Whale Cottage Portfolio Blog

For the past six weeks all attempts at obtaining minutes of two Special General meetings called to change the Constitution of the Cape Whale Coast Destination Marketing Organisation (DMO) have failed, with an e-mail from its Vice-Chairman, Daniel Acker, refusing access to the minutes both in my capacity as a member of the Hermanus Tourism Bureau and as a writer of this blog, without approval at the next Board meeting!  We question what the Cape Whale Coast DMO is trying to hide by not making the minutes of the two meetings available.  Maybe the Cape Whale Coast payoff line ‘wonders never cease’ is apt, given that the DMO is working with municipal funding generated from Overstrand ratepayers, and therefore transparency should rule!

More than two years ago the Cape Whale Coast DMO was established by the Overstrand Municipality, which is responsible for the municipal services of the area stretching from Rooi Els in the west to Gansbaai in the east.  The DMO is based in Hermanus, and half of the Board members are from Hermanus, under the Chairmanship of Misty Waves Hotel Manager Clinton Lerm.

When the Cape Whale Coast DMO was established, its constitution automatically made all business owners along the Overstrand members of the DMO, if they were paying rates and taxes.  No membership fee was payable.  The DMO’s main task, as per its name, was to market the Overstrand towns as a joint tourism destination and to manage the tourism bureaus in each of these towns .  The same constitution contained a directive that a CEO would be appointed, to manage the DMO.  This appointment still has not happened.   This means that a Board of 14 Directors manages a Section 21 company with only one staff member, and therefore the directors of the Board have taken over management positions for the DMO.  For example, Lerm’s mother Maxie handles Marketing and Public Relations for the DMO, and Clinton Lerm and Daniel Acker (of People Management Solutions Group, a labour practitioner in Hermanus, with no tourism business interests) represented the DMO in May at the ITB tourism trade show in Berlin, and another in Russia (an insignificant tourism market for Hermanus!).

Earlier this year the DMO changed its Constitution of 28 November 2007, at a second Special General meeting held on 8 March at the Lerm’s Misty Waves Hotel, with a resolution seconded by Chairman Clinton Lerm’s father and Director Maxie Lerm’s husband Henry (after a first Special General Meeting on 1 March had failed due to not attracting a required quorum of 100 attendees - only 14 members attended).  The change to the constitution was motivated to the DMO members on the basis of the changes made to the ‘Municipal Finances & Companies Act’ (no such Act exists - it is called the Municipal Financial Management Act, and it does not appear to contain any clauses that would have necessitated the constitutional changes made), the minutes of the meeting of 1 March stated!   The major change was that Overstrand ratepayers no longer were automatically members of the DMO, and allowed the DMO to set up membership of its tourism body in competition to the tourism bureaus in the Overstrand area.   The minutes of the 8 March meeting are very brief, and do not state who attended the meeting - bizarrely the Constitution allows a second Special General Meeting to be held a week after the first one if it fails to attract a quorum, and can conduct its business as long as at least one member is present!

What attracted attention to and the first criticism of the DMO was that the DMO has set up a kiosk near the key whale-watching area in Hermanus, from which it was taking accommodation bookings only for its members, and not for all members of the Overstrand tourism bureaus.  These members are now asked to pay a double membership, to belong to both bodies, yet each tourism bureau reports to the DMO, an unheard of model of tourism marketing, if Cape Town Routes Unlimited, the provincial marketing body, is the role model for the DMO.  Even more curiously, the Hermanus Tourism Bureau, which has an unfortunate location at the old railway station building, had to vacate its offices due to construction work close by, and was not given the kiosk, so that it can be easily found by tourists requiring accommodation and other tourism information.

Even more odd is that as a result of two competing tourism bodies in Hermanus, the town now has two whalecriers!   The original whalecrier of Hermanus, who was an appointee of the Hermanus Tourism Bureau, had his appointment terminated due to an offence, just as the DMO was heading for Berlin.  Desperate to have a whalecrier on show, the DMO appointed the whalecrier, and took him to Berlin at short notice.  He has been appointed by the DMO to man its kiosk, and the Hermanus Tourism Bureau has appointed its own whalecrier!

Late last year we questioned these actions of the DMO,coupled with the conflict of interest in Clinton Lerm being both the Chairman of the Hermanus Tourism Bureau and of the DMO.  This resulted in a letter from the DMO’s lawyers, threatening legal action.  Nothing came of this threat, probably as the DMO management realised that a number of dissatisfied Overstrand tourism bureau members feel as I do.

In July the DMO held its AGM, and on the basis of its constitutional amendment, disallowed any Overstrand tourism bureau members from attending the meeting if they did not hold DMO membership, and were also not allowed to be nominated or elected to the Board of the DMO.  This is when I started asking questions, requesting a copy of the DMO Constitution (previously this was freely available on the Overstrand website www.overstrand.gov.za), and the minutes of the meetings approving the constitutional changes.  It took four weeks to receive the e-mailed copy of the Constitution, and two days ago the following officious and somewhat threatening e-mail was received from Daniel Acker (all correspondence had been addressed to Clinton Lerm!):

“This response is done without prejudice of the rights of the author, Cape Whale Coast Destination Marketing Organisation (herein after referred to as ‘CWC DMO’), or the Overstrand Municipality. All rights of these personae therefore remain reserved herein.

