Tag Archives: Sun International

BRICS focus to rebuild tourism to the Cape!

It is interesting to see how the Western Cape government, and even Cape Town Tourism, have reacted to the feedback that the Cape Tourism industry is in crisis, stated in a Cape Argus front page story featuring information from our blog as well as referring to an open letter to the tourism industry by Collection by Liz McGrath GM Tony Romer-Lee.  Alan Winde, Minister of Tourism in the Western Cape, has announced that the BRICS (Brazil, India, China, Russia, and even locals from South Africa) are the tourism market of the future.

Without spelling out the exact details of what is planned, a Cape Argus report earlier this week highlighted what the Western Cape is planning:

*  ‘Escape to the Cape – Whatever the Weather’: this campaign is to be aimed at Gauteng, KwaZulu-Natal and the Eastern Cape.  The name is clumsy, another way of saying Green Season, but there has been no sign of the campaign actually having been launched, as claimed in the article.

*   attending trade shows in Brazil and Argentina in September, organised by the South African embassies in those countries

*   a road show to China, Korea and Japan by Cape Town Routes Unlimited CEO Calvyn Gilfillan. Cape Town has just been awarded the Preferred Tourist Attraction 2011 by the World Broadcasting Union in China, beating the Great Barrier Reef, Australia, Spain, Germany, Italy, and Paris. Sun International has also been on a marketing expedition in China in the past month.

*   market to the west coast of Africa, rich in oil, with huge numbers of wealthy individuals.  Clive Bennett, CEO of the One&Only Cape Town, told me at a recent function that Nigeria has a population of 160 million, of which 20 % are hugely rich, yet most have not heard of Cape Town!

*   Exhibiting at the FILDA International Trade Exhibition in Luanda, Angola, last week, and the Western Cape was the only South African province to exhibit.  Minister Winde will be visiting Angola in September.  Cape Town Routes Unlimited’s Debbie Diamant, who headed the exhibition, said that Angola is an important growth market, but marketing material must be prepared in Portuguese. Obtaining visas to South Africa is one of the greatest barriers to tourism.

Adding to this, CEO of Cape Town Tourism Mariette du Toit-Helmbold said the (now amended) positioning  ‘Inspirational, value-for-money destination’ will be ‘branded’ (it appears she does not understand that ‘Cape Town’ is the brand, not the positioning!) for Cape Town.  She plans to ‘leverage events’ (held in summer!) like the Cape Town International Jazz Festival and the J&B Met, but exactly what she plans to ‘leverage’ is not stated!  A joke is that she seriously states that the new “100 Women 100 Wines’ competition to be held in Cape Town next month, and run by Spill blog with TOPS, will ‘stimulate domestic tourism arrivals’!  Cape Town Tourism is marketing the event heavily, as if it has nothing else to do!!

The same Cape Argus report contained same political point-scoring from ANC ex-Premier Lynne Brown, blaming the DA for the ‘tourism crisis’, saying that it was due to ‘funding cuts, the distress of thousands of workers who may lose their jobs, and adverse elitist perceptions deterring visitors from other provinces”!  Minister Winde reacted to the criticism, countering that it was not only tourism, but that all business sectors in the Cape that are struggling. 

An interesting e-mail from S A Tourism, written by its Trade Manager, provided interesting insights into the Chinese market: 68000 Chinese tourists visited South Africa in 2010, a 62% increase.  They stay for 10 days on average, and are most likely to visit Gauteng, and then the Western Cape. They enjoy wildlife and the scenery, and visiting the soccer stadia.  She also provided hints and tips to the hospitality industry, in dealing with Chinese tourists: they love green tea, sausages, fruit, yoghurt, eggs and bacon for breakfast; they eat ‘2-minute’ noodles in the morning; they prefer Chinese food but are interested in trying local food; they like our seafood, especially abalone and lobster; they enjoy a braai; they do not like sweet desserts; they like our fresh fruit; they enjoy going to the casino and to see a live show; they enjoy karaoke bars; they enjoy receiving small hand-made gifts; they like seeing the clouds in our clear skies, and the stars at night;  wireless internet is important, and an adaptor for their plugs, so that they can charge their camera, laptop and phone; they prefer 4- and 5- star hotels, and guest houses too. 

