Tag Archives: Michael Bagraim

December Cape Town tourism performance information contradictory!

Tourist attractions in Cape Town reported an increase in visitors during December, but Cape Town International airport bucked the trend, announcing a reduction in passenger arrivals in December 2012 relative to December 2011.

Cape Town International saw a 10% decline in passenger arrivals, which the Cape Chamber of Commerce and Industry has blamed on SAA cutting its London – Cape Town route.  The Chamber has been known to make incorrect statements relating to the tourism industry in the past, especially in the term of its previous President Michael Bagraim, not appearing to have a good grasp on the Cape tourism industry.  We have not had any feedback from tourists complaining about not being able to get to Cape Town, given that BA and Virgin fly direct from London to Cape Town, and a number of other direct flight options as well as those via Johannesburg are available to tourists at varying prices.  A report by the Cape Times quotes Airports Company South Africa Deirdre Davids as saying that passenger arrivals increased by 7% in December 2012, and that international arrivals increased by 17%, but it does not state which period the increases are relative to.

Quick to jump on the tourism bandwagon, but not always knowledgeable about the industry he is meant to represent on the City of Cape Town’s Mayoral Committee, is Councillor Grant Pascoe, who issued a media release in December about the City’s November tourism performance, adding up the visitor numbers for the Big Six City tourist attractions, and coming up with a figure of ‘over 2 million people’, without taking duplication of attraction visits into account!  The media release comes from the City of Cape Town’s ‘Integrated Strategic Communication and Branding Department’, but does not have an author, its poor writing comparing with the poor media releases generated by Cape Town Tourism!

The media release reported the following visitor numbers in November 2012:

*   V&A Waterfront: ‘over’ 1,8 million

*   Table Mountain (Cableway, one assumes that this is the measured entity, but it is not specified by Pascoe): ‘just over’ 90000

*   Kirstenbosch Botanical Gardens: 70745

*   Cape Point: 37600

*   Robben Island: 31870

*   Groot Constantia: ‘over‘ 20000

The Cableway reported that it had achieved its best ever ticket sales of 119000 in December 2012 (it ran a price reduction promotion for locals to thank them for voting Table Mountain as a New7Wonders of Nature at the beginning of December!), and on Boxing Day 7500 visitors went up the mountain, its best day of the month.  Similarly Kirstenbosch increased its numbers, at 82000.  Robben Island ticket sales have been on a downward trend since 2010.  The V&A Waterfront claimed to have received 3 million ‘visitors’ in December 2012, reported Business Day, an increase of 10% on December 2011, claimed the V&A Waterfront CEO David Green.  This implies a 67% increase relative to November 2012! One wonders how the Waterfront measures the ‘visitor numbers’, and what percentage of these are in fact Capetonians shopping there, and going to the movies or eating out, as we have written before.  The V&A used to have a counter on the road at its entrance, but it is not visible any more.  This could make the V&A figures misleading as far as its tourism visitorship is concerned!

If Cape Town International is reporting a 10 % decline for December, and the local tourist attractions reported an increase in visitor numbers, it means that the Cape had more local (Western Cape) visitors to Cape Town, and South Africans who drove instead of flying to Cape Town, possibly due to excessive airline prices, even for domestic flights, and car rental costs.

Once again Cape Town Tourism CEO Mariette du Toit-Helmbold referred to Seasonality, paying lip service to fixing the problem, as she does year after year: ‘We need to work really hard and continue the effort to promote Cape Town as a year-round destination and encourage visitors to travel out of the peak season so we can extent (sic) our season all year round‘, reported EWN!  Interesting is that Cape Town Tourism admitted that Cape Town could not cope with the tourism numbers over the Festive Season, with rental cars sold out, limited parking, and increased traffic, said its PR and Communications Manager Skye Grove, according to a report in the Cape Argus, a predictable problem, but one which Cape Town Tourism did nothing about, all its top management having been on holiday over this period!

The publicity surrounding the December tourism performance is interesting, as the month has a summer seasonality component, as we are seeing for each of the summer months, with the exception of February.   So, for example December had two very poor weeks in the first half, and Cape Town only filled up just after Christmas, therefore containing only a small Festive Season tourism component.  Our Whale Cottage Camps Bay occupancy figures show that the December 2012 occupancy of 61% fell from the 70% in December 2011, and is still far below the record occupancy of over 84 % and higher in 2009, 2008, and 2007!  Pascoe’s claim that ‘the City’s tourism industry has been enjoying a steady annual increase in visitor numbers’ is misleading and factually incorrect!

