Whale Cottage Portfolio Blog

Yesterday was a day of reckoning for the bloggers of South Africa, who had been judged by a committee of three, and voted for by their fans, in making the short-list of ten finalists in 25 categories of the S A Blog Awards.  We are delighted to have been selected as a Finalist in the Most Controversial Blog category, and thank our loyal blog readers, friends, commenters, and Twitter followers for their votes in making the Finalist selection possible.

Now we are like Idols contestants, in that we please request your vote for our Blog, to win in the category (there is no prize, other than a badge that goes onto the blog). The Most Controversial Blog category is quite far down the list, and you need to please click on our blog name to vote, and then to scroll down to the bottom of the list, to enter your e-mail address.  You are allowed to vote for us every 24 hours, per e-mail address, until the competition closes on 17 September.

The Whale Cottage Blog had been nominated in a number of categories, including Best Food & Wine Blog, Best Blog Post, Most Controversial Blog and Best Travel Blog.  Being a unique blog that does not fit fully into any specific category (e.g. Food, Travel), we were delighted to have made the finals (somehow we never got to enter last year).  The Most Controversial Blog category is a new one introduced this year, and it seemed to suit us ideally!   If we have created a unique identity for our blog, it has been to be ”independent * incisive * informative”, and it is described as being controversial, due to our lack of fear to write the truth, no matter the consequences.

We are in excellent company in this category, with 2Oceansvibe being a fellow finalist - last year its editor ‘Seth Rotherham’ won almost every category in the Blog Awards, and his blog became the benchmark for many of us (this year a blog can only be nominated in two categories).   The rest of the Finalists’ list is a little more dubious, sex and swearing broadly summarising the content of the other blogs in the Most Controversial Blog category.

The WhaleTales newsletter has been distributed for the past nine years, and has been the foundation of our writing about controversial issues.   It has not always been easy to be outspoken, in that we have experienced the following:

*  being told to not come back to the Opal Lounge, due to an unfavourable review that we wrote (in fact the instruction to not return was issued telephonically by the co-owner before the review was written and published)

*  being escorted out of Beluga by the police during a invited lunch for members of an association of guest house owners in Camps Bay, of which I am the chairman, because sister restaurant Sevruga received a Sour Service Award on this blog for a Cape Times book launch lunch, which the restaurant handled poorly, both food and service-wise

*   being threatened with legal action when we tackled Carne about falsely claiming that all its beef, lamb and game served comes from its Karoo farm and is organic, our most controversial blog post in the two year history of blog-writing.  This blog post was nominated for Best Blog Post.  The Carne blog post, and its follow up, took investigative journalism of the bravest kind, in obtaining documentation from the suppliers of the meat, and in obtaining (by luck) a telephonic admission by a supplier of meat to Carne, resulting in Carne withdrawing its legal threat, declaring the matter closed, and taking the dishonest claim off their website.

*   being on the receiving end of FEDHASA Cape’s attempt to cancel our membership, which resulted in my resignation as a Director of the hotel old-boys’ club, when I wrote about the dangers of small accommodation establishments signing with FIFA’s MATCH for the World Cup, over the past five years.  My views about MATCH were not in line with the hotel interests which dominated the FEDHASA Cape Board, and Nils Heckscher, GM of the Winchester Mansions, tried his best to get me off the Board.  Ultimately, we were vindicated in our advice when MATCH cancelled the bulk of its booked small and hotel accommodation throughout South Africa, the Winchester Mansions being one of the hotels badly hit by the cancellation of booked rooms by MATCH.  

*   being threatened with legal action by the Cape Whale Coast DMO, after our blog post of 28 December 2009 raised questions about the conflict of interest created by Clinton Lerm being the Chairman of the Hermanus Tourism Bureau and of the DMO.   Nothing has come of this threat to date.  Yesterday we published a follow-up story on the DMO’s lack of transparency.

