{"id":21901,"date":"2011-06-16T09:18:18","date_gmt":"2011-06-16T07:18:18","guid":{"rendered":"http:\/\/www.whalecottage.com\/blog\/?p=21901"},"modified":"2011-06-18T14:09:52","modified_gmt":"2011-06-18T12:09:52","slug":"open-letter-to-minister-of-tourism-marthinus-van-schalkwyk","status":"publish","type":"post","link":"https:\/\/www.chrisvonulmenstein.com\/blog\/cape-town\/open-letter-to-minister-of-tourism-marthinus-van-schalkwyk\/","title":{"rendered":"Open letter to Minister of Tourism Marthinus van Schalkwyk"},"content":{"rendered":"

\"\"<\/a>Dear Minister<\/p>\n

We have been very happy to have you as our Minister of Tourism, especially when your portfolio became a dedicated one. Since May, however, I\u00a0sense that our tourism authorities in cities, SA Tourism, and your department are seeing the development of a crisis\u00a0in our tourism industry, but that nothing is being done about it.\u00a0\u00a0 I remember a song Jeremy Taylor once sang about the Ministers that ‘minis’ – I feel that you and your department are ‘minis-ing’, not playing open book with us, and that you are deserting us in our time of need.\u00a0\u00a0 Here is why:<\/p>\n

1.\u00a0 You appointed tourism consultancy Grant Thornton, who created fantastic forecasts of how many tourists would come to South Africa for the World Cup.\u00a0 The recession hit the world in 2008, and at no stage did Grant Thornton revise its forecast for the event attendance.\u00a0 On the basis of their projections, Cape Town alone saw the addition of\u00a09 new hotels and 1500 beds, not to talk about\u00a0the numbers of\u00a0apartments that were hastily vacated and renovated, for letting purposes.\u00a0 We all painted and polished our guest houses,\u00a0yet the soccer fans that came to stay were just like all our\u00a0other tourists in the end.\u00a0 Home and flat owners, taken by Seeff’s campaign with Gary Bailey as a spokesperson, sat with empty accommodation when they\u00a0cancelled leases with their existing tenants to make\u00a0a quick buck.<\/p>\n

2.\u00a0 You allowed us to be ripped off by MATCH, a FIFA affiliate hospitality company, who milked us with unheard-of commissions of 30%, with your blessing!\u00a0 And then they cancelled the largest part of the booked stock, on their own favourable cancellation terms, just eight weeks or less prior to 11 June 2010.\u00a0<\/p>\n

3.\u00a0 You sent the Mickey Mouse team from Disney<\/a><\/strong><\/span>\u00a0 to quickly spruce up our service excellence, at a cost to\u00a0taxpayers of R9 million or so,\u00a0a waste of time for all that attended.\u00a0 Our nation is one known for\u00a0Ubuntu, and we were recognised for it as\u00a0one of our success factors – we did not need Disney to teach us that!<\/p>\n

4.\u00a0 But it is the current post-World Cup crisis, which Cape Town Tourism<\/a><\/strong><\/span> confidently tells us a year down the line was predictable, given the 2000 Sydney Olympic Games\u00a0example, that is getting to all of us.\u00a0 The Bureau of\u00a0Economic Research survey results released earlier this week shows us that confidence in the Accommodation sector is at its lowest ever, at 25 % (even estate agents are more confident at 41%, and they are not having a great time!). There has been no growth in confidence since 2007, even though we knew that the World Cup was coming in 2010.<\/p>\n

As the most senior official driving tourism in our country, we would have expected that you would guide and lead us, that you would tell us what drastic steps your department and SA Tourism are taking to help us to get international tourists to our country, and local ones to our cities and provinces.\u00a0 All we hear from you is how successful South Africa has been, and how the World Cup has contributed to this success. For the first time you have acknowledged that things are not going so well, and that “growth in the tourism sector is expected to slow down towards the end of 2011<\/em>“, reports Eye Witness News <\/strong>about your address to FEDHASA Cape earlier this week.\u00a0 You are reported to have said at that same meeting that ‘visitor number (<\/em>sic) still look good following the country’s successful hosting of the soccer showpiece.\u00a0 The minister replied by stating some establishments invested too much in catering for an influx of tourists prior to the tournament”<\/em>!\u00a0 Sir, with respect, it was your consultants that guided us on visitor numbers.\u00a0 Now the proverbial has hit the fan, and there will be none of us left in this industry if you are saying that it will get even worse towards the end of this year!\u00a0<\/p>\n

5.\u00a0 I feel for you, being reliant on those on the ground to feed back to you how bad things really are, and that you are misinformed and misled by some.\u00a0 I cringed when I read that FEDHASA Cape Chairman Dirk Elzinga put the poor booking situation down to the usual Cape winter seasonality, demonstrating that he is not a hotelier, and does not have a clue about the hospitality industry, having headed up the Cape Town International Convention Centre previously.\u00a0\u00a0 I was depressed by Cape Town Tourism’s long-winded acknowledgement that something mustbe done about changing how Cape Town is marketed, as if we have months and years to do so.\u00a0 Cape Town Routes Unlimited has been the most proactive in talking to our industry via the media, in asking us to slash our rates, but clearly they do not know that we charge rates of up to 50 % less in winter, and have done so for the past 15 years or more.\u00a0 Many ofus have not increased our summer rates since 2007, yet costs are rising continuously.<\/p>\n

