Whale Cottage Portfolio Blog

The world’s leading cyclist, Lance Armstrong, is riding his first Argus Cycle Tour today, adding prestige to the event, which is the largest cycling race in the world.   

Armstrong is a wonderful marketer for Cape Town, communicating his experiences in Cape Town, via the social marketing medium Twitter, to his 2,5 million followers.  His arrival was marred by the Immigration department at Cape Town International airport not allowing him to enter the country as he did not have a blank page left in his passport.  Surprisingly, this problem was quickly solved, as all arriving guests with such a problem must return to their departure airport, to fix the problem.   Armstrong’s Tweet about the incident was painfully truthful: “Well, made it in to SA. Not the friendliest welcome I’ve ever received but we’ve all seen immigration officers like that. #posterboymaterial“    Some of his Tweets are:  “Done w/ a nice 3hr ride. I’ve heard many times before that Cape Town is stunning. That was no lie. What a place” (9/3); ”Just finished a nice 4.5 hr ride. Great roads and riding here on the Cape. Gonna miss it! (13/3).  This is powerful brand endorsement for Cape Town, sent out to Armstrong’s many loyal fans.

Braving a gusting southeaster, the 33rd Argus Cycle Tour will be a challenge for the 38000 participants completing the 109 km of the race, which started in the early hours of this morning in the city centre, and ends in Green Point.

Armstrong stopped cycling competitively (he has won seven Tours de France events) when he became a cancer victim, but he has won the battle against the dreaded disease, and spends a lot of time on cancer awareness projects.   He expressed surprised at the large number of participants in the Race, only having experienced about 200 participants in the Tours de France.

The Cycle Tour is expected to contribute R 400 million to the economy of the Western Cape, coming from expenditure on accommodation, restaurants, fuel, and travelling.  It appears that Cape Town accommodation is less booked this weekend than in the past, meaning that fewer participants from centers outside of Cape Town have registered to enter.

The Cycle Race will lead to road closures today, affecting traffic around the Cape Peninsula.   From 11h30 all city centre roads will re-open, and so will roads around the route of the Race as the cyclists come through the Cape Town suburbs during the course of the day. Victoria Road in Camps Bay, Hout Bay and Bantry Bay will be closed for a large part of the day.

The Cycle Tour has been marred by a large number of accidents involving practising cyclists, not only in Cape Town, but also in Hermanus and near Oudtshoorn, resulting in a cry for dedicated cycle lanes to be developed.

Whale Cottage Camps Bay has already been booked for the 2011 Argus Cycle Tour by Cargo Carriers, who will take over the whole guest house.

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

The City of Cape Town has spelt out its public transport plans for the soccer fans attending the World Cup in Cape Town from 11 June to 11 July.

A combination of transport methods, including trains, buses, minibus taxis, and metered taxis will transport guests between the airport, the station, the public viewing areas, and the Cape Town Stadium, reports the Cape Times.

Soccer fans with World Cup tickets will travel for free between the stadium and any one of 25 park-and-ride centres in the city, even stretching out as far as Strand, and also including UCT, Camps Bay High School, and Kronendal Primary in Hout Bay, offering 7000 parking bays in total.   Park-and-ride centers include Century City, GrandWest Casino, Kuilsriver, Oostersee, Fish Hoek, Retreat, Brackenfell and Claremont.

A shuttle bus will run from Hertzog Boulevard at the Civic Centre to the Cape Town Stadium, starting 6 hours before the match starts until 4 hours after each match on match days.  

On match days too, an Atlantic seaboard bus service will run from Hout Bay through Camps Bay and Sea Point, to the Stadium, starting 4 hours before kick-off, until 2h00 the next morning.

Throughout the 31 days of the FIFA World Cup, a shuttle bus will transport soccer fans from Cape Town International airport to Hertzog Boulevard 24 hours of the day, in intervals of 6 - 30 minutes, depending on usage.   The cost is a reasonable R 50 per one-way trip.

A further bus service will operate in the city itself, running 24 hours per day, and leaving every 10 - 30 minutes, connecting Hertzog Boulevard, Table Bay Boulevard, Heerengracht, Coen Steytler Avenue, Long and Loop Streets, Buitensingel Street, Orange Street, Buitenkant Street, Darling Street, Oswald Pirow Avenue and back to Hertzog Boulevard.   This will allow soccer fans, with tickets for the stadia, or just coming to enjoy the fan park outside the City Hall, to obtain easy access to their hotels and to restaurants.  Another shuttle bus route will be to Queens Beach in Sea Point, via the Waterfront, until 2h00 every morning.

