Tourism Business Africa 09 by Now Media

November 2009

Pre-2010

hospitality

GROWING SUSTAINABLE TOURISM

booming!

Robert

Gumede

The new face

of tourism

new

giants: Angola &

Opportunities around

Nigeria new Durban airport AFRINORD: KEENLY FUNDING IN AFRICA

is published by Lugan Investments (Pty) Ltd trading as Now Media in association with the Tourism Business Council of South Africa (TBCSA).

An architect’s impression of the International Convention Centre East London. Just one of many developments in South Africa opening in time for the 2010 Fifa World Cup.

in this issue

P: +27 (0)11 327 4062 F: +27 (0)11 327 4094 E: info@nowmedia.co.za W: www.nowmedia.co.za Now Media Centre 32 Fricker Rd Illovo Boulevard Illovo, Johannesburg P O Box 55251, Northlands 2116, South Africa Publisher David Marsh

editor Natalia Thomson nataliat@nowmedia.co.za Contributors Michelle Colman Kate Els design and layout Michael Rorke

and more:

TBCSA P: +27 (0)12 654 2711/7525 F:+27 (0)11 654 7394 E: tourism@tbcsa.travel W: www.tbcsa.travel

CEO: Mmatsatsi Marobe exec@tbcsa.travel PR & Communications: Kagiso Mosue kagiso@tbcsa.travel

must reads:

Advertising Coordinator: Lana Sachs Printed by: Juka Printing (Pty) Ltd

F renzy over Africa

Hotel giants serious about investing in Africa.

Thinking big about tourism

An entrepreneurial spirit, the dream to own a caravan, and a joke were what pushed Robert Gumede into investing in South Africa’s biggest tourism company...

F unds for investment

Getting creative with finance for hospitality investments is essential in a downturn.

features: 16

M ade in Africa

Increased focus is being put on small tourism projects that provide an authentically African experience.

B oundless Africa

From the outset it was an ambitious project incorporating nine countries, seven transfrontier conservation areas and 51 investment projects...

Tourism index for SA

The Tourism Business Council of South Africa, First National Bank and Grant Thornton partner to develop SA’s first tourism index

K ing Shaka

The new international airport in Durban is being built in the hopes that it will support over 45 million passengers by 2060.

H uman Capital Investment

The absence of service culture in South Africa is finally being addressed.

HICA Supplement: 26

P rogramme

Your guide to the three-day Hospitality Investment Conference Africa.

30 S peaker profiles

Who’s who on the podium at HICA

invest in africa

Luanda’s massive hotel room shortage looks set to be alleviated in 2010.

Frenzy over Africa Hotel giants serious about investing in Africa, reports Natalia Thomson…

HILE it may once have been a high-risk gamble for the maverick investor, today investing in Africa’s hospitality sector appears to be the rule and no longer the exception. Global hospitality giants like Rezidor, Accor and Hilton, as well as their regional counterparts, have defined Africa as one of their main business development areas for the future. They are aggressively expanding their portfolios on the continent, while slowing investment elsewhere as the economic downturn continues to bite. “We have taken a view on Africa generally that in most African capitals, there is a lack of quality suppliers and an unbelievable demand for high-quality international brand hotels in these cities,” explains Andrew McLachlan, Rezidor VP Business Development Africa and Indian Ocean Islands. In three years, Rezidor has expanded from five hotels on the continent to 34 hotels in 13 countries either open or under development. “So seriously do we take our commitment to Africa that we’ve even opened an African development office in Cape Town,” says McLachlan. Rezidor sees huge growth opportunities in the African giants of Angola and Nigeria. Also 4

Tourism Business Africa 2009

of interest is Ghana and Mozambique, which McLachlan says will offer quite a lot of mixed business and leisure opportunities. At least 70% of Accor’s investments, says Serge Hattier, Senior VP Hospitality Development Team: Middle East and Africa, are concentrated in selected emerging markets including Africa. Morocco and Algeria offer the best development opportunities in North Africa for Accor currently. “In Morocco, we have a comprehensive network of 28 existing hotels and plans underway to establish 18 more hotels. The country has adopted a visionary approach to the development of its tourism sector, thus ensuring a stable framework for hotel developers,” says Hattier. Meanwhile Algeria, he says, has “tremendous growth potential” in the hotel business sector as it has a population of over 35 million people and the country currently presents a noticeable lack of hotel facilities. “We have plans in place to build 38 hotels and a total of 6 000 additional rooms in Africa across the Accor brands: Sofitel, Novotel, Ibis and Etap.” On Hilton’s cards for Africa, says Patrick Fitzgibbon, Senior VP Development: Europe and Africa, are properties in Tanzania, Lagos, Kampala and Ghana, as well as a new Hilton

invest in africa

Sofitel, our five star hotel brand, is an option that we haven’t excluded either.” When corporate travellers visit unfamiliar countries, they look for comfort, says Weilers. “The four-star positioning of the Southern Sun brand has a range of services for guests. The full service component of the hotel is currently the most sought after thing, however this does not mean we would not invest in other brands like our Stay Easy brand if these properties are positioned near the right kind of infrastructure, like a mall for example.”

turn to page 7

“Governments understand the importance of including hotels as part of their infrastructure development plans to boost tourism, making it easier to invest in Africa than in Europe or America.”

