NATIONAL SPORT TOURISM STRATEGY

First draft September 2012

DRAFT NATIONAL SPORTS TOURISM STRATEGY

INTRODUCTION .................................................................................................................................................3 DEFINITION OF SPORTS TOURISM............................................................................................................. 11 OBJECTIVES ....................................................................................................................................................... 12

Sports Tourism and National Government Priorities ............................................................................................ 12
Economic development ............................................................................................................................................................................... 12 Social cohesion and development........................................................................................................................................................... 12 Political stability ............................................................................................................................................................................................. 13

Sports development ........................................................................................................................................................ 13

SCOPE OF THE NATIONAL SPORTS TOURISM STRATEGY ............................................................... 13 DEFINITIONS OF EVENTS.............................................................................................................................. 15

Sport Events ...................................................................................................................................................................... 15 Sport Attractions ............................................................................................................................................................. 15 Recreational pursuits ...................................................................................................................................................... 15

IMPLEMENTATION STRATEGY .................................................................................................................... 16

Coordinating Fora ........................................................................................................................................................... 16
Sports Tourism Executive Forum ........................................................................................................................................................... 16 National coordinating committee (NATCCOM) .............................................................................................................................. 16

Regulatory issues ............................................................................................................................................................. 17 Research ............................................................................................................................................................................. 17 Institutional arrangements ............................................................................................................................................ 17 Drivers ................................................................................................................................................................................ 17

SOURCE DOCUMENTS ................................................................................................................................... 19 WAY FORWARD............................................................................................................................................... 20

DRAFT NATIONAL SPORTS TOURISM STRATEGY INTRODUCTION Sport has always been an important part of society, but with the global emergence of sports tourism it has also become an increasingly important part of the economy. Consequently, the measurement and evaluation of benefits and costs (economic impact) of sporting events to host destinations and communities have become a focus of increasing interest to a number of groups, including policy makers and sporting officials. Based on the proven economic benefits and impact that sport has delivered to a number of countries, governments worldwide have become increasingly supportive of further investment in and funding of sport. Sports tourism constitutes 5-10% of the total worldwide tourism value, estimated to be between $25-50 billion (DEAT & SA Tourism 2005). In some countries sport can account for as much as 25% of all tourism receipts. Owing to its strong linkages with other industries and its potential contribution to the national GDP, tourism is a valuable industry in a countrys economy. The tourism sectors contribution to Dubais GDP, for example, is 18% - higher than that of the oil sector, which contributes about 17%, according to Ahmed Al Banna, Assistant General Co-Coordinator of Dubai 2003 (The Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund). Sport expands tourism in two ways: firstly, through domestic and international tourists participating in sport or a recreational activity available in a country during their visit and, secondly, through people travelling to a country as spectators or participants in major sporting events. Sport can also be the sole reason for a tourist making a visit. Business visitors may be attracted to a conference not only for business reasons, but also because the conference venue offers sports facilities. The interdependence of sport and tourism has been highlighted and it has been claimed that around 25% of domestic holidays include some sports involvement as the primary purpose of the trip, with 50% of domestic holidays including some form of participation in sport. It has also been shown that major events expand the market of future tourists by attracting to a country some visitors who would otherwise not have visited. In Canada, for example, almost 40% of visiting spectators at the 1988 Winter Olympic Games in Calgary were visiting the city for the first time, and 27% had never heard of Calgary prior to the Olympics (Sport Canada, 2008). This way of attracting first-time visitors can lead to return visits or recommendations to friends or relatives. An individual sporting personality also has the ability to impact the sports economy. According to research carried out for the sponsors of the World Match Play, it was estimated that the presence of Tiger Woods, the worlds number one golfer, in Britain and Ireland for a period of only three weeks in 2006 would boost the golf economy by 170 million, as he would attract tens of thousands of extra fans, boost media coverage by at least 25%, generate millions of pounds through tourism, hospitality and sponsorship, and inspire people to try golf for themselves and join clubs. The intriguing nature of the business of sport and tourism emanates from the fact that it knows no barriers of language or culture, spans every sport imaginable, every age group and every demographic, and includes both those who travel to play and those who travel to watch their sport of choice. However, it should be realised that the relationship