Trains will transport the soccer fans to public viewing areas at the Bellville Velodrome, Athlone Civic Centre, OR Tambo Sports Hall in Khayelitscha, and the Swartklip Sport Hall in Mitchell’s Plain.

The city has warned that one will not be able to park close to the stadium, and that disabled soccer fans will have to also make use of public transport, its shuttle stations being wheelchair-friendly.

Further information about the transport connections during the World Cup can be obtained on www.capetown.gov.za, or at tel 0800 656 463.

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

The countdown to the last 100 days to the largest sports event ever to be hosted by South Africa starts today.   FIFA has given South Africa 8/10 for its readiness to host the World Cup, with only 100 days left for it to become 10/10, reports the Cape Argus.

A whirlwind visit by the FIFA and Local Organising Committee top executives and 120 local and international journalists of all ten the World Cup host cities has focused attention on the status of the preparations for the event.

1.  The Cape Town Stadium is completed, and two test events which have taken place in the stadium went off reasonably smoothly.  FIFA Secretary-General Jerome Valcke heaped praise on Cape Town for its stadium yesterday, and he said that the city stadium pitch should be the benchmark for all stadiums.   Valcke also said that “Cape Town will be the perfect place to be during the World Cup.”   He lauded the Cape Town Stadium, and said that it would attract many thousands of soccer fans, even after the completion of the World Cup. 

   The pitch at Mombela Stadium in Nelspruit is currently a sandpit, but will be ready for the June start. 

2.  The roads in most host cities and highways leading to them, have been significantly improved, and should be completed by April.  The roads in Cape Town in particular will be transformed, with the N1 and the N2 both having more lanes, and previous traffic blockages such as Hospital Bend on the N2 will be something of the past soon.   Even in the city centre, the roads and pavements have been radically improved in Green Point, close to the Cape Town Stadium, making it a pleasure to drive past the Stadium to get to the Waterfront, and to walk in the area.

    The roads around the Royal Bafokeng Stadium in Rustenburg and the Mombela Stadium in Nelspruit are still in a poor condition.

3.   Bookings seem to have slowed down to a trickle as far as accommodation is concerned, and this is FIFA’s current largest challenge, in that international media are reporting negatively about the “rip-off” pricing in South Africa and the level of crime.   These two factors appear to be the major deterrents to soccer fans attending the matches.   Accommodation in a leading suburb like Camps Bay in Cape Town, a 10 minute drive from Cape Town Stadium, is about 50 % booked for the World Cup.   MATCH, FIFA’s accommodation agency, has been severely criticised for creating the image of “rip-off pricing”,  by adding 30 % commission to all its package components, including accommodation, tickets, flight tickets, and transport.

4.   FIFA’s is expanding the number of low cost tickets it is making available to South Africa, and denies lowering the price of its category 3 and 4 ticket prices offered to South Africans.   But tickets are not selling as they should, meaning that the estimate of 450000 international soccer fans attending the World Cup will not be achieved, meaning more locals will make up the viewership, but will not be using the hospitality facilities which have been pitched at international soccer fans.   More tickets could be made available at lower prices closer to the start of the World Cup.

5.   Excitement in South Africa about the World Cup remains low, and in fact appears to have reduced in interest since the Final Draw of 4 December.   This follows the news that the international soccer fans will not be attending as expected, and that top international trainers are expressing their resistamce and restentment to FIFA for choosing South Africa and maybe even Africa as the host country for the first time ever.

6.   What was meant to be an African World Cup, stressed to be such by FIFA President Sepp Blatter over and over again, appears to be a South African World Cup.  Due to a reduced demand of accommodation, MATCH is not using accommodation in neighbouring countries or in Mauritius, as previously threatened.  Worst of all is that ticket sales to soccer fans in African countries are extremely low (about 2 %), due to the difficulty in making bookings via the internet in African countries, and the low ownership of credit cards on this continent.

