While South Africa is well known in the US market for its wildlife, it is not known for its many other offerings. In fact, while American travellers are aware of South Africa as a holiday destination, they feel the country lacks the experiences they are looking for. American travellers are looking for exotic destinations offering rich cultural history and an activity-rich destination that will create a deeper meaning in their life and also educate them.
These were some of the insights Bangu Masisi, SA Tourism US Country Manager, shared with the trade at a market insight workshop hosted by Satsa in collaboration with SA Tourism on Wednesday.
South Africa is also perceived as an expensive destination, while Australia and Kenya are key competitors. Masisi pointed out that Australia currently owned many of the brand aspects in the US that South Africa wanted to be known for, such as wine and food, culture and wildlife.
Because of perceptions that SA is expensive and lacking experiences, SA Tourism is focusing its trade and consumer activities at repositioning the country. The organisation’s consumer pitch is aiming to create “a vivid picture of SA as a cool, safari-plus destination by showcasing iconic, activity-rich experiences that demonstrate value for time and money”. The trade strategy aims to “inspire and educate the trade to promote and sell a range of easy-to-do, safari-plus experiences that clearly demonstrate affordability and value”.
Masisi emphasised that SA Tourism did not want to position the destination as cheap but instead highlight the value for money and the exchange rate. She added that SA’s three- and four-star offering was also exceptionally high because of service levels and the unique experience on offer, which offered Americans “once in a lifetime” experiences.
Masisi added that budget constraints also prevented SA Tourism from placing TV campaigns, although the organisation hosts media to get placement on this platform as well as other media channels.
Another challenge is airlift. Masisi pointed out that airlift out of the US was currently at capacity and another direct flight from a different port would help grow this market. Currently 60% of the market accesses SA from direct flights either on Delta or SAA, while the balance is from hubs in Europe and the Middle East.
While the US is already one of South Africa’s largest inbound markets, Masisi believed there was still a lot of growth potential out of this market. This is despite the fact that upwardly mobile consumers were taking less leave in order to focus on their careers. She pointed out that only 30% of US citizens had passports and that once Americans were shown there was a world outside the US – which is eight times the size of South Africa – they could be convinced to choose South Africa as their next destination. Affordability is key to attracting this segment.
Masisi said repeat business out of the US tended to be good because Americans were usually blown away by their experience of the country. For this reason, she said it was key to attract young travellers who could return with their families later on. She added that there was also great potential in the MICE market.
To read the full presentation, click here.
