Tag Archives: Beach

Tourism is ‘bread and butter’ of Western Cape, says Minister Alan Winde!

The tourism industry in the Western Cape makes up 10 % of the R 450 billion Western Cape economy, says Western Cape Minister of Finance, Economic Development, and Tourism Alan Winde, and thus forms the ‘bread and butter’ of the province.  A large part of the industry consists of small businesses, that need to be ‘professionalised’ to run their businesses as businesses.  The Minister shared that a massive sporting event with tourism benefit is to take place in May next year.

A spontaneous request to have a coffee with Minister Winde, who is known to not stand on ceremony, is friendly and approachable, allows one to call him by his first name, is good on Twitter and offers his contact details if he can assist in a matter, led to an invitation from his office to meet with him in his provincial office in Wale Street.  From the guest list I had to sign, I saw that I was one of three industry operators meeting with the Minister on Monday afternoon, a reflection of his open door policy. The reception room is part office, but felt very homely, like someone’s lounge, and the staff is exceptionally friendly, head of the office Tammy Evans, spokesperson Phumzile Van Damme, and PA Lucille Fester coming to introduce themselves.

The Minister’s office is spacious, with a leather couch, upholstered chairs, and paintings of District Six. It feels friendly and welcoming.  Minister Winde explained his approach to his position is as he would run his business, being responsive, approachable, and accessible, not like politicians that are corrupt, hide in their ivory towers, and don’t care about their electorate, he said.

We talked a lot about Wesgro, and it was a relief to hear that a head of tourism will be appointed, and key tourism positions will be filled due to contract positions not having been renewed when Cape Town Routes Unlimited was closed down and merged into Wesgro on 1 April. The Minister is proud of his plan to place the tourism promotion agency inside Wesgro, as he believes that ‘tourism is business’, and used agriculture as an example of also being included in Wesgro’s trade and investment activities.

We discussed seasonality, not only in tourism, but also in business generally in the Western Cape, and how tourism has a ripple effect on all businesses, every Western Cape business being in the tourism business, even though they may not offer accommodation nor are they restaurants.  Excellent news is that Premier Helen Zille signed off support for a massive 12 km marathon to be held in the province, attracting 50000 runners next May, and to be organised by Elana Meyer.  We shared with the Minister that the Camps Bay Business Forum is looking to attract businesses to the prime beachfront suburb in the winter months, and is planning to host two special events, in May and in September next year.

An interesting concept is that ‘Cape Town is a second city to Johannesburg’, the Minister said, as Melbourne is to Sydney, and Rio de Janeiro is to Sao Paulo in Brazil.  It will always be a beach and holiday city predominantly, yet needs businesses to support and grow the local economy. He mentioned the shocking statistic that only 3% of Cape Town’s income is business related, the rest coming from tourism. ‘Cape Town is a great place in which to do business’, he said, and he is encouraging the growth in conventions, attended by businesspersons. He is proud of the growing multinational call centre industry in Cape Town (e.g. Lufthansa), and it is the home of the oil and gas industry. He mentioned with pride that DHL has set up its Africa head office in Cape Town, while Steinhoff International has opened offices in Stellenbosch. If we had more business in the Western Cape, more businesspersons would fly first and business class, and therefore the Cape Town – London route would be more profitable for SAA, and its axing in two weeks time could have been prevented.  The Minister has challenged Wesgro CEO Nils Flaatten to come up with a plan to fill the Lufthansa flights between Cape Town and Munich (the change takes place in October due to Lufthansa not being allowed to land late at night at Frankfurt airport due to noise restrictions), to ensure that flights are as full as possible, and that Lufthansa retains the Cape Town – Munich route for more than the year that it has committed to.  The Minister would even like to see international tourists use Munich as a hub instead of London, so that they can fly directly into Cape Town, so avoiding having to fly via Johannesburg, even if they are coming from the USA, other European destinations, or Eastern Europe.

Africa is an important continent for business, as it has six of the top ten fastest growing world economies, and hence Wesgro is focusing its energy on the BRICS countries as well as Africa. He dislikes the use of the term ‘Gateway’ to describe Cape Town’s geographic role relative to other African countries, the Minister said, because of its link to ‘gate’, and would rather that the terms ‘platform‘ or ‘springboard’ be used in this context.

