Whale Cottage Portfolio Blog

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

With just over nine months to go before the 2010 World Cup, the marketing for Cape Town and the Western Cape appears to have become close to invisible.

About a year ago Cape Town Tourism was given the mandate by its members to accept the City of Cape Town’s directive to manage the marketing of Cape Town, a job previously done by Cape Town Routes Unlimited.    A Marketing Strategy was to have been prepared by Mariette du Toit-Helmbold, the bubbly Cape Town Tourism CEO, and she spent many hours obtaining input from members of the tourism industry to develop such a strategy, and a positioning for Cape Town.   She was a prolific writer and sent out numerous media releases.   The last release sent out by Cape Town Tourism, however,  was over a month ago, on 21 July.  

Cape Town Tourism has added a 2010 World Cup page to its website, and it is printing two issues of its Visitor’s Guide, instead of the usual one issue per year.  This appears to be the sum total of its current marketing activity.

At the time of her many brainstorming sessions, Du Toit-Helmbold favoured a positioning for Cape Town as the centre for innovation, design and creativity, but this has not been translated into a pay-off line, and it is not visible in the design of Cape Town Tourism’s website and letterhead.   The signature at the bottom of Du Toit-Helmbold’s e-mails has the pay-off line for Cape Town: “Living Cape Town.  Loving Cape Town”.    The website does not carry this pay-off line at all, but justifies the official Cape Town website www.capetown.travel as follows:” your trusted, impartial guide to Cape Town”.  The company started Twittering actively about three months ago, but now is invisible on Twitter. 

Cape Town Routes Unlimited is even quieter, and only sends out a weekly Events newsletter to the industry, and irregular CEO newsletters with far too many photographs, mainly of its CEO Calvyn Gilfillan.   An industry newsletter which helped inform tourism players has silently disappeared.

The CEO’s of Cape Town Tourism and of Cape Town Routes Unlimited last month met with the new Tourism heads in the City of Cape Town and Western Cape, Felicity Purchase and Alan Winde, respectively.  Could Du Toit-Helmbold have been silenced since attending this meeting?   The dates appear to coincide.

Interestingly, media reports earlier this year indicated that Cape Town Tourism had been awarded the marketing of Cape Town for another year, instead of referring to a three-year contract having been signed.   It intimated that the City had to seek tenders for the marketing, and could not just hand this over to Cape Town Tourism, as had been made public a year ago.   No information about a tender process, and the winner thereof, has been made public.

The meeting between Cape Town Tourism and Cape Town Routes Unlimited would have covered the prevention of duplication in the two marketing bodies’ marketing activities, and collaboration, where possible.  No further communication has been received in this regard from either body since the meeting last month.

Guy Lundy, CEO of Accelerate Cape Town, an organisation that connects with businesspersons to attract and stimulate economic growth for Cape Town, has criticised the marketing that is being done for Cape Town, reports the Cape Argus.   He too complains that too little marketing is being done, and that which is being done, is wrong, he says.   “Branding Cape Town as Africa’s party city for the World Cup should never have happened”, he said.   “The World Cup is that one opportunity we have to showcase the city to the world.  We don’t want to market ourselves like another Ibiza.”   Lundy says that Cape Town has changed its pay-off line from “Africa’s party capital” to “ready to welcome the world”, a line which was used in a few ads run in the local Cape Town newspapers, without much credibility, given that all the major Cape Town roads, its airport, the Cape Town station, and the rapid bus transport system are not yet ready for the 2010 World Cup!

Whale Cottage Portfolio: www.whalecottage.com

During a sport-intensive week and the death of Michael Jackson, a very important announcement by Cape Town Tourism, as well as a “Joint statement: City of Cape Town and Western Cape Provincial Government”, about the execution of a joint ‘Strategic Destination Marketing Plan’ by Cape Town Tourism and Cape Town Routes Unlimited, did not receive the attention it deserved from the tourism industry.

Designed to eliminate the duplication of marketing activity between the two tourism marketing bodies, a meeting was set up to focus on the growth of visitors to Cape Town and the Western Cape, and to ensure that tourism withstands political changes.

Cape Town Tourism’s mandate to market Cape Town has been extended by another year, Cape Town Tourism’s Mariette du Toit-Helmbold announced in her statement.

The statement released by the City and the Province was the following:

Joint Statement: City of Cape Town and Western Cape Provincial Government

The City of Cape Town and the Provincial Government of the Western Cape met on Monday, 22 June and agreed to jointly develop a sustainable solution to market Cape Town and the Western Cape as a globally competitive tourism destination. The discussions were hosted by the Western Cape Minister for Finance, Economic Development and Tourism, Mr Alan Winde and the City’s Mayoral Committee Member for Economic Development and Tourism, Alderman Felicity Purchase.

Also present at the meeting were the Chairpersons and Chief Executive Officers of Cape Town Routes Unlimited (CTRU) and Cape Town Tourism (CTT). Winde said: “The opportunity to find a lasting solution to manage tourism for destination Cape Town and the Western Cape has never been better. There is a need for all spheres of government to work together so that an environment can be created for business and residents to work in partnership with us. We have given the mandate to the officials to jointly develop a lasting solution for tourism marketing. It is important that the solution is able to withstand changes in political leadership and ensures no duplication.”

Ald Purchase added: “The Fifa 2010 World Cup is around the corner and we should not allow this opportunity to be missed. The City will, in the meantime, continue to use CTT to provide Destination Marketing and Visitor Services…”.

The timeframe for developing a sustainable model will be nine months and the key focus will be on how to best increase the number of visitors to Cape Town and the Western Cape.

Ald Purchase further said: “Both the City and Province agreed that it is important to be open minded about the outcome…Ultimately, we would like to see government provide an enabling environment for the tourism sector to grow and create more jobs in the economy. It is therefore important for the proposed solution to provide business and other key stakeholders with an opportunity to contribute resources and participate in the decision making”.

During the meeting both the City of Cape Town and the Provincial Government of the Western Cape agreed that the Constitution would provide the guiding foundation for the appropriate solution. Both parties also acknowledged that the proposed solution would inform possible legislative changes that are required for tourism to grow.

Whale Cottage Portfolio: www.whalecottage.com

Felicity Purchase is the new member of the City of Cape Town’s mayoral committee responsible for economic development and tourism.

Little information is available about Ms Purchase, especially from a tourism perspective.

It will be interesting to see how Ms Purchase and her counterpart in the Western Cape provincial government, Alan Winde, will deal with the relationship between Cape Town Tourism and Cape Town Routes Unlimited.