6.\u00a0\u00a0 Your own consultants Grant Thornton are saying that not enough local and international marketing is being done, especially in the newly opened markets of China, India, Brazil, Mexico and Argentina.\u00a0 I like that you have addressed the ‘silo’ mentality\u00a0of the\u00a0tourism industry, as reported in the Cape Argus<\/strong>, and even see this at our local level.\u00a0 Cape Town Tourism and Cape Town Routes Unlimited are operating independently, and without apparent collaboration.\u00a0 High airfares are one of the reasons for the poor tourism performance – please help us to get SAA to price flights realistically, so that we can get the tourists to our country.\u00a0 Help us to get direct flights to Cape Town, instead of via Johannesburg.\u00a0 It is interesting that you\u00a0identified that the power of tourism is in the hands of a small number of powerful operators.\u00a0Share the tourism pie with all of us.\u00a0\u00a0Please open the doors, and create dialogue between the different sectors that feed and sustain\u00a0the tourism industry.\u00a0I was shocked to hear that the Board of Directors of Cape Town\u00a0Routes Unlimited is now hand-picked by provincial Minister of Tourism Alan Winde- what happened to getting privatesector input, via nominated Board candidates?\u00a0 All we are getting is the same perpetuation of provincial-friendly players and their thinking, and most Board members that were newly elected in April are unknown to us!\u00a0<\/p>\n

We are receiving no guidance from your Department, SA Tourism and our local tourism authorities about how we keep our businesses afloat, and how we prevent a bloodbath of restaurant, hotel and guest house closures in the next few months, which has already started.\u00a0 It does not help to hear that your CEO of SA Tourism, Ms Thandiwe January-McLean, has just resigned, and will leave at the end of August, in a time that we need SA Tourism desperately.\u00a0<\/p>\n

Sir, we need your help.\u00a0 Help us with\u00a0negotiating extensions\u00a0of bond repayments at the banks; help us by not allowing the Reserve Bank to increase interest rates; help us with better tax breaks; help us by getting electricity increases suspended; help us with loan facilities to help us survive and to continue to offer employment to our staff; help us with an urgent campaign to encourage locals to travel – it has been talked about but we are not seeing its impact; help us by pushing PR internationally, to not allow South Africa, and the Cape in particular, to lose visibility\u00a0when New Zealand hosts the Rugby World Cup in September and October; and lastly, be honest with us – do not give us false hope by telling us how fantastic our industry is right now.\u00a0 We are bleeding Sir, and we need your help!<\/p>\n

POSTSCRIPT 16\/6<\/strong>:\u00a0 Business Report <\/strong>today quotes the Minister as saying: “Although tourism had continued to grow since the World Cup ended last July, the industry was slowing down worldwide.”<\/em>\u00a0 He is also quoted as saying that international tourism growth to South Africa will continue but that we must “be more competitive than our opposition”.<\/em>\u00a0\u00a0 He added: “Our prices and products must remain competitive, and unnecessary cost drivers must be identified<\/em>.”\u00a0 He would not be issuing price guidelines, and he confirmed that the traditional source markets remain Europe, the UK and the USA, due to their longer holiday period, but recognises the longer-term value of the Asian market.\u00a0 He urged that visa applications for tourists be made easier, and even\u00a0become electronic.\u00a0\u00a0 The Minister’s Department of Tourism is to set up a conventions bureau, to spread the business ‘beyond the three main cities’, and he indicated that benefits could flow from the expiry this year of the current system of granting air traffic rights to fly into South Africa.\u00a0<\/p>\n

POSTSCRIPT 17\/6<\/strong>: Southern African Tourism Update<\/strong>\u00a0 reports that the Minister is to have also said at the FEDHASA Cape AGM that local tourism authorities should not market internationally, as SA Tourism is doing so already, and that they should focus on local marketing instead.\u00a0 He quoted the example of KZN Tourism, which has a marketing office in Gauteng.\u00a0 Was he addressing Cape Town Tourism and Cape Town Routes Unlimited?\u00a0<\/p>\n

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com<\/a>\u00a0Twitter:@WhaleCottage<\/p>\n","protected":false},"excerpt":{"rendered":"

Dear Minister We have been very happy to have you as our Minister of Tourism, especially when your portfolio became a dedicated one. Since May, however, I\u00a0sense that our tourism authorities in cities, SA Tourism, and your department are seeing the development of a crisis\u00a0in our tourism industry, but that nothing is being done about […]<\/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":[32367,11958,2446,1317,11957,11934,32366,256,108,85,32378,11959,4826,82,11955,320,18,4689,530,708,8545,534,23,4578,1318,546,727,252,785,910,759,2394,2258,2282,11956,32389,888,6932,2773,5632,32373,531],"aioseo_notices":[],"aioseo_head":"\n\t\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\n\t\t