Is there a future for international hotel brands in SA?

Expansion by big international hotel brands is not necessarily a good idea for the future of the hotel industry in South Africa, according to industry players speaking at the HICA conference in Durban last week.

Arthur Gillis, Group MD, Protea Hotels, says the days of international hotels coming into South Africa and building without equity are over. He says very few internationally branded hotel groups are coming into SA with their own equity. “These companies pursue an asset-light model. They will put their brand on a hotel, but they don’t bring any money. We are saying: that’s very exciting but not what the country needs.”

Gillis says the country now needs equity investment, real cash. Increasingly this investment is coming from local investors as they have a firmer understanding of the country and its risk profile. “Every time we have bad press on politics or safety and security it raises the barrier to entry. Local investors are much more comfortable with the SA situation.”
International brands can add value by putting flags in key cities and getting the countries into the international spotlight, says Helder Pereira, CEO, Redefine International Hotels. He adds, however, that SA is a very sophisticated market with good distribution and competent management and some very strong hotel brands. That is the reason why the big brands don’t make a great impact in South Africa, says Pereira.

Gabriel Matar, MD, Jones Lang LaSalle, says the expansion of international brands is very restricted in the mature markets. “For a mature destination, such as South Africa, an international brand can bring niche products. These brands then need to cater for their own demand that comes from their market. Non-mature markets need international brands to gain international recognition.”

Graham Wood, MD, Tsogo Sun Hotels, adds that the advantage of international brands is that they provide access to global distribution, which allows hotel owners access to the international corporate market. “International brands have massive loyalty programmes and massive distribution systems, so you pick up your share of the incoming corporate international market. And that’s what the international brands will do.”

Gillis further warns that any hotel brand should proceed with caution when it comes to expansion, even though the hotel industry in South Africa is showing promising signs of recovery. He says the hype about the recovery of the hospitality industry is right but hoteliers need to be careful not to make the same mistakes that were made in the past. “The demand side is growing and if the supply side does not go crazy now, then we will be in good shape. The challenge is that people are now starting to see some green shoots and they start building hotels everywhere. If this happens, we’ll go back to 2008/2009 pre-World Cup situation, where hotels shot up right, left and centre. That was just stupid. It was ridiculous.”

Average global travel budget set to increase-survey finds!

Budgets are no longer among the top three reasons why travellers choose their holiday destination. The pull of attractions, scenery and rich culture is instead a stronger reason for travel. This is according to Visa's latest Global Travel Intentions Study 2013, which surveyed 12,631 travellers from 25 countries.

According to the study, the average global travel budget of US$2,390 per trip is set to increase to US$2,501. It noted that future travel budget increases were especially high among Asian markets, with a predicted increase of 46%.

"Global economic woes have been well documented over the past few years but our Visa Global Travel Intentions Study 2013 hints at a change in both the financial landscape and consumer mind-set, suggesting either economic recovery or a growing appetite for larger travel budgets. Both provide excellent news for everyone involved in the global travel and tourism industry,” said Ross Jackson, Head of Cross-Border in Asia Pacific, Central Europe, Middle East and Africa at Visa. 

"Understanding these changes is key to facilitating collaboration, encouraging informed engagement, and promoting growth across the travel industry,” he continued. 

The report stated that increasing ease and availability of travel options was fuelling the tourism boom. This is particularly prominent in the airline industry, where 85%of travellers prefer to fly to their destinations. Of this figure, most (71%) chose to fly economy class while, perhaps surprisingly, only 16% chose budget airlines.

The results of the study also show that today’s traveller is seasoned, with 79% travelling in the past two years, and taking between one and two trips per year. Some 80% plan their holidays in advance, taking an average of 10 weeks to organise the trip. Spending time with family and friends was cited as the most popular (38%) reason for a holiday. These trips were more likely to be organised independently (42%) and last an average of 10 nights.

Local municipalities not prioritising tourism- says Minister

Many municipalities with some of the best tourism offerings in the country have cut tourism budgets, or do not have a tourism budget at all. This is according to South Africa’s Tourism Minister, Marthinus Van Schalkwyk, who was speaking at the opening of the Local Government Tourism Conference, Sandton.

