Shakespeare asked what is in a name! He must have been referring to the heads of both Cape Town Tourism and Cape Town Routes Unlimited, in both bodies denying that the Cape tourism industry is in ‘crisis’, naively countering that it is only in a little bit in trouble, in facing a ‘tourism slump’!
Cape Town Routes Unlimited sent a ‘CEO Update’ e-mail to its stakeholders a week ago, and wrote that “some captains of industry are theorizing about the ‘crisis’ in the tourism industry”. The poorly written letter also stated that the ‘global economy is mulling over a new potential US debt induced recession’ (my underlining in both sentences)! It then questions (defensively) if the ‘alarmist inclinations’ are in fact accurate, yet lists a number of aspects about the current state of tourism in the Western Cape and South Africa that support exactly what the industry is saying: the tourism industry in the Cape is in crisis!:
* compared to 2008, the current winter performance ‘is perfectly normal’ – this is not supported by any occupancy statistics, and everyone in tourism says that it is the worst winter ever experienced
* there is 20 % more accommodation stock, causing lower occupancy
* the strong Rand makes it more expensive to come to Cape Town
* 70 % of international tourists coming to Cape Town are from ‘recessive economies’, explaining the decline
* Tourism is a ‘luxury item’, and ‘under recessionary economic conditions people tend not to travel’
* High airfares and airport taxes inhibit travel
* Bookings are last-minute, and stays are shorter
* the cost of running tourism businesses has increased, especially in respect of electricity, labour, food, and municipal costs.
* International tourist arrivals are at their highest in 10 years – this is a beauty, and everyone in tourism would disagree!
* SA Tourism statistics for the first three months of this year show growth, but with tourism ‘buy-down’, which is not explained
* ‘Domestic travel, which is very much dependent on the state of the local economy is on the decline; but fortunately we can and are doing something about it’.
Cape Town Routes Unlimited CEO Calvyn Gilfellan summarises patronisingly that all of the factors are ‘partially the product of international economic forces and a correction of supply and demand structure of our tourism industry. I remain optimistic that the tourism industry will begin to show an upward trend closer to the end of the year’! I do not think that any tourism player will take comfort in Gilfellan’s prediction, which is not explained nor justified, and contradicts that of our national Minister of Tourism, Marthinus van Schalkwyk, who said that things will get worse by the end of this year! Once again, the stakeholders are spoken to patronisingly, advising them to price our products ‘responsibly and competitively’, package experiences ‘in a creative and appealing way’, to add value to our tourists’ experiences, and ‘leverage existing partnerships’ (unexplained)! He supports some of what he writes by the greater presence of special offer advertising in print and on-line; and that the industry is marketing to the local market, as well as to Europe, the USA, the Middle East, Africa and Asia. The key sentence, that contradicts everything else he writes is: “Everybody is doing their bit to counter the effects of the slump”. OK, so we have a ‘tourism slump’, and not a ‘tourism crisis’!
Reporting on the recent stakeholder Cape Town Routes Unlimited breakfast held at Sante Hotel, Southern African Tourism Update said that Gilfellan denied that the tourism industry in the Western Cape is in a ‘post-World Cup crisis. ‘It is serious but we should not be alarmist and call it a crisis’ he told the stakeholders. ‘There are people who are doing well and there are people who are struggling’, he added naively. He was reacting to COSATU Western Cape General Secretary and City of Cape Town Councillor Tony Ehrenreich’s recent criticism that the tourism industry is in crisis, as tourists are being overcharged. What is interesting in the report is that Gilfellan told the stakeholders that a slump was to have been expected after the World Cup, but the tourism industry was not told this, and new hotel operators were not warned about the ‘slump’ potential, given the experience of other cities hosting big events, such as ‘South Korea and Germany’. Gilfellan clearly was just grasping at straws, as Germany never suffered a post-World Cup slump! He also told the stakeholders that the government could not interfere in the ‘market-led correction of market forces’. Not mentioned in his stakeholder letter, but emphasised at the breakfast, was that twelve airlines are flying to South Africa this summer and he asked the audience:”Why would they invest if we were doing so badly? They know the situation will correct itself”!
