One of the most useful resources on the web is eTurboNews. It’s run out of Hawaii, is published by Juergen Thomas Steinmetz, and this week informed me that, “The Ministry of Tourism of the Republic of South Africa, with the support of UNWTO, will host a Tourism Ministers’ Meeting (T20) under the theme ‘Travel and tourism: stimuli for the global economy’ from February 22-24, 2010 in Johannesburg.”
(Which is great news. World news, in fact, although I haven’t seen anything about it in either my in box or in the local media. So please explain why it took a Hawaiian company to tell me - a South African tourism journalist - what’s happening in the tourism ministry in my own country?).
The story got me thinking, and so I did a bit of Googling, and found a Hospitality.net article (New UNWTO Roadmap for Recovery for Tourism and Travel – Call to World Leaders to include Sector in Economic, Stimulus Actions); watched an edited extract of the speeches made by some of the ministers at the eighteenth session of the World Tourism Organisation’s General Assembly (which was held in Astana, Kazakhstan, from the 5th to the 8th of October last year); and downloaded the UNWTO’s ‘Roadmap For Recovery - Tourism & Travel: A Primary Vehicle For Job Creation And Economic Recovery’ (after the reading of which I needed a good holiday…).
Despite the coming of the World Cup later this year, many of my clients are bleeding (full disclosure for purposes of self promotion: I’m a tourism consultant as well as a tourism journalist), and South Africa, I would have thought, needs to seriously consider its position as a tourism destination.
The Roadmap points out that “The global economy is undergoing its most severe recession of the post second world war period with damaging consequences for millions of people, businesses and jobs worldwide,” and that “Tourism, though resisting better than other sectors has not been immune to the deteriorating economic situation. After a very sound start, with worldwide growth in international arrivals averaging nearly 6% in the first six months of 2008, demand fell harshly – by 1% between July and December 2008. As expected, this trend has intensified in 2009 – international tourist arrivals fell by an estimated 8/9% during the first six months of this year” (2009).
We all know that Africa has fared better than most in terms of its international tourist arrivals in these difficult times (“With the exception of Africa, all regions recorded declines in arrivals. Europe and the Middle East have been particularly affected. In many destinations, the performance of the domestic market, though better than that of the inbound markets, has not been sufficient to compensate for the falling international demand.”).
But, because our arrivals represent only a tiny percentage of international travellers, to be satisfied with our results is to be dangerously complacent.
Especially for that portion of the South African tourism industry that relies so heavily on overseas arrivals.
On January the 25th of this year, eTurboNews informed us that South Africa’s tourist arrivals were “up by 4.6%.”
“The total number of travellers who visited South Africa through all its ports of entry during October 2009 lifted 4.6% year-on-year (y/y) to 2.375 million from the 10.4% y/y increase in September, according to Statistics South Africa (Stats SA) data released today.
“A month-on-month (m/m) increase of 3.1% was seen.
“The travellers through the ports were made up of 722,616 South African residents and 1,652,673 foreign travellers.
“In October 2009, a high proportion of overseas tourists arrived in the country by air - 164,663 (86,7%) - compared with those who came in by road 24,264 (12,8%). This is in contrast to tourists from SADC countries who came into South Africa predominantly by road - 395,247 (93,1%) - compared with 29,102 (6.9%) coming by air. A relatively high proportion - 12,217 (85.3%) - of tourists from ‘other’ African countries flew into the country but 2,066 (14.4%) used road transport.”
And certainly this is good news. But it isn’t enough.
Being a South African today sometimes feels a little like I expect a climber must feel when he knows his anchors are giving way: there are things you can hang on to, and you can try to dig into the ice with your fingernails, but you are slipping. Inevitably. And unless you’re able to reverse the trend, you’re going to end up at the bottom of the mountain in a messy, painful heap.
We had the high ground some time ago (remember the Democracy Dividend?) - but we wasted our opportunities, and, thanks both to our misbehaviour and to the worldwide recession, the time has come for the tourism industry to examine its anchors and reconsider its options.