We would also like to recommend the following blogging friends and colleagues, for your vote:

*  Food & Wine Blog category: Cooksister (Jeanne Horak-Druiff), My-Easy-Cooking (Nina Timm), JamieWho? (Andy Fenner) and The Foodie (David Cope) (all of last year’s finalists have dropped out of this category, other than Cooksister and My-Easy-Cooking)

*   Best Travel Blog category:   SA Venues and Cape Town Travel (Cape Town Tourism)

*   Best Twitter Microblogger category: Relax-with-Dax, Gus Silber, and Spit or Swallow

We thank you for your support and your votes.

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

The Western Cape MEC of Finance, Economic Development and Tourism is unhappy that his well-meant attempts to create a unified Tourism strategy for Cape Town and the Western Cape is not receiving the industry support that he would like, and is particularly unhappy that Cape Town Tourism has publicly stated that it is unhappy with the MEC’s proposal.   He has given the industry until 27 September to provide input into his proposal.   Our comments about the proposed Tourism Strategy can be read here.

We publish the MEC’s full Media Statement below:

“MEDIA STATEMENT BY ALAN WINDE - MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND TOURISM 

Over the past week a number of articles and statements have appeared in the media regarding the desire of the tourism community and leadership of the Western Cape to create a shared, single solution for marketing of the City of Cape Town and the wider Province as a leading, compelling and highly competitive tourism destination on the global stage. In so doing we as a destination will unlock sustainable, equitable growth and development for all people of the province. Critical to this process is the passing of Resolutions for the creation of a new Provincial Tourism Marketing Model. These Resolutions have been shared, timeously and transparently, with the tourism community. Overt invitation has been extended for solicitation of inputs to the Resolutions, clearly reflecting the desire to ensure that this process takes into account collective points of view. Public expression of viewpoints on the vision for destination marketing and the process currently underway is invaluable as it demonstrates that the consultative processes put in place are in fact working. I note with concern, however, the public rejection by Cape Town Tourism’s Board of the proposals detailed in the draft Provincial Tourism Marketing Model. This declaration, and the impact it is having in dividing the tourism community, demonstrates the risks in putting premature statements of failure of process ahead of vision and trust in the process. It serves no purpose other than to arrest progress. 
At the outset, let me confirm that the Resolutions put forward represent a document in the making, intended to inspire robust debate on the best way forward for tourism in the Western Cape.  At this stage no assumptions or proposals are made for either the marketing strategy, nor the structures that will roll it out once these have been defined. 
I would like to urge tourism industry players to engage with the document in a responsible manner.  We, as leaders in the future of tourism for our province, should show respect for the process and act in a manner that honours the institution of democratic engagement. 
Please submit constructive comments based on the content of the document to my office via taepartnership@pgwc.gov.za by 27 September 2010. 
I re-emphasise that the end result of this process is a collectively defined way forward that will see us become a globally competitive tourism destination that brings social and economic benefits for our people, and ensures a positive experience for travellers to our province.  By working together, ‘Team Tourism’ can create a proud, lasting legacy that will endure well beyond our tenures.  The traveller should always remain at the heart of our efforts.” 

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

Cape Town Tourism issued a media release “A Mid-Way 2010 FIFA World Cup Report from Cape Town Tourism” on Friday, which has (frighteningly) been picked up by news agencies and reported upon immediately.

My problem with surveys conducted by companies that do not have the faintest idea of market research is that the answers received will only be as good or as bad as the questions asked.  I knew immediately that the results would be used for publicity purposes when I received a survey participation request as an accommodation establishment from Cape Town Tourism two weeks ago.