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

South Africa wins Olympic Games with Stellenrust Fairtrade ‘London 2012’ wines!

Brand ‘South Africa’ and ‘Fairtrade‘ will be in the lips of hundreds of thousands of Olympic Games supporters for the next three weeks, being branded on two of the three official ‘London 2012’ wines produced for the 2012 Olympic Games, reports Winemag. The Chenin Blanc and Rosé wines (made from Pinotage, Shiraz, and Merlot) come from Stellenrust, the largest Fairtrade-certified wine estate in South Africa, one of the largest family-owned wine estates in the country, and ‘a very successful winery’, according to its Platter entry.

For the first time in Olympic history, the International Olympic Committee contracted with Bibendum, a London-based wine merchant, which was awarded the title ‘European Merchant of the Year 2012’, to source 650000 litres of 2012 vintage wines, for sale at the Olympic Games venues in London.  The third wine is not Fairtrade-certified, and comes from Brazil’s Seival Estate, being a Shiraz, Tempranillo, and Gamay Nouveau blend. The Brazilian wine reflects the country hosting the Olympic Games in 2016, and its emergence as a wine producing country.

The wines are to be sold at £4,80 (R62) for a 187 ml recyclable PET bottle, and at R250 for a 750 ml bottle. One million bottles each of the Rosé and Shiraz Tempranillo will be available for sale, as will be 1,2 million bottles of Chenin Blanc.  A total of 9 million tickets have been sold to Olympic Games spectators.

In addition to the marvellous branding benefit for the country and its wine industry, an excellent outcome of this win for the Stellenbosch wine estate is that R450000 will go its staff, for allocation to social upliftment projects, which will be overseen by the Fairtrade Foundation in the UK, reports The Times.

WOSA (Wines of South Africa) and SA Tourism couldn’t have wished for a better free marketing opportunity to give the world a taste for South African wines and for marketing South Africa as a tourism destination

POSTSCRIPT 5/8: The Fairtrade ethical logo is attracting increasing custom, reports the Cape Argus, internationally its brands having generated sales of € 5 billion in 2011.  In the UK the spend on Fairtrade brands increased by 12% last year relative to 2010.  Locally, Fairtrade sales more than tripled to R73 million last year.  Cape Chamber of Commerce President Michael Bagraim said that the Fairtrade certification could help give local products a competitive edge in international export markets.  Wine and coffee are the Fairtrade products that have sold best locally, South Africans having bought 255600 bottles and 3,5 million cups of coffee certified by Fairtrade.  Woolworths Cafés, operated by TriBeCa, sell Fairtrade certified organic coffee.

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

Cape Town ‘last minute’ 8 Nations Under 20 Soccer Tournament no compensation for losing out on 2013 Afcon!

Two weeks ago Mayor Patricia de Lille hinted at a ‘high profile’ event that was still under wraps then, that could make up for Cape Town not having been made it as host city for the African Cup of Nations (Afcon) tournament in January/February next year.  A surprise is that the announcement of an ‘8 Nations Under 20 international Football Challenge 2012’, which will be held in Cape Town from next Friday until 3 June, was only made two days ago!  With such a short lead time, and virtually no information to be found about the event, the soccer tournament is unlikely to be beneficial to tourism in Cape Town, and will not compensate for the failed bid in hosting Afcon next year. The soccer tournament next week is a sad attempt by the City of Cape Town to save face!

We wrote last week that losing the bid to be a host city for Afcon 2013 is a major tourism blow for Cape Town, and is a further disaster created by our City’s Mayoral Committee member for Tourism, Events and Marketing, Councillor Grant Pascoe, also having cost our city the Heineken Cup final earlier this year.

The City of Cape Town media release, issued yesterday, announces the tournament, organised by the City of Cape Town in conjunction with the Cape Town branch of the South African Football Association (SAFA) with a financial contribution by the Western Cape government, is to be played both at Cape Town Stadium and at Athlone Stadium in eight matches.  Teams from South Africa, Argentina, Ghana, Nigeria, Brazil, Japan, Cameroon, and Kenya are participating in the soccer tournament, seen as preparation for the FIFA Under-20 World Cup to be held in Turkey next year.

