Tag Archives: Middle East

International tourism slows down, growing Social Media marketing focus

The latest Euromonitor International report on the global tourism industry predicts that international arrivals will ‘slow down 5,8%’, according to Cape Town Tourism, yet will see arrivals exceed 1 billion persons by 2012.  The forecast is that this figure will increase to 1,8 billion by 2030.

The report is based on a prediction of a ‘double dip recession’, in Europe in particular.  GDP is expected to grow by 4% globally this year, down by 1,1 percentage points from 2010, caused by higher fuel prices and taxes, and political and social unrest.  ‘Across all markets, online marketing is considered to be the most significant growth area in the long term, with applications on social media and mobile devices very lucrative in the medium-term’, writes Cape Town Tourism.

The report also contains a number of global travel trends, highlighting how different countries and regions are adapting to the international downturn:

*  Mystery trips:  In America the need for affordable yet exciting travel has led to the development of mystery trips, whereby tourists bid on packages with an unknown destination.  A Smartphone reveals a daily itinerary, based on a pre-determined budget.  Prices are 50 % lower, as the travel products offered are excess stock, heavily discounted.

*   Rent a garden: In the UK the outlook for travel ‘remains bleak with a stagnant economy’, as we reported yesterday. This market is seeking greater value, and alternate affordable accommodation, including campsites and hostels.  Campsinmygarden.com lists sites renting out their gardens for camping.  Overcharging by London hotels for the 2012 Olympic Games is noticeable, and travellers are avoiding these.  UK hotel growth fell by 5% last year, is expected to remain stable this year, and grow by 2 % next year, showing the small effect that the Olympics is likely to have on the UK hotel accommodation industry, an experience similar to that during the World Cup in South Africa.

*   Luxury without guilt:  European travellers are focusing on ‘responsible and sustainable travel’, and travelers are expecting own produce to be grown by hotels and involvement in community produce growing initiatives.  Europe’s collective GDP is estimated to fall slightly from 1,8% in 2010 to 1,4% in 2012.

*   Branding and Rebranding:  Given the political turmoil, the Middle East is looking to rebranding, to change perceptions about the region, which has seen a 6% drop in arrivals this year, compared to 12 % growth last year.

*   Mobile commerce:  Kenya is focusing on booking travel via mobile phones, its M-PESA system enabling Kenyans without bank accounts to pay for travel and other purchases via their phones.  GDP growth in Africa is estimated at 5% for this year.

*   Growing influence of Asia: China will become increasingly dominant as a source market, with a 20 % growth  in travel anticipated in the next five years. International hotel brands are partnering with Chinese companies, and customising their brands to suit the market, both in China, and also in other regions, to make them attractive to Chinese travellers.  Inter-Asia travel is growing too.

*   ‘Gamification’:  Started in the USA, consumers are encouraged to enter competitions, sharing their travel experiences, photographs and videos, in exchange for points, badges and gifts.  The ‘Ireland Town’ game on Facebook, by Tourism Ireland, is expected to attract 60 million potential travellers.

*   Global village: Increasingly hotels are using Social Media to gain followers and friends, to create awareness, build loyalty, and generate bookings.

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

Tasting Room Africa/Middle East best in World’s 50 Best Restaurants

The 2011 S. Pellegrino World’s 50 Best Restaurants awards ceremony was held last night, and number 2 Eat Out Top 10 Restaurant The Tasting Room at Le Quartier Français, with chef Margot Janse at the helm, was the only South African restaurant to make the prestigious Top 50 list, for the seventh year running, and won Best Restaurant in Africa/Middle East, at 36th position, down from number 31 last year.  The top restaurant on the World’s 50 Best is Noma from Copenhagen, its second successive year at the top. France remains the country with the most Best Restaurants, at seven, followed by Italy and the USA, with six each.

South Africa also featured in the 51-100 Restaurant ranking, with Eat Out Top 10 Restaurant Top Chef David Higg’s Rust en Vrede  team making 61st place (up from last year’s 74th place), enhancing the sadness about his departure from the restaurant in June, and La Colombe (now without Luke Dale-Roberts) at 82nd place, a vast fall from 12th position last year.

