSA and all other relevant trade formations.

The responsibility to grow the collector base also lies with us as individual Board members and industry role-players. It must become a
standard industry practice to support tourism levy collecting organisations within our own procurement processes. Peer pressure is a
method we should also be adopting to encourage compliance. In the past year, we have maintained a close relationship with SA Tourism
and continued to hold robust discussions with them to ensure that levy collectors derive value for their efforts. The newly-established
TBCSA/SA Tourism Marketing Advisory Board is well-positioned to take these discussions forward.

In closing, I want to express my deepest gratitude to all our levy collectors for their unrelenting support. I also want to thank members of
the TOMSA and TBCSA Boards for their co-operation and backing during the year under review. Last but not least, I thank TBCSA CEO,
Ms. Mmatšatši Ramawela and her lean team for their hard-work and dedication to TOMSA.

It is in all our interest to make sure that TOMSA grows further in the next fourteen years!

Franco Jordaan
TOMSA Board Chairman

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2013/14 LEVY COLLECTOR REPORT - TOMSA
TOMSA BOARD MEMBERS

        Franco Jordaan                           Mavuso Msimang                                     Mmatšatši Ramawela
  Board Chairman & MD Court                    TBCSA Board Chairman                                    CEO, TBCSA
        Classique Hotels

         Lance Smith                                Nic Griffin                                         Nils Heckscher
     Sales Executive, AVIS                CEO, The Thornybush Collection                       Preceding Board Chairman & CEO
                                                                                                        Not Just Hotels

         Kobus Tait                                  Alistair Dooley                                 Themba Mthombeni
     MD, Forever Resorts            Divisional Director Financials, City Lodge Hotels                 CEO, Duma Travel

                                      Paddy Brealey                                         Gail Westphal
                              CEO, Legacy Hotels and Resorts                            GM, Goodersons Leisure

                                                          4
2013/14 LEVY COLLECTOR REPORT - TOMSA
REPORT BY TBCSA CEO

We will remember 2013 as the year in which the global travel and
tourism industry reached a new milestone of having 1 billion tourists.
For South Africa and Africa, we will remember the year because we
con nued to be the only region that recorded growth in tourist arrivals
of 5,6% which is above the global average of 4%.

Although the task of growing and the TOMSA levy collector base and
increasing the levy collec on is a challenging one, we con nue to work
hard to achieve these objec ves. During the year under review, we
achieved the following targets:

LEVY COLLECTOR STATUS
We recruited a total of 58 levy collectors during the year under review,
which helped to maintain the number of levy collectors to 506 – which
was the number at the beginning of the financial year. The numbers are
definitely reducing as more and more product and service providers
ques on the relevance of the levy system and its value proposi on.
                                                                                              Ms. Mmatšatši Ramawela CEO, TBCSA

LEVY COLLECTION STATUS
We collected approximately R 115 894 847 as compared to                        Having par cipated in the road shows for a year, we realised that while
R 102 831 670 in 2012.                                                         it is helping us to profile TOMSA and the TBCSA, it was not helping us
                                                                               to grow our levy collector base. We then discussed the possibility of
TRANSFERS TO SA TOURISM                                                        bringing back the annual TOMSA Levy Collector feedback session
To date, we have transferred approximately R 106 596 786 to SA                 through digital pla orms.
Tourism. This is more compared to 2012.
                                                                               We were unable to get SA Tourism's commitment for 2013 and are
RELATIONSHIP WITH SA TOURISM                                                   now planning to conduct these sessions early in 2014. We owe it to levy
Our rela onship with SA Tourism con nues to show major                         collectors in the major centres such as the greater Cape Town,
improvements, largely because of the a tude and approach of the                Johannesburg and Durban areas, which is where many of the levy
new management. We con nue to hold quarterly bilateral mee ngs on              collectors are situated. The Power of One road shows don't include
TOMSA and broad industry issues, and have now added the Marke ng               these major centres but instead focus on the smaller towns and ci es.
Advisory Forum to ensure that SA Tourism receives insight and advice
from the industry on their work.                                               ADMINISTRATION OF THE LEVIES
                                                                               The administra on of the TOMSA levies con nues to improve with
The CEO of SA Tourism meets with the TBCSA CEO on a quarterly                  more work put in “cleaning” our accoun ng, marke ng and sales
basis to deal with opera onal issues between the two organiza ons –            databases, levy collector contracts and implemen ng stringent debt
be it the implementa on of our three-year Memorandum Of                        collec ng systems and procedures.
Understanding and other ma ers. Although we had difficul es with
certain mee ng dates, on the overall, we were able to meet with the            Through these improved efforts, we have been able to ensure
SAT CEO on many occasions. We have already scheduled our mee ngs               consistent levy collec on payments by many levy collectors
for 2014.                                                                      who were defaul ng. We were able to achieve all this because
                                                                               we have a dedicated finance staff member focussing on these
TOMSA ROAD SHOWS                                                               aspects of TOMSA. i.e the bookkeeper we employed in May
At the end of 2012, the Board approved our par cipa on in SA                   2013.
Tourism's Power of One road shows, which according to SA Tourism,
was taking the place of the annual TOMSA road shows. We fully                  Overall we are gearing ourselves to try various tac cs to grow
embraced the concept hoping that it will help us to achieve two                the levy collector base and the levy collec ons. The challenge
objec ves, of broadening the awareness about TOMSA while                       remains the one of convincing businesses about the value and
providing a pla orm to recruit new levy collectors and profiling the            benefits of suppor ng TOMSA. We look forward to a
TBCSA.                                                                         produc ve year in 2014, with the support and guidance of the
                                                                               Board and the levy collectors.

                                                                           5
2013/14 LEVY COLLECTOR REPORT - TOMSA
TOMSA SALES & MARKETING REPORT

Despite a small levy collector base, we are pleased to report that tourism levy
income continued to rise in the period under review. This is good news for the
industry, as it means the tourism trade continued to make a meaningful
contribution to the promotion of destination South Africa locally and
internationally. In 2013, we focussed our attention on increasing awareness about
TOMSA within the trade and lifting the profile of the levy collection initiative
across all corners of the country. Our aim was to ensure that the message about
TOMSA and levy collection is not only concentrated in the major cities but also
filters through to all role-players in the industry, large and small.

Our marketing and promotions activities for TOMSA in the year under review are
outlined as follows:

EXPANSION INTO OTHER INDUSTRY SECTORS
The growth of our levy collector base is a priority for us and in the year under
review, we continued to engage other sectors within travel and tourism who
are not traditionally associated with the concept of levy collection to reconsider
their support for TOMSA.

For sometime, individual travel agencies have been approaching us, seeking to
contribute to the collection of the tourism levy. As such, we engaged TBCSA
member association ASATA (Association for South African Travel Agents) to
recommend a system which will be suitable for operators in this sector, but will
also ensure that it does not compromise the process of levy collection in the rest
of the tourism chain and lead to a situation of 'double-dipping'. A possible                         Ms. Boitumelo Moleleki
solution is to have the levy charged as a percentage of the agent's service fee,
something that individual agencies affiliated to TOMSA are already doing. ASATA
is still exploring various options which can be applied to the sector as a whole and we look forward to concluding our discussions with the
association in the new year.

Business Events is another sector where we have started to engage. We have noted how business events are emerging as a significant
player within the travel and tourism space and we believe that the sector can make a significant contribution to TOMSA. Details on how
the sector can contribute and benefit from TOMSA are still under discussion with TBCSA member association SAACI (The Southern
African Association for the Conference Industry). We hope to conclude these discussions in the new financial period.