We have always been told that Cape Town is unique in suffering seasonality of business in winter.  I was surprised therefore to speak to a Johannesburg tour operator, who called to express his surprise about our recent newsletter spelling out the doom and gloom about the Cape Tourism industry.  He believed that the Cape receives almost all the tourism business in the country, and therefore should be flourishing relative to other parts of the country.  He told me in what dire straits the Gauteng tourism industry is in, and this was confirmed by the shock news that The Grace hotel in Rosebank, Johannesburg, will be closing at the end of August, as it is no longer financially viable to operate it.

While it is commendable that the Western Cape’s Tourism department is acknowledging the tourism crisis, we worry about Cape Town Tourism’s ability to react to the it, still being without a Marketing Manager, and not spelling out its immediate plans to address the crisis.  The tourism body will be doing a road show to share its Marketing Plan with its members on 10 and 11 August.

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

Hospitality and Tourism student internships more pain than gain!

Over the fifteen years of operating the Whale Cottage Portfolio, we have regularly offered hospitality and tourism students the opportunity to do their training at one or more of our Whale Cottages.   Our most recent experience was with students of the  Tourism and Business Institute of Southern Africa, and we wish to share our experience with this unprofessional Institute, as a warning.

In March we received an e-mail from Zakiyya Murtuza-Peerun, who signs her e-mails as Operations Director of the Tourism and Business Institute of Southern Africa, based in Mowbray in Cape Town.  I had never heard of this Institute.  She requested that some of her students be placed with us for training in “housekeeping/accommodation”, and we agreed to take two students for Whale Cottage Camps Bay, as well as a third for Whale Cottage Hermanus, in the optimistic hope that April would be a busy month, given the public holidays and long weekends.  I received a reply from Ms Murtuza-Peerun, stating that she would get back to me with the names of the students allocated to us.  I did not hear from her again.

Two aspects were different to our experience with other training institutions – we were able to interview potential students in the past, so that we could accept or reject the students prior to them starting with Whale Cottage.  To this end, we would receive CV’s of the student candidates. This did not happen. The internship period was odd, in that it started on 11 April, and was to end on 8 May, a very short four week period, not long enough at all for any significant training.  From May onwards the hospitality industry goes into winter mode, with barely any guests, and therefore there would be little practical training possible from this time onward – it was surprising that a Tourism training intsitute did not know this!

I was surprised to receive calls from two students on 10 April, the day before their start date, informing me of their arrival on the following day.  We had no CV’s, nor did we have any guidelines from the Institute as to what its training expectations were of us. The students started at Whale Cottage Camps Bay the next day, and arrived professionally dressed, student T looked smart in a waistcoat and tie, but blew this when he chewed gum at work.  We had a meeting with them, read through an overview of what the students were to learn in respect of Housekeeping, and the practical conditions of work were discussed.  Student T was requested to be moved to Hermanus, as there would not be enough work for two students in Camps Bay.  I called Ms Murtuza-Peerun, to express my dissatisfaction with the unprofessional start of the relationship with her Institute, and she said that she had been ill, and blamed her staff for not having informed us about the students’ arrival.  

Student R impressed immediately, and although she was only 17 years old, she initially appeared mature.  Student T chewed a new piece of gum, and had to be reprimanded for doing so again.  I stayed in e-mail contact with Ms Murtuza-Peerun, and documented all the problems that we experienced with the students.  Student T agreed to go to Hermanus, but delayed his departure by one day, as his parents did not have money to give him for his meals, so we took care of this for him.  On arrival in Hermanus, he expressed his dissatisfaction to his mother that he had been accommodated in a staff room, and that he was not accommodated in the private home of our manager, which had not been promised to him.  Student T became hard work and took valuable time of my managers in Camps Bay and in Hermanus, as he was unable to make a bed, not even understanding the concept of a fitted sheet.  He did not know how to wash dishes!  Both students were first years, having had about 10 weeks of academic training at the Institute, which had included a few days of practical training in bed-making under severe time constraints at the Institute’s “private 5 star guesthouse in Sunset Beach”, we were told by the students, but there was no evidence of this training having had any beneficial effect on the students, on Student T in particular.  