Van Schalkwyk asserted that local government was obligated to deliver basic infrastructure upon which tourism was built. “Tourism enhances the image of cities and towns; attracts additional commercial investments beyond the tourism sector; creates employment opportunities and contributes to economic growth.”

He cautioned local governments that failing to deliver basic tourism infrastructure could have a negative impact on the future economic growth and development in those municipalities as tourism has the potential to create local jobs.

“Local governments play an important role in the economic and social development of their communities. They must work with the various private and public stakeholders in the tourism sector to ensure that their communities derive maximum benefit. If tourism is to grow, we need a concerted, well-coordinated approach to manage it, which includes a well-managed approach to visitor servicing,” said the minister.

“I therefore call on municipalities to make tourism a high priority in their budgets. To create the same quality of jobs in the tourism sector as in other economic sectors, the investment required is much less,” continued Van Schalkwyk.

He said local governments would also find that in the National Department of Tourism, the social responsibility implementation (SRI) programme was a willing partner, which would make money available for concrete development plans. He cited three successful examples of the programme: Hector Pieterson Memorial Square in Soweto, which attracts about 25 000 visitors annually; Zithabiseni Resort, Mpumalanga; and Mukumbani Falls Project, Limpopo.

He said the local tourism industry had much to celebrate in terms of achievements and the integration of tourism in government policy, planning frameworks, and economic and development agenda. For this reason, the Local Government Tourism Development and Growth Support Programme was developed in partnership with the South African Local Government Association.

The minister said the programme would equip tourism practitioners and policy makers at local government level with much-enhanced tourism skills in key areas.

“We will work with provinces and municipalities to ensure the integration of tourism priorities in the Provincial Growth and Development Strategies and Integrated Development Plans.”

“The implementation of the National Tourism Sector Strategy will require strong partnerships across public and private sectors, but, most importantly, appropriate structuring, capacitation and resourcing in all spheres of government,” concluded the minister

Elephant relocated into wild after 23 years in captivity

Gondwana Game Reserve in the Garden Route embarked on a project on March 5, together with the Bloemfontein Zoo and Conservation Global, to relocate Thandora, a 27-year-old elephant, from captivity to the wild.

Thandora has been in captivity for 23 years. Her elephant companion at the zoo recently died, and it was decided that she needed a more suitable home where she could form part of a herd.

“Gondwana Game Reserve was sought out for this relocation as it provides a suitable herd and environment for Thandora as well as the facilities to support her transition,” said a statement by the reserve.

It said the biggest challenge was preparing Thandora for her new free-roaming life. “Due to her captive environment she has low muscle-tone and poor fitness, which could be potentially life-threatening if she is released directly on to the 11 000-hectare reserve. The Gondwana elephant herd can cover up to 15 kilometres in a day, which Thandora needs to be physically prepared for.”

She will therefore be placed into a rehabilitation programme for her diet and exercise. “While in the holding boma, her diet will be adapted from captive-based food, such as fruits, vegetables, bread and lucern, to natural forage. She will take part in a fitness programme where she will be walked daily within the holding boma, building up to a target of 10 kilometres a day. We anticipate this to take six to eight weeks, or as long as is necessary.”

The programme will be closely monitored by Conservation Global’s research department, which will look at behavioural and physical elements. The results are hoped to be published and used for future elephant relocations from captivity.

Crime decreases on Table Mountain

Crime on Table Mountain has reduced drastically since the inception of the Table Mountain Safety Forum (TMSF), according to a statement released by SANParks.

The TMSF was established in early 2011, following a spate of attacks on Table Mountain.

The forum focuses on incident management and data analysis, boosting volunteerism, effective communication, victim support services, the use of technology to complement the existing operations, community involvement and monitoring and evaluation

Merle Collins, SANParks Regional Communications Manager: Cape Region, said the number of crimes perpetrated against Table Mountain users reduced by 50% between 2011 and 2012.

She added that from October 2011 until January this year, there was not a single reported criminal incident against a mountain user in the areas on Table Mountain where TMSF members are active in the City Bowl between Signal Hill to Devil’s Peak and Camps Bay.

