Domestic, regional and international tourism

DOMESTIC TOURISM GROWTH STRATEGY

EXAM GUIDELINES AND LEARNER TIPS

Domestic, Domestic Tourism Growth Strategy & Five Market Segments
Regional and
International To answer questions on this topic you should be able to explain the
Tourism following:
• What is domestic tourism?
• What are the categories of domestic tourism?
• Why is there a need for Domestic Tourism Growth Strategy?
• Explain the structure and function of the Domestic Tourism Growth
Strategy
• What are the Trends that currently influence domestic tourism?
• Describe the campaigns associated with the DTGS
• Examine the domestic tourism market segment

Introduction

Growing domestic tourism through effective product development

Domestic tourism: International tourism

South Africa’s changing tourist profile

Concepts
Domestic Tourism
Domestic tourism refers to tourists travelling within the borders of a country.
Domestic tourist
They are tourists who travel within their own country
Seasonality
Peak or off-peak seasons, where more people travel during peak seasons like
school holidays and less people travel during off-peak seasons this result to
the loss of profit from the operating businesses and also more profit when peak
season.
Geographical Spread

The spread of tourism throughout the country, in all the provinces (intra-
provincial travel)

Gross Domestic Product

The total value of all goods and services produced within the geographic
boundaries of a country for a specified of time e.g., in a year (STATS SA)
 Intra -provincial tourism -Travelling within the borders of one province

Inter-provincial: Travelling from one province to another

Community: Are the people who are living next to or close to a specific area.

The state of domestic tourism in 2011

• Decline in the number of domestic trips
• VFR was the main purpose of taking a domestic trip
• The most common activities for holiday tourists were shopping, social
activities, visit natural attractions, beaches and nightlife. Why a DTGS?
(Problem statement and vision)

Four objectives

• To stimulate domestic tourism expenditure/ revenue

• To increase domestic tourism volume
• To develop effort and measures aimed at addressing seasonality and
fair geographical spread.
• To enhance the level of the culture of travel and tourism amongst South
Africans.

Vision for Domestic Tourism Growth Strategy (DTGS)

To stimulate the domestic tourism for a sustainable tourism economy.

Current trends influencing tourism

Trend: A general development or change in patterns or in the

way people that people are behaving.
Below are three current trends that are observed as having impact on
the growth potential of the domestic market:
Travel industry trends
Increased and frequent shorter holidays
Increased use of new technology (booking channels and marketing, e.g. social
media)

Technology trends
Disruptive technologies e.g. uber, Airbnb, couch surfing

Social trends
Shifting domestic travel demographics due to growing black middle class

There are seven (7) trends that have a very big influence on tourism in
South Africa.

THE DOMESTIC TOURISM MARKETING CAMPAIGN

Logo for the campaign:

The campaign needs to encourage South Africans to take advantage of all the
beautiful attractionsthat international tourists enjoy when visiting the country.
THE CAMPAIGN IS SUPPORTED BY FIVE PILLARS:

1. Brand marketing: traditional media and social media platforms will be used.
2. Word of Mouth (WOW): A South African user-generated road map with
recommendations for travel and day trips in South Africa.
3. Industry participation: promote affordable but exciting packages to trigger
the will to travel and explore.
4. Event promotion and packing: events will be held across the country
including sports, music, lifestyle and cultural events.
5. Direct consumer engagement: information provision and public relations
should get the tourists involved in the process of exploring the county.
The five domestic travel market segments according to the Domestic
Tourism Growth Strategy
CONCEPTS:
Segment – group of people defined by similar background and preferences.
Segment profiles – The characteristics of segment such as its size average
age of people in the segment, their income preference and travel patterns.
Segmentation -The process of dividing people into smaller groups with similar
characteristics
Objectives- The aims of or goals that need to be achieved
Market-Refers to a region or people that make use of tourism product
Expenditure-Refers to the amount of money spent
Seasonality-Increasing or decreasing according to the seasons and holidays
Peak season-The time of year when more people travel, usually in the school
holiday times and charismas /new year and Easter
Off peak- Time of the year when less people travel -usual during the school
terms or winter
Geographical spread -The number of people that visit an area. People should
visit all areas and not concentrate only on one area
Length of stay-Refers to how long a traveler stay at hotel or destination
It is important that the service providers (role players) know what the tourists
want. They use segmentation to understand the tourists better. Segmentation:
grouping of people according to similar needs and preferences.
Why is segmentation necessary?
Segmentation allows the service providers to:

• Create products that will encourage the segments to travel more and
spend more
 • Do marketing of specific products to the segments through a channel
that the consumers understand.
How does a profile for segmentation look like?

• Race
• Income bracket
• Why they travel
• Kind of travel or holiday experience
• Which types of holidays they prefer
• Which message is used in the market for the segment?

