Tag Archives: Susanne Faussner

Cape Town tourism industry confused about Festive Season tourism prospects!

Yesterday the Cape Argus and Cape Town Tourism released their forecasts about the Festive Season and the November – January period.  The Cape Argus prediction of a ‘flood of tourists’ over the Festive Season and Cape Town Tourism’s description of the November – January period seeing ‘positive seasonal growth’ are exaggerated, and not reflective of what the tourism industry is experiencing.  Both information sources do not acknowledge something we have called ‘Summer Seasonality’, which is becoming more pronounced!

Cape Town Tourism astounds with its poorly written media releases, and it is clear that their PR and Communications Manager Skye Grove struggles in expressing herself coherently, sounding out of depth in writing about accommodation occupancy, rates, and RevPAR (Revenue per Available Room), clearly terms which are foreign to her, as is market research in general.   While her headline refers to ‘positive seasonal growth’ being seen by ‘Cape Town’s Tourism Sector’, she contradicts herself in her introductory paragraph, clumsily writing that there are ‘slight growth trends across occupancy and average room rates indicators for the months November 2012 – January 2013‘.  She forecasts Occupancy over the three months at 71% and an average room rate of R 1136, without providing details of how the information was arrived at.  She then compares the results from two different surveys conducted a year apart, and concludes that Occupancy will be higher this summer compared to last, a nonsense deduction.

Even worse is the poorly written paragraph attributed to Cape Town Tourism CEO Mariette du Toit-Helmbold, in which she contradicts herself in predicting that ‘we are not expecting a record season of arrivals and bookings’, yet states in two sentences further that ‘..the City Bowl, The V&A Waterfront and the Atlantic Seaboard will be a hive of activity’, clearly not knowing what is happening in the tourism industry! She does admit that the Festive Season only covers the period of the third week of December (i.e. from 21 December onwards) to ‘early January‘.  Mrs Helmbold admonishes the tourism industry for not coming up with ‘new and interesting experiences‘, something our tourists are ‘hungry for’, she writes!

A statement by poor Nils Flaatten, the CEO of Wesgro, is also incorporated in the media release (aren’t they in competition with each other in marketing Cape Town, one would ask), and justifies the hard work they are doing with Cape Town Tourism to ‘ensure improved dispersal of visitors across the greater Cape Town region and beyond’, his mandate being to market the Western Cape and to minimise the duplication of marketing Cape Town. Flaatten refers to international tourists visiting the V&A Waterfront to shop, and to visit Robben Island and Table Mountain.  Domestic tourists, he says, ‘are experiencing a greater appetite (sic) for festivals and events across the province’, and then refers to the 600 festivals which took place in the province in the past six months!  Ironically there are no festivals and events taking place over the Festive Season!  We have seen no marketing activity or communication from Wesgro and Cape Town Tourism to ‘disperse’ the Cape Town-based tourists into other parts of the province, the tourists doing their own research about where else to stay. Fact is that the Atlantic Seaboard is the most desired location for Festive Season visitors to Cape Town, and it would only be the non-availability of accommodation in this area that would make them stay further away from the city.

The Cape Argus article, written by journalist Daneel Knoetze, was based on two interviews, with Mrs Helmbold and her Board member Susanne Faussner, the headline shouting that a ‘Flood of tourists expected in Mother City’, and misleadingly stating that our industry is ‘expecting one of the most successful festive seasons to date’! The only justification for this misleading claim is a quote attributed to Mrs Faussner about an increase in Occupancy relative to last year, but as the Festive Season has not even begun, no accurate Occupancy figures are available! She added that the poor European winter and the favourable exchange rates are in our industry’s favour, but we have not seen the effect of this. Immediately after the exaggerated positive claim, the journalist lists dreadful crime-related accusations against Cape Town, and states that the positive publicity generated by Cape Town performing well in international tourism lists will outweigh the negative shock crime information relating to Cape Town! Mrs Helmbold places all her bets on an increase in tourism numbers on Table Mountain’s new ‘New7Wonders of Nature’ status, which was confirmed at the beginning of this month.  Ironically Cape Town Tourism Chairman and CEO of the Table Mountain Aerial Cableway Company, Sabine Lehmann, deplored the very windy beginning of December, and the number of days that the Cableway had to be closed due to adverse weather conditions in the Cape Town Tourism release.  Funny was seeing the Christmas Lights on Adderley Street, supplied by the City of Cape Town, which includes an illustration of Table Mountain and the incorrect title ‘New7Wonder of Nature’!  One would have thought that Mrs Lehmann or Cape Town Tourism would have advised the City of Cape Town of its faux pas!

