Tag Archives: WhaleTales newsletter

Is Business blogging going bust?

A study conducted by the University of Massachusetts Dartmouth has found that company blogging is at its lowest level, with only 37 % of American companies maintaining their blogs last year, down from 50 % on 2010, reports USAToday.com.  This finding coincides with our finding of Blogging Burnout, seeing the decline in local food blogging frequency, which we wrote about last year.

The USA study says that due to the time required to blog, having to find new content, as well as the liability and legal risks involved in its content and comments received, Social Media Marketing via Twitter, Facebook and Tumblr are gaining ground.  Only 23% of the Fortune 500 companies still have an active blog.  The benefit of a blog is that the company owns the content. Twitter has a downside though, says the article, in having ‘a lot of noise’. The Bank of America closed its blog, wanting to ‘be where our customers are‘, a spokesperson said.

One reason for the failure of corporate blogging is that it is too hard-sell and company focused, instead of being informational. “Companies don’t understand that the content of a blog shouldn’t be ‘about me’. Such content tends to be dull”, said a PR company CEO. If handled correctly, blogs are an important means of asserting industry leadership through its content about industry issues, and are inexpensive compared to advertising costs.  Blogging also reflects the corporate personality via its content.

We have seen few corporate blogs in South Africa to date, with only a few players in the hospitality industry writing blogs for their restaurants and accommodation establishments.  We believe that a Social Media strategy should contain a mix of Blogging, Twitter, and Facebook, and it should not be a case of choosing one or the other.  They are not interchangeable, and attract very different audiences.  At Whale Cottage Portfolio we write a regular WhaleTales newsletter too, to reach our guests and industry colleagues who have not yet embraced Social Media, of which there are great numbers.

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

Tourism Seasonality in the Cape: it’s getting worse!

Every year Cape Town Tourism and Cape Town Routes Unlimited, both bodies tasked to market Cape Town, tell the tourism industry that Seasonality is a problem unique to the Western Cape, and that they have planned events for the quieter months and scheduled more advertising, to address the problem which swallows up in the winter months the income generated in the summer months.

To evaluate Seasonality for our Whale Cottages, we went back to our Occupancy information as far back as 2007, and found interesting trends:

*   Occupancy for Whale Cottage Camps Bay was at 72 % on average in 2007, 70 % in 2008, and dropped every year, to 63 % in 2009, 56% in 2010 and 41% this year to date.

*   During the period May – August, the Cape winter season, Whale Cottage Camps Bay Occupancy declined year on year, from 54 % in 2007, to 45% in 2009 and 2010, to 28% this year, an almost 50 % decline in Occupancy between 2007 and 2011!  Despite an average Occupancy of 70 % over the World Cup, from 11 June – 11 July last year, the World Cup had no effect on 2010 Winter Occupancy, as the good June and July performance was negated by a sharp decline in Occupancy before (19 % in May, being the lowest Occupancy ever in the five year period) and after (36% in August last year, vastly down compared to previous years) the 2010 Soccer World Cup.

*   Every individual month has seen a decline in Occupancy for Whale Cottage Camps Bay over the past five years, February 2011 showing the least decline in Occupancy (88% in 2011, our best month by far this year, compared to 97% in 2007), and September 2011 showing the most drastic Occupancy decline (28% in 2011, compared to 60 % in 2007).

*  These trends apply to Whale Cottage Hermanus and Whale Cottage Franschhoek too, both towns having seen Occupancy in 2007 (on average around 50%) halve this year for the period January – September.

*   Hermanus recovers from Seasonality more quickly in winter, due to the arrival of the Southern Right whales from May.  However, in the last two winters the average Occupancy was around 10% (despite the World Cup, which made no impact on business to this town), compared to 40 %  on average in 2007).

*   Franschhoek shows a similar Seasonality decline, but is at a far lower level in winter, dropping by half from 16 % in 2007, to 7%  this winter.  The World Cup made no impact on business.  The village has seen a decline in the number and size of weddings, and despite an increased activity in hosting events, which fill up the guest houses for the two days of the event, the remaining 28 days remain close to empty!   The trend is for a vastly reduced Occupancy, from 41 % on average in 2007, to 13% on average this year, for the period January – September.  September has been the month with the most drastic decline in Occupancy in the past five years, but Occupancy declined consistently year on year in each of the months.