According to the release, Cape Town is hosting the ‘renowned bi-annual tournament for the second time, after a successful inauguration tournament in 2010, prior to the 2010 FIFA World Cup’.  No reference about the 2010 event could be found via a Google search, making the claim of it being ‘renowned’ untruthful and an overclaim!  Even worse, the release positions the event in the league of the Pick ‘n Pay Argus Cycle Tour and the ‘Old Mutual Town (sic) Oceans marathon’, and says that it helps to achieve its goal of positioning Cape Town as the Events Capital of Africa!  Magnifying its exaggeration, the release states that the soccer tournament will launch the future local and international careers of soccer players. Ivan Meyer, the MEC for Sport and Cultural Affairs in the province, said the the soccer tournament would position Cape Town as a ‘soccer-friendly city’, reports The New Age, ironic given that Councillor Pascoe was argumentative with the SAFA when bidding for host city of Afcon, and so lost the bid!

Interesting is that Cape Town Tourism, funded by the City of Cape Town, has not yet Tweeted about the event, preferring to focus on the floating of the beached Japanese trawler on Clifton’s First Beach yesterday. No media release has been issued by the tourism body either, proving that it does not see the tourism benefit of the soccer tournament!

The City will be using the services of 150 volunteers to run the event. Tickets cost R50 for ‘grand stand’ tickets and R20 for ‘open stand’ seats, and are for sale at Computicket. The match schedule is as follows:

Athlone Stadium

Date Time Fixture
25 May 2012 18:00 South Africa v/s Argentina
20:30 Ghana v/s Nigeria
29 May 2012 18:00 South Africa v/s Nigeria
20:30 Argentina v/s Ghana
30 May 2012 18:00 Brazil v/s Japan
20:30 Cameroon v/s Kenya
1 June 2012 18:00 Semi Final 1
20:30 Semi Final 2

Cape Town Stadium:

Date Time Fixture
26 May 2012 14:00 Kenya v/s Japan
16:30 Brazil v/s Cameroon
27 May 2012 14:00 South Africa v/s Ghana
16:30 Argentina v/s Nigeria
28 May 2012 18:00 Brazil v/s Kenya
20:30 Cameroon v/s Japan
3 June 2012 14:00 3rd v/s 4th
16:30 Final

POSTSCRIPT 23/5: Cape Town Tourism has only written about the soccer tournament on its website today, two days before its start. There is no publicity about this non-event!  The Twitter page (@8Nations) only has 72 followers!

POSTSCRIPT 24/5: The Cape Times has reported that the Fan Walk will be opened for the Final on 3 June.  To date there has been no publicity to encourage locals to participate.  The article also states that the City of Cape Town is paying the South African Football Association R1,5 million as a ‘grant in aid’, while the Western Cape government has ‘in principle committed’ the same amount.

POSTSCRIPT 27/5: The Weekend Argus yesterday billed the effect of the soccer tournament on Cape Town’s hospitality industry as a ‘mid-winter tourist boost’, a dishonest report – Cape Town has never been quieter!  Ivan Meyer, the province’s Minister of Cultural Affairs, Sport and Recreation, who does not handle the tourism portfolio, stated that the tournament would impact on the economy of the province, through ‘ticket sales, accommodation, flights, etc’. Cape Town Chamber of Commerce President Michael Bagraim, known for his media gaffes, reinforced the exaggerated benefit of the tournament: ‘Bagraim added that a major event such as this was similar to the festive season. bringing a great deal of money into the city’!  One wonders why these two personalities, and the Weekend Argus with it, are misleading the tourism industry and the Cape Town public in this report. SAFA Cape Town President Norman Arendse pointed out that the 8 Nations Under-20 soccer challenge should not be seen as a ‘replacement’ for losing out on being an AFCON host city next year.

POSTSCRIPT 27/5: Cape Town Tourism, the city’s tourism marketing body funded by the Councillor Pascoe’s department, has only Tweeted once about the soccer tournament, signalling its lack of tourism interest in the event!

POSTSCRIPT 28/5: We received the following e-mail from Wadia Sinclair, with some valid questions:

“Good day, After reading some of the comments I would like to give version:

This tournament was poorly advertised.

Parking a major problem @ CT Stadium, all parking around the stadium was cordoned off. WHY??????

Why do we have to buy eats inside the stadium at RIDICULOUS prices? I would rather bring my own eats than have all these vendors walking up & down pass me. Is this stadium not for the PEOPLE….

We as a family enjoy soccer but please why all the inconvenience”.

POSTSCRIPT 28/5: The 8 Nations Under 20 soccer tournament ticket sales must be so poor that they are offering a free ticket for every ticket bought for the Semi Final or Final, Councillor Pascoe Tweeted today!

