Tag Archives: Mayor Patricia de Lille

New Cape Town advertising campaign: ‘You don’t need a holiday, you need Cape Town’!

Last night Cape Town Tourism held its AGM with a record attendance of more than 650 members as well as Twitter-invited guests, the interest being high due to the eagerly awaited advertising campaign the industry was promised.  It was a very fast presentation of the campaign highlights, but not an actual campaign, and received mixed reaction.

Mayor Patricia de Lille set the scene, motivating the campaign by saying that the double dip recession means that new tourism markets must be found, and that we must change how we do business, and which business we attract to Cape Town.  We must draw people to work and live in Cape Town, and not just to visit as tourists. She said that the campaign speaks to our needs, is simple, changeable, gives the city new energy, and repositions it. Chairman of the Board and head of ACSA in Cape Town, Ian Bartes,  confirmed the world economic crisis, and that it has impacted negatively on long haul travel, meaning that Cape Town and Cape Town Tourism must be redefined.  He said that the company has to be made ‘future-fit’, a term used a number of times, and therefore duplication was reduced, the company was restructured, efficiency was increased, and overheads reduced, to drive Cape Town to be the top city in Africa by 2020.  Cape Town must be positioned as the city to visit, to live in, to do business in, and to study in.  Board member Claus Tworeck presented the financial statements, and stated that tourism is not for ‘sissies’.  His figures showed that Cape Town Tourism has received a grant from the City of Cape Town of R40 million for the current financial year, and is aiming to make another R6 million in self-generated income. R18 million is going to salaries (i.e. R1,5 million per month, an extraordinary high salary bill), with R27 million remaining for ‘other operating expenses’, the marketing budget not being split out of this figure.   The Discovery/National Geographic campaign is known to cost Cape Town Tourism R8 million, and a figure of R3 million was mentioned by an advertising agency executive for the budget for the advertising campaign, a figure which seems minimal, and would only buy domestic coverage, as a ‘feel-good’ campaign for Capetonians, it was suggested!  Interesting was the mention by Cape Town Tourism legal advisor Mike Evans of Webber Wentzel, who mentioned financial ‘wrong-doing’ by the organisation’s previous Financial Manager (and Deputy CEO), and that Cape Town Routes Unlimited will close down, and therefore one of the resolutions called for the future exclusion of an ex officio representative of the tourism body, initially planned to allow communication between the two bodies, and to be replaced with a representative of the City of Cape Town, being its major funder.  It was interesting to note that not one question was allowed during the two and a half hour presentation, not quite how an AGM should be run!

Cape Town Tourism CEO Mariette du Toit-Helmbold took us through old territory, already covered in its Brand Cape Town and the ‘Strategic Plan’ presentations, justifying its new focus on ‘urban travellers’, making up more than 70 % of tourists, she said. She said there is not enough knowledge about Cape Town, and perceptions about its expense and poor winter weather need to be changed.  The goal is to get back to tourism figures of 2007, and to regain 10% of South African visitors in Cape Town by 2016.  The new VMMS booking system via Nightsbridge is up and running for small accommodation establishments.  A new tiered membership scheme is to be introduced, to attract more businesses as members. She spoke about the joint Discovery/National Geographic campaign with Durban, Johannesburg and SA Tourism, negotiated by its Australian consultant Ian Macfarlane, as if it has been approved, but my call yesterday to Durban Tourism demonstrated that this campaign is far from certain and approved, at least as far as the other areas are concerned.  If run, it would include print articles too, as well as a Discovery-funded film school, teaching young talent about film-making, and using the footage generated for Cape Town Tourism and on Discovery.  A ‘My Cape Town’ campaign was run to instill pride in locals about their city. Mrs Helmbold announced that a new Cape Town clothing range is to be launched, as well as a Cape Town City Card.  A joint Cape Town media and guest relations programme is to be launched with SA Tourism and SAA.