There’s not much that we as an industry can do in the short term about things like crime, service delivery (or the lack of it), the standard of our education, or our public health care (or the lack of it) - but we can look inwards, and we can put our own house in order.
So today I’d like to propose a checklist of the things that South Africa’s tourism industry can - or should - do to help itself to recovery. And I hope you’ll comment below and add your ideas to the mix:
- Get back to the basics. Market South Africa to South Africans once more - because, as we’ve always been taught, for a tourism economy to succeed, it should get 70% of its arrivals from its domestic market.
- Package South African products for South Africans. In a country where R10,000 is considered a good monthly salary, who wants to spend R5,000 a head on a two day ‘special’ at your over priced lodge?
- Remember this: the top end of the market is just that. The end. Just a part of it. A teensy percent of it. Keep developing - and developing - more products for the mass of beer-drinking, soccer-watching, caravan loving, Braaivleis, Rugby, Sunny Skies and Chevrolet man and woman in the street. It won’t make you rich every time a visitor walks through your doors, but it will open thousands of opportunities in the long term.
- Get real when it comes to pricing. The overseas buyer may be spending pounds, euros or dollars, but he or she isn’t dumb, and knows what a rand will buy in South Africa. Outlaw statements like “That’s nothing in dollars!” And don’t even think about instituting two-tier pricing (you know, where you charge locals one rate, and foreigners another, higher one. Once people know they’ve been ripped off once, they don’t ever come back).
- Stop demonising kids. As embarrassing as it may be, most families own at least one or two of them. So accept them in your guest house, and their families may be tempted to come along, too. (Hey! It’s an income stream…)
- Simplify things and quote honestly. Include all taxes and hidden costs in your pricing.
- Rein in ACSA. It’s a public utility, for goodness sake, and should not be operating as a profit-hungry corporation.
- Go green. (“It’s the green economy, Stupid.”) And that includes doing things like reviving intercity train travel, creating green hotels and B&Bs, and developing ever more green products like walking-, mountain biking- and horse riding trails (And the green economy is going to start making money, too. Soon. If Richard Branson is investing in it - and he’s investing heavily - we should all invest in it. As Scott Prudham said in his paper Pimping climate change: Richard Branson, global warming, and the performance of green capitalism, “On 21 September 2006 UK über-entrepreneur and Virgin Group Chairman Richard Branson pledged approximately £1.6 billion, the equivalent of all the profits from Virgin Atlantic and Virgin Trains for the next ten years, to fighting climate change. Since then, Branson has restated his commitment to action on global warming…”).
- Drop the idea of the human zoo (you know my feelings about most township tours) and find real and honest ways of interpreting our diverse and incredible cultures. And make the products that emerge attractive to South Africans first, and foreigners will catch on soon enough.
- Forget the World Cup. It’s not, as Danny Jordaan has said on more than one occasion, a destination. It’s a milestone. Come the 12th of July, the FIFA circus will be striking its tent, packing its caravans, and heading off into the African sunset, never to be seen again. And, if we’re not careful, we’ll be left to pick up the litter and clean up the elephant poo…
- Make our legislators and officials (and especially those municipal officials who seem to be blissfully unaware that their municipalities get heaps of rates from tourism) aware that tourism contributes something to our economy. Just a bit… a bit more than mining, in fact…
- Lobby for tax breaks for new tourism products. (That’s a no brainer). And..
- Make tourism fun again and remember that we in tourism find ourselves in the entertainment industry. First and always.
Now - go away on holiday. It’s in the economy’s best interests. (But before you do, remember to add your piece to our list of ‘Things To Remember To Do When Rethinking South Africa’s Tourism Industry’ in the comments box below).
And in the meantime Have a Great Tourism Week!