Your email herebelow (sic) has been read, and the tone & content thereof has been noted. We place on record herewith that we shall not respond thereto in full, at this time, and reserve the right to do so at a later stage and in the appropriate forum.

Regarding your request, related to the minutes ‘minutes that approved the change of the Whalecoast DMO’ . We assume that you refer  herein to the minutes related to changes to the Constitution that were presented to, and approved by, the Counsellors (sic) of the Overstrand Municipality. These minutes are available to members of the CWC DMO, and our records show that neither you, nor your establishment, are members of the CWC DMO. Your request in this regard shall therefore have to be tabled at the next full board meeting, for consideration.”

What the members of the tourism bureaus in the Overstrand want is to be part of the DMO by virtue of their membership of the tourism bureaus which report to the DMO, and that bookings will be taken at the kiosk for all members of tourism bureaus in the Overstrand at no charge of membership, but on payment of a standard 10 % commission of the booking value (the DMO charges 12% commission in addition to its membership fee).    Neither the old nor the amended constitution of the Cape Whale Coast gives the DMO the duty to run a tourism bureau in opposition to those already operating in the Overstrand.

Furthermore, the Constitution does not prescribe that nominees for the Board must be members of the DMO (for example, a representative of the Overstrand Municipality is specified as having to be a director), nor does it prescribe that only DMO members can vote for the election of its Board of Directors, or on any other matter - it was confirmed that Hermanus Tourism Bureau members were not allowed to be nominated as Directors, nor voted for at the recent DMO AGM, according to an e-mail sent to me by Daniel Acker.   Members furthermore question why the Misty Waves Hotel features so prominently as the venue of the DMO meetings, and how two co-owners of the hotel can serve on the DMO Board, one of them handling the PR and Marketing for the DMO.  Whilst the Constitution defines the role of the Chairman of the DMO to be to lead the Board, to induct the directors, to plan meetings, and to ’support the CEO’, it is questioned why Chairman Clinton Lerm, and not his mother Maxie, went to Berlin and Russia to represent the DMO, and why Daniel Acker had to go as well.  The duplication in tourism offices and in whale criers is also questioned, all being wasteful expenses.

It would appear that pressure on Chairman Clinton Lerm may be leading to some changes, and it is rumoured that he has resigned as Chairman of the Hermanus Tourism Bureau, due to the conflict of interests in heading both bodies, something we pointed out in our blog post of 28 December already. However, he has not yet formally announced his resignation, nor confirmed it when we requested this of him by e-mail.

POSTSCRIPT 2/9:  The Comments section for this blog post makes for interesting reading, in setting out two points of view - two guest house owners’ perspectives, who argue along the lines of this post, and that of a Director of the Cape Whale Coast DMO, who protects the interests of the DMO.

Furthermore, the Hermanus Tourism Bureau has e-mailed its members an article which appears in the Hermanus Times today, written by Clinton Lerm.  It justifies what has happened constitutionally, and announces that members of the Overstrand tourism bureaus will automatically become members of the DMO, once this constitutional change has been approved at a Special General meeting of the DMO.  Taking bookings at the Market Square kiosk for all Overstrand tourism bureau members is also receiving the DMO’s consideration - we applaud the DMO for listening to their “customers”, and wonder why this was not dealt with correctly from the word go!

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

The Board of Cape Town Tourism has diplomatically told the MEC for Finance, Economic Development and Tourism, Alan Winde, that it is not happy to turn back the clock, and support his proposal for a centralised provincial tourism marketing agency, in that this would impact on the running of Cape Town Tourism, and of the marketing of brand ‘Cape Town’.

Last month MEC Winde announced his plan to consolidate Cape Town Tourism and Cape Town Routes Unlimited into one centralised provincial body, and to market one centralised Cape Town/Western Cape brand, which created an outcry, and resulted in a carefully worded statement from Cape Town Tourism (read our blog post).

In a recent meeting between the Chairpersons of Cape Town Tourism and Cape Town Routes Unlimited, and of MEC Alan Winde for the province and Alderman Felicity Purchase for the City of Cape Town, the way forward was discussed between the two parties.  It was agreed that an apolitical body was needed which would not change every time a new politician was elected at provincial or City level.   They also agreed to appoint an independent Change Manager to lead the process of negotiation between the two parties.  Both parties importantly agreed that Structure must follow Strategy.

Given the consultative nature of the process, Cape Town Tourism called a meeting of its members, to inform them of the MEC’s plan, to present to its members its counter-plan, and to hear the industry speak.  It was disappointing to see so few, and so few heavy-weight, members attend.