“Unfortunately, between January and February there have been a total of three incidents of robbery and attempted robbery in these areas, and the TMSF has immediately responded to this by increasing its activity with SANParks rangers, SAPS officers on horseback and on vehicle patrol, neigbourhood watch patrols and through aerial surveillance, as well as through the eyes and ears of bikers, hikers and walkers. Given that the Cable Way reported record numbers, some 120 000 rides in December alone, incidents are few and far between,” said Collins.

She said the primary incidences were thefts and attempted thefts from vehicles left for long periods in parking lots near popular mountain trails.

“We urge members of the public not to leave any valuables inside their vehicles and to report any suspicious activities and while on the mountain, to report any suspicious activity or to report a crime or emergency,” she said.

“Most importantly, we call on all members of the public that do experience incidences of crime to report them, as this will allow police officers to intervene and reduce crime into the future.”

The SANParks emergency number is 0861 106 417 begin_of_the_skype_highlighting 0861 106 417 FREE end_of_the_skype_highlighting .

Is a new SA-Zim border post a solution to the Beitbridge chaos?

The Beitbridge border post has been characterised by chaos over the past few weeks with abnormally long queues stretching as far as 20 kilometres.

Reacting to the situation, Zimbabwe’s Education Minister, David Coltart, said in a Facebook post that the situation at the border post remained “intolerable, unacceptable”.

Coltart suggested that a new border post be considered between the two countries. “We have to move from talk to urgent action. This situation needs a massive, urgent effort by both the South African and Zimbabwean governments. If need be, we should be considering the construction of another road to South Africa."

South Africa has since agreed to send more immigration officers to Beitbridge to speed up the clearance of travellers and cargo. It also said it wanted to build additional roads for heavy vehicles at the country's border with Zimbabwe.

Director of Discover Africa Group, Steve Conradie said the situation was a hindrance for tour operators and tourists alike. “Any congested border post attracts unwanted elements looking to prey on unsuspecting tourists bewildered and frustrated with the disorderly manner in which the border posts are run. This often leads to horrific experiences for the tourists, giving travellers to Africa a bad impression.”

Ken Hill, Co-founder of Drifters, said Beitbridge had long been a problem for the company. “It can take literally hours to get a group of tourists across the border and so we do all in our power to avoid it. It is definitely hindering tourism flow to Zimbabwe.”

He, however, disagrees with Coltart’s notion that building a new border post and road would solve the problem.

“The infrastructure is currently in place to allow for smooth crossings but the culture of absolute chaos on both sides of the border is the cause of the massive delays. Because of the lack of control, there are often hundreds of people ‘hanging around’ within the border post areas. This causes congestion and vehicle log-jams etc. It also encourages corruption,” said Hill.

Conradie agrees with Hill that an additional border post will not solve the problem.

“A lot can and needs to be done to improve the flow and experience. Better infrastructure, improved systems and visible, active policing alone will make a huge difference to improving the experience of the traveller. There are busier border posts around the world that are a lot more efficient. All it will take is a visit by the respective decision makers, a lesson or two to be learnt and structured implementation to take place. An additional border post with the same flawed system will be just another waste of taxpayers’ money,” said Conradie.

Hill said a step-by-step process should be outlined from the start and the solution would be to:

• Provide suitable truck parking for the many freight vehicles that currently jam up the access road  and border areas whilst their drivers wait for "clearance".

• Control access to the actual border post areas - only people who are crossing should be allowed access. No hawkers etc.

• Provide adequate signage so that everyone knows which counter to go to first, what forms are necessary etc. “

• Ensure there should be officials and a separate queue dedicated to dealing with "problems". This would ensure quick service for those that have their documents in order.

• Ensure officials controlling the access gate monitor the loads and only allow further traffic in once a backlog has been cleared.

Hill added that if one wanted to really improve current infrastructure, a simple drive-through should be created, where vehicles stop at a counter and are processed without having to get out. “It is a bit of a joke that whilst bona-fide tourists wait hours in the queues to cross, the majority are simply walking across the border unhindered just a few kilometres upstream,” said Hill.