Tag Archives: Overstrand

Hermanus tourism politics remain Stormy!

The powers that control tourism in Hermanus are holding on for dear life, and are using every possible means to hold on to their power, at the cost of disparaging their members.  A huge fight for their political life takes place on Monday evening, when a Special General Meeting of the Hermanus Tourism Bureau is held at the request of its members, calling for a vote of no confidence in its current committee.

We have previously reported about the Hermanus Tourism Bureau reneging on its CCMA settlement agreement to pay their ex-Manager Storm Kreusch R10000 (Daniel Acker is the labour lawyer advisor on this matter, and a director  of the Cape Whale Coast Destination Marketing Organisation), and this has been reported in the July issue of Noseweek too.  We have reported about the conflict of interest in that the Deputy Chairman of the Tourism Bureau, Clinton Lerm, is also the Chairman of the Cape Whale Coast DMO, that his mother Maxie serves on both tourism bodies too, and that all tourism meetings are held at the Lerm’s Misty Waves Hotel.  Following from the unfair dismissal of Ms Kreusch, a group of Hermanus Tourism Bureau members signed a petition, calling for a Special General Meeting, in accordance with the constitution of the Bureau.  Given the potential stormy nature of the meeting, the Overstrand Municipality has appointed an independent advocate, Professor Henning Viljoen, to chair the meeting. 

As the honour of the Lerm family is under threat, one can expect some nasty politics ahead and at the meeting.  Earlier this week the Chairman of the Hermanus Tourism Bureau, Charl de Kock, who appears a mere puppet of said family, wrote a denigrating e-mail to his members as a first salvo of attack, headed “Information we think you should know”.  The three-page e-mail alleges:

   *   that some members were “lured to sign a ‘petition’ document whilst not having real facts”

   *   the agenda for the meeting on Monday is based on “one-sided defence and accusations”

   *   some volunteers that have helped in the Tourism Bureau offices have sent tourists to their own establishments, proudly adding that members of the management committee “decided not to take any bookings since late last year”

   *   Ms Kreusch’s staff did not collect outstanding monies due to the Bureau by its members, allowed non-paid members to display brochures and to receive bookings, was the cause of ‘wasteful expenditure’ ‘in respect of cellphone contracts and telephone costs, and used the internet for private purposes ‘remotely’ after hours.  Ms Kreusch shared information from meetings with certain members (who were not on the committee).

   *  a member of the ‘petition committee’ intimidated the Bureau staff twice.  “The person is known to us and we will act in due course as it is the policy of Hermanus Tourism to protect personnel from intimidation”!

   *   allegations that the current committee had withheld information from its members, as claimed by the ‘petition committee’, are denied 

   *   the CCMA agreement, accepting responsibility on behalf of the Hermanus Tourism Bureau for unfair dismissal,  was signed by him as “I had compassion (for Ms Kreusch) and was lured into signing a document after being requested by Storm Kreusch to please just allow her to continue her life in this town”!

The e-mail ending stoops to a unprofessional and unprecedented low, and should be reason enough for the current committee to be dismissed by its members: “It is IMPORTANT TO NOTE that if you support the petition, you in fact support each and every action of mismanagement highlighted above and you will therefore be co-responsible for the current turmoil in Hermanus Tourism.  Support for the current committee means that you support the on-going efforts of myself as Chairperson and the current committee to make this one of the most effective tourism organisations in the country”!   The first sentence is libelous, strong words coming from a body that includes the litigious Lerms, who are the essence of the latest Noseweek article, while the second sentence is ludicrous in its claim of perfection!

Mary Faure, the spokesperson of the ‘petition committee’, has responded, by writing that the Special General Meeting has not been called about Ms Kreusch, but is about “several unconstitutional matters”, including mismanagement, lack of integrity, lack of transparency, holding members in contempt (libelous comments have been made on social media), and lack of information, and ‘misinformation’ to members.  One member has already lodged a complaint with the municipality, for the Hermanus Tourism Bureau e-mail implying that some of its members are responsible for ‘criminal activities’, and has asked the Chairman for a public apology.

A complaint about a disparaging comment from the Cape Whale Coast DMO, which was posted on our blog in response to our blogpost about Ms Keusch’s dismissal, was sent to DMO Chairman Clinton Lerm and remains unaddressed more than a month later!  He has delegated the communication with ourselves to his DMO Deputy Chairman, Daniel Acker, who ends every e-mail in legalese, possibly intended to intimidate the recipient: “All the rights of the author, Cape Whale Coast DMO, and its directors are and remain reserved herein. Any response given herein is thus done without prejudice of / to these said rights”.