Photo: Natalia Thomson

Cape Town set to start construction in 2010. “We have been in Africa for a very long time and are excited about opportunities opening up for investment in south, west and east Africa. We have also noted tourism growth along Africa’s east coast, including Kenya, Tanzania, and Mozambique and are considering our options in these areas.” Regionally, groups such as Southern Sun, Protea and African Sun are leveraging their African expertise and expanding rapidly continent-wide. Southern Sun currently operates in six countries, including Mozambique, Zambia, Tanzania, Kenya, the Seychelles and Nigeria. African Sun also recently announced it would be spending US$60m on hotel capacity expansion in the run up to 2010, raising the group’s capacity to 8 500 rooms by 2012. Protea Hotels, says Marketing Manager Danny Bryer, already has properties in Nigeria, Tanzania, Kenya, Zambia, Uganda, Ghana, Malawi and Namibia. Bryer says one of the key ingredients to the group’s success in Africa is that it is an African company. “Conducting business in Africa requires an understanding of certain African nuances. We understand this and look at the country’s history and cultural philosophy in addition to the its tourism potential.” “We are offering an African hotel solution as Africans. We are committed to the continent and are globally competitive hotel operators,” echoes Richard Weilers, Southern Sun Offshore MD. Weilers says the group will look at new opportunities in the countries in which it is already operating. “This includes brand extensions in terms of opening a four-star deluxe hotel, Garden Court or Stay Easy.” McLachlan says Rezidor’s strategy is to go into countries with good economic growth and good airlift and enter the market with its core brand, the Radisson Blu. “The focus in Africa is very much on corporate travel. Business travellers are more robust than leisure and if there’s an outbreak, flooding, or some type of catastrophe it may slow the business traveller down, but they’re still going to need to do business. That means business hotels tend to bounce back fairly quickly.” While Rezidor looks at opportunities to introduce the group’s mid-market brand, Park Inn, to some countries, McLachlan believes for most African countries that are fairly new in their life cycle, a five-star hotel would take precedent. “The hotel essentially becomes an oasis in developing countries. It is where corporate travellers hold meetings. Status is also very important so when we design the hotel, we oversize the lobby to make it a large sociable area.” The more sophisticated hospitality industry in sub-Saharan Africa, says Hattier, has potential for future growth. “We already have a network of 28 hotels under the Formula 1 and Mercure brands in South Africa and are investigating opportunities for additional Formula 1 hotels as well as establishing the Ibis Novotel and Pullman brands in the country.

Luanda’s famous Marginal is a landmark in the capital. 2009 Tourism Business Africa 5

invest in africa How difficult is it?

One of the biggest challenges facing investors in Africa, says Hattier, is the slow pace at which administrative work gets done. “For this reason, governments are increasingly opening agencies that specialise in helping foreign investors get through the administrative processes.” African governments are also increasingly encouraging investment by granting tax breaks and offering other incentives. Adds Hattier: “Governments understand the importance of including hotels as part of their infrastructure development plans to boost tourism, making it easier to invest in Africa than in Europe or America. “Most African countries also grant tax holidays to foreign investors, realising that developing hotels leads to employment opportunities as the hotels need to employ staff and work with local suppliers and other stakeholders.” McLachlan says a further challenge is finding the right partner. “The contractor on the ground has to have experience in that country. It’s no use hiring a reputable project manager who has no experience with project management in that country.” Raising finance and finishing off hotels properly can be difficult in Africa. “Sometimes developers run out of money for the finishings, furniture and fixtures. The challenge occasionally is to get the hotel built on time and once it’s built, to keep it running,” says McLachlan. He also notes that it is hard to outsource things so storage facilities need to be bigger. “You need to procure more efficiently because it can take months for produce to arrive. And staff facilities need to be bigger because you need more staff.” The biggest challenge is land ownership and the complexities therein, concludes Weilers. “Our current strategy is to look at managing contracts to avoid these challenges.”

Future Angola & giants: Nigeria Nigeria’s plan for economic expansion based on the tourism sector and foreign direct investment in its extractive industries (oil, gas and mining) has created a gap between supply and demand in the hospitality industry, says McLachlan. Rezidor is building three new hotels in Nigeria, with its Radisson Blu Hotel due for opening on Victoria Island by mid-2010. The 250-room Radisson Blu will include two restaurants, meeting facilities and leisure areas, including a spa and pool. Also being built are the Radisson Blu Hotel Abuja and the Park Inn Abuja, scheduled to open in 2012. Protea for its part has consolidated its presence in Nigeria, adding a sixth property in Lagos: the Protea Ikoyi in Westwood. “We’ve seen the biggest growth in Nigeria and are starting to expand into secondary cities like Ibadan, the educational capital of Nigeria, and Waari, a new port.” In Angola, an additional 16 hotels are

expected to open in Luanda by 2010. According to the Hotel and Tourism Ministry National Infrastructure Director, Afonso Vita, this will bring an additional 60% capacity and 4 000 beds on stream by the African Cup of Nations event in 2010. This will include two five-star, two fourstar and several three-star properties. Under construction currently are Endiama’s Hotel Diamante, the Sana Luanda Royal Hotel, the Radisson Blu Hotel Luanda, Hotel VIP Grand Luanda and a Protea hotel close to the Luanda International Airport. The 387-room Intercontinental Casino Hotel and 180-room Três Torres property should open by the end of 2009, while the 370-room Talatona Convention Hotel, along with the Talatona Convention Centre, was expected to be completed by July 2009. By 2010, an additional 30 new hotels will open throughout the country, including motels, apartment hotels and hotels.