DRAFT NATIONAL SPORTS TOURISM STRATEGY between sports tourism and the social, cultural, environmental and economic environments is constantly changing, and that the success with which these impacts are understood and managed could very well affect the success or failure of prospective sports tourism development. Sports tourists are generally passionate, high-spending, and enjoy new sporting experiences, often stimulating other tourism categories. The direct benefit to a destination is cash the indirect benefit can be years of return visits as tourists. Sports tourism is a tool for achieving many things to make money, create thousands of new jobs and even help change cultural perceptions, for instance in the Middle East, South Africa and, more recently, in Germany where it created a new German identity during the 2006 FIFA World Cup). Sports tourism is a multibillion-dollar business and one of the most intriguing of modernday service industries. The growth of sports tourism has been driven by increased global interest in sporting events on the back of the massive expansion in satellite and digital television coverage over the past 10 years. For example, the 2006 World Cup stands as one of the most-watched events in television history, garnering an estimated 26.29 billion non-unique viewers, compiled over the course of the tournament. The final match attracted an estimated audience of 715.1million people (World Cup and Television, FIFA: 2006). With more leisure time, more disposable income and more cheap travel, sport is no longer just an add-on for travellers in many instances it is the sole reason for travelling in the first place. Sports tourism is one of the fastest growing areas of the $4,5 trillion global travel and tourism industry. By 2011, travel and tourism is expected to account for more than 10% of the global gross domestic product. The economies of cities, regions and countries around the world are increasingly reliant on sports-related tourists. Research (Richie & Adair, 2002) presented to the World Tourism Organisation and IOC Conference on sports tourism in February 2001 illustrated that the three main markets in Europe showed a clear increase in sports-oriented holidays. German tourists accounted for 32 million sports-orientated trips a year, or 55% of all outbound travel, while 52% (7 million) of all trips made by Dutch tourists included a sports component. The British Tourist Board and the English Tourism Council (formerly the English Tourism Board) claim that as many as 20% of tourist trips are directly related to sports participation, while 50% of holidays contain some incidental sports participation. The following table shows how the staging of mega events generates incremental tourism in the games-year, as well as in the years prior and subsequent to the hosting of the event (typically a range of 10 to 15 years). Examples include domestic and international tourism, other local business revenues (e.g. retail), and government tax revenue.
INDUCED BENEFITS TO HOST CITY/COUNTRY (TOURISM DURING, PRE- & POST-EVENT)
MEGA SPORTSEVENT Calgary Winter Games 1988 Lillehammer, Norway 1994 Winter Games IMPACT OF EVENT ON TOURISM The number of annual visitors to Alberta doubled from 500K to 1 million in 1. the 10 years preceding the Olympics 1 Tourism in the Lillehammer region grew by 57% from 1989 1994 . Foreign visitor nights in Norway increased by 43% in the four years

DRAFT NATIONAL SPORTS TOURISM STRATEGY

leading up to the event (from 2,7 million to 3,9 million) . International visitor arrivals increased by 13,1% in 1998; over 350K 2 foreigners visited Paris alone during the World Cup tournament . An incremental 1,6 million international visitors visited Australia between 3 1997 to 2004 . Approximately 850K to 1 million foreign visitors visited Germany to watch 4 the World Cup matches in 2006 .
1

1988 FIFA World Cup France Sydney 2000 Olympic Games 2006 FIFA World Cup Germany

NOTES: 1. Economic Impact of the Winter Olympic and Paralympic Games. Minister of State for Community Charter and 2010 Olympic Bid, Government of British Columbia 2. Reaching Beyond the Gold the Impact of Olympic Games on Real Estate Markets. Lasalle Investment Management, 2001 3. The Olympic Effect: A report on the potential tourism impacts of the Sydney 2000 Games. The Sydney Tourism Forecasting Council, 1998 4. Socio-Economic Analysis of the 2006 Football World Cup in Germany. German Football Association, 2000

By 2006 the tourism industry in South Africa was regarded as the second fastest growing sector in the South African economy (DEAT, 2006). Foreign tourism arrivals to South Africa have grown exponentially since the country became a democracy in 1994. Foreign arrivals in South Africa have increased by more than 100% from 640 000 in 1994 to 7,4 million in 2005 and 8,4 million in 2006 (SA Tourism 2006, 2007). The sport and leisure industry has also grown significantly since South Africas readmission to international sport. More South African teams participate on the international stage than ever before, naturally enhancing sports tourism and related opportunities. The following figure reflects tourist arrivals in South Africa over the fiveyear period leading up to 2003.
SOUTH AFRICAN SPORTS TOURIST ARRIVALS
TOURIST ARRIVALS TO SOUTH AFRICA 1998 - 2003
6,600