The first questionnaire was embarrassingly bad, with poor grammar, poor time scales provided as answer options, leading questions asked, and a 5-day timeline referred to when they meant 7 days!   I wrote to Cape Town Tourism CEO Mariette du Toit-Helmbold immediately, telling her that it would be irresponsible if the results were to be used for PR purposes.  I offered my help, having been a market researcher for 20 years, and was sent the second accommodation survey for input a week later.   I had to correct almost every question, and hoped that it would be used as it had been corrected.  But no, many questions were altered, new ones introduced relative to the draft questionnaire, making comparison between week 1 and week 2 impossible, more grammatical errors were made in that my corrections were “corrected” nonsensically, so much so that I wrote to Du Toit-Helmbold again, withdrawing my offer to assist in future, in not wanting to be associated with such unprofessional work and by implication condone its irresponsible use for publicity purposes.

And so two days after the last “survey” went out, the results of the two weeks’ “surveys” were neatly packaged and presented as a valid “survey” and findings presented as the gospel in a press release for all the world to read!

The first problem is that the sample size is not specified - i.e. the number of respondents relative to the universe of accommodation establishments.  Second, the “survey” only would reflect Cape Town Tourism members, and not all accommodation establishments in Cape Town (in Camps Bay, for example, most guest houses do not belong to Cape Town Tourism) - this is not mentioned in the press release, which is irresponsible in itself.  Third, the geographic definition that was used in the press release was the “Cape Town Metropole” - in my definition that would be the inner city of Cape Town, but in the definition of the City of Cape Town, it would be the municipal area of the whole area of Cape Town (e.g. Southern Suburbs, Atlantic Seaboard, Northern Suburbs, and even Somerset West and Strand).   Incorporating all of these areas of greater Cape Town would certainly skew the findings - whilst the press release referred to such areas as Green Point and City Bowl, the suburb of the respondents was not asked in the questionnaires, which makes one wonder how they got to this information!

And so if one were to waste one’s time in evaluating the results of the accommodation “survey”, the finding of a 40 % average occupancy would reflect the geographic bias in the “survey” design, as low occupancy of guest houses in Somerset West or Durbanville would reduce the higher occupancies in the city and Atlantic Seaboard areas on average.   The press release reports an average occupancy of 71 % for the City Bowl, Waterfront and Green Point areas.  Once again, this finding is questioned as the geographic question was not asked, and the respondents were anonymous!   Where the press release states that the “survey” found that business had improved in the second week of the World Cup, our experience in Camps Bay is the opposite, it having become very quiet since the departure of the England fans last Monday. The majority of the 25000 Dutch fans (unfortunately for Cape Town) camped at the Berg River Resort in Paarl.

Even worse is the predictions that are made by the writer of the release, sent out by the Cape Town Tourism’s PR company Rabbit in a Hat Communications, the authors of the “survey” questionnaire.  It finds that the average length of stay is only 3 - 4 days (we would disagree), and predicts that the “length of stay in Cape Town will increase as the tournament progresses.  Cape Town hosts a Quarter Final on Saturday, 3 July and the Semi Final on Tuesday, 6 July 2010 and expects visitor numbers will peak during these times”.  Anyone observing the movement of soccer fans will know that this is a dangerous prediction to make, and that soccer fans follow their teams, not cities!  The teams playing the Round of 16 in Cape Town tomorrow are Portugal and Spain, and Germany faces Argentina in the Quarter Final on Saturday, but no additional bookings have been received from their fans.  The teams for the Semi Final are not yet known, and therefore bookings are not being made for these dates yet.  However, it may be impossible to still buy tickets for these last three Cape Town matches, as they were the first to be ’sold out’, according to media reports.

More reliable information is contained in the press release as far as other tourism World Cup indicators are concerned:

*   Cape Town International airport reports that its number of international arrivals is up by 44 %, the busiest day to date being 20 June, when 25 000 passengers were “processed”.   Bookings for flights to South Africa were being made while England was playing Slovenia last Wednesday, the release says.

*   Luxury coach company Springbok Atlas reports fully booked coaches, with two trips per day per coach on average

*   Car rental companies “are reporting mixed results, many saying that figures have been disappointing but that business increases around match days”, say the press release.

