Tag Archives: job creation

Earth, Wind and Fire and all that jazz blows at Cape Town International Jazz Festival!

The 12th Cape Town International Jazz Festival, taking place in Cape Town from tomorrow, is estimated to inject R475 million into the economy of Cape Town, to contribute R685 million to the GDP of South Africa, and has created 2000 jobs, reports the Cape Argus.  The headline act is Earth, Wind and Fire, and 42 artists will perform at the Jazz Festival, half of them from Africa and the rest from other countries.

Last year the International Jazz Festival attracted 34000 jazz lovers over two days, making it the single largest event in Cape Town, said Joey Pather, the CEO of the Cape Town International Convention Centre, inside and outside of which the Jazz Festival takes place.  President Jacob Zuma acknowledged the economic importance in terms of income and job creation of the Cape Town International Jazz Festival during his State of the Nation address in February. 

The attendance is expected to grow when the Convention Centre expands its capacity.   Sponsorship of the Jazz Festival has been under pressure, especially last year, due to the World Cup, but 95 % of the tickets have been sold to date.   More visitors to the Jazz Festival are from Gauteng, with the Western Cape surprisingly having the lowest number of Jazz Festival attendees.   About a quarter of all attendees are from overseas.

The spokesperson of the Western Cape Department of Tourism said that the direct benefit of the International Jazz Festival is R 43 million, spent on flights, hotels, restaurants, shopping and other expenditure. The CEO of S A Tourism, Thandiwe January-McLean, praised the contribution of the Jazz Festival: “South African Tourism takes great pride in supporting this world-class event that has helped showcase our country as a (sic) unique lifestyle and musical destination”.

Some of the acts performing at the International Jazz Festival include Youssou N’Dour, Gang of Instrumentals, Chad Saaiman, Mathew Moolman, Lloyd Jansen, Hugh Masekela, Larry Willis, David Ledbetter and the Clearing, and Bebe Winans.  Some ‘concept bands’ will be created especially for the Jazz Festival, such as the ‘Tribute to Oscar Peterson’ concept band, which will consist of Jack van der Poll, James Scholfield and Hein van de Geyn, and play Peterson’s repertoire.  Guitafrika is another concept band, and consists of beloved local guitarist Steve Newman, Eric Triton from Mauritius, and Alhousseini Mohammed Aniviolla from Niger.   The Cape Town Tribute Band will be put together to do exactly that, paying tribute to the many jazz musicians who passed away in the past year, including Tony Schilder (‘Montreal’), Winston Mankunku, Robbie Jansen, and Hotep Galeta (‘Harold’s Bossa’).   The fourth concept band includes bassist Victor Masondo, and will see him perform live – he was recently invited to perform at the Duke Ellington Jazz Festival in Washington.   The ‘concept bands make the festival unique.  People have the opportunity to see bands that they are unlikely to see somewhere else or in their lifetime” said Rashid Lombard, the creator and Festival Director of the Cape Town International Jazz Festival.

Cape Town International Jazz Festival, Cape Town International Convention Centre, Cape Town.   www.capetownjazzfest.com  25 -27 March.  Book at Computicket.

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

Beyond World Cup 2010: making SA a winning nation!

A media conference called by Dr Laurine Platzky, Western Cape Deputy Director-General Governance & Integration and 2010 FIFA World Cup Co-ordinator, and the World Future Society of South Africa, on Monday highlighted the way forward for South Africa in the next twenty years.   The positive ethos and energy generated by the World Cup will stand South Africa in good stead to maintain its level of excellence into the future, said the speakers.

Mike Lee, Founder of the World Future Society of South Africa, focused on the legacies of the World Cup.  The Rainbow Nation-building benefit is an “historic bridge”, connecting South Africans. It is a “moment in our destiny”, and paves the path to our country’s future, he said.  He highlighted five priorities for South Africa for the period until 2030 :   1. Improve the country’s ethics and standards   2. An economy growing at 7% per annum, to “meaningfully reduce poverty and unemployment”  3.The education system must be reformed   4. The ecosystem must be rescued   5. The country must undergo an energy revolution, moving away from coal-based energy to renewable and nuclear energy.   “The World Cup has renewed our licence to dream”, Lee said.