CAGR 98 # of Tourists, 6,400 000s

6,200

03

= 2.6%
6,430

6,505

6,000 5,891 5,800 5,872 5,787 5,731

5,600

5,400

5,200 1998 1999 2000 2001 2002 2003

98-01 = 0.3%

01- 03

Sports tourism in South Africa is estimated to contribute more than R6 billion to the South African tourism industry. More than 10% of foreign visitors come to South Africa to watch or participate in sports events, with spectators accounting for 6080% of these

DRAFT NATIONAL SPORTS TOURISM STRATEGY arrivals (SA Tourism, 2006). The long-term outlook for growth in sports tourism in South Africa is expected to be strongly positive and was also identified by SA Tourism as a niche market for potential growth. Following the losses associated with major sporting events in the 1970s, the 1980s saw increasing attention being paid to the economic importance and impact of major sports events in the local economies of host cities and towns, as well as the wider regional effect on the country as a whole. The financial success of the Los Angeles Olympics in 1984 changed the way cities and governments regarded the staging of major events. The economic impact of staging a major sporting event can be significant, especially if the event forms part of a diverse programme of local economic regeneration. However, an events status as a World, Commonwealth or African Championship does not automatically guarantee that it will be an economic success either for the host city or for the governing body staging the event. The scale and type of event, its funding levels and its geographic location are all key factors in determining whether it will be an economic success. The economic impact of sports events can be defined as the net change in an economy resulting from a sports event. The change is caused by activities involving the acquisition, operation, development and use of sports facilities and services, all of which generate visitors spending, public spending, employment opportunities and tax revenue. The hosting of major sporting events brings economic activity and employment opportunities into a host country. Initially it can come from the construction and upgrading of sports venues and facilities, and then from the involvement of sports organisers and the hospitality staff required to host such events. Event-specific benefits can be defined as revenue sources directly attributed and specific to the planning, marketing and delivery of a sports event. Such benefits of mega sports events are significant and may be quantified by evaluating several key variables that drive revenue generation. Examples typically include broadcast rights, global and local sponsorships, tickets and licensing. Other direct benefits come from the use of sports training facilities at the site of the event and in surrounding regions, and from advertising, ticket printing and sales, and food and beverage sales. Indirectly transport, accommodation, bar and restaurant industries also benefit. Although there is general acknowledgement of the economic and social benefits emanating from the staging of major events, the challenge is to demonstrate the tangible values to communities and regions, and to the nation in terms of the multiple returns of every monetary unit invested in sport. Maximising the potential social and economic benefits requires the creative and innovative design, implementation and management of sport systems directed by strategic frameworks with targeted outcomes.

DRAFT NATIONAL SPORTS TOURISM STRATEGY

ECONOMIC BENEFITS OF MEGA SPORTS EVENTS
3 Economic Benefit Drivers

Direct benefits Benefits Event-Specific (1) specific Induced (2) Indirect benefits

Definition

Revenue sources directly Revenue generated by Macro economic impact of attributed and specific to visitors who travel to the hosting the event on the local the planning, marketing, host city/country solely economy, measured in terms and delivery of a Mega mega because of the event of increase in GDP and the sports Event Sports event (includes revenue earned number of jobs created in years prior and subsequent ) to the event to the event ) Broadcast rights Global and Local local (4) sponsorship Sponsorship Tickets Licensing Event organizers organisers Governing body Domestic and international tourism Other local business revenues (e.g. retail) Government tax revenue Local businesses Government Employment resulting from construction, tourism, and eventrelated jobs Multiplier effect of foreign visitor spending

Examples

Key beneficiary

National economy Government

A greater understanding of the broader economic benefits associated with major events and the prospects for additional economic activity coming to a city or region have led to increased competition for staging major events. Staging major sporting events in association with tourism- and leisure-related initiatives further enhances the economic benefits to be derived from sport. Increasingly sports events have also become part of a broader strategy aimed at raising the profile of a city or country, and therefore success cannot be judged on simply a profit and loss basis. Often the attraction of an event is linked to a re-imaging process and/or to strategies of urban regeneration and tourism development. Major events, if successful, have the ability to project a new image and identity for a city, town or region. Although most of the relevant literature and economic studies of sports tourism focus on mega sporting events (World Cups or Olympic Games), the significance of the economic and social success of smaller-scale sports events cannot not be overlooked as every year all over the world supporters regularly travel significant distances to watch their favourite sports. Although these may be at a lower level, they can be of considerable economic significance, particularly when grouped together over a planned period. Given that they require little or no additional infrastructure investment they might be considered as offering great benefit to local communities. Another type of sports activity worthy of consideration is where the participation in sport comes primarily as a tourist trip. North African Countries such as Morocco, Tunisia and Egypt, and other countries including Kenya and South Africa, for example, generate considerable tourism revenue from water-based activities, cycling, jogging, walking and adventure sports.