Gilfellan focused the rest of his stakeholder letter on the newly planned Western Cape domestic campaign ‘esCape to the Cape whatever the weather’. We say it is too little, too late. We are in our last winter month. The campaign does not appear to have been launched yet, as the letter says its next edition will provide a ‘complete update on the campaign’. A number of the problems identified by Gilfellan should be addressed by a tourism body such as Cape Town Routes Unlimited: airport taxes (the Airports Company’s Cape Town International head sits on the Cape Town Routes Unlimited Board!), airfares, special deals for tourism players re municipal costs, and more accurate and realistic tourism arrival information!
Cape Town Tourism CEO Mariette du Toit-Helmbold countered the recent Cape Argus front-page article about the Cape Tourism crisis, by denying that things were as bad as depicted, also playing with semantics. Interestingly, the Southern African Tourism Update article headline reporting on the new ‘strategic plan’ for Cape Town, ‘Cape Town Tourism meets slump head-on with new tourism drive’, uses the same ‘slump’ word as does Cape Town Routes Unlimited, and says that its proposed “brand positioning and destination marketing campaign…(will) counter the current slump that has already seen 118 tourism businesses in the Cape to close shop in the past two years and 18000 jobs lost due to lack of growth in the industry since 2007″ ! At the Cape Town Tourism ‘strategic plan’ presentation last week, its Australian strategy consultant Ian Macfarlane told Cape Town Tourism members that there is no correlation between the exchange rate and travel!
It is embarrassing to see Cape Town Tourism and Cape Town Routes Unlimited being so out of their depth that they are just throwing clichés and patronising platitudes at the industry, in an attempt to defend themselves against criticism that they should have predicted the ‘tourism crisis’, and done something proactive about it. It appears far too little too late right now! Cape Town Routes Unlimited continues to be seen as playing a meaningless role in the local tourism industry by most, and its most recent stakeholder letter confirms this perception! The defensive drivel by both Cape tourism bodies once again emphasis how divided they are, seemingly duplicating marketing actions, and what a waste it is to have two bodies marketing Cape Town!
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter:@WhaleCottage
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Dear Chris,
Based on pretty much all your postings about Cape Town Tourism and the woes our industry is experiencing, it is quite clear you are not their biggest fan and cannot say anythig positive about them, or their performance.
From the last 2 postings in particular, you clearly have issues with them and more so, the people involved and leading these organisations. You have had very little if anything, positive to say about the people running these organisations, and more often than not your comments are of a nasty nature.
Clearly you have been to all the recent workshops and presentations and have a very strong opinion with regards to the strategy and the actions that are being taken. I have 2 very simple questions that I would like to ask you directly: –
Firstly, if you are such an opponent of everything that is being done, why did you not speak out when you had the opportunity? The purpose of these events was to gather industry feedback so it seems that in your case, this was an opportunity lost as you did not add any value when you had the chance?
Secondly, what do you suggest or recommend as a solution? For the benefit of your 20,000+ unique blog visitors, can you outline at least 2 or 3 specific interventions that you would propose?
The easiest thing in the world is to criticize and rip into others, but if they are so ineffective, what positive contribution would you make in terms of what we should be doing?
In agreeing with Liz, Cape Town Group, Jason and Jeremy, one of the previous readers alluded to your sidestepping a similar question, to which you responded that you had offered to “sit in discussion with Cape Town Tourism”. Again, why not use the forum that they have proactively provided industry to give feedback? Is it not slightly arrogant to expect them to give you a private audience to gather your expert input? Considering the endless stream of harsh words you have for them, do you think this is even realistic or even remotely productive, of not hypocrytical?
We all have our own opinions and clearly you view Cape Town Tourism as pretty much useless and with a great deal of contempt, but please put your stake in the ground and articulate exactly what you would do in this time of crisis?
Rather than articulating your opinion of the problems (thats the easy part), please share a few solutions with your readers – thats the hard part that we are all looking to answer!
Thank you for the debate, but debate about possible answers is far more useful that getting into the gutter to debate the obvious problems.
Dear Marco
I have allowed your ‘gutteral’ comment, for the sake of the debate.
