This Tourism Week 28 May 2009
Climb Kili With Me!
We start our trek up Kilimanjaro on the 27th of September - the itinerary’s on the Ntaba Tours site - and when we’re done, we’ll be rewarding ourselves with visits to the Serengeti and Zanzibar…
If you’re too lazy to walk, follow my journey to Africa’s highest peak on the Ntaba Tours Fanzone on Facebook.
But don’t be lazy - come with.
2010 - Good Legacy / Bad Legacy
My mind keeps drifting back to the question that Jacques Maritz asked during the Global Media Face-off at this year’s Indaba. You’ll recall I wrote about it in the Indaba Daily News on Day 4 (‘If The Cynics Agree, Who Are You To Disagree?’) - and that I said that more than 90% of the cynics (um, sorry - media people) in the room believed we’d have a successful World Cup.
What I didn’t mention was that only about 60% of ‘em thought the World Cup would leave a legacy…
As someone who’s working hard on legacy projects for Mossel Bay (find out more on Mossel Bay Tourism’s 2010 page), this was an answer that intrigued me.
And then two things happened - I managed to corner SATSA president Mike Speed, and I asked him for SATSA’s views on the subject; and Dorienne Levitt of www.africanstay.co.za and SATSA’s CEO, Michael Tatalias, copied me in on some interesting correspondence.
They made me realise that we’re at the point where we have a choice to make.
Mike Speed (watch the interview below) said, “I’m not sure if you can run an event the size of 2010 without having some sort of legacy leftover, unless you’re in a Europe-type situation where you can hire in from countries around you and then return back.
“When you’re long-haul, I think it’s a bit more difficult to do that.”
(… Hmm. I never thought of that…). And that was all very positive, as I’m sure the legacy will certainly be.
But it seems there could be a negative legacy, too, and the tourism industry might be creating it.
Here’s what Dorienne had to say:
“Sirs.
“I hope you will bring my email to the attention of the Directors general, MECs and the Minister of Tourism if you agree with me that something is wrong when quoting for the 2010 World Cup.
“I’ve received numerous enquiries for accommodation and tours during and around the event. The difficulty is trying to find packages that are honest. Some of my enquiries have been passed on to a Cape Town based tour operator with whom I have a very good association. Like me, she has received quotes for accommodation that would normally be R3,000 per night shooting to R7,000.
“For years I have used three driver-guides whose rates have been fair and now suddenly I am told to transfer two pax (I HATE THAT WORD! - M) from OR Tambo to Sandton will be R1,500.
“The same thing is happening in Durban and Port Elizabeth… outrageous transfers and guided tours, excessive tariffs for accommodation and no doubt we’re going to see this with pubs and restaurants, too.
“My suggestion is that you ask the industry to behave ethically and yes, make a profit but within reason. It’s ugly to cheat and travellers aren’t stupid for long…
“I feel very strongly that you take some action so that we survive 2011 and beyond.”
… and Michael replied:
“Hi Dorienne
“This is one of the problems that we face – some saying price gouging exists; others saying that MATCH is bad and that we can rely on people to be honest and not over-charge.
“My experience is that over-charging is starting to happen. However, hopefully the market balance that matches demand and supply will balance out the ATTEMPTED high price quotes. We will only really find out the prices charged after July 2010. No-one has yet paid the ridiculously high prices. But the risk is that our destination gets a bad long term name.
“My view from is that anyone who doesn’t understand the 30% commission structure is extremely naïve and does not understand the [travel] channel. In addition, I find the prices from MATCH quite fair.
“Dorienne, over to you.”
… and then in a later mail, wrote:
“Hi Dorienne
“I agree – Price Gouging is an ugly thing. Very bad for our destination. Very bad indeed for trying to build tourism out to 2020.
“2010 from a tourism perspective is all about creating a positive image in the international mind – not about the money to be made in 30 days. In truth, we are only likely to get 350 – 450,000 fly-in, high-spending guests. If we do 2010 right (no disasters, friendly citizens, lots of fun, reasonable prices), we could up our yearly fly-in arrivals from 3 to 5 or 7 million. Far more significant than milking 450,000 soccer fans. Rip them off and we risk having a decreasing set of arrival figures for the next few years.
“However, what is it that you would like anyone to do? Legislate, or nationalise the tourism industry? Not likely, nor good.
“The only way is to publish the topic.
