Tag Archives: Gansbaai

New Cape Tourism Marketing conflict between province and city

One could see it coming!   The marketing of Cape Town and the Western Cape province has been a problem for the last number of years, in that the province and the city were run by the Democratic Alliance and ANC parties, respectively.  That is, until last year, when the Democratic Alliance won the city and the provincial elections.   The new MEC for Economic Affairs, Finance and Tourism, Alan Winde, vowed from the word go that he would address the strained relationship between Cape Town Tourism and Cape Town Routes Unlimited, as far as each body’s marketing of Cape Town in particular, but also of the Western Cape province, is concerned.  Now the relationship is about to become more, rather than less, strained!

One needs to go back in history to paint a picture of continuous turmoil in the tourism industry.   Initially Cape Town Tourism was marketing Cape Town, and the Western Cape Tourism Board marketed the province, a harmonious relationship existing between the two tourism bodies, one funded by the City of Cape Town, and the other by the province.   As the political parties changed, new Ministers of Tourism at provincial level tried to reinvent the wheel, and the biggest change of all was the establishment of the Destination Marketing Organisation (DMO), taking over the old Western Cape Tourism Board, as well as the marketing role for Cape Town from Cape Town Tourism, about seven years ago.   Cape Town Tourism only retained its role as Tourism Information agency.

Numerous complaints from the tourism industry about the lack of marketing visibility of Cape Town, the “gateway” to the rest of the Western Cape, were aired, and the new DMO, which became known as Cape Town Routes Unlimited, was blamed for not knowing what it was doing.   Political differences between the province and the City of Cape Town, as well as the lack of Cape Town Routes Unlimited’s marketing performance, led the City to withdraw its 50 % contribution to the running of Cape Town Routes Unlimited two years ago, leaving that body vulnerable in terms of its funding, and crippling it in terms of its marketing role.   The City signed an agreement with Cape Town Tourism, whereby it allocated its previous Cape Town Routes Unlimited funds to Cape Town Tourism, with the responsibility for the agency to market Cape Town in addition to its tourism information role.   Due to its funding cuts, Cape Town Routes Unlimited was forced to cut its marketing projects dramatically, and to focus mainly on marketing the province.

However, Cape Town Routes Unlimited did not leave the marketing of Cape Town out of its marketing strategy, and once again the industry complained about the duplication in the marketing of Cape Town by both bodies, something that the new DMO had been created to avoid.   When Winde, and his counterpart in the City of Cape Town, Felicity Purchase, met last year, the two marketing partners agreed that they would encourage co-operation and that they would avoid duplication where possible.  Winde confirmed that there would be no consolidation of the two bodies.   The industry was told that a strategy of co-existence between the two bodies would be presented to it, but no such strategy has been forthcoming in the past year.   Cape Town Tourism was forced to appoint a Cape Town Routes Unlimited director on its Board (this is not reciprocated on the Cape Town Routes Unlimited board), to ensure that the two bodies were aligned.

This week the Minister changed his mind, and made the shock announcement that he is “pushing for the speedy implementation of a new efficient destination marketing model so that the region may benefit from the current window of opportunity created by the Soccer World Cup”, reports Southern African Tourism Update.  Now this sounds like a ludicrous statement as a start – another DMO in the making, when we have one already?   Did we not just host the most amazing World Cup without integration of the two bodies?   What window of opportunity is the Minister referring to?   Why did he not get his act together, and create a united body before the World Cup, when it was needed most?   Accommodation in Cape Town and the Western Cape was not well booked for the World Cup, and the city did not have a single soccer team setting up a base camp in it.

Reading the Southern African Tourism Update article, and having been closely involved with the setting up of the DMO whilst I was Deputy Chairman of Cape Town Tourism, it sounded like deja vu.  The Minister wants to set up a new DMO, with a new “trading name”, responsible for the “marketing of the province, regions and cities within the Western Cape – as well as single tourism brand for the destination.”  This is exactly what Cape Town Routes Unlimited is meant to be, currently having the schizophrenic brand name “Cape Town and Western Cape”, all of which was criticised by the industry when it was launched about 5 years ago!