Four days after the start of the students we were called by a staff member of the Institute, saying that they were placing the students elsewhere, as the parents had complained to the Institute about the work that had to be done by the students.  We were not consulted, nor asked for input before the decision was made by the Institute.  Student R begged us to keep her on, but the Institute decided otherwise.  Being a guest house and not a hotel, our interns are expected to be proficient in all aspects of guest house operation.  I called Ms Murtuza-Peerun, and she sounded surprised about the call that we had received.  She was in Durban, and said that she had not been consulted by her colleagues about the decision.  She also told me that she would fire her Housekeeping lecturer, who already was on a final warning, for the poor bedmaking training of the students. Our managers spent valuable time in sorting out the students’ problems. Student T was called on numerous occasions while he was helping our Hermanus manager to prepare breakfast, and he had to be asked to switch off his cellphone. The Institute appeared to have no understanding of the time pressure on accommodation establishments between 8h00 – 11h00!  The five days that the students had spent at Whale Cottage were a complete waste of our time, and disrupted our operation.  It was our evaluation that the students were immature, that student T had no social skills and was a complete introvert, one barely being able to understand him when he spoke (yet he had good matric results, we were told!), and that he would never make it in the hospitality industry.  Both students had been moddle-coddled by their parents, and had never helped at home in making beds and working in the kitchen.  The Institute had not taught them about dealing with the public, or about working for a business.  Ms Murtuza-Peerun did indicate that both students’ mothers were the interfering and protective kind, Student R’s mother having called the Institute at the beginning of the academic year, for example, to enquire about the most suitable colour and type of paper she should buy to cover her daughter’s books!

Our experience with the Tourism and Business Institute of Southern Africa has made us decide to not take on any interns again, despite wanting to give back to the industry.  In general, we have found many students to not be serious about their studies and practical training (our best student ever completed her hospitality qualification, to move into teaching, as she could not accept the working hours of the hospitality industry!).  We blame the tourism training institutes for not screening students on the basis of their suitability for the demands of the hospitality and tourism industry, accepting any student whose parents are willing to pay the often exorbitant study fees.

I wrote to Ms Murtuza-Peerun to express my disappointment with her poor organisation of the student placements, and the unprofessional removal of the students by her Institute, and stated that I would warn our colleagues in the industry.  In checking out the Institute’s website, unfortunately only after the placements, I noted with interest that almost all the members of the Board of Governors of the Institute have a law qualification, and only one in tourism/hospitality.  The Institute has three directors, and its CEO is Rahman Murtuza, the father of the Operations Director!  Mr Murtuza’s previous background is stated as having been with Sun International.  It did not surprise me that Ms Murtuza-Peerun threatened “whatever action necessary” if I wrote about our experience with her Institute.   What was surprising was to learn that only seventeen first years had enrolled for the hotel management course, meaning that less than half would finish at the end of the course, hardly an important supply of future trained staff for an hospitality industry desperately requiring trained manpower!   It was also shocking to read on the Institute’s website that the students can in future be placed in jobs in Australia, Mauritius and Dubai – the Department of Tourism, Western Cape Department of Education, FEDHASA, Theta (now renamed CATHSSETA, the T and H standing for Tourism and Hospitality), and UCT’s Graduate School of Business all endorse the Institute, and would be aghast if they knew that their training efforts and association would be wasted on students ultimately leaving the country, when our own industry needs them so desperately!

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

South Africa has become ‘high price, low value’ tourist destination!