Mariette du Toit-Helmbold, CEO of Cape Town Tourism, provided background to the process of tourism unification, it not being the first attempt to unite the two tourism bodies.   In 2002 the provincial government and the City decided to unify the marketing of Cape Town, by taking this role away from Cape Town Tourism (Sheryl Ozinsky was the CEO of Cape Town Tourism at the time), through the creation of a Destination Marketing Organisation (DMO), named Cape Town Routes Unlimited.  The role of Cape Town Tourism was to unite seven local tourism bureaus, stretching as far as Somerset West, into one Visitor Information network, with unified Cape Town Tourism branding.  Cape Town Tourism was re-created, with a new Board of Directors and a new Constitution, created as an apolitical industry association, a body for members run by a Board elected by its members, and reasonably independent of the City of Cape Town’s funding, in that it focused on the generation of own-income.

A review organised by the City of Cape Town Mayoral Committee member Simon Grindrod in 2007, and a report full of negatives about Cape Town Routes Unlimited, led the City to withdraw its funding of Cape Town Routes Unlimited, having been a 50 % funder of the body, and gave the body the required one year notice.    In 2008 Cape Town Tourism was appointed to market Cape Town, and it was allocated the monies that would have gone to Cape Town Routes Unlimited, after Cape Town Tourism had asked its members’ support in taking on this role - the industry was unanimous in expressing its support.  This led to a city and a provincial marketing body, each marketing Cape Town, and with overlap in marketing the province as well.

MEC Winde is proposing that tourism marketing for Cape Town and the Western Cape be centralised into Cape Town Routes Unlimited, but that this body change its name.  It would be the primary body marketing Cape Town, and would be largely funded by the City of Cape Town.   This, Cape Town Tourism’s Board believes, is turning back the clock, as Cape Town Routes Unlimited is exactly such a body established six years ago, and has failed dismally.  The MEC wants a single destination marketing organisation, a single marketing strategy, and a single brand (currently it is the mouthful of ‘Cape Town and Western Cape’).   Further, the MEC has proposed that Cape Town Tourism market Cape Town domestically, while the province market it internationally.  Major events should be marketed by the province, and smaller localised events should be marketed by each affected or organising tourism body.  Cape Town Tourism stated that it felt that the MEC’s proposal contained too much emphasis on structure, even though he himself has stated that Strategy should drive Structure, especially given that the MEC has specifically suggested that the Board of the new body be appointed by the Premier and the Mayor, once again politicising tourism marketing.

Cape Town Tourism stated that the implications for Cape Town Tourism of the MEC’s proposal would be as follows:

1.  All marketing policies would come from provincial level

2.   A joint Cape Town/Western Cape brand is not feasible, Cape Town Tourism correctly stating that “Western Cape” is not a brand but a ‘collection of brands’.

3.   Strategy, structures and policies will once again be approved by politicians, given the proposed structure.  The body should be apolitical, and tourism must be protected against political changes.

4.   The province is proposing to only fund the establishment of the new DMO, and is expecting the City of Cape Town to fund all marketing costs, reducing the marketing budget dramatically and adding more administrative costs, reducing the monies available for marketing.

In its carefully worded response to the MEC, the Board of Cape Town Tourism stated that it was important that the marketing of world cities such as Cape Town should be driven by international best practice.  It does not support the establishment of a single DMO, but rather would like to see distinct roles and responsibilities for the two parties.  It was emphasised that Cape Town Tourism does not want to take over the marketing of the province (although many a Cape Town Tourism member would like to see this happen!).

Cape Town Tourism stated that its counter-proposal to the MEC was as follows:

*   create a joint integrated tourism marketing network

*   brands must be managed at local and regional level

*   Cape Town is the key tourism brand in the province, with its own unique identity, and cannot be straight-jacketed into a provincial marketing programme.

*   International best practice shows that successful city marketing is city-driven tourism, based on public/private partnerships.

*   The lifetime value of Cape Town’s ‘customers’ must be harnessed, via Customer Relationship Marketing.

*   Duplication of marketing activity and expenditure must be eliminated.

*   Cape Town Tourism should take over responsibility for the Convention Bureau and Events, two functions sitting with the province, and dominant sources of tourism income.

*   Cape Town Tourism should be the hub of tourism stakeholders, including the citizens of Cape Town.

In concluding the discussions at the Cape Town Tourism member meeting, the members were given an opportunity to state their views.  The tremendous success of Cape Town Tourism in marketing Cape Town and in dealing with the world’s media based in Cape Town during the World Cup demonstrates how successful the body is, and that it should not be re-engineered if it is working so well, the members were told.   Given that both bodies are spending taxpayers’ monies, it is expedient that such money not be wasted by creating a new structure.