The new DMO would be solely funded by the Western Cape province, according to the Minister, and all municipalities in the province must contribute to the DMO, including the City of Cape Town, endangering the marketing role which has been allocated to Cape Town Tourism.  Members of Cape Town voted by overwhelming majority to support the acceptance by Cape Town Tourism of the marketing of Cape Town at its AGM two years ago.    Municipalities must present their marketing plans to the new DMO, it is proposed, and define how they will support the marketing activities of the DMO.  The Minister also wants to move the head office of the DMO from Burg Street to the V&A Waterfront, in a building to be called “Tourism HQ”, to be “more visible and accessible to tourists”!   Now this is something I do not understand, given that Cape Town Tourism is responsible for tourism information and accommodation  bookings, via its network of tourism bureaus around the Cape Town metropole, including Somerset West and Strand.  The first problem one saw was when Cape Town Routes Unlimited set up a “Gateway” tourism bureau at the V&A Waterfront, taking the “ownership” of it away from Cape Town Tourism, even though it is staffed by and carries the branding of Cape Town Tourism!

The municipalities were presented the new model by the Minister last week, and they have been given two months to table their response.  It is interesting to see how the new Cape Whale Coast DMO will deal with this news of the Minister, as it set itself up as a marketing agency for the coastal area stretching from Rooi Els to Gansbaai and including Hermanus.  This DMO is already making the fatal error of encouraging the members of the local tourism bureaus to become members of the DMO, in addition to being members of the bureaus.

Winde motivated his new strategy on the basis of “absolute duplication of national, provincial, and municipal marketing resulting in taxpayers’ money being spent three times in the same place”.   He stated that the Cape Town Tourism and Cape Town Routes Unlimited marketing of the city and the province caused confusion, and that the city and province did not have a clearly defined marketing strategy.

Not surprisingly Cape Town Tourism is not happy with the Minister’s announcement, and its Board announced last Friday that it will oppose the Minister’s move.  CEO Mariette du Toit-Helmbold’s words were carefully chosen when she wrote: “Cape Town Tourism has noted the proposal and embarked on a  comprehensive negotiation process with the City of Cape Town and the office of the MEC.   The Board of Cape Town Tourism has indicated that it is not in agreement with the proposal in its current format.”

She continued by stating the support of the City of Cape Town for the marketing role of Cape Town Tourism in marketing the city, exactly what the Minister proposes to change.  She wrote: “Cape Town Tourism is committed to protecting the interests of tourism in Cape Town and finding a workable solution that will most effectively realise the tourism opportunities in the city, whilst eliminating duplication and confusion. Cape Town Tourism has received reassurance from the City of Cape Town that we are and will remain the City’s tourism promotional and marketing body and that Cape Town Tourism’s structure will not change.”

It is disturbing to see that the same tourism marketing issues are being addressed again, and that tourism history is repeating itself, a waste of taxpayers’ funds in itself. It appears that every new provincial Minister of Tourism in the Western Cape sees it as his role to redesign the tourism bodies and their role, much like new Marketing and Brand Managers like to change their marketing strategies and advertising campaigns (and ad agencies at times too), just to make their mark.

This is likely to become another long drawn-out battle between the City and Province about the marketing of our precious brand “Cape Town”!

POSTSCRIPT 26/7:  Cape Town Tourism has sent out another e-mail to its members, reiterating its view about the Minister’s proposal, and has made the document available, inviting comment and input from its members:   “I informed you of the proposed centralised model for tourism marketing that was put forward by the MEC for Tourism and Economic Development, Minister Alan Winde. Cape Town Tourism has indicated to the office of the MEC and the City of Cape Town that the proposed model for a single, provincially centralised tourism destination marketing structure and brand for Cape Town and the Western Cape is patently misguided. If implemented, it will have negative consequences for tourism in Cape Town” , wrote Cape Town Tourism CEO today.

 

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

Bellavista Country House Sweet and Cape Whale Coast DMO Sour Service Awards

The Sweet Service Award goes to Bellavista Country House and Panorama restaurant, located between Stanford and Gansbaai, and neighbouring Grootbos, a surprise oasis of 5-star accommodation luxury and excellent cuisine, owned by Swiss national Georg Schwegler, for inviting WhaleTales to experience the property.   Set high up against the Waterkop mountain, the property has a lovely view onto Walker Bay, and the fynbos of the farm below.   The popular Panorama restaurant, visited by guests from Hermanus and Gansbaai, has a fine-dining menu which is reasonably priced and the food was excellent.   The restaurant is run by two chefs who previously worked at Allee Bleue in Franschhoek, and the service was professional and reactive, if a little withdrawn, whilst the wine list is extensive, with two wine list choices – top-end wines and more affordable wines. 