2009 Tourism Business Africa 7

profile - Robert Gumede

Thinking BIG about tourism An entrepreneurial spirit, the dream to own a caravan, and a joke were what pushed Robert Gumede into investing in South Africa’s biggest tourism company... words: Kate Els

“I am a businessman and I’m not in it for charity, I’m in it to make money.”

Tourism Business Africa 2009

ECOGNISED as a name to be reckoned with in the technology sector, it took the tourism industry by surprise when Robert Gumede threw his name into the hat for a majority-share purchase of South Africa’s biggest travel and tourism consortium Tourvest Holdings. Gumede started his career as a clerk in the civil and criminal court in Nelspruit after studying law at the University of Zululand in KwaZulu Natal. Later he was appointed as state prosecutor where he served the Nelspruit Kabokweni courts. But the courts were not to be his home forever as Gumede launched successful businesses in the IT, telecommunications, property and facility management and consulting sectors, establishing the Guma Group (formerly Gijima) in 1995. Having built up this successful ICT company from scratch, Gumede looked at diversifying his portfolio. Around the same time, he was nominated and became the runner-up through a chairman’s casting vote for the South African leg of the World Entrepreneur of the Year 2005; former Imperial Holdings CEO Bill Lynch took first prize. Chatting after the event, he jokingly said to Lynch: “Now that you’ve been given this award because of your age, you must sell me one of your businesses.”

And that, he says, was the beginning of the discussions around Tourvest. Gumede says he was drawn by Tourvest’s integrated nature. The company houses several divisions involved in all spheres of the tourism industry, ranging from retail travel to inbound tourism. “What interested me was the role that Tourvest plays in bringing foreign currency into the country and its creation of jobs. But I am a businessman and I’m not in it for charity. I’m in it to make money.” Gumede muses nostalgically that tourism has always been very dear to him and while growing up along the N4 Route passing through Nelspruit, strings of cars heading toward Lorenço Marques (now Maputo) were a norm. “I always said that when I was old enough I would buy a caravan to be able to travel on that road.” Tourvest was delisted after Gumede’s takeover late last year. The reason behind this move, he says, was to encourage “an entrepreneurial flair” among employees, who he describes as a passionate, hard-working team.

The road ahead

His plans for the company seem infinite and his excitement for acquisition is apparent when I ask about the future. “We

are increasing our investments and are busy looking in Egypt.” Other destinations of interest include Nigeria, Angola and East Africa, areas Gumede describes as having “packaged nodes”. He adds that Nigeria is the company’s launch pad into West Africa. Not afraid to offer advice for fellow investors looking at development within Southern Africa, he believes transport is one of the most important aspects when looking at investing in a project in the region. He succinctly sums up this view, saying: “Don’t invest where there is none!” According to Gumede, although some areas have big tourism potential, without access it’s not practical to drive tourism into them. As an example, he refers to the Western and Northern Cape’s Namaqualand flowers. “Air access is especially important.” Other primary concerns in tourism for Gumede include SA’s service culture, or lack thereof. “Tourism is about a culture of service. If only our people in South Africa could be as passionate in service as Zimbabweans are. “In Zimbabwe, a sweeper in a hotel will make you feel comfortable and understand why you are staying over in that hotel and that comes from an appreciation of tourism.”

profile - Robert Gumede

“In Zimbabwe, a sweeper in a hotel will make you feel comfortable and understand why you are staying over in that hotel and that comes from an appreciation of tourism.”

Gumede describes the current investment climate in Africa as very positive, saying investors should be quick to leverage the potential that the 2010 FIFA World Cup offers. “The Tourvest deal happened at the right time. I was not in tourism when the country was not afforded the opportunity in 2006 and would have been just a spectator not helping and actually participating,” he says. Lauding the efforts by South Africa’s standalone tourism ministry to work with the country’s competitor destinations, Gumede says: “I think that Marthinus van Schalkwyk is really becoming a ‘voortrekker’. Just look at the agreement that he has signed with Kenya.” Various organisations getting involved in the sector also bode well for the future of tourism in Africa. In this list he includes both the Industrial Development Corporation and the Development Bank of Southern Africa. He says these organisations’ decision to fund SMMEs is a step in the right direction as he believes these are the future of tourism. “There is a big focus on small businesses and just like the small retail spaza shops, we need to create ‘spaza shops’ for tourism. “Tourism is not about having bums in beds; it’s not about hotels; it’s not about selling curios. It’s about the whole experience.”

