Tag Archives: Chief Marketing Officer

WhaleTales Tourism, Food, and Wine news headlines: 9/10 September

WhaleTalesTourism, Food, and Wine news headlines

*   Africa now has 100 million Facebook users, still only half of the number of internet users on the continent.  The majority of Facebook users access the site via mobile phone.   While the growth in Social Media usage in Africa is massive, it is still very costly.

*   The Open Book Festival will run at The Fugard Theatre for the second year running, from 17 – 21 September, with authors from 12 countries attending.  Local authors will include Wilbur Smith, Zakes Mda, and Zelda la Grange.

*   Shock news is the resignation with immediate effect of SA Tourism Chief Marketing Officer Jan Hutton. No reasons are provided, but the suddenness of the resignation is ominous.  The industry has expressed its regret about the resignation of this dynamic marketer of our country.

*  It’s a bad week for flying in Europe.  On Monday a bomb scare at London Luton airport caused the cancellation of all EasyJet Continue reading →

Wesgro Chief Marketing Officer Judy Lain a breath of fresh air for Tourism!

Wesgro Judy Lain Whale Cottage PortfolioI was recently told that Wesgro had finally appointed a Marketing head after looking since April 2012.  I called Judy Lain, its new Chief Marketing Officer, and was able to set up an appointment to meet her after her trip to South America.  We agreed to meet last Friday at Café Paradiso, on Judy’s recommendation.

All I knew about Judy was that she was better known as Judy During, and had run an advertising agency called 34 Woman, focusing on generating information about women’s purchasing behaviour, being responsible for not only FMCG but also big ticket brand decisions in their households.  Prior to that she worked at Inviseo Media, at Bester Burke Underground, and at draftfcb, therefore having a practical marketing and advertising background.   Our telephonic interaction in setting up the meeting was very different to the bureaucracy I experienced when I arranged to meet with Wesgro CEO Nils Flaatten.  Judy answered the phone herself, sounded friendly and bubbly, and decided that we should meet over lunch.

We had forgotten to describe one another over the phone, but we both Continue reading →

“Tourist torrent” expected for the festive season? Not in the Cape!

One wonders where the tourism authorities get some of their information from!  While a The Times journalist may have enjoyed the alliteration in his headline on 7 December (“All set for a tourist torrent”), he may in fact have vastly exaggerated the implications of the results from a World Cup survey as to tourism to South Africa over the “season”/”festive season”.  This contradicts what most tourism players are experiencing, in what is set to possibly become one of the worst summer seasons ever, with poorer accommodation bookings than in previous years for coastal suburbs/towns such as Camps Bay, Hermanus and Plettenberg Bay, and even worse in inland towns.

The journalist was reporting on the presentation of the SA Tourism and Department of Tourism study on the effect of the World Cup, a survey which had been conducted in June and July amongst World Cup visitors, as well as guests flying out of Cape Town International, OR Thambo, and ten other airports in Namibia, Zimbabwe and Lesotho.  As a market researcher in a previous career, I shudder at the thought of the research methodology (unspecified in the S A Tourism release) which may have been used – in Cape Town eight departing guests were interviewed at the close of the Cape Town semi-final at the airport, on which basis a local daily proclaimed the Cape’s success in hosting the tournament in our city!   Both Cape Town Tourism and Cape Town Routes Unlimited used dubious questionnaire formulation in surveys conducted amongst local tourism players during the World Cup.

SA Tourism’s Chief Marketing Officer Roshene Singh is a respected marketer, and I had the pleasure of meeting her a few months ago.   But the quote attributed to her in the article seems unbelievable: “We believe we’re going to have a bumper season (note her word, which the sub-headline in the article changed to ‘festive season’!) because people who are regular visitors in June and July deferred their holidays because of the influx of soccer fans then, so we expect them to now visit.”   Given the seasonal nature of tourism in the Western Cape, with May, June and July being the worst three months for the tourism industry in the Western Cape, our region will definitely not be expecting a “tourist torrent” in the next three weeks/three months, if we are to rely on these ‘displaced’ holidaymakers!

The rest of  The Times report  reflects the findings of the World Cup survey, which showed that 310000 foreign soccer fans had visited South Africa for the World Cup, said Minister of Tourism Marthinus van Schalkwyk, and that 90% would consider visiting again.  Key findings are as follows:

*   The economy benefited by R3,6 billion (the cost of generating this income was not mentioned!)