TOMSA ASSOCIATION INITIATIVE
The aim of this initiative, is to partner with sector and local tourism associations within the industry, to increase the tourism levy
collector base. The initiative was introduced two years ago and in the period under review we formalised our partnership with the
Federated Hospitality Association of South Africa (FEDHASA) Inland and Cape regions and Tshwane Tourism Association. We have
already hosted a number of training sessions with the association's staff members and are optimistic that this approach will make a
difference in expanding our collector base further in the coming year.

TOURISM INDABA 2013
In 2013, TOMSA marked its 14th year anniversary and to celebrate, we opted to incorporate this into our TOMSA promotional
campaign at Indaba. The occasion was marked through a cocktail event at the TBCSA/TOMSA exhibition stand and the stand design
included a special design to highlight the anniversary. As part of the festivities, we also launched a TOMSA promotional video, where
key industry leaders including the CEO of SA Tourism share their views about the TOMSA levy and its value to the industry.

The promotional video is available on the TOMSA website and can be downloaded on the online video platform YouTube.

                                                                    6
2013/14 LEVY COLLECTOR REPORT - TOMSA
TOMSA SALES & MARKETING REPORT

A limited number of DVDs distributed to levy collectors who are keen to use it as part of their own promotional campaigns. Furthermore,
the video now forms part of our TOMSA promotional campaigns and presentations. Our Indaba collateral included updated versions of
our TOMSA brochures and we are in the final stages of finalising our TOMSA 'How To' booklet and the TOMSA animated Tutorial which
will be available in 2014. Indaba also serves as an important platform for us to host face to face meetings with current and prospective
levy collectors. We took advantage of this platform to also engage local tourism association, urging them to encourage their members to
spread the message about TOMSA and promote levy collection.

                                                                      POWER OF ONE PROVINCIAL ROAD SHOWS
                                                                      Instead of hosting our annual collector feedback sessions in the
                                                                      major centres, this year we adopted a different approach by
                                                                      partnering with SA Tourism and the Grading Council to host
                                                                      provincial Power of One Road Shows. The Tourism Enterprise
                                                                      Partnership (TEP) and the National Department of Tourism also
                                                                      formed part of the road shows which largely focussed on
                                                                      reaching the tourism trade located in the smaller towns.

                                                                      This year we visited 15 small towns across the nine provinces and
                                                                      were successful in promoting TOMSA to small establishments
                                                                      who did not know or did not have a clear understanding of the
                                                                      levy collection process.

                                                                  We received good feedback from the attendees on the insightful
                 TOMSA 14th year anniversary                      presentations and opportunities accessible to tourism and
                                                                  hospitality products across all sectors. The road show was
regarded as the best model for the alignment of the industry by having five industry stakeholders presenting different offerings to
the trade through one platform.

INDUSTRY ASSOCIATION EVENTS
TOMSA formed part of the South African Youth Travel Confederation (SAYTC) conference and SATSA Gauteng and Western Cape
Chapter AGM programmes. Presentations were made at the three events and focused on in the importance of collecting the tourism
levy and encouraged tourism products to continue to collect the levy.

STAKEHOLDER ENGAGEMENTS
Tourism Empowerment Council of South Africa (TECSA) and the National Department of Tourism (NDT) invited South African
National Accreditation System (SANAS), Department of Trade and Industry (the dti) and the Independent Regular Board of Auditors
(IRBA) to meet with TOMSA. The aim of the meeting was to clarify, educate stakeholders on the Tourism levy collection system in
relation to B-BBEE points on the Tourism Scorecard. New updates on the required documents for BEE verifications were discussed
in detail. The engagement resulted in improved communications with BEE verification agencies on the awarding of BEE points for
TOMSA levy collectors.

IMPLEMENTATION OF TOMSA BENEFITS
SA Tourism and TBCSA signed a three-year Memorandum of Understanding that includes tourism levy collector benefits. During the
period under review, tourism levy collectors accessed benefits including discounts for exhibiting at trade shows, discounted tourism
grading fees including BEE points. Through quarterly and bi-monthly meetings with SA Tourism, we are able to track progress in this
regard.

CONCLUSION
TOMSA levies have made a significant contribution to South African Tourism marketing efforts. The industry collected over
26 million in the first year and 14 years later over R100 million has been collected. This is an indication that if the entire industry was
collecting, this number would be ten times higher. For our industry to receive an influx of tourists, we all need to play our part and
add value to tourism by collecting the tourism levy.

                                                                    7
2013/14 LEVY COLLECTOR REPORT - TOMSA
REFLECTION OF LEVY COLLECTIONS

TOTAL TOMSA COLLECTIONS FROM 2006 TO 2013

                                 Year                              Collected

                                 2006                             61,988,524.00
                                 2007                             73,725,095.00
                                 2008                             86,299,441.00
                                 2009                             80,744,659.00
                                 2010                             97,829,460.00
                                 2011                             96,183,488.00
                                 2012                            102,831,670.52
                                 2013                            115,894,847.55

                140,000,000.00

                120,000,000.00

                100,000,000.00

                 80,000,000.00

                 60,000,000.00

                 40,000,000.00

                 20,000,000.00

                            -
                                 2006   2007   2008       2009    2010     2011   2012   2013

                                                      8
REFLECTION OF LEVY COLLECTIONS                      (CONTINUE)

TOMSA MONTHLY COLLECTIONS 2012 vs 2013

                                                2012              2013                  TOTAL Y.T.D.
                        Jan                 9,324,246         10,897,988
                        Feb                 9,314,301          9,107,750         2012
                        Mar                 8,079,249          9,247,012                102,831,671

                        Apr                 9,083,393         10,087,909
                                                                                 2013
                        May                 6,505,123          9,214,128
                                                                                        115,894,847
                        Jun                 9,180,878          8,957,753
                        Jul                 8,315,847          9,252,494
                        Aug                 8,221,954          8,719,492
                        Sep                 7,915,872          9,707,953
                        Oct                 9,065,646         10,428,703
                        Nov                 9,501,753          8,550,210
                        Dec                 8,323,409         11,723,455

    14,000,000

    12,000,000

    10,000,000

     8,000,000

     6,000,000

     4,000,000

     2,000,000

                   Jan        Feb   Mar   Apr    May    Jun       Jul      Aug    Sep      Oct        Nov   Dec

                 2012
                 2013

                                                          9
REFLECTION OF LEVY COLLECTIONS                                    (CONTINUED)

LEVY COLLECTIONS PER SECTOR

                      2013                                                    2012                                               2011

  Hotels               88,545,834.52    76.402%           Hotels                75,485,491.10   73.407%      Hotels              68,455,110.69   71.171%
  Car Hire             21,528,378.60    18.576%           Car Hire              22,900,689.37   22.270%      Car Hire            23,576,345.61   24.512%
  Resorts               1,661,651.62     1.434%           Resorts                1,452,978.83    1.413%      Resorts              1,636,066.03    1.701%
  Game Lodges           2,905,392.54     2.507%           Game Lodges            1,793,757.59    1.744%      Game Lodges          1,327,400.55    1.380%
  Tour operators          710,019.98     0.613%           Tour operators           692,976.74    0.674%      Tour operators         644,076.98    0.670%
  Guest Houses            462,239.45     0.399%           Guest Houses             455,186.46    0.443%      Guest Houses           464,762.68    0.483%
  B & B 's                 80,257.15     0.069%           B & B 's                  50,590.43    0.049%      B & B 's                79,725.74    0.083%
  Conference Venues         1,073.69     0.001%           Conference Venues               -      0.000%      Conference Venues             -      0.000%

                      115,894,847.55         473                               102,831,670.52        506                         96,183,488.28      491

                                                          Tour operators      Guest Houses
                                            Game Lodges                             B & B 's
                                                     Resorts                     Conference Venues

                                       Car Hire

                                                                                                           Hotels

                                                                              10
MESSAGE FROM SA TOURISM CEO TO LEVY COLLECTORS

This is a momentous year for us as a country and as an industry. As
we celebrate 20 years of living in a free and democra c South
Africa, the tourism industry can really afford to feel a real sense of
achievement in what we have managed to achieve during this
 me.