The local tourism industry is divided into two extremes, one part being large hotels and tour operators, with organised industry representation, and the other part consisting of many small ‘mom and pop’ tourism business owners, such as B&Bs and tour companies, and not represented at industry level.  The latter need to be ‘professionalised’, the Minister said.  They need skills training in how to run their businesses, how to do marketing, and how to reinvent their businesses. He mentioned a number of examples, such as the parking area blocking the restaurants from the kite-surfing beach in Saldanha Bay, and the Knysna forest having an old-world feel of 30 years ago with little tourist appeal, no operators having seen the business potential in the forest, such as offering yoga and retreats, picnics, unique weddings, and more. One of the Minister’s favourite examples is the West Coast Fossil Park outside Langebaan, which has world-class historical fossils of whales, walruses, sabre tooth tigers, and more, and is highly sophisticated scientifically, but is not from a visitor and tourism perspective. This is set to change, with the R30 million they have received from the Lotto, and the province is also contributing, to create a tourism route.

The Minister is very excited about the idea which he has for an Events app, which will request information of one’s favourite activities (e.g. winetasting), and will communicate with the user in providing information of all wine-related events to be held over the year, to allow the user to book for such events well in advance.  A ‘hackathon’ of tech geeks is to be briefed by the Minister in September, to develop the app within two to three hours.

We ended off our chat about the False Bay Coastal Route, and the allegation levied by the previous Tourism Minister Lynne Brown, of the ANC, of Minister Winde ‘stealing‘ her plans. The Minister has seen no need to respond, given that the plans belong to the Western Cape, and not to a political party. The plan is to develop ‘recreation space’ along the False Bay coastline, to encourage locals and tourists to spend time on the beach, coming for walks, buying something to eat or drink from an informal trader, playing soccer and volleyball, or camping along the beach at new campsites.  It will include the Zeekoevlei eco-park, and the upgrade of Monwabisi, including the provision of security, funded by the Ministry with assistance from the City of Cape Town and the National Tourism department as seed money, to act as a catalyst to attract developers to the area.

The Minister impresses with his hands-on approach to promoting tourism, and having run businesses in tourism town Knysna, he has practical experience of what small businesses need from his department.  The Western Cape is blessed with its dynamic Premier Helen Zille and its savvy Finance, Economic Development and Tourism Minister Alan Winde.

POSTSCRIPT 5/8: Minister Alan Winde announced on 2 August that in the last three years, the Western Cape has attracted 80 international investment projects, to the value of R30 billion, and creating close to 7000 jobs. The projects have come from the United Kingdom, the USA, France, Germany, and The Netherlands, and include companies such as Amazon, IBM, Harley Davidson, ColorMatrix, and Altech setting up in the Western Cape.

POSTSCRIPT 5/8: The ‘multimillion Rand‘ upgrade of Zeekoeivlei to provide braai areas, eco-friendly toilets, and a massive lawn similar to that at Kirstenbosch, has created 100 jobs, and is aimed at enhancing the area’s attractiveness as a tourist destination, reports the Cape Argus. The national Department of Tourism contributed R25 million, and the Western Cape government R1 million, for the upgrade.  The Rondevlei, which borders Zeekoeivlei, has hippos, the only reserve in Cape Town.  The park attracts 130000 visitors annually, and this number is set to increase.

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

South Africa has become ‘high price, low value’ tourist destination!

The annual Tourism Destination Conference, organised by Cape Town Routes Unlimited on behalf of the Western Cape Department of Tourism, on “Elevating our Destination’s Global Profile”, was held in the Waterfront yesterday, and had a sobering message for tourism players – South Africa, and the Cape with it, has become too expensive!   Tourism players were encouraged to relook their rates, and contain their costs, to see how they can offer better value.  Ironically the theme of the Conference focused on global marketing, but more than one speaker encouraged the industry to invest in domestic marketing, rather than international marketing, even at provincial level. 

The Conference was intended to provide “a platform for the tourism industry to engage on relevant topics that could enhance our destination’s competitve advantage to contribute towords industry growth”, Western Cape Minister of Tourism Alan  Winde said ahead of the Conference.  Cape Town Routes Unlimited CEO Calvyn Gilfellan added that “Platforms such as the Cape Town and Western Cape Destination Conference are critical to ensuring that everyone in the industry is working towards a common goal: the enhancement of the Western Cape tourism industry”.