Photo: Tijana Huysamen

Positive investment climate in Africa pre-2010 World Cup

2009 Tourism Business Africa 9

tourism index for sa

Tourism Index for SA

The Tourism Business Council of South Africa, First National Bank and Grant Thornton partner to develop a tourism index…

NEW tool aimed at “mainstreaming” travel and tourism as a viable economic and business sector is to be launched soon. According to Mmatšatši Marobe, Tourism Business Council of South Africa (TBCSA) CEO, the index will be used to increase the sector’s understanding amongst the public and to lobby government on various issues by indicting the health and status of the tourism industry. It is envisaged that the tourism business index will include overarching economic trends at a global, regional and national level, as well as specific trends within the South African tourism industry and its sub-sectors. It is also proposed that the index will start small and then be developed and expanded over time from the established base. “The Tourism Business Index will combine information from various sources in the industry into a simple, reliable and understandable index in order to ensure that it is credible” says Martin Jansen van Vuuren, director of Grant Thornton Strategic Solutions. Jansen van Vuuren indicated that the index will have two main components. Firstly, a historical index will be compiled based on information and data obtained from a cross section of tourism industry players and other available tourism industry data. This cross section of industry players will be drawn from the membership base of TBCSA and is planned to include contributors from, amongst others, tour operators, accommodation establishments, convention centres, academic institutions, car rental companies, airline representatives, coach operators and entities that conduct tourism surveys such as SA Tourism, provincial tourism authorities and

Mmatšatši Marobe 10

Tourism Business Africa 2009

tourism index for sa

Statistics South Africa. The information gained from these sources will be weighted and combined in an index that tracks the fluctuation in the tourism industry. Choosing the correct base year for the index will be an important decision in the development of the Tourism Business Index as the incorrect base year will provide a skewed picture of the growth and development of the industry. The second component of the Tourism Business Index is the forecast index, which will be compiled based on the forecasts obtained from the same cross section of tourism industry players that are contributing to the historical forecast. To interrogate and debate the information obtained it is also proposed that a panel of experts convene on a quarterly basis to provide input in a forum discussion. During this forum discussion the panel of experts will debate the various international and domestic trends that have been identified in the tourism industry and the impact that they will have on the South African tourism industry. From the debate, short- to medium-term forecasts for the tourism industry will be identified and incorporated into the tourism index. The historical and forecast index will be compiled by combining the insight and experience of the members of TBCSA with the economic and tourism knowledge of FNB and Grant Thornton, resulting in a powerful tool for the tourism industry.

In order to provide the tourism industry with timeous market intelligence it is proposed that the Tourism Business Index be published on a quarterly basis. To ensure that the tourism industry has access to the tourism business index it is proposed that that the index be distributed free of charge, electronically and as widely as possible. “The aim of the tourism business index is to assist the industry and through a wide distribution we hope to convince a multitude of industry stakeholders to contribute to the tourism business index. The more contributors we include, the more valuable and accurate the tourism business index would be,” says Marobe. It is also proposed that an annual forum be held with all the contributors to the Tourism Business Index to discuss the health and state of the tourism industry. All contributors will be invited to the forum to discuss recent trends in the tourism industry, the impact that these trends will have on the tourism industry and the future trends in the tourism industry. The tourism business index will follow the example of the World Tourism Organization (UNWTO) that publishes a tourism barometer three times a year, in January, June and October. The UNWTO barometer reports statistics on global and regional arrivals and receipts. In addition, the UNWTO barometer includes an evaluation by a panel of experts of the performance of the global tourism industry in the period/year preceding the

publication and the prospects for the performance of the industry in the coming period/year, which takes the form of an index. By developing the Tourism Business Index for South Africa, industry will be provided with a powerful tool to assist in not only tracking the health and performance of the industry, but also to assist in the planning by the industry through the forecast index. This index will be based on statistical analysis and will not merely be a confidence index. The TBCSA, FNB and Grant Thornton are aiming to launch the Tourism Business Index in the New Year. In the interim the parties are raising the awareness of the initiative in order to elicit support from the tourism industry. Marobe says: “If the Tourism Business Index can be compiled with the support of numerous and a wide range of tourism enterprises, it will become the benchmark for the tourism industry with which government can be convinced that the tourism industry is worthy of support. We have been saying for a long time that the tourism industry is an important industry in the South African economy and that it is contributing to economic growth. We have, however, not been able to definitively show that the industry has been growing or even how it has been affected by the global economic situation. We need to support this initiative in order to give us the tools required to lobby government for greater support for our industry.”

2009 Tourism Business Africa 11

creative investment

Funds for investment Getting creative with finance for hospitality investments is essential in a downturn, reports Michelle Colman...

N the current global economic downturn, the flow of funds for hospitality investments has slowed to a trickle worldwide. In Southern Africa, however, liquidity still exists, particularly for established players. Upgrades and renovation projects with proven revenue streams and low gearing are continuing to access finance, but for new entrants and newbuilds the situation is far more challenging. Discussion with traditional funding sources reveals there is still a considerable amount of development on the go. At the time of writing, the tourism division of First National Bank (FNB) had approved funding of R110m in the previous two weeks, and was reviewing 15 major projects of R30m and up. Between April and mid-September 2009, the Industrial Development Corporation (IDC) had approved nine loans at a total cost of R129m, all in the accommodation sector. The Development Bank of Southern Africa (DBSA) was involved in projects in the Seychelles and South Africa, and was weighing up an Angolan development.