POSTSCRIPT 24/8: An e-mail sent to Cape Town Tourism members during the course of today includes the following: “In a new development, the MEC has given his assurance that no decision will be taken on the issue of tourism structures before a tourism strategy for the Province has been agreed, in consultation with key city and regional stakeholders. Cape Town Tourism fully supports this move and will be taking part in the strategic planning process”

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

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

One could see it coming!   The marketing of Cape Town and the Western Cape province has been a problem for the last number of years, in that the province and the city were run by the Democratic Alliance and ANC parties, respectively.  That is, until last year, when the Democratic Alliance won the city and the provincial elections.   The new MEC for Economic Affairs, Finance and Tourism, Alan Winde, vowed from the word go that he would address the strained relationship between Cape Town Tourism and Cape Town Routes Unlimited, as far as each body’s marketing of Cape Town in particular, but also of the Western Cape province, is concerned.  Now the relationship is about to become more, rather than less, strained!

One needs to go back in history to paint a picture of continuous turmoil in the tourism industry.   Initially Cape Town Tourism was marketing Cape Town, and the Western Cape Tourism Board marketed the province, a harmonious relationship existing between the two tourism bodies, one funded by the City of Cape Town, and the other by the province.   As the political parties changed, new Ministers of Tourism at provincial level tried to reinvent the wheel, and the biggest change of all was the establishment of the Destination Marketing Organisation (DMO), taking over the old Western Cape Tourism Board, as well as the marketing role for Cape Town from Cape Town Tourism, about seven years ago.   Cape Town Tourism only retained its role as Tourism Information agency.

Numerous complaints from the tourism industry about the lack of marketing visibility of Cape Town, the “gateway” to the rest of the Western Cape, were aired, and the new DMO, which became known as Cape Town Routes Unlimited, was blamed for not knowing what it was doing.   Political differences between the province and the City of Cape Town, as well as the lack of Cape Town Routes Unlimited’s marketing performance, led the City to withdraw its 50 % contribution to the running of Cape Town Routes Unlimited two years ago, leaving that body vulnerable in terms of its funding, and crippling it in terms of its marketing role.   The City signed an agreement with Cape Town Tourism, whereby it allocated its previous Cape Town Routes Unlimited funds to Cape Town Tourism, with the responsibility for the agency to market Cape Town in addition to its tourism information role.   Due to its funding cuts, Cape Town Routes Unlimited was forced to cut its marketing projects dramatically, and to focus mainly on marketing the province.

However, Cape Town Routes Unlimited did not leave the marketing of Cape Town out of its marketing strategy, and once again the industry complained about the duplication in the marketing of Cape Town by both bodies, something that the new DMO had been created to avoid.   When Winde, and his counterpart in the City of Cape Town, Felicity Purchase, met last year, the two marketing partners agreed that they would encourage co-operation and that they would avoid duplication where possible.  Winde confirmed that there would be no consolidation of the two bodies.   The industry was told that a strategy of co-existence between the two bodies would be presented to it, but no such strategy has been forthcoming in the past year.   Cape Town Tourism was forced to appoint a Cape Town Routes Unlimited director on its Board (this is not reciprocated on the Cape Town Routes Unlimited board), to ensure that the two bodies were aligned.

This week the Minister changed his mind, and made the shock announcement that he is “pushing for the speedy implementation of a new efficient destination marketing model so that the region may benefit from the current window of opportunity created by the Soccer World Cup”, reports Southern African Tourism Update.  Now this sounds like a ludicrous statement as a start - another DMO in the making, when we have one already?   Did we not just host the most amazing World Cup without integration of the two bodies?   What window of opportunity is the Minister referring to?   Why did he not get his act together, and create a united body before the World Cup, when it was needed most?   Accommodation in Cape Town and the Western Cape was not well booked for the World Cup, and the city did not have a single soccer team setting up a base camp in it.

Reading the Southern African Tourism Update article, and having been closely involved with the setting up of the DMO whilst I was Deputy Chairman of Cape Town Tourism, it sounded like deja vu.  The Minister wants to set up a new DMO, with a new “trading name”, responsible for the “marketing of the province, regions and cities within the Western Cape - as well as single tourism brand for the destination.”  This is exactly what Cape Town Routes Unlimited is meant to be, currently having the schizophrenic brand name “Cape Town and Western Cape”, all of which was criticised by the industry when it was launched about 5 years ago!

The new DMO would be solely funded by the Western Cape province, according to the Minister, and all municipalities in the province must contribute to the DMO, including the City of Cape Town, endangering the marketing role which has been allocated to Cape Town Tourism.  Members of Cape Town voted by overwhelming majority to support the acceptance by Cape Town Tourism of the marketing of Cape Town at its AGM two years ago.    Municipalities must present their marketing plans to the new DMO, it is proposed, and define how they will support the marketing activities of the DMO.  The Minister also wants to move the head office of the DMO from Burg Street to the V&A Waterfront, in a building to be called “Tourism HQ”, to be “more visible and accessible to tourists”!   Now this is something I do not understand, given that Cape Town Tourism is responsible for tourism information and accommodation  bookings, via its network of tourism bureaus around the Cape Town metropole, including Somerset West and Strand.  The first problem one saw was when Cape Town Routes Unlimited set up a “Gateway” tourism bureau at the V&A Waterfront, taking the “ownership” of it away from Cape Town Tourism, even though it is staffed by and carries the branding of Cape Town Tourism!