*   The 18 branch offices of Cape Town Tourism report a 16 % increase in “international visitors” and a 3 % decline in “domestic visitors”, compared to the same period as last year.  One wonders how this is recorded, as the country of origin has never been seen to be recorded when visiting such a branch.

*   The V&A Waterfront reports that its tenants are enjoying trading as in the summer season, with 150 000 - 160 000 persons per day (not all tenants would agree).

*   The Table Mountain Aerial Cableway Company reports increased business of 50 % higher than in 2009

*   The Cape Quarter reports good results for its restaurants, and less so for the retail tenants

*   Tour operator business has increased by 20 % (this comes from another Cape Town Tourism “survey”, so the result should be treated with caution, as the sample size was not revealed)

*   Restaurants must be trading very poorly, as their business levels compared to 2009 are not reported

*   Probably the most valuable measurement of success of the World Cup to date is the media coverage for Cape Town.   Cape Town Tourism reports that it has hosted 205 international journalists since January until 10 June, mainly focusing on the readiness of the city to host the World Cup.   Since 11 June 85 international journalists were hosted on sightseeing tours of the city, and information was provided to 93 media channels.  The Media Centre at the Cape Town Stadium, as well as at the Fan Park at the Grand Parade, is staffed by Cape Town Tourism, and the brochures and information packs provided to the media are commendable.

(An irony is that FIFA President Sepp Blatter wanted a new stadium in Cape Town for media purposes, because Table Mountain could not be seen from the old Green Point Stadium.  The few meters that the Stadium had to be moved meant a spectacularly beautiful new building for the city, which in fact is the backdrop for much international media reporting, taking away from the beautiful landmarks Cape Town has.  The new Stadium therefore is an important landmark in its own right, a surprise outcome).

*   VIP visitors to Cape Town have been an accolade for the city (not reported upon by Cape Town Tourism), and the stay in Cape Town last week by Princes William and Harry, London Mayor Boris Johnson and David Beckham have already been documented on this blog.  Now Bill Clinton is visiting the city, staying at one of the Penthouses of the One&Only Hotel in the Waterfront.   Prince Harry has also returned to Cape Town after last week’s match, and was seen having lunch at the Grand on the Beach on Thursday.

*   One should not forget how good Cape Town is looking, and the World Cup has done the city proud in its upgraded and largely smooth-flowing N1 and N2 highways, its beautiful new airport building and recently renovated train station, its modern buses, upgrade of Green Point, upgrade of the Grand Parade, the great walkability of the Fan Mile, the greening of Green Point, and upgrade of the Metropolitan Golf Club, new modern street lighting around Green Point, the lit-up Table Mountain - all combining to make Cape Town feel like a world-class city, even to its residents!

*  If media reports are to be believed, Cape Town has been approached to host the Olympic Games in 2020 - what an amazing compliment for the city.

To fill the tourism gaps in Cape Town (having been left out of much of the action in only having eight matches played at the Cape Town Stadium, and no teams based in the city), Cape Town Tourism has embarked on a “Come to Cape Town” marketing campaign, to attract Johannesburg-based soccer fans to come to Cape Town in-between matches.  Airline partners are offering flights at R 700 one-way, while accommodation establishments are offering their rooms at R 500 per person.

*   Cape Town Tourism’s funder, the City of Cape Town, simultaneously reported on the status of Cape Town, but this was not incorporated in the Cape Town Tourism press release.   Mansoor Mohamed, the Executive Director of Economic and Social Development and Tourism of the City, indicated that informal traders were doing well,  more expensive hotels were experiencing low occupancy (20 - 40 %), and that restaurants “are also doing better than expected trade, with some even beating their actual Christmas figures”, reports South Africa.info.  We disagree with the restaurant finding, having experienced empty restaurants, and observing soccer fans mainly ordering beer and very little food when they sit in pubs and restaurants.    Mohamed has admitted that his observations are based on “initial surveys”, and stated that the economic impact of the World Cup will be established by means of comprehensive research at the end of the tournament.  “The World Cup is the single most important event for South Africa and the African continent in recent time.  It is positively changing the world’s perceptions about Africa” Mohamed said.

