{"id":14123,"date":"2010-11-16T09:41:51","date_gmt":"2010-11-16T07:41:51","guid":{"rendered":"http:\/\/www.whalecottage.com\/blog\/?p=14123"},"modified":"2010-11-16T12:31:58","modified_gmt":"2010-11-16T10:31:58","slug":"cape-town-routes-unlimited-does-not-spend-enough-on-marketing","status":"publish","type":"post","link":"https:\/\/www.chrisvonulmenstein.com\/blog\/cape-town\/cape-town-routes-unlimited-does-not-spend-enough-on-marketing\/","title":{"rendered":"Cape Town Routes Unlimited does not spend enough on Marketing"},"content":{"rendered":"

\"\"<\/a>A heavyweight delegation from the Western Cape Department of Finance, Economic Development and Tourism,\u00a0members 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.\u00a0 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”.\u00a0 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.<\/p>\n

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.\u00a0 A greater part (52%)\u00a0of 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\u00a0from 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.\u00a0<\/p>\n

The importance of Marketing to the organisation is highlighted by the fact that the CEO, Calvyn Gilfellan, is also the Chief Marketing Officer.\u00a0\u00a0 He has three Marketing Executives reporting to him:<\/p>\n

David Frandsen: Executive Manager – International Marketing: Europe and the Americas and the Convention Bureau\u00a0<\/p>\n

Itumeleng Pooe: Executive Manager – International and Domestic Marketing: Africa, Asia, and the Middle East<\/p>\n

Romeo Adams: Executive Manager – Marketing and Organisational Support\u00a0<\/p>\n

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.\u00a0\u00a0 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.\u00a0\u00a0 Many of the targets they set themselves seemed rather low, so that it looks good on paper when many are exceeded.\u00a0 \u00a0I was shocked to see the declaration of salaries of the Executive Management, and how some of these have increased in the past twelve months.\u00a0\u00a0 Gilfellan’s annual income is listed in the financial statements\u00a0at just under R1 million (up by 6,6 % on the year before).\u00a0 The Marketing Executives earned between\u00a0R692000 – R839000 in the past year (close to R58000 – R70000 per month), salaries which seem way\u00a0above the norm, especially when the industry cannot see much benefit of the work done by Cape Town Routes Unlimited!\u00a0 Even the directors are paid emoluments, some as high as R26000.\"\"<\/a><\/p>\n

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\u00a0opposition to Cape Town Tourism) to the value\u00a0 of R2,4 million; a Google Adword campaign; a campaign with CNN; and an e-mail campaign in the Benelux countries.\u00a0\u00a0 Conventions are lucrative for tourism business in the Western Cape,\u00a0and for Cape Town in particular,\u00a0nine conferences having been secured for the next three years, to be attended by 5650 delegates,\u00a0with R55 million in economic impact.<\/p>\n

\"\"<\/a>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.\u00a0\u00a0\u00a0Cape 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.”\u00a0\u00a0 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.\u00a0\u00a0 Cape Town Tourism is not mentioned by Bacon in this context.\u00a0 Bacon states that the province is working on:<\/p>\n

*\u00a0 a clear vision for the development of the tourism industry<\/p>\n

*\u00a0 a single strategy with clearly defined roles, responsibilities and deliverables.<\/p>\n

*\u00a0\u00a0 business\u00a0plans for Cape Town Routes Unlimited, \u00a0Cape Town Tourism and other regional tourist organisations aligned to the goals and strategy of the province,<\/p>\n

and this\u00a0will lead to a Memorandum of Agreement to be signed between the Province and the City in the next twelve months, he writes.\u00a0 \u00a0\u00a0\u00a0<\/p>\n

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\u00a0and authoritative voice in tourism”, on the basis of\u00a0media comments requested from the organisation.\u00a0\u00a0 Many will question his claim.\u00a0 He states that industry challenges are the following:<\/p>\n

*\u00a0\u00a0 “overcoming the effects of the worse (sic) economic crisis to hit the the industry in 60 years<\/p>\n

*\u00a0\u00a0 The slow pace of transformation and diversification of the industry<\/p>\n

*\u00a0\u00a0 Stunted growth in our traditional core markets of the UK, Germany, Netherlands and France<\/p>\n

*\u00a0\u00a0 Limited marketing resources\u00a0compromising our global competitiveness, and<\/p>\n

*\u00a0\u00a0 Institutional disarray leading to the current role confusion, duplication and possible fruitless expenditure.”<\/p>\n

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;\u00a0 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.<\/p>\n

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\u00a0stakeholders to\u00a0ask 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);\u00a0 to address the imbalance in “employment equity” by gender, occupation\u00a0and population group;\u00a0to improve its market research techniques, a weakness it shares with Cape Town Tourism; to contain\u00a0any 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”;\u00a0 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.\u00a0\"\"<\/a><\/p>\n

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\u00a0to a tourism player with an opinion, is embracing social media with a Twitter account\u00a0(@AlanWinde), and reads and comments on blogs related to tourism.\u00a0 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.<\/p>\n

Chris von Ulmenstein, Whale Cottage Portfolio:\u00a0 www.whalecottage.com<\/a>\u00a0 Twitter:\u00a0@WhaleCottage<\/p>\n","protected":false},"excerpt":{"rendered":"

A heavyweight delegation from the Western Cape Department of Finance, Economic Development and Tourism,\u00a0members 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.\u00a0 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[3,124,22,21],"tags":[8619,2158,1317,8598,3940,3808,2145,2339,602,32366,108,85,6888,2152,32378,257,437,344,32394,260,1207,8596,3353,8611,1580,7856,8618,8617,8614,8603,3387,560,8612,8608,8607,8613,8604,8600,669,5346,347,8599,8605,8609,8616,188,32392,5261,1266,8601,2154,8602,32395,3898,8615,8597,7878,111,2773,821,2062,8610,1587,561,8606,2987,482,258,32373,531,342],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t