7.   What is missing is a campaign of support, to enthuse South Africans to be positive about the World Cup, and to be friendly and generous to soccer fans.  In Germany an advertising campaign was launched in the last few months prior to the start of the World Cup 2006, with the slogan :”Die Welt zu Gast bei Freunden” (The world at home with friends), to encourage the generally stiff Germans to reach out and welcome soccer fans from around the world.   The campaign was particularly successful in uniting East and West Germans at the time. Plans to teach locals foreign languages such as Spanish and French, and to guide them in regard to cultural differences,  have not been followed through.   Volunteers have been interviewed but not appointed.  Some of them will be appointed for their foreign language skills, and for their knowledge of their city.   But time is running thin, to train them as to how to deal with the calibre of such an event.

8.   What will give the marketing of the World Cup a much-needed boost will be the attendance of the World Cup by VIP’s : those that appear likely to attend include President Obama; Paul Allen, the Microsoft co-founder; top businessperson Lakshmi Mittal; Businessperson and Chelsea owner Roman Abramovich;  Charlize Theron, who assisted with the Final Draw in December; Victoria Beckham, who is said to have rented an apartment in Camps Bay rather than join the England team in Rustenburg; rapper Akon and possibly Lady Gaga;  Franz Beckenbauer, previous German star soccer player and trainer, will spend the first five days of the World Cup on the MS Noordam outside Durban, reports The Times.

Cape Town celebrates the 100-day countdown with a demonstration of the Diski Dance at Cape Town Stadium, organised by Cape Town Tourism.

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

Franschhoek’s finest vintage cars, which are showcased in the Franschhoek Motor Museum on the L’Omarins wine estate, will be put on show today and tomorrow, when the first Franschhoek Motor Museum Concours and Time Trial takes place on the wine estate.

Sixty of the approximately eighty vintage cars, dating between 1900 and 1980, in the Motor Museum’s collection will be taken through their paces on one of three routes:  up to 50 km/hr, 70 km/hr and 90 km/hr, to showcase the pedigrees and speeds of the various vintage cars. 

The Concours will showcase Africa’s finest vintage cars, a panel of judges finely examining the detail of each masterpiece, from the upholstery, the paint, to the mechanical condition of each vintage vehicle.

The Franschhoek Motor Museum was established by Johan Rupert, in honour of his father Anton Rupert, who was an avid vintage car lover.  Anton Rupert built up a museum of vintage cars in Heidelberg in the Cape, and his son Johan moved the car collection to the L’Omarins farm, which belonged to his late brother Antonij, after his father’s passing.   More than 80 vehicles, including motorcycles, bicycles and memorabilia, are showcased in four air-conditioned halls, The Motor Museum is closed on Mondays, so that all vehicles can be polished for the visitors arriving on subsequent days of the week.

The event is so popular that most accommodation in Franschhoek has been sold out for tonight.

For further details, visit Franschhoek Motor Museum www.fmm.co.za.  Tel 021 874 9000. Buy tickets at Computicket only.

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

One could see it coming!   With numerous reports over the past month indicating that ticket sales for the World Cup were not as brisk as they should be, especially from non-South African countries, it has now been announced that prices of category 2 and 3 tickets have been slashed by FIFA, reports the Weekend Argus.

Instead of costing up to R 840 a ticket, category 2 and 3 tickets will now be sold exclusively to South Africans at R 140, on the www.fifa.com website, at FNB branches, or telephonically at 083 123 2010.

Furthermore, the number of category 4 tickets, the cheapest tickets, and offered at a special low rate to South Africans, will be increased, to boost sales, and to ensure that the stadiums are full on match days.   “The plan to discount tickets comes as Fifa admitted that projected inflow of tourists coming to the World Cup would be much less than expected”, writes the newspaper.   FIFA’s General Secretary, Jerome Valcke, told a British newspaper that it was trying its best to get more South Africans to buy tickets.

While the ticket price reductions make the tickets more affordable to South Africa’s soccer fans, those that had bought tickets already are angry that they bought them at the higher prices.  

No arrangements appear to have been made to encourage more ticket sales from other African countries, where soccer fans have complained that technological contraints in booking tickets via the internet, as well as general lack of credit card ownership, are impeding sales in those countries.