A further manifestation of the continued serving of self-interest amongst directors of the Cape Whale Coast DMO and Hermanus Tourism Bureau was the invitation of a select number of Hermanus tourism operators, in addition to the DMO committee, to participate in the presentation of their products and services to a  30-strong delegation of travel agents and tour operators visiting Hermanus, a visit sponsored by SA Tourism and SATSA.  The communication was sent to select members by DMO director Joan-Anne Harris of Southern Stroll Marketing, mainly to her clients, it would appear.  The participants were invited ‘to showcase their product/s to the agents and you will be able to network with them and build relationships over the 2 days’, advantaging a select number of members at the cost of the majority who were not invited!  A Hermanus Times photograph of the event includes representatives of Schulphoek Guest House, Walker Bay Adventures, Cliff Lodge Guest House, African Horse Company, White Shark Projects, Misty Waves Hotel as some of the attendees from Hermanus.  The caption reads: “SA Tourism brought 30 tour operators to the Whale Coast this week to give local accommodation establishments, restaurants, tour operators and organisations offering various adventure activities the opportunity to showcase their products”.  It does not declare the elitist selection of participants.  One wonders how Lerm could have thought that including this item in his recent newsletter to members would make the excluded members warm to him and his DMO and the Hermanus Tourism Bureau!

A rare Cape Whale Coast newsletter was sent by Cape Whale Coast DMO Chairman Clinton Lerm two weeks ago, clearly to present a good image in anticipation of the meeting on Monday, and announced that a Special General Meeting of the DMO will be called to address the dual membership of the DMO and of the Tourism Bureaus in the area, which meeting will be held almost a year after Lerm promised it.  He quotes the ‘Municipal Financial Act’ as being the reason for the dual membership, but that is nonsense, as no other tourism bureau we belong to has such a dual membership system.  Lerm writes: ‘a more inclusive membership structure stands to be adopted‘.  Lerm highlighted the marketing activities of the DMO, clearly feeling the need to justify his organisation’s work, and included the launch of the Cape Whale Coast, the contentious Getaway article, coverage in Süedafrika magazine,  attending Indaba (sharing a stand with Southern Stroll Marketing and other DMO directors, another contentious action), a Memorandum of Understanding signed between the DMO and Cape Town Tourism (as a member of Cape Town Tourism we have not seen this communicated to members!), and the visit by the travel agents/tour operators (making it sound as if only the DMO committee members were invited), hardly much to shout home about.  Bravely Lerm has disclosed the hard-to-find-elsewhere names of the nineteen directors of the Cape Whale Coast, but seven of these are co-opted due to their positions as Overstrand Councillors or Tourism Bureau Managers.  Ms Harris is widely rumoured to be the first incumbent of the position of Manager of the Cape Whale Coast DMO, but that will be another story for another day!

POSTSCRIPT 16/7: The Hermanus Times of 14 July says that the events leading up to the meeting on Monday is “the worst tourism crisis ever for the tourism industry in the region, Hermanus Tourism (HT) has been thrown into turmoil”!   It adds that tension has been brewing for some time ‘within the organisation’. 

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

Whale of a tourism Storm brewing in Hermanus!

I could not believe what I was told about the storm which is brewing in Hermanus tourism circles about the unfair dismissal of the Hermanus Tourism Bureau Manager Storm Kreusch about two months ago, and how this has become a political issue, given the municipal elections on 18 May.

The first I had heard was an e-mail sent to members of the Hermanus Tourism Bureau, stating that one should not believe everything one had heard about the dismissal, and that more information would be supplied.  In heavy legalese its Chairman Charl de Kock wrote the following under his first name only:  “We have become aware that certain unfounded & unsubstantiated rumours and slanderous information may have been initiated & circulated, as if they were facts, by members and non-members alike; following the Conciliation meeting with Ms G D (“Storm”) Kreusch, on 05 May 2011.  Kindly be advised that certain matters & issues, arising from the dismissal of Ms Kreusch, remain unfinalised, and that we shall issue an official statement in this regards (sic) as soon as the matter has, in fact, been finalized. We therefore call on Members of Hermanus Tourism to be patient, in the meantime, until the real and accurate facts have, in fact, been published. Lastly, we place on record that the contents of certain malicious and unfounded correspondences have been noted, and that we reserve the right to respond thereto / comment in full thereon, at a later stage, and in the proper forum. Note that all the rights of the Author hereof, Hermanus Tourism Bureau and any of its Directors are, and remain, fully reserved herein. Any response given in the content of this correspondence shall therefore be deemed to have been given without prejudice of any of the said rights”.