“The days of five-star hotel rooms built at a cost of R3m are over.”

Curbing costs

But the credit crunch has pinpointed an important issue – prospective hospitality developers will have to curb flamboyance and opt for conservative plans if they are to succeed in obtaining finance. Referring in particular to South Africa, where developers have tended to over-capitalise, Joop Demes, CEO of Pam Golding Hospitality, explains: “There is too much emotion in hotel developments with not enough attention paid to the best possible operator for the location or sustainable demand and supply in terms of competition. “In addition, despite increasing costs of land and construction, South African developers have not modified their desire for space – for example, they continue to build mid-market rooms at around 26sqm to 28sqm while in Europe the average is 17sqm to 21sqm.” Spiralling building costs have impacted hospitality developments around the world and reputedly doubled between 2004 and 2008. Demes predicts the days of five-star hotel rooms built at a cost of R3m are over. If funding is to be sourced, he states, the per-key cost for top-end rooms will have to be reduced to the level of R2m. More realistic mid-market parameters would be R800 000 to R900 000, with budget rooms coming in at R425 000 to R450 000. Anything above this will invariably not produce the required returns and will make funding extremely difficult, if not impossible, he comments.

turn to page 14 2009 Tourism Business Africa 13

funds for investment

Management companies

Kate Rivett-Carnac Kate Rivett-Carnac, tourism specialist at the DBSA agrees, saying the rigour applied to cost-per-key ratios by chains such as City Lodge and Formula 1 should be more widely practised. Pieter de Bruin, head of tourism at FNB, suggests sharper control of construction costs can also be achieved by downscaling on public areas. Hotels should also be built as unspecialised structures, so that they can be converted for alternative use should they fail. Demes further emphasises the need for “proper” scientific feasibility studies in which a realistic approach to three considerations are critical: configuration, capital costs and choice of operator or brand.

“The rigour applied to cost per key ratios by choice such as City Lodge and Formula 1 (pictured right) should be more widely practised.”

Tourism Business Africa 2009

The participation of an operating or management company in a development is often a deciding factor in clinching finance. De Bruin says: “Banks provide funding on a tenuous basis of projected cash flows. The involvement of a management company with a brand and a proven track record in filling beds indicates a means of repaying loans.” But in recent years, management companies have tended to adopt asset-light strategies, reducing capital investment by divesting themselves of equity and shareholdings, leaving owners to bear all the risk. Such policies mitigate against drawing management companies in too tightly and do not prevent their withdrawal in an economic downturn. Philippe Trapp of Accor Hospitality’s Southern, Eastern Africa & Indian Ocean division, which manages in the region of 100 African properties, puts the case for management companies: “We have observed recently a number of projects being cancelled or put on hold mainly due to the scarcity of funds available (more importantly in oil-related economies) or to the lack of credit availability, or the increase in the cost of such credits. As far as Accor is concerned we have not lost any contracts, but some projects have been delayed for six to 12 months.” De Bruin comments: “FNB is working hard to build relationships of trust with managing companies and engage with the industry so that an acceptable and legally-binding agreement can be created in an innovative way.” Historically that agreement has been a turnover lease that, while securing a higher level of commitment from a management company, involves a lower share of turnover for property owners. Local hotel management companies still utilise lease agreements widely, but they raise little enthusiasm from foreign operators.

funds for investment

Recession bites

Mbuyazwe Magagula

Alternatives

While traditional sources of finance continue to predominate, alternatives are emerging. European-based development finance institutions (DFIs) such as the Scandinavianbacked Afrinord programme (see sidebar), or the French government– owned Proparco, have strong presences in Africa. Their criteria may preclude countries where GDP is above stipulated limits or where government is not involved in some form. Demes states that a number of property funds, somewhat challenged by conditions in the retail and other industries, are now taking notice of the hospitality industry. Smaller entrepreneurs can seek private equity but there are few, if any, formal channels to this sector. More positively, the Department of Trade & Industry (DTI) is approving many incentive cash grants to projects outside of the main metropolitan areas (or in economically marginalised parts of metropoles) under its Tourism Support Programme (TSP). Projects of R5m to R200m may qualify for grants of up to 30% (capped at a maximum of R30m) of total qualifying investment cost, payable over two years.

