Tag Archives: brand Cape Town

Tourism Business Confidence continues downward slide!

The Tourism Business Council of South Africa FNB Tourism Business Index continues its downward trend, the reading for the second quarter showing a decline to 74,5, from 79 in the first quarter of 2011, and 89 in the last quarter of 2010, the first time that the Index was introduced, reports Business Report.  An Index of 100 is one of normality.

What is scary is that the tourism industry representatives interviewed in the first quarter of this year anticipated an increase in the Tourism Business Index for the second quarter of 94 – instead the Tourism Business Index fell by 20 points!   May and June were two extremely depressed tourism months, and a slight pick-up in accommodation bookings is being experienced at the moment, in part linked to the almost spring-like weather that the Cape experienced in the last two weeks.

The Tourism Business Council said that “Business in the travel and tourism sector continued to operate under heavy strain in the second quarter of 2011.  “When compared to the expected industry performance index of 94,1 for the second quarter, the industry performed significantly worse than expected …”.  The Council blames low international arrival numbers, low domestic leisure and business demand, the strong Rand, rising costs, changing travel patterns, high fuel prices, and the large number of public holidays “that failed to deliver the expected travel spend on domestic travel” as the major reasons for the poor confidence in the Tourism Industry. We wrote an Open Letter to national Minister of Tourism Marthinus van Schalkwyk last month, to share with him how poorly the tourism industry is doing, when he was communicating information that reflected the opposite! 

The Tourism Business Index is a national measure of current and future performance of the tourism and travel industry, and sub-sectors within the sector.   Looking ahead, the Index ‘forecast’ for the third quarter of this year is 81.  However, accommodation establishments forecast the Index at only 74, meaning that they see no improvement in business between the second and third quarters.  The Southern African Tourism Update writes that it is hotel groups who hold the particularly negative view of business performance in the next quarter.

It is sad to see how out of touch the Tourism Business Council is in not recognising the negative impact of international and domestic airfares on tourism to the Cape.  After sending out our WhaleTales newsletter last week, we received numerous responses from our past guests about the high airfares to Cape Town, and these were cited as the reason why past guests will not return to our city.  We passed this information on to provincial Tourism Minister Alan Winde, Cape Town Tourism CEO Mariette Du Toit-Helmbold, and FEDHASA Cape Vice-Chairman Rey Franco, but have not received any acknowledgement of receipt or comment in terms of intended communication with airlines from any of these tourism body representatives!

At a joint meeting of Cape Town Tourism, FEDHASA Cape, SACCI and SATSA yesterday afternoon, to address the poor tourism industry performance in the Cape, it was astonishing to hear that the Cape Chamber of Commerce, which has indices for manufacturing, construction, agriculture, and mining in the Western Cape, has no measure of the performance of tourism in the Western Cape.  When asked about the provincial performance of Tourism, the national Tourism Business Index was referred to.  Given that Tourism is the largest business sector of the Western Cape, one would hope that the Cape Chamber of Commerce will address this information shortcoming urgently.   Cape Town Tourism’s presentation at the meeting was disappointing, as it was about ‘Brand Cape Town’ yet again, despite many industry stakeholders having seen it already.  Even more surprising is that Cape Town Tourism is sticking to its new positioning of ‘Inspirational’ for Cape Town, when this positioning is already owned by Edinburgh and Korea, even more surprising when Mrs Helmbold emphasised that differentiation is key in marketing, especially in tough times! 

POSTSCRIPT 21/7: A very frank letter is addressed to the tourism industry today, by Tony Romer-Lee, the GM of The Collection by Liz McGrath, on the Hotel & Restaurant online site.   He spells out how shockingly bad business is in the tourism industry.

