Tag Archives: Solly Fourie

Wesgro’s marketing of Western Cape: around the world in 80 days already!

After having met Wesgro CEO Nils Flaatten two months ago, a week after he had taken over the responsibility for marketing the Western Cape from Cape Town Routes Unlimited, which organisation was incorporated into the trade and investment promotion agency on 2 April this year, we requested feedback about the progress made in marketing the region. Mr Flaatten had asked the industry to give him a month to get the organisational integration completed. An e-mail request for feedback on the marketing progress earlier this month led to an invitation by Mr Flaatten to meet with him on Tuesday.

The most exciting news for the local tourism industry, and Mr Flaatten’s first major challenge, is the 5 July meeting called with SAA’s General Manager Theuns Potgieter by Wesgro with 15 players in the Western Cape, including local and city government, an Eastern Cape tourism marketing body representative, and larger tourism companies, to discuss SAA’s decision to cut its Cape Town-London route as of 15 August. The airline will be asked to motivate its decision in culling the route.  Joint destination marketing between the Western Cape and SAA in bringing in tourists from destinations such as Beijing, Sao Paulo, Mumbai, Melbourne, various African destinations, and Buenos Aires will be discussed too.   Subsequent meetings will be held with the airlines which will continue to serve the Cape Town-London route, including BA, Virgin, and Emirates, to discuss bringing in more flights to Cape Town.

The parking organisation was perfect, and Mr Flaatten chose for us to go to Doppio Zero on St George’s Mall for the meeting.  He had copies of the slides which he used for his recent presentation at FEDHASA Cape’s AGM, which I had requested via his secretary, but the wait was worthwhile, as Mr Flaatten was able to explain his points in greater detail.  Mr Flaatten is a very precise person, and he referred repeatedly and proudly to the progress that he and his new team have made in the ‘two months and 19 days’ since their integration. In the past 80 days Wesgro has undertaken the following Marketing activities:

*   Mr Flaatten and Solly Fourie, Head of the Western Cape Department of Economic Development and Tourism, accompanied an (unnamed) Chairman of a JSE-listed hotel company to Buenos Aires, to meet six outbound tour operators. Mr Flaatten praised their product knowledge of the Western Cape. He said that the withdrawal of the Cape Town-Buenos Aires Air Malaysia route is a serious blow to tourism from Argentina. His journey from Cape Town to Buenos Aires via Johannesburg took 24 hours, previously a direct flight of 7 hours flying west.

*   Bjorn Hufkie from Wesgro’s Conventions Bureau accompanied the (unnamed) Managing Director of a JSE-listed hotel company to Saudi Arabia and Kuwait

*    Participated in exhibitions: Arabian Travel Market in Dubai, IMEX 2012 in Frankfurt (incentive travel, meetings and events); and Indaba in Durban. Mr Flaatten said that all six the RTOs were represented on the Western Cape stand, and that they will ‘raise the bar’ for 2013.

*   Debbie Damant has been part of SA Tourism’s marketing mission to China and Japan

*   Met with Cape Town Tourism, the largest RTO (regional tourism organisation) of the six in the Western Cape, asking some ‘tough questions’ of them

*   Met with Eden RTO, and some of its LTO’s (local tourism bureaus)

*   Met with SAA at Indaba (prior to SAA’s bombshell announcement about the Cape Town-London route)

*   The Western Cape Tourism Barometer for the fourth quarter of 2011 was released.

*   The Wesgro website has been updated, incorporating its new additional Destination Marketing role, clicking through to the tourism information previously on the Cape Town Routes Unlimited website

*  One of the greatest achievements is the detailed listing of over 100 events in the province in the next six months, with detailed information about each event

*   Organisationally, the activities and marketing focus of the six RTOs (Cape Town, West Coast, Eden, Cape Winelands, Central Karoo, and Overberg), and its tourism bureaus within the municipalities within the RTOs have been captured, within a Customer Relationship Management program.  An intensive Facebook campaign to interlink and like the LTOs and RTOs is underway.

Looking ahead for the next 10 months the focus will be to deliver on the Annual Performance Plan in respect of destination marketing; create operational efficiency, effectiveness and cost savings, which savings will go into the Events budget, Mr Flaatten said; fill staff vacancies; strengthening relationships with the RTO’s and LTO’s, international airlines operating from Cape Town International, tourism trade bodies, SA Tourism, and other national tourism bodies; ‘impactful marketing and advertising of the destination’, website integration and marketing strikes in respect of tour operators, to keep up the ‘share of mind’; aggressively market the Conventions Bureau, pushing conferences into the provincial towns and villages too; stimulate Events and fund smaller events; and SMME development.   Wesgro is pitching to host SIAL Cape Town, which would become a fantastic new food event creating a ‘Global Food Marketplace’, already held in Paris and China, and is planned to be hosted in our winter months, to address Seasonality.  The Western Cape Tourism Marketing Plan is expected to be ready by September.  Inter-provincial travel within the Western Cape will be an important focus.  Mr Flaatten was requested to provide feedback on what Wesgro is doing for the tourism industry as frequently as possible, all media communication to ourselves having been terminated since Wesgro took over.  We fed back that the Tourism Bureaus are not passing on Wesgro’s information to its members, which seemed to surprise him.

