Tag Archives: business tourism

WhaleTales Tourism, Food, and Wine news headlines: 29 July

WhaleTalesTourism, Food, and Wine news headlines

*   ‘Flavours of the Cape‘ is a restaurant promotion planned for Cape Town and surrounding restaurants during the month of September, reflecting … the flavours of the Cape in their dishes and the city’s vibrant food culture. (via media release from Real Events & Communications)

*   Wines of South Africa (WOSA) met with Wines of Chile and Wines of Argentina in Mendoza last week, to discuss communal marketing activities for the wines of their countries, particularly in China. ‘We met and reviewed the common goals that we have: To do things in innovative ways that are more cost-effective for producers. The feeling is that, when we work together, we generate more interest in the trade and with consumers’, said WOSA CEO Su Birch.

*   The first Four Seasons hotel in South Africa will open mid 2014, to be called Four Seasons Hotel Westcliff Johannesburg, being the renovated The Westcliff hotel. Continue reading →

Cape Town Tourism misleads tourism industry on state of winter business (or lack of)!

It is shocking to see how Cape Town Tourism publishes meaningless media statements, especially during winter, to attempt to deceive the tourism industry about the state of business.  Every tourism business owner and manager is aware how poor the current winter business is on a daily basis.  Last week the predictable media release once again was sent out, exaggerating the ‘state of the tourist nation’, when most in the industry are reporting that their current winter performance is even worse than 2011, which then was labelled as ‘a tourism crisis‘.

Cape Town Tourism conducts a survey amongst its members irregularly, and reported that the 83 members (out of at least 1000 – 1500 accommodation members making up the bulk of its membership, an embarrassingly poor response rate) had experienced unbelievable occupancy levels of 50 % and 39% in April and May, respectively.  Making the figures even more unbelievable is that Cape Town Tourism’s membership is no reflection of the average accommodation establishment in Cape Town, many leading guest houses having elected to no longer be members of the Cape Town tourism body.

It is no surprise that Seasonality is mentioned as tourism’s biggest threat, and blamed for the poor tourism performance, the winter weather being a deterrent for local tourists to visit the city, and the ‘over-reliance on leisure tourism’ leading to mainly summer tourist visitors, it is written. Surprising is that Cape Town Tourism has been tasked with promoting leisure tourism specifically, and just cannot crack the ‘Seasonality’ nut. Last year the tourism body bragged at its AGM how it would promote tourism during the winter season, but its winter advertising activity has been poorly executed, and has resulted in no impact to date!

Cape Town Tourism CEO Mariette du Toit-Helmbold is quoted in the media release as saying: “If we cannot establish a year-round demand for Cape Town as leisure, business and events destination the industry will remain threatened and we will not be able to grow the sector. This is a critical issue for an industry that employs more than 300 000 people and is the second largest contributor to the Western Cape’s GDP.”  The tourism body does not have a mandate to promote business tourism, even though it tried to expand its advertising campaign with the slogan ‘You don’t need a holiday, you need Cape Town’ to include conferencing, and setting up businesses locally.  The business application of the campaign has not been visible since the launch.

The media release also records the ‘modest‘ increases in passenger arrivals (it is not qualified if the arrivals were international or local) compared to 2011, a year all in the tourism industry know was the worst winter in years.

The media release is shocking in its poor quality information, in stating that the Pick ‘n Pay Cape Argus Cycle tour and the Cape Town International Jazz Festival took place in April, when in fact they were held in March! We have seen the poor writing quality by Cape Town in the past, but these factual errors are unforgivable!

The shocking conclusion to the release is Mrs Helmbold’s admission that Seasonality is out of control of her organisation, with a waffled identification of what is needed to fix the problem, which the industry is told year in and year out: “The need for a year-round brand positioning and demand-generation strategy to fill beds during the quieter months has been recognised, but seasonality and destination marketing are not one organisation’s concern. We can only solve Cape Town’s seasonality challenges and create year-round demand through partnerships and through understanding the changing needs and travel habits of potential visitors, whether business or leisure. We need collaboration within the industry, innovation, new experiences to promote, joint mobilisation within niche sectors on unusual projects, value-for-money travel packages and convenient access to the destination. We need an exciting calendar of events all year round and we need to cultivate tourism sectors such as food and wine, family travel, extreme adventure and sport”.