WhaleTales speculated that in a “FIFA flop”, ticket prices would drop, and that more South Africans than international soccer fans would watch the matches, a disaster for the hospitality industry, as the accommodation, restaurant, and other related services would not be required by locals, and would not be affordable to many of them, given that pricing had been set at 2010 summer rates + 10 - 20 % for the international market.

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

A novel relationship between Hilton Hotels and the producers of the (Oscar nominated) “Up in the Air” has led to a most successful marketing campaign for the American hotel chain at little cost.

The fast-paced movie stars George Clooney in the lead role, and his love for being on the move around the USA, utilising his credit and loyalty cards to travel efficiently and cost-effectively.   When his boss threatens to ground him, his world collapses, especially as he is on the brink of reaching his one and only goal of 10 million frequent flyer miles.

The movie was shot at various Hilton Hotels, and “signature” Hilton products and amenities were used in the filming, reports the Weekend Argus.   The movie director Jason Reitman was a ‘Hilton HHonors frequent traveller scheme’ member before making the movie, and was familiar with the HIlton brand.   Most of the filming took place at the hotel group’s St Louis branches.  No payment changed hands, but the hotel group made accommodation and filming space available, and launched its own marketing campaign in conjunction with the movie.

Whilst the Hilton branding was visible, it never dominated, nor alienated the viewer of the movie.  In reading the article, the subtle Hilton branding became more evident.   Some of the Hilton products shown in the movie include the HHonors Diamond VIP card, MP3 alarm clock radio, room service menu, phones, uniforms, and name badges.   Services such as the Hilton HHonors check-in service, the shuttle service, the restaurants, and the hotel bathrobes, are shown.

A website www.hilton.com/UpintheAir has been created, to show how Hilton staff have helped frequent travellers and provided service by walking the extra mile.

“‘Up in the Air’ is set within the world of travel and Hilton is the most recognised name in hospitality, so our involvement provides additional credibility and authenticity.  Hilton links to the messages in the film in a seamless and subtle manner” said a Hilton spokesperson.

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

FIFA’s MATCH accommodation agency has cancelled 65 000 bed nights in the Western Cape, and 441 695 bed nights nationally, reports the Cape Times.

The release of rooms without cancellation penalty to MATCH is a further sign that the World Cup may not be as successful in terms of international bookings as may have been hoped internationally.  The article’s opening paragraph states: “FIFA has relinquished 65 022 rooms nights in the Western Cape because of lack of demand….”

Vivienne Bervoets, Senior Accommodation Manager of MATCH,  stated in the article that the reasons for the room cancellations include that the rooms booked by MATCH were not on match days, that the establishments were further than 70 km from a host city, and that the accommodation type (e.g. timeshare) proved to be unpopular with international visitors.   The bulk of the room nights cancelled in the Western Cape appear to be in Cape Town.   The dates already cancelled appear to be bookings MATCH made with establishments for dates before 11 June and after 11 July, signalling that pre- and post-World Cup tours are unlikely to happen.   The article intimates that further accommodation cancellations may be possible, depending on the demand for tickets.

Business Day also reported on the accommodation cancellations, stating that 31 % of the bed nights booked initially, and representing 7 843 rooms, had been cancelled by MATCH.  The timeshare cancellations amounted to close to 31 000 timeshare weeks.  Bervoets is quoted as saying “Match has substantially curtailed its procurement drive to concentrate on sales and operations”.  She stated that MATCH is still looking for “good quality hotel rooms, specifically in Gauteng, and also for contract properties if customers specifically requested this”.  

It is surprising that so much of the room stock has been cancelled, given the outcry about the poor support of MATCH, and that it had to bring in cruise liners and contract properties in neighbouring countries, including Mauritius, to build up sufficient accommodation stock for the World Cup accommodation requirements.  

The Cape Argus also reported on the MATCH cancellations, and quoted Dr Laurine Platsky, the Western Cape province 2010 co-ordinator, as saying that “rooms were released because of a lack of demand and fewer bookings than expected.”   Rooms cancelled in the Western Cape were on the West Coast and in outlying areas, she said.  

The room nights cancellations may imply that MATCH’s Matchville concept, in creating hubs or concentrations of accommodation outside host cities, in supplementing accommodation supply, may have raised the hopes of accommodation establishments which cannot be fulfilled.   In Plettenberg Bay, a Matchville centre, for example, it appears that 50 % of the room nights booked by MATCH have been cancelled already.

