Cape Town-London | WhaleTales Blog by Chris von Ulmenstein

After having met Wesgro CEO Nils Flaatten two months ago, a week after he had taken over the responsibility for marketing the Western Cape from Cape Town Routes Unlimited, which organisation was incorporated into the trade and investment promotion agency on 2 April this year, we requested feedback about the progress made in marketing the region. Mr Flaatten had asked the industry to give him a month to get the organisational integration completed. An e-mail request for feedback on the marketing progress earlier this month led to an invitation by Mr Flaatten to meet with him on Tuesday.

The most exciting news for the local tourism industry, and Mr Flaatten’s first major challenge, is the 5 July meeting called with SAA’s General Manager Theuns Potgieter by Wesgro with 15 players in the Western Cape, including local and city government, an Eastern Cape tourism marketing body representative, and larger tourism companies, to discuss SAA’s decision to cut its Cape Town-London route as of 15 August. The airline will be asked to motivate its decision in culling the route. Joint destination marketing between the Western Cape and SAA in bringing in tourists from destinations such as Beijing, Sao Paulo, Mumbai, Melbourne, various African destinations, and Buenos Aires will be discussed too. Subsequent meetings will be held with the airlines which will continue to serve the Cape Town-London route, including BA, Virgin, and Emirates, to discuss bringing in more flights to Cape Town.

The parking organisation was perfect, and Mr Flaatten chose for us to go to Doppio Zero on St George’s Mall for the meeting. He had copies of the slides which he used for his recent presentation at FEDHASA Cape’s AGM, which I had requested via his secretary, but the wait was worthwhile, as Mr Flaatten was able to explain his points in greater detail. Mr Flaatten is a very precise person, and he referred repeatedly and proudly to the progress that he and his new team have made in the ‘two months and 19 days’ since their integration. In the past 80 days Wesgro has undertaken the following Marketing activities:

* Mr Flaatten and Solly Fourie, Head of the Western Cape Department of Economic Development and Tourism, accompanied an (unnamed) Chairman of a JSE-listed hotel company to Buenos Aires, to meet six outbound tour operators. Mr Flaatten praised their product knowledge of the Western Cape. He said that the withdrawal of the Cape Town-Buenos Aires Air Malaysia route is a serious blow to tourism from Argentina. His journey from Cape Town to Buenos Aires via Johannesburg took 24 hours, previously a direct flight of 7 hours flying west.

* Bjorn Hufkie from Wesgro’s Conventions Bureau accompanied the (unnamed) Managing Director of a JSE-listed hotel company to Saudi Arabia and Kuwait

* Participated in exhibitions: Arabian Travel Market in Dubai, IMEX 2012 in Frankfurt (incentive travel, meetings and events); and Indaba in Durban. Mr Flaatten said that all six the RTOs were represented on the Western Cape stand, and that they will ‘raise the bar’ for 2013.

* Debbie Damant has been part of SA Tourism’s marketing mission to China and Japan

* Met with Cape Town Tourism, the largest RTO (regional tourism organisation) of the six in the Western Cape, asking some ‘tough questions’ of them

* Met with Eden RTO, and some of its LTO’s (local tourism bureaus)

* Met with SAA at Indaba (prior to SAA’s bombshell announcement about the Cape Town-London route)

* The Western Cape Tourism Barometer for the fourth quarter of 2011 was released.

* The Wesgro website has been updated, incorporating its new additional Destination Marketing role, clicking through to the tourism information previously on the Cape Town Routes Unlimited website

* One of the greatest achievements is the detailed listing of over 100 events in the province in the next six months, with detailed information about each event

* Organisationally, the activities and marketing focus of the six RTOs (Cape Town, West Coast, Eden, Cape Winelands, Central Karoo, and Overberg), and its tourism bureaus within the municipalities within the RTOs have been captured, within a Customer Relationship Management program. An intensive Facebook campaign to interlink and like the LTOs and RTOs is underway.

Looking ahead for the next 10 months the focus will be to deliver on the Annual Performance Plan in respect of destination marketing; create operational efficiency, effectiveness and cost savings, which savings will go into the Events budget, Mr Flaatten said; fill staff vacancies; strengthening relationships with the RTO’s and LTO’s, international airlines operating from Cape Town International, tourism trade bodies, SA Tourism, and other national tourism bodies; ‘impactful marketing and advertising of the destination’, website integration and marketing strikes in respect of tour operators, to keep up the ‘share of mind’; aggressively market the Conventions Bureau, pushing conferences into the provincial towns and villages too; stimulate Events and fund smaller events; and SMME development. Wesgro is pitching to host SIAL Cape Town, which would become a fantastic new food event creating a ‘Global Food Marketplace’, already held in Paris and China, and is planned to be hosted in our winter months, to address Seasonality. The Western Cape Tourism Marketing Plan is expected to be ready by September. Inter-provincial travel within the Western Cape will be an important focus. Mr Flaatten was requested to provide feedback on what Wesgro is doing for the tourism industry as frequently as possible, all media communication to ourselves having been terminated since Wesgro took over. We fed back that the Tourism Bureaus are not passing on Wesgro’s information to its members, which seemed to surprise him.