Rank Position Restaurant Country Awards
1 — Noma Denmark The S.Pellegrino Best Restaurant in the World. The Acqua Panna Best Restaurant in Europe
2 Up 2 El Celler De Can Roca Spain  
3 Up 2 Mugaritz Spain  
4 Up 2 Osteria Francescana Italy The Chefs’ Choice sponsored by Electrolux
5 Down 2 The Fat Duck England  
6 Up 1 Alinea USA The Acqua Panna Best Restaurant In North America
7 Up 11 D.O.M Brazil The Acqua Panna Best Restaurant In South America
8 Up 1 Arzak Spain  
9 Up 2 Le Chateaubriand France  
10 — Per Se USA  
11 Down 3 Daniel USA  
12 Up 12 Les Creations de Narisawa Japan The Acqua Panna Best Restaurant In Asia
13 Up 3 L’Astrance France  
14 Up 15 L’Atelier de Joel Robuchon France  
15 Up 2 Hof van Cleve Belgium  
16 Down 3 Pierre Gagnaire France  
17 Up 2 Oud Sluis Netherlands  
18 Down 3 Le Bernardin USA  
19 Re-Entry L’Arpege France  
20 Up 28 Nihonryori RyuGin Japan Highest Climber Sponsored by Lavazza
21 Up 1 Vendome Germany  
22 Down 1 Steirereck Austria  
23 Up 7 Schloss Schauenstein Switzerland  
24 Up 26 Eleven Madison Park USA  
25 Up 9 Aqua Germany  
26 Up 1 Quay Australia The Acqua Panna Best Restaurant In Australasia
27 Up 1 Iggy’s Singapore  
28 Up 7 Combal Zero Italy  
29 Up 4 Martin Berasategui Spain  
30 Re-Entry Bras France  
31 Up 15 Biko Mexico  
32 Down 12 Le Calandre Italy  
33 Re-Entry Cracco Italy  
34 New Entry The Ledbury UK Highest New Entry Sponsored by Silestone
35 Down 12 Chez Dominique Finland  
36 Down 5 Le Quartier Francais South Africa The Acqua Panna Best Restaurant In The Middle East and Africa
37 New Entry Amber China  
38 Down 2 Dal Pescatore Italy  
39 Up 1 Il Canto Italy  
40 Down 14 Momofuku Ssam Bar USA  
41 Up 2 St John UK  
42 New Entry Astrid Y Gaston Peru  
43 Up 6 Hibiscus UK  
44 — Maison Troisgros France  
45 Down 4 Alain Ducasse au Plaza Athenee France  
46 Down 9 De Librije Netherlands  
47 Down 33 Restaurant de l’Hotel De Ville Switzerland  
48 New Entry Varvary Russia  
49 New Entry Pujol Mexico  
50 Re-Entry Asador Etxebarri Spain  

 The S. Pellegrino awards are organised by The Restaurant  magazine, and the award-winning restaurants are nominated by and voted for by “800 international restaurant industry experts”, says the S. Pellegrino 50 Best Restaurants website. “What constitutes ‘best’ is left to the judgement of these trusted and well-travelled gourmets.  There is no pre-determined check-list of criteria”, the website says, and the results are a “simple computation of votes”.  The World’s 50 Best Restaurants is an ‘honourable survey of current tastes and a credible indicator of the best places to eat round the globe”.  There are no requirements for eligibility for the ranking, and the length of time that the restaurant has been open, and the culinary awards won are not taken into consideration for the vote.   For the first time, a livestream presentation allowed one to watch the Awards ceremony from the comfort of one’s home, making one feel part of the ceremony.

Other Awards presented were the following:

*  2011 One to Watch: Frantzen & Lindeberg from Stockholm (number 57) 

*   Lifetime Achievement Award: Juan Mari Arzak (number eight)

*   Chef’s Choice:   Osteria Francescana (number 4)

*   Fastest Climber: Nihonryori Ryugin of Japan (number 20)

*   World’s Best Female Chef: Anne-Sophie Pic, of Maison Pic, first female Michelin three star chef in France

Last year Noma also was named the Best Restaurant in the world, with chef René Redzepi at the helm.  Ferran Adria’s El Bulli, long in number one position, was second, and Heston Blumenthal’s The Fat Duck came third. Adria withdrew from this year’s awards, as he is closing his restaurant for an indefinite period of time.