POSTSCRIPT 21/7: The headline of the Cape Argus this afternoon shouts: “Cape Tourism: ‘We are bleeding’, quoting from our Open Letter to the national Minister of Tourism Marthinus van Schalkwyk.  The article also quotes Tony Romer-Lee’s article mentioned in the Postscript above, in asking why “…occupancies across the board are the worst they have ever been?  That thousands of waiters, room attendants, middle managers and hospitality graduates are unable to find work and losing their jobs?”  Why is that owners are closing their businesses and banks are calling in their debts.  Why is that speculators like Protea hotels are announcing that they are looking to buy hotels in distress?  Without doubt every single hotelier or restaurateur will tell you that they have never seen it so bad.  They will also tell you that the outlook for the next couple of years also looks bleak”.  Provincial Tourism Minister Alan Winde is quoted as saying: “Definitely there is a sombre mood out there – there’s no doubt we are really feeling the pinch in all tourism-related industries.  But then again, we’re feeling the pinch in all industries”. Winde suggests three ‘urgent remedies’: more aggressive marketing of the good value Cape to Gauteng – the Cape used to be second largest domestic market, but has dropped to 4th place; more aggressive marketing to core markets to counter Greece attracting business from the UK, USA, and Europe away from South Africa; more work on seeking the benefit of now being part of the BRICS alliance.   Naively FEDHASA Cape Chairman Dirk Elzinga clings to his belief that the problem experienced in the tourism industry is merely one of seasonality.  He says: “But, yes, occupancies in hotels are very low. Most hoteliers are saying they have not experienced such low occupancies for a very long time.  It is not happy times out there”.  Elzinga referred to the joint tourism association meeting which was held yesterday afternoon, and said that the industry expressed its criticism of the lack of co-ordination between Cape Town Tourism, Cape Town Routes Unlimited, and SA Tourism in marketing Cape Town ‘to the world’!

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

Cape Town: City of Inspiration to work at addressing challenges in attracting business!

Cape Town Tourism has been conducting a series of ‘Brand Cape Town’ workshops since late last year, to share with its members as well as bloggers and other stakeholders what the outcome has been of a brainstorming session to find a positioning for Cape Town and what it can/should be, and to focus its marketing activities, not only from a Tourism perspective, but also from a general Business approach. 

Scanning the external environment, it identified threats such as the economic crisis, global urbanisation, and a greater consciousness about the impact of flying on the environment and climate change.  It also faced the reality that the seasonality in Cape Town’s tourism industry, unique to our city compared to others in the country, reflects that Cape Town does not have enough business tourism, being the result perhaps of too large a focus on Leisure Tourism in the past, and too little on attracting businesspersons to have their meetings, events and conferences in Cape Town.  Comparing the positioning of major world cities, e.g. Paris is Romance, New York is Energy, London is Tradition, it has historically been Beauty for Cape Town. Through its analysis, it was identified that the positioning of Inspiration is an overarching one that can position Cape Town beyond its more narrow tourism focus, to a broader one, reflecting the strengths of the City in respect of beauty, freedom, innovation, hope, creativity, diversity, dreams, ideas, and solutions to problems.

We have been critical about what we have seen in print about the Brand Cape Town workshops, but a completely different picture emerged in the presentation, which I was invited to attend last week, the last in the process of sharing the outcome of the brainstorm, and in obtaining input to the content of the branding and marketing debate.  To justify the positioning of Inspiration, Cape Town Tourism CEO Mariette du Toit-Helmbold took the attendees through the various ways in which Cape Town inspires its citizens, its local visitors, and its international tourists.  It was an inspiring presentation, and afterwards I felt proudly Capetonian in having learnt a lot more about the achievements of our city and its people.  The following were some of the Inspiration highlights identified for Cape Town in the presentation:

*   Nelson Mandela took his first steps of freedom in Cape Town, and Cape Town should own this historic moment

*   quality education facilities, with four top class universities in Cape Town and Stellenbosch.  Stanford has set up a satellite campus in the city, and Harvard is said to follow suit.   UCT had been voted top university in Africa, and best value for Money MBA in world in a Financial Times survey

*   safe CBD

*   excellent and modern infrastructure, including the airport, the IRT bus system, the station, highways, and the Cape Town Stadium

*   ‘cosmopolitan entry point into South Africa and Africa’

