Whale Cottage Portfolio Blog

The extreme heat in Cape Town and the Western Cape in the past week will have made one aware that climate change can affect our region too.  Record-high temperatures, touching 40C in Cape Town and 48C in Franschhoek, have affected every citizen.

The City of Cape Town’s head of environmental policy, Gregg Oelofse, has warned Capetonians that climate change will make itself felt locally, as the average temperature increase is estimated at 2-3C, “placing our coastal vulnerability as a very real concern that holds multiple implications for our city.  The risks associated with sea-level rise events can no longer be viewed as something to be addressed into the future, but must be considered as a priority in our immediate planning and management”, reports The Times.

The City’s report identifies Blouberg, Camps Bay, Kommetjie, Glencairn and the Strand to be “highly vulnerable” to a rise in sea level due to climate change.

Oelofse predicts that the Western Cape is destined to become drier, and that rain is less likely to be over a longer period of time and gentle, but shorter and more intense storms will bring the rain.   “The bigger the storm, the higher the wind velocity, and the higher the ocean swell that the wind pushes up against the coastline”.

The City is evaluating what it needs to do to protect the identified coastal areas against the rising sea levels.  It manages 307 km of coastline.

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

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

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

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

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

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

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

The tourism industry in Cape Town will be disappointed that none of the 32 World Cup teams have chosen a base camp in or near Cape Town.   The base camp location has an important attraction for fans, who want to stay in the same towns and cities as their home team. 

Despite a deadline of the end of last month, FIFA has given the teams one more week to finalise their choice.  Six teams have not yet announced their final base camp choice.

The Western Cape has 2 teams (France and Denmark) staying in Knysna at Pezula and Simola, respectively, and Japan will be based in George at the Fancourt Hotel. 

Gauteng has the most teams to date, who chose the province for the altitude for their practice sessions, the top quality sport facilities and top quality accommodation : The Netherlands, South Africa, Portugal, Serbia, New Zealand, Slovenia, Brazil, Australia, Honduras, Switzerland, North Korea, and Mexico. 

Pretoria has attracted USA, Germany, Italy, Slovakia, and Argentina.   KwaZulu-Natal has secured Algeria, Ivory Coast, Greece, and Paraguay.   Uruguay is staying in Kimberley.   Ghana  is staying in White River. England and South Korea are staying in Rustenberg.  Chile is staying in Mapumalanga.   Spain has not chosen between Rustenburg and Potchefstroom yet.

Many municipalities spent big money trying to encourage teams to set up base camps in their towns.  Mossel Bay was sure that it had bagged Paraguay, and both Val du Vie and Pearl Valley outside Franschhoek were rumoured to have signed up a team.  The Sunday Times reports that the Mossel Bay municipality spent R 200 million on its bid, and had launched an extensive Spanish language campaign for tourism players in the town.   Bloemfontein, Port Elizabeth and East London also did not attract any base camps.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“Cape Town tourism plummets” was the dramatic headline of EyeWitnessNews yesterday, reflecting the decline in tourism this season so far, particularly in the Western Cape interior.

The report quotes Cape Town Routes Unlimited, which it mistakenly refers to as “Cape Town’s official tourism marketing body”, as admitting that “the Mother City is experiencing a dismal year, with the number of visitors significantly lower than in previous years.”   According to the report, Cape Town Routes Unlimited CEO Calvyn Gilfellan has visited Western Cape tourism districts, and received feedback of varying tourism numbers, especially along the Garden Route.

The Whale Cottage Portfolio can also confirm this scenario, with November being a poor month in Franschhoek (32 % occupancy - normally this month is close to fully booked), in Hermanus (66 % occupancy - usually close to fully booked), and in Plettenberg Bay (28 %).   Only Whale Cottage Camps Bay in Cape Town held its own with an occupancy in November of 88%, yet down from 96 % last year.

The festive season period is almost fully booked at the Whale Cottages in Camps Bay and in Plettenberg Bay, the cricket match in Cape Town in early January being a big boost for Camps Bay bookings.   Hermanus is seeing the poorest bookings over the festive season, despite the area having a new Destination Marketing Organisation, but which is just not bringing in the bookings.

South African Tourism’s Global Manager: Product, Hanneli Slabber, states in her Christmas message that this “..has been one of the industry’s toughest years”.  She encourages emphasis on Service Excellence, in that it is the little touches that makes visitors return to a destination and a tourism product.  “What our visitors want in 2010 is something their money can’t buy.  It’s called Service Excellence - and it comes from being professional at what you do, competent in how you do it, and treating people with genuine warmth and respect when you do it” she writes.

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

Of all the provinces, the Western Cape has the largest availability of rooms for the 2010 World Cup, according to the Minister of Tourism, Marthinus van Schalkwyk, when he addressed the media about the new tourism portal (see blog post dated 12 December 2009), reports the Cape Argus.

Minister van Schalkwyk stated that the Cape has 62 000 rooms, of the country total of 202 000 rooms, just less than one-third.   Gauteng has 44 000 and Kwa-Zulu Natal has 31000 rooms.   Given that 450 000 foreign visitors are expected to come to South Africa in June and July 2010, and assuming that 2 persons will share a room, the country should have enough accommodation. (What the Minister has not incorporated into his calculations is that South Africans are the largest purchasers of tickets, and may travel from one city to another to view a match, and may also need accommodation).