Let me clarify that I have no issue with the CEO of Cape Town Tourism as a person, and she knows that, having been very supportive of her when she ran the V&A Information Centre many years ago. I do realise clearly, after the presentation, that she has limited marketing knowledge and insight, not ever having worked in Marketing before. I am not ‘ripping’ into anybody. If one is the CEO of a tourism body, one must be able to accept feedback, both good and bad.
Our collective ratepayers’ monies fund the R30 million budget for Cape Town Tourism, and for an industry in crisis, we should have the best possible marketing plan to address this. Cape Town Tourism’s strategy was written before it realised that its members were in crisis, our blog and resultant Cape Argus article highlighting it to them for the first time, and they deny that we are in crisis anyway, as we wrote today!
To answer your questions:
1. You obviously were not at the Baxter session that I attended. I did ask a question about the proposed ‘Inspirational’ positioning for Cape Town, and you will see this recorded in the blogpost of Monday. The answer from Mrs Helmbold showed her lack of marketing understanding. We were not asked for solutions in the meeting. I have seen from the Brand Cape Town workshops, and ones Mrs Helmbold did when Cape Town Tourism took over the marketing from Cape Town Routes Unlimited, that we as members are asked to provide feedback and input, but it is not used.
2. I will state for the third time that I cannot offer any advice until I see the co-called “Strategic Plan”, which we have not seen as members, despite a request to Mrs Helmbold. I have only seen one element of it, being the Vision. We were not given the Mission, Target Market, Objectives, and Marketing Plan in the meeting. Only with this information could I offer any valid input. I have not asked for a private audience at all. Three commenters this week have asked for my suggestions and input, and I said that I would be happy to meet with them. I am not asking for this.
Chris
Thanks you for your reply Chris.
As it turns out, I have attended all the sessions, both the brand workshops and the followup presentations with Mariette and Ian more recently.
I have to add that any half-educated tourism or hospitality person with any sense of a marketing head would be able to see the process and strategy presented is as strong and comprehensive as one would expect in a 90 minute presentation.
Certainly by anyones standard (apart from yourself of course) there was ample content and insight to tick the boxes of those good old 4 Ps of marketing extracted from a marketing 101 course. For many people, it was all there.
Based on this, surely there is enough insight to add any sort of comment of value by way of a constructive idea or solution?
Unfortunately, you seem to have again sidestepped the question and have not provided an answer. On the face of it, you appear unable to actually contribute any form of solution.
I am not trying to be confrontational here with you, but just want to see a constructive solution of any sorts, that you can share with your followers?
Surely someone with your experience and knowledge can at least offer a single idea as to what you would like to see happening to address this crisis we find ourselves in? Saying you canot do this because you have not recieved an actual plan in writing, with all due respect is a cop-out.
Come on Chris, help us out here and share somethig with us, anything!
Regards. Marco
Thanks for your further (boring) comment Marco.
Seeing that you have spent so much time in the presentations (I only attended one of each), I am sure you have the answers.
My B.Comm (Hons) and MBA certainly taught me differently about the content of a ‘Strategic Plan’. A ‘Vision’ alone does not make one!
I am not side-stepping anything, and will not entertain any further debate on offering my input until I receive a copy of the proposed ‘Strategic Plan’. The screen at the Baxter was so small, and so far back on the stage, that we were unable to read the slides.
What has Cape Town Tourism got to lose in handing me the ‘Strategic Plan’?
Chris
What’s with the ‘boring’ comment? Your blogposts and replies are just as lengthy and detailed, if not more so. That was really unnecessary Chris, come on now!
Hi Chris
I would like to know, independently from what CTRU and CTT suggest – how would you market Cape Town in this time and age. With your B.Comm (Hons) and MBA you surely have many great ideas and the success (or not) of your guest houses is an illustration of this. I would like to see what you would regard as a solid marketing plan for Cape Town and the Western Cape.
regards, Kurt
Thank you for your concern Philip.
“Boring’, in terms of asking the same question three times over, and not accepting my reply!
Chris
Dear Kurt
Please refer to my reply to your duplicated question to my blogpost about the Cape Town Tourism ‘strategic plan’.
Chris
Hi Chris,
I am sorry that you did not post me followup response to your comment, for all your readers to see my view on this.
Clearly, others have asked the same question, so for you to say you have answered it, or I have not accepted your reply, is complete spin and not the facts, and I am sure your readers will see not only see this but will also agree.