It is time that some new thinking is demonstrated at Cape Town Tourism.  The organisation’s strategic and marketing skills clearly are lacking, and even its CEO appears to no longer have the respect she once had, and seems severely taxed by her domestic challenges. She should take responsibility for the poor quality media information which her Communications department is issuing. It is time for new blood at Cape Town Tourism, to save Cape Town’s tourism industry from drowning!

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

Cape Town Tourism downscales its marketing campaign due to funding constraints!

Last week Cape Town Tourism invited its members to attend a Marketing feedback meeting, to share with them what the organisation has done in terms of marketing since it launched its Marketing Strategy with fanfare at its AGM six months ago.  It was also an opportunity for Cape Town Tourism CEO Mariette du Toit-Helmbold to reconnect with her members, still being on maternity leave, which is due to end next month.

The highlight of the meeting was the re-introduction to Cape Town Tourism of Anton Groenewald, the new Executive Director of Tourism, Events, and Marketing at the City of Cape Town, reporting to Mayoral Committee member for this portfolio Grant Pascoe. While Mr Pascoe has been an ineffective figure head of this department since he took over this portfolio, Mr Groenewald has a good track record of a tough no-nonsense approach to the management of public tourism monies.  He worked for the City of Cape Town ten years ago, and was instrumental in the closing down of the previous Cape Town Tourism, and the creation of the new amalgamated Cape Town Tourism.  Mr Groenewald left the City of Cape Town to take over the management of the Argus Cycle Tour, and thereafter the FNB Big Walk, and was most recently working in the office of the Premier of the Western Cape, giving him a good all-round management and public service experience. He mentioned that the Cape Town Stadium is one of the key assets he will manage for the city, and is the toughest one of all.  Since May 2011 the City has been supporting Cape Town Tourism, when Councillor Pascoe was elected to the Mayoral Committee. Mr Groenewald emphasised that his department is City-focused. His role will be to enhance the co-operation and collaboration between the City and Cape Town Tourism. He will also connect with the tourism industry directly, not explaining in which regard he will do this, but if it is to receive feedback, it would be most welcome. Cape Town Tourism receives the largest chunk of the City’s R426 billion budget, at R42 million per year currently, he said.

Enver Duminy, the acting-CEO in Mrs Helmbold’s absence, shared that the past six months have been tough in terms of budget, and that they had to ‘bite the bullet’, ‘put their money where their mouth is’, and ‘think out of the box’.

Mrs Helmbold provided the background, repeating what members had heard before in that Cape Town now is positioned as the ‘City of Inspiration’, going beyond its ‘Natural Beauty‘ positioning of the past. She reminded us that the new pay-off line for Cape Town is ‘You don’t need a holiday, you need Cape Town’, which was prominently displayed in the slides and banners on the stage of the beautifully renovated Fugard Theatre.  She acknowledged that the past six months were not easy, due to the funding shortage, but she did not explain the reason for the funding problem, having been very confident at the AGM last year, when the campaign was introduced to the industry. She recapped, stating that the main marketing goal is to increase the demand for Cape Town, not only in terms of tourism, but also its business and education sectors.  She said that Cape Town had ‘nothing to be ashamed of’, and in fact is on a par with or exceeds its competitors.  She mentioned that most of our business comes from the USA, the United Kingdom, and Germany, saying that these countries were all seriously affected by the recession, showing that she is misinformed, given how well Germany is doing, and what great numbers of German tourists have come to our country in this past summer.

The Cape Town Tourism marketing campaign was designed to attract the domestic travellers to take a short break in the city, as well as attract international visitors, offering them a broader economic and business tourism proposition.  The marketing approach is three-pronged:

· Increase demand

· Increase their spend when the tourists have arrived in the city

· Capitalise on the greater number of arrivals in benefiting the tourism industry.