To date such information has not been sent to members, but immediately the rumour machine in Hermanus got going, and of course it has created a huge intrigue in this whale village. 

I was interested in the story from one perspective, and that is that the Lerm family appears to be in the midst of this controversy.   I have written about them before  on this blog, and we face a R1,3 million defamation claim from them as a result!   It is no surprise that Hermanus will soon be renamed Lermanus, it is said as a joke, if Maxie Lerm (second left, schmoozing the previous mayor Theo Beyleveldt) wins the election on behalf of the Democratic Alliance in Ward 3 in the Overstrand municipality.  Her son Clinton (second from right) already is Chairman of the Destination Marketing Organisation and Vice Chairman of the Hermanus Tourism Bureau, and both mother and son serve on the Executive Committees of both these bodies, mother Maxie Lerm handles the Public Relations portfolio for the Destination Marketing organisation.  

Someone who thinks that Maxie Lerm won’t win is John Williams, the Chairman of Cope, who is based in Stanford, in ward 11 of the Overstrand.  He has observed what the Lerm family is doing to tourism, and how the family, which owns the Misty Waves Hotel, has used its influence and positions to benefit its own business, directly and indirectly.  Father Henri Lerm (right) and his son Clinton have created a new Hermanus Sakekamer/Chamber of Commerce.  The Hermanus Tourism Bureau recently became a member of the Afrikaanse Handelsinstituut Employers’ Organisation, making some Hermanus tourism players suspect that the Lerms want to amalgamate the business and tourism interests in the town, as they have attempted before, so that this time the amalgamated body will fall under their power and control.  Mother Maxie’s success in the municipal election would be the crowning glory to this scenario, controlling the tourism interests of the Overstrand Municipality, the Destination Marketing Organisation, and of the Hermanus Tourism Bureau!  Williams does not mince his words about his political opponent, and he says Mother Maxie is allegedly ‘loathed and despised’ in the region.  Williams has been involved in tourism, and wants to head up the Overstrand municipal tourism portfolio.

The outcome of a conciliatory meeting, called by the Commissioner of the CCMA, was settlement in favour of the Manager of the Tourism Bureau, whereby the Hermanus Tourism Bureau, under the chairmanship of Charl de Kock and mandated by his committee, admitted to a faulty procedure and unfair action in the dismissal process, and agreed to pay her a monetary settlement in full and final settlement of her case of appeal.  Clinton Lerm allegedly stated in a meeting held at the Tourism Bureau that he, as Vice Chairman, would resign should they have been found to not have followed the correct procedure with her dismissal, and he believed that the rest of the Hermanus Tourism Bureau committee should follow suit, but this resignation has not yet been forthcoming.  

The members of the Hermanus Tourism Bureau are furious about the suspension of their manager, who was dedicated to tourism for over five years.  A number of the members of the management committee of the Bureau have resigned in the past few months, given the treatment of the Manager by the Chairman and Vice-Chairman.  

Further anger stems from a proposed Memorandum of Agreement which the Destination Marketing Organisation is requesting the tourism bureaus in the Overstrand municipal area to sign.   Disputed is the inclusion of a proposed clause accepting that the Destination Marketing Organisation will hire and fire staff of all the Tourism Bureaus under the Overstrand municipal control.  Also, a promise in September last year by the Destination Marketing Organisation, after a previous furore about the organisation, that members of the Hermanus Tourism Bureau and those of the Cape Whale Coast would automatically become members of the Destination Marketing Organisation without paying extra membership fees, has not yet been honoured.  It appears that in the past seven months the Destination Marketing Organisation has not yet called a General Meeting to obtain member approval for this constitutional change regarding membership.  

Concentration of power, by a family having a strong private and commercial interest in tourism, is dangerous for any town, and should be stopped in Hermanus at all costs.  What we said almost 18 months ago, more and more Hermanus tourism players are now seeing, and they appear to have reached the end of their tolerance of this blatant abuse of power.

POSTSCRIPT 11/5:  I have been informed that there was similar politicking in Bloemfontein, where the Lerms previously lived, and Maxie Lerm stood for the ANC, amongst others.  They appeared to change their political allegiance regularly.  

POSTSCRIPT 11/5:  It has been discovered that a number of Directors of the Destination Marketing Organisation had their personal businesses represented on the Cape Whale Coast stand at Indaba over the past weekend, including Southern Stroll Marketing and Shark Diving Unlimited.   It is alleged that members of the Hermanus Tourism Bureau and other tourism bureaux in the Overstrand Were not offered an opportunity to participate in this stand. 