Western Cape Minister  Winde said pertinently that Cape Town is not cheap, and despite the oversupply of accommodation, the resultant effect of the law of demand and supply in leading to lower rates is not evident in the Cape.  He said that a comparative study of hotel prices locally and internationally will be conducted by FEDHASA, the hotel association.  Winde said that the focus of his department’s marketing is to increase the market share of the Western Cape, which has been overshadowed by KwaZulu-Natal.  Africa as a source continent is vital for Cape Town, but there are no direct flights between Cape Town and major African cities, all African tourists having to fly via Johannesburg.  Asked how a region like the Garden Route, which is suffering extremely low tourism numbers, can improve its performance, the Minister encouraged players in regions to work together, to attract tourists, Cape Town residents in particular.  He mentioned the example of Knysna and Franschhoek, who are ‘tourism twined’ now, and are going on marketing trips to Gauteng and to the USA, to benefit both towns.  The recently created Cape Country Meander passes on its visitors to the next towns, and includes Elgin/Grabouw, Bot River, Caledon, Villiersdorp, and Greyton.  The recently signposted Cape Whale Coast route shows how tourism players can work together to share more broadly their tourism success.   Minister Winde said that many players in tourism are insular, and think they are ‘the centre of the universe’.  To meet President Zuma’s goal of 5 million jobs to be created by 2015, the tourism sector would have to grow four to five times.  But he said the responsibility cannot be placed on corporates alone to achieve this goal, and that small and medium sized businesses must show growth, to achieve growth in employment.

National Minister of Tourism, Marthinus van Schalkwyk, encouraged the tourism players to evaluate what Cape Town can do more to allow it to compete with the best in the world.  South Africa had its best ever tourism performance last year, with 8 million foreign arrivals, and a 15 % growth.   Now the country needs to capitalise on the top of mind awareness that was created for it through the World Cup, and meet the goal of 15 million arrivals by 2020, and to increase tourism’s contribution to the economy from R190 billion in 2009, to R499 billion in 2020.  Awareness needs to translate into sales, he said.   Tourism is now one of the six cornerstones of economic growth and job creation, and the success of the tourism industry must lead to the greater economic benefit for the South African population.  Minister van Schalkwyk urged the provincial tourism marketing bodies to focus more on domestic marketing, given the restricted marketing funds.   The Minister indicated that the traditional markets of the USA, the United Kingdom and Europe are the largest source countries of tourism, but are still strongly influenced by the recession.  He highlighted the importance of Africa as a tourism market, showing a growth of 4 – 7 %.  The tremendous potential shown by the Chinese market has been recognised, and direct flights between Beijing and Johannesburg will be introduced by SAA later this year.  SA Tourism will allocate a share of its marketing budget to attract Chinese tourists.  The Minister also said that whilst 50 airlines service South Africa currently, more are needed to fly to the country, so that supply and demand can drive down the cost of flying to this destination.   Airport tax increases were identified as a deterrent to tourism growth.

The biggest challenge that Minister van Schalkwyk threw to the industry was ‘green tourism’.  By going beyond talking about sustainability and biodiversity, and taking the lead in creating low carbon cities, a competitive advantage can be created for South Africa.   “…as the world changes around us, it is imperative that we as a travel and tourism industry in South Africa stay one step ahead.  This will mean challenging ourselves in terms of how we understand the environment, our responsibilities, our markets and our consumers.  It means innovative and strategic thinking in terms of how we plan for the future, as well as the flexibility to adapt to rapidly evolving circumstances” he concluded.

Peter Bacon is an industry player, and was a previous CEO of Sun International, and currently is the Chairman of Cape Town Routes Unlimited and of the Tourism Grading Council of South Africa.   He said that South Africa is doing better than most long-haul destinations in respect of tourist arrivals.   It was good to hear him say that Cape Town is the ‘jewel in the crown of S A Tourism’.   Cape Town does not suffer a decline in demand, explaining the decline in accommodation occupancy, he said, it is suffering from an oversupply of accommodation created by the opening of six hotels in the last two years.   Coupled to this is that corporate demand for accommodation is down severely, as businesses come to grips with their policies on company travelling.  It was Bacon who said that South Africa’s image has changed from being a  ‘low cost, high value’ destination to one that is ‘high cost, low value’.  Overall average tourism spend is down compared to the past, and the average tourist stay is two days shorter.   He urged the industry to package Cape Town ‘beyond the beach’, and to address the poor value image.  He did understand that rising costs, especially those for electricity, make it difficult to cut rates, but South Africa must be competitively priced, and our destination is not!   Bacon also urged that domestic marketing take the foreground.  Bookings are increasingly on-line, and he urged the accommodation industry to be where the bookings are, on Hotel.com, Expedia.com etc.  Cape Town, and South Africa with it, is a world class destination, and its tourism marketing must be aligned.  He also requested event organisers to not program events in the Cape on the same days – e.g. the Cape Town International Jazz Festival, and the Cape Epic taking place this past weekend.  He said: “We need to package our destination and the diversity of its attractions and experience more effectively.  We need to address the value proposition by differentiating South Africa from other long-haul destinations”.