The municipalities were presented the new model by the Minister last week, and they have been given two months to table their response.  It is interesting to see how the new Cape Whale Coast DMO will deal with this news of the Minister, as it set itself up as a marketing agency for the coastal area stretching from Rooi Els to Gansbaai and including Hermanus.  This DMO is already making the fatal error of encouraging the members of the local tourism bureaus to become members of the DMO, in addition to being members of the bureaus.

Winde motivated his new strategy on the basis of “absolute duplication of national, provincial, and municipal marketing resulting in taxpayers’ money being spent three times in the same place”.   He stated that the Cape Town Tourism and Cape Town Routes Unlimited marketing of the city and the province caused confusion, and that the city and province did not have a clearly defined marketing strategy.

Not surprisingly Cape Town Tourism is not happy with the Minister’s announcement, and its Board announced last Friday that it will oppose the Minister’s move.  CEO Mariette du Toit-Helmbold’s words were carefully chosen when she wrote: “Cape Town Tourism has noted the proposal and embarked on a  comprehensive negotiation process with the City of Cape Town and the office of the MEC.   The Board of Cape Town Tourism has indicated that it is not in agreement with the proposal in its current format.”

She continued by stating the support of the City of Cape Town for the marketing role of Cape Town Tourism in marketing the city, exactly what the Minister proposes to change.  She wrote: “Cape Town Tourism is committed to protecting the interests of tourism in Cape Town and finding a workable solution that will most effectively realise the tourism opportunities in the city, whilst eliminating duplication and confusion. Cape Town Tourism has received reassurance from the City of Cape Town that we are and will remain the City’s tourism promotional and marketing body and that Cape Town Tourism’s structure will not change.”

It is disturbing to see that the same tourism marketing issues are being addressed again, and that tourism history is repeating itself, a waste of taxpayers’ funds in itself. It appears that every new provincial Minister of Tourism in the Western Cape sees it as his role to redesign the tourism bodies and their role, much like new Marketing and Brand Managers like to change their marketing strategies and advertising campaigns (and ad agencies at times too), just to make their mark.

This is likely to become another long drawn-out battle between the City and Province about the marketing of our precious brand “Cape Town”!

POSTSCRIPT 26/7:  Cape Town Tourism has sent out another e-mail to its members, reiterating its view about the Minister’s proposal, and has made the document available, inviting comment and input from its members:   “I informed you of the proposed centralised model for tourism marketing that was put forward by the MEC for Tourism and Economic Development, Minister Alan Winde. Cape Town Tourism has indicated to the office of the MEC and the City of Cape Town that the proposed model for a single, provincially centralised tourism destination marketing structure and brand for Cape Town and the Western Cape is patently misguided. If implemented, it will have negative consequences for tourism in Cape Town” , wrote Cape Town Tourism CEO today.

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

A media conference called by Dr Laurine Platzky, Western Cape Deputy Director-General Governance & Integration and 2010 FIFA World Cup Co-ordinator, and the World Future Society of South Africa, on Monday highlighted the way forward for South Africa in the next twenty years.   The positive ethos and energy generated by the World Cup will stand South Africa in good stead to maintain its level of excellence into the future, said the speakers.

Mike Lee, Founder of the World Future Society of South Africa, focused on the legacies of the World Cup.  The Rainbow Nation-building benefit is an “historic bridge”, connecting South Africans. It is a “moment in our destiny”, and paves the path to our country’s future, he said.  He highlighted five priorities for South Africa for the period until 2030 :   1. Improve the country’s ethics and standards   2. An economy growing at 7% per annum, to “meaningfully reduce poverty and unemployment”  3.The education system must be reformed   4. The ecosystem must be rescued   5. The country must undergo an energy revolution, moving away from coal-based energy to renewable and nuclear energy.   “The World Cup has renewed our licence to dream”, Lee said.

Dr Platzky focused on the legacy of the World Cup, and this was the infrastructure improvements, she said, Cape Town Stadium having become an iconic asset of the province.   She admonished local businesses for not having embraced the event well enough in bidding for the manufacture of memorabilia and clothing, rather than letting the contracts go to the Far East.   She said that the construction and hospitality industries had been the biggest winners of the World Cup, and stated that South Africa had been cushioned from the worst ravages of the recession because of hosting the World Cup.   The event has also led to “social cohesion”, creating an exceptional memory for school children, who will remember the event for their rest of their lifetime, and who also had the opportunity to learn about 31 other participating countries in their school projects, and also about other cities and towns in South Africa.   The legacy of the World Cup is also environmental, she said, with 41 “Green Goal” projects focusing on the long-term sustainability environmentally.   These projects will be taken to Brazil for the 2014 World Cup as well. She also mentioned that South Africans should proudly take recognition for their achievements in hosting the World Cup so successfully, rather than sitting back for the international media to tell us so.

