Page 40 - TKZN Annual Report 2023/2024

Opportunities and Threats Arising from the Performance Environment Analysis
In developing the 2020-2025 Strategic Plan, a PESTEL Analysis was used to assess the opportunities and threats that Tourism KZN would need to either leverage or mitigate in planning towards 2025.
“PESTEL” Analysis: Emerging opportunities and threats which inform planning
Factor
Opportunities
Threats
Political / Governance
• Increased alignment with National Government policy directives and national tourism strategies.
• Increased collaboration with SAT to support the marketing of KZN as a destination.
• Increased collaborations and strengthened partnerships with all tourism role-players
- trade, private sector, local government, particularly CTOs.
• Lack of alignment of planning frameworks at national, provincial and local levels increases potential for lack of integration and alignment of implementation.
• Duplication of efforts between Department and TKZN.
• Policy uncertainty.
Economic
• Position KZN as competitive destination to attract higher visitor numbers and spend (locally and internationally).
• Streamline resources, i.e. budgets for a more focused approach and effective resource allocation.
• Continued shrinking economy resulting in less disposable income for domestic tourists.
• Increased economic pressure on SMME and trade partners (sustainability, maintenance and refurbishment of existing products, etc.)
• Diluted value for money perception in leisure tourism.
• Increased competition from African markets.
• Lack of tourism financial and personnel investment at
local government level
• Lack of awareness of our diverse offerings, and
limited product offerings (e.g. beach resorts)
Social
• Contribute to the transformation of the tourism sector through increased new entrants in sector – strengthened access to markets focus.
• Increased geographic spread of tourism experiences.
• Rural and township tourism product development.
• Vibrant hub city - Durban - South Africa’s most visited domestic tourism city, strong sport events offering.
• Increased unemployment rates, especially amongst the youth (job losses).
• Continued increase in crime and grime.
• Social mobility and economic growth are often
halted by poor and inadequate infrastructure (product development) - Inadequate bankable tourism proposals
• Xenophobic-related violence
• Low levels of funding for SMMEs
• Venue and hotel capacity in areas outside of Durban -
to increase geographic spread).
Technological
• Increased utilisation of available technological developments – mobile app and omni-channel marketing opportunities.
• Embrace management of big data – business analytics platform to strengthen intelligence base.
• Effective use of digital platforms and enhanced digital and social media presence.
• Innovate around digital platforms and better utilisation of platforms to measure impact.
• Financial constraints – investments in staying with the 4IR wave is substantial.
• Increased technologically-enabled disruptions, e.g. Airbnb.
• Increased cybercrime.
38 TOURISM KWAZULU-NATAL ANNUAL REPORT 2023/2024