11 users commented in " Time To Re-think South Africa’s Tourism Industry "
Follow-up comment rss or Leave a TrackbackYou do make some very valid points Martin. Your last point really caught my eye. Tourism used to be a hell of a lot more fun when I got back into the industry 12 years ago. Now it’s more like a slog. We’re promoting this wonderdul country of ours. Surely that should be fun?????? Sure we’ve had a tough year and a half but 2004 was no different and we were still enjoying it.
To add to your list, I wish that operators both locally and internationally would punt products and destinations that are so much part of this country but because they are not “mainstream” they get ignored or are considered a “difficult sell”. Come on guys, there’s so much more to this country than Cape Town, the Garden Route and southern Kruger.
Hey Richard - thanks for replying. I agree with you - even in the Garden Route, the out of the way places suffer from being a difficult sell. That’s why I enjoy the whl.travel concept so much: it’s a company that makes smmes accessible to buyers over the web, while at the same time not forgetting the big guys. Check them out at http://www.garden-route-tours.travel
If some of our local game lodges would become sensible in their pricing they would get more local content, but they remain at 30% capacity waiting for pounds and dollars.
The oke’s in Cape Town must reilly wake up they are surely killing the industry, we have numerous comlpaints from overseas tourists about their pricing, they know they are being ripped off.
Sorry….I don’t agree with this idea. If you cant afford a Rolls Royce, don’t expect to be able buy it or for Rolls Royce to drop its price into your price range. Stick to a Toyota…there is a full price range of product out there to purchase aimed at different markets. The ONLY area that concerns me is that SA TAX PAYERS assets like lodges in SAN Parks, should cost SA Tax payers less than non SA taxpayers. It is our asset.
As for two prices on other products such as restaurant Menus, this is a total rip off to the tourists, and will scare them off.
I am pleased to see a lot of the hotels are starint to send out email with corrected prices during the world cup to say ’sorry….this was a rip off, we are sticking to our normal high season rates!” Well done to them!
South Africa the cost to tourist is disgusting Take Cape Point R75 per person R300 for 4 adults SANS is a rip off on Sunday we were shocked to see the price(please don`t talk to me about the wild card) my aprents are from the UK so they could`nt get in on my wild card. And to the African Gentleman with his wife and two children in the car I`m very sorry that I could not afford to pay for your entranc into the park(i`m a pesioner on a fixed budget)and had to forgo a meal at the park just to afford to get in plus all the animals were on strik.As for Kruger park over Christmas the staff wer using the facilities and paying guest could not get near by these guest were from germany and quote”We don`t know how Soth Africans can live on the sary they get with things so expensive”BUT WE ARE FREE.
Hi Martin,
A seriously interseting read and I must say that it is high time that we make more fun of the “lekker” industry we are in . I started my Hotel career at The Knysna Protea in the late 80’s and remember you very well ….less gray hair of course ha! ha!
We seemed to have less then but boy our industry was full of commaradrie and heaps of fun. Fully agree that we need to make our offering more affordable for South Africans. A bum in a bed at R350.00 per night is better than an empty bed. We only get an opportunity once and this 2010 is no practice run we only come by this way once in a lifetime and then it’s gone.
We need to make our country affordable for everyone.
sometimes I find reading martins rantings a touch on the heavy side but this one here rang all the bells for me. Lets face it this tourism business is one hell of a good lifestyle even if most of us are never going to get rich and if we are in it for the lifestyle why rip it to bits because there is a world cup. I would go so far as to say high season low season rates are a rip off. Its the same argument just maybe the market has accepted this. But a rip off in my eyes is still a rip off
Martin - you have a wonderful way of saying things that most people would not be willing to put down on paper - I agree with you 100%. Repeat guests and word of mouth re-conmendations are priceless - industry players need to be mindful of this fact.
Look after your domestic market - they are the bread and butter of your business …remember they live in SA 24/7 - international visitors come and go
Martin-
You seem to have some of the better insights into travel to South Africa of any person I have come across in your fair country. I started my business using South Africa as my primary destination, and while I have since expanded into other parts of southern Africa and East Africa, South Africa remains my favorite destinations for clients, especially first time entrants into Africa.