POSTSCRIPT 15/5: The following serves as further input to the above debate, written by John Williams on his blog “Truth about Hermanus“:

“The ‘Wonders that never cease’ on the Cape Whale Route are the damaging shenanigans that continue to rock the foundations of the organisation mandated to market this outstanding destination (Hermanus and the Overstrand coastal region) commonly known as the Destination Marketing Organisation (DMO) and the Hermanus Tourism Bureau (HTB).

Stormy seas ahead for the Lerm’s!

’The DMO has, in my opinion, made a right mess of things for the tourism industry. They have wasted our money and they have, as far as I can see, only one ambition – and that is to turn Hermanus into the glitziest, cheapest, nastiest destination in the Cape’. ..a comment made recently by a leading tourism personality in Hermanus.

If you didn’t know, Storm Kreusch, manager of Hermanus Tourism Bureau was unfairly suspended and was then subsequently “dismissed” after she has resigned! by the Hermanus Tourism Bureau of which Clinton Lerm (DMO chairman) is vice Chairman (Clinton, having stepped down to position of vice chair of HTB, earlier this year when it became obvious that a conflict of interest was present between his governance of both bodies) Ms Kreusch went to the CCMA and apparently after a conciliation meeting came out as the victor and was awarded compensation!

A very well done Storm! The whole town supports you (except the Lerm family) but now here is the nub. At a volunteer’s meeting at the HTB,Clinton had said that he would resign from the HTB Committee and believes that the rest of the Committee should also resign – (his mother serves on that committee as well as the DMO) should it be proven that the incorrect procedure was followed regarding Storm’s suspension. Rumour has it that Maxie Lerm has already or will now resign due, not to this statement by her son, but due to her DA candidature. Will it be from both HTB and DMO committees we wonder.

So, indeed, we are now waiting for the re-election of the HTB and the DMO committee’s, at a special meeting which will need to be called as soon as possible! 

Background to the formation of the DMO in 2007/8. This marketing body was put in place to, among other duties (and not necessarily in order) to undertake as follows:

1. Advertise the Cape Whale Coast generically in whatever media possible; 

2. Administer the grant from the Overstrand Municipality (OM) and any funds generated to the local Whale Coast Tourism Bureau’s via the management committee of each bureau, thereby maintaining (not managing) effective tourism bureaus; 

3. Be nominated and be represented on the management committees of the various Bureau’s.

N.B. All businesses who paid rates and taxes/previous business levy/ were eligible to be members of the DMO (2007/8 constitution

Background to the DMO the HTB feud over membership and Info Kiosk

The Hermanus Tourism Bureau had been lobbying for at least 5 years to have a satellite information kiosk on the seafront. This kiosk would also act as a shelter for the Whale crier during the rainy months. The Kiosk was granted to HTB by Mayor Beyleveldt in Sept 2009 at the AGM. In Dec 2009 the DMO hi jacked the kiosk from HTB, for DMO use and membership, thus generating income for the DMO. At this stage Clinton Lerm and his mother Maxie Lerm were serving on both committees and Clinton was Chairman of both. There was an outcry by many members regarding the loss of the kiosk. Most members showed a lethargy regarding the kiosk as they felt it was a battle HTB would never win against the DMO. (little did they realize the tide inevitably changes)

Clinton Lerm seemingly resigned as Chairman of HTB, when it was evident that there was a conflict of interest being chairman of both committees and that DMO had used their powers to “take” the kiosk. A very heated HTB AGM in Sept 2010 ensued and it was agreed that DMO was to return the Kiosk to HTB as soon as possible.

A formal announcement was then made in the Hermanus Times, by means of a letter from DMO, written by Lerm, that the DMO was to hand over the Kiosk, back to HTB in due course.

But what then followed was an extended idiotic squabble – all in very poor taste (astoundingly small minded and uncharitable behaviour by the DMO) when they continued to trade the Kiosk through the peak season and according to Lerm the criteria for membership of DMO had changed, constitutionally.

It became evident to the whole Whale Coast that the kiosk was only going to serve a “select few” – The DMO had pronounced that in order to get bookings via the Kiosk, HTB members now had to join and pay for membership to the DMO. In a nutshell – two memberships to partake in two “official” municipally funded Information Offices. One office trading on the doorstep of the other.

Progress to resolve conflict between DMO and HTB

It must now be understood that Clinton Lerm had promised in September 2010 in the same article in the HermanusTimes to take the issue of membership of the DMO to his committee and get the membership criteria changed to include all TB members of the Whale Coast. Apparently council had approved this change. It is now mid May 2011 and the membership issue has not yet been put in place. He once again made mention earlier this year that a special general meeting was to be called possibly in April to put the matter right and get approval from his small database of DMO members to change the constitution before taking on the Tourism Bureau members of the Whale Coast. Nothing has been affected to date!