Getting to the advertising campaign, Mrs Helmbold said that it should stimulate demand, disperse visitors across the city, and increase their spend while they are on holiday. The campaign must move away from the stale representation of Cape Town, to one that showcases the real depth of Cape Town, against the backdrop of our ‘home’. The campaign will be launched at World Travel Market in London on 7 November, and Cape Town Tourism will look to partnering with international airlines, to offer packages.  Short city-break packages will be offered, and an (unreadable) Events year-round calendar was flashed on the screen. Historic sites, including the fan walk, will be linked via walks. The number of Visitor Centres will be reduced down from 18 currently, to a ‘handful’, representing 50 % of the budget. The essence of Cape Town is ‘the unexpected city’, no longer focusing on our city’s natural beauty, and that it is the gateway to more beauty in the areas surrounding Cape Town.  Ogilvy Cape Town was challenged to not produce traditional advertising and boring travelogues.  At the core of the campaign is that ‘Cape Town is the urban tonic to put life back into your life’. Visiting Cape Town will create a number of benefits, incorporated in the campaign:

*  ‘Cape Town: I was here for five star menus and I left with a secret recipe’

*   ‘Cape Town: I was here to play and I found a place to work’

*   ‘Cape Town: You go there for beautiful landscapes, and you find beautiful people’

*   ‘Cape Town: I wanted to change Cape Town, but it changed me’

The campaign was described as cheeky, presenting the warmth of its people, representing its proximity, authenticity and intimacy, and highlighting that Cape Town is a city of mind and being.  The pay-off line ‘You don’t need a holiday, you need Cape Town’ is extended into a business application: “You don’t need a conference, you need Cape Town”.

The campaign was presented in a rush, in an audio-visual, with print ads, bus shelter advertising, and more shown.  No mention was made of the campaign budget, the target market, and the cities/countries in which it would be run. As we left the Cape Town International Convention Centre venue, we were handed a yellow envelope, which contained a Campaign Strategy diagram.  In the media release, Mrs Helmbold is quoted as follows: “The marketing campaign is about more than just attracting tourists.  It’s about incorporating business and investment, the creative and innovation sectors and academia into one vision and direction: economic growth , job creation and inclusion to the benefit of all citizens”. In 2008 Cape Town Tourism was tasked by the City of Cape Town to lead a brand positioning process, focusing on that which makes the city unique. Industry workshops were held, and the Cape Film Commission, Accelerate Cape Town, and the Economic Development Programme were involved, to create a city brand for the residents of Cape Town, as well as its tourists, businesses and students.

None of the persons I spoke to after the presentation raved about the campaign.  They seemed luke warm, some stating that too much information about the campaign was thrown at the audience in too short a time. One design specialist could not believe that the campaign was nothing more than an ‘old-fashioned’ print campaign, and he missed the new media connection to it, which should have been the foundation, in his opinion. It was uncertain whether there would be TV advertising, as we were not shown a TV commercial. An ad man, whose agency had been involved in the pitch for the account, said it was nothing more than a ‘feel-good’ campaign for Capetonians, and he seemed a little angry that agencies had been asked to pitch for the account, when it was probably just a tactic to give Cape Town Tourism’s ad agency a shake.

The campaign will make Capetonians even more smug and proud to be living in this beautiful city.  Whether it will make more tourists, businesspersons, students and new residents come to Cape Town to visit and to live here remains to be seen.  Our counter to the campaign: You don’t need an Advertising Campaign, you need Cape Town!

Read the full speech by Mrs Helmbold here.

POSTSCRIPT 18/10: The Cape Times headline today about the Cape Town Tourism campaign, “When a holiday isn’t just a trip, but tripping on Cape Town”, could easily be interpreted to mean something that probably wasn’t intended, and would not be good for the image of the city.  Oddly, the article quotes the Cape Town Tourism PRO Skye Grove as saying ‘that the cost of the campaign has not been determined, but that the body’s annual budget would be aligned to it’. No ad agency would design a campaign without a budget for it, and therefore one wonders why Cape Town Tourism is not divulging this information.  We have written to Mrs Helmbold, asking her for the budget, and to confirm the information about the Discovery/National Geographic campaign budget approval, but we have not yet received a reply from her.