Guy Lundy is the CEO of Accelerate Cape Town, and his first observation was the good winter weather during the World Cup – 5 sunny days and only 3 rainy days on match days - proving that Cape Town should not have tourism seasonality.   He also felt that ex-South Africans should no longer have to be apologetic about their country of origin, and should be proudly calling themselves “South Africans living abroad”.   He predicted an increase in wine sales due to the World Cup, and Cape Town’s marketability as a skills outsourcing centre.    He predicted that the World Cup would improve Cape Town’s chances of winning the 2014 World Design Capital bid.   The World Cup must lead to greater job creation, he said, and South Africans must become more positive, in not always waiting for the next disaster.   He said the country had an enormous potential to improve due to the World Cup.

Merle O’Brien is the Deputy President of the World Future Society, and spoke about the World Cup “gees” creating “social cohesion”, in making a collective “we” nation and society of South Africans.   The ethos of South Africans now would be Ubuntu and Ke Nako, the human spirit that will connect locals that are no longer commercially-driven but rather spirit-driven.

In question time, Dr Platzky was challenged about the duplicity of market research which is currently taking place in Cape Town (the Western Cape Province, Cape Town Routes Unlimited, the City of Cape Town, and Cape Town Tourism), all conducting unprofessional informal research and using these results to make media announcements on the basis thereof.  She agreed that the 50 interviews done by her department at the airport last week “was a bit of a joke” (even though the “9/10 rating” became the lead front-page story of the Cape Times).  She confirmed that professional research would be conducted to establish the benefits of the World Cup for Cape Town and the Western Cape.

More details about the World Future Society of South Africa can be found at www.wfs-sa.com.

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

For the first time ever accommodation rates for a major sporting event have decreased, in the face of the kick-off to the World Cup, say hotel booking engines, according to a report in Southern African Tourism Update.

HotelsCombined.com and Expedia.com have both observed how accommodation rates have declined since the over-supply of accommodation, resulting from the cancellation of rooms booked by MATCH, as well as the low accommodation demand, became known in April.   “We’ve never expected the hotel industry to drop prices during a peak sporting event.  It’s most unusual that prices have dropped this significantly.  We reject claims that hotel prices are rebalancing due to a stronger US dollar over the last weeks - which hasn’t moved the rand as strongly as other currencies.  Clearly, media reports of violence are affecting demand, which hotel chains and sole operators are reacting to in the form of competitive re-pricing” Michael Doubinski, General Manager of HotelsCombined.com is quoted as saying.

Expedia.com says the discounted rates have dropped back to 2009 low-season rates.   Accommodation establishments that had rooms returned to them by MATCH signed up with the two hotel booking engines, it is reported.

MATCH is reported to be blaming the global economic crisis for the reduced demand for World Cup accommodation, which led the FIFA accommodation and ticketing agency to cancel thousands of booked rooms, even in official FIFA hotels such as the Durban Hilton, reports Travelwires.com. Many soccer fans have chosen to stay in Johannesburg, being close to five stadiums, and will fly to Cape Town, Durban and other South African cities on match days.

Cape Town is trying to attract last minute bookings, and Cape Town Routes Unlimited has launched a campaign to create awareness for the Mother City.   Soccer fans booked in Gauteng, as well as South African residents wishing to travel over the 5-week school holiday are being targeted.  Accommodation establishments have already dropped their rates, and are hoping to attract these tourists.

Cape Town Routes Unlimited has launched a joint campaign with Thompsons Holidays, and has also partnered with travel agents such as e-Travel, Flight Centre, and Club Travel.  Information is being handed out at Cape Town and OR Thambo International airports, at the Tourism KwaZulu-Natal office and at uShaka Marine World in Durban, and at information kiosks in North Western Province.   A group of 200 Dutch fans travelling between Johannesburg and Cape Town will carry the branding of Cape Town and the Western Cape.   Footage of Cape Town and the Western Cape will be shown on SAA’s domestic and international flights.   A Google Adword campaign is targeting soccer fans in Gauteng, Rustenburg and Durban.

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

One of the first posts on this blog, in October 2008, related to the unprofessional behaviour and politicking by members of the board of FEDHASA Cape, an association representing the interests of hoteliers predominantly.  At that time this writer had highlighted the political games played by Past Chairman Nils Heckscher and newly elected Chairman Phillip Couvaras, now ex-GM of the Table Bay Hotel, who had only been in the country for four months at the time that he was elected.

As quietly as Couvaras arrived on the hotel scene and was elected as Chairman of FEDHASA Cape, as quickly did he disappear and leave Cape Town at the end of March.  It is stated that differences of opinion between himself and his bosses at Sun International in terms of room rates to be charged, combined with a reducing value of his package in foreign currency, given personal international financial commitments, led him to accept a new position in Hong Kong.