The fact is, you have not offered any solution or viewpoint that offers anything close to a constructive or actionable idea – this is plain for all to see, including Kurt and Philip.
Come on Chris, stop tapdancing and give us something to work with!
Stop the finger pointing and sidestepping, and offer something of value that your readers can digest and respond to.
Like Kurt has also asked for – leaving CTT and CTRU aside – what would Chris do in this time of crisis? What is your silver bullet? If the tourism authorities are getting it so wrong, what do you suggest?
Regards, Marco
Dear Marco
Your repetitive question is boring. Please read my previous replies to you, Marco and Cape Town Group.
Despite attending all the presentations, as per your comment above, you seem to have forgotten that there are ‘no silver bullets’, according to Cape Town Tourism’s ‘esteemed strategic consultant’ Ian Macfarlane!
Chris
I have read all your responses Chris, but your repetative sidestepping and ongoing tapdancing around the issues are entertaining.
Still nothing of value no matter how many times I read it, so I am gonna give up and stop asking.
I think your readers will agree, your responses lack any form of substance.
Interesting blog.
Many good and valid points are raised.
CTRU is a massive white elephant, exactly like the now disbanded Overberg DMO was.
Hiring Australian consultants is pointless and a waste of money. Who made this silly decision?
The most idiotic statement I have ever heard is that exchange rate does not matter. Exchange rate determines the dollar/euro/whatever price… AND PRICE CERTAINLY MATTERS.
Product owners last year during the WC were more responsible than ANTYBODY else for RIPPING VISITORS OFF.. I had huge arguments with product owners, and heard the most non sensical arguments ever. For example the Mossel Bay Park House lodge charged more than 350% the normal rate, there are various others. I am just remembering the Mossel Bay incident because the price was so ridiculous.. guess what Uruguay moved elsewhere for their training camp! Good one Mossel Bay!!!
As far as the hotel crises is going- after a serious enquiry for fair size multiple night group booking the Newmark group for one, has yet the answer the e mail.. clearly the Cape Town hotels are so busy with their full hotels that they do not have to bother to reply to booking enquiries.
and so it goes on.
and Chris, since when do you need to see any strategic plan to have any idea how to promote tourism to Cape Town. Either you have some ideas or you do not. The so called “strategic plan” is irrelevant.
The question is simple: What do you think need to be done by the Cape Town tourism body to promote tourism?
Dear JP
Thank you for your constructive feedback, and for sharing your views on accommodation pricing, the exchange rate and its effect on accommodation bookings, hotel booking responsiveness (or lack of), and Cape Town Tourism’s wisdom in hiring an Oz ‘strategy’ consultant. I am sure that you were referring to the Cape Whale Coast DMO?
When you challenge me about the promotion of tourism by Cape Town Tourism, your comment is disappointing. ALL marketing is underpinned by a Strategic Plan – without seeing that it would be arrogant to make any suggestions.
Chris
When there is no substance to the boring and repetitive (note the spelling!) comments Marco, then there is nothing to reply to!
Chris
Chris, you playing a your own fair part keeping this debate boring, as you clearly cant, or won’t, answer the question. You keep throwing this back at your readers with your own defensive drivel!
It is not wise to insult your readers’ intelligence.
Even JP above has asked the same question and makes the point perfectly; this “stragetic plan” of yours is irrelevant in asking for your own ideas to be presented as a topic of debate!
As JP has fairly stated: “The question is simple: What do you think need to be done by the Cape Town tourism body to promote tourism?”
I thought I was going nuts, but he has also joined the chorus asking for your pearls of wisdom, which are STILL not forthcoming.
As this is your blog, I guess you got 2 choices:
Either you answer the questions of many; based on the postings above (it is clearly not just myself asking the same thing)
OR, you continue to clearly be ellusive and your credibility takes a knock.
I am a new visitor to this blog, but I am safely asssuming many others agree with this and anxiously await any form of a solution – I believe they expect this from you.
And there I was hoping that you would stop asking Marco, as promised in 11 above!
No amount of nagging or repetition will change my response.
As a new reader, I am really impressed with the amount of time you are spending on my blog. Thank you.
Chris