POSTSCRIPT 28/5:  Councillor Pascoe appears to be getting annoyed  about the feedback in this blogpost, making the following statement on Twitter this evening: “you don’t have a mandate to speak on behalf of anybody”!

POSTSCRIPT 29/5: The Cape Times reported today that the support of the soccer tournament has been so poor in terms of attendance that Cape Town faces the danger of not hosting the 2014 Eight Nation Under 20 soccer tournament. There is an admission that the free ticket give-away is to attract a greater attendance.

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

Africa Cup of Nations 2013: City of Cape Town Tourism foul deserves red card!

The tourism industry is astounded that the City of Cape Town has fouled up its opportunity to generate revenue during the 29th Africa Cup of Nations championships (AFCON), which will be hosted in our country between January and February next year.  The winners of the Championships qualify for the 2013 FIFA Confederations Cup in Brazil.

Last week the soccer stadia hosting the 32 matches for the Championships were announced, Soccer City in Johannesburg hosting the opening and closing ceremonies and matches.  The other matches will be played at Mbombela Stadium in Nelspruit, Nelson Mandela Stadium in Port Elizabeth, Royal Bafokeng Stadium in Rustenburg, and Moses Mabhida Stadium in Durban. Cape Town Stadium is conspicuous by its absence, the City of Cape Town’s Mayoral Committee member for Tourism, Events, and Marketing, Grant Pascoe, once again showing what a burden he is to the city’s tourism industry!  The city had expressed its opposition to hosting the event, due to the cost burden, and sought a guarantee from the government for at least 50% of the hosting costs to be covered.  The City was also looking to the Confederation of African Football and/or Local Organising Committee to cover 25 % of the costs.  Costs for the host city include the preparation of the pitch, fencing, security, the accommodation of the teams and officials, as well as transport plans, according to the Cape Argus. The City also was unhappy that the event would mean that other events could not be held at the Cape Town Stadium, meaning a loss of income, a poor motivation, given how few events are held at the stadium, less than one per month on average! However, four events have been booked for the mid-January to mid-February period next year, it is reported. In addition, the City of Cape Town’s new Executive Director of Tourism, Events and Marketing, Anton Groenewald, and reporting to Councillor Pascoe, naively expressed the concern of the public liability of the players in case of an accident, something every event organiser is insured for!  The City accused the organisers of ‘bully tactics’ and that it was being held to ‘ransom‘!  The City did not present the approval for funding to its full Council meeting, the deadline date for the bid having preceded the Council meeting date at the end of April.

The South African Football Association (SAFA) agreement placed the financial burden solely on the bidding cities. The Minister of Sport Fikile Mbalula said that the cost of hosting the matches would be funded by the government, private enterprise, and the Confederation of African Football.

Even more astounding is the city’s decision, given that Councillor Pascoe’s portfolio includes the Cape Town Stadium, which is running at a significant loss, the City not having been able to find an operator to generate an income from the stadium other than a few local soccer matches, religious gatherings, and pop concerts! Cape Town Mayor Patricia de Lille prepared a statement in reaction to the Host City announcement, as published in Politicsweb: “The City of Cape Town notes with deep disappointment the decision not to include Cape Town as a host city for the African Cup of Nations (AFCON) 2013. From the outset, the City expressed the desire to be part of what we truly believe is a celebration of African football. However, at each stage of the process, we have highlighted a number of serious legal, financial and other concerns that needed to be negotiated in order for the City to comply with our legal responsibilities and to ensure that we do not compromise the interests of the ratepayers and citizens of Cape Town”. The Mayor added that the City’s concerns had not been responded to, and that it had to hear via media reports that it had not been successful in its bid.  She also reiterated the City’s commitment to hosting ‘high profile national, regional and international football matches’, and intimated that a ‘high profile football tournament’ would be hosted next month, rather short notice one would think, given that it is a month away and has not been finalised nor announced!

Johannesburg had also balked at the cost of hosting the event, and therefore its involvement has been reduced to the first and last day of the Championships, the government stepping in to help bear some of the costs.  One wonders why the government did not help Cape Town with its concerns about the cost of the event, and whether politics led to the DA-led City of Cape Town having been excluded, or whether it is a reflection of the poor negotiation skills of Councillor Pascoe. We would assume it is the latter, given Mayor de Lille’s complaint that the City did not receive any written response to its concerns!  This is reinforced by the statement of Mvuzo Mbebe, the AFCON 2013 CEO, in which he questioned why the City of Cape Town was communicating with his organisation via the media instead of with him directly!

Libya had originally won the bid to host the African Cup of Nations 2013, but the political turmoil in the country led to the event being moved to South Africa two years ago.