The Kiosk was returned to the HTB during March/April and the HTB has been crisis managed by the committee ever since Ms Kreusch’s resignation, much to the member’s disgust.

There’s talk the Lerm clan is under siege and will finally realise that ‘vested interest’ actually disqualifies them from holding multiple posts in these tourism and marketing organisations.TheIr track record proves this to be the case (see below for some ‘hand to hand’ combat with the accommodation industry.” 

POSTSCRIPT 18/5: Today the Hermanus Tourism Bureau Chairman Charl de Kock has sent an e-mail regarding the ‘Storm”-saga, and has stated that they have received a written apology – Joan-Anne Harris has demanded one from ourselves (see Comments to this blogpost), but we have not sent one.  The final laugh is that Charl encourages members of the Hermanus Tourism Bureau to vote today – we all know that Maxie Lerm is the DA candidate for Ward 3 in the Overstrand, and her connection to the tourism bodies in Hermanus is documented above!  The e-mail is not correct in stating that the CCMA process has not been concluded.  The Hermanus Tourism Bureau representatives signed a document that admits that their dismissal process was ‘fatally flawed’ and that the dismissal procedure was ‘unfair’.  They have reneged on the payment of the R 10000 settlement to Storm Kreusch by the agreed deadline of 12 May 2011.

“Dear Hermanus Tourism Members

We can understand the concerns expressed by members as to what has been happening lately with regards to Storm. 

 A word of thanks to everyone who has indicated that they trust the HT Committee to handle the process correctly and fairly – and allow it to run its course. We would appreciate it if NO ONE will draw conclusions or spread unfounded rumours as it is (sic) only to the detriment of our town.

 Please note that the CCMA case re the Hermanus Tourism Manager is still in process!

As soon as the verdict is confirmed and the case is concluded we will inform all our HT members of the outcome.

The HT Committee has tried to halt the unfounded rumours; however the ongoing personal slander and unsubstantiated accusations continue and have even resulted in a written apology.

Please let us all work together towards a better future for the hospitality industry of this town and assist the committee and personnel in delivering the service excellence that they have aiming for.

The Hermanus Tourism personnel are currently visiting accommodation establishments to get to know your property and everything that you have to offer your guests. This is the first step in the Product Knowledge training that we are implementing to ensure they can market our beautiful area and superb products / companies. 

Yours in tourism:

Charl de Kock and the Hermanus Tourism Committee       

 

POSTSCRIPT 23/5:I have received a copy of the CCMA Settlement Agreement signed between Storm Kreusch and the Hermanus Tourism Bureau representative Charl de Kock, in which R10000 was due to have been paid into Ms Kreusch’s bank account by 12 May.  In an unusual addition, but probably requested by Ms Kreusch’s attorney, the following was added under “Other”: “The employer admits that the process resulting in the dismissal of the employee was fatally flawed and that her dismissal was consequently procedurally unfair.  This agreement settles all or any dispute that had or may arise from the employment relationship between the parties”. 

POSTSCRIPT 30/5:  The Hermanus Tourism members were excited to see the new June issue of Getaway, which has a nine-page spread on its village.  This quickly changed to shock when they saw that the editorial content, guided by the Cape Whale Coast DMO, contained the following errors:

*   The Whale Season is stated as being from May to September, when it fact it stretches until the beginning of December 

*   The article also recommends that visitors to the Cape Whale Coast route that hate crowds should rather stay away – the only crowded period is during the Hermanus Whale Festival, falling around the 24 September public holiday.  Many other options are offered in the other villages along the Cape Whale Coast route, but these are not mentioned.

*   The article says that visitors to the Cape Whale Coast Route should expect to pay more during the whale watching period – this is utter nonsense, as rates are set by season and not be whale activity.  Most guest houses and restaurants have good winter offers until August, then have a spring rate in September, and charge summer rates from October.  Due to supply and demand, the Whale Festival weekend period may have higher rates for the 3 – 4 day duration.

*   Only 4- and 5-star accommodation was allowed to participate in a promotion in July, according to the rules of the Marketing Project co-ordinator of the Cape Whale Coast DMO, Joan-Anne Harris.  Tourism Bureau members were given very short notice to participate in the advertising. 

*   The article does not contain a pay-off line for Hermanus or the Cape Whale Coast (“Best land-based whale watching in the world”).  The editorial does not refer to the Whale Crier, the unique icon for Hermanus.  No Cape Whale Coast branding is visible. 