*   Focus on Biodiversity, with the smallest but most bountiful floral kingdom.  Kirstenbosch has won gold or silver for the past 33 years at the Chelsea Flower Show in London

*   Excellent healthcare facilities, with pioneering medical leadership, including Dr Christiaan Barnard’s heart transplant world first

*   One of best value guest house and B&B cities, offering not only 5-star accommodation

*   An historic port city

*   The V&A is South Africa’s leading tourist destination, and has further development plans

*   The Green Point Urban Park

*   A living heritage in the Castle, the oldest building in South Africa

*   A historic showcase of creativity at the Iziko museums and galleries

*   Living contemporary culture with African and European roots, which is not gumboot dancing!

*   Rich music tradition, in goema and Cape Minstrel music, but also current, with Goldfish, Jack Parow, Freshly Ground, Kyle Shepherd, Locnville, Die Antwoord, and Abdullah Ibrahim.  The Cape Town International Jazz Festival has become a world event.

*   Sporting tradition, in hosting the world’s largest timed Argus Cycle race, and the Volvo Ocean Race includes Cape Town, and sportspersons such as Para-Olympic star Natalie du Toit, and the development of the paddleyak

*   A theatre tradition, with Athol Fugard receiving a Lifetime Achievement award at the Tony’s for his plays

*   Africa’s first billionaire and space traveller Mark Shuttleworth, and his Shuttleworth Foundation, supporting IT development.  Development of Silicon Cape.

*   Sustainability Institute of the University of Stellenbosch

*   The Cape Town International Convention Centre is the leading convention centre in Africa

*   The leading builder of twin-hull catamarans

*  The favourite film and photography location, because of the beauty of and good light in the city, and the potential of a James Bond movie being shot in the city

*  Nobel Peace Prize winners such as Archbishop Desmond Tutu and Past President FW de Klerk

*   Table Mountain, which is a finalist for the New7Wonders of the World

*   Visits by magnificent Southern Right whales, home to penguins

*   Environmentally-friendly Green Cabs, and the opening up of cycle and pedestrian routes in the city 

*   Leading environmental and sustainable city, with all new low-cost housing built with solar geyser panels, and wind-farming in Darling.  ‘Smart Living Handbook’ for sustainability written by City of Cape Town 

*   Three wine routes within Cape Town and 16 on the city’s doorstep, with many boutique wine farms

*   Beer tourism is a new segment, with 40 micro breweries within a 2-hour drive of Cape Town.  Inspiring new BOS ice-tea 

*   Fresh produce markets, with organic foods, outstanding restaurants such as The Test Kitchen and Mzoli’s Meat define Cape Town, and the plan is to develop a Master Chefs Cape Town series.   Having Justin Bonello showcase South African food is a boost for the city.  Charly’s Bakery is a passionate, all-women team, who baked a cake representing Cape Town for the Design Indaba.

*   Cape Town is one of three finalists for World Design Capital 2014, with Bilbao and Dublin, spearheaded by the Cape Town Partnership.  The judges will be in Cape Town from 24 – 27 July, and the winning city will be announced on 26 October. The Design Indaba is a design highlight for the country, with its annual conference and exhibition.  At the last exhibition, attendees were asked to write in support of the city’s bid – this comment summarised what Cape Town stands for: “Cape Town’s people are her most beautiful landscape”.

*    Cape Town has a vibrant fashion scene, designer Dion Chang saying that “The tip of Africa is the tipping point”.

*   Cape Town is at the center of the magazine publishing industry.

*   The city has excellent furniture designers

*   The Joule electric car is being built in Cape Town, the first in Africa.

*   Cape Town has more Social Media users than any other part of the country 

 During her presentation, Mrs Helmbold made a number of statements about our city:

*   Economy based on tourism, finance, infrastructure, food and wine, logistics, and creative industries.