In 1993, the year before Nelson Mandela was elected as South
Africa's first democra c president, 3.4 million people visited
South Africa, of which we es mate only around 600 000 were
tourists. Final numbers are not yet in, but last year we es mate
that we welcomed close to 10 million tourists to South Africa
from around the world.

This is part because we have an incredible country, that boasts
incredible wildlife, diverse scenery and a warm and hospitable
people, but also because of the amazing work that this industry
has done to ensure that South Africa's entry onto a global                                  Mr. Thulani Nzima - SA Tourism CEO
pla orm has been as impac ul and successful as possible.
                                                                             Looking forward we are confident that the tourism industry is in
This tourism industry can proudly say that what has happened                 good shape. Tourist arrivals to South Africa grew by 4% for the
and con nues to take place in terms of tourism growth to South               first ten months of 2013 as compared to the first ten months of
Africa is one of democra c South Africa's biggest success stories.           the previous year. Overseas arrivals grew by 6.1% during this me
This growth has fuelled some of our country's most important                 with a 9.1% growth from Asia, a 6.2% growth from Europe, a 6.3%
priori es – job crea on, direct contribu on to GDP growth and                growth from Central and South America and a 4.4% from North
foreign direct investment.                                                   America.

What's important is that this industry has con nued to invest in             This is good news given that this is growth on top of our excellent
making South Africa a world class des na on and this has                     growth figures of 2012 which far exceeded global averages. All
certainly paid off – today we have world-class tourism                        indica ons are that the tourism industry experienced an
infrastructure that not only meets but exceeds tourist demand,               excellent summer season and we have gone into 2014 with an
an offering that suits all ages, tastes and budgets. But what is              industry op mis c about the future. From a brand perspec ve
par cularly important to note is that the tourism industry's                 we are confident that our current campaign, Meet South Africa, is
commitment has gone beyond providing the services and the                    resona ng with our target audiences and we will con nue to
infrastructure to meet this demand. It has been instrumental in              market our standout a ribute, the emo onal response that
posi oning who we are and in making South Africa visible and                 tourists have to our des na on and our people at the heart of our
relevant in a highly compe ve global marketplace.                            con nent.

It is South African Tourism's mandate to market South Africa                 We do believe that the des na on is s ll yet to realise its true
interna onally, but the work that we do would not be possible                poten al. The campaign con nues to evolve to ensure that we
without the support we receive from industry. This is an industry            unlock this. We look forward to your input on some of our latest
that has not only talked support but is ac vely contribu ng to our           work and con nue to thank all of you for making it possible. This
marke ng efforts through the Tourism Business Council of South                is a sector that con nues to inspire South Africans from all walks
Africa's TOMSA levy. This levy, which amounts to roughly ten                 of life about just what is possible when the public and private
percent of our total marke ng budget, ensures our global                     sectors work together.
compe veness.
                                                                             I look forward to con nuing the good work with all of you as we
This year, TOMSA levies were an amount higher than what was                  move into an exci ng, yet challenging, third decade of
expected. This enables us to take our message of invi ng the                 democracy.
world to come and Meet South Africa to more people on more
pla orms which ul mately results in more people choosing to
come and experience South Africa for themselves.

                                                                        11
SA TOURISM EXECUTIVE REPORT

GLOBAL TOURISM PERFORMANCE
International foreign arrivals grew by 5% in 2013, reaching a record 1,087 billion arrivals, according to the latest UNWTO World Tourism
Barometer. Despite global economic challenges, international tourism results were well above expectations, with an additional 52
million international tourists traveling the world in 2013.

Demand for international tourism was strongest for destinations in Asia and the Pacific (+6%), Africa (+6%) and Europe (+5%). The leading
sub-regions were South-East Asia (+10%), Central and Eastern Europe (+7%), Southern and Mediterranean Europe (+6%) and North
Africa (+6%). Globally, Tourism has been among the few sectors generating positive news for many economies despite the lingering
economic challenges.

UNWTO forecasts international arrivals to increase by 4% to 4.5% in 2014, again above its long-term forecast of +3.8% per year between
2010 and 2020. The positive results of 2013, and the expected global economic improvement in 2014, set the scene for another positive
year for international tourism.

 Among the ten most important source markets in the world, Russia and China clearly stand out. China, which became the largest
  outbound market in 2012 with an expenditure of US$ 102 billion, saw an increase in expenditure of 28% in the first three quarters of
  2013.
 The Russian Federation, the 5th largest outbound market, reported 26% growth through September.
 Africa's +6% growth brought three million additional arrivals, reaching a new record of 56 million, reflecting the on-going rebound in
  North Africa of +6% and the sustained +5% growth of Sub-Saharan destinations.
 Brazil is among other emerging markets with substantial growth in outbound expenditure at approximately 14%.

This is good news for the SA tourism industry as we are well positioned in Africa and other emerging markets. Our Africa Growth Strategy
and market entry strategies using the hub approach has put SA Tourism in a very strong position with presence in East Africa through our
office based in Nigeria. Our China market holds fourth position as South Africa's source market for tourist arrivals and this success can be
attributed to the following:

 Marketing driven by our China office
 Plans by SAA to increase frequency and change flight schedule to allow easier connections from Beijing to other business centres of
  China.
 Improved efficiencies and turnaround times in visa issuance

Our new office in Brazil established under the marketing agency agreement will be launched in July 2014. This office is a demonstration of
SA Tourism's commitment to develop relations with trade and grow outbound tourism to South Africa. The performance of key advanced
economy source markets was comparatively more modest. France grew at 6%; a recovery from a weak 2012 and the United States, the
United Kingdom, Canada and Australia all grew at 3%. In contrast, Germany, Japan and Italy reported declines in outbound expenditure.
In overall, Europe grew by 5% - leading in absolute terms by attracting an additional 29 million arrivals to high of 563 million arrivals in
total. Central and Eastern Europe showed best results growing by +7% and Southern Mediterranean Europe +6%.

USA's +4% growth attracted additional six million arrivals, reaching a total of 169 million. Leading this growth were destinations in
North and Central America (+4% each), while South America (+2%) and the Caribbean (+1%) showed some slowdown as compared
to 2012.

                                                                   12
SA TOURISM EXECUTIVE REPORT

SOUTH AFRICAN PERFORMANCE ON TOURIST ARRIVALS
According to StatsSA, international foreign arrivals to South Africa reached its highest levels ever: 14 860 216; a 10.5% growth from 2012.

Visitor arrivals to South Africa in 2013 grew by 10.5% over 2012 to reach 14,860,216. All regions showed posi ve growth in tourist
arrivals in this period.

  Approximately, 65% of the foreign arrivals translated to tourist arrivals – reaching 9.6 million in 2013.
  This close to 5% growth is comparable to the global growth in foreign arrivals and just slightly below the 5% growth for Africa.

Tourist arrivals to South Africa in 2013 grew by 4.7% over 2012 to reach 9,616,964. All regions showed posi ve growth in tourist
arrivals in this period.