*   The Occupancy trends reflect the changed tourism pattern, with more international tourists staying in Cape Town, and not travelling to inland towns to stay over, doing a day trip to Hermanus and Franschhoek at best.  Cape Town Routes Unlimited is responsible for marketing the Western Cape, and it appears to have failed in its work, if our figures are taken as a benchmark.  It shocked me to hear that Cape Town Routes Unlimited has lost both its Marketing Executives David Frandsen and Itumeleng Pooe, and that all marketing is now handled by the CEO Calvyn Gilfellan.  Cape Town Tourism’s Marketing Manager Velma Corcoran has only been in the job for a month, and has not made her mark in any way.  She has no tourism marketing experience specifically, and no marketing experience generally.

Not having a firm statistic as to the contribution of UK tourists to our Whale Cottage business, we checked our country of origin statistics over the past years.  This source market has represented as much as 53 % (November 2007) of our bookings over the past five years, but the average has been at around 33%.  It is this percentage of bookings which we will miss this summer, as bookings from the UK are extremely rare, due to the economic woes of the United Kingdom.  German bookings for Camps Bay have represented as much as 24 % (December 2007), but have seen a steady decline over the past five years, averaging at about 10 – 15 %. Our forward bookings show a strong increase in German bookings for this summer. Not surprising is that the proportion of South African bookings has climbed steadily, as we have lost international business, and this may also be due to our Whale Cottages still charging affordable 2007 rates, and discounting rates by close to half in the winter months.

A Carte Blanche programme on Sunday highlighted the tourism crisis.  Portfolio of Places CEO Liz Westby-Nunn spoke about 52 of her client establishments having closed down in the past year.  She has been in business for about 25 years, and business is so bad that she has consolidated her three Portfolio Guides into one, and has dropped her advertising rate by about 50%, just to hold on to her clients.  Mrs Westby-Nunn has been a feisty business person, who took 20 % advertising rate increases year on year in the past.  Clive Bennett, Managing Director of the One&Only Cape Town, said that “We aren’t seeing growth we should be seeing, and you couple that with the surplus number of beds, sadly there are going to be closures”. Bennett added that the recession had hit South Africa post-World Cup. Shamwari’s Tom Jager said that business for them has seen ‘a big drop’.  SA Tourism’s Chief Marketing Officer Roshene Singh said she would look at the impact of the tourism industry’s poor performance on jobs at the end of this year.  SATSA President Heather Guiterrez was controversial in stating that blaming the recession is a convenient excuse:  “There is 4% tourism growth within tourism worldwide, and we’re not seeing it in South Africa. In fact, we are seeing a huge decline of tourism into South Africa”.  She blames the lack of post-World Cup marketing for the current status.  ‘South Africa went dead. People don’t go to a country that goes dead’, she said.  SA Tourism defended its work, stating that April had seen a 7,5 % increase on the year before.  Ms Guiterrez said that SA Tourism does not have enough marketing money to market South Africa on international TV, and this was confirmed by Ms Singh, stating that their marketing budget is minuscule relative to their main competitors.  Mrs Westby-Nunn was critical of the official arrival statistics, stating that the 8 million figure should be closer to 1 million. The tourism players interviewed said that the impact of the decline in tourism is its effect on job creation, the target of 250000 having been set, and would not be achievable.  Both Bennet and Protea Hotels CEO Arthus Gillis called for more flexibility in the airlines, allowing charter flights, and making SAA the tourism loss leader, to bring as many tourists to the country as possible.  Gillis says his business is predominantly focusing on domestic tourists, being their ‘saviour’.

We received the following response to our latest WhaleTales newsletter from Herbert Henrich, a fellow guest house owner in Franschhoek, and he hits the nail on the head in confirming the poor state of the guest house industry: “Thank you for your most comprehensive ‘Tales’ and the detailed information contained therein. For one, like me, sitting on the hospitality industry outer parameters, your reports provide much insight in what would remain obscure otherwise. Our business suffers. The reasons are probably a) global recession and b) lack of exciting promotion of South Africa as a special tourist destination. The most remote parts of the world are being offered to potential  tourists on TV almost daily. Very little – if anything – from the RSA. But promotion alone will not re-instate what once was a flourishing industry. There will still be the economic millstone around the consumers’ neck. Hence, business will shrink and establishments will close down, bringing about further lack of income and loss of jobs. Our operational cost go up, however, irrespective of the business slowing down. Municipal rates, levies, electricity, taxes – you name it, will be collected whether there is income or not. I would suggest that it is time that the government will consider easing up on us somewhat. Why do we still have to pay inflated rates for business premises which bring no business? Is it not time the government supports those who do not close down in order not to increase the number of job-less ? Those who actually subsidize the government rather than the other way around ? I think the hospitality industry, which has no alternative replacement business option , should make a united appeal to provincial and national government departments to reduce their every increasing fiscal demands and allow some time to regroup and allow the business to come back to some sort of reasonable level”.

