Cape Town Tourism Industry Forums

WELCOME
Cape Town Tourism Industry Presentation:
The marketing of Cape Town
August 2011

INTRODUCTIONS

AGENDA AIMS THE SITUATION AND LEARNINGS THE PROPOSED PLAN DISCUSSION

AGENDA
An open forum discussion of a proposed intervention strategy to resolve some of the issues affecting the industry
We hope to:
receive feedback
obtain views

BACKGROUND

FORMAT

THE WORLD CONDITION WTO SAYS OECD SAYS… International Tourism: First results of 2011 confirm consolidation of growth

THE WORLD CONDITION

THE WORLD CONDITION The urbanisation and the rise of the urban tourist

THE SOUTH AFRICAN CONDITION Total visitor arrivals Indexed visitor arrivals

THE SOUTH AFRICAN CONDITION

LEARNINGS FROM AROUND THE WORLD

LEARNINGS: GETTING IT WRONG

THE CONSUMER: What the hell just happened? Global Financial crisis

THE CONSUMER: So what do they want now!?

THE CONSUMER: So what do they want now!? Value (?) Simplicity (?) Experiences (?) More to see and do at no cost !

THE CONSUMER: So what do they want now!?

THE CONSUMER: how they see cities

FORMAT

THE CAPE TOWN VISITOR INDUSTRY
Global Financial Crisis (GFC)
Reduced demand (?)
Changed consumer condition
Polarisation of consumer sentiment
From 2007:
-16% decline in market share ( 9.4% - 7.9%)
6 years of 0 or – growth
zero job creation
effective loss of +-18000 job opportunities
118 businesses closed (last 24 months)

THE SCENARIOS (R3.8bn) (R11.1bn) The real opportunity cost: 18,300

OUT OF TURMOIL COMES OPPORTUNITY

OUR MARKETS

CAPE TOWN’S (International) MARKETS Country Visitors % Contribution To total Rank UK 200067 18% 1 Germany 113524 10% 2 USA 106893 10% 3 Namibia 78582 7% 4 Netherlands 55886 5% 5 France 52247 5% 6 Zimbabwe 45426 4% 7 Australia 37821 3% 8 Italy 26044 2% 9 Mozambique 26005 2% 10 Country Spend % Contribution To total Rank UK R2.2bn 17% 1 USA R1,7bn 14% 2 Germany R1,3bn 10% 3 Netherlands R0,7bn 6% 4 Australia R0,6bn 4% 5 France R0,5bn 4% 6 Namibia R0,5bn 4% 7 China 0,4bn 3% 8 Canada R0,4bn 3% 9 India R0,3bn 2% 10

IDENTIFYING THE PROBLEM

IDENTIFYING THE PROBLEM
The city : in a brand vacuum
Extremely competitive environment
Proposition overly reliant on beauty
Others define us
Visitor industry: vulnerable and threatened

TOWARDS A SOLUTION

PLAN INGREDIENTS

PLAN: CHANGING THE MIX From To (On-line)

PLAN: BEFORE WE START The Cape Town brand has existed for over 300 years It will be around for many more! What we deal with is the crafting of its messages to induce more people, who have different needs, to visit

^ too In a world demanding simplicity… We have much to offer

Heritage Cultural diversity Cuisine Flora + fauna Innovation, creativity Higher education Lifestyle Sport Natural environment But is that how the potential visitor sees it !

People do not see -

PLAN: Ambassador

PLAN: A BI-FOCAL APPROACH
Short Term:
Stimulate domestic demand: Cape Town – the ideal short break city during shoulder and lean season by leveraging events
Encourage incremental and dispersion of spend via experience trail development
Longer term
Build sustainable demand from core markets
Engage communities in tourism promotion and activity
Aligned with broader Economic Development (EDA) goals

Cape Town Johannesburg Durban SA Tourism Discovery National Geographic Programmes (all three cities) Vignettes On-line Initiatives (tailored) National Geographic Leverage and PLAN: An International knowledge build

For the benefit of all our citizens We need your help in making: Cape Town the most inspiring city in the world

Cape Town Tourism Industry Forums

by Cape Town Tourism on Aug 12, 2011

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Cape Town Tourism Industry Forums — Presentation Transcript