                                                                   13
SA TOURISM EXECUTIVE REPORT

DOMESTIC TOURISM PERFORMANCE
Total annual spend has increased from R21.8 billion in 2012 to R24.3 billion in 2013 and average spend from R850 per trip to R960 per trip.
However, the number of trips undertaken decreased from 25.4 million in 2012 to 25.1 million and the number of nights from 4.8 to 4.4.
Although VFR remains the major purpose for domestic travel, the share thereof has decreased from 72% in 2012 to 70% and business
travel has increased from 17% to 19% in 2013.

                                          Key Metrics                         2012                            2013

                                             Annual                            40%                            35%
           Domes c Travel
             Incidence
                                             Monthly                            6%                             6%

                                              Annual                       25.4 Million                   25.1 Million

                                            Travellers                     12.5 Million                    12.0 Million

                                          Avg. Trip taken                      2.1                             2.1
              Number of
                Trips
                                                                     VFR: 72%, Holiday: 12%,        VFR: 70%, Holiday: 11%,
                                           By Purpose
                                                                          Business: 7%,                  Business: 8%,

                                        Total Annual Spend                 R21.8 Billion                  R24.3 Billion

                                                                   VFR: 52%, Holiday: 23%,          VFR: 47%, Holiday: 26%,
                                           By Purpose
                                                                        Business: 17%                    Business: 19%

                 Spend
                                                                           R850 / Trip;                   R960 / Trip;
                                    Average Spend per Trip /
                                            per Day
                                                                          R180 / Day                       R210 / Day

                                     Total Annual Bed Nights              121.2 Million                   111.3 Million

               Trip Length

                                      Av erage Nights per Trip                 4.8                             4.4

                                                                   14
SA TOURISM EXECUTIVE REPORT

STRATEGIC OBJECTIVES FOR JANUARY TO JUNE 2013, CHALLENGES AND KEY ACTIONS
Overall, SA Tourism achieved three out of six objectives.

 OBJECTIVE                 ANNUAL TARGET            ACTUAL (YTD)         COMMENT

 No of annual foreign      13 021 979               14 860 216           Target over-achieved by 14.11%; resul ng in a 10.5%
 arrivals in SA                                                          growth from 2012. SAT capitalised on the strength of its
                           (Q1 - 3 125 275)         3 620 149            partnerships, enhancedstrategies and plans
                                                                         implemented in the respec ve core markets.
                           (Q2 - 2 995 055)         3 417 881

                           (Q3 – 3 385 715)         3 757 109

                           (Q4 –3 515 934)          4 065 077

 No of domestic            15 000 000               12.0 million         80% achieveddue to high unemployment, soaring fuel
 travellers per year                                                     prices and lost income during mes of industrial ac on
                                                                         are impairing the financial posi ons of low and middle
                                                                         income consumers in par cular. Improved performance
                           (Q1 – 4 000 000)         3.2 million          is expected from the new domes c campaign- launched
                                                                         in September 2013.
                           (Q2 - 4 000 000)         2.9 million

                           (Q3 – 3 000 00)          2.8 million

                           (Q4 – 4 000 000)         3.1 million
 Trended Revenue ( R)      R115.4 billion           R99.1 billion        TFDS for the period Jan – Sep was R74.8 billion and
                                                                         domes c revenue for the full year was R24.3 billion.
                           (Q1 – R27,7 billion)                          With three months missing in the interna onal revenue
                                                                         our focus is that we will achieve our revenue target
                            (Q2 – R26,5 billion)                         es mated to be R123.1 billion.
                           (Q3 – R30.0 billion)

                           (Q4 – R31.2 billion)

 Average brand           79%                        79%                  100% achieved.
 awareness
 Total number of             6 789                  5 671                TGCSA did not achieve its annual target of 6 789 graded
 graded proper es                                                        establishments by 20%- resulting to actual performance
                           (Q1 – 1 697)                                  of 5 671 graded establishments by the end of March
                                                                         2014. Contrary, the number of room s has increased to
                           (Q2 – 271)                                    113 074 in 2013 from 110509 in 2012.
                           (Q3 – 1 426)

                           (Q4 –3 395)
 Number of delegates       56 000                   76 610               The set target was exceeded by 36.8%. Tracking of
                                                                         performance for the ICCA Ranking underway.
                           No quarterly targets

                                                                    15
SA TOURISM EXECUTIVE REPORT

NATIONAL CONVENTION BUREAU
The SANCB in conjunction with its industry partners and local convention bureaus submitted 57 bids in the 2013-14 financial year. These
bids will contribute an estimated R948 million to the country's economy, will generate 180 conference days and will attract 76 000
association professionals to South Africa (SA) over the next five years.

Meetings Africa has become the biggest, best represented and most valuable Pan African business events trade show. This year Meetings
Africa was successfully hosted from the 25 – 26 February 2014 at the Sandton Convention Centre in Johannesburg. Meetings Africa 2014
hosted the following qualified hosted buyers: 169 international, 31 African association and 500 local corporate and 15 government
buyers as well as exhibitors from 13 African countries. A total of 3 295 delegates attended Meetings Africa 2014 and this resulted in a 15%
increase in attendance from 2013.

The SANCB's positioning strategy, “Rise with Us” launched last year is clearly bearing fruits. The strategy was launched to address and
change the misconceptions the global industry has about South Africa and it seems the message is being well received.

In 2013 SA secured the hosting right to a number of important business events. One of those events is the International Aids Conference
which will be returning to SA in 2016. SA remained the highest ranked African destination on the International Congress and Convention
Association's (ICCA) 2013 ranking. SA is ranked 34th globally in 2013 improving its ranking with 3 places from 37th and is ranked 11th
globally among other long haul destinations.

Sandton Conven on Centre
Photo: Walter Knirr

                                                                   16
SA TOURISM EXECUTIVE REPORT

MARKETING
All efforts towards INDABA 2014 were aimed at transforming INDABA to a truly pan-African travel show.
This comes at the time when Africa emerges as one of the fastest growing tourism destinations in the world growing by six percent in
2013 to reach 56 million tourist arrivals. Statistics on INDABA 2014 are outlined below for information.

                BUYERS                       2014                    2013                  % Change
                Total Buyers
                                             2 138                   2 896                 -26.17
                (incl. Hosted)
                Local Buyers                 788                     1 127                 -30.08%
                Interna onal Buyers          1 069                   1 562                 -31.56%
                Hosted Buyers                281                     207                   +35.75%
                EXHIBITIONS
                                             2014                    2013                  % Change
                (COUNTRIES)
                Total Exhibitors             35                      30                    16.67%
                Local Exhibi ons             1                       1                     0%
                SADC Exhibitors              14                      13                    +7.69%
                Regional Africa Exhibitors   12                      7                     +71.4%
                Interna onal Exhibitors      9                       9                     0%
                PRODUCTS                     2014                    2013                  % Change
                Total Products               1 198                   1 299                 -7.78%
                Local Products               750                     807                   -7.06%
                SADC Products                352                     412                   -14.56%
                Regional Africa Product      76                      66                    +15.15%

                Interna onal Products        20                      14                    +42.86%

                MEDIA                        2014                    2013                  % Change
                Total Media
                                             771                     772                   -0.001%
                (incl. Hosted)

                Local Media                  84                      63                    +33.33%