*   Cape Town is at the tipping point, either sinking into oblivion, or living up to the accolades it is reaping

*   Cape Town has been in a brand vacuum since the World Cup – not spending money on marketing the city will lead us to the example of Sydney, which is seeing a steady decline in visitors as it decided to not market the city after the 2000 Olympics

*   A destination is not just a slogan or a logo

*   Cape Town is a city of contrasts, of haves and have-nots

*   Brand Cape Town’s strength is Tourism (Visit), it is neutral on its education and residential facilities (Live and Learn), and weak on its potential as a centre of employment and investment (Work and Invest).

*   Cape Town underperforms in domestic tourism, mainly relative to Durban

*   Conversion of holidaymakers into business tourists is needed for Cape Town, and business visitors must be encouraged to return as holidaymakers, as Cape Town is weak as a Business Brand

*   Cape Town is a ‘challenger brand’ which does not have a long-established history, and stands for freedom, freshness and transformation, attractive to a world that has got tired of visiting boring places. “Challenger brands harness the power of authenticity, locals first, emotional pull, storytelling (Word of Mouse)”.

*   The pillars of Cape Town are Robben Island; its cultural diversity; the food and wine industry; Biodiversity; Table Mountain; Cape of Good Hope; hubs of innovation, creativity, enterprise and government; higher education and skills training; Sports and MICE; and Colour and Light.  

Cape Town Tourism is to assist business-related bodies in the city to market the city with a ‘brand box’.   It has worked with Accelerate, Cape Town Routes Unlimited, Wesgro, Cape Town Partnership, and the City of Cape Town in developing the new positioning for Cape Town, to establish it as ‘one of the top world cities to live, work, invest, learn and visit, in order to drive inclusive economic growth and social transformation in Cape Town’.  The presentation we attended was the last, and the implementation phase will now commence, Mrs Helmbold said.  In question time, FEDHASA Cape chairman Dirk Elzinga stated that great things are happening in Cape Town, but ‘we are not telling the world’, he said.

Mel Miller, former ad agency owner and creative director, and ex Cape Town Tourism Board member, is very critical of Cape Town’s new ‘Inspirational’ positioning, saying that it has been used by Edinburgh (‘Inspiring Capital’) already.  Miller points out that a previous tourism strategy consultant to Cape Town Tourism comes from Edinburgh! 

Mrs Helmbold showed a video presentation by Silver Bullet meant to represent Cape Town.  It was certainly not one of a beautiful Cape Town, but one of a very cloudy looking Cape Town, with a lot of focus on clouds billowing over Table Mountain and the Twelve Apostles, and what appeared as a fast-speed race through Cape Town.  I was NOT inspired by it, and it did not represent any of the Inspiration that Mrs Helmbold had presented to the audience.

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

Cape Town selected as finalist for World Design Capital 2014

Yesterday Cape Town received the fantastic news that it has been selected as one of three finalists for the World Design Capital 2014, with Bilbao and Dublin.  The city competed against 56 cities for this prestigious accolade, which was won by Seoul last year, and has been awarded to Helsinki for 2012.

A World Design Capital city is selected every two years by the International Council of Societies of Industrial Design, to a city that uses ‘design for social, cultural and economic development’, the Cape Town Tourism media release says.  The Council will be visiting Cape Town from 10 – 24 July, in a period in which the city will not be looking at its best in the winter weather, relative to its northern hemisphere competitors. The winning World Design Capital for 2014 will be announced on 26 October.

The Cape Town Partnership managed the bid for the award, supported by Cape Town Tourism and the City of Cape Town.   The recent decision to position Brand Cape Town as an innovation hub supported the World Design Capital bid, and uniquely differentiates Cape Town from other South African and African cities.

Cape Town Tourism CEO Mariette du Toit-Helmbold welcomed the good news: “This is a significant moment for Cape Town.  Our shortlisting is an acknowledgement that design is an asset and a massive catalyst to align different sectors across the city with the ultimate goal of making Cape Town a more liveable (sic) city.  Many people associate Cape Town with our beautiful natural surrounds but design and innovation is (sic) leading the way for us to become a city that people are increasingly choosing to explore and discover from an urban context….  As Cape Town moves into the future, we are convinced that it will become an ever more exciting place to live in, work in and visit.”