*   A very low-key but most high profile event taking place in Cape Town until today (not reported upon by Cape Town Tourism in their media release) is the Fortune, TIME and CNN Global Forum.  About 140 heads of global and local companies such a Royal Dutch Shell, China Mobile, Deutsche Bank, The Coca Cola Company, DuPont, Rio Tinto Group, McKinsey & Company, Trilogy, Merck Vaccines, Kissinger Associates, Inc, De Beers Group, Richemont SA, One&Only, Naspers Limited, De Beers Group, SEACOM Limited, ABSA Group Limited, Standard Bank Group, Symantec, First Rand Limited, Sanlam Limited, Pioneer Foods, Investec Asset Management, and Daimler, paying $5000 each to attend, will meet influential persons from TIME magazine’s top 100 list, reports the Weekend Argus.  Bill Clinton, Ex-President FW de Klerk, Minister in the Presidency Trevor Manuel, Minister of Trade & Industry Rob Davies, Francois Pienaar, and World Cup Local Organising Committee Danny Jordaan and others will be addressing the Forum, while President Zuma will be addressing the delegates via satellite from the G20 summit in Canada. High level journalists and news anchors from Time, Fortune, CNN, and CBS News will also attend the Forum at the Cape Town International Convention Centre.  Delegates are staying at the Mount Nelson Hotel and the Cullinan Hotel.

There can be no doubt that Cape Town is busier than it would have been in any other June.  The reality is that May was the worst month ever experienced, the World Cup having created a vacuum of bookings.  One hopes the same is not true for the rest of July.  It is disturbing to see the low number of bookings made for Christmas and New Year, traditionally the most popular period in Cape Town, and a period that would have been booked up by now already.  If Whale Cottage Camps Bay is anything to go by, it is going to be a lean summer, despite the World Cup hype - the British travellers are the largest source of bookings for Cape Town, and they are under severe financial pressure with the new Conservative/Lib-Dem government having imposed stringent financial measures in their budget earlier this week, including an increase in VAT of 2,5 percentage points to 20%.  Many countries in Europe are also facing tight economic measures imposed by their governments (e.g. Greece, Italy, Spain) and even Germany is affected by Europe’s economic woes.

An interesting issue is the effect of the World Cup on travel aspirations to South Africa of Americans.  The American soccer fans were the largest ticket-buying nation of all, beating England and Germany, and were the first to book, more than a year ago.

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

The World Cup has always been said to have the benefit of showcasing South Africa, and the world’s media are descending on the country to prepare profiles of South Africa.  Some of it is negative, but much so far has been positive, especially in showing off the beauty of Cape Town.

A South Africa-based correspondent for SkyNEWS seems to be in the townships every day, negatively reporting about the poverty of these residents, while the ’rich’ sector of the country benefits from the World Cup, it is highlighted continuously.

Much more positive reporting is coming from ZDF, Germany’s largest TV station, which is pulling out all the stops to showcase South Africa.  Yesterday, for example, the station did a 24 hour broadcast on its online channel, about our country, a conglomeration of various documentaries the station had produced on previous occasions.  Unfortunately an on-line broadcast is not as powerful as a television broadcast, but it will have attracted a young audience.   ZDF put a lot of advertising muscle behind the 24-hour broadcast, so it created strong awareness amongst ZDF viewers.   The country brand ’Suedafrika’ is definitely top of mind. 