The annual Tourism Destination Conference, organised by Cape Town Routes Unlimited on behalf of the Western Cape Department of Tourism, on “Elevating our Destination’s Global Profile”, was held in the Waterfront yesterday, and had a sobering message for tourism players – South Africa, and the Cape with it, has become too expensive!   Tourism players were encouraged to relook their rates, and contain their costs, to see how they can offer better value.  Ironically the theme of the Conference focused on global marketing, but more than one speaker encouraged the industry to invest in domestic marketing, rather than international marketing, even at provincial level. 

The Conference was intended to provide “a platform for the tourism industry to engage on relevant topics that could enhance our destination’s competitve advantage to contribute towords industry growth”, Western Cape Minister of Tourism Alan  Winde said ahead of the Conference.  Cape Town Routes Unlimited CEO Calvyn Gilfellan added that “Platforms such as the Cape Town and Western Cape Destination Conference are critical to ensuring that everyone in the industry is working towards a common goal: the enhancement of the Western Cape tourism industry”.

Western Cape Minister  Winde said pertinently that Cape Town is not cheap, and despite the oversupply of accommodation, the resultant effect of the law of demand and supply in leading to lower rates is not evident in the Cape.  He said that a comparative study of hotel prices locally and internationally will be conducted by FEDHASA, the hotel association.  Winde said that the focus of his department’s marketing is to increase the market share of the Western Cape, which has been overshadowed by KwaZulu-Natal.  Africa as a source continent is vital for Cape Town, but there are no direct flights between Cape Town and major African cities, all African tourists having to fly via Johannesburg.  Asked how a region like the Garden Route, which is suffering extremely low tourism numbers, can improve its performance, the Minister encouraged players in regions to work together, to attract tourists, Cape Town residents in particular.  He mentioned the example of Knysna and Franschhoek, who are ‘tourism twined’ now, and are going on marketing trips to Gauteng and to the USA, to benefit both towns.  The recently created Cape Country Meander passes on its visitors to the next towns, and includes Elgin/Grabouw, Bot River, Caledon, Villiersdorp, and Greyton.  The recently signposted Cape Whale Coast route shows how tourism players can work together to share more broadly their tourism success.   Minister Winde said that many players in tourism are insular, and think they are ‘the centre of the universe’.  To meet President Zuma’s goal of 5 million jobs to be created by 2015, the tourism sector would have to grow four to five times.  But he said the responsibility cannot be placed on corporates alone to achieve this goal, and that small and medium sized businesses must show growth, to achieve growth in employment.

National Minister of Tourism, Marthinus van Schalkwyk, encouraged the tourism players to evaluate what Cape Town can do more to allow it to compete with the best in the world.  South Africa had its best ever tourism performance last year, with 8 million foreign arrivals, and a 15 % growth.   Now the country needs to capitalise on the top of mind awareness that was created for it through the World Cup, and meet the goal of 15 million arrivals by 2020, and to increase tourism’s contribution to the economy from R190 billion in 2009, to R499 billion in 2020.  Awareness needs to translate into sales, he said.   Tourism is now one of the six cornerstones of economic growth and job creation, and the success of the tourism industry must lead to the greater economic benefit for the South African population.  Minister van Schalkwyk urged the provincial tourism marketing bodies to focus more on domestic marketing, given the restricted marketing funds.   The Minister indicated that the traditional markets of the USA, the United Kingdom and Europe are the largest source countries of tourism, but are still strongly influenced by the recession.  He highlighted the importance of Africa as a tourism market, showing a growth of 4 – 7 %.  The tremendous potential shown by the Chinese market has been recognised, and direct flights between Beijing and Johannesburg will be introduced by SAA later this year.  SA Tourism will allocate a share of its marketing budget to attract Chinese tourists.  The Minister also said that whilst 50 airlines service South Africa currently, more are needed to fly to the country, so that supply and demand can drive down the cost of flying to this destination.   Airport tax increases were identified as a deterrent to tourism growth.

The biggest challenge that Minister van Schalkwyk threw to the industry was ‘green tourism’.  By going beyond talking about sustainability and biodiversity, and taking the lead in creating low carbon cities, a competitive advantage can be created for South Africa.   “…as the world changes around us, it is imperative that we as a travel and tourism industry in South Africa stay one step ahead.  This will mean challenging ourselves in terms of how we understand the environment, our responsibilities, our markets and our consumers.  It means innovative and strategic thinking in terms of how we plan for the future, as well as the flexibility to adapt to rapidly evolving circumstances” he concluded.