The ‘Inspiration’ communication campaign presents Cape Town as a thriving and vibrant city against a ‘jaw-dropping backdrop’. Mrs Helmbold admitted publicly for the first time that ‘Inspiration’ is not a unique differentiator for Cape Town. The campaign ‘juxtaposes the usual with the unusual’, and is built on ‘stories of our own people’, she said, adding that Cape Town is packaged as ‘an unexpected city wanting to be discovered’. The New7Wonders of Nature and Cape Town winning the 2014 World Design Capital bid, as well as other impressive media accolades and awards, were good for Cape Town, and the past summer was better than expected.  But she added that they had not achieved the advertising budget to ‘spearhead the full campaign’, meaning that they had to re-prioritise, with hard work lying ahead.   Mrs Helmbold took credit for the media coverage for the New7Wonders of Nature and winning the 2014 World Design Capital bid, little of which was generated by Cape Town Tourism!  The organisation has redesigned its website, and achieves 500000 visits, especially from Brazil, she said.

Velma Corcoran has been the Marketing Manager for the past eight months, and she impressed with her professional and charming presentation of the marketing activities of the past six months, and those lying ahead, designed to counter seasonality and to grow tourism demand.  She showed the audience a video entitled ‘An Unexpected Cape Town’, which mixed footage of Cape Town with grainy out-of-focus unattractive stills shots of the city, which was launched to the travel trade and media at ITB in Berlin last month.  It has been put on You Tube, and has had 30000 hits to date.  An Events Calendar was compiled, and 20000 copies printed quarterly, but its print run has not been enough, and will be increased to 50000.  Cape Town Tourism has been involved with the Volvo Ocean Race, Design Indaba, Cape Town International Jazz Festival, the Beer Festival, and the Toffie Pop Festival, mainly having a stand at each event.  At the Design Indaba, for example, they had an interactive stand, with 1000 tiles which visitors had to attach to the wall.  They also hosted YFM during the J&B Met, and 30 international journalists during the Cape Epic, the media interest being greater for this event than for the Argus Cycle Tour and Two Oceans Marathons combined, Mrs Corcoran told the audience.

To counter the perception that Cape Town is expensive, events packages have been put together with Mango and Thompsons, providing an airline ticket, accommodation, and tickets to the event at very affordable prices. At the Cape Town International airport the new campaign message is visible in the Arrivals and Departures sections.  Cape Town Tourism has also just had the campaign erected on the exterior of its offices in Burg Street. The refreshed website has simplified navigation, and the content a website visitor will see is determined by the country from which one is visiting the site.  A Cape Town Tool Kit was also developed, allowing access to an ‘on-line hub of images and itinerary ideas’, which the trade, the media and Cape Town Tourism members can access. A Brand Ambassador campaign, to teach the Cape Town Tourism staff about marketing, has also been launched.

Mrs Corcoran said that they will be going to Indaba next month, sharing space on a new Western Cape Pavilion with thirteen product owners representing expected and unexpected aspects of Cape Town. A Three Cities Alliance has been established with Johannesburg Tourism and Durban Tourism, through which they share with SA Tourism what they have achieved, and to prevent duplication of activities. Mrs Corcoran had to admit that Johannesburg Tourism was not able to fund any planned joint marketing campaigns, and therefore it left Durban and Cape Town to jointly take on an amended National Geographic campaign, and to drop the Discovery campaign, which had been announced at the AGM as the most important marketing activity its Australian marketing consultant Ian Macfarlane had organised. Mr Duminy told me at the meeting that Mr Macfarlane has completed his contract with Cape Town Tourism, while Mrs Corcoran said he is still working with them! His name was not mentioned at all during the presentation! The National Geographic campaign has the potential of exposure in 173 countries in 37 languages, with 20,3 million online unique visits, as at February 2012. National Geographic will work with Cape Town and Durban, ‘the first urban tourism collaboration of its kind in South Africa’, said the Cape Town Tourism media release about the joint campaign, which for Cape Town will feature Boulders’ Beach, Robben Island, District Six, Woodstock, Bo Kaap, Table Mountain, the city’s wine routes, as well as its design, innovation, and inspirational strengths:

· Sending ‘Digital Nomad’ Andrew Evans to Cape Town (he has just arrived) for a two week period, and he will Tweet (@Wheres Andrew) to 14000 followers and blog (receiving 2,8 million unique visitors per month) about his visit.