DRAFT NATIONAL SPORTS TOURISM STRATEGY Sports tourism is a key component of the substantial economic impact derived from hosting a major event like a World Cup or the Olympic Games, and is one reason why cities spend many millions of dollars to attract these tournaments. Even an American Football Super Bowl game, played on a single day rather than over a number of weeks, records economic benefits approaching $400 million to the surrounding region involved. The Australian Tourist Commission (ATC) marketing plan for the 2000 Olympic Games generated the following results: 11% increase in visitor arrivals in 2000 1,6 million additional visitors, spending US$3,5 billion US$2,1 billion in coverage from media and publicity programmes Increased meetings, conventions and incentive travel business 10-year acceleration of Brand Australia 700% increase in traffic to Australia.com website during the Games Greater likelihood of visiting Australia as a result of the Games (88% of visitors to the Games are likely to return, according to ATC research). Following the 2000 Olympic Games, Michael Payne, Director of Marketing, remarked: Australia is the first Olympic host nation to vigorously pursue tourism for the benefit of the whole country. It is something we have never seen take place to this level before, and it is a model that we would like to see carried forward to future Olympic Games in Athens and beyond (Felli, 2004). The Commonwealth Games held in Manchester in 2002 contributed significantly to the economic vitality of the city. In the XVII Commonwealth Games Pre-volunteer Programme: Executive Summary: December 2002, it was concluded that as a result of the Games 6 500 jobs were created; 300 000 additional visitors were attracted to Manchester; 670 million of additional inward investment for Manchester was generated; approximately 250 companies have realised an additional increase of 22 million in their turnover as a result of trade development and supply-chain initiatives linked to the Games; new transport links were put in place; and new neighbourhood facilities and outreach sports programmes were provided. An economic impact study of the Rugby World Cup 2003 (RWC 2003) held in Australia, conducted by URS Finance and Economics (2004), found that RWC2003 generated an estimated AU$494 million in additional industry sales, an additional AU$55 million in revenue to the Commonwealth Government and more than 4 000 full- and part-time jobs during 2003. The total contribution in additional GDP to the Australian economy was estimated at AU$289 million. Major sporting events also provide a country with an opportunity for substantial international media coverage. There are many examples of large worldwide television audiences for particular events, such as the FIFA World Cup Final. In France, football clubs enjoyed the commercial benefits earned at the 1998 FIFA World Cup for many years after the event, with the clubs increasing their gate take by 65% between 1997 and 2001.