*   The article contains a number of typing errors relating to e-mail and website addresses, and it would appear that no DMO representative (Joan-Anne Harris of Southern Stroll Marketing is the DMO Marketing co-ordinator) proofread the article. 

Getaway has been contacted by some members, and it appears that no proofreading of the article was done by the DMO nor by the magazine (one wonders who supplied the information to journalist Fatima Jakoet, for it to contain so many errors)! Getaway has promised a correction in its August issue. 

POSTSCRIPT 5/6: The CCMA Settlement Agreement was ‘cancelled’ by Dan Acker, of Holwill Bosman Acker & Associates, writing on behalf of the Hermanus Tourism Bureau, and a Director of the Cape Whale Coast DMO, on 6 May: “our client shall, with immediate effect, withdraw completely from the said ‘settlement agreement’ and shall hereafter deem said agreement to be null and void”,supposedly justifying why they did not pay Ms Kreusch the settlement of R10000 by the agreed date of 12 May.  This bullying ‘cancellation’ is motivated by a number of points, including that Ms Kreusch ‘breached the clearly expressed confidentiality, purpose and spirit of the said Conciliation discussions and subsequent agreement’ . We have seen the CCMA Settlement Agreement, and it does not contain any confidentiality clause by which the Hermanus Tourism Bureau can give itself the power to cancel the Settlement Agreement!

POSTSCRIPT 8/6: Charl de Kock, Chairman of the Hermanus Tourism Bureau, wrote a rather strange letter to members of a “Petition Group”, who had signed a petition calling for a Special General Meeting, yesterday afternoon, just before this Group was due to meet.  He reinforces that he acted correctly in respect of Ms Kreusch’s disciplinary hearing, subsequent termination, and CCMA hearing, and blatantly accuses her of deceit: “It is now common knowledge that I was ‘conned’ and that Storm, her lawyer end (sic)Storm’s possible financial backers had no intention of keeping this document (the CCMA Settlement Agreement) confidential. I really believed I was signing an honourable agreement and that Storm wanted ‘to get on with her life’!  He does invite all members of the Group to view the documents, and does agree that the Mayor should ‘call for an impartial meeting where all the facts can be addressed and laid bare for all to see’.   

POSTSCRIPT 8/6:A Top Billing feature on Hermanus appears to include more DMO Director properties.  Once we have seen the detail, we will add it.

POSTSCRIPT 9/6:  At a DA Ward 3 Councillor’s meeting held without announcement to the Ward constituency last night, headed by new DA councillor Maxie Lerm, her husband Henri Lerm and DMO Board member Dan Acker were elected onto the Ward committee, the two ‘gentlemen’ nominating each other!

POSTSCRIPT 10/6: A highly defamatory Comment was sent by the Cape Whale Coast DMO to this blog, in reaction to this blogpost, as well as to our radio interview on Whale Coast FM earlier today.   Clinton Lerm, the Chairman of the Cape Whale Coast DMO, was invited to be interviewed, but refused to participate if he was on the same program as ourselves, based on legal advice.  Hermanus Tourism Bureau Chairman Charl de Kock did participate.  Joan-Anne Harris, a Director of the DMO, tried a number of times to get the topic of the radio programme stopped earlier this week.  We will not yet publish the defamatory comment, and will use it for possible legal action.

POSTSCRIPT 16/6: We believe that it is in the interest of transparency that the Cape Whale Coast Comment sent to this blog be published.  We have been challenged to do so by Joan-Anne Harris’ partner David Snoek :

anonymous
info@whalecoast.info | 198.54.202.210

I think you will all find that HTB is running smoothly, receiving positive feedback from Tourists, and NOT FIGHTING AMONGST EACH OTHER. Chris, however, feels the need to fight with everyone she comes into contact with! Why is this? Is she unhappy? – Or does she fancy herself as a bit of a ‘celebrity’ with all the comments on her blogs? I cannot see that she is any kind of ambassadeur (sic) for Hermanus, what with the amount of bad publicity she attracts. I say out with her! She’s a stirrer, a trouble-maker and horrible person!

POSTSCRIPT 30 June: Noseweek  was alerted to this blogpost, and its July issue contains an excellent article about the Lerm family, and its litigious approach to dealing with criticism!