Earlier this week it was time for political games at the FEDHASA Cape AGM again, in the election of the new Board (FEDHASA Cape has the most odd system of calling for an election of each Board member every year).  Board members are nominated in categories, even for the position of Chairman.   Rey Franco, the Chairman of the Restaurant category, was nominated for the same position again, as well as for the position of Chairman, having been Acting Chairman from the time that Couvaras left the country.   Pitted against him was Dirk Elzinga, the current Managing Director of the Cape Town International Convention Centre, a member in the ‘Allied’ category.   Elzinga is however leaving the employ of the RAI Group, the Dutch convention center management company, next month, so he will not represent a FEDHASA Cape member company from then onwards, it is said.   It is alleged that Past Chairman Heckscher had lobbied those present in voting for Elzinga, and he was duly elected as the new Chairman, the first non-hotel Chairman ever of FEDHASA Cape!   When this writer stood for the same position two years ago, Couvaras was brought in, with similar lobbying by Heckscher, to prevent a Guest House owner (and female!) from being elected in this position!  

Franco retained his position as Chairman of the Restaurant category in the election, whilst another upset saw Susanne Faussner, who had been pitted against this writer in the “Small Accommodation” category two years ago, even though she owns a hotel and a restaurant, got some of her own political medicine back when the Acting Chairman Franco had to make the casting vote in the election result in this category, and voted for Carole Armstrong-Hooper, owner of Highlands Country House, and a better qualified representative of the Smaller Accommodation category.  Other Board members elected without controversy were Roy Davies from the Vineyard Hotel, heading the Hotel category, and Michele de Wit in the Allied category.   Those watching the politics within FEDHASA Cape will be delighted that Heckscher’s two-year term as past-Chairman on the Board is finally over.  His political games have been described as “poison” by some of his fellow Board members, and this can be endorsed by this writer. 

What will be interesting is what happens to Franco, who took over Couvaras’ slot on the Board of Cape Town Routes Unlimited, given that Elzinga now has been elected as the Chairman. 

From the time that MATCH launched its accommodation bookings for the World Cup four years ago, FEDHASA nationally but also the Cape branch supported and pushed contracting with MATCH as “the right thing to do”.  Nationally FEDHASA even took on a MATCH director onto its Board!    Hotels had loyally signed up 80 % of their room stock with MATCH.  Whilst a Director on the Board of FEDHASA Cape, this writer protested about the stringent legal terms and conditions, as well as the pricing directive, that the small accommodation establishments were subjected to in the MATCH contract, given the German experience of large-scale MATCH cancellations without refunds close to the start of the 2006 World Cup. The other Board directors condoned the MATCH actions!    MATCH has become a “swearword” countrywide, and in the hospitality industry specifically.  Heckscher was a particularly strong MATCH advocate, probably because of the benefit it would have for the Winchester Hotel he manages.  Ironically, his hotel received most of its room nights back from MATCH when the FIFA accommodation and ticketing agency cancelled the majority of room nights it had originally booked!

Brett Dungan, the national CEO of FEDHASA, who has been heavily criticised in this blog for his role in pushing a private accommodation booking portal (Rooms4U) he set up for the World Cup, is said to be leaving FEDHASA National, possibly as a result of his alleged abuse of his position at FEDHASA to further his personal interests. Elzinga will take over his position as CEO of FEDHASA National, but based in Cape Town, it is said - more politics, some would say, and supported by a headline in a report by Cape Business News :“CTICC Managing Director Finds a new Job”!  Being Chairman of FEDHASA is an honorary position that is not rewarded with compensation.

To read the original article “FEDHASA is a farce”, click here.

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

The Easter weekend looks to be a busy one for the hospitality industry, a welcome last burst of business until the dreaded winter lull commences after the weekend.  

Three major events take place this weekend: the Old Mutual Two Oceans Marathon and the Cape Town International Jazz Festival in Cape Town, and the KKNK in Oudtshoorn.   These events are estimated by Cape Town Routes Unlimited to generate R 780 million in income for the Western Cape, reports Southern African Tourism Update.

The Old Mutual Two Oceans Marathon will be run for the 40th time in Cape Town today, with a 56 km ultra marathon, a 21 km marathon, and 5 km and 2,5 km fun runs creating a choice for the 26 000 participants.

The Cape Town International Jazz Festival is in its 11th year, and its economic benefit is estimated at close to R 600 million.   The star of the Festival will be George Benson, who performs at the Kippies venue at the Cape Town International Convention Centre tonight.  His show will be a tribute to Nat King Cole.  Judith Sephuma, Toots Thieleman, Jason Moran, La Melodia, Jonathan Butler, TKZee, MiKaNiC, Regina Carter, Melanie Scholtz, and Bilal are some of the 40 artists and bands performing today and tomorrow.  Billed as “Africa’s Grandest Gathering” and rated as the fourth best jazz event in the world, the Jazz Festival is expected to draw 32 000 jazz fans over the two days.

