Tag Archives: stakeholders

Cape Town: City of Inspiration to work at addressing challenges in attracting business!

Cape Town Tourism has been conducting a series of ‘Brand Cape Town’ workshops since late last year, to share with its members as well as bloggers and other stakeholders what the outcome has been of a brainstorming session to find a positioning for Cape Town and what it can/should be, and to focus its marketing activities, not only from a Tourism perspective, but also from a general Business approach. 

Scanning the external environment, it identified threats such as the economic crisis, global urbanisation, and a greater consciousness about the impact of flying on the environment and climate change.  It also faced the reality that the seasonality in Cape Town’s tourism industry, unique to our city compared to others in the country, reflects that Cape Town does not have enough business tourism, being the result perhaps of too large a focus on Leisure Tourism in the past, and too little on attracting businesspersons to have their meetings, events and conferences in Cape Town.  Comparing the positioning of major world cities, e.g. Paris is Romance, New York is Energy, London is Tradition, it has historically been Beauty for Cape Town. Through its analysis, it was identified that the positioning of Inspiration is an overarching one that can position Cape Town beyond its more narrow tourism focus, to a broader one, reflecting the strengths of the City in respect of beauty, freedom, innovation, hope, creativity, diversity, dreams, ideas, and solutions to problems.

We have been critical about what we have seen in print about the Brand Cape Town workshops, but a completely different picture emerged in the presentation, which I was invited to attend last week, the last in the process of sharing the outcome of the brainstorm, and in obtaining input to the content of the branding and marketing debate.  To justify the positioning of Inspiration, Cape Town Tourism CEO Mariette du Toit-Helmbold took the attendees through the various ways in which Cape Town inspires its citizens, its local visitors, and its international tourists.  It was an inspiring presentation, and afterwards I felt proudly Capetonian in having learnt a lot more about the achievements of our city and its people.  The following were some of the Inspiration highlights identified for Cape Town in the presentation:

*   Nelson Mandela took his first steps of freedom in Cape Town, and Cape Town should own this historic moment

*   quality education facilities, with four top class universities in Cape Town and Stellenbosch.  Stanford has set up a satellite campus in the city, and Harvard is said to follow suit.   UCT had been voted top university in Africa, and best value for Money MBA in world in a Financial Times survey

*   safe CBD

*   excellent and modern infrastructure, including the airport, the IRT bus system, the station, highways, and the Cape Town Stadium

*   ‘cosmopolitan entry point into South Africa and Africa’

*   Focus on Biodiversity, with the smallest but most bountiful floral kingdom.  Kirstenbosch has won gold or silver for the past 33 years at the Chelsea Flower Show in London

*   Excellent healthcare facilities, with pioneering medical leadership, including Dr Christiaan Barnard’s heart transplant world first

*   One of best value guest house and B&B cities, offering not only 5-star accommodation

*   An historic port city

*   The V&A is South Africa’s leading tourist destination, and has further development plans

*   The Green Point Urban Park

*   A living heritage in the Castle, the oldest building in South Africa

*   A historic showcase of creativity at the Iziko museums and galleries

*   Living contemporary culture with African and European roots, which is not gumboot dancing!

*   Rich music tradition, in goema and Cape Minstrel music, but also current, with Goldfish, Jack Parow, Freshly Ground, Kyle Shepherd, Locnville, Die Antwoord, and Abdullah Ibrahim.  The Cape Town International Jazz Festival has become a world event.

*   Sporting tradition, in hosting the world’s largest timed Argus Cycle race, and the Volvo Ocean Race includes Cape Town, and sportspersons such as Para-Olympic star Natalie du Toit, and the development of the paddleyak

*   A theatre tradition, with Athol Fugard receiving a Lifetime Achievement award at the Tony’s for his plays

*   Africa’s first billionaire and space traveller Mark Shuttleworth, and his Shuttleworth Foundation, supporting IT development.  Development of Silicon Cape.