The Cape Chamber of Commerce does not usually receive our support, due to its communication gaffes, but the association supported an AFCON bid by Cape Town, stating that the cost involved was worth the price tag, reported the Sunday Argus.  Its President Michael Bagraim said last month: “The costs of the tournament are unknown at this stage, and the city will almost certainly take an initial loss. But the Afcon could open up many other venue (sic) streams in the long term”.  The benefits for the tourism, transport and accommodation sectors were clear, he said (perhaps not understanding that the accommodation industry is part of the tourism sector!). Bagraim added that the event would have the economic benefit of a Two Oceans Marathon or a Cape Argus Pick ‘n Pay Cycle Tour, being good examples of event tourism, which the tourism industry recognises the valuable impact of.  A further tourism benefit was that the event would have created exposure for Cape Town in Africa, sorely needed to reduce the burden on the traditional European source markets. The Chamber expressed its disappointment that Cape Town had not been included as a host city, after the announcement last week.  Oddly, the tourism industry has not spoken out against the City of Cape Town’s handling of the AFCON bid.

COSATU provincial secretary Tony Ehrenreich was quick to make political capital out of the AFCON bid debacle, and for once we must agree with him, saying that the bid problems were similar to those of the Saracens versus Biarritz Heineken Cup match, which cost the city dearly when the match scheduled to be held in Cape Town in January this year was moved to another country, due to the City of Cape Town’s inability to make a decision about whether to host the event at Newlands or at Cape Town Stadium. Ehrenreich has threatened to take the City of Cape Town, of which he is an (ANC) Councillor, to the Equality Court over the AFCON bid!

We have previously questioned Councillor Pascoe’s ability to manage his portfolio of Tourism, Events, and Marketing, and ask how the performance, or lack of in the case of Councillor Pascoe, is evaluated, and how much more damage the Councillor will cause before any action is taken against him and he be removed from this position!  Councillor Pascoe has no business experience, and it is showing!  What is interesting is that Mayor de Lille motivates her administration’s decision on the basis of her care for ratepayers and the citizens of Cape Town – the former were not consulted in preparation for the 2010 World Cup involvement, creating a long term rates burden for its ratepayers. Capetonians were also not consulted about AFCON.  Many of the residents of Cape Town would welcome a big soccer event in the city, given the beneficial bonding the soccer event created two years ago.  The estimated cost that the City of Cape Town was protesting about was R27 million, which was expected to grow to R40 million or more, reported Southern African Tourism Update.  This figure is less than the City’s annual budget spent on Cape Town Tourism, and may be a far better investment in tourism than the predominant Tweet-Marketing done by the tourism body!

The AFCON booby prize goes to Cape Town, Bloemfontein, Polokwane, and Kimberley, in hosting the 2014 African Nations Championships (CHAN), it has been announced.  No dates have been announced for the Championships in 2014, and one wonders if the City of Cape Town will blow the whistle on this event too!

POSTSCRIPT 7/5: The Cape Times today has a lead story entitled “City slams Safa over soccer Cup snub”, writing that Councillor Grant Pascoe is blaming SAFA for treating the City as ‘palookas’, shocking that a Councillor in general, and the one heading up Tourism, Events, and Marketing, could use such unprofessional language. The article also quotes Safa as stating that ‘the losers will always cry foul’!  SAFA stated that the four soccer stadia were chosen in cities that ‘are winners’, a terrible criticism of Cape Town, by default!  The 2014 CHAN games are described as B team matches, an even worse slap for Cape Town.

POSTSCRIPT 7/5: The Cape Argus this evening reports that the City of Cape Town has four events booked for the Cape Town Stadium for January/February 2013, which it would have had to cancel had it been an AFCON host city. The events include an international pop concert, an international rugby match, and two film shoots.

POSTSCRIPT 14/5: In his Cape Argus column, Mike Wills last week both praised the City of Cape Town for its financial fiduciary concerns, and slammed it for its ‘tonality of the approach’, in spending too much time in telling SAFA what to do!  He concluded that the end result, other than a tourism loss and an empty Fan Walk, is the entrenchment of the Cape Town stereotype of ‘Cape Town Hates Soccer’, expanded into ‘Cape Town Hate Things That Black People Like’!

POSTSCRIPT 18/6: The Times has reported that the African Cup of Nations will cost R400 million to host next year, including R20 million to accommodate the VIPs, and R25 million for marketing.  The cost to the four host cities collectively will be R90 million.

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