Odd was the information contained in the ‘Newsflash’ sent to Cape Town Tourism members last night, which stated that “..Cape Town’s bid theme is about the City’s use of design to overturn the negative legacies of its colonial and apartheid past that saw design dividing people, disconnecting the city, and relegating both people of colour and the urban poor to the fringes”.  This mouthful of a statement, which does not make sense in blaming design for apartheid, gets worse in the rest of the ‘Newsflash’, and one hopes that the bid book contains a more uplifting and positive motivation for Cape Town to be selected as the World Design Capital 2014!

Andrew Boraine, Chairman of the Cape Town Partnership, wrote on his blog that the Finalist status is good for Cape Town for five reasons: organisationally it demonstrated a good partnership and teamwork between the private and public sector; the deadline in getting the 465-page bid book completed and submitted was a challenge well handled; it gives brand Cape Town international visibility; it gives the citizens of Cape Town pride in their city’s success; and it will help to develop a greater design focus on anything that impacts on design in Cape Town. 

POSTSCRIPT 22/6:  The website of the International Council of Societies of Industrial Design summarises what the three finalist design capital bid cities represent.  Cape Town is praised for its beauty, and hosting of the World Cup last year, hardly the basis of giving one confidence of winning in October.  Furthermore, embarrassing is that a link is provided to the ‘Cape Town Tourism Board’, which is not Cape Town Tourism’s website, but that of Cape Town Routes Unlimited, which organisation had nothing to do with the bid!  Even worse is that it is completely dated, with a boring You Tube video dating back to the World Cup!  Come on Cape Town – the world’s design eyes are on us now!  The photograph shown for Cape Town is an aerial shot of the city, with the Cape Town Stadium prominently visible.  That for Bilbao is of a highly modern building, in all likelihood the Guggenheim Museum.  The Dublin pic is completely boring.  Dublin is reported to have spent €14 million on its bid, compared to Cape Town’s mere R2 million!  This is what the Council wrote about each of the three finalist cities:

Bilbao  

Bilbao is the capital of the province of Vizcaya, which is situated in the western part of the Basque Country, in northern Spain. As a financial and economic centre of the region, it is a dynamic and innovative city with intense social and business activity. Since the creation of The Guggenheim Museum in 1997, this city with a population of over 350,000 has been in the process of a large-scale urban transformation that has led to the development of a composed and diverse metropolis on the cusp of a dramatic urban revitalisation. So much so that Bilbao earned the 2010 Lee Kuan Yew World City Prize given for contributions to the creation of vibrant, liveable and sustainable urban communities.Spanish Tourism Board (Bilbao)  

Cape Town 

 The City of Cape Town lies at the southwestern tip of Africa, uniquely nestled between Robben Island and the majestic Table Mountain range, two national heritage sites. Since the end of apartheid, this city, now three times the size of New York and home to around 3,6 million people, has undertaken the process of redesigning itself. As South Africa’s oldest city and having recently hosted the first World Cup on African soil, Cape Town now has first class infrastructure and a cosmopolitan lifestyle. With the highest standard of living of all South African cities, this gateway to the African continent is rich in heritage, innovation, diversity and creative talent.Cape Town Tourism Board 

Dublin  

A city of one million people, Dublin is a hospitable, lively and eccentric city known to be open to ideas and creativity. With its wide connectivity and strategic geographical location, the capital of Ireland has become a busy crossing point for global flows of people and investment, as well as an international hub for large technology companies such as Facebook, Google, Intel, Microsoft and IBM. With its unique design heritage, the Unesco City of Literature is host for influential and distinguished design events such as the ATypI 2010 conference and the World Craft Council Europe conference in 2011.Dublin Tourism Board

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

Cape Town tourism recovery only in 2014, says Cape Town Tourism!