POSTSCRIPT 10/8: We received the following apology from Fabio Lenci, Vice-Chairman of the new Hermanus Tourism Bureau committee, about the insulting blogpost which came from the now-defunct DMO : “The following is written on behalf of Hermanus Tourism of which we have all agreed and I have been mandated as vice chairperson by the new committee to send you a letter of apology.  Please note that we have exhausted every avenue and to confirm that we cannot trace the individual who used the terminal as it could have been anyone. It is with regret that I have to write you this letter of apology on behalf of the previous dispensation and also the new dispensation would like to extend their sincere apologies for the undesirable comments made on your blog dated May 2011.  We wish to inform you that we have begun with various encouraging motions in the right direction to get HTB and all its members on track in a positive frame of mind and rest assured that we have the backing of the whole of Hermanus. We look forward to a prosperous future with all the positive support while achieving our goals one at a time for the good of Hermanus & all its citizens”.

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

Whale Coast tourism DMO refuses to make minutes a-whale-able!

For the past six weeks all attempts at obtaining minutes of two Special General meetings called to change the Constitution of the Cape Whale Coast Destination Marketing Organisation (DMO) have failed, with an e-mail from its Vice-Chairman, Daniel Acker, refusing access to the minutes both in my capacity as a member of the Hermanus Tourism Bureau and as a writer of this blog, without approval at the next Board meeting!  We question what the Cape Whale Coast DMO is trying to hide by not making the minutes of the two meetings available.  Maybe the Cape Whale Coast payoff line ‘wonders never cease’ is apt, given that the DMO is working with municipal funding generated from Overstrand ratepayers, and therefore transparency should rule!

More than two years ago the Cape Whale Coast DMO was established by the Overstrand Municipality, which is responsible for the municipal services of the area stretching from Rooi Els in the west to Gansbaai in the east.  The DMO is based in Hermanus, and half of the Board members are from Hermanus, under the Chairmanship of Misty Waves Hotel Manager Clinton Lerm.

When the Cape Whale Coast DMO was established, its constitution automatically made all business owners along the Overstrand members of the DMO, if they were paying rates and taxes.  No membership fee was payable.  The DMO’s main task, as per its name, was to market the Overstrand towns as a joint tourism destination and to manage the tourism bureaus in each of these towns .  The same constitution contained a directive that a CEO would be appointed, to manage the DMO.  This appointment still has not happened.   This means that a Board of 14 Directors manages a Section 21 company with only one staff member, and therefore the directors of the Board have taken over management positions for the DMO.  For example, Lerm’s mother Maxie handles Marketing and Public Relations for the DMO, and Clinton Lerm and Daniel Acker (of People Management Solutions Group, a labour practitioner in Hermanus, with no tourism business interests) represented the DMO in May at the ITB tourism trade show in Berlin, and another in Russia (an insignificant tourism market for Hermanus!).

Earlier this year the DMO changed its Constitution of 28 November 2007, at a second Special General meeting held on 8 March at the Lerm’s Misty Waves Hotel, with a resolution seconded by Chairman Clinton Lerm’s father and Director Maxie Lerm’s husband Henry (after a first Special General Meeting on 1 March had failed due to not attracting a required quorum of 100 attendees – only 14 members attended).  The change to the constitution was motivated to the DMO members on the basis of the changes made to the ‘Municipal Finances & Companies Act’ (no such Act exists – it is called the Municipal Financial Management Act, and it does not appear to contain any clauses that would have necessitated the constitutional changes made), the minutes of the meeting of 1 March stated!   The major change was that Overstrand ratepayers no longer were automatically members of the DMO, and allowed the DMO to set up membership of its tourism body in competition to the tourism bureaus in the Overstrand area.   The minutes of the 8 March meeting are very brief, and do not state who attended the meeting – bizarrely the Constitution allows a second Special General Meeting to be held a week after the first one if it fails to attract a quorum, and can conduct its business as long as at least one member is present!

What attracted attention to and the first criticism of the DMO was that the DMO has set up a kiosk near the key whale-watching area in Hermanus, from which it was taking accommodation bookings only for its members, and not for all members of the Overstrand tourism bureaus.  These members are now asked to pay a double membership, to belong to both bodies, yet each tourism bureau reports to the DMO, an unheard of model of tourism marketing, if Cape Town Routes Unlimited, the provincial marketing body, is the role model for the DMO.  Even more curiously, the Hermanus Tourism Bureau, which has an unfortunate location at the old railway station building, had to vacate its offices due to construction work close by, and was not given the kiosk, so that it can be easily found by tourists requiring accommodation and other tourism information.

Even more odd is that as a result of two competing tourism bodies in Hermanus, the town now has two whalecriers!   The original whalecrier of Hermanus, who was an appointee of the Hermanus Tourism Bureau, had his appointment terminated due to an offence, just as the DMO was heading for Berlin.  Desperate to have a whalecrier on show, the DMO appointed the whalecrier, and took him to Berlin at short notice.  He has been appointed by the DMO to man its kiosk, and the Hermanus Tourism Bureau has appointed its own whalecrier!