The presentation by Dr Nikolaus Eberl, a branding consultant to the World Cups in Germany and South Africa, was one that attracted me to attend the Conference, but it was disappointing that he went back to the past, focusing largely on the success of the World Cup, and then showed video clip after video clip of Hawaii’s cliff-diving industry, neither addressing the topic of the Conference.  He did remind the audience that South Africa’s World Cup FIFA score of 92 %, 4 percentage points higher than Germany, was an exceptional performance record, and that South Africa could be Plan B to Brazil!   What did make the World Cup such a success was the ‘ubuntu’ of the South African nation, radiating its friendliness and care to visitors and locals alike.  An interesting case study presented was that of the Harley Davidson Club, showing how a ‘brand community’ can be created around a product or service that consumers naturally concentrate around, mentioning the example of the now dead polar bear Knut, who received a world following in the Berlin Zoo.   He talked about creating Brand Ambassadors, which is what visitors to Cape Town become, through word of mouth and social media communication, and this can lead to a ‘brand community’, he said.  

Although the most eloquent speaker, the City of Cape Town’s Pieter Cronje’s talk disappointed in not revealing which other mega events are lined up at the Cape Town Stadium or elsewhere in the city, other than Neil Diamond’s concert in April. He did say that the city would bid for the Olympics, but not for 2020, as Cape Town’s public transport system is not yet ready to handle such an event.  He also indicated that Cape Town has seen an increase in the number of event proposals since the World Cup, which will be good news for the tourism industry if they are staged.   He said what all in the room know already – events create money for the economy, and benefit all tourism players.

With tourism contributing 10 %  to the Western Cape economy it has a significant effect on economic growth and job creation.   The Conference had a contradictory outcome, in that its theme was global marketing, yet its message was one of domestic tourism marketing first.

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

Celebs spotted in Camps Bay

Two celebrities, David Hasselhoff and Orlando Bloom, have been spotted in Camps Bay in the past two days, reports the Life is Savage blogsite.

Orlando Bloom was spotted at Cafe Caprice, one of Camps Bay’s hottest spots, on Sunday, while David Hasselhoff was spotted joining a game of volleyball in a red swimsuit on Camps Bay beach yesterday.   The weekend winter weather has been summer-like at about 26 C.

Camps Bay is one of the most desirable locations for tourists to stay in Cape Town – it has beautiful views, a selection of 25 restaurants, two hotels and a collection of top guest houses and B & B’s, and is 10 minutes to town and 15 minutes to the V & A Waterfront.

Photographs of both stars can be seen at http://mcsavage.wordpress.com/2009/07/20/orlandos-bloom-seen-caprice/

Whale Cottage Portfolio :  www.whalecottage.com

Life’s a Beach!

Cape Town has the largest number of Blue Flag beaches of all cities in the country, six of its beaches receiving the prestigious accreditation.

Nine of the 19 Blue Flag beaches are in the Western Cape, and include Lappiesbaai Beach in Stilbaai, Grotto and Hawston beaches in Hermanus, Bikini Beach in Gordon’s Bay, Mnandi and Strandfontein beaches in Strandfontein, Muizenberg beach, and Clifton 4th and Camps Bay beaches on the Atlantic seaboard, reports the Cape Times.    Four Port Elizabeth beaches have also received Blue Flag accreditation, while all six Durban beaches have lost their Blue Flag status.

Blue Flag status is awarded to 2 585 beaches in 31 countries, and evaluates the safety, amenities, cleanliness, and environmental information and management of the beaches.  The programme is expected to be expanded to the Indian Ocean Islands.