The recession has affected traditional funding institutions in various ways. The IDC has had to offer substantial support to stressed businesses already on its client list, thus restricting its capacity for new business. According to Mbuyazwe Magagula of the corporation’s Tourism Business Unit, an average of only one of the 15 or so applications received monthly is successful. An improving balance sheet has brought some relief, however, and where there is a strong case, exceeding capital limits may be possible. The IDC is still willing to risk taking equity where additional funding from other sources is a possibility, but trying to “crowd the commercial banks in” often presents a bottleneck. FNB, according to De Bruin, “doesn’t open the tap fully in good times, but doesn’t close it either in bad times.” The bank has always publicised flexible repayment structures as a selling point, taking tourism’s seasonality into account, with lower payments due in valley periods and higher ones in the peaks. “We are now looking at longer periods in which only the interest on the loan is serviced and more adaptability in repayment schemes is built in,” he states. Traditionally targeting tourism projects from R20m up in South Africa and US$10m up in Southern Africa where there are fewer developments, coupled with a general proviso of 50% equity, the DBSA reports no slowdown in funding approvals. The bank is, however, factoring in longer grace periods. Rivett-Carnac says: “Certain properties approved in 2005-2007, which have opened in the course of the recession, are not performing in line with expectations.” In spite of these pressures, none of the three funders above have changed their criteria for granting loans, to which they have always taken a conservative approach. Broadly speaking these involve well researched feasibility studies, business plans on which owners and operators can confidently deliver, the right development cost, sustainability, having the necessary formalities – such as licensing – in place, and a route to market.

“FNB doesn’t open the tap fully in good times, but doesn’t close it either in bad times.”

Afrinord Reduced support to the hotel industry by traditional financial institutions has strengthened the position of the Afrinord fund, backed by four Scandinavian development funds and hotel management and development company Rezidor. The fund was motivated by a n hla Lac Mc Andrew similar model used by Rezidor with success in Russia. Andrew McLachlan, who heads Rezidor’s Africa Business Development Office in Cape Town, explains: “When Rezidor decided to take a real run at Africa, we looked at the potential challenges we would face and saw that raising finance might prove an issue. We had worked with the four Scandinavian development funds on a case-by-case basis and decided to pull everyone in together.” The five shareholders, each holding 20% in the resultant Afrinord fund, are Rezidor and the government-backed development funds of Norway, Sweden, Denmark and Finland. The development funds’ enthusiasm for the hospitality industry rests in its ability to create jobs with relatively few barriers, accompanied by rapid transfer of skills. Afrinord provides mezzanine or bridging finance to either 20% of the total cost of the property, or to a maximum of €7m. McLachlan says: “Africa has many developments that don’t quite reach completion or are not finished off to standard. Construction time delays cause owners to run out of money. Typically we would finance the last 20% of hotel projects.” Often-onerous loan terms in Africa, where interest rates of 18-26% and short repayment terms of three years are not unheard of, make Afrinord with its seven-year repayment term an attractive option. The fund will also look at refinancing. Finance is dependent on the involvement of Rezidor as hotel management company. Since Afrinord kicked off in 2006, a hotel in Bamako, Mali, is up and running. A project in Addis Ababa in Ethiopia has been signed off and negotiations on three further developments are advanced. In the Ethiopian project, two of the development funds involved in Afrinord have become equity partners in their own right. The African hotels are being developed under two Rezidor brands, the five-star Radisson Blu and the mid-market Park Inn. The success of the €35m fund and the entry it has offered Rezidor into the African market bodes well for its possible extension.

2009 Tourism Business Africa 15

unique hospitality investments

Made in Africa Increased focus is being put on small tourism projects that provide an authentically African experience. words: Kate Els

T was French author, Jules Verne, who said: “Travel enables us to enrich our lives with new experiences, to enjoy and to be educated, to learn respect for foreign cultures, to establish relationships, and above all to contribute to international cooperation and peace throughout the world.” While Verne may have passed away over a century ago, he would understand the fundamentals that the following accommodation suppliers set up shop, offering experiences for their guests, rather than just clean sheets and a hot shower.

Township flavour

“All materials are sourced locally and produced by local artisans.”

Tourism Business Africa 2009

As Africa becomes increasingly recognised for its authentic cuisine, Vuvuzela Eat & Sleep is offering its guests a distinctly traditional township experience. An initiative of the Metsweding Entrepreneurial Development Centre (MEDC) based in Cullinan in Gauteng, Vuvuzela Eat & Sleep provides guests the chance to cook and sleep in rooms modelled on real township homes. Portia Paledi, MEDC project manager, says the

initiative is based on current South African township experiences, but takes the concept one step further by really involving guests. “The idea was born several years ago during a visit to a local B&B in Khayelitsha. Since then, the model has been refined substantially to now offer visitors not only the opportunity to taste traditional food but, for the first time ever in South Africa, to make it themselves. Guests will be able to learn the intricacies involved in selecting ingredients and preparing and serving authentic African cuisine.” Accommodation includes four rooms decorated in a township theme. En-suite bathrooms feature zinc basins and corrugated iron-look showers, while the beds come complete with ‘ingubo’, the Zulu word for blanket. All materials were sourced locally and décor items were specifically produced for the venue by local artisans. Local chefs have lent their exceptional talent and expertise to the Vuvuzela Eat & Sleep menu, which day guests can either sit down and enjoy or try their hand at cooking in the Vuvuzela cook-offs. The project is a pilot initiative that will be rolled out to other areas such as Soweto and Mamelodi in the future.

turn to page 18

unique hospitality investments

Long Street culture

“Each room at the Daddy Long Legs Art Hotel (pictured above) is decorated by an artist, poet, photographer, designer or musician. The hotel describes its guest experience as an ‘interactive art exhibition’.”