However, 90 minutes of the on-line broadcast was broadcast on ZDF TV throughout the day, in three sets of 30 minutes each.   The programme started with beautiful shots of Table Mountain, and then of Cape Town filmed from Table Mountain.   It was said that a trip up the mountain by cable car is a must for every visitor.   Then the documentary jumped in contrast to a school in Wuppertal, showing children in a boarding school having to brush their teeth in an irrigation canal, because there are not enough facilities in the hostel for all the children.  Then it moved to showing burning tyres, set alight by taxi drivers protesting against the new BRT bus system to be introduced.   A township resident was interviewed, who positively stated that he would never leave his township : ‘I do not want to change my life for anything’, despite the poor facilities in the township.   Children receiving a swimming lesson in Khayelitsha were filmed, and a sangoma throwing the bones interviewed.   Then the production team interviewed Pieter-Dirk Uys, who initially spoke in German, but switched to English when he spoke about how dangerous it was for him to have mocked the Government when he first started, and melodramatically stated that had he been black, he would have been imprisoned!  (He did not tell the interviewer that he has declared Evita se Perron in Darling soccer-free during the World Cup!).

Then the action moved to Captain Crash, who chases after stolen cars and minibus taxis in his helicopter (I have seen this insert twice already), and then to a Soweto-based Event Manager Tshepiso Mohlala, who is involved in the organisation of the World Cup Concert on 10 June.   A lot of airtime was given to a German wedding co-ordinator from Wedding Concepts, who was organising a wedding at Allee Bleue outside Franschhoek.

Capetonian and ex-Miss South Jo-Ann Strauss features regularly in a ZDF TV advert for the World Cup Concert, from which Strauss and revered ZDF talk-show host Thomas Gottschalk will be presenting for ZDF.  She speaks near-perfect German, her partner being from Munich, saying: ‘Suedafrika begruesst die Fussballwelt’ (South Africa welcomes the football nations).

Other programmes, like ‘Traumstaedte’ (Dream Cities), start off positively, with beautiful views of Camps Bay beach, the Promenade, the Bay Hotel, the Waterfront, but soon move to the townships, and interviews are conducted with extremely negative residents, talking about the crime and drug situation in the townships.   The ZDF reporters talk about Cape Town’s ‘Hell and Paradise’ not the lasting impression we would like to create marketing-wise amongst international viewers.

‘Traumflug durch Afrika: Von Kapstadt nach Kenia’ (Dream flight through Africa: from Cape Town to Kenya) was far more positive, documenting a Eurocopter pilot flying over beautiful Cape Town (Table Mountain and Cape Point), flying 3 meters above the sea, the Garden Route to George and Knysna for some golf and oysters at the Dry Dock restaurant, to the Addo Park for a safari, to St Francis, Coffee Bay, the Hole in the Wall, and then off to Lesotho, reaching his end destination of Kenya. 

In a cooking program with some of Germany’s top chefs, the cooking stars all wore German soccer jerseys, to show their pride in and support for the German team, indirectly attracting attention to the World Cup.

Given that Cape Town Tourism has appointed PR companies in Germany and the U K, and in other European countries, we trust that the city’s tourism body will help influence the content of documentaries of our city, and that they show the tourist side of Cape Town, without having to focus so much on the townships.

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

What was a disaster for many thousands of air passengers around the world, created an unexpected boom or bust for the tourism industry, as well as for exporters and importers around the world. Stranded passengers were named “Volcation” tourists, a new and unique tourist category!

Not only did the world’s now most famous volcano create havoc with airline schedules around the world, and those in Europe in particular, but it also prevented dignitaries from attending the Polish Presidential couple’s funeral, and the birthday celebration of Queen Margrethe of Denmark. Actor John Cleese was so desperate to get home from Norway that he rented a taxi from Brussels (having got there by train) at €3 800 to get back to London.

In South Africa the fresh fish industry (hake exporters in the main) lost R1 million and the fresh flower market (mainly proteas, fynbos and chrysanthemums) lost R2,5 million in sales, reports the Cape Argus. Many local authors and book publishers could not get to the London Book Fair, at which they had been booked, which fell into the volcano no-fly period.