MATCH has until 10 April to cancel further room nights without being subject to its cancellation policy, and resultant payment to accommodation establishments for accommodation cancellations.   More cancellations are expected before this date.

Accommodation establishments who have had their MATCH room nights cancelled are unhappy, saying that FIFA “overhyped” its accommodation needs, reports a further article in the Cape Times.

FEDHASA CEO Brett Dungan is quoted in reports about the MATCH cancellations, in which he opportunistically offers cancelled MATCH establishments the hope that his new (personally owned) website “portal” www.rooms4u.travel, which has been set up on behalf of S A Tourism, can fill all the room nights cancelled by MATCH.  This is contradictory sentiment, as Dungan has praised MATCH consistently, and protected their rip-off pricing, pointing a finger at non-MATCH contracted properties and blaming them for “rip-off” pricing!

Even Cape Town Tourism has insensitively “welcomed the release of the rooms and the opportunity now available for establishments to market their rooms during the 20 weeks leading up to the tournament.   Experience has taught us that last-minute bookings for events like the World Cup are not unusual and we are expecting an increase in booking confirmations during the next few months”, according to a quote in the Cape Times.

Non-MATCH contracted guest houses are complaining that bookings are not looking as rosy as they were led to expect, and many are only about 50 % booked, even if they are charging “reasonable” prices for their accommodation.

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

The J&B Met has become one of the largest events to be held in Cape Town, probably second to the Argus Cycle Tour, in attracting 50 000 spectators and in generating income of R20 million for the fashion industry alone, with further income benefits to the Mother City of expenditure on accommodation, restaurants, car rental, and shopping. 

Taking place at Kenilworth Racecourse today, the J&B Met is THE society event of the year in Cape Town, and is all about style, glamour and fashion.   It showcases the best fashion design in the country.   The theme this year is “In Full Colour”, allowing fashionistas to express their creativity on a perfect Cape Town summer’s day.

The J&B Met is branded in 400 shops around the country, even in Durban and Gauteng, to gain marketing mileage for J&B.   Fashions than can be worn to the Met are on display in the shop windows. 

Sixteen horses will gallop to the finish line, competing for the R 2,5 million prize money.   The J&B Most Elegant couple will also be selected.

More information can be obtained from www.jbmet.co.za 

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

The Cape Argus Pick ‘n Pay Cycle Tour generates a significant revenue for Cape Town and its surrounding towns and villages, whilst also raising funds for charity.   The Cycle Race this year is expected to generate R 400 million in accommodation, restaurant, petrol, car rental, shopping, and cycling accessory expenditure over the three day period of 12 - 15 March.

The recession has made itself felt with somewhat fewer entries from other provinces, say the Race organisers, reports the Cape Argus.   International entries are still open, and come in much closer to the time of the race.  

The 109 km race on 14 March will see 35 000 cyclists ride around the Cape Peninsula.  It is the largest individually timed cycle race in the world.  The Race is organised by the Rotary Club of Claremont and the Cycle Tour Trust.   Last year R 2,5 million of the proceeds went to charities, while a further R 2,5 million went to organisations supporting the development of cycling as a sport. 

The Race starts at 6h30 at Hertzog Boulevard, goes via Newlands, Wynberg, Lakeside, Simon’s Town, Noordhoek, via Chapman’s Peak to Hout Bay, Camps Bay, Sea Point, and finishes in Green Point outside the new Cape Town Stadium.   The cyclists drink 50 000 litres of Powerade, 160 000 litres of Coca Cola, 100 000 liters of water and 50 000 kg of ice during the race.

A week before the Cycle Tour, the Cape Argus Pick ‘n Pay Mountain Bike Challenge will be held on 6 and 7 March at Boschendal.

Post-script 6 February

Lance Armstrong has announced via Twitter that he will be riding in the Argus Cycle Tour.  The organisers have welcomed his participation: “He is cycling’s superstar and has done more for the global growth of the sport than any rider in history”. 

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

If the media release had not been issued by BUANews, the government’s information agency, one would not have believed what one was reading when picking up the release about S A Tourism’s new accommodation portal via Google Alert on 9 December.