We once again call on Cape Town Tourism and Cape Town Routes Unlimited to involve our industry in utilizing our information as a predictor of tourism activity for the season ahead, and to focus on the domestic market, in getting them to Cape Town.  Our tourists are not on Twitter and Facebook, in our experience, and need good old-fashioned advertising and articles in newspapers and magazines to attract them to our beautiful Cape.

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

Cape Town Tourism: Saving you time, saving you money, putting you first!

Thinking about the cyber-buzz about the non-renewal of our 20-year membership of Cape Town Tourism, which expired at the end of August 2011, we have come to an important decision for our Blog, and give credit to Nashua’s famous advertising payoff line from many years ago for its inspiration: “Saving you time, saving you money, putting you first”!

Given that Cape Town Tourism’s lawyers Webber Wentzel will have already run up a hefty bill in trying to silence us on our Blog, in writing two lawyer’s letters directed at ourselves, the letter written by the Chairman Ian Bartes, as well as a short reaction to it on the Cape Town Tourism website, easily already in the region of the cost of sponsoring an event like ‘100 Women 100 Wine’, we want to save Cape Town Tourism money.

We are seeing  a very nasty collection of Cape Town Tourism commenters slash, trash and bash either Cape Town Tourism and its staff, but more importantly, myself and my company too, without concern for laws of defamation, as well as disparagement and the truth, whenever we post a story about Cape Town Tourism. This collection of vitriolic commenters includes Mike, Jeremy Claasen, Jeremy du Plessis, Marco, Kurt, Rashiq, and Paul.

Cape Town tourism’s industry is in a crisis, and the R40 million annual allocation from the City of Cape Town does not go far when at least 50 % is estimated to go to salaries and other running costs, Australian Strategetic consultants, and the sponsorship of ‘frivolous’ events such as the 100 Wine ‘competition’.  This leaves less than R20 million, we estimate, for the marketing of Cape Town.

To remove the censorship role that Cape Town Tourism has taken upon itself on behalf of the tourism industry, to not influence my writing in having ‘Big Sista’ looking over my blogging shoulder, to not waste my time to reply to aggressive and abusive comments from the tiny collection of Cape Town Tourism supporters, and to protect commenters who want to make a genuine contribution from not being sued by Cape Town Tourism (and ourselves too!), we have reached the important decision to impose a ban on all comments for any blogpost we write about Cape Town Tourism from today onwards, and we will close the comment facility on past Cape Town Tourism blogposts too.  Genuine commenters are welcome to send an e-mail with their point of view, which we will feature as a Postscript to the relevant Blogpost, if it does not contain any defamatory or disparaging remarks, to whalecot@iafrica.com.

This means that Cape Town Tourism can save money on legal fees, and its staff can spend its valuable time on Tweeting more, organising lunches with fellow Tweeters, and perhaps throw some marketing into the day as well.  It means that I can get on with what I love most, which is writing blogposts.  Cape Town Tourism’s supporter band will now have to find their ‘Inspiration’ elsewhere in Cape Town, and will not be able to express it on our Blog any more!

We apologise to our regular readers for this self-imposed censorship of comments, but this ‘cyber-attack’ on Freedom of Speech by Cape Town Tourism, reflecting a paranoia that is most surprising for an organisation that has set itself up as being tech-savvy, and which has a Communications Manager who dishes out insults on Social Media platforms against Cape Town Tourism members, and even the funders of her employer (the City of Cape Town), is unprecedented in Social Media terms, to our knowledge. One is surprised that the Communications Manager still holds her position, for the damage she has already caused Cape Town Tourism through her unprofessional behaviour.

However, Cape Town Tourism will never stop us from Blogging, and writing on Facebook, Twitter, and in our WhaleTales newsletter what needs to be said about tourism, the marketing of Cape Town and the Western Cape, and about Cape Town Tourism.  Makes you think, doesn’t it!

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