“The significant accommodation players have already put their rooms into the MATCH pool (for exactly the reasons stated above – they can see the big picture, and see that getting the event is more important than trying to rake in exorbitant profits for very short period), and the rates quoted by MATCH are very reasonable: by design – to keep the costs down, and the customers happy.
“Might I suggest a few options that you have, as some of the power for sorting this out lies with you (and other operators like you):
• Look for accommodation in the periphery (outside of where you would normally go);
• Transport is going to be a problem, so bat carefully with that one;
• Consider buying accommodation from the MATCH pool of rooms (they might consider selling some of their periphery room stock on a commercial basis?).
“ULTIMATELY – your strongest means of attack is to NOT BOOK.
“High prices occur as a result of supply and demand. Supply is currently short, so demand is pushing prices higher. However, if you honestly put out the rates to your overseas partners, and they respond by saying “No Thanks”, then forward those responses to us and the press for publication. Maybe then the prices will drop as demand starts to drop.
“In a Free Market system, that is your only real weapon.
“I am sorry if this isn’t exactly what you want to hear, but at the moment there is very little that we can use legal muscle to achieve. But please keep in contact, and keep feeding us the ‘latest horrific rates’ that people are trying to charge.”
Indeed - we have the option of taking the high road, or wallowing in the low. As South Africans - and the South African Tourism Industry - we have the choice.
Personally, I’d like to be here in 30 years time (I’ll be 80 and a half then, and attending my 42nd Indaba…), so I know which road I’d like to see us take in 2010…
Footnote: Why Join SATSA?
I made a point of asking Mike Speed why tourism people should join SATSA ahead of 2010, and this is what he said: “Well, I don’t believe you should join SATSA for 2010 - I think you should join SATSA for many other reasons, of which 2010 is most probably the smallest one.
“SATSA stands for creditability in the tourism industry, it stands for an association that has a very high entrance criteria, and if you’re a SATSA member it generally seems to say that you apply to a code of conduct, there’s recourse against you, there’s a bonding scheme in place, we have our tourism safety initiative…”
And there you have it - at www.satsa.com
Join the Indaba Daily News Group on Facebook - go away on holiday (it’s in the economy’s best interests)… and have a GREAT Tourism Week!
Mike Speed - SATSA CEO









2 users commented in " 2010 - Good Legacy / Bad Legacy "
Follow-up comment rss or Leave a TrackbackHi Martin,
Thank you very much for you discussion about the rates fro 2010 and FIFA.
As quite a small tour operator I was wondering how I could get involved in the Worldcup as everything is almost controlled by FIFA MATCH. Until… a wonderful client just landed on my doorstep.
This client went to the Soccer cup in Europe and was very disappointed by the service provided by MATCH. They’re determined that they don’t want to deal with MATCH which I thought of course was very exciting. And yes, I also have the experience that accommodation is overcharging but we started negotiating. My client wanted exclusive 5 star accommodation for their groups, preferably in the wine lands. So I managed to secure a 15 bedroom 5 star wine estate for 15 days. The room prices started at 7.500 (!) per night B & B. We got it down to 4.800 per room, B&B, + a 4 course dinner for 100 people in their TOP class restaurant which I find very reasonable. They will also have exclusive use of steam room and relax room in the Spa.
My client has now paid 10% and so far so good. I’m very excited and will just focus on making this the best possible experience for my client who will bring 75 – 100 of his best clients to watch the World cup. There will be 3 groups of about 25 – 30 people that each are invited to come for 5 days. Bus is also secured after a loooooong search. The only thing that’s not clear yet to me is the domestic flights. How that will be organized. Will people still be able to get back to Cape Town after a match in Joburg that finishes at 22h30 at night?
Just thought I’d share this with you
Have a great day!
Martin,
I read below article with pleasure and conviction. I have been saying the same about 2010, we are all ambassadors of the country and should leave a positive lasting impression to the people who choose to spend their time here and in turn can become ambassadors again for SA! And like you said, they definitely wont if we overcharge and rip them off!
In line with that at Kololo we have chosen the approach of only increasing our rates with 8.3% for the Worldcup (and 2010). We choose to have a lodge full of happy guests with a good value for money experience, so they can spread the word and come back!
Thank you, I’ll make sure to pass this email on!
Emlyn Bul Sales Manager - Kololo Game Reserve
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