The release makes the following startling announcements, none of which have been shared with the accommodation industry directly:

1.  “Establishments to be used during the 2010 FIFA World Cup will need to register the details of their accommodation booking and listings at www.rooms4u.travel” - the “portal” is set to be “… launched in February”.   It is meant to offer”…smaller players the opportunity to market themselves as there was no registration fee to join -  a fee was only payable when bookings were successful” - this means that booking commission will be charged. (The website contains extremely little information, with only 2 pages, one to seek accommodation, and the other to register accommodation.  The logos of TOMSA (Tourism Marketing Levy of South Africa), SATSA, TBCSA (Tourism Business Council of South Africa) and FEDHASA are the only signs of attempting to bring credibility to the website.

2.   “…all establishments would be pre-registered on the booking portal and the Federated Hospitality Industry of South Africa (FEDHASA) would be undertaking a process to verify information on each provider during the course of this month and January”

3.   A contact centre will be established, with a website (www.southafrica.net) and a call center (+27 87 803 INFO), accessible 24 hours a day, in English, French, German, Italian, Spanish, Dutch and Portugese.  The website will also contain information about tourist attractions, transport, restaurants, activities and routes, as well as what to do in the case of an emergency.

We ask the Minister of Tourism, Marthinus van Schalkwyk:

*   why have accommodation establishments not been notified by the Department/South African Tourism about the requirement to register?

*   why would such a website only be launched in February, 4 months prior to the World Cup, when all the booking action is happening right now, directly after the Final Draw?

*   why do accommodation establishments have to declare any bookings to a central website?   Is there a law to dictate this?

*   who is behind the www.rooms4u.travel website?  Do accommodation establishments pay commission for bookings received?  How much?   Why is there so little information on the website - there are no credentials presented, no “About Us”!

*   what qualifies FEDHASA to verify the information about accommodation establishments - it is a hotel association, that is not in touch with the small accommodation sector and its needs.   It is an industry association with barely any full-time staff - only having secretarial staff in the regional offices.  FEDHASA closes its regional offices for almost a month from mid-December - to mid-January.  How will they cope in doing this “verification” over this period, at a time when the accommodation industry is at its busiest?  What is that they will verify?

*    Why does the call centre not offer assistance in more languages - to assist visitors from the two Koreas, Japan, the other African countries, and in South Africa’s vernacular languages?

Even more bizarre was the news release from Cape Town Tourism, proudly announcing that it will register private accommodation of Capetonians in a separate “temporary accommodation tier”, for which they will pay a membership fee.  In return, they will have their property assessed by Cape Town Tourism, which will lead to membership accreditation, representation on its website www.capetown.travel/2010, and promotion of the properties via Cape Town Tourism’s call centres and Visitor Information Centres.   Furthermore, and probably at an additional fee, the release says that “Cape Town Tourism will also offer assistance in the areas of brochure compilation, marketing, and visitor requirements to ensure that temporary accommodation service providers offer a remarkable experience”

We ask Cape Town Tourism:

*    Why have you not informed us as members of Cape Town Tourism about this?

*    Why are you taking business away from your membership base, who have supported you loyally over the years, when professional accommodation establishments are not yet fully booked for the 2010 World Cup?   Do you need additional income so badly that you have to include private home owners into your membership base?  

*    What survey have you done to establish what our availability is for the World Cup, especially if we have not contracted with MATCH?

*    Why would you want to divert attention from your stated objective, i.e. to market Cape Town and its products, to advise and organise non-professional private home owners in their marketing?

Post Script:  New Tourism Portal 

After the first draft of this story was written, we came across the following post, via Twitter, from Capeinfo.com.  Carl Momberg is not known to be shy about what he says, and his story on what he calls the “Tourism Mafia”, and which he quite rightly refers to as a scandal, follows: 

“Are the Minister of Tourism and his Department (DOT) a bunch of blundering idiots or are they getting into bed with a tourism mafia?  Their latest announcement seems to be ill-conceived and acknowledges that accommodation arrangements for the 2010 World Cup are not as rosy as he claims.

Here are the facts:

It started on Tuesday when we received an email from a website called rooms4u claiming to be the official South African accommodation and bookings portal, accredited by FIFA, and supported by the DOT, SA Tourism, Fedhasa, Tourism Business Council of SA, etc.