                                                                17
SA TOURISM EXECUTIVE REPORT

LAUNCH OF THE GLOBAL CAMPAIGN                                              HUMAN RESOURCES
Our Meet South Africa campaign introduced the world to South                Staff turnover for the period under review reached 9%.
Africa. We have shared the smiles of our people, our warm                   The Board approved Resource Optimisation Plan has been
hearts, our breath-taking splendour, and the experiences that                implemented. The Regional Director role (except for Africa
mean that the 'you', who arrives in South Africa, will not be the            with ring fenced budget and therefore requires strengthened
same 'you' who leaves. However, in Brand Review, there was still             focus) was restructured resulting in the following changes:
an issue of a decline in awareness and positivity identified. There              Regional Director: Americas took up the position of
is leakage between awareness and consideration, as global                            General Manager: International Markets reporting to
travellers find other destinations “more appealing”. The concept                     CMO. This position will effectively look after all
of a 'change point' is also becoming increasingly important as                       operational marketing activities within the core
more and more of our key markets require consumers to rethink                        markets and all Country Managers.
what they know about SA.                                                         Regional Director: UK took up the position of General
                                                                                     Manager: Strategic Research Unit reporting to the
We identified the need to close that gap with a message that is                      COO.
emotional, truly inspiring and that brings our Big Idea of “Come                 Regional Director: Asia and Asia Pacific has been
and experience heartfelt connections” to life. With this in mind,                    appointed to the position of Regional Director: Africa
we looked at how we could continue to build our big idea of                          reporting to the CMO
'Heartfelt connections,' whilst challenging travellers to re-
evaluate what they think they know about South Africa. The                  The position of Global Manager: Communications was filled.
critical factor was to develop a stronger 'emotional connection'            After 3½ years, Tim Scholtz has left the organisation at the
with our people and a traveller's transformation through                     end of April 2014. Fanie Van Der Spuy has also gone on
engagement with South Africans. Simply put, we need to inspire a             retirement after 25 years of sterling and diligent work at SA
re-evaluation of what you (Global TM) think you know about                   Tourism.
South Africa.                                                               An appointment has been made for the position of Country
                                                                             Manager: UK following the departure of Lungi Morrison in
TOURISM GRADING COUNCIL                                                      October 2013. Paperwork for Hanneli Slabber's appointment
TGCSA did not achieve its annual target of 6 789 graded                      is still underway.
establishments by 20% - resulting to actual performance of 5 671            Linda Sangaret will be leaving her position as Country
graded establishments by the end of March 2014. Contrary, the                Manager for France at the end of July 2014 as her family will
number of rooms has increased to 113 074 in 2013 from 110 509                be relocating back to South Africa. At this stage SAT doesn't
in 2012.                                                                     have a suitable position for her.

This adverse performance against target is largely due to the key          FINANCE
challenges, as evidenced by the total cancellations of 1 357               Consolidated to the actual operational and CAPEX expenditure
properties that chose not to renew their grading status during             for 12 months of the 2013/14 financial year
this year. The challenges faced during this past year will be
addressed in the TGCSA Strategy that will be shared with the
                                                                               Overall expenditure                            Summarised
Board once EXCO input has been sought.                                                                                         status on
                                                                                                                                overall
                                                                                                                              expenditure
The new Game Lodge Criteria was launched at INDABA this year,
                                                                           During the first 12 months of the 2013/14
after an extensive consultation process. Approximately, 265
properties are currently being re-graded and verified for UA by 6
                                                                           financial year, SA Tourism spent R 1 035 738 725
                                                                           million (consis ng of YTD actual and
                                                                                                                                 
UA-qualified TGCSA assessors. This initiative is driven in                 YTD Encumbrance amounts).
consultation with the National Department of Tourism to
improve universal accessibility in key establishments across the
various Provinces.

                                                                      18
SA TOURISM EXECUTIVE REPORT

COUNTRY OFFICE ACTUAL OPERATIONAL EXPENDITURE FOR THE 12 MONTHS OF THE 2013/14 FINANCIAL YEAR
12 South African Tourism Country office's spent 90% or more of their year-to-date budgets, two Country offices were slightly below
budget (Nigeria, Kenya & DRC) and one Country office was significantly below budget (Angola ).

                                                    Approved           Total Y TD
                  Unit              Curr                                                  Total YTD Actual % of Budget                 Status
                                                  Annual Bud get        Budget                               spent

                  Tokyo             JPY               107,181,408      107,181,408             106,143,137             99%              
                  Sydney            AUD                 2,971,389          2,971,389             3,000,308             101%             
                  Beijing           CNY                15,859,658        15,859,658             16,100,067             102%             
                  India             INR               124,786,177      124,786,177             127,540,993             102%             
                  New York          USD                 6,848,643          6,848,643             6,601,317             96%              
                  Brazil            ZAR                19,999,815        19,999,815             18,368,472             92%              
                  London            GBP                 3,337,272          3,335,772             3,947,882             118%             
                  Amsterdam         EUR                 2,286,763          2,286,763             2,322,707             102%             
                  Paris             EUR                 3,392,603          3,392,603             3,323,677             98%              
                  Nigeria           USD                 2,547,840          2,547,840             2,467,627             97%              
                  Kenya             ZAR                14,477,021        14,477,021             12,629,588             87%              
                  Frankfurt         EUR                 4,408,531          4,408,531             4,350,222             99%              
                  Angola            USD                 1,132,926          1,132,926               856,297             76%              
                  DRC               ZAR                 1,779,500          1,779,500             1,455,028             82%              
                  Milan             EUR                 2,320,035          2,320,035             2,372,002             102%             
BUSINESS UNIT ACTUAL OPERATIONAL EXPENDITURE FOR 12 MONTHS OF THE 2013/14 FINANCIAL YEAR
16 of South African Tourism's 17 Business Units spent 90% or more of their 2013/14 year-to-date budgets (* The Administra on unit
is a sub-business unit of the Office of the CEO/COO), One Business Unit was slightly behind budget (E-marke ng).

                                               Ap p roved An n u al                                                    % of Bu d get
             Un it                Cu rren cy                          T ota l Y T D Bu d get   T ota l Y T D Actu al                     S tatu s
                                                     Bu d get                                                             sp ent
             Africa                ZAR                54,803,579             54,803,579              51,689,797              94%          
             Domes c               ZAR                51,543,951             51,543,951              52,735,638           102%            
             Europe & UK           ZAR               194,998,630            194,977,285             248,841,498           128%            
             Asia & Aus            ZAR                95,847,726             95,847,726              87,753,158              92%
                                                                                                                                          
             Americas              ZAR                84,856,464             84,856,464              91,482,530           108%            
             Conv Bureau           ZAR                44,811,419             44,811,419              51,982,111           116%
                                                                                                                                          
             Central Mark          ZAR               225,682,870            225,682,870             225,158,389           100%            
             PR & Comms            ZAR                 9,094,691              9,094,691               8,723,280              96%
                                                                                                                                          
             TGCSA                 ZAR                33,282,841             33,282,841              37,888,706           114%            
             Finance               ZAR                26,806,414             26,806,414              26,650,265              99%
                                                                                                                                          
             HR                    ZAR                 7,899,096              7,899,096               7,625,469              97%          
             e-Mark                ZAR                35,558,627             35,558,627              29,699,651              84%          
             Bus Systems           ZAR                17,720,190             17,720,190              17,097,457              96%          
             Office of CEO/COO       ZAR                35,285,769             35,285,769              34,069,849              97%          
             Administra on*        ZAR                12,069,780             12,069,780              20,509,348           170%            
             SRU                   ZAR                44,289,048             44,289,048              44,531,469           101%            
             Product               ZAR                13,255,219             13,255,219              12,410,585              94%          
             Watchlist             ZAR                 8,665,218              8,665,218               8,630,321           100%            

                                                                      19
SA TOURISM EXECUTIVE REPORT

CORPORATE GOVERNANCE

RISK MANAGEMENT
Below is the outcome of the risk review undertaken recently.