Dr Platzky focused on the legacy of the World Cup, and this was the infrastructure improvements, she said, Cape Town Stadium having become an iconic asset of the province.   She admonished local businesses for not having embraced the event well enough in bidding for the manufacture of memorabilia and clothing, rather than letting the contracts go to the Far East.   She said that the construction and hospitality industries had been the biggest winners of the World Cup, and stated that South Africa had been cushioned from the worst ravages of the recession because of hosting the World Cup.   The event has also led to “social cohesion”, creating an exceptional memory for school children, who will remember the event for their rest of their lifetime, and who also had the opportunity to learn about 31 other participating countries in their school projects, and also about other cities and towns in South Africa.   The legacy of the World Cup is also environmental, she said, with 41 “Green Goal” projects focusing on the long-term sustainability environmentally.   These projects will be taken to Brazil for the 2014 World Cup as well. She also mentioned that South Africans should proudly take recognition for their achievements in hosting the World Cup so successfully, rather than sitting back for the international media to tell us so.

Guy Lundy is the CEO of Accelerate Cape Town, and his first observation was the good winter weather during the World Cup – 5 sunny days and only 3 rainy days on match days – proving that Cape Town should not have tourism seasonality.   He also felt that ex-South Africans should no longer have to be apologetic about their country of origin, and should be proudly calling themselves “South Africans living abroad”.   He predicted an increase in wine sales due to the World Cup, and Cape Town’s marketability as a skills outsourcing centre.    He predicted that the World Cup would improve Cape Town’s chances of winning the 2014 World Design Capital bid.   The World Cup must lead to greater job creation, he said, and South Africans must become more positive, in not always waiting for the next disaster.   He said the country had an enormous potential to improve due to the World Cup.

Merle O’Brien is the Deputy President of the World Future Society, and spoke about the World Cup “gees” creating “social cohesion”, in making a collective “we” nation and society of South Africans.   The ethos of South Africans now would be Ubuntu and Ke Nako, the human spirit that will connect locals that are no longer commercially-driven but rather spirit-driven.

In question time, Dr Platzky was challenged about the duplicity of market research which is currently taking place in Cape Town (the Western Cape Province, Cape Town Routes Unlimited, the City of Cape Town, and Cape Town Tourism), all conducting unprofessional informal research and using these results to make media announcements on the basis thereof.  She agreed that the 50 interviews done by her department at the airport last week “was a bit of a joke” (even though the “9/10 rating” became the lead front-page story of the Cape Times).  She confirmed that professional research would be conducted to establish the benefits of the World Cup for Cape Town and the Western Cape.

More details about the World Future Society of South Africa can be found at www.wfs-sa.com.

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

Domestic and Africa tourism focus of new tourism strategy

The Minister of Tourism, Marthinus van Schalkwyk, has tabled his draft Tourism Strategy for the period up to 2020, and is to focus on the middle income earners of South Africa, and tourism from Africa, in a move to stimulate tourism, reports Business Report.  

In an interesting move, the Minister has announced that he has been in discussions with trade union federation COSATU in developing resorts for workers, to encourage them to become tourists.   This would mean government owned but private sector run “proper resorts for people with modest income”.  

In the next ten years, the Minster said, 1,6 billion tourists could be expected, spending R43,5 billion.   From Africa alone 77 million tourists are expected in ten years from now, and Nigeria and Angola in particular.   The Minister reiterated the importance of partnerships with other African countries, citing recent memorandums of understanding that have been signed with Kenya and Zimbabwe.

Van Schalkwyk is hoping to achieve an increase in contribution to the GDP from R 64,5 billion in 2009 to R 125 billion by 2015, with the aim of job creation in the tourism sector rising from 575000 in 2009 to 800000 in 2015. 

One wonders how accurate the Minister’s projections will be for the next 10 years, given how badly incorrect the estimates for the international attendance at the World Cup have been from his department via the tourism consultancy Grant Thornton.  The international attendance at the World Cup is said to be close to half of the original estimate.   One also hopes that the Minister will consider which existing resorts could be redeveoped for the domestic tourism market, rather than building new ones.

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

International World Cup soccer fan attendance halves

The boom projection of foreign attendance of the World Cup of 483 000 has been revised to a still-optimistic 373 000 by Grant Thornton, the tourism consultancy that created the original projection about 3 years ago, a drop of 23 %, reports SA Tourism Update.