Peter Bacon is an industry player, and was a previous CEO of Sun International, and currently is the Chairman of Cape Town Routes Unlimited and of the Tourism Grading Council of South Africa.   He said that South Africa is doing better than most long-haul destinations in respect of tourist arrivals.   It was good to hear him say that Cape Town is the ‘jewel in the crown of S A Tourism’.   Cape Town does not suffer a decline in demand, explaining the decline in accommodation occupancy, he said, it is suffering from an oversupply of accommodation created by the opening of six hotels in the last two years.   Coupled to this is that corporate demand for accommodation is down severely, as businesses come to grips with their policies on company travelling.  It was Bacon who said that South Africa’s image has changed from being a  ‘low cost, high value’ destination to one that is ‘high cost, low value’.  Overall average tourism spend is down compared to the past, and the average tourist stay is two days shorter.   He urged the industry to package Cape Town ‘beyond the beach’, and to address the poor value image.  He did understand that rising costs, especially those for electricity, make it difficult to cut rates, but South Africa must be competitively priced, and our destination is not!   Bacon also urged that domestic marketing take the foreground.  Bookings are increasingly on-line, and he urged the accommodation industry to be where the bookings are, on Hotel.com, Expedia.com etc.  Cape Town, and South Africa with it, is a world class destination, and its tourism marketing must be aligned.  He also requested event organisers to not program events in the Cape on the same days – e.g. the Cape Town International Jazz Festival, and the Cape Epic taking place this past weekend.  He said: “We need to package our destination and the diversity of its attractions and experience more effectively.  We need to address the value proposition by differentiating South Africa from other long-haul destinations”.

The presentation by Dr Nikolaus Eberl, a branding consultant to the World Cups in Germany and South Africa, was one that attracted me to attend the Conference, but it was disappointing that he went back to the past, focusing largely on the success of the World Cup, and then showed video clip after video clip of Hawaii’s cliff-diving industry, neither addressing the topic of the Conference.  He did remind the audience that South Africa’s World Cup FIFA score of 92 %, 4 percentage points higher than Germany, was an exceptional performance record, and that South Africa could be Plan B to Brazil!   What did make the World Cup such a success was the ‘ubuntu’ of the South African nation, radiating its friendliness and care to visitors and locals alike.  An interesting case study presented was that of the Harley Davidson Club, showing how a ‘brand community’ can be created around a product or service that consumers naturally concentrate around, mentioning the example of the now dead polar bear Knut, who received a world following in the Berlin Zoo.   He talked about creating Brand Ambassadors, which is what visitors to Cape Town become, through word of mouth and social media communication, and this can lead to a ‘brand community’, he said.  

Although the most eloquent speaker, the City of Cape Town’s Pieter Cronje’s talk disappointed in not revealing which other mega events are lined up at the Cape Town Stadium or elsewhere in the city, other than Neil Diamond’s concert in April. He did say that the city would bid for the Olympics, but not for 2020, as Cape Town’s public transport system is not yet ready to handle such an event.  He also indicated that Cape Town has seen an increase in the number of event proposals since the World Cup, which will be good news for the tourism industry if they are staged.   He said what all in the room know already – events create money for the economy, and benefit all tourism players.

With tourism contributing 10 %  to the Western Cape economy it has a significant effect on economic growth and job creation.   The Conference had a contradictory outcome, in that its theme was global marketing, yet its message was one of domestic tourism marketing first.

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

FEDHASA Cape is still a farce!

One of the first posts on this blog, in October 2008, related to the unprofessional behaviour and politicking by members of the board of FEDHASA Cape, an association representing the interests of hoteliers predominantly.  At that time this writer had highlighted the political games played by Past Chairman Nils Heckscher and newly elected Chairman Phillip Couvaras, now ex-GM of the Table Bay Hotel, who had only been in the country for four months at the time that he was elected.