Summer Seasonality is becoming increasingly apparent, and adds to the woes of the Tourism industry, which experienced extreme Winter Seasonality in the past two years, worse than ever before, largely due to the extremely wet winter, which kept Johannesburgers from Cape Town, and Capetonians from the rest of the Western Cape.  Even more frustrating is the increased Summer Seasonality, which gives the industry two very good weeks and two very slow weeks each in November, December, and January, resulting in an average Occupancy of 50% for each of these months, an unsustainable performance.  February is the best booked month, the only one with Occupancy close to 90%.

Cape Town Tourism likes to brag about its performance, and clearly is under pressure from the City of Cape Town to justify the R35 million it receives from the City. It is irresponsible to mislead the Tourism industry with platitudes, contradictory information, and the false presentation and interpretation of statistics!  We would like to request the City of Cape Town to act against this unprofessional communication by Cape Town Tourism, and to appoint a professional Communications company that can assist Cape Town Tourism in issuing more credible and professional media statements, for the benefit of our City’s image and reputation!  The PR company it uses currently appears to only distribute the media releases.

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

FEDHASA is a farce!

FEDHASA is an association purporting to represent the interests of the hospitality industry.  However, the association pays lip service to its Small Accommodation segment, consisting of B&B’s, Guest Houses and Self-Catering establishments, and in essence therefore is nothing more than a hotel association. 

Currently four of the six FEDHASA Cape Board members (Phillip Couvaras from the Table Bay Hotel, Nigel Pace from the Cape Grace Hotel, Nils Heckscher from the Winchester Mansions, and Susanne Faussner from the Greenways Hotel) are from the Hotel segment, despite roughly equal numbers of hotels, small accommodation establishments, restaurants and allied suppliers making up the roughly 550 membership of FEDHASA Cape. Currently there is no Small Accommodation owner to look after the interests of this segment on the Board.  

In June, Faussner allowed herself to be nominated in the Small Accommodation segment, despite her hotel not meeting the description of B&B, Guest House or Self-Catering establishment.   This nomination was condoned by then-Chairman Nils Heckscher, who motivated his decision on the basis of the Greenways Hotel being “small”, clearly not  being aware that the FEDHASA Cape website clearly defines which type of establishments are represented in the Small Accommodation segment.  Hotels are a separate segment within FEDHASA Cape. 

Couvaras was elected as the new Chairman of FEDHASA Cape at the AGM in June, against a Guest House owner and a Restaurant representative.  He had only been in the country for four months when he was elected, an unknown entity in the local hospitality industry.   He naively admitted that he had been encouraged by the FEDHASA Board to stand as Chairman, to prevent the control of FEDHASA Cape from falling into non-Hotel hands!   After his election, he admitted that he did not know anything about Cape Town Routes Unlimited and Cape Town Tourism, and what they stood for. 

The recent press release sent out by FEDHASA Cape about MATCH is testimony to the big hotel perspective that FEDHASA propogates, especially as it has a MATCH representative on the National FEDHASA Board.  FEDHASA has encouraged all its members, including small accommodation establishments, to sign up with MATCH, despite hearing that MATCH is not favourable for Small Accommodation establishments.  Faussner was dead against the MATCH terms a year ago, when she was the Alternate Director of FEDHASA Cape! 