*   59 % of visitors travelled to South Africa for the first time due to the soccer event

*   220000 soccer visitors visited Gauteng, 108384 the Western Cape, and 83819 KwaZulu-Natal

*   the largest number of World Cup visitors came from the USA (30175), followed by Mocambique (a surprise second place at 24483), Britain (22802), Swaziland (19593), Brazil (14815) and Australia (12210).

*   68%  rated South Africa as an “extremely good” host, and 29 % rated it as a “good host”, an excellent scorecard.

*  Just over half of the soccer fans who had been to other World Cup events, said South Africa was a better host country – a surprisingly low figure, given all the publicity one saw and the highest ever FIFA rating – 33% rated it on a par with previous host countries, and 16 % rated it worse.

The bizarre (and dangerous) projection by our tourism marketing authority, based on very indirect information obtained from a survey conducted six months ago, in a period since which South Africa’s post-World Cup image has taken some serious knocks, and in which period the Rand has remained too strong to make South Africa an affordable tourist destination from the United Kingdom, Europe and the USA, is irresponsible, in our opinion, and does not reflect the reality of bookings by the accommodation industry.  The reference to the bumper season must have been made during the presentation of the survey results to journalists by Singh, as the official media release of SA Tourism does not refer to this projection at all!

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

Cape Town Routes Unlimited does not spend enough on Marketing

A heavyweight delegation from the Western Cape Department of Finance, Economic Development and Tourism, members of the Board of Cape Town Routes Unlimited, and ‘stakeholders’ of the organisation attended a presentation at the Table Bay Hotel last week, to receive feedback about Cape Town Routes Unlimited’s performance in the past twelve months, and its way forward.  Attendees also received a copy of the 2009/2010 Annual Report, a detailed document of the activities of the body which states that its “core business is marketing communications”.  It is a shame that so little of the organisation’s budget is spent on beneficial marketing on behalf of the tourism industry in the Western Cape.

The problem with handing out the Annual Report is that it reveals information which is not always to the benefit of the organisation, even though its “honesty” is commendable and meets accounting procedures.  A greater part (52%) of the R 38,5 million annual budget which Cape Town Routes Unlimited received from the Western Cape province in the past year, supplemented by R 15 million from additional special project income generated, was spent on administrative expenses rather than on marketing, which is bad news for the tourism industry in the Western Cape, which has seen the worst year ever, with most provincial tourism businesses having been detrimentally affected by the World Cup, by the strong Rand, and therefore by a reduced number of bookings. 

The importance of Marketing to the organisation is highlighted by the fact that the CEO, Calvyn Gilfellan, is also the Chief Marketing Officer.   He has three Marketing Executives reporting to him:

David Frandsen: Executive Manager – International Marketing: Europe and the Americas and the Convention Bureau 

Itumeleng Pooe: Executive Manager – International and Domestic Marketing: Africa, Asia, and the Middle East

Romeo Adams: Executive Manager – Marketing and Organisational Support 

In the Annual Report, each of these executives feeds back what their performance has been relative to targets set at the beginning of the financial year.   It is a shame to see how much of their time and action was directed at meeting administrative requirements in the preparation of the Annual Report as well as the financial reporting.   Many of the targets they set themselves seemed rather low, so that it looks good on paper when many are exceeded.   I was shocked to see the declaration of salaries of the Executive Management, and how some of these have increased in the past twelve months.   Gilfellan’s annual income is listed in the financial statements at just under R1 million (up by 6,6 % on the year before).  The Marketing Executives earned between R692000 – R839000 in the past year (close to R58000 – R70000 per month), salaries which seem way above the norm, especially when the industry cannot see much benefit of the work done by Cape Town Routes Unlimited!  Even the directors are paid emoluments, some as high as R26000.