POSTSCRIPT 11/11: I came across this You Tube video ‘interview’ by Cape Town Tourism Communications Manager Skye Grove with her boss Velma Corcoran, the Marketing Manager of the tourism body, at World Travel Market in London over the weekend.  The interview does not give one a feeling of Mrs Corcoran’s ability to market the city, the interview reflecting her lack of confidence and initiative, not making much eye contact with Ms Grove during the interview.  By contrast, a similar interview conducted by Ms Grove with Mary Tebje, Cape Town Tourism’s international media representative in the UK, was far more impressive.  Ms Tebje exudes confidence and sounds very knowledgeable about the UK market, and what it expects from Cape Town as a tourist destination.

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

Design faux pas embarrasses City of Cape Town Mayoral Tourism, Events and Marketing’s Pascoe

City of Cape Town Mayoral Committee Member for Tourism, Events and Marketing Grant Pascoe must feel like a prize fool, having had his name splashed in the Cape Times, on two consecutive days, about the faux pas of the threatened cancellation of the funding support for the Design Indaba and Cape Town Fashion Week.  After a major outcry, the City has reversed its decision.

On Monday it was reported that the ’embarrassment‘ and ‘possible PR nightmare’ caused by the City’s funding cut of these two prime events could be a serious threat to the bid by Cape Town for World Design Capital 2014, especially given that respected Design Indaba founder Ravi Naidoo had been on the presentation programme for the Design Capital judges’ visit.  Valuable tourism income generated as a result of the Design Indaba, which sees the world’s leading designers coming to Cape Town to attend the annual conference linked to the Design Indaba, was threatened by the funding cut, as it was planned to move Design Indaba to Johannesburg as a result.  Intervention was made by the Cape Town Partnership, compilers of the 18-month long World Design Capital 2014 bid for Cape Town, addressed to Mayor Patricia de Lille, calling the funding cut a ‘possible crisis’.  “Just as we are preparing the final push for World Design Capital 2014, and literally drafting the mayor’s speech for Taipei on 26 October, the city seems to be sending out the message that it is cancelling its support for design and creative industries”, Cape Town Partnership CEO Andrew Boraine wrote.  R700000 is allocated to the Design Indaba annually by the City.  ‘Inspiration’, and linked to it design and creativity, are the pillars of Cape Town Tourism’s new positioning for Cape Town.

Yesterday the Cape Times reported that the red-faced Pascoe blamed the funding cut on a ‘misunderstanding about the city’s sponsorship of the Design Indaba and Cape Town Fashion Council (or Fashion Week)’, and stated that the City would find funding for both the events.  Letters announcing the funding cuts had been sent to the two design bodies ‘in error’, and have now been withdrawn, he is quoted as saying, with an apology from the City for the confusion caused.  He did, however, add that the full events portfolio will be reviewed in the next two months, to ‘bring them in line with the (unexplained) city’s mandate‘.

The Design Indaba and Cape Town Fashion Week have been estimated to contribute more than R500 million to the economy of Cape Town.

One hopes that Pascoe will review the effectiveness of the City of Cape Town’s R40 million expenditure by Cape Town Tourism too, some of which appears to be going to sponsoring wasteful events with dubious tourism benefits for the city, and the appointment of Australian ‘Strategetic Consultants’ to help it do its marketing work. Pascoe has declined all correspondence from ourselves on this topic by e-mail, has not returned phone calls, nor has he reacted to Twitter messages, making one wonder what interests he has to protect.

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

World Cup anniversary: focus on ‘CapeAbility’- infrastructure benefit, tourism loss!

Today the World Cup 2010 started a year ago.  While many may remember the wonderful 30-day period nostalgically, the hard reality of this largest world event is attracting criticism in its impact on the hospitality and tourism industry, which has reached its lowest low, something other mega-event cities have experienced before.  The event was commemorated yesterday with the launch of a new coffee table book ‘CapeAbility: Stories and Successes from the 2010 FIFA World Cup’.

The infrastructure benefits of the World Cup cannot be denied : Cape Town has a renewed station building, a world-class airport, and far improved access into and from the city on its N1 and N2 highways. It has a beautiful Cape Town Stadium, which has become a tourist icon for the city in itself.  It has a most wonderful Green Point Park, which was developed next to the Stadium, as well as a general upliftment of the Green Point and Mouille Point area.  It led to the roll-out of the recently completed and far improved public transport MyCiti service.  It added more international hotel brands to the city’s five-star hotel portfolio.  It created an Ubuntu amongst Capetonians and the city’s visitors, on its festive flag-decorated Fan Walks.  It positioned Cape Town, and South Africa with it, as a safer country than had been perceived before.