It was depressing to read the article”The Business Case for Tourism and a strong brand for Cape Town” by Cape Town Tourism CEO Mariette du Toit-Helmbold, and published on the Cape Town Tourism Blog.  Oddly it has not been sent to its members.  The most disturbing prediction it contains is that the R14 billion Cape Town tourism industry, which employs just short of 300000 staff, will only recover in 2014, in getting back to the 2007 level, the last good year for tourism in Cape Town.  What is disappointing is that Mrs Helmbold does not provide any guidelines to her Cape Town Tourism members as to how businesses should survive the next three years of poor business, nor does she spell out what she and her organisation are doing to market Cape Town more visibly!

To set the scene, Mrs Helmbold writes that international arrivals to Cape Town as well as domestic arrivals have stagnated due to the ‘Global Financial Crisis’, as she calls it, and she estimates a total loss of R 1,5 billion for the Cape Town tourism industry between 2008 – 2014, with zero job creation as a result.  Unlike other provinces, Cape Town and the Western Cape has little Africa-business, with more than 80 % of its business coming from Europe (including the UK, one assumes) and the USA.  Cape Town is a small fish in a massive global tourism pond, with our city’s market share being 0,2 % of world tourism.  She blames SA Tourism by implication for doing too much marketing of wildlife, and too little of the cities in our country :”…many national campaigns are of a tactical nature, which do not necessarily build knowledge and esteem values of our cities”.  The marketing of Cape Town, which is the responsibility of Cape Town Tourism, does “not allow for Cape Town to be compellingly and relevantly portrayed to potential visitors”.  This sounds odd, as Mrs Helmbold is pointing at her own organisation, but she does not explain what constraints there are to marketing the city. She also states that Cape Town’s attributes of being “iconic, complex and multi-faceted” are not evident to tourists.

The rest of the five page document becomes a long and theoretical ramble about how Cape Town should be positioned and at whom it should be aimed: in summary, the marketing of Cape Town no longer should be focused on leisure tourism alone, by highlighting the beauty of Cape Town, but it should incorporate business, investment, academia, and the creative sectors too. All of this appears to have been written to justify to its funders, the City of Cape Town, that unnamed ‘partnerships’ (probably the writers of the document, given its theoretical nature and unusual style for Mrs Helmbold’s writing) are “waiting in the wings for public sector endorsement of Cape Town Tourism’s new 2011/2012 marketing strategy and for the brand execution plan”. 

Sydney is used as an example, in how the 2000 Olympic Games caused a five-year tourism slump to that city, mainly because they stopped marketing themselves, thinking that they had world exposure.  The key learning points for Cape Town Tourism are that cities do not market themselves, they need to be marketed; investment in infrastructure and hosting events create growth and ‘livability’, but may not be relevant to tourists: “lack of marketing induces invisibility and irrelevance, which in itself reduces demand”.

The conclusion of the article seems far too obvious, and one must question why Cape Town Tourism, custodians of brand Cape Town, have not been able to identify the poor tourism and resultant poor industry performance trends, and have not acted proactively to address these problems.  Mrs Helmbold concludes: “If we do not act decisively now our industry and the economic well being of our city and people are at great risk.  If we don’t proactively engage in a new marketing and branding strategy we run the risk of being positioned nonetheless by our competitors, our critics and the media, and most likely to our disadvantage”. The last sentence does not make sense in its wording, nor can one understand why Cape Town Tourism has not changed its marketing strategy to date, having been responsible for the city’s marketing for the past three years already.

As we have pointed out on this Blog, the recent TripAdvisor accolade of Cape Town being ranked in first place as its Travellers’ Choice Top Destination, has seen no tourism benefit at all, and this is echoed by Ms Helmbold: “Although we are considered as one of the new cities to watch for 2020 and continue to rake in travel accolades, it is no guarantee for success or economic growth”.

One must question whether Cape Town Tourism is capable of driving such an important campaign, influencing the revenue of almost all the city’s businesses, all directly or indirectly influenced by tourism, and of its population, dependent on jobs.  Cape Town Tourism’s Marketing Manager until recently was Lianne Burton, a journalist, and not a marketer.  Her departure from the organisation has been kept low-key.  Ms Burton has not been replaced to date.  Mrs Helmbold and her PR Manager Skye Grove are very active on Twitter, but this is rarely about tourism, and far more about their social life. We must question why their time during working hours is not focused on their work and the marketing challenges of our city !  A further concern is the information that we have received that the highly respected PR company that Cape Town Tourism had appointed in Germany, KPRN, no longer does the PR for Cape Town.  There appears to be no visible benefit to tourism in Cape Town of the appointment by Cape Town Tourism of PR agencies in Holland, Germany and the UK.