The KKNK (Klein Karoo Nasionale Kunstefees) runs until 8 April, and is a feast of mainly Afrikaans music and theatre.  Experimental plays usually are first performed in Oudtshoorn.  Award-winning ‘Die Naaimasjien’, with actress Sandra Prinsloo, will be the highlight.   Musically, David Kramer will entertain with ’David Kramer se Kaapse Breyani’.  Other musical stars include Elsabe Zietsman, Amanda Strydom, Karen Zoid, Coenie de Villiers, Chris Chameleon, Koos Kombuis, classical guitarist James Grace, and the inimitable Nataniel.

March was a bad month for business, severely down on previous years, and it is evident that hospitality businesses are concerned about the winter ahead, given the impact that punitive increases in petrol, electricity, municipal rates and other municipal charges will have on consumers.  The only counter to these cost increases is the decrease in interest rates by 0,5 percentage points, reducing the costs of car and bond repayments.    A number of restaurants may not survive the quiet period ahead, and the reduced bookings for the World Cup may not bolster their earnings enough for them to survive the winter.

Western Cape Minister of Finance, Economic Development and Tourism, Alan Winde, said as follows:”The industry went through a rough patch over the last 18 months because of the global economic recession.   It is therefore very reassuring to know that our destination plays host to events of this calibre.  They certainly support the Western Cape Government’s objective of growth, job creation and poverty reduction and will help to build a long-term, sustainable tourism industry”.

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

Despite a commitment made more than six months ago that Cape Town Tourism and Cape Town Routes Unlimited would work together to market Cape Town and the Western Cape, and would work to avoid duplication in their marketing activities, little synergy between the two bodies is evident.

Now Western Cape Finance, Economic Development and Tourism Minister Alan Winde has confirmed that the two bodies will not amalgamate, and that nothing will change in the relationship between the two bodies until the end of the World Cup in July, reports Travel News Weekly.  

Winde also stated that a new focus would be the closer co-opration between role-players at national, provincial and local government levels in the Western Cape.   When the DA took both the province and the city in the last election, Winde stated that he would ensure that he would work to the unification of tourism at provincial and City level,  and would prevent it from being vulnerable to political party changes over time. 

The return of Cape Town Tourism CEO Mariette du Toit-Helmbold from maternity leave on 1 April should result in new vitality for the city tourism body.  Du Toit-Helmbold is a dynamic and enthusiastic marketer.  In her absence, Belinda van Niekerk has run Cape Town Tourism, but as she comes from an admin and financial background, she lacks Du Toit-Helmbold’s flair, energy and communication skills.   The new Marketing Manager of Cape Town Tourism, Leanne Burton,  has used Du Toit-Helmbold’s absence to build her own brand name, rather than that of her organisation or (more correctly) of the acting-CEO, in her PR activities for Cape Town Tourism, and has created some hostility with the media.

With the World Cup about 60 days away on her return, Du Toit-Helmbold will have a huge challenge to help fill her members’ beds, given the disappointing bookings over the World Cup to date, and to excite Capetonians about the benefit of Cape Town being one of the host cities for the world’s largest sport event. 

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

The festive season saw fewer holiday makers in the Cape, they stayed for a shorter period, and they spent less during their stay, say the tourism authorities, reports Fin24.   According to the Cape Argus, international tourism numbers dropped by 6 %, compared to 2008, due to the recession and due to the stronger Rand, offering lesser value for money.

According to Cape Town Routes Unlimited CEO Calvyn Gilfillan the Garden Route was quieter, speculating that this was due to the water shortage in the area.   The bookings however were slow compared to previous years, long before the water crisis became a reality.   The Overberg (especially Hermanus) and the Cape Town city centre were quieter, while the Boland reported similar tourism numbers as last year.   The West Coast had improved visitor numbers, being a more affordable destination.

Tourists were looking for affordability, says Cape Town Tourism, and that is why 5-star hotels struggled financially as guests traded down to lower star accommodation or even to self-catering accommodation.   Fedhasa Cape reports that occupancy in 5 star hotels reduced by 10 - 20 % compared to last year, over the festive period, while 3 and 4 star hotels “did better”.

The lower number of visitors from Johannesburg was evident in Cape Town and especially Plettenberg Bay.  It is said that the Johannesburgers stayed home this festive season, to save money in order to renovate their homes, which they want to rent out for the FIFA World Cup, at which time they want to leave the country.  Even the Table Mountain Aerial Cableway Company had mainly Capetonians as visitors.

At Whale Cottage Camps Bay bookings are starting to look good from 28 January onwards, the start of the weekend on which the J & B Met takes place, and almost all of February is booked out already.  The Argus Cycle Tour in March is also good for business.

Upmarket restaurants have been reported to have also felt the pinch over the festive season, and many did not manage to fill their expensive tables for New Year’s eve, with prices as high as R 2 000 per person.

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