DRAFT NATIONAL SPORTS TOURISM STRATEGY In motor racing, the Formula 1 Grand Prix, Montreal, is reportedly broadcast to 130 countries and has a television audience of over 300 million people. Moreover, all major newspapers follow the event, which attracts more than 200 000 people annually, about 20% of which come from outside Canada (14% from the United States, 4% from Europe and 2% from Asia). In some instances countries also benefit from major events hosted in neighbouring countries. New Zealand, for example, successfully marketed its facilities to a number of countries for training in the lead-up to the Sydney Olympics. With the 2010 FIFA World Cup being awarded to South Africa, neighbouring countries Botswana, Lesotho, Swaziland, Namibia, Zimbabwe, Angola and Mozambique have all been earmarked as potential base camps (linked to their unique culture/language offering) for some of the competing teams. In April 2003 Sport and Recreation South Africa (SRSA) conducted socio-economic impact studies on a number of major international sports events hosted by the country. Findings from this and other International papers include: 1995 Rugby World Cup, South Africa As a result of the Rugby World Cup hosted in South Africa in 1995, a growth of 22% in foreign tourism was experienced, a 52% growth from lucrative overseas markets, and a 12% growth from the African continent. The economic contribution of foreign tourism to South Africa (calculated through foreign exchange receipts) was estimated at R8,9 billion. Tourism increased by 9,4% from 1995 to 1996, after the Rugby World Cup. The successful staging of the 1995 Rugby World Cup in South Africa also provided a significant boost to the conference market. 2003 Cricket World Cup, South Africa South Africa successfully staged the 2003 Cricket World Cup, attracting a large number of visitors from Australia, England and India. The event generated considerable revenues from television sports broadcasting and sponsorship deals and extensive television coverage providing for effective advertising of South Africa as a tourist destination. A study on the impact of the Cricket World Cup shows that the economic impact of the tournament in terms of South African economic activity was estimated at R2 billion. The estimated economic impact of the Cricket World Cup in terms of net foreign spending in the country was R1,1 billion. Altogether 3 500 jobs were created and some 20 000 foreign visitors came to the country. Significant social benefits were derived from this event, including making the game more accessible to the entire population, benefiting companies with solid black empowerment credentials, and social upliftment in previously disadvantaged communities. Indian Premier League (IPL) in South Africa - 2009 The IPL was successfully hosted in South Africa at very short notice. This tournament brought many benefits for South Africa across the board. It was watched by a global
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DRAFT NATIONAL SPORTS TOURISM STRATEGY audience, and brought a total spend in South Africa of about R1,5 billion. It was a huge boost for tourism during the international down-turn, bringing in 25 000 hotel room nights and 6 000 flights over the 40-day tournament. More than 800 000 people watched the 59 games at the eight stadia throughout South Africa, with 40% of this audience watching cricket for the first time. The TV ratings were 11% higher than the inaugural tournament in India in 2008. The hosting of the tournament in South Africa also further cemented sporting, trade and political ties between South Africa and India. 2010 FIFA World Cup South Africa A study conducted by the University of Pretoria (based on a Computable General Equilibrium modelling approach), concluded that the contribution to real GDP is estimated to be in excess of R10 billion, with thousands of jobs being created by the construction of new venues and upgrading of existing infrastructure. This improvement to the infrastructure of the country, especially the transport sector, will benefit productivity in the longer term and further increase GDP (Bohlman & Heerden, 2005). An economic impact assessment of South Africas 2010 FIFA World Cup Bid done by Grant Thornton in 2003, and the Inspection Group Report on the event, found that the staging of the World Cup in South Africa will create significant direct and indirect economic benefits for the countrys economy. According to updated data, the 2010 FIFA World Cup will have a greater impact on the South African economy than previously thought, with Grant Thornton now estimating that the event will contribute at least R51.1 billion to the country's GDP. The original estimate was R21.3 billion (Grant Thornton, 2003). Within this new estimate the report indicates that R15.6 billion of this impact will be brought in by foreign tourists. The revised estimates of the impact of the World Cup on the economy include direct expenditure of R30.4 billion, up from the initial R12.7 billion. According to the paper, this additional GDP contribution will sustain the equivalent of 196 400 annual jobs, some of which already exist. The initial increase in Government revenue from taxes by an additional R7 billion is also expected to further increase by a similar ratio (Grant Thornton, 2007). According to Grant Thornton, the economic impact was based on 289 000 overseas visitors watching three to four matches each and 48 000 African visitors watching three matches each. About 115 000 domestic tourists will watch two matches each. Calculations are based on a stay of 15 days because foreign tourists are not expected to stay for the month-long tournament. The diversity of South Africa with respect to geography, history, climate, mineral and bio resources, ethnicity and current tourist levels, collectively and individually presents significant opportunities for a range of different combinations and permutations that can and will make for unique sports-related tourism experiences. The shaping of these experiences are limited only by the creative and innovative ability of the people and agencies involved, their commitment to deliver and the effective alignment and overall management of the sport system in the country.

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DRAFT NATIONAL SPORTS TOURISM STRATEGY South Africa has demonstrated its capability of staging major events, ably supported by the willing assistance of many volunteers and support from Government. Even though South Africa has successfully hosted numerous major sporting events, it is imperative to have a pro-active strategy aimed at hosting more major international sports events post 2010. The investment made by the South African Government for the 2010 FIFA World Cup needs to be sustained. The macro-economic impact of sport as a dynamic and fast-growing sector may be persistently underestimated, mainly due to statistical and methodological shortcomings. However, measuring either the economic or the social impact of sport is not a straightforward process. Major events require investment and often this is paid for, in part, by Central Government or even international sports bodies. Some of the investment expenditure therefore represents a net addition to the local economy since the money comes from outside. Problems may arise because of the tools being used to measure the economic impact of the overall sport system or the activities to which they lead. Different models can produce different values, which emphasises the need for well-defined measurement systems on which to base strategies and decision making. In addition, the structure, coordination and alignment of component units within a sport system will also have an effect. Without an integrated and strategically guided sport system the economic and social value of the system will be reduced. DEFINITION OF SPORTS TOURISM This is never an easy issue to agree upon, but we need to consider it in the context of the sporting environment of South Africa and its government priorities. We also need to take into account how other countries are defining Sports Tourism. The terminology used in the NSTS needs to be standardized throughout the South African sporting and tourism sectors. Sports tourism refers to collaboration between the sports industry and the tourism industry to the ability to maximize the mutual benefits to both sectors. Sport and recreation is an important part of society, and the global emergence of sports tourism has become an increasingly important part of the economy and its contribution to a countrys GDP. Sports tourism is a multibillion-dollar business and one of the fastest growing areas of the global travel and tourism industry. However, maximizing the potential social, economic, environmental and political benefits requires the creative and innovative design, implementation and management of a national strategic framework. After South Africas re-entry into international sport, sports tourism performed exceptionally well in terms of percentage growth. SRSA acknowledges that sports tourism is one of the fastest growing sectors in the South African economy with proven economic benefits as well as having a positive impact on the country in general. Although the focus of sports tourism is more on mega sporting events (World Cups or Olympic and Paralympic Games) the significance of the economic and social successes of smaller-scale sports events cannot be overlooked. Although these may be at a lower