We wrote to Mrs Helmbold, and asked her some questionsaboutthemarketing of Cape Town.  The first question related to the replacement of Ms Burton.  It appears that Ms Burton left some time ago, but is assisting Cape Town Tourism in a “consultative role” until the end of this month.  A new Executive Manager: Marketing should start on 1 July, she wrote.  Of concern is that Cape Town Tourism also does not appear to have an eMarketing Manager, with a job advertisement posted on Careers24 yesterday, and requiring the person to start on 1 July, not giving anyone time to work out their notice!   We asked about the international PR companies that had been appointed, but Mrs Helmbold was only detailed in respect of the non-renewal of the contract with Kleber Public Relations Network, which has worked with SA Tourism for years.  The company has been replaced by Akomasa Creative Connection in Germany.  Mrs Helmbold did not provide information about the success of the PR campaigns overseas, other than to say that information about it has been presented at workshops, which not all Cape Town Tourism members can attend.  One hopes that Cape Town Tourism can justify its international spend by sending members a detailed report of their international activities to obtain exposure for Cape Town. 

In reply to our question:”What is Cape Town Tourism doing to prevent a bloodbath of restaurant, hotel and other accommodation closures due to poor forward bookings?”, Mrs Helmbold was generalist and vague, and she does not appear to understand that a solution must be found NOW, and not in months to come! This was her disappointing response:

“As I explained in the Paper done on the Business Case for Tourism, the global financial crisis and the subsequent consumer behavioural change has had a significant adverse effect on the tourism industry; demand has diminished, visitor spends have steadied and costs have increased. Our over-reliance on traditional source markets, worse hit by the GFC, places us at further risk. There is not a quick-fix for this problem and no one could anticipate the extend (sic) of the impact of the GFC, of which we are really only now experiencing the magnitude of the impact. This is of course exaggerated by seasonality and as I said before our over-reliance on international leisure visitors from mainly Europe and the US.  

Investing in a strong, multi-dimensional brand is critical. We are pursuing private partners for a few significant brand platforms like international TV productions (BBC, National Geographic), events and campaigns, focusing on our unique strengths as a destination i.e. food and wine. We are focusing our efforts and resources on the “dream” and “conversion” part of the customer journey – assuming that the choice to come to Cape Town is not an obvious one and expensive to get here. We have to reinforce the awareness created during the World Cup, but move to conversion with good value for money offers. From an eMarketing perspective we are adding bookabilitytoourweb-platforms by July this year, starting with accommodation and then introducing it for tours and activities as soon as the new module is built. Through the new marketing alliance with Joburg and Durban we should be able to leverage some of SAT’s marketing spend, this will be a key focus for us in the next 4 months.

Whilst we continue our investment and reinforce our presence in traditional international leisure markets, we are investing in domestic tourism, using mainly some key events as draw-cards and working with the business sector to start changing negative perceptions around our business brand. Both the domestic and business markets are complex issues and will take a long-term approach to turn the tide against seasonality.

We are hosting a series of product workshops within the next few months on value, price, packaging and marketing alignment aimed to assist the industry to become more competitive and mitigate some of the risks faced within these tough economic times.

We will all have to work very hard together, under a powerful and united destination brand, to change the current trends and grow tourism into a more sustainable, year-round industry with a more healthy balance between international leisure, business and domestic tourism.

We are making a few significant changes to our marketing strategy and as soon as the plan is finalised and partners confirmed we will share it with the industry.”