But the downside appears to outweigh the benefits a year down the line: there is no operator for the Cape Town Stadium since SAIL Stade de France reneged on its contract with the City of Cape Town.  Cape Town ratepayers will have to carry the cost of operating the Stadium, not making ends meet with the few events that have been hosted in the venue since July last year.   The tourism industry suffered poor pre- and post-event bookings last year, and  was led to believe that it would benefit from a tourism boom that would last for years to come.   The industry was conned by MATCH, the FIFA accommodation booking agency, with massive cancellations just days before the start of the Wold Cup.  Surprisingly, the industry is experiencing its worst ever year, and even more surprisingly, Cape Town Tourism told its members yesterday that it was to have been expected, given the Sydney experience – a 5-year slump after the 2000 Olympic Games, largely because the city tourism authorities assumed that no marketing was required after the widely publicised event.  Cape Town appears to have made the same mistake, an error which is compounded by the poor UK economy, the largest tourism source market for the city, the strong Rand, and high airfares.

Not unsurprisingly, tourism consultants Grant Thornton, who badly overestimated the World Cup tourism numbers, praised the R40 billion national capital expenditure on the World Cup, the consultancy’s Gillian Saunders saying it was money “well spent, with some areas still to be leveraged”, reports the Cape Times. She states that the infrastructure benefit had ‘significant legacy value leading to a better quality of life and provided long-term valuable assets’.  She admitted that the slow recovery from the global recession was responsible for the lack of the tourism boom which had been predicted.  Yet she said that “a large number of tourism businesses would not have survived the economic slump if it weren’t for the event”.  She reminded the industry that R3,6 billion revenue had been generated and that just more than 100000 tourists had visited the Western Cape, and just more than double this number visited Gauteng.

Cape Town Tourism has blamed SA Tourism for focusing too much on wildlife and the natural beauty of the country, and too little on its cities, in its marketing of the country.  The World Cup had created a greater city focus, but this has not been sustained by SA Tourism in its post-World Cup marketing, Cape Town Tourism says.  To strengthen brand Cape Town, Cape Town Tourism proposes that the “city’s urban identity, innovative outlook, entrepreneurial spirit, academic excellence and pioneering medical and science sectors must be added to the brand palette in order for it to effectively compete in the domestic and global market”, in addition to its leisure tourism positioning, it is reported in BizCommunity.com.

The Cape Argus yesterday ‘shouted’ in a headline:”Post-World Cup tourism boom ‘non-existent'”, stating that the benefits have been the international performers who held concerts in the Stadium, the city’s improved infrastructure, and the survival of a number of tourism businesses.  It quotes Cape Town Tourism as saying that Cape Town is in a ‘brand vacuum’.  The annual operating cost of the Stadium is quoted as being R57 million.  Two concerts have been booked, and a further two are in the pipeline, according to the city’s new head of Tourism, Grant Pascoe.   Talks with Western Province rugby continue, he said.   He added that the city is receiving more event applications than it did prior to the World Cup. Developing the Fan Walk into a 24/7 facility is also being considered.  The oversupply of hotel accommodation can be attributed to nine new hotels with 1500 rooms in total, which were built for the World Cup, says Dirk Elzinga, Chairman of FEDHASA Cape.  He naively states that many hotels have already received repeat World Cup business, and that the ‘extremely low occupancies’ of some hotels ‘was normal for the off-season’!

Launched by Premier Helen Zille and Mayor Patricia de Lille, the ‘CapeAbility’ book documents the ‘planning, delivery and effect’ of the World Cup on the Western Cape, says BizCommunity.com.   The book “makes every effort to extract honest lessons to understand the hosting of such mega-events better.  It is designed therefore not as a memento of the event, but a review of what worked, what didn’t and what could be done better and become a guide to hosting future events”.   “The book is meant to play a marketing role and points out that it is crucial that opportunities, such as the World Cup, are converted into more than just short-term profits for a small tourism and events sector, but into huge brand building opportunities for a country”. 

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