                                                                                                                     Inherent Risks
                                                                                                                     (Jan 2014)

                                                                                                                     Inherent Risks
                                                                                                                     (May 2014)

                                                                                                                     Control Effectiveness
                                                                                                                     (Jan 2014)

                                                                                                                     Control Effectiveness
                                                                                                                     (May 2014)

                                                                                                                     Residual Risk
                                                                                                                     (Jan 2014)

                                                                                                                     Residual Risk
                                                                                                                     (May 2014)

# RM: RISK MOVEMENT - CURRENT REVIEW COMPARED FROM THE RISK ASSESSMENT DONE IN JANUARY 2014.

RM1: There is no risk movement, however from a risk perspec ve, it is crucial to consider and highlight the significance of this risk as it is
aligned to the key strategic objec ves of SA Tourism. Though it is iden fied and mi gated independently, it is related to risk number 4.
This risk is affected by few risk elements that ul mately yielded nega ve performance results – i.e. failure to meet set targets for TGCSA.
Challenges encountered in QiT system were taken into considera on.

RM2: Risk movement in rela on to compliance risks is as a result of the review and analysis of the inherent risk.

RM3: The risk movement in this regard is more on the basis of SAT being unable to achieve all its set targets – strategic objec ves. In
overall, we will exceed the set target for foreign visitor arrivals. SAT strategic objec ves are six (6) with some of the objec ves having sub-
targets to complement the measurements. Considering the above, we have managed to achieve 3 strategic objec ves out of six, which is
a 50% achievement. From a risk perspec ve, this must be mi gated.

RM4: The risk movement has been caused by the weakness the control environment. The assessment of the control effec veness
revealed weakness which es in perfectly with compliance risks.

RM5: The legal risk had a risk movement because of how prone/vulnerable SAT is in the country offices. Issues of laws and other legal
aspects that SAT encounters at opera onal level challenges the success level an cipated to be achieved in those markets. Another side of
this is instances that a ract costs (which not have been budgeted for) either when defending the ma er or when SAT is to pay penal es,
just as an example.

                                                                     20
SA TOURISM EXECUTIVE REPORT

INTERNAL AUDIT
The internal audit sub-business unit audited fixed assets, performance informa on audit as well as compliance audit during the period
under review. The conclusion on the audit reports was "sa sfactory" and there were no significant audit findings raised. The internal
audit also concluded 60% (i.e. 3 of 5) inves ga on ma ers reported through SA Tourism Hotline and directly to internal audit unit.

OPENING OF OFFICES
Below is the revised schedule of the planned office openings;

         Country where SA                       Date            Comments
         Tourism Office will be
         Opened
         Nigeria                             2013/12/10         Launch of the office was undertaken in January 2014
                                                                The bureaucracy has s fled the registra on of the
                                                                legal en ty. Opening of this office will be delayed by
                                                                another 10 more weeks. Financial viability is s ll
                                                                being tested par cularly in light of the budget
                                                                constraints. Therefore sourcing of office space &
                                                                appointment of Country Manager of the Angolan
         Angola                              2014/06/30         na onality is underway.

                                                                Registra on underway and will be concluded 6 weeks
                                                                from now. Appointment of the Regional Manager
                                                                delayed, synchronised with company registra on and
         Kenya                               2014/05/30         business permit issuance

                                                                The Marke ng Agency Agreement was concluded
                                                                February 2014 and the office is ready.The launch is
                                                                                              th
                                                                planned for the week of the 16 July 2014 to coincide
         Brazil                              2014/03/30         with the BRICS Summit in Brazil.

Drakensburg Mountains

                                                                21
MARKETS THAT WILL DRIVE FUTURE GROWTH

Responsibility

                                                           AFRICA              AMERICAS   ASIA & AUSTRALASIA   EUROPE & THE UK
                    Country Manager

                                      CORE MARKETS         Angola                Brazil         Australia           France
                                                          Domes c                 USA            China             Germany
                                                            Kenya                                 India           Netherlands
                                                         Mozambique                                                   UK
Regional Director

                                                           Nigeria
                                                          Tanzania

                                      INVESTMENT          Botswana              Canada           Japan                Italy
                                      MARKETS                DRC                              South Korea            Russia
                                                            Ghana
                                                           Lesotho
                                                            Uganda
                                                          Zimbabwe

                                      TACTICAL             Namibia                             Singapore          Switzerland
                                      MARKETS                UAE
                                                           Zambia
                                      WATCH -LIST          Ethiopia            Argen na       New Zealand           Austria
            Stakeholder
              Manager

                                      MARKETS               Malawi                                                 Belgium
                                                          Swaziland                                                Denmark
                                                                                                                    Finland
                                                                                                                    Norway
                                                                                                                     Spain
                                                                                                                   Sweden
           Global
           TRM:

                                                                                                                    Turkey

                                      STRATEGIC      Egypt, Israel, Morocco,                    Malaysia
                                      IMPORTANCE      Saudi Arabia, Tunisia,

                                                                                  22
HUB STRATEGY

STRATEGIC RATIONALE:
Increasing cost of doing business abroad coupled with the shrinking budgets has compelled us to priori se & consolidate markets – a
shi from a Regional to a Hub approach to op mise ROI.

                      AMERICAS                               ASIA & AUSTRALASIA                                   EUROPE

        NORTH AMERICAS                LATIN AMERICAS                  ASIA PACIFIC           CENTRAL Europe                 UNITED KINGDOM

                                                            China - Office ** : H ub       Germany (Office): Hub               United Kingdom
      USA (Office) - Hub               * Brazil (Office): Hub
                                                                                                                           (Office): Hub
      Canada                         *** Argen na           Hong Kong                    Russia **
                                                                                                                           Ireland
                                                            Macau ***                    Spain
                                     *** Chile                                                                             Scotland
                                                            Japan                        Turkey
                         AFRICA                                                                                            Wales
                                                            South Korea **               Switzerland
         WEST AFRICA                    EAST AFRICA                                      Austria                               BENELUX &
                                                                     AUSTRALASIA                                              SCANDINAVIA
      * Nigeria (Office): Hub      * Kenya (Office) : Hub                                                                      Netherlands (Office)
                                                            Australia (Office) : Hub           FRANCE (OFFICE)                            Hub
      Ghana                      Tanzania &                 New Zealand                                                    Belgium
      *** ECOWAS                 Uganda **                                               France – Stand Alone
      countries                                                          INDIA                                             Norway
                                 *** Ethiopia
       CENTRAL AFRICA                                                                            ITALY (OFFICE)            Sweden (**)
                                                            India (Office) – Stand Alone
     * Angola (Office) –                                                                   Italy – Stand Alone               Denmark
     Stand Alone
                                                                    ASIA Air LINK HUB                                      Finland
      DRC: Hub
                                                            Malaysia
                              SADC
                                                            Singapore

     Botswana                             Zimbabwe

     Malawi                               Lesotho

     Mozambique                           Zambia

                                          Namibia

NOTES:
* Planned SA Tourism Offices (2013/2014)
** 1 Trade Rela ons Manager will be appointed – approved by Board (2014/2015)
   (Shanghai, South Korea, Russia, Scandinavia as well as Tanzania and Uganda)
*** Future Plans (2015/16 and Beyond)