We call for a heavyweight Marketing professional to be appointed, to drive Cape Town Tourism’s marketing of Cape Town. Ms Helmboldhasbeen running “Brand Cape Town” workshops for the past three years, and she is still asking workshops what Cape Town stands for.  Surely by now she and her team should have decided on a unique positioning for Cape Town that would be universally applicable in communication with all the sectors it wishes to attract to Cape Town.  Ms Helmbold’s article sounds like a city marketing organisation that is overwhelmed by the problems its tourism industry is facing, and that does not know the way forward – a very scary situation indeed!

POSTSCRIPT 10/6:  The only response from Cape Town Tourism is this sarcastic Tweet from its PR Manager Skye Grove:  @MariettedTHons le, sit, loop, rol rond op twitter.. tsk tsk.. mar (sic) ek belowe ek sal more bietjie werk.. @SoniaCabano1

POSTSCRIPT 10/6:  Yesterday Cape Town Routes Unlimited CEO Calvyn Gilfellan was reported on Eye Witness News to have urged ‘hotels and industry suppliers to reduce their rates to make travel more affordable for locals’.  He said “I think the industry must really wake up and make themselves more affordable if they want to remain competitive in a very cut-throat industry”. 

POSTSCRIPT 12/6: A business tourism event with a difference was the hosting of the global Playboy editors’ conference, which took place at the Mount Nelson Hotel earlier this week, reports the Weekend Argus .  The group of fifty met for three days.

POSTSCRIPT 13/6: The Bureau of Economic Research sent its results for the confidence in the Services industry today.  Of the service sectors surveyed, Accommodation has by far the lowest Business Confidence Index at only 25% (the next lowest is Real Estate at 41%).  Accommodation bookings are expected to decrease by 56% in the second quarter of 2011, relative to 2010, which was out of the ordinary for bookings due to the World Cup.  For the third quarter of this year, bookings are expected to be down by 23 %.  Trend information supplied showed that the last period of growth for the Accommodation industry was the fourth quarter of 2007.

POSTSCRIPT 13/6:  The provincial Minister of Tourism, Alan Winde, has announced that his plans to consolidate a number of marketing agencies for Western Cape businesses into an Economic Development Agency are back on track, and the Agency is expected to be launched in November, reports the Cape Argus today.  Perhaps this is the agency that can do the business marketing of Cape Town.  However, Cape Town Tourism is no longer on the Minister’s list of agencies which he wants to consolidate, his plans to do so originally causing a huge outcry.  The agencies to be consolidated include Wesgro, Cape Town Routes Unlimited, the Cape Craft and Design Institute, the Cape Film Commission, Calling the Cape, the Cape Town Boatbuilding and Technology Initiative, the Cape Music Industry Commission, the Cape Town Fashion Council, and ten others.    

POSTSCRIPT 14/6:  One company that is benefiting from the tourism slump is the Protea Hospitality Group, which is leasing and buying hotels that have ‘over-extended themselves and are now struggling to survive due to the current slump in the local hotel industry’, reports Southern African Tourism Update.  Protea’s CEO Arthur Gillis predicts that ‘many of South Africa’s 80 hotel brands will disappear’.  Gillissaid that he doubted whether there will be a tourism boom ‘unless it gets more bums on airline seats’. He suggests that SAA should fly routes in the interest of tourism, whether profitable or not.

POSTSCRIPT 14/6: Gillian Saunders of tourism consultancy Grant Thornton said about the tourism industry recently: “It’s really tough out there”.  She blamed this on the recession, the strong Rand, increased costs such as electricity and labour, and an oversupply of accommodation, reported the Cape Times.  City Lodge Hotels CEO Clifford Ross said: “It’s probably the worst I have known for 32 years”.  He added that no one “expected the drop-off after the World Cup to be so severe. There will be casualties in the market. Quite a few (hotels) are teetering on the brink”. 

POSTSCRIPT 17/6: Southern African Tourism Update  reports that the Minister is to have also said at the FEDHASA Cape AGM that local tourism authorities should not market internationally, as SA Tourism is doing so already, and that they should focus on local marketing instead.  He quoted the example of KZN Tourism, which has a marketing office in Gauteng.  Was he addressing Cape Town Tourism and Cape Town Routes Unlimited? 

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