The Airstream Trailer Park offers contemporary African culture crossed with an American icon, the airstream trailer. 18

Tourism Business Africa 2009

Located on Long Street in Cape Town, the Daddy Long Legs Art Hotel is perhaps as abstract as the melting pot of cultures that populate the Mother City’s urban environment. Each room of this 13-room boutique hotel is decorated by an artist, poet, photographer, designer or musician. The hotel describes its guest experience as an “interactive art exhibition”. The artists were afforded complete freedom to interpret the space as they pleased, which resulted in hotel rooms that are an adventurous and humorous representation of Cape Town. Offering this quirky respite from sterile hotel rooms has lead on to another concept by owners, Jody Aufrichtig and Nicholas Ferguson. The Airstream Trailer Park offers its guests a mash-up experience between contemporary African culture and an American icon, the airstream trailer. Perched atop the Grand Daddy Hotel, the seven trailers have also been individually decorated and are different artists’ impressions of what life in an airstream trailer park would be like. These silver lodgings are all surrounded by a

tidy garden and come complete with a US Postal Service mailbox.

Xhosa celebrations Established just outside of Oudtshoorn in the Bongolethu Township, Ma Betty’s Cultural Experience is an authentic look at the Xhosa lifestyle and allows its guests to get involved and celebrate with locals. Guests will be entertained by a traditional story teller as well as a troupe of Xhosa dancers. The village also offers accommodation and traditional meals. Accommodation is very basic, in keeping with the theme of the village, with guests made comfortable on grass mats in a traditional hut. For visiting honeymoon guests and couples, cultural wedding ceremonies can be arranged. Symbolic, these ceremonies are a way to welcome guests into the village, says Ma Betty. A purist for the Xhosa culture, Ma Betty works with a local women’s group to involve the community in the benefits of tourism. These women help with the cooking at the village and are involved with guest entertainment.

king shaka airport

Catalyst

for a

tourism node? The new international airport in Durban is being built in the hopes that it will support over 45 million passengers by 2060...

S with any major, new infrastructure development, there are bound to be investors circling looking for their opportunity to get involved. The new airport going up in northern KwaZulu Natal at La Mercy will prove to be no exception. With the large number of passengers expected to pass through the airport over the coming years, it is a natural progression that surrounding development will be needed to cater for travellers, especially over the period of the 2010 FIFA World Cup. The airport, yet to be named, has shown promising development, with Airports Company South Africa (ACSA) reporting in July this year that the multi-billion rand project is now sitting at 72% completion with most of the civil and building works well on track. It is expected to open just prior to the soccer tournament and expects to handle a large number of fans coming into the country for that reason. Emirates Airline has shown its support for the project by announcing that it will operate to to the destination from its hub in Dubai. Although ACSA do not deal directly with investors who are interested in the surrounds, there are definite ‘development links’ due to the new airport. 20

Tourism Business Africa 2009

Colin Naidoo, Manager: Communications and Brand, says: “The airport is seen as a catalyst for potential development but ACSA’s core business is to create world class airport infrastructure,” added Naidoo. Together with Dube Tradeport, ACSA does plan on developing what Colin refers to as a Support Zone. This Support Zone, comprising a number of nodes, will meet expected demand for facilities associated with major airports, such as nearby offices, business services and tourist transit accommodation. Phase one of the development will see the Support Zone comprising a secure world-class 24-hour business and trade environment, inclusive of business parks and offices, hotels and specialist conference or meeting facilities, supportive retail facilities and the development of international trade centres. The tenders for retail agents were opened in February this year and were awarded in August. For those investments that may interest those in the hospitality industry, ACSA will engage in a public tender process says Naidoo. Mike Lambert, COO of the Three Cities Group, says that it has looked into developing accommodation in the surrounding area, the first of which is due to open early next year.

The Ballito Ambassador will have 50 rooms says Lambert, who hints at further interest in the area: “We are also in discussions with two more potential hotel operations close to the airport.” Lambert agrees that the area has tourism potential because of its proximity to the coastline and neighbouring holiday towns of Ballito and Westbrook. The City Lodge Group just opened its 125-room Road Lodge Umhlanga Ridge also in northern KwaZulu Natal, but has not announced any plans for a hotel nearer to the actual airport. Says Spokesperson Angus McMillan: “In general, airports are seen as an important potential location for City Lodge Group hotels, but every location has to meet stringent selection criteria, taking a 20-30 year view into account.” Protea Hotels has also recently opened the Protea Hotel Umhlanga Ridge, a 205-room property with conference facilities. Danny Bryer, Group Marketing & Revenue Director, says that the airport may help in facilitating a greater influx of tourists into the province if airlines are given landing rights for the destination. “The strategic location of the new airport can play a role in the accessibility of tourist attractions in this region.”