Mr Flaatten provided a copy of the latest Tourism Barometer, surprisingly signed off by Calvyn Gilfellan, former CEO of the ex-Cape Town Routes Unlimited. In the last quarter of last year 216000 international tourists arrived in Cape Town, a welcome increase of 15% over the same period a year before. Domestic arrival growth was far lower in the same period, at 4%, with just under 1 million visitors. A large part of the report contains statistics of visitor numbers to the province’s key tourism attractions, and to the RTO’s local tourism bureaus, a very unreliable tourism barometer, given that fewer visitors require the information or booking services of tourism bureaus, doing most of their bookings at home via the internet before their departure.

Organisationally, the integration between the ex-Cape Town Routes Unlimited staff is complete, section 197 of the Labour Relations Act having been followed, in that all staff (also the Wesgro staff) were offered staff benefits at the higher level of those offered by Wesgro and Cape Town Routes Unlimited, so that all Wesgro staff now receive the same benefits. A Memorandum of Understanding, a Memorandum of Agreement, and a budget have been signed by the Joint Working Committee guiding the integration. The Annual Performance Plan of Cape Town Routes Unlimited has been transferred to Wesgro. For the financial year April 2012/March 2013, Wesgro now has a total budget of just more than R51 million, 45% being for Cape Town Routes Unlimited funding. All ex-Cape Town Routes Unlimited staff now have Wesgro contracts, e-mail addresses, and business cards. Staff have been grouped by functionality and accommodated on the 7th and 12th floors of the Waldorf building. Provincial Tourism Minister Alan Winde’s department is working on repealing the Tourism Act of 2004, which will close down the Board of the ex-Cape Town Routes Unlimited, which currently has to remain operative as long as the current Act is in place.

Wesgro needs to start from the beginning in gaining the confidence of its Western Cape tourism constituency, which had little faith in its predecessor Cape Town Routes Unlimited. The outcome of the 5 July SAA meeting will be a crucial test of its negotiating skills. In addition, it will be judged on its ability to communicate with the tourism industry on a regular basis, via traditional media channels as well as Social Media marketing.

Wesgro, Waldorf Arcade, 80 St George’s Mall, Cape Town. Tel (021) 487-8600. www.wesgro.co.za Twitter: @Wesgro

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

An elaborate plan to meet the R40 million or so annual shortfall in funding the Cape Town Stadium could see a ‘commercialisation’ of the Green Point sport and entertainment facility, to secure its survival, and to reduce the financial pressure on the City of Cape Town and its ratepayers. The plan announcement has been overshadowed by SAA’s decision to cut the direct Cape Town-London route from 15 August, news which was announced on the same day, and is currently of far greater concern to the local tourism industry.

The City has been advised by consultants to turn the R4 billion Cape Town Stadium and neighbouring Green Point Park into a commercialised zone, which would allow nightclubs, shops, coffee shops, sports bars, restaurants, letting of office space, and even a sport hospital to be set up in the area, reports the Cape Argus. In addition, stadium tours, a museum, a ‘hall of fame’, and a Sports Science Institute are planned. This would help Cape Town to be positioned as a ‘leading events, investment and tourist destination’, says the newspaper report. The Stadium operating costs amount to R50 million per annum, with only R11 million earned in the past nine months. Ideally, the City of Cape Town would seek an anchor tenant. Talks with the Western Cape Rugby Union are said to be ‘at a very early stage’, despite having been initiated a year ago already. The City had to take back the management of the stadium when negotiations for its agreement with Sail Stadefrance fell through.

Other South African World Cup soccer stadia are offering guided tours of their facilities, and some have restaurants and shops too. Looking to inspiration overseas, Chelsea’s Stamford Bridge stadium complex consists of hotels, flats, a nightclub, bars, restaurants, a megastore, and Chelsea World of Sport.

The City of Cape Town plans to apply to the Western Cape Department of Environmental Affairs and Development Planning, to change the ‘Record of Decision’ for the stadium and the Green Point Park alongside it, with the view to change its zoning, which defines its uses. Currently the zoning prohibits the commercialisation of the stadium and of the park, and would prevent the recommendations of its consultants, i.e setting up retail outlets, renting out parking space, and letting office space. City of Cape Town Councillor Grant Pascoe, Mayoral Committee Member for Tourism, Events, and Marketing, has delegated the task of negotiating with the province to his relatively new Executive Director and head of his department, Anton Groenewald.