Mr Flaatten provided a copy of the latest Tourism Barometer, surprisingly signed off by Calvyn Gilfellan, former CEO of the ex-Cape Town Routes Unlimited. In the last quarter of last year 216000 international tourists arrived in Cape Town, a welcome increase of 15% over the same period a year before.  Domestic arrival growth was far lower in the same period, at 4%, with just under 1 million visitors.  A large part of the report contains statistics of visitor numbers to the province’s key tourism attractions, and to the RTO’s local tourism bureaus, a very unreliable tourism barometer, given that fewer visitors require the information or booking services of tourism bureaus, doing most of their bookings at home via the internet before their departure.

Organisationally, the integration between the ex-Cape Town Routes Unlimited staff is complete, section 197 of the Labour Relations Act having been followed, in that all staff (also the Wesgro staff) were offered staff benefits at the higher level of those offered by Wesgro and Cape Town Routes Unlimited, so that all Wesgro staff now receive the same benefits.  A Memorandum of Understanding, a Memorandum of Agreement, and a budget have been signed by the Joint Working Committee guiding the integration. The Annual Performance Plan of Cape Town Routes Unlimited has been transferred to Wesgro.   For the financial year April 2012/March 2013, Wesgro now has a total budget of just more than R51 million, 45% being for Cape Town Routes Unlimited funding.  All ex-Cape Town Routes Unlimited staff now have Wesgro contracts, e-mail addresses, and business cards.  Staff have been grouped by functionality and accommodated on the 7th and 12th floors of the Waldorf building.  Provincial Tourism Minister Alan Winde’s department is working on repealing the Tourism Act of 2004, which will close down the Board of the ex-Cape Town Routes Unlimited, which currently has to remain operative as long as the current Act is in place.

Wesgro needs to start from the beginning in gaining the confidence of its Western Cape tourism constituency, which had little faith in its predecessor Cape Town Routes Unlimited. The outcome of the 5 July SAA meeting will be a crucial test of its negotiating skills. In addition, it will be judged on its ability to communicate with the tourism industry on a regular basis, via traditional media channels as well as Social Media marketing.

Wesgro, Waldorf Arcade, 80 St George’s Mall, Cape Town.  Tel (021) 487-8600. www.wesgro.co.za Twitter: @Wesgro

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

Western Cape EDP to unite ‘divided tourism industry’!

An announcement that the tourism industry has been waiting for a long time, that was made via Southern African Tourism Update three days ago, is welcome news. The Western Cape Minister of Tourism Alan Winde has announced that the Economic Development Partnership (EDP), launched in Cape Town a week ago, will focus on the unification of the ‘divided tourism industry‘ as its first task!

Minister Winde said that the EDP should bring together the tourism industry, currently divided amongst political and municipal boundaries. He said that the successful unification of the tourism industry would be ‘one of the first wins of the EDP’.   No further detail is provided as to what exactly is intended for the tourism industry, already shocked at the Minister’s decision to incorporate the now defunct Cape Town Routes Unlimited into Wesgro, a trade and investment agency that has no tourism experience or track record.  When we questioned Wesgro CEO Nils Flaatten about the EDP and its role relative to his organisation, he claimed to not know anything about the EDP, and referred us to the Western Cape Director of Economic Development and Tourism Solly Fourie.

More important than the unification of the individual tourism organisations throughout the province, is the need to address the duplication between the work done by Cape Town Tourism and the tourism arm of Wesgro.  At its recent Marketing presentation, Cape Town Tourism presented its National Geographic campaign shared with Durban Tourism, doing expensive international marketing via the magazine and TV channel in a potential tourism market such as China, and in India, work which should be done by the tourism arm of Wesgro, but ideally by SA Tourism, having a most effectively run office in that country, and a far larger marketing budget.

The EDP was launched at the Cape Town Film Studios outside Cape Town a week ago, intended as ‘an innovative body based on world best practice that will bring economic players from across the province together to drive, lead and coordinate regional economic growth’, said the Minister’s spokesperson.  It is planned as an independent membership-based body, the province’s 40 or more business promotion bodies and economic development agencies to be incorporated into the EDP. The main goal is to address poverty, the province’s biggest challenge, by stimulating economic growth and creating jobs, the Minister said. He likened the EDP to the’tiller that allows us to proactively steer our economy, which has been largely rudderless up until now’!