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DRAFT NATIONAL SPORTS TOURISM STRATEGY level, they can be of considerable economic and social significance. In addition they offer a powerful incentive to market destinations. Given that they require little or no additional infrastructure investment they might be considered as offering great benefit to local communities. According to the World Tourism Organization sports tourism is defined as travel outside ones usual environment for the primary purpose of active or passive engagement in high performance sport or recreational sport. This type of tourism can be further desegregated into the following three groups: 1. Event tourists those tourists who travel as a spectator or as a participant in an organized sport event, examples include the Currie Cup or the Comrades Marathon. 2. Sport attraction tourists those tourists who travel for sport-related purposes not related to spectating or participating in sport activity. Examples here include traveling for sports science programme and to visit sports stadiums or sports museums. 3. Recreational sport tourists those tourists who travel to spectate or participate in leisure sport activities such as to a golf resort or for mountain biking. OBJECTIVES Acknowledging that the benefits of sports tourism are considerable there are two primary objectives for SRSA to support sports tourism. Firstly, sports tourism enables SRSA to use sport as a medium to contribute towards national government priorities, and secondly it fosters sports development. Both objectives fall within the mandate of the national department. Sports Tourism and National Government Priorities The significant contributions of sports tourism extend to support the following three national government priorities: economic development; social cohesion and development; and political stability. Economic development Hosting mega and major events in South Africa has the following benefits: 1. 2. 3. 4. 5. 6. 7. It boosts investor confidence. Jobs are created and human resources are up-skilled. Direct and indirect spend is a catalyst for further economic development. Donor and sponsor funding is channeled internally. The potential for subsequent legacy funding exists. Events hosted successfully provide unparalleled marketing exposure. Mega and major events often require substantial infrastructure development. This is broader than just sport facilities and includes transportation and communication networks.

Social cohesion and development

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DRAFT NATIONAL SPORTS TOURISM STRATEGY Equally important to economic development are the significant social benefits that emanate from sports tourism. These include: 1. 2. 3. 4. 5. 6. 7. 8. National pride A healthy nation Using sport for development Broad community development Combating social ills Impacting positively on the youth The potential for sustainable legacy programmes The prospective opportunity to lobby for the staging of events in non-traditional areas.

Political stability It has been argued that sports tourism is the most important sign of political stability and social prosperity for a country resulting in internal continuity of the power within the country and consequently attracting special attention in the world. Developing sport tourism to consolidate peace, friendship and sport globalization, as well as strengthen and strive for national identity should be considered the ultimate goal of sport tourism development. Sports development In terms of sports development, sports tourism can be a catalyst for: 1. The development of the specific sporting code, both in terms of capacity building (of athletes; officials, volunteers and event organizers) as well as in terms of enriching the volunteer/human resource database. 2. Increasing participation in the particular code. 3. Establishing role models for the sports code. Objectives of the National Sports Tourism Strategy 1. To provide a national strategy that can guide, integrate and consolidate efforts within this sector. 2. To define the institutional relationships necessary to implement the strategy. 3. To provide direction on the prioritization of key mega events that South Africa should bid and host. 4. To provide direction on the prioritization of domestic events that Government should support. 5. To outline the type of support to be offered by Government. SCOPE OF THE NATIONAL SPORTS TOURISM STRATEGY The national sports tourism strategy will encompass guidelines for the bidding and hosting of major sports events in South Africa. To avoid potential risks and to maximize