· A TV crew will document Andrew’s visit

· 60 second ‘vignettes’ will focus on the ‘sounds of the city’, e.g. the Noon Gun, ghoema music, with exposure to 11,4 million viewers in the UK, 3,9 million in Germany, 7,4 million in the Netherlands, and 4 million in Africa.

· Advertorials will go into the National Geographic magazines, with a joint readership of 600000, in the USA, China, India and Australia

· On-line travel guides will gain exposure for 12 months, from July 2012 – May 2013.

· An one-hour documentary about Cape Town and Durban will be featured six times on the National Geographic channel between December 2012 – June 2013.

A domestic campaign ‘Discover why Cape Town warms up in winter’ will run in airline magazines, while ads with members’ special winter offers will run on Five FM, the Sunday Times, in-flight magazines, and on the Cape Town Tourism website.  Four top international Travel Bloggers have been invited to Cape Town, and will address a travel bloggers’ conference in August.

Comparing the Marketing presentation of last week with the promises made at the AGM in October – one should question why the joint venture with the Johannesburg and Durban Tourism bodies for the then planned Discovery and National Geographic campaigns was announced at the AGM before any agreement had been signed, the organisation losing face in the inability of Johannesburg Tourism to participate in what was planned as a R24 million campaign, each city to have contributed R8 million – the planned reduction in the number of Visitor Information Centres, the planned tiered membership program, the City Brand Ambassador campaign (which was to have included Archbishop Tutu and TV and radio presenter Liezel van der Westhuizen), and the Nightsbridge accommodation booking system were not addressed in the Marketing presentation last week.

POSTSCRIPT 1/6: Other than having attended Indaba, no marketing action is visible from Cape Town Tourism over the extremely poor winter period.  The organisation has only Tweeted once about the 8 Nation Under 20 soccer tournament taking place in Cape Town now, seemingly seeing it as a non-event, as do most Capetonians and the city’s news media.  Last night the Twitter account of Cape Town reported on a  dinner at Harbour House in the V&A Waterfront, and a few days before that the husband of Velma Corcoran, the Marketing Manager of Cape Town Tourism, wrote a blogpost for the Cape Town Tourism blog about the Gugulethu Wine Show, which took place last weekend! Cape Town Tourism’s Tweets are identical tot he Tweets by its Communications Manager Skye Grove.

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

What happens to marketing Western Cape tourism, with closure of Cape Town Routes Unlimited?

Loved it or hated it, Cape Town Routes Unlimited tried its best to gain exposure for the tourism industry of the Western Cape province, even though it led to duplication with Cape Town Tourism in marketing Cape Town. Seven years after the Western Cape Tourism Act of 2004 was promulgated to establish a destination marketing organisation, later branded as Cape Town Routes Unlimited, it closed its doors yesterday. A new era starts, with its remaining staff and Board transferring across to Wesgro as of today – no, this is not an April Fools’ Day joke!

In a statement sent to the industry on Friday by Western Cape Minister of Finance, Economic Development and Tourism Alan Winde, he announced that ‘incorporating trade, investment and tourism marketing under one roof would bring greater efficiency in these strained economic times. It would also ensure coordination of the Western Cape Government’s outward facing marketing initiatives‘.  From today, Wesgro is the ‘single economic development delivery agency of the Western Cape Government, and its official implementation agency’, said the Minister.  He added that financial and human resources would be combined to drive ‘a far more aggressive international marketing campaign with a unified brand focused on business and tourism‘. Combined market research will also be beneficial to both parties, in providing information about the world economy, he added.  While the industry knew about the amalgamation commencing today, it was not told that Peter Bacon, Chairman of Cape Town Routes Unlimited, had left Cape Town for Mauritius. We picked this up in the media conference during a tea break at the Cultural Tourism Conference earlier this week, which was jointly hosted by Cape Town Routes Unlimited and the Western Cape Economic Development and Tourism department.   Another shock was reading the Minister’s announcement that Cape Town Routes Unlimited CEO Calvyn Gilfellan has left the organisation, not allowing one to say farewell to him at the Conference.