Your points about price escalation are poignant. South Africa should also try to be a provider of product that comes in at a cost as priced in Rand versus $US. As you mention, deciding to jump on the price structure of other Africa countries costing in $US, I believe, too, is a mistake. I can see where the temptations lies but I believe the downside risk is substantial.
In my opinion, for the US market, South Africa is the best sell of any country on the continent. With a floating currency and purchasing power of the dollar, the initial interest is obvious, but this fact is only the beginning. The first world standard of living, infrastructure, natural variety, weather and people of South Africa offer a unique experience to the American coming for the first time. Americans, as you well know, are not well versed in geography or history, and embarrassingly most cannot differentiate between Nigeria and South Africa until they arrive. This is a poor fact of our countrymen but one that needs to be understood by the South Africa tourism leaders. South Africa could really take advantage of this truism. Why? Because South Africa could really mop up the travel business by marketing the difference between it and the rest of southern and East Africa. How? They should be running advertisements touting the high standard of living, pictures of Cape Town, the Garden Route, Winelands, infrastructure, flower season, battlefields, etc. Yes, most every American comes to Africa to see the animals first and foremost but they are awestruck by the variety of South Africa and the ease with which to travel. For instance, South Africa should not be marketing itself by showing pictures of tribal dances and the like. Americans see those type pictures/photos all the time and recognize them as African. It is obvious and does not differentiate South Africa. South Africa needs to advertise everything else that the rest of Africa does not have. That disparity is a big gap.
If I can get my clients on the plane to South Africa, my job is done because their expectations are low and they are then blown away by, yes, the animals, but to a larger extent everything else I have listed. Americans may talk about being able to “rough it” on a vacation but their definition of roughing it and yours are miles apart. Americans also have short attention spans and getting them down to the Garden Route or through Hermanus or into the Winelands and Cape Town or the North Coast during flower season is when they come back completely teeming with chatter. These type experiences they do not expect. The self drive option should be highly touted for South Africa. The tourist really cannot (and I am more reluctant to suggest) a self drive through other parts of Africa.
I’d like to see South Africa tourism start advertising itself as a first world location with all the wilds Africa can offer. No other country in Africa can market themselves this way and it sells in the US. It sells in a big way when I can get in front of my first time visitors and lay out this story. South Africa should be targeting the American audience (or for that matter, elsewhere) as the destination of choice for first time African travelers. The upside potential for South Africa is large here in the US. I believe the US only sends about 200,000 Americans to South Africa a year, the same number as Holland, yet we have 20x the population (about 300 million to 15 million). Americans think East Africa as a knee jerk reaction when considering travel to see the animals of Africa. Their thought is due to a lack of understanding. Running TV and advert time here in the US could change that if done the right way. It also need not be expensive. The current advertising efforts are the same old message.
My apologies for the length here but I do believe that South Africa tourism is missing the mark. I realize you are just a private industry insider, like me, but your newsletters have good information and a good perspective.
Best Regards,
Richard Pace
Southern Sky Adventures
1893 Wycliff Road NW
Atlanta, GA 30309 USA
rpace@southernskyadventures.com
http://www.southernskyadventures.com
770.324.0068 phone
501.633.3009 fax
Blog: http://www.safarijourneys.com
Specializing in guided and self-drive trips through southern and East Africa
Great article.
I cannot agree more.
A 2 tier system is absolutely ridicuolous in 2010. I understood it whan I first came in 1989 because back then the rand was too low, but now with the inflation going on theres no need.
ZA should be the gateway to continental Africa and not discourage people form continue exploring the continent. There are enough bad things going on anyway.
Hi All,
Tourism Update Online has covered this topic twice. Have a read:
http://www.tourismupdate.co.za/NewsDetails.aspx?newsId=21111
http://www.tourismupdate.co.za/NewsDetails.aspx?newsId=20803
Regards,
Kate Els
Deputy Editor, Tourism Update Online
Leave A Reply