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DRAFT NATIONAL SPORTS TOURISM STRATEGY benefits for the country, SRSA will take the lead in updating these guidelines. These guidelines will include criteria for bidding and hosting as well as an events roster detailing approved as well as proposed events. The hosting of major events in the past provided South Africa with vast opportunities to market our rainbow nation whilst the events also resulted in economic and social development. In future there will be many other international hosting opportunities for our country. Even though South Africa has successfully hosted numerous major sports events, it is imperative to have a pro-active plan aimed at hosting major international sports events post 2010. The investment made by the South African government for the 2010 FIFA World Cup needs to be sustained. The strategy also needs to take into account those visitors to our country who are primarily tourists, and partake in some or other sporting activity. As the leading Department, SRSA will need to encourage and further develop amicable relations with the Department of Tourism. SRSA will need to increase its efforts to explore the benefits attached to sports tourism. In this regard SRSA will focus on the following areas: Sports tourism research. Strategy and policy development to provide national guidance with regards to sports tourism. Bi-lateral and multi-lateral international sports agreements that could have an impact on sports tourism. Cooperation with SASCOC and NFs. Use sport to position SA as a sport tourism destination. The exchange of expertise and information. Initiatives to maximise the benefits of sports tourism. Organising of workshops/seminars/conferences on sports tourism. The marketing of South Africa as a sports tourism destination of choice. The identification of world best practices in the field of sports tourism.

SRSA will provide support to National Federations from a Government perspective in the bidding for and hosting of approved major events in the country. This will include the coordination of inter and intra-government support required for hosting such events. There may also be merit in considering the development of a mechanism to assist the smaller sports to bid for and host events. In this way broad expertise can be developed, smaller sports can be assisted to promote themselves domestically and top competition can be obtained without the costs of sending teams overseas. International events inevitably require Government involvement and the bigger the event, the greater the Government involvement is likely to be. It is therefore imperative that no NF should bid to host international events in South Africa without the cooperation of SRSA.

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DRAFT NATIONAL SPORTS TOURISM STRATEGY DEFINITIONS OF EVENTS Similarly in the definition of sports tourism coined above, the events can also be categorized into three distinct areas, namely sport events, sport attractions and recreational pursuits. Sport Events In terms of the definition above these events relate to the event tourists who travel as a spectator or as a participant in an organized sport event; examples include the Currie Cup or the Comrades Marathon. This will include international mega events, international major events, other international events, continental events and domestic events. Mega-event This is an event of international importance that involves political decisionmaking and the strategies of our government. It should include events such as the Cricket and Rugby World Cups, Olympic and Paralympic Games, and Commonwealth Games, etc, and should be able to draw major television audiences and broadcast rights. Most important is the impact on the economy of the country, as well as the contribution to the skills and job market / temporary employment that need to be taken into account. These events should have to go through the extensive bidding processes as set out by the International Federation, IOC, etc, or can be awarded on a rotational basis. Major event This is an event of national (and possibly international) importance, and should include FINA Swimming World Cup, Triathlon World Cup Series, UCI Cycling World Championships. There should be some television coverage (delayed or packages). These events are sometimes awarded through the bidding process or on a rotational basis, but this is done on a smaller scale to a Mega Event. Other international events This will include federation events such as the Judo Junior World Championships, World Angling Championships, and private/commercial events such as the Comrades Marathon, Two Oceans Marathon, Argus Cycling Tour, Billabong surfing. Continental Events This will include events such as the All Africa Games, AFCON, Zone VI Games as well as private/commercial events such as the Roof of Africa. Domestic Events This will include events such as National Senior Swimming Championships, and private/commercial events such as the 94.7 Cycle Challenge, and Spar Ladies Challenge. Sport Attractions These refer to attractions related to sport such as sport congresses, travelling for a sports science programme, or visiting sports stadiums or a sports museum. Recreational pursuits These events include includes those tourists who travel to spectate or participate in recreation activities such as to a golf resort or for mountain biking.

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DRAFT NATIONAL SPORTS TOURISM STRATEGY

IMPLEMENTATION STRATEGY The implementation of the Sports Tourism Strategy requires attention in the following five areas: 1. 2. 3. 4. 5. The establishment of two coordinating fora A review and possible amendment of specific regulatory issues Sustainable research The formalization of institutional arrangements Support for key sports tourism drivers

