Tag Archives: winter months

‘Cape of Good Business’ is ‘cool’ in winter too!

Three directors of Cape Town Tourism and heads of important Cape Town business tourism businesses have joined forces to make a plea for how “cool” Cape Town is in the winter months, a period typically plagued by seasonality, with far reduced accommodation bookings, which has an impact on all sectors of the tourism industry. 

In an article in the Cape Times last week, Guy Lundy of Accelerate, Ian Bartes of Cape Town International airport, and Rashid Toefy of the Cape Town International Convention Centre wrote that of all South African cities, Cape Town is unique in its seasonality, which “makes it hard for the hospitality industry to be sustainable”.   They add: “With 18  five-star hotels now operating in the city, we must find ways to increase visitor numbers during winter.”  The tourism leaders says it is not a surprise that Cape Town sees so many restaurants opening and then closing, in that they build restaurants to meet capacity support in summer, but cannot see this through in the winter months when business falls away.  They also state that the number of passenger arrivals in April and May is half of that in December and January.

They blame this on the positioning and marketing of Cape Town as mainly a leisure destination, which “always seem to feature the Waterfront, Clifton and the Winelands on their covers”, with not enough promotion of the city as an investment and business destination.   Conference facilities, factories and office blocks do not feature in the city’s marketing collateral.   They call for more direct international flights to Cape Town, and more flights between the city and other African cities, to make Cape Town a world business destination, and a global African city, given that it already has a world class airport, good hotels, excellent infrastructure, ‘some of the finest restaurants’, natural beauty, entertainment, world-class technology, sophisticated business networks, and a favourable time zone for doing business with the UK, Europe, the Middle East and Africa. 

To make Cape Town a global business destination, it needs to be considered for meetings, incentives, conferences and exhibitions (the M.I.C.E. market).    The Convention Centre is ranked 34th in the world in size of business, and it plans to double its capacity to reach its goal of making the top ten list.    Winter is an ideal time for conferences, the writers say, in that most activities take place indoors.   Whilst conference delegates spend less time in a city on average, their average spend is higher than that of a leisure tourist.   The writers also state that the businesses of the Western Cape, e.g. food and wine, oil and gas, boat-building and ship repair, design, film, technology, renewable energy, asset management, business process outsourcing and medical research should expose their businesses to overseas markets via exhibitions and conferences, to attract business travellers to Cape Town and the rest of the Western Cape, including Winelands, West Coast and Overberg towns.

The World Cup demonstrated what a good winter weather city Cape Town can be, with rain on only three of the match days, and snowfalls on the mountains for a short while during the soccer tournament month.  The soccer fans were not put off by the rain and cold, and their ‘gees’ was not dampened in any way.   This leads to a renewed call for the ‘green season’ to be marketed in the winter months.  The cooler Cape weather is attractive to visitors from the Middle East, and the Asian countries, who have to endure hot and humid weather at that time.  The writers also suggest a winter sale, which reduces accommodation, restaurants, and clothing, as is done in Paris, Singapore and New York.   The writers seem unaware that the small accommodation industry has been leading the tourism sector for years, in reducing its rates by as much as half in winter.  This year the restaurants in Cape Town and the Winelands also came to the party, and offered good winter specials, some even extending these into current summer specials.

We support the writers’ call for more events to be hosted to attract visitors, but it is sad to read that the City of Cape Town does not have enough funding to support big events (there is activity by Cape Town Routes Unlimited in marketing a small number of approved events, all hosted in summer months).  

If Cape Town had no seasonality, airlines would fly into the city all year round, and would bring travellers, making tourism business more viable and reducing unemployment.   It is for this reason that the business tourism leaders ask that the tourism industry get on board the Cape of Good Business!  

It is interesting that the three writers are Board members of Cape Town Tourism, which focuses almost exclusively on leisure tourism, while the business tourism business that they are pleading for is in the domain of Cape Town Routes Unlimited, on which Board only ACSA is represented, and on which the three tourism leaders may have been able to make a greater contribution than at Cape Town Tourism.

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

So what impact did the World Cup really make on Cape Town and the Cape?

Cape Town Routes Unlimited has released statistics, comparing the tourism performance between June 2009 and 2010.  In general it would appear that tourism facilities fared better in June this year compared to last June, due to the World Cup, which kicked off on 11 June.