Tamsin Snyman heads up the Southern African judging team, stepping into her late mother Lannice Snyman’s shoes.   Lannice held this position for years.  What is odd is that the performance of South African restaurants on the Wold’s 50 Best Restaurants and Eat Out Top 10 Restaurant Awards  has been so different, Le Quartier Français’ Tasting Room consistently having done well on the international Awards list, even when it did not make the Eat Out list in the past.

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

‘Cape of Good Business’ is ‘cool’ in winter too!

Three directors of Cape Town Tourism and heads of important Cape Town business tourism businesses have joined forces to make a plea for how “cool” Cape Town is in the winter months, a period typically plagued by seasonality, with far reduced accommodation bookings, which has an impact on all sectors of the tourism industry. 

In an article in the Cape Times last week, Guy Lundy of Accelerate, Ian Bartes of Cape Town International airport, and Rashid Toefy of the Cape Town International Convention Centre wrote that of all South African cities, Cape Town is unique in its seasonality, which “makes it hard for the hospitality industry to be sustainable”.   They add: “With 18  five-star hotels now operating in the city, we must find ways to increase visitor numbers during winter.”  The tourism leaders says it is not a surprise that Cape Town sees so many restaurants opening and then closing, in that they build restaurants to meet capacity support in summer, but cannot see this through in the winter months when business falls away.  They also state that the number of passenger arrivals in April and May is half of that in December and January.

They blame this on the positioning and marketing of Cape Town as mainly a leisure destination, which “always seem to feature the Waterfront, Clifton and the Winelands on their covers”, with not enough promotion of the city as an investment and business destination.   Conference facilities, factories and office blocks do not feature in the city’s marketing collateral.   They call for more direct international flights to Cape Town, and more flights between the city and other African cities, to make Cape Town a world business destination, and a global African city, given that it already has a world class airport, good hotels, excellent infrastructure, ‘some of the finest restaurants’, natural beauty, entertainment, world-class technology, sophisticated business networks, and a favourable time zone for doing business with the UK, Europe, the Middle East and Africa. 

To make Cape Town a global business destination, it needs to be considered for meetings, incentives, conferences and exhibitions (the M.I.C.E. market).    The Convention Centre is ranked 34th in the world in size of business, and it plans to double its capacity to reach its goal of making the top ten list.    Winter is an ideal time for conferences, the writers say, in that most activities take place indoors.   Whilst conference delegates spend less time in a city on average, their average spend is higher than that of a leisure tourist.   The writers also state that the businesses of the Western Cape, e.g. food and wine, oil and gas, boat-building and ship repair, design, film, technology, renewable energy, asset management, business process outsourcing and medical research should expose their businesses to overseas markets via exhibitions and conferences, to attract business travellers to Cape Town and the rest of the Western Cape, including Winelands, West Coast and Overberg towns.

The World Cup demonstrated what a good winter weather city Cape Town can be, with rain on only three of the match days, and snowfalls on the mountains for a short while during the soccer tournament month.  The soccer fans were not put off by the rain and cold, and their ‘gees’ was not dampened in any way.   This leads to a renewed call for the ‘green season’ to be marketed in the winter months.  The cooler Cape weather is attractive to visitors from the Middle East, and the Asian countries, who have to endure hot and humid weather at that time.  The writers also suggest a winter sale, which reduces accommodation, restaurants, and clothing, as is done in Paris, Singapore and New York.   The writers seem unaware that the small accommodation industry has been leading the tourism sector for years, in reducing its rates by as much as half in winter.  This year the restaurants in Cape Town and the Winelands also came to the party, and offered good winter specials, some even extending these into current summer specials.

We support the writers’ call for more events to be hosted to attract visitors, but it is sad to read that the City of Cape Town does not have enough funding to support big events (there is activity by Cape Town Routes Unlimited in marketing a small number of approved events, all hosted in summer months).  

If Cape Town had no seasonality, airlines would fly into the city all year round, and would bring travellers, making tourism business more viable and reducing unemployment.   It is for this reason that the business tourism leaders ask that the tourism industry get on board the Cape of Good Business!  

It is interesting that the three writers are Board members of Cape Town Tourism, which focuses almost exclusively on leisure tourism, while the business tourism business that they are pleading for is in the domain of Cape Town Routes Unlimited, on which Board only ACSA is represented, and on which the three tourism leaders may have been able to make a greater contribution than at Cape Town Tourism.

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