Whale Cottage Portfolio Blog

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

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

Representatives of Cape-based tourism bodies as well as some commercial entities met in the offices of Cape Town Tourism yesterday, to sign a declaration of fair World Cup pricing and operation, to maintain and protect the reputation of the Western Cape and of Cape Town.

Driven by Western Cape Minister of Tourism Alan Winde and Cape Town Tourism CEO Mariette du Toit-Helmbold, representatives of Cape Town Routes Unlimited, Backpackers South Africa, FEDHASA Cape, SATSA, Portfolio Collection, Fair Trade in Tourism South Africa, the City of Cape Town, and the Western Cape Ministry of Finance, Economic Development and Tourism signed to support the declaration.    It is interesting that the Portfolio Collection is represented, when other accommodation guide publishers, and other tourism associations were not included in the ceremony yesterday.

Du Toit-Helmbold has reminded the accommodation industry how important it is that pricing for the World Cup should be kept at a reasonable level (the summer rate is suggested), and that short term “rip-off” pricing will damage the reputation of the city and province.  

The Code of Responsible Pricing for Cape Town has been created around four core principles: 

‘Fair Value’ means that the tourism sector will create fair and reasonable rates for the 2010 FIFA World Cup™ that are linked to current seasonal rates. 

‘Responsible Tourism’ underlies Cape Town’s commitment to be a destination that values and promotes social responsibility and environmental protection. 

‘Sustainable Tourism’, whereby businesses will be expected to be mindful of the interests of maintaining a legacy for Cape Town beyond the 2010 FIFA World Cup™. 

‘Consumer Protection’ against hidden costs and fees that surprise and annoy consumers.

It is interesting that MATCH, FIFA’s accommodation agency, was not invited to the Code signing ceremony, being the biggest culprit in charging “rip-off” pricing by loading the accommodation rate of its signatories with a 30 % commission.   Also, despite signing the fair pricing code, none of the signatories have spoken out about MATCH’s irresponsible accommodation rates.   Only Portfolio cautioned its advertisers about signing with MATCH, and that may have been out of self-interest to ensure that their advertisers receive the bookings, from which Portfolio can earn commission.

FEDHASA Cape Manager Rema van Niekerk is quoted in the Times today as saying that she will terminate the membership of hotels that are found to be transgressing the Code.   All complaints will also be passed on to the Tourism Grading Council of South Africa (TGCSA), the article says.  However, they have no mandate to act on pricing, given that the TGCSA is a standards assessment body.

The focus of the Code appears to be accommodation pricing, but relates to all tourism products and services.   It will be interesting to see how restaurant pricing, rumoured for example to be about R 1 000 per person for a set menu at Beluga during the World Cup, will be monitored relative to this Code.

Surprisingly, Cape Town Tourism has not communicated with its members about pricing guidelines, as they seem to assume that their members read the Cape Town Tourism website regularly, or the newspapers reporting on the media releases sent to them by Cape Town Tourism.

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

Cape Town is facing strong tourism competition, and will have to set itself far tougher tourism challenges and to market itself more creatively to be able to meet this competitive challenge, said Cape Town Tourism CEO Mariette du Toit-Helmbold at the tourism member association AGM earlier this week, reports Southern African Tourism Update. 

“ * be recognised as one of the top cities in the world to live, visit, study and invest in
  * double its tourism income
  * use the Fifa World Cup as a springboard to create an economic legacy and unite Capetonians
  * to solve its seasonality problems.”

 ”* a commercial business development strategy focusing on retail, use of technology to upgrade the visitor services network, and expansion of a patron partnership programme with the corporate sector.

* Joint marketing agreements with the tourism industry to expand private-sector funding contributions.

The best tourism news in a long time is the announcement by Frankfurt-based Kleber PR Network that it has been appointed to market Cape Town, reports DeinTouristNet.