Coordinating Fora The following coordinating fora need to be established: Sports Tourism Executive Forum Members: o National Treasury o DTi o SALGA o COGTA o SRSA o SASCOC o BUSA o Dept of Communication o Dept of Home Affairs o Dept of Tourism Core functions of the Sports Tourism Executive Forum o Formalise institutional arrangements o Secure funding commitments o Determine major events calendar o Sanction government guarantees when applicable. National coordinating committee (NATCCOM) There is a need for a coordinating mechanism to ensure that there is no duplication or conflict in bidding for events. This should include the tourism industry. Without national guidelines, the risk exists that sporting codes will compete against each other; provincial and local Governments will bid independently and the national Government will be asked to bail out organisers when things go wrong and financial shortfalls occur. Members: o Foreign Affairs o Dept of Transport o Dept of Tourism o IMC o SASCOC o SRSA

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DRAFT NATIONAL SPORTS TOURISM STRATEGY o o o o o SAPS Health Home Affairs SARS GCIS

Core functions of NATCCOM o Provide government support to major events o Action government support at relevant levels of government, depending upon the event requirements. o Implement government guarantees Regulatory issues With regards to regulatory issues we need to evaluate whether our existing legislation and policies enable or hamper sports tourism. We require a legislative environment that is conducive to promoting South Africa as a preferred sports tourism destination. A review of the following is required: Visas Customs Bidding & Hosting Regulations (need to be updated) Bidding & Hosting Guidelines Broadcasting (Dept of Communications) ICASA regulations Taxation (SARS)

Research Data collection Register of events Feasibility for SA to host Post event evaluation SEIM Institutional arrangements Funding commitment Govt vs. Corporate/Sponsors Roles & Responsibilities Drivers Sports Tourism Plan 2013 2030 (to align with NDP) Lobbying for key positions internationally Ekhaya Marketing drive o Marketing South Africa as a sporting destination SAT offices internationally IMC SA missions abroad (DIRCO) Trade Missions o Media

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DRAFT NATIONAL SPORTS TOURISM STRATEGY Bidding and Hosting for major events The National Sports Tourism Strategy needs to be supported by a comprehensive major events implementation plan. These events can be selected according to both objective and subjective criteria before being further filtered by four filers as listed below: Objective criteria Government support Legal issues Public opinion General transport & infrastructure Venues & athlete infrastructure Environmental conditions Accommodation Safety & security Previous experience Budget & financing Subjective criteria Concept of the bid Marketing & communication Lobbying Filters Sport or Geographic Constraints Strategic Coherence Impact Feasibility

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DRAFT NATIONAL SPORTS TOURISM STRATEGY SOURCE DOCUMENTS Sports Tourism - Strategy & business plan (Info & Research unit) MOU: SRSA & Dept of Tourism South African Tourism research Strategic & Exec support - draft policy Bidding & Hosting Regulations Safety at Sport and Recreation Events Act (No.2 of 2010) National Social Cohesion Strategy SASCOC Bidding & Hosting (applications & approval) Australian Sports Tourism strategy National Tourism Sector strategy - DOT Sports Business: Sports Tourism strategies for successful development Host Cities Guide - Sportcal Major Events Guide - Sportcal Prof Kamilla Swart - Towards developing a National Sport Strategy in South Africa beyond 2010 2012 World Cup Research - Prof Bob and Prof Swart Beyond the World Cup - measuring intangible event and brand impact Golf Tourism Why Host Events - Grant Thornton How to leverage a successful sporting events - Nanita Ferrone Legacy - lessons learnt from 2012 FIFA WC - Danny Jordaan Building Sport Tourism and Event Portfolios - Middle East - Dr Alrawadieh and Dr Johnson SETE notes - Dr Platzky Athletes as Tourists - 2007 to 2011 FISU Unviersiade - S Berber, D Turco, D Papadimitriou Session 1 - Building Sport Tourism and Event Portfolios - Key Success Factors Kruger Heath BMI presentation - D Sidenberg Sport as a destination branding platform - Brendon Knott Sport and Events Tourism Exchange - Derek Casey World Tourism Organization Sports Travel Magazine Various articles by sports tourism experts Papers presented at the 2011 Sports & Events Tourism Exchange (SETE) Conference Havas Sports & Entertainment Research on Bidding & Hosting Events in SA SA Tourism research http://www.academicjournals.org/jhmt/pdf/pdf2011/Jan/Homafar%20et%20al%20%2 0pdf.pdf

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DRAFT NATIONAL SPORTS TOURISM STRATEGY WAY FORWARD Distribute draft strategy to SETE delegates via SRSA webpage integrate comments received. Update document with 2012 SETE with papers presented. Further stakeholder consultation. Finalise National Sports Tourism Strategy and draft Cabinet Memo for approval.

Comments to : nicola@srsa.gov.za before 31 October 2012 please.

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