Some of the organisations earmarked to join the EDP include Accelerate Cape Town, Agri Western Cape, the City of Cape Town, the provincial government, Wesgro, Overstrand Municipality, Afrikaanse Handelsinstituut, Fabcos Western Cape, Cape Town Tourism, the Cape Town International Convention Centre, the Cape Winelands District Municipality, Fair Trade in Tourism, Fedhasa Cape, and NAFCOC Western Cape.   The EDP has been convened over the past 15 months by a steering committee led for the Minister by Cape Town Partnership CEO Andrew Boraine.

Given that the EDP is a brand new body still in its infancy, it could take a considerable time for the Minister’s first task of the unification of tourism in the Western Cape to be achieved.  Boraine has said that progress in achieving the goals could be slow, and that results may only visible in ten years from now! The biggest issue is how it deals with Cape Town Tourism, which expressed its independence at the time when the Minister first started mooting the concept of an EDP for the Western Cape.  A further concern is that Boraine has been quoted as saying that the first EDP priority is the Future Cape 2040 initiative, creating a vision of the future of the province, whereas the Minister has identified the unification of the tourism industry as its first priority!

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

Economic Development Programme to amalgamate Cape tourism bodies?

The planned Economic Development Programme (EDP), which was announced by Alan Winde, Western Cape Provincial Minister of Finance, Economic Development and Tourism, more than a year ago, could see the amalgamation of Cape Town Routes Unlimited and Cape Town Tourism.

In a report in Southern African Tourism Update, a new steering committee of seventeen members for the EDP is announced, which includes current Cape Town Routes Unlimited (CTRU) Chairman Peter Bacon, Protea Hotels Group’s Otto Stehlik, and Western Cape province head of Economic Development and Tourism Solly Fourie, with Minister Winde.  The role of the Steering Committee is to ‘guide the final design, implementation and launch of the EDP’. More specifically, the Steering Committee agreed that the EDP should seamlessly integrate all sectors of the Western Cape economy, it should ‘institutionalise’the partnership between government and business to create mutual accountability for the future of the economy’ of the province, it should guide business around shared goals, it should create an environment that is conducive to small and large business as well as attracting investment to the province, it should provide ‘economic and market intelligence’, and should monitor the performance of the economy.  Greater employment will also be addressed by this not-for-profit body. One of the specific aims of the EDP is to create ‘a single strategy and brand for the region’s economy’, says a media release issued by Minister Winde earlier this year.  The ‘Cape Town and Western Cape’ brand name was highly controversial when it was introduced at the inception of Cape Town Routes Unlimited.

The report states interestingly that ‘it is anticipated that the EDP will resolve the current duplication of marketing efforts by CTRU and Cape Town Tourism (CTT), resulting from a historical impasse between the province and the city, which funds CTT’.  When the Minister first announced the establishment of the EDP, and his desire to amalgamate all economic and tourism related bodies in the Western Cape, Cape Town Tourism expressed its vehement opposition to the EDP, and declared its independence.  The Minister has not mentioned Cape Town Tourism as one of the bodies to be amalgamated more recently, and Cape Town Tourism has also not done so, just referring to its benefit for the province in general at its recent AGM.  Even more interesting as that Cape Town Tourism’s legal advisor Mike Evans of Webber Wentzel referred blatantly, and out of context to the AGM proceedings, to the closing down of Cape Town Routes Unlimited, while he may have meant that the operations of the EDP would be incorporated into the EDP.

Winde has used the model of the London Development Agency for the EDP, and has appointed Cape Town Partnership CEO to lead a task team for the establishment of the EDP, which is to open its doors in April 2012. In September we wrote about the Economic Development Agency, its name at the time, and the list of eighteen Western Cape economic promotion bodies which are to be amalgamated into it, including Wesgro, the Cape Film Commission, Cape Town Routes Unlimited, and the Cape Town Fashion Council. There has been no mention of Cape Town Tourism as being one of the bodies since then.

Only through the amalgamation of both Cape Town Routes Unlimited and Cape Town Tourism can the current costly duplication of marketing Cape Town and the Western Cape be eliminated.  Whilst the City of Cape Town funds Cape Town Tourism, and the DA rules both the city and the province, it will be interesting to see if the City of Cape Town and Western Cape province can see the bigger picture and co-operate in pulling Cape Town Tourism into the body as well, for the benefit of a united tourism industry in the Cape. The proviso of course would be that the EDP should be run efficiently and along business principles.  The management of Cape Town Routes Unlimited has been a disaster, and is not a model for how the EDP should be run!  We call on the Minister to communicate in more detail with the tourism industry, to explain his plans with the EDP.

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