In summary, Cape Town Routes Unlimited lists as its tourism marketing achievements in the past year the following: R20 billion of tourism business generated through international trade shows; organising the ’67 minutes for Nelson Mandela’ birthday celebration; close to 400 media mentions valued at R162 million, reaching 107 million persons – these are very bold claims!; Summer Welcome campaign; regional tourism road shows; organising Tourism Month; hosting VIP delegations; a green tourism initiative; SMME Marketing Support programme; receiving bookings at its Visitor Information Centers (set up in the Waterfront in opposition to Cape Town Tourism) to the value  of R2,4 million; a Google Adword campaign; a campaign with CNN; and an e-mail campaign in the Benelux countries.   Conventions are lucrative for tourism business in the Western Cape, and for Cape Town in particular, nine conferences having been secured for the next three years, to be attended by 5650 delegates, with R55 million in economic impact.

The recent upheaval caused by provincial Minister Alan Winde’s announcement that he wants to amalgamate Cape Town Tourism and Cape Town Routes Unlimited was not addressed by the Minister when he spoke at the meeting.   Cape Town Routes Unlimited Chairman Peter Bacon was critical of the separation between the two tourism bodies in his ‘Chairperson’s Review’: “… following the City of Cape Town’s withdrawal of its financial support and decision to mandate Cape Town Tourism to market the City and provide visitor support services on the ground. This effectively gave rise to the creation of a second Destination Marketing Organisation with the resultant confusion, duplication of effort and wasteful expenditure.”   Bacon does praise the closer co-operation between the Western Cape province, the City of Cape Town (which steadfastly is supporting Cape Town Tourism for the marketing of the Mother City) and municipalities in the province.   Cape Town Tourism is not mentioned by Bacon in this context.  Bacon states that the province is working on:

*  a clear vision for the development of the tourism industry

*  a single strategy with clearly defined roles, responsibilities and deliverables.

*   business plans for Cape Town Routes Unlimited,  Cape Town Tourism and other regional tourist organisations aligned to the goals and strategy of the province,

and this will lead to a Memorandum of Agreement to be signed between the Province and the City in the next twelve months, he writes.     

In his Chief Executive Officer’s Review, Gilfellan writes: “One of our organisation’s greatest achievements during this challenging year was that it established itself as a credible and authoritative voice in tourism”, on the basis of media comments requested from the organisation.   Many will question his claim.  He states that industry challenges are the following:

*   “overcoming the effects of the worse (sic) economic crisis to hit the the industry in 60 years

*   The slow pace of transformation and diversification of the industry

*   Stunted growth in our traditional core markets of the UK, Germany, Netherlands and France

*   Limited marketing resources compromising our global competitiveness, and

*   Institutional disarray leading to the current role confusion, duplication and possible fruitless expenditure.”

Gilfellan also looks to the future in his review, and calls for “a speedy resolution to the protracted institutional calamity”, referring to the problem between his organisation and Cape Town Tourism; Events, Sports and Business Tourism will capitalise on the World Cup; new target markets like Brazil, India, China, Russia, the Middle East and Africa must be targeted; a tourism community in which business, labour, government and the communities unify around a common vision and partnership;  embracing technological advances in marketing; promoting the principle of a ‘quadruple bottom line’, encouraging the tourism industry to pay attention to social responsibility, environmental sensitivity, economic imperative, and climate change.

In providing such detail to the industry, one can request Cape Town Routes Unlimited to connect with its stakeholders more frequently than once a year at a function; to allow stakeholders to ask questions so that a dialogue can be created at such functions; to inform stakeholders about achievements as frequently as possible, so that they can help spread the word about the work of the organisation (Cape Town Tourism is excellent at this);  to address the imbalance in “employment equity” by gender, occupation and population group; to improve its market research techniques, a weakness it shares with Cape Town Tourism; to contain any duplication in its marketing activities relating to Cape Town that is already managed by Cape Town Tourism; to address the non-sensical brand “Cape Town & Western Cape”;  and to speak to tourism leaders about how it can more effectively direct its marketing budget to the benefit of the industry, being Events, Events and more Events in the seasonal winter months. 

I am very impressed with Minister Winde, and how approachable he is – he has no airs and graces, picks up a phone to make a call to a tourism player with an opinion, is embracing social media with a Twitter account (@AlanWinde), and reads and comments on blogs related to tourism.  As an outcome to the presentation, hearing stakeholders reinforce how poor business is, he promised to set up a meeting to address the poor bookings issue, especially given the feedback from World Travel Market held in London last week that our country has priced itself out of the market.

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