Kleber PR Network has good experience of marketing South Africa in Germany for the past 15 years, having been the PR company in Germany for S A Tourism for many years, until the local national marketing body appointed Ogilvy as its new advertising agency, with an affiliated PR company, therefore relinquishing its relationship with Kleber.  

Whale Cottage has accommodated S A Tourism journalists over the years, and can vouch for the knowledge of and passion for Cape Town and the rest of South Africa of the Kleber PR Network executives. 

Hanna Kleber, CEO of Kleber PR Network, said: “Kapstadt hat jede Menge Potential und wir freuen uns darauf, die Stadt mit gezielten Maßnahmen weiter im Urlaubs- und Businessreise-Markt zu etablieren.   Mit seiner traumhaften Lage an zwei Weltmeeren, dem spannenden Mix aus Nationalitäten und Kulturen und einer landschaftlichen Vielfalt, die ihres gleichen sucht, hat sich Kapstadt in den letzten Jahren als eine der großen internationalen Lifestylemetropolen einen Namen gemacht. Im Zuge der FIFA Fussballweltmeisterschaft 2010 - wird die Stadt zudem als wichtige Austragungsstätte im Fokus der Öffentlichkeit stehen.” (Kleber PR will further enhance Cape Town’s presence in the leisure and business tourism markets, and will position the city as a lifestyle metropole, being very much in the focus for the 2010 World Cup.)

One wonders why Cape Town Tourism does not communicate such exciting news to its members.  WhaleTales recently criticised the lack of visible marketing by Cape Town Tourism and by Cape Town Routes Unlimited, but neither of the two bodies responded to this criticism.  

The appointment of a PR company to market South Africa’s top tourism asset is fantastic news, and would delight its members, especially at a time when membership renewals are due!

Communication with Mariette du Toit-Helmbold, CEO of Cape Town Tourism, has confirmed the appointment of the Kleber PR Network for the marketing of Cape Town in Germany, and she also communicated that a PR company has been appointed in the UK.  A similar appointment is expected in The Netherlands shortly.

Read the full report here

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

The strangest tourism news report ever received is that Cape Town Routes Unlimited has accredited Cape Town Tourism as an official tourism association, in accordance with the accreditation powers that Cape Town Routes Unlimited holds through the Western Cape Tourism Act of 2004.

What is bizarre about the report is that the Act was promulgated five years ago, and Cape Town Routes Unlimited has been in existence for the same period of time.   In this period very few tourism associations were accredited by Cape Town Routes Unlimited - Plettenberg Bay, Franschhoek, and Oudtshoorn come to mind as being the few tourism bureaux whose accreditation was publicised.

Cape Town Tourism is the largest and leading Tourism Bureau in the Western Cape, and one wonders what politics lie behind the accreditation.   What makes the  report in bizcommunity.com so odd is the following sentence:”Accreditation of these tourism organisations ensures that international operating standards are adhered to”.  However, the industry believes Cape Town Tourism to be the more organised and state of the art than Cape Town Routes Unlimited!   The report states that Calvyn Gilfellan, CEO of Cape Town Routes Unlimited, handed over the accreditation certificate to Mariette du Toit-Helmbold, CEO of Cape Town Tourism, at a ceremony attended by the media.

Oddly, the event seems to be a non-event, as neither Cape Town Tourism nor Cape Town Routes Unlimited have issued a media release about it, nor has Cape Town Tourism informed its members of this event!

Anyone in tourism will wonder about this event, given that the two bodies are trying to work together in marketing Cape Town, a role that previously was the responsibility of Cape Town Routes Unlimited, but has been handled by Cape Town Tourism for the past year.

Whale Cottage Portfolio: www.whalecottage.com

A report in the Cape Argus two days ago described the desperate attempt by Cape Town Routes Unlimited’s Marketing executive David Frandsen to obtain funding from Parliament for the marketing of Cape Town in Germany for the 2010 World Cup.