The Grant Thornton estimate contradicts the FIFA estimates that the number of international soccer fans attending matches in South Africa has dropped by almost half, from 500 000 to 220000, reports The Times.

Based on the original optimistic international soccer fan attendance, the hospitality industry saw $-signs , and actively renovated their establishments, and put excessive price tags onto their properties.  Private home owners did quick renovations of their properties in the major cities, and planned to travel overseas during the World Cup period, spending their rental income, only to find the rental market being almost non-existent for the World Cup, given the over-supply of accommodation.

MATCH, the accommodation and ticketing agency for FIFA, also greedily added a 30 % surcharge onto the accommodation it contracted, and will have added similar commission rates to transport, flight and ticket prices, giving South Africa a dreadful label of “rip-off” pricing in the international media.  It is the fear of the excessive costs as well as the soccer fans’ fear of the perceived crime risk, that has kept soccer fans away in the main, report the international media.

Grant Thornton only revised its international attendance projections in the last month, when it became clear that MATCH could not sell all its contracted rooms, and gave them back to establishments, and that more than two-thirds of the tickets sold to date are to South Africans.  Even World Cup sponsors and football associations have not been able to sell all their tickets, and have returned them to MATCH.  

One wonders why it took Grant Thornton such a long time to revise the estimates, as its first estimate set the expectations for the hospitality industry.   The tourism consultancy now blames the credit crunch (which has been around for 2 years) and the distance of our country from the qualifying nations as the main reasons for the poor international bookings.  It also says that accredited Tour Operators also did poorly in selling packages.   Such Tour Operators had to pay $ 30 000 for a licence fee per country in which they were looking to sell packages, reports The Daily Maverick.

MATCH cancelled 1,3 million room nights out of the 1,9 million it had originally contracted, reports SA Tourism Update.    Many of the rooms released were in Zimbabwe, Mauritius, and in smaller local country towns (e.g. Plettenberg Bay, Hermanus).  The Protea Hotel Group has had 60 % of its rooms returned, in Cape Town, Durban and smaller towns, having originally been forced to allocate 80 % of their rooms to MATCH.  The Kruger National Park had 25 000 room nights returned.

Grant Thornton is trying to put a positive spin on the tourism benefit of the World Cup, by claiming that the average length of stay now is 18 days as opposed to 14 days as estimated originally, and that the average spend per trip would be R 30 200 as opposed to the originally estimated R 22 000.  On average, international soccer fans will watch 5 World Cup  matches, as opposed to the 3 previously estimated.

Attendance by African soccer fans has fallen to an estimate of 11 000, in what was meant to be an “African World Cup”, reports Business Report.    High ticket prices and lack of access to credit cards and the internet in other African countries has been blamed on the poor support from this continent.   It had originally been estimated that 48 000 African soccer fans would attend the World Cup, which still would not have been a satisfactory attendance level.

Grant Thornton in 2007 estimated the impact of the World Cup on the economy of R21,3 billion, with 159000 new jobs created.   International consultants Morgan Stanley published an estimate two months ago, of 350000 international fans attending and the local economy benefit being R15 billion.  The government has spent R33 billion on the tournament, for the building of stadiums and upgrading its infrastructure around the country to date, reports The Times. 

Grant Thornton now says that no new jobs appear to have been created due to the World Cup, but that it has prevented job losses, reports Business Report.   An estimated 2,5% – 3,5 % growth in the GDP of South Africa has been drastically reduced to 0,54 %.   Many fans have chosen to book via the internet, and are booking at B&B’s and guest houses, rather than hotels, and therefore are not booking via the “official MATCH-hosted channels”, says  Business Report.

FIFA President Sapp Blatter will be staying in the 5-star Michelangelo Towers during the World Cup, while the rest of his FIFA entourage of 200 will be accommodated at the Michelangelo Hotel next door, reports The Times.   Herr President’s requirements are a minibar stocked with South African wines, which is a good boost for the local wine industry, but the ice cubes in his fridge must be made from Evian water.  He will be protected by 5 bodyguards.   While sponsors’ products are meant to be used, which would mean that Blatter would have to drink Coca Cola’s Bonaqua, he is breaking protocol by drinking imported San Pellegrino mineral water.

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