Couvaras angered his Alternate Directors by keeping them from the 1 August Board meeting by means of a dishonest e-mail, announcing the postponement of the Board meeting to a later date.  However the Board meeting did in fact take place.  An e-mail written to Couvaras 9 weeks ago, with subsequent reminders, to question the reason for the dishonesty, and the reasons for excluding the attendance of Alternate Directors at the Board meeting, remains unanswered, as do telephonic messages left with his efficient-sounding secretary.   Support for a reply from Couvaras was sought from National FEDHASA Board Chairman Eddy Khosa, who promised to return calls, but never did, and from Brett Dungan, CEO of FEDHASA’s national office, who refused to discuss the matter and rudely put down the phone.    Khosa remains Chairman of FEDHASA’s national board, despite having been suspended as CEO from the Johannesburg Tourism Company earlier this year. 

None of the Board members of FEDHASA Cape were elected constitutionally at the AGM, but this was written off to a “technical omission” and has been ignored.  Past Chairman Nils Heckscher and Couvaras have a very elastic interpretation of the Constitution, to suit their needs.

FEDHASA Cape recently tried to exaggerate the restaurant robbery situation is Sea Point, probably because one of its Director’s restaurants was affected, for the sake of obtaining publicity for the association.  The Sea Point police expressed its dissatisfaction about the misleading information in FEDHASA’s media statement.

For many years FEDHASA has set itself up as the lobbying body for the hospitality industry, and its media releases claim that it is “.. the lobbying body and watchdog for the South African hospitality industry nationally, and in all tiers of government on tourism, legislation, trading conditions, taxation, education and related industry issues.”   This is a hugely overstated claim, as no such discussions take place in FEDHASA Cape board meetings.  The Association did not manage to achieve any success in getting its input to the Sectoral Determination for the Hospitality Industry to be adopted by the Department of Labour.   Surprisingly, the Department of Labour is not represented on the national Board of FEDHASA, being one of the most important stakeholders for the industry.

Since its inception four years ago, Cape Town Routes Unlimited (CTRU) had one Board position for a FEDHASA Cape representative, taken up by Previous-FEDHASA Cape Chairmen Neil Markovitz and Nils Heckscher.   Heckscher resigned from the CTRU Board earlier this year, but would not tell his FEDHASA Cape Board why he had done so, other than citing “personal reasons”.   His letter of resignation from the CTRU Board was subsequently leaked to the Cape Argus, and cited the Board politics as one of his reasons for the resignation.  It is surprising that Heckscher did not persevere, in using his often-quoted strategy of “quiet diplomacy” to sort things out.  His resignation is detrimental to the hospitality industry, as it no longer has representation on the CTRU Board, now chaired by ex-Sun International CEO Peter Bacon.  FEDHASA Cape and CTRU have had an incestuous relationship, in that CTRU Executive Director Bekithemba Langilabele has been co-opted on to the FEDHASA Cape Board for the past few years. Despite the industry’s criticism of the ineffectiveness of CTRU in marketing Cape Town and the Western Cape, discussions about CTRU and how it could be given input by FEDHASA to meet the industry’s needs better were not encouraged by Heckscher.

Last year Heckscher and Langalibalele set about a rewrite of the Constitution, and their most important change was the introduction of a clause giving the Board the power to eject a fellow Director from the Board, despite directors being nominated and elected by the FEDHASA membership. 

Many FEDHASA members have questioned their membership benefits, and complain about being bombarded with e-mails from the association.   The administration and the marketing of the Association leave much to be desired, but this is condoned by the Board.   The fiduciary duty of the Board directors, prescribed by the Companies’ Act, cannot be exercised as the financials are never discussed in Board meetings.  The organisation’s finances are not very stable, with more members resigning than joining. The 2007/2008 financials were presented to the Board one week prior to the AGM.  Questions were refused, and directors were told to ask them at the AGM!

Couvaras, his Board and Executive Officer should be asked to resign, given their dishonest and discourteous behaviour towards the Alternate Directors.

The unprofessional and dishonest behaviour by Couvaras, and condonation thereof by his fellow directors, has led to the resignation of this writer as Alternate Director from the Board of FEDHASA, and the termination of the membership of all four Whale Cottages as FEDHASA Cape members.