The Board of Cape Town Tourism has diplomatically told the MEC for Finance, Economic Development and Tourism, Alan Winde, that it is not happy to turn back the clock, and support his proposal for a centralised provincial tourism marketing agency, in that this would impact on the running of Cape Town Tourism, and of the marketing of brand ‘Cape Town’.

Last month MEC Winde announced his plan to consolidate Cape Town Tourism and Cape Town Routes Unlimited into one centralised provincial body, and to market one centralised Cape Town/Western Cape brand, which created an outcry, and resulted in a carefully worded statement from Cape Town Tourism (read our blog post).

In a recent meeting between the Chairpersons of Cape Town Tourism and Cape Town Routes Unlimited, and of MEC Alan Winde for the province and Alderman Felicity Purchase for the City of Cape Town, the way forward was discussed between the two parties.  It was agreed that an apolitical body was needed which would not change every time a new politician was elected at provincial or City level.   They also agreed to appoint an independent Change Manager to lead the process of negotiation between the two parties.  Both parties importantly agreed that Structure must follow Strategy.

Given the consultative nature of the process, Cape Town Tourism called a meeting of its members, to inform them of the MEC’s plan, to present to its members its counter-plan, and to hear the industry speak.  It was disappointing to see so few, and so few heavy-weight, members attend.

Mariette du Toit-Helmbold, CEO of Cape Town Tourism, provided background to the process of tourism unification, it not being the first attempt to unite the two tourism bodies.   In 2002 the provincial government and the City decided to unify the marketing of Cape Town, by taking this role away from Cape Town Tourism (Sheryl Ozinsky was the CEO of Cape Town Tourism at the time), through the creation of a Destination Marketing Organisation (DMO), named Cape Town Routes Unlimited.  The role of Cape Town Tourism was to unite seven local tourism bureaus, stretching as far as Somerset West, into one Visitor Information network, with unified Cape Town Tourism branding.  Cape Town Tourism was re-created, with a new Board of Directors and a new Constitution, created as an apolitical industry association, a body for members run by a Board elected by its members, and reasonably independent of the City of Cape Town’s funding, in that it focused on the generation of own-income.

A review organised by the City of Cape Town Mayoral Committee member Simon Grindrod in 2007, and a report full of negatives about Cape Town Routes Unlimited, led the City to withdraw its funding of Cape Town Routes Unlimited, having been a 50 % funder of the body, and gave the body the required one year notice.    In 2008 Cape Town Tourism was appointed to market Cape Town, and it was allocated the monies that would have gone to Cape Town Routes Unlimited, after Cape Town Tourism had asked its members’ support in taking on this role – the industry was unanimous in expressing its support.  This led to a city and a provincial marketing body, each marketing Cape Town, and with overlap in marketing the province as well.

MEC Winde is proposing that tourism marketing for Cape Town and the Western Cape be centralised into Cape Town Routes Unlimited, but that this body change its name.  It would be the primary body marketing Cape Town, and would be largely funded by the City of Cape Town.   This, Cape Town Tourism’s Board believes, is turning back the clock, as Cape Town Routes Unlimited is exactly such a body established six years ago, and has failed dismally.  The MEC wants a single destination marketing organisation, a single marketing strategy, and a single brand (currently it is the mouthful of ‘Cape Town and Western Cape’).   Further, the MEC has proposed that Cape Town Tourism market Cape Town domestically, while the province market it internationally.  Major events should be marketed by the province, and smaller localised events should be marketed by each affected or organising tourism body.  Cape Town Tourism stated that it felt that the MEC’s proposal contained too much emphasis on structure, even though he himself has stated that Strategy should drive Structure, especially given that the MEC has specifically suggested that the Board of the new body be appointed by the Premier and the Mayor, once again politicising tourism marketing.

Cape Town Tourism stated that the implications for Cape Town Tourism of the MEC’s proposal would be as follows:

1.  All marketing policies would come from provincial level

2.   A joint Cape Town/Western Cape brand is not feasible, Cape Town Tourism correctly stating that “Western Cape” is not a brand but a ‘collection of brands’.

3.   Strategy, structures and policies will once again be approved by politicians, given the proposed structure.  The body should be apolitical, and tourism must be protected against political changes.

4.   The province is proposing to only fund the establishment of the new DMO, and is expecting the City of Cape Town to fund all marketing costs, reducing the marketing budget dramatically and adding more administrative costs, reducing the monies available for marketing.

In its carefully worded response to the MEC, the Board of Cape Town Tourism stated that it was important that the marketing of world cities such as Cape Town should be driven by international best practice.  It does not support the establishment of a single DMO, but rather would like to see distinct roles and responsibilities for the two parties.  It was emphasised that Cape Town Tourism does not want to take over the marketing of the province (although many a Cape Town Tourism member would like to see this happen!).

Cape Town Tourism stated that its counter-proposal to the MEC was as follows:

*   create a joint integrated tourism marketing network

*   brands must be managed at local and regional level

*   Cape Town is the key tourism brand in the province, with its own unique identity, and cannot be straight-jacketed into a provincial marketing programme.

*   International best practice shows that successful city marketing is city-driven tourism, based on public/private partnerships.

*   The lifetime value of Cape Town’s ‘customers’ must be harnessed, via Customer Relationship Marketing.

*   Duplication of marketing activity and expenditure must be eliminated.

*   Cape Town Tourism should take over responsibility for the Convention Bureau and Events, two functions sitting with the province, and dominant sources of tourism income.

*   Cape Town Tourism should be the hub of tourism stakeholders, including the citizens of Cape Town.

In concluding the discussions at the Cape Town Tourism member meeting, the members were given an opportunity to state their views.  The tremendous success of Cape Town Tourism in marketing Cape Town and in dealing with the world’s media based in Cape Town during the World Cup demonstrates how successful the body is, and that it should not be re-engineered if it is working so well, the members were told.   Given that both bodies are spending taxpayers’ monies, it is expedient that such money not be wasted by creating a new structure.

POSTSCRIPT 24/8: An e-mail sent to Cape Town Tourism members during the course of today includes the following: “In a new development, the MEC has given his assurance that no decision will be taken on the issue of tourism structures before a tourism strategy for the Province has been agreed, in consultation with key city and regional stakeholders. Cape Town Tourism fully supports this move and will be taking part in the strategic planning process”

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com