As quietly as Couvaras arrived on the hotel scene and was elected as Chairman of FEDHASA Cape, as quickly did he disappear and leave Cape Town at the end of March.  It is stated that differences of opinion between himself and his bosses at Sun International in terms of room rates to be charged, combined with a reducing value of his package in foreign currency, given personal international financial commitments, led him to accept a new position in Hong Kong.

Earlier this week it was time for political games at the FEDHASA Cape AGM again, in the election of the new Board (FEDHASA Cape has the most odd system of calling for an election of each Board member every year).  Board members are nominated in categories, even for the position of Chairman.   Rey Franco, the Chairman of the Restaurant category, was nominated for the same position again, as well as for the position of Chairman, having been Acting Chairman from the time that Couvaras left the country.   Pitted against him was Dirk Elzinga, the current Managing Director of the Cape Town International Convention Centre, a member in the ‘Allied’ category.   Elzinga is however leaving the employ of the RAI Group, the Dutch convention center management company, next month, so he will not represent a FEDHASA Cape member company from then onwards, it is said.   It is alleged that Past Chairman Heckscher had lobbied those present in voting for Elzinga, and he was duly elected as the new Chairman, the first non-hotel Chairman ever of FEDHASA Cape!   When this writer stood for the same position two years ago, Couvaras was brought in, with similar lobbying by Heckscher, to prevent a Guest House owner (and female!) from being elected in this position!  

Franco retained his position as Chairman of the Restaurant category in the election, whilst another upset saw Susanne Faussner, who had been pitted against this writer in the “Small Accommodation” category two years ago, even though she owns a hotel and a restaurant, got some of her own political medicine back when the Acting Chairman Franco had to make the casting vote in the election result in this category, and voted for Carole Armstrong-Hooper, owner of Highlands Country House, and a better qualified representative of the Smaller Accommodation category.  Other Board members elected without controversy were Roy Davies from the Vineyard Hotel, heading the Hotel category, and Michele de Wit in the Allied category.   Those watching the politics within FEDHASA Cape will be delighted that Heckscher’s two-year term as past-Chairman on the Board is finally over.  His political games have been described as “poison” by some of his fellow Board members, and this can be endorsed by this writer. 

What will be interesting is what happens to Franco, who took over Couvaras’ slot on the Board of Cape Town Routes Unlimited, given that Elzinga now has been elected as the Chairman. 

From the time that MATCH launched its accommodation bookings for the World Cup four years ago, FEDHASA nationally but also the Cape branch supported and pushed contracting with MATCH as “the right thing to do”.  Nationally FEDHASA even took on a MATCH director onto its Board!    Hotels had loyally signed up 80 % of their room stock with MATCH.  Whilst a Director on the Board of FEDHASA Cape, this writer protested about the stringent legal terms and conditions, as well as the pricing directive, that the small accommodation establishments were subjected to in the MATCH contract, given the German experience of large-scale MATCH cancellations without refunds close to the start of the 2006 World Cup. The other Board directors condoned the MATCH actions!    MATCH has become a “swearword” countrywide, and in the hospitality industry specifically.  Heckscher was a particularly strong MATCH advocate, probably because of the benefit it would have for the Winchester Hotel he manages.  Ironically, his hotel received most of its room nights back from MATCH when the FIFA accommodation and ticketing agency cancelled the majority of room nights it had originally booked!

Brett Dungan, the national CEO of FEDHASA, who has been heavily criticised in this blog for his role in pushing a private accommodation booking portal (Rooms4U) he set up for the World Cup, is said to be leaving FEDHASA National, possibly as a result of his alleged abuse of his position at FEDHASA to further his personal interests. Elzinga will take over his position as CEO of FEDHASA National, but based in Cape Town, it is said – more politics, some would say, and supported by a headline in a report by Cape Business News :“CTICC Managing Director Finds a new Job”!  Being Chairman of FEDHASA is an honorary position that is not rewarded with compensation.

To read the original article “FEDHASA is a farce”, click here.

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