The estimation of the number of rooms comes from the National Accommodation Database, which was established via calls made to all known accommodation establishments, and may be understated, as many accommodation owners may have withheld information from the callers involved in the database verification, as they called at non-business hours, such as on Sunday afternoons, and at 20h00 in the evening.

The Minister quoted the following statistics: there are close to 19 000 accommodation establishments in the country, of which 40 % are graded by the Tourism Grading Council.   Just more than half of the 202 000 rooms are graded.   Each host city has a minimum of  7 500 accommodation establishments, within a 50 km radius of a World Cup stadium.   There are just more than 100 000 rooms in host cities.

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

The Department of Tourism has awarded 29 South African beaches blue flag status, up from 19 beaches last year, reports Southern African Tourism Update. 

Six of the beaches are in Cape Town (Camps Bay, Big Bay in Blouberg, Muizenberg, Clifton 5th beach, Mnandi beach, and Strandfontein) and sixteen beaches are in other areas of the Western Cape, meaning that more than half of the blue flag beaches are in the Western Cape.

Blue flag beaches in the rest of the Western Cape are MacDougall’s Bay in Port Nolloth, Bikini beach in Gordon’s Bay, Hawston and Grotto beaches in Hermanus, Yzerfontein beach, Kleinmond beach, Lappiesbaai beach in Stilbaai, Santos beach in Mossel Bay, Robberg beach in Plettenberg Bay and Dolphin beach in Jeffrey’s Bay.

Municipalities have seen the benefits to tourism in their areas of being awarded blue-flag beach status,  ensuring that the beaches in their areas are clean, safe and well-managed.   South Africa is one of 38 countries participating in the Blue Flag programme.

The full list of South African Blue Flag beaches is as follows:

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

Instead of competing against each other, Cape Town Tourism and Cape Town Routes Unlimited will be working together in marketing Cape Town from the end of October, says Southern African Tourism Update.

Discussions are underway as to the co-funding of marketing both Cape Town and the Western Cape at international marketing shows, for business tourism, for city events, for e-business, and the V & A Tourism Gateway.  In addition, the respective roles of the two bodies for marketing the city and the region are being discussed. 

Commenting on the discussions, Cape Town Routes Unlimited CEO Calvyn Gilfellan called for a “lasting institutional framework that would be protected from political interference”.  

The City of Cape Town is already funding Cape Town Routes Unlimited on a project-by-project basis.   In June the two parties met with the respective city and provincial politicians, to discuss the prevention of marketing duplication and fragmentation, following from the City of Cape Town withdrawing its R 25 million funding from Cape Town Routes Unlimited, and allocating the responsibility for marketing the City to Cape Town Tourism.   This resulted in both bodies marketing Cape Town locally and especially internationally.   Previously the city and the province were controlled by two different political parties, but now that the DA runs both city and province, a tourism marketing alignment can be created.

It is surprising how poor both marketing bodies are in keeping tourism players up to date, especially Cape Town Tourism, which has a membership body it could easily and regularly e-mail.

Whale Cottage Portfolio: www.whalecottage.com

Wine marketing will not be the same again if the planned provisions in the proposed amendment to the Western Cape Liquor Act and Regulations are introduced.   However, some changes are positive.

Wine.co.za reported about the implications the “stern regulations” for wine estates in South Africa, as well as for persons selling wine, or just collecting it.

The proposed regulations give municipalities a greater say in wine marketing, with wine licence applications costing R 1 000 for the application alone, R 2 000 for the granting of a wine licence, and R 4 000 per annum for the renewal fee.

The new Act, according to Danie Cronje, of Cluver Markotter Incorporated, and a speaker at the recent South African Wine Tourism Conference, demands that wine estates must have a licence to produce wine - previously they needed it to sell wines.    The new Act only exempts garagistes who make wine for themselves and do not plan to resell it, from the licence.   Producers who use other producers’ wine cellars will also have to apply for a licence, as will wine estates who sell their stock to existing licence holders, such as hotels, restaurants and liquor stores, currently being exempt from a licence requirement.  

The article refers to the Act allowing wine estates to now charge for winetastings, but this has been done for some time now.   The winetasting times are subject to the  municipal regulations.  So, for example, it is proposed that liquor stores, wine shops and supermarkets be allowed to open from 9h00 - 18h00, while restaurants, hotels, clubs and pubs can trade from 11h00 - 2h00, if they are not in a residential area, where the trading time is reduced until 21h00.   

Licence applications will also have to be advertised in local newspapers, displayed on the premises, and submitted to the municipalities and ward councillors, the Act proposes. 

Wine estates may not sell more than 30 litres of wine, 10 litres of spirits, or 100 litres of beer per day to a person who does not have a liquor licence.   It would also be an offence to have more than this quantity of liquor in one’s possession, even in one’s home, a major knock for wine collectors, who would be forced to get a liquor licence as well.  

One good aspect of the proposed legislation change is that supermarkets may sell wine up to 16,5 % alcohol content, compared to 14 %, once the legislation is passed.   Also, wine sales on Sundays in supermarkets could also be allowed, subject to municipal approval thereof as to the trading days and hours. 

Another positive aspect of the Act is that open bottles of wine may not be transported, and one may not drink alcohol and drive, with heavy fines to be implemented.

Cronje has recommended to the wine industry that liquor licence applications should be done before the new Liquor Act is legislated, because it will become a more cumbersome and expensive process once the Act is legislated.

Whale Cottage Portfolio: www.whalecottage.com

A report in the Cape Argustwo 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