The Sour Service Award goes to the Cape Whale Coast Destination Marketing Organisation, for reacting to its Sour Award of 28 December by sending a lawyer’s letter stating that “not only is the content of your publication concerning our client plainly untrue, but also slanderous.   You published these statements with the obvious and clear intentions to defame our client, and bring our client’s work, standing, good name and reputation into disrepute”.  The letter demanded “an unequivocal apology in respect of all untrue and defamatory matter concerning our client.  In such written apology, you are to acknowledge the untruthfulness of your earlier statements, withdraw all imputations made, and express your regret that they were ever made”.  The writer gave 7 days for this demand to be implemented (but sent the letter to the wrong address, so it was only received 10 days later), failing which the DMO threatened to issue a summons for damages and apply for an interdict!   Nowhere in the lawyer’s letter did it state which parts of the long article it deemed to be “untrue” or “defamatory”.  WhaleTales has been around the block long enough, and has written for the media, and knows what can/may be said.  Information sources were the Hermanus Tourism Bureau, an e-mail sent to all members of the Hermanus Tourism Bureau, the DMO constitution, and the DMO website itself.   The blog post that the DMO is contesting can be read here.   The DMO seems to be short of funds, yet seems to deem it important to waste its money on a threatened court case with no foundation, and does not appear to value the country’s Constitutional freedom of speech!

The WhaleTales Sweet & Sour Service Awards are presented every Friday on the WhaleTales blog.  Nominations for the Sweet and Sour Service Awards can be sent to Chris von Ulmenstein at info@whalecottage.com.   Past winners of the Sweet and Sour Service Awards can be read on the Friday posts of this blog, and in the WhaleTales newsletters on the www.whalecottage.com website.

Power-ful war on Cape Whale Coast!

 

The Chairman of the Cape Whale Coast Destination Marketing Organisation (DMO), and also Chairman of the Hermanus Tourism Bureau, Clinton Lerm, has done an about-turn in his support of an anti-nuclear power plant campaign in the area of his jurisdiction, reports the Cape Times.  

The two proposed ESKOM nuclear power stations are to be built at Bantamsklip, 4 km from Buffelsjagsbaai and 6 km from Pearly Beach, on the Cape Whale Coast beyond Gansbaai.  The “site lies within the hottest internationally recognised biodiversity hotspot”, the Save Bantamsklip website says, and is regarded as a SA Natural Heritage Site and is a Historic Monument.  It is adjacent to Dyer Island Nature Reserve, breeding ground of the penguins, and to the Great White Shark Marine Sanctuary.

Tourism and marine life conservation bodies have been up in arms about the proposed nuclear plant, and Lerm in November expressed his support on behalf of the Hermanus Tourism Bureau to the Save Bantamsklip awareness campaign.  Furthermore he pledged R 1 000 to the campaign, and offered his services and those of his members to participate in a march against the proposed power plant in December, at which time a petition opposing the construction of the power plants was delivered to the Overstrand Municipality in Hermanus.   The petition was signed by the Managers of the Hermanus and Gansbaai tourism bureaus, which report to the DMO.

Now Lerm has withdrawn his support of the campaign, after he was called to a meeting with the Mayor of the Overstrand Municipality, the R 2,5 million funder of the Cape Whale Coast DMO.   

Last week the Mayor of the Overstrand, Theo Beyleveldt, released a statement to state that “his inquiries had found Save Bantamsklip had been “dishonest” in claiming that several organisations had supported its views.    Beyleveldt claimed that Dyer Island Cruises had also turned against the Save Bantamsklip campaign, but its head Wilfred Chivell angrily negated this, saying :”There is no way I will back off from supporting Save Bantamsklip.  This nuclear power station will be horrible for tourism and I will fight this menace”!  Chivell is a founder member of Save Bantamsklip. 

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

DMO causes a whale of a tourism splash in Hermanus

The tourism industry in Hermanus and related towns is up in arms about the new Cape Whale Coast Destination Marketing Organisation (DMO), a body which was formed more than a year ago to market the whale coast from Rooi Els to Gansbaai.  

Whilst the mandate of the DMO is to market the Whale Coast, with monies supplied from the Overstrand municipality, generated from rates/taxes/levies on tourism businesses, according to its constitution, the DMO now is opening up an information kiosk in Hermanus, from which they will be taking bookings.  To receive such bookings, members of the Hermanus Tourism Bureau, and other bureaux along the coast, must become members of the DMO as well, at an additional R 600 annual membership fee.