                                                                           23
WHAT WE DO WITH AND THROUGH OUR PARTNERS

IMPROVING CONVERSION RATIOS BY INCREASING AWARENESS, POSITIVITY AND CLOSURE RATIOS

IMPROVING CONVERSION THROUGH TRADE AND MEDIA PARTNERSHIPS

                                                 24
GLOBAL CAMPAIGN

25
THANK YOU FOR YOUR SUPPORT

                             26
LEVY COLLECTORS IN GOOD STANDING AT 31 DECEMBER 2013
The HPC                                        Durban Spa Body Corporate                 Hout Bay Manor
3 Melrose Road Executive Accomodation          Elements Golf Resort                      Houw Hoek Inn
45 Peter Place                                 Emperors Palace Hotel Casino Convention   Humewood Hotel
Abercrombie & Kend Southern Africa             Resort                                    Hunters Country House
Absolut Tours & Safaris                        Essenwood House                           Hyatt Regency Johannesburg
Acorn House B & B                              Etnique Travel                            Hyatt Regency Oubaai Golf Resort & Spa
Africa Pride - Hacklewood Hill Country         Europcar South Africa                     IFA Zimbali Lodge
House                                          Fairfield Tours                           Ilanga Travel
Africa Pride - The Arabella Hotel & Spa        Fairlawns Boutique Hotel & Spa            Inn On The Square
African Conferences & Incentives               Felix Unite River Adventures              International House Cape Town
African Pride - Melrose Arch Hotel             Ferroland Grondtrust                      Intundla Game Lodge
Afro Golf                                      Ferryman's Hotel                          ISO Leisure Woodmead
All Suite on 14th                              Fish Eagle Lodge                          Jock Safari Lodge
Alpine Heath Resort & Conference Village       Fish River Sun & Country Club Resort      Jozini Tiger Lodge
Angel's Place Boutique Hotel                   Fordoun Leisure                           Kagga Kamma
Ascot Boutique Hotel                           Forever Resorts Mount Sheba Country       Kamieskroon Hotel
Ashanti Lodge                                  Lodge                                     Kapenta Bay Hotel
Askari Lodge                                   Forever Resorts Badplaas                  Kingfisher Lodge
Atlantic Beach Hotel                           Forever Resorts Centurion Hotel           Klein Welmoed Luxury Guest House
Audacia Hotel                                  Forever Resorts Blyde Canyon              Kleinkaap
Avis Rent a Car                                Forever Resorts Gariep                    Kloofzicht Lodge
Bakubung Lodge                                 Forever Resorts Loskopdam                 Kokerboom Motel
Balloon Safaris                                Forever Resorts Plettenberg Bay           Kraal Kombuis
Bayshore Inn                                   Forever Resorts Swadini                   Kwa Maritane Game Lodge
Belvidere Manor                                Forever Resorts Tshipise                  La Maison - Hatfield
Big Nouse Tours & Projects                     Forever Resorts Warmbaths                 Laureate Private Resorts
Birchwood Management Company                   Forever Resorts Waterfall Safari Lodge    Le Franschhoek Hotel
Birdsong Cottages                              Fullham Lodge                             Leeuwenhof Country Lodge
Black Mountain Hotel                           Gallo Manor Country Lodge                 Leeuwenvoet House
Bloemfontein Bali Lodge                        Gateway Hotel                             Legacy All Suites Management Services
Bonang Conference Centre                       Glenburn Lodge                            Lekkerwijn Guest House
Bongani Game Reserve                           Gold Reef City                            Leriba Hotel And Spa
Boschdal Guesthouse                            Golden Horse Casino Hotel                 Lesedi Cultural Village
Breakers Resort                                Gooderson Leisure Corporation             Luxury Car
Bucklands Private Game Reserve                 Gorah Elephant Camp                       Lythwood Lodge
Budget Rent A Car                              Gosafari                                  Mad-Meerkat Tours
Buhala Country House                           Gracie's Place                            Makalali Private Game Reserve
Calders Hotel                                  Grandwest Casino & Entertainment World    Makaranga Garden Lodge
Caledon Casino                                 Greenways Hotel                           Mala Mala Ranch
Cape Grace Hotel                               Greenways Woods                           Mandela Rhodes Hotel & Spa
Carnival City                                  Harbour Bridge Hotel & Suites             Marine Dynamics Shark Tours
Centurion Lake Property                        Hertz Rent a Car                          Maropeng A'Africa Leisure
CII Hotels & Resorts TA Hilton Cape Town       Hilton Hotel - Durban                     Mary Reynolds Agency Services
City Lodge - Bloemfontein                      Hilton Hotel - Sandton                    Masibambane Guest House
City Lodge - Bryanston                         Hippo Boutique Hotel                      Masonic Hotel Springbok
City Lodge - Durban                            Holiday Inn Express - Cape Town           Matoppo Inn
CIty Lodge - Fourways                          Holiday Inn Express - Durban Umhlanga     Mercure Hotel Premier Lodge Nelspruit
City Lodge - Grand West                        Holiday Inn Express - Sunnypark           Mercure Inn Midrand
City Lodge - Hatfield                          Holiday Inn - Rosebank                    Mercure Inn Randburg Waterfront
City Lodge - Jhb Int Airport Barbara Road      Holiday Inn - Sandton                     Mercure Premier Lodge Bedfordview
City Lodge - Katherine Street                  Hotel 224                                 Michelle's Travel Agency
City Lodge - Morningside                       Hotel Casa Do Sol                         Mkuze Falls Game Reserve
City Lodge - Pinelands                         Hotel Formula Inn Southgate               Mmabatho Palms Hotel Casino &
City Lodge - Port Elizabeth                    Hotel Formula 1 Alberton                  Convention Resort
City Lodge - V&A Waterfront                    Hotel Formula 1 Beaufort West             Modimolle Funky Stay
City Lodge at O.R. Tambo Airport               Hotel Formula 1 Benoni                    Mala Mala Ranch
City Lodge - Lynnwood                          Hotel Formula 1 Berea                     Mandela Rhodes Hotel & Spa
City Lodge - Umhlanga Ridge                    Hotel Formula 1 Bloemfontein              Marine Dynamics Shark Tours
Coastlands Umhlanga Hotel                      Hotel Formula 1 Cape Town Foreshore       Maropeng A'Africa Leisure
Colosseum Luxury Hotel                         Hotel Formula 1 Durban                    Mary Reynolds Agency Services
Commodore Hotel                                Hotel Formula 1 Edenvale                  Masibambane Guest House
Connex Travel                                  Hotel Formula 1 Kimberley                 Masonic Hotel Springbok
Constantia Hotel                               Hotel Formula 1 Midrand                   Matoppo Inn
Court Classique Suite Hotel                    Hotel Formula 1 Milnerton                 Mercure Hotel Premier Lodge Nelspruit
Courtyard - Bruma Lake                         Hotel Formula 1 Nelspruit                 Mercure Inn Midrand
Courtyard - Rosebank General                   Hotel Formula 1 OR Tambo                  Mercure Inn Randburg Waterfront
Courtyard - Arcadia                            Hotel Formula 1 Parow                     Mercure Premier Lodge Bedfordview
Courtyard at Sandton                           Hotel Formula 1 Port Elizabeth            Michelle's Travel Agency
Courtyard - Cape Town                          Hotel Formula 1 Pretoria                  Mkuze Falls Game Reserve
Courtyard Suite Hotel - Port Elizabeth         Hotel Formula 1 Richards Bay              Mmabatho Palms Hotel Casino & Convention Resort
Crystal Towers Hotel                           Hotel Formula 1 Southgate                 Modimolle Funky Stay
Cybele Forest Lodge                            Hotel Formula 1 Vereeniging               Mondazur Resort Estate Hotel
Da Vinci Hotel & Suites                        Hotel Formula 1 Witbank                   Mopani Country Lodge
Desroches Hotel Margate                        Hotel Formula 1 Wynberg                   Morula Sun
Diamond Lodge                                  Hotel Formula Inn Park Station            Mount Grace Country House Hotel
Dolphin Beach Hotel                            Hotel Tzaneen                             Mount Nelson Hotel
Duma Travel                                    House Of Pharaohs                         Murraystreet 137 Guest House