The Green Point Residents and Ratepayers’ Association has supported the plan in part, not wishing to see ‘blanket’ business rights for the area.

While the financial benefits of generating more income from the attractive and well positioned Cape Town Stadium have merit, we cannot see the proposed commercialisation thereof having any benefit to Cape Town’s positioning as an events, investment, and tourist destination, as claimed by the City of Cape Town. The City of Cape Town does not have a good track record of running tourism nor of organising events, the 8 Nations Under 20 soccer tournament which finished last week being embarrassing proof of this!

POSTSCRIPT 9/6: Interesting is an article in the Cape Argus, which reports that the City of Cape Town’s MyCiTi bus service ‘could need a R500 million yearly subsidy’, making the cost of the Cape Town Stadium look like small change! This is not its running cost – the City of Cape Town approved a R1,2 billion budget for the public transport system for the 2012/2013 financial year!

POSTSCRIPT 14/6: Exciting news is that Manchester United will play a friendly match against Ajax Cape Town at the Cape Town Stadium on Saturday 21 July. Ticket prices will range from R150 – R350. The cost to the City of Cape Town is R7 million, Councillor Grant Pascoe is quoted as saying in Business Day, and 100 international journalists are expected to cover the event.

POSTSCRIPT 18/6: Even more exciting news is that Lady Gaga is coming to Cape Town on 3 December, for the ‘Born this Way Ball’ world concert tour, one of 110 in total. The concert will be at the Cape Town Stadium.

POSTSCRIPT 29/6: The Cape Argus has reported that 23000 tickets were sold in the first 24 hours of ticket sales opening up for the Manchester United match. On City of Cape Town Councillor Grant Pascoe’s Twitter timeline we have read that ticket sales have now exceeded 39000. A total of 50000 tickets is for sale. The newspaper also reported that a special Guinness Book of World Records attempt to have the largest number of persons collectively singing ‘Happy Birthday’ to Nelson Mandela in one place. Councillor Pascoe has justified spending R 6,1 million, with an income benefit of R2 million, because of the tourism benefit of the event. To date no such tourism benefit is evident!

POSTSCRIPT 29/6: Earlier this week ‘activist’ Terry Crawford-Brown has been vocal in The Times, in the Cape Argus, and the Atlantic Sun in calling for the demolition of the R 4 billion ‘white elephant’ Cape Town Stadium, and accused FIFA of ‘blackmailing‘ the city into building the stadium. The stadium’s construction was ‘unconstitutional‘, he claimed, given that the building of the stadium was not open, transparent, fair, nor cost-effective. Councillor Pascoe clearly is annoyed by Mr Crawford-Brown’s communication, having refused to comment on it to The Times, and Tweeting disparagingly about it.

POSTSCRIPT 29/6: The City’s design of the new Green Point Athletics Stadium, on the site of the original Green Point Stadium and adjacent to Cape Town Stadium, is disappointing, wrote Rashiq Fataar and Robert Bowen of Future Cape Town, in only allowing for 7000 spectator seats, reported the Cape Argus this week. The duo also is critical of its unexciting design, and not being worthy of Cape Town, lacking ‘a spirit and a character’.

POSTSCRIPT 29/6: The Times reported a week ago that the Green Point Ratepayers’ and Residents’ Association are ‘set to go to war with council’ over any new developments relating to Cape Town Stadium. In building the stadium, the Green Point community was promised in 2006 that the commercial development of the previous Green Point Common would not be allowed. The association feels that the planned commercialisation would not cover the cost shortfall.

POSTSCRIPT 1/7: Councillor Pascoe has told the Cape Argus that demolishing the stadium is not an option! Capetonians polled by the newspaper showed that locals are proud of the world-class stadium and its design, and call for it to become the home of Western Province rugby.

POSTCRIPT 1/7: From Tweets seen it would appear that the Manchester United – Ajax Cape Town match at Cape Town Stadium is sold out.

POSTSCRIPT 4/7: Horror of horrors for Green Point residents: notorious ANC City Councillor and COSATU provincial secretary Tony Ehrenreich is creating outrage by his suggestion that the stadium be used for low cost housing! The Green Point Ratepayers’ and Residents’ Association has rejeceted the proposal, as the title deed does not allow it, reports The Times.

POSTSCRIPT 19/7: The R81 million Green Point Athletics Stadium, being built in the shadow of the Cape Town Stadium, is having Green Point residents fear that a second white elephant is about to appear on their doorstep, reports People’s Post. They also fear the noise levels which could be emanating from the new stadium.

POSTSCRIPT 26/7: The Times reported yesterday that the City of Cape Town has approved the rezoning of the ‘Green Point‘ (sic) Stadium for commercial activity. It will now seek approval from the Western Cape province ‘to amend the land use rights’ for the Cape Town Stadium.

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