 The following statistics were provided in the Cape Town Routes Unlimited “World Cup Impact” report:

1.  The Table Mountain Aerial Cableway received 63861 visitors in June, an increase of 69 %

2.   Boulders Beach in Simonstown had just less than 20 000 visitors from 1-20 June this year, compared to 21 314 for the whole of June 2009

3.   Kirstenbosch received 7 % more visitors in June, at 25 469, compared to last year

4.   The V&A Waterfront received 1,6 million visitors in June, up 7 % compared to last year.

5.   Robben Island doubled its visitor numbers between June this year and last year.

6.   International arrivals at Cape Town International airport increased by 18 % in June relative to a year ago, (and by 24 % for the period 11 June – 16 July, according to Cape Town Tourism’s World Cup Impact report, released yesterday).

7.   Domestic arrivals at Cape Town International airport increased by 10 %, at 261260 in June 

8.   The Cape Town “Lodging Statistics Summary” (where did they get that name from?) seems very wrong, from own experience and discussions with other industry colleagues, given the exceptionally poor May 2010 accommodation bookings.  We publish the information with a warning (the Cape Town Routes Unlimited report does not identify the source of its statistics):

             Occupancy:                 2010                                              2009

             April                             59%                                                 62%

             May                              55%                                                 46%

             June                              68%                                                 41%

9.  The FIFA Fan Fest at the Grand Parade had its best day on 11 June, the Opening Match between Bafana Bafana and Mexico, with 41000 visitors, and had to be closed at that number due to overcrowding. The second busiest day was the Bafana Bafana match against France on 16 June, with 39000 visitors.  The quietest day was 21 June, with just less than 8000 soccer fans.

10.   In June the busiest Fan Walk day was when Holland played Cameroon, with an estimated 72000 walkers between the City centre and the Cape Town Stadium.  The Portugal/Korea DPR match attracted only 25 000 – 30 000 walkers, a day with heavy rain.

11.   Public Viewing set up in provincial towns was highest on 11 June in all such towns, and highest overall in Worcester (8000), followed by George (more than 7000).  Attendance dropped strongly on other days, and night matches were not well supported where public transport had not been organised.

12.   The V&A Waterfront Gateway (one assumes the one at the Clocktower) attracted 23911 visitors in June, up by 8 %, but the value of bookings increased by 55%.   Only 94 bookings were made last month, a disappointing number, given the traffic in the V&A Waterfront in this period.

13.   The Cape Town Tourism International airport office served 6841 visitors, the City branch 1206, the Table Mountain Cableway branch 849, and Kirstenbosch 803 visitors.  No comparable 2009 figures are provided, which is a surprise and disappointment.  (Cape Town Tourism’s World Cup Impact report states that 71 % more international visitors and 15 % more domestic tourists visited a Cape Town Tourism branch during the World Cup period – even though I have never seen information about the origin of the tourist asked) 

14.   Franschhoek claims to have received more than 4000 visitors (no 2009 comparative figures) in its Information office in June, which did not translate into much business as far as accommodation and restaurant bookings are concerned.  Paarl claims to have served 1 961 visitors (no 2009 comparative figures), and Knysna Tourism received 1433 visitors, double the number of last June.   Ceres received 1173 visitors, treble the 2009 figure, but this may have been due to the heavy snowfalls last month.

It is a pity that 2009 figures are not available across the board for the statistics provided, and that the 11 days of the World Cup are not reflected either, as Cape Town and the towns close to it were fuller in July, given the round of 16, quarter-final and semi-final matches played in Cape Town in this period.  Yet it is commendable that statistics were made available at all, no matter how questionable some of them appear to be!

Cape Town Tourism’s World Cup Impact report, presented to the media yesterday, claims that 200000 of the 350000 international visitors that came to South Africa for the World Cup came to Cape Town (even though its earlier pre-World Cup surveys showed that the majority of such soccer fans planned to visit Cape Town!).   One wonders how this estimate was made.  Cape Town Tourism CEO Mariette du Toit-Helmbold said that the World Cup was never about the short term, but about long-term benefits for Cape Town, turning soccer fans into fans of Cape Town.  City of Cape Town Mayco Member of Economic Development and Tourism Felicity Purchase noted that events hosted in winter months are needed to counter the seasonality of Cape Town’s tourism industry.   The 750 journalists that were shown around Cape Town loved the city, describing it as “photogenic”, and falling in love with it.   The Report also addresses accommodation occupancy during the World Cup, but its “research” was so poorly conducted that their misleading results will not be reported here (read our criticism of their intital results, mid-way through the World Cup).

What all the reports lose sight off is the extremely poor May that the tourism and hospitality industry experienced, a vacuum having been created due to the World Cup, which wiped out any gains made between 11 June – 11 July!

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