The report reflects the sad state of affairs as far as marketing Cape Town and the Western Cape province goes, and was highlighted in aWhaleTales blog report and letter to the Cape Argus about the lack of marketing of Cape Town just a few days ago.  No response was received to it from Cape Town Tourism, Cape Town Routes Unlimited or any other tourism players.

According to the report, the 2010 marketing campaign for Germany has been cancelled by Cape Town Routes Unlimited,  and it is likely that further 2010 marketing campaigns for the city and the province may be cancelled due to a lack of marketing funds.

The report states that the head of the parliamentary committee on trade and international relations said that the provincial government and the city should “‘urgently’ rethink their funding model and help where necessary”.   The City’s response, via its Deputy Mayor Ian Neilson, is that Cape Town Tourism is doing the job, and that any change in the funding can only be considered in 6 months from now.   He also referred to the collaboration that is meant to be happening between Cape Town Routes Unlimited and Cape Town Tourism, following a meeting of the CEO’s of these two organisations, and their respective political heads Alan Winde and Felicity Purchase.  The nature of the collaboration has not yet been communicated to the industry, despite the meeting having taken place more than 10 weeks ago. 

The Cape Argus report states that at the Cape Town Tourism/Cape Town Routes Unlimited meeting, Cape Town Routes Unlimited had been told to find alternative funding, to fill the R 24 million void created by the withdrawal of the City of Cape Town’s funding.  

Both tourism bodies are doing little or no marketing, in a month which sees forward bookings looking most dismal, with a projected occupancy to be the lowest this year, and worse than any September before.

Cape Town Tourism sent out a media release to co-incide with Tourism Month, which started on 1 September, but seems full of empty rhetoric.   “During Tourism Month, Live It, Love It, LOUDER!is focused on celebrating “My Cape Town” - an exploration of the different corners of our hometown and a window into the lives of the people who live there. Capetonians will also learn more about their hometown in readiness for the role as world cup hosts.  To showcase this personal perspective of Cape Town, the “My Cape Town” Flickr Pic competition is being launched on 1 September with the theme “This is the Cape Town I Want the World to see”.  Enthusiastic photographers and proud citizens can submit their entries via www.capetown.travel/worldtourismmonthand stand a chance of winning a cash prize of R15 000″ says Cape Town Tourism’s Mariette du Toit-Helmbold. 

Cape Town Routes Unlimited got some Capetonians together, and taught them how to do the Diski-dance, in preparation for the 2010 World Cup.   Cape Town Routes Unlimited has also just launched a “Beyond the 90 Minutes” campaign, to encourage soccer fans to visit other parts of the Western Cape when they come to Cape Town to see the matches.   Six themed itineraries, including Adrenaline Adventure; Gourmet; Culture and Heritage; Natural Beauty;  Body, Mind & Spirit; and Cosmopolitan Vibe have been presented on the www.tourismcapetown.co.za website.   Locals and the media are also addressed on the ‘Beyond the 90 Minutes’ section of the website, and special accommodation offers are promoted for this month already.

Cape Town Routes Unlimited has also launched a World Cup 2010 Soccer Fan competition.  “South African soccer fans are known for their outrageous, fun and colourfully decorated costumes and accessories worn at matches to show support for their favourite team. Soccer fans from other countries attending the 2010 FIFA World Cup™ in South Africa are also expected to come all decked out in support of their national side.  CTRU is looking for the liveliest, most inspired and colourful pictures of fans at soccer matches from around the world. All they have to do is post their best photo on the ‘Beyond the 90 Minutes’ Flickr group at www.flickr.com before 31 October 2009. Not only do they stand the chance to win a Cape Town and Western Cape 2010 travel package worth R50 000 including accommodation and meals, but also a special, limited edition makarapa (a decorated miners’ helmet unique to South African soccer fans and fast becoming a ‘must-have’ fashion item) of their very own”  says the Cape Town Routes Unlimited media release.

Whale Cottage Portfolio www.whalecottage.com