*   Sustainability Institute of the University of Stellenbosch

*   The Cape Town International Convention Centre is the leading convention centre in Africa

*   The leading builder of twin-hull catamarans

*  The favourite film and photography location, because of the beauty of and good light in the city, and the potential of a James Bond movie being shot in the city

*  Nobel Peace Prize winners such as Archbishop Desmond Tutu and Past President FW de Klerk

*   Table Mountain, which is a finalist for the New7Wonders of the World

*   Visits by magnificent Southern Right whales, home to penguins

*   Environmentally-friendly Green Cabs, and the opening up of cycle and pedestrian routes in the city 

*   Leading environmental and sustainable city, with all new low-cost housing built with solar geyser panels, and wind-farming in Darling.  ‘Smart Living Handbook’ for sustainability written by City of Cape Town 

*   Three wine routes within Cape Town and 16 on the city’s doorstep, with many boutique wine farms

*   Beer tourism is a new segment, with 40 micro breweries within a 2-hour drive of Cape Town.  Inspiring new BOS ice-tea 

*   Fresh produce markets, with organic foods, outstanding restaurants such as The Test Kitchen and Mzoli’s Meat define Cape Town, and the plan is to develop a Master Chefs Cape Town series.   Having Justin Bonello showcase South African food is a boost for the city.  Charly’s Bakery is a passionate, all-women team, who baked a cake representing Cape Town for the Design Indaba.

*   Cape Town is one of three finalists for World Design Capital 2014, with Bilbao and Dublin, spearheaded by the Cape Town Partnership.  The judges will be in Cape Town from 24 – 27 July, and the winning city will be announced on 26 October. The Design Indaba is a design highlight for the country, with its annual conference and exhibition.  At the last exhibition, attendees were asked to write in support of the city’s bid – this comment summarised what Cape Town stands for: “Cape Town’s people are her most beautiful landscape”.

*    Cape Town has a vibrant fashion scene, designer Dion Chang saying that “The tip of Africa is the tipping point”.

*   Cape Town is at the center of the magazine publishing industry.

*   The city has excellent furniture designers

*   The Joule electric car is being built in Cape Town, the first in Africa.

*   Cape Town has more Social Media users than any other part of the country 

 During her presentation, Mrs Helmbold made a number of statements about our city:

*   Economy based on tourism, finance, infrastructure, food and wine, logistics, and creative industries.

*   Cape Town is at the tipping point, either sinking into oblivion, or living up to the accolades it is reaping

*   Cape Town has been in a brand vacuum since the World Cup – not spending money on marketing the city will lead us to the example of Sydney, which is seeing a steady decline in visitors as it decided to not market the city after the 2000 Olympics

*   A destination is not just a slogan or a logo

*   Cape Town is a city of contrasts, of haves and have-nots

*   Brand Cape Town’s strength is Tourism (Visit), it is neutral on its education and residential facilities (Live and Learn), and weak on its potential as a centre of employment and investment (Work and Invest).

*   Cape Town underperforms in domestic tourism, mainly relative to Durban

*   Conversion of holidaymakers into business tourists is needed for Cape Town, and business visitors must be encouraged to return as holidaymakers, as Cape Town is weak as a Business Brand

*   Cape Town is a ‘challenger brand’ which does not have a long-established history, and stands for freedom, freshness and transformation, attractive to a world that has got tired of visiting boring places. “Challenger brands harness the power of authenticity, locals first, emotional pull, storytelling (Word of Mouse)”.

*   The pillars of Cape Town are Robben Island; its cultural diversity; the food and wine industry; Biodiversity; Table Mountain; Cape of Good Hope; hubs of innovation, creativity, enterprise and government; higher education and skills training; Sports and MICE; and Colour and Light.  

Cape Town Tourism is to assist business-related bodies in the city to market the city with a ‘brand box’.   It has worked with Accelerate, Cape Town Routes Unlimited, Wesgro, Cape Town Partnership, and the City of Cape Town in developing the new positioning for Cape Town, to establish it as ‘one of the top world cities to live, work, invest, learn and visit, in order to drive inclusive economic growth and social transformation in Cape Town’.  The presentation we attended was the last, and the implementation phase will now commence, Mrs Helmbold said.  In question time, FEDHASA Cape chairman Dirk Elzinga stated that great things are happening in Cape Town, but ‘we are not telling the world’, he said.

Mel Miller, former ad agency owner and creative director, and ex Cape Town Tourism Board member, is very critical of Cape Town’s new ‘Inspirational’ positioning, saying that it has been used by Edinburgh (‘Inspiring Capital’) already.  Miller points out that a previous tourism strategy consultant to Cape Town Tourism comes from Edinburgh! 

Mrs Helmbold showed a video presentation by Silver Bullet meant to represent Cape Town.  It was certainly not one of a beautiful Cape Town, but one of a very cloudy looking Cape Town, with a lot of focus on clouds billowing over Table Mountain and the Twelve Apostles, and what appeared as a fast-speed race through Cape Town.  I was NOT inspired by it, and it did not represent any of the Inspiration that Mrs Helmbold had presented to the audience.

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