Five Market Segments in the Domestic Tourism Market

Segment plus Picture Information
Spontaneous Budget Explorers 18 – 24 years old
Middle to high income
Disposable income of R5000/month
All races and family situations
5 – 4 nights; 3 trips per year
Spend about R1252
• Travel to discover new people, places and
adventures.
• Travel to get away from daily routines, add
experiences and create fond memories
• Preferences: Weekend holiday filled with
activities, want fun in new and different
surroundings. Like to meet new friends
35 years and older
New Horizon families Middle income group
Disposable income: R 5000-R10000
Black, Coloured and Indian families
Married with children
5+ nights; 3 trips per year
Spend R 1000+
• Travel to educate their children
• Give them the opportunity to broaden their
perspectives.
• Get the opportunity to spend quality time with the
family
• Travel is a reward for hard work
• They will travel more if they can use specials on
flights and accommodation.
 High life Enthusiasts 25 to 45 years
High income group
Disposable income: R10000+
Black, Coloured and Indian singles
Most without children
4.5 nights; 3 trips per year
Spend: R 1200+
• Travel is a way to boost their social status. Like to
experience finer things in life
• Like to do activity filled holidays – not quiet
weekend getaways
• Domestic travel gives them the opportunity to
enjoy invaluable and enviable world class
experiences.
Quick and easy way.
Seasoned leisure seekers 25 to 45 years
Middle- and high-income group
Disposable income: R5000+
White without children
7+ nights; 4 trips per year
Spend: R2000
• Travel is a way of life and a necessity
• Grown up with regular holidays – know the value
of travel experiences and memories.
• Travel is more important than commodities.
Well-to-Do Mzanzi families 25 to 45 years
High income group
Black, Coloureds and Indian
Dependent children
About 6 nights; 3 trips per year
Spend about R 1700
• Travel is a way to escape the city. They can
spend time with friends and family in another
location.
• They travel to expose their children to a different
way of life and activities.
• They will travel more in SA if they can use specials
on flights and accommodation.
• They break away from daily pressures to relax
with family and friends

The DTGS has FOUR objectives (2012 – 2020):

1.Increase domestic tourism expenditure (revenue, income):

The objective is to increase the money spend by tourists.

It will add to the GDP of the country as well as adding to the overall tourism
revenue.

The number of holiday tourists are less than VFR.

Holiday tourists spend more than VFR.

Domestic tourists tend to spend their money on transport, food and

accommodation.

They prefer social activities.

Domestic tourists spend only 2% on visiting wildlife, culture and natural

attractions.

How to increase the domestic tourism expenditure?

• take more trips

• stay for a longer time at the destination
• spend more on average during each trip
• Introduce new products
• Increase business travel
• Effective use of tourism facilities

2. Increase domestic tourism volume (numbers):

This is about the increasing number of holiday travellers as well as the number
of trips that domestic tourists take.

The tourism industry would like to change some of the VFR tourists to holiday
tourists.

How to increase the domestic tourism volume?

More advertising campaigns to raise awareness and to create a holiday travel

culture.

Use different types of media (radio, television, social media and print media) to
get the people to WANT to travel.

Change the interest of the people to go over to action to plan and book a trip.

Encourage repeat visits

Promote short breaks and extended vacations by having packages available.

Have strategies available like the Wild Card (SANParks)

3. Address seasonality and geographical spread:

Domestic travel takes more place during the school holidays.
This is called in season or peak season. Tourism destinations are very busy
during these times and it is a good time for them to generate income.
Unfortunately the opposite happens during the months/weeks when the
schools are open.
Not a lot of tourists will visit them. This is called out of season or off-peak
season or low season.
Some businesses even close down.
The employees still needs to be paid and maintenance should still take place
although only few tourists visit the establishment. This phenomenon is called
seasonality.
How to address seasonality?
Marketing of destinations during the low season times.
Marketing of areas not only specific businesses.
Special rates and packages.
Focus on the groups with very small children (not in school) or older people.
Conference facilities available with cheaper prices in off peak season.
The benefits of tourism cannot only be centralised in the Western Cape,
KwaZulu Natal and Gauteng.
The benefits should be spread evenly across the country – in all the provinces.
The trend is that people travel more in their home province (intra provincial).
Fewer people travel to other provinces. (inter provincial).

How to address geographical spread?

Special rates and packages in the provinces with less tourists
Mega events like music festivals, sporting events or religious gatherings can be
held in the less visited provinces.
There should be all-year round activities and events in the provinces
Develop and maintain facilities and infrastructure for easier access – especially
in remote areas.
Differentiated marketing – focus on specific groups of people, focus
uniqueness of the provinces. Pre and post tours after events – increased
length of stay

4. Establish a culture of travel (habit) among South Africans:

A great number of people do not understand or see the need to travel.
There should be awareness campaigns to motivate people to get away from
home for a needed time of rest and relaxation.
How to establish a culture of travel?
National Tourism Awareness campaign
Support to interprovincial educational tours
Develop and implement tourism awareness campaigns and educational
programmes (HDIs) Train tourism product owners, employees and
neighbouring communities.
Encourage incentives
Have effective tourism information centres
Fundi (equipping local travel consultants and the general public with
knowledge about the country)
Know your Country Campaign – awareness of the country
Responsible Tourism Town – emphasis on universal accessibility.
The DTGS is underpinned (supported) by the following values:
Responsible tourism: Respect for the environment and the local community
Respect for culture and heritage: Culture and heritage of the people involved
in tourism must be protected – for future tourists to enjoy and for the legacy of
the people to go on.
Service Excellence: Personal contact and service excellence is important to
ensure positive feedback that results in repeat visits
Sector transformation: All South Africans should form part of the national
economy (BBBEE Act 53/2003)
Transparency: All people involved should understand the process. This is the
reason why the DTGS is published.
Integrity: It ensures that people are treated fairly, service providers are honest
and do what is right.