Now everybody in the hospitality industry has been subjected to a flood of emails from new websites that promise the world and his wife for 2010, so our first thought was that this is another scam.  And we wrote to the DOT, 2010 Organising Committee, SA Tourism and Fedhasa saying, “What’s going on?”

Website ownership is in the public domain so we looked it up.  rooms4u is owned by Kiara Holdings and its MD is Brett Dungan, who is also the CEO of Fedhasa and the chair of the Tourism Business Council.  Could he have the clout to grab all those bednights that the World Cup needs so badly, and that many others have been working very hard to cater for?

Only the DOT responded to all our emails and it was with a phone call the next day from the Head of Communications.

He confirmed that rooms4u is the new official South African accommodation and bookings portal.  It is accredited by FIFA.  There was no tender or public awareness process because it is a businesswide initiative, he said.

So why is the website owned by a private company?  He didn’t answer that but kept repeating that it’s a businesswide initiative supported by MATCH, SA Tourism, Fedhasa, etc.

Why were provincial and city tourism authorities unaware of all of this, since many have devoted a lot of effort to 2010 and the World Cup?  He sidestepped that one too but said if we have problems with the new portal, we must take it up with our provincial tourism authority.

He promised to email the press release with the announcement several times, as though that would solve all disputes, but it never arrived.

Sorry, this sounds like a scandal in the making.

A week ago, SA Tourism was still discussing mechanisms to link 2010 fans to the existing portals offering online booking, and they were considering a panel of approved websites.

Calvyn Gilfellan, Cape Town Routes Unlimited’s CEO, was surprised when CapeInfo told him about the Minister’s announcement.  “Both SA Tourism and DOT’s position on booking portals was consistently one of not getting involved. They have left it up to the provinces, local tourism organizations and private sector,” he said.  Both Cape Town Routes Unlimited (CTRU) and Cape Town Tourism rely on booking commissions for revenue.

He agreed that the whole thing is irregular because they knew nothing about it, although they are in frequent contact with the DOT and are working on three initiatives with them.

After further enquiries, Gilfellen wrote saying that “SA Tourism has come back to us and suggested that it be an urgent item on the agenda for Friday’s national marketing manager’s forum in Johannesburg.”

The DOT advised CTRU to ignore my questions saying they would respond to them.  We’ve received nothing.  A further email to Sindiswa Nhlumayo, deputy director-general of tourism, also elicited no response.

This has all the makings of another scam and scandal.

rooms4u advertises free listings but there are no terms and conditions. They say an (optional) allocation and booking system will follow in March 2010  and “your world-wide exposure to all travelers and potential customers will commence.”

There is no mention of any booking commissions or other fees that might be introduced when the world-wide exposure commences.  Will this official website offer free bookings and exposure or, if MATCH is part of the rooms4u equation, does that mean that the total fee will again be 30–40%?  It’s only good business practice to state this upfront.

And what will happen to rooms4u after the World Cup?  Will it be closed down or will it continue to compete with other websites, as South Africa’s official accommodation and bookings portal? Will government continue to promote it after 2010?

Surely it is the public’s right to see the contract between the Department of Tourism and Kiara Holdings, or are Fedhasa and the Tourism Business Council a front for Kiara Holdings?

The boards of SA Tourism and the Tourism Business Council comprises some heavyweight businesspeople known for their integrity.  One wonders if they were fully informed of the process or has this caught them by surprise too, like the provincial and city tourism authorities?

This sends out all the wrong messages.  It seems to say that if you sit on boards, you can get a slice of the cake.  Surely the Minister must have been aware that the appointment of a single website owned by a high profile businessman would come under public scrutiny?

The old British Tourism Authority had a very clear way of levelling the playing field but still giving website visitors access to online booking.  They published a list of criteria for accredited websites offering online booking.  They linked to all websites that met their criteria and took no commissions.

But if MATCH is there wanting their pound of flesh, that’s not going to happen.

MATCH got things badly wrong in South Africa.  They had to change their usual rules.  SA doesn’t have the stock of graded accommodation they could call upon elsewhere, and they tried to embrace the small accommodation sector that provides the bulk of all rooms in SA.   But they didn’t change their modus operandi to go with it.  They have been bad communicators and tried to impose big hotel practices on more laissez faire establishments.

With this announcement, ‘Kortbroek’ van Schalkwyk seems to have been caught with his pants right down.”

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