The irony is that the Hermanus Tourism Bureau had to send out the e-mail to its members, inviting membership of the DMO, offering such benefits as a discounted cost to distribute members’ marketing material at trade shows and for marketing and advertising projects, free listing on the Whale Coast website, and free brochure and collage display at the new Market Square Info kiosk, in competition to itself.   These should be standard benefits to members of the Hermanus Tourism Bureau.

The criteria for membership state that one must pay the DMO a commission of 12 % (this is an unusually high rate, as 10 % is the norm. Cape Town Tourism charges 11 %) ; that one must be a member of a tourism bureau in the Cape Whale Coast area; and that one’s property must have a departure or zoning.

This means that all existing tourism bureau members, paying a membership fee to the Hermanus Tourism Bureau of R 520 for a medium-sized guesthouse/B&B must now pay another R 600 to the DMO to receive bookings from the new kiosk, in competition to the Tourism Bureau’s offices in Mitchell Street!   The Overstrand tourism bureaux receive a small grant from the DMO, out of its annual budget of R 2,5 million, and they are therefore reliant on making up the rest of their funding from the commission they receive for bookings made.  This is a serious threat to their funding, in Hermanus in particular, as the tourism bureau is not close to the whale watching spots.

According to the Constitution of the Cape Whale Coast DMO, all business owners paying rates and taxes are automatically members:  “Member” means a registered owner of an erf on which assessment rates are payable due to business which may, or is being conducted on that erf and such rates have been paid to the Municipality for the previous municipal financial year (or current financial year for 2007/8), and/or a person who is paying rental on that erf”.  This means that all ratepayers are members automatically, and cannot therefore be double-charged!

The DMO Constitution lists 21 objectives that the DMO must meet, and one of them says: “to maintain effective tourism bureaus in the region”.  It does not have an objective to create its own tourism bureaus, or to be booking agent, according to its Constitution.  Its role is a Marketing one predominantly. 

If the Cape Whale Coast DMO is modelled on Cape Town Routes Unlimited, the provincial marketing body, which is also a destination marketing organisation, then it is making a mistake!  Cape Town Routes Unlimited does not have members, and does not take bookings – it leaves this to Cape Town Tourism and all other tourism bureaux in the province.   It is a marketing body and focuses on marketing the Western Cape province.  This is what the Cape Whale Coast DMO should be doing too.

A further gripe is that the Whale Coast DMO spends too much of its budget on publications and advertising, and too little on web-driven marketing.    One of the DMO’s stated objectives is to “develop and maintain a world-class website” – this objective has not been met, as the website can not be called world class.

Of even greater concern is that Clinton Lerm, of the Misty Waves Hotel in Hermanus, is the Chairman of the Hermanus Tourism Bureau, and of the Cape Whale Coast DMO, which means that any concerns that members of the Hermanus Tourism Bureau have about this or any other arrangement relating to the DMO cannot be fairly dealt with, due to the conflict of interests.  Lerm and his mother Maxie put up a strong fight to be elected to the board of the DMO, which raised many hackles at the time.  Maxie Lerm is in charge of the Public Relations of the DMO, which should not be handled by Board members.  The promise that a full-time CEO would manage the DMO, as per the Constitution, within a year of establishment of the DMO, has not been met.

The Cape Whale Coast website www.whalecoast.info shows another conflict of interest, in that the Lerm’s Misty Waves Hotel is featured in an ad on the Hermanus page, and is listed on the right hand side of the page as well.   Further ads for Misty Waves Hotel appear on the Home page, the Resources page, the News page and the About page.   At no stage since its inception has the DMO offered members of the Tourism Bureaux the opportunity to place ads on the website.  All other accommodation properties are listed by name over 4 pages, with a street address and telephone number, if one clicks onto a general Accommodation page. 

The Cape Whale Coast proudly lists Fernkloof Nature Reserve as the first of its “Resources” – the nature reserve has seen four bad attacks on hikers in the past few months, and the one on a Canadian couple, who are ex-South Africans, earlier this week has been communicated around the world, not being to the PR benefit of Hermanus at all!

A further oddity is that the Hermanus Tourism Bureau does not have one conglomerate website, but has various websites for accommodation, restaurants, activities, and arts, e.g. www.hermanusaccommodation.com, www.hermanusrestaurants.com.   The Bureau says it is working on building one website for all its separate parts, which would give it far greater search engine optimisation.

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