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LEVY COLLECTORS IN GOOD STANDING AT 31 DECEMBER 2013
Naledi Sun                              Protea Hotel Upington                          The Lakes Hotel
Ngala Game Reserve                      Protea Hotel Victoria Junction                 The Last Word Constantia
NH Plettenberg Bay                      Protea Hotel Wanderers                         The Last Word Franschhoek
NH The Lord Charles                     Protea Hotel Waterfront Richards Bay           The Last Word Long Beach
Nkomazi Game Reserve                    Protea Hotel Witbank                           The Marion on Nicol
Oaklands Country Manor                  Protea Oasis Lodge Upington                    The Michelangelo
Ocean View House                        Protea Parktonian All Suite Hotel              The Palace
One And Only Cape Town                  Protea Riempie Estate Hotel                    The Peech Hotel
Oxbow Country Estate                    Quarters Hotel                                 The Peninsula
Oyster Box Hotel                        Queens Hotel - Oudtshoorn                      The Plettenberg
Park Inn Cape Town Foreshore            Radisson Blu Gautrain Hotel                    The Rex Hotel
Park Inn Sandton                        Radisson Blu Hotel - Sandton                   The Richards Hotel
Parker Travel & Parker Tours            Radisson Hotel - Port Elizabeth                The Ridge - Jack's Corner
Peermont Global - Graceland Hotel       Riviera Holiday Resort                         The Riverside Hotel & Spa
Peermont Global - Rio Hotel             Riviera On Vaal Hotel & Country Club           The Saxon Boutique Hotel, Villas and Spa
Peermont Global Tusk Taung Hotel        Road Lodge - Carnival City                     The Square Boutique Hotel & Spa
Pepper Club Hotel Management            Road Lodge - Centurion                         The Thornybush Collection
Pestana Kruger Lodge                    Road Lodge - Durban                            The Townhouse Hotel
Pezula Resort Hotel                     Road Lodge - East London                       The Turbine Hotel & Spa
Phinda Forest                           Road Lodge - Germiston                         The Twelve Apostles Hotel
Phinda Mountain                         Road Lodge - Isando                            The Urban Hotel Kathu
Pine Lake Shareblock                    Road Lodge - Port Elizabeth                    The Vacation Club
Plattner Golf                           Road Lodge - Port Elizabeth Airport            The Village at Spier
Plettenberg Park Hotel & Spa            Road Lodge - Potchefstroom                     Thompson South Africa
Portswood Hotel                         Road Lodge - Randburg                          Thula Thula Game Reserve & Safari
Protea Cape Castle Hotel                Road Lodge - Richards Bay                      Tour D' Afrique
Protea Hotel Breakwater Lodge           Road Lodge - Rivonia                           Tourvest Inbound Operations
Protea Hotel Christiana                 Road Lodge - Umhlanga Ridge                    Town Lodge - Bellville
Protea Hotel Clarens                    Road Lodge - Bloemfontein Airport              Town Lodge - George
Protea Hotel Empangeni                  Road Lodge - Cape Town Int Airport             Town Lodge - Jhb Int Airport
Protea Hotel Franschoek                 Road Lodge - JHB Int Airport                   Town Lodge - Menlo Park
Protea Hotel Hazyview                   Road Lodge - Kimberley                         Town Lodge - Nelspruit
Protea Hotel Highveld                   Road Lodge - N1 City                           Town Lodge - Polokwane
Protea Hotel Kimberley                  Road Lodge - Nelspruit                         Town Lodge - Port Elizabeth
Protea Hotel Kruger Gate                Road Lodge - Rustenburg                        Town Lodge - Roodepoort
Protea Hotel Mafikeng                   Road Lodge - Southgate                         Town Lodge - Sandton
Protea Hotel Nelspruit                  Rockwell All Suite Hotel                       Town Lodge - Midrand
Protea Hotel North Wharf                Romney Park Luxury Suites                      Tsala Treetop Lodge
Protea Hotel O.R. Tambo                 Rosebank Travel Service                        Tshukudu Lodge
Protea Hotel Outeniqua                  Rosenhof Country House                         Tsogo Sun Newcastle
Protea Hotel President                  Rosetta House                                  Tzaneen Country Lodge & Spa
Protea Hotel Ranch Resort & Lion Park   Rovos Rail                                     Ulusaba Rocklodge
Protea Hotel Richards Bay               Royal African Discoveries                      Umbhaba Lodge
Protea Hotel Sea Point                  Royal Elephant Hotel & Conference              Umhlanga Sands
Protea Hotel Stellenbosch               Royal Palm Hotel                               Umhluhluwe Safaris
Protea Hotel The Park                   Sanbona Wildlife Reserve                       Upper Eastside Hotel
Protea Hotel Umfolozi River             Seaforth Farm B & B                            Urban Park Hotel and Spa
Protea Hotel Umhlanga Ridge             Shamwari Game Reserve                          Victoria Hotel - Bredasdorp
Protea Hotel Willow Lake                Shishangeni Lodge                              Villa Roma Boutique Hotel & Conference
Protea Hotel Winkler                    Sibaya Casino & Entertainment Kingdom          Centre
Protea Hotel Balalaika &Crown Court     Silverstar Casino                              Vineyards Hotel & Spa
Protea Hotel Bloemfontein               Simon's Town Quayside Hotel                    Walkersons Country Manor
Protea Hotel Bloemfontein Central       Singita                                        Welgelen Manor
Protea Hotel Capital                    Singita Lebombo                                Westin Grand Cape Town Arabella Quays
Protea Hotel Centurion                  Sizwe Car Rental                               Whispering Pines Country Estate
Protea Hotel Cumberland Worcester       Southern Sun Hotel Interests                   Wild Coast Sun Hotel & Casino
Protea Hotel Edward                     Springbok Hotel                                Wilderness Manzengwenya
Protea Hotel Fire & Ice Melrose Arch    ST James On Knysna                             Willowbrook Lodge
Protea Hotel Fire and Ice - Cape Town   Stable Inn Conference Centre                   Winchester Mansions Hotel
Protea Hotel Hatfield                   Standard Hotel                                 Windmill Lodge
Protea Hotel Hilton                     Steenberg Hotel                                Windmill Ridge
Protea Hotel Hluhluwe & Safaris         Stormsrivier Adventures                        Worcester Casino
Protea Hotel Imperial - P/Maritzburg    Sun City Cascades Hotel                        XL Oceanair Travel
Protea Hotel Island Club                Sun City Hotel
Protea Hotel Karridene Beach            Sure Zorgvliet Travel
Protea Hotel King George                Table Bay Hotel
Protea Hotel Klerksdorp                 Tempest Car Hire
Protea Hotel Knysna Quays               Thakadu River Camp
Protea Hotel Landmark Polokwane         The Blades Bed & Breakfast
Protea Hotel Manor                      The Blue Train
Protea Hotel Marine Port Elizabeth      The Boardwalk Hotel, Convention Centre & Spa
Protea Hotel Midrand                    The Cabanas
Protea Hotel Roodepoort                 The Carousel
Protea Hotel Saldanha Bay               The Crowne Plaza Rosebank Hotel
Protea Hotel Transit                    The Docklands Hotel
Protea Hotel Tyger Valley               The Fairway Hotel & Spa
Protea Hotel Umhlanga                   The Kelway Hotel CC

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