Late last year we questioned these actions of the DMO,coupled with the conflict of interest in Clinton Lerm being both the Chairman of the Hermanus Tourism Bureau and of the DMO.  This resulted in a letter from the DMO’s lawyers, threatening legal action.  Nothing came of this threat, probably as the DMO management realised that a number of dissatisfied Overstrand tourism bureau members feel as I do.

In July the DMO held its AGM, and on the basis of its constitutional amendment, disallowed any Overstrand tourism bureau members from attending the meeting if they did not hold DMO membership, and were also not allowed to be nominated or elected to the Board of the DMO.  This is when I started asking questions, requesting a copy of the DMO Constitution (previously this was freely available on the Overstrand website www.overstrand.gov.za), and the minutes of the meetings approving the constitutional changes.  It took four weeks to receive the e-mailed copy of the Constitution, and two days ago the following officious and somewhat threatening e-mail was received from Daniel Acker (all correspondence had been addressed to Clinton Lerm!):

“This response is done without prejudice of the rights of the author, Cape Whale Coast Destination Marketing Organisation (herein after referred to as ‘CWC DMO’), or the Overstrand Municipality. All rights of these personae therefore remain reserved herein.

Your email herebelow (sic) has been read, and the tone & content thereof has been noted. We place on record herewith that we shall not respond thereto in full, at this time, and reserve the right to do so at a later stage and in the appropriate forum.

Regarding your request, related to the minutes ‘minutes that approved the change of the Whalecoast DMO’ . We assume that you refer  herein to the minutes related to changes to the Constitution that were presented to, and approved by, the Counsellors (sic) of the Overstrand Municipality. These minutes are available to members of the CWC DMO, and our records show that neither you, nor your establishment, are members of the CWC DMO. Your request in this regard shall therefore have to be tabled at the next full board meeting, for consideration.”

 

What the members of the tourism bureaus in the Overstrand want is to be part of the DMO by virtue of their membership of the tourism bureaus which report to the DMO, and that bookings will be taken at the kiosk for all members of tourism bureaus in the Overstrand at no charge of membership, but on payment of a standard 10 % commission of the booking value (the DMO charges 12% commission in addition to its membership fee).    Neither the old nor the amended constitution of the Cape Whale Coast gives the DMO the duty to run a tourism bureau in opposition to those already operating in the Overstrand.

Furthermore, the Constitution does not prescribe that nominees for the Board must be members of the DMO (for example, a representative of the Overstrand Municipality is specified as having to be a director), nor does it prescribe that only DMO members can vote for the election of its Board of Directors, or on any other matter – it was confirmed that Hermanus Tourism Bureau members were not allowed to be nominated as Directors, nor voted for at the recent DMO AGM, according to an e-mail sent to me by Daniel Acker.   Members furthermore question why the Misty Waves Hotel features so prominently as the venue of the DMO meetings, and how two co-owners of the hotel can serve on the DMO Board, one of them handling the PR and Marketing for the DMO.  Whilst the Constitution defines the role of the Chairman of the DMO to be to lead the Board, to induct the directors, to plan meetings, and to ‘support the CEO’, it is questioned why Chairman Clinton Lerm, and not his mother Maxie, went to Berlin and Russia to represent the DMO, and why Daniel Acker had to go as well.  The duplication in tourism offices and in whale criers is also questioned, all being wasteful expenses.

It would appear that pressure on Chairman Clinton Lerm may be leading to some changes, and it is rumoured that he has resigned as Chairman of the Hermanus Tourism Bureau, due to the conflict of interests in heading both bodies, something we pointed out in our blog post of 28 December already. However, he has not yet formally announced his resignation, nor confirmed it when we requested this of him by e-mail.

POSTSCRIPT 2/9:  The Comments section for this blog post makes for interesting reading, in setting out two points of view – two guest house owners’ perspectives, who argue along the lines of this post, and that of a Director of the Cape Whale Coast DMO, who protects the interests of the DMO.

Furthermore, the Hermanus Tourism Bureau has e-mailed its members an article which appears in the Hermanus Times today, written by Clinton Lerm.  It justifies what has happened constitutionally, and announces that members of the Overstrand tourism bureaus will automatically become members of the DMO, once this constitutional change has been approved at a Special General meeting of the DMO.  Taking bookings at the Market Square kiosk for all Overstrand tourism bureau members is also receiving the DMO’s consideration – we applaud the DMO for listening to their “customers”, and wonder why this was not dealt with correctly from the word go!

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