Cape Town Tourism was the only tourism authority, as far as we are aware, that appealed to its members to charge reasonable rates to the “grudge” tourists that were stuck in Cape Town. For many, however, it was one of the nicest places in the world for them to have been “stuck” in. Many accommodation establishments gained from the “Volcation” tourists, in that these had to stay in Cape Town for up to 10 days, being disadvantaged by the airlines in having to wait for cancellations to be able to fly back on their booked airline. Those passengers that had booked tickets for just after the opening of the skies were allocated first priority to use their tickets for already-booked flights. Few incoming passengers cancelled due to the volcano, and some arrived later than their original booked date, but were generously accommodated by establishments in this regard. This was a boon to the hospitality industry, given that the last ten days of April had originally looked very quiet in terms of bookings.

Airlines suffered heavy losses, as their insurance cover was uncertain, given that this was an “Act of God”. Their liability towards their passengers was also uncertain, for the same reason. SAA suffered a loss of revenue of R 14 million per day. Ryanair publicly refused to compensate its passengers, other than for the value of the ticket cost, given its low fares. Virgin appears to be compensating its passengers for the accommodation costs.

We are grateful to the Shepley family, Lucy and Graham Cannell, and to Jean and Andrew Lovett for having booked at our Whale Cottages in Camps Bay and Hermanus for their “Volcation”.

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

The Grant Thornton survey about World Cup pricing, conducted on behalf of the Ministry of Tourism, shows that “most World Cup accommodation prices have increased by a reasonable amount, despite persistent concerns about profiteering, South African Tourism Minister Marthinus van Schalkwyk said on Friday”, says a Reuters report.

The survey found that the accommodation pricing of the 2479 accommodation establishments, including hotels, guest houses, B&B’s and self-catering establishments, that participated in the survey, were charging a premium of less than 50 % on their 2010 summer rate.  However, the rates premium in Gauteng, which sees Johannesburg hosting the opening and closing matches, is more than 50 % for more than two-thirds of the establishments, according to the survey.

According to a media release from Cape Town Tourism, the survey results show that fewer than 20 % of accommodation establishments in the Western Cape are charging more than 50 % of their 2010 rate, reflecting this province’s call to responsible pricing.

Van Schalkwyk is quoted as saying that ”The majority of accommodation establishments in South Africa are very responsible, we know that 74 percent will be charging prices during the World Cup that are very reasonable” at the news conference.

The Tourism Minister said that rate increases were to be expected during major events, but warned the industry about the damaging effect exorbitant prices could have on the World Cup legacy.  ”We will continue to do everything to discourage excessive premiums when these do occur.  I am satisfied that by far the majority of accommodation establishments are acting responsibly and are sensitive to our warnings about price hiking and its effects” said Minister van Schalkwyk.    The Minister encouraged soccer visitors “to shop around to get the best deal”. 

The Tourism Minister’s “praise” of the industry was to be expected, in that the survey conducted on his Department’s behalf could not have come up with any other finding for South Africa, to save face in the face of international criticism about “price gouging”.   However, praising price increases of “below 50 %” is not commendable, as the accommodation industry guideline for World Cup accommodation rates was the 2010 rate + 10 %.  The ‘under 50%’ rate that lies between 11 - 49 % is equally rip-off as is that which lies over 50 %!  

The Gauteng accommodation industry is profiteering from the demand versus supply in Johannesburg, and it being a central point for matches at a number of stadia.   The two-thirds of estabishments charging an add-on of more than 50 % should be ashamed of themselves for charging excessively.  

The sample size of just more than 2 400 establishments is small in comparison to the many thousands of accommodation establishments in the country.   One would assume that the more price compliant establishments would have been more likely to have responded to the survey, therefore skewing the results.

Minister of Finance, Tourism and Economic Development in the Western Cape, Alan Winde, has threatened to name and shame the Western Cape “overnight accommodation establishments” that charge excessive rates during the World Cup.  The Minister would be advised to check on restaurant and transport prices too, as reports of excessive pricing have also been levelled against these sectors, reports Eye Witness News.  

Flaws in the Grant Thornton questionnaire design may also have skewed the results - read our criticism of the study questionnaire here.

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