One could be concerned about the continuation of tourism marketing within Wesgro, given a new Chairman of the Cape Town Routes Unlimited Board (Deon Cloete from ACSA) until the organisation is wound down through the Western Cape Tourism Act being repealed, the departure of the CEO who also was the marketing driver for the organisation, and the departure of all the Marketing executives in the past year, leaving mainly administrative Cape Town Routes Unlimited staff moving to Wesgro.  The Minister stated that a Service Level Agreement has been signed between the Cape Town Routes Unlimited Board and Wesgro, for the delivery of the tourism marketing organisation’s functions.  The staff will remain in its current offices in the Waldorf Building, completing the compilation of the Annual Report, and staff receiving the same benefits as they did at Cape Town Routes Unlimited.

The Minister’s concluding paragraph is a subtle admission that all was not well with the marketing of the Western Cape by Cape Town Routes Unlimited: “I would like to assure all stakeholders and partners in the tourism industry that we are committed to ensuring even better tourism destination marketing programmes and support. Tourism accounts for 10% of this province’s GDP, making it very serious business. This move will allow us to give this industry the attention it deserves”.

In his last newsletter sent to the tourism industry on Friday, Mr Gilfellan nostalgically looked to the past as well as forward, and said goodbye without announcing his departure from the organisation.  He joined Cape Town Routes Unlimited in 2004, handling Visitor and Membership Services, when Noki Dube was the organisation’s first CEO. After Sheryl Ozinsky was the CEO for a short stint, Mr Gilfellan was appointed as the CEO in 2008. He praised the work of his team in having created ‘a healthy, growing, universally recognised, admired tourism destination marketing organisation… in prime condition’, few in the industry agreeing with this over-exaggeration, and clearly Minister Winde also did not agree, in making such a radical organisational change.  Mr Gilfellan wrote with sadness how the Cape Town Routes Unlimited budget reduced from R60 million at its inception to R 25 million in the past year, due to the withdrawal of the 50% funding of the organisation by the City of Cape Town, monies (R42 million in the current financial year) which were allocated to Cape Town Tourism, which led to duplication of activities in marketing Cape Town specifically, but also the rest of the Western Cape.  He wrote that they found ‘strength, guts and determination to continue delivering work of the highest quality’, despite the financial impediment.

There were many aspects of Cape Town Routes Unlimited which we criticised over the past seven years, but it seemed as if the organisation had finally found its niche in the past twelve months, in its commendable industry communication via media releases, which we received almost daily (compared to the infrequent ones from Cape Town Tourism, which Tweets rather than taxing itself with the preparation of releases), and its marketing activities in Angola, Brazil and Argentina, and in China and India. The biggest criticism of the organisation was the development of a double brand name at its inception, which goes against the grain of all marketing wisdom, being ‘Cape Town & Western Cape’.  The duplication of marketing action lies between Cape Town Tourism and Cape Town Routes Unlimited, and the Minister has not shared with the industry how this duplication will be addressed, other than by closing down Cape Town Routes Unlimited. One wonders what synergies there really are between Cape Town Routes Unlimited and Wesgro, with the latter body focusing on marketing our province as an investment and trade destination.  We request the Minister to give the industry far more information as to the ‘route’ ahead in marketing the Western Cape, which is not dealt with in any depth in his letter to the industry.

It will take months for the two bodies to find each other, for the Western Cape Tourism Act of 2004 to be repealed, and for the marketing synergies to be developed, meaning that the marketing of Cape Town and the Western Cape will grind to a halt over the critical winter months, characterised by seasonality, and a time during which marketing is most needed, given the tourism crisis experienced last year.

POSTSCRIPT 4/4: In a harsh letter to Southern African Tourism Update, former co-head of marketing at Cape Town Routes Unlimited and now Director of Sales and Marketing for the Durban International Conference Centre, David Frandsen, said that ‘Wesgro is taking tourism into the wrong direction’.  He called for an autonomous convention bureau for Cape Town, which he describes as being ‘emasculated’ now, given the closure of Cape Town Routes Unlimited.  Even more sharp is his attack against who must be assumed is Western Cape Tourism Minister Alan Winde: ‘It would seem that every decision taken by the politicians seems to retard the proper functioning of tourism marketing in the province, particularly with regard to business tourism. So much potential is bedevilled by those who do not understand how the business tourism industry works!’

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