Photo: Mike Rumble FBImagineering

investors without borders

Investors L without borders

From the outset it was an ambitious project incorporating nine countries, seven transfrontier conservation areas and 51 investment projects, reports Kate Els…

Tourism Business Africa 2009

AUNCHED almost 10 years ago, the first transfrontier conservation area (TFCA), the Kgalagadi Transfrontier Park, was a symbol of a dynamic approach to conservation in Southern Africa. It signified that countries had realised that ecological management across an area could not be split by their borders. Opened by the Peace Parks Foundation in 2000, a programme supported by Nelson Mandela, the park was the beginning of the road for a campaign that would become known as Boundless Southern Africa. Boundless Southern Africa, an investment initiative developed by nine Southern African countries, catalogues 51 investment opportunities worth R785m that represent over 5 000 beds ranging from rustic accommodation to fivestar properties. These opportunities cover a wide range of investments, including accommodation establishments, conference centres, golf estates and even a ski resort, that span Botswana, Lesotho, Mozambique,

Swaziland, Zambia, Zimbabwe, Angola and South Africa. Deborah Kahatano, Programme Manager for Boundless Southern Africa, says the programme has been well received by investors since its launch a year ago, especially from those investors based in Africa. She adds that the programme has benefited from the political support of the nine countries involved, further elevating the project’s profile. “The investment opportunities have been researched,” she says. “The project is trying to address the lack of interest shown by investors to invest in the TFCAs. We have discovered two key reasons for this lack of interest: investors are not aware of the value of the TFCAs and there are no bankable investments available.” Out of the 51 bankable projects released by Boundless Southern Africa, three have been taken up by investors. Kahatano notes although the response is slower than expected, there are still many enquiries coming through from interested parties. Those projects snatched

Kingsley Holgate and his team travelled through the nine TFCAs and 30 national parks and nature reserves. The expedition team also hosted community events in each TFCA. Photo: Mike Rumble FBImagineering

up include one each in South Africa, Lesotho and Botswana. “We do however realise it is a credit crunch but expect the projects to gain momentum soon,” she says. There have also been numerous projects to generate publicity for the project including an expedition by intrepid explorer, Kingsley Holgate. His team travelled through the nine SADC countries, seven TFCAs and 30 national parks and nature reserves. The Boundless Southern Africa expedition was a huge success as it received both national and international media coverage. The expedition team also hosted about five community events in each TFCA. Kahatano says that the outright purpose of the expedition was to raise awareness about TFCAs firstly. “Tourists are heading to these areas anyway. They contain major tourist attractions such as the Victoria Falls, the Fish River Canyon and Chobe National Park among others. Now we need to attract the investors.” And the project has made it extremely easy for investors to choose which projects they would be interested in. Boundless Southern Africa offers investors an almost ‘packaged deal’ whereby it shows off researched projects that have a sustainable business model. Boundless Southern Africa’s website (www.boundlesssa.com) allows users to look at the individual projects as well as surrounding tourist attractions. A high-level investigation into the market demand and financial feasibility study of the proposed investment opportunities within the TFCAs was conducted by Grant Thornton. A technical DVD is available for interested parties. It contains a market summary (indicating market attractiveness and market potential), demand projections (including occupancy and average room rates) and financial projections (including income and cash flow statements and balance sheets for a 10-year period) for the various investment opportunities. It also has a market report on the tourism potential of the respective TFCAs based on Grant Thornton’s knowledge and experience of the industry and market research conducted among inbound tour operators. Not all the projects are the ‘start from scratch’ kind though. Some of the projects are for the redevelopment of existing attractions or accommodation says Kahatano, pointing out the example of a Maloti Drakensberg TFCA that has been taken up by an investor. “The project is for a lodge that was already there, it has potential, but it’s a

Photo: Mike Rumble FBImagineering

investors without borders

bit rundown and is being renovated.” Boundless Southern Africa will be presenting a small variety of its projects at the Hospitality Investment Conference from Swaziland, Lesotho and Zimbabwe. Kahatano says these areas were chosen for various reasons. “We chose to showcase the Swaziland and Lesotho projects just because there are many in these areas. “The areas are also very underdeveloped for tourists and we would like to see that change.” She concludes that projects from Zimbabwe will be showcased because there has been increased focus on the country since the formation of a coalition government last year and tourism is on the increase for the country, which previously was an extremely popular destination for visiting tourists.

Boundless Southern Africa, an investment initiative developed by nine Southern African countries, catalogues 51 investment opportunities worth R785m that represent over 5 000 beds ranging from rustic accommodation to five-star properties.

2009 Tourism Business Africa 23

human capital investment

Great sets, mediocre

actors

The absence of service culture in South Africa is finally being addressed, reports Michelle Colman...

We must create memories for our 2010 visItors Photo: Tijana Huysamen at Moyo Melrose Arch 24

Tourism Business Africa 2009

RECENTLY heard service in Africa described by a British citizen as “quaint.” The statement indicates a level of tolerance, but also a rather limited expectation. It is also perhaps an unfair generalisation, for there are African countries that enjoy excellent reputations for service ethic, the island of Mauritius being an example. There’s a tendency to attribute this service inequality rather sweepingly as a difference in culture. Perhaps it would be better understood as an absence of service culture, which can, surely, be developed. In South Africa where the 2010 Fifa World Cup is a few months away, concern about low levels of service excellence has prompted the Department of Tourism and the Tourism Business Council of South Africa (TBCSA) to embark on a public-private partnership to remedy the situation. They have established the Tourism Service Excellence Initiative (TSEI), aimed at changing behaviours. Phase 1, involving an audit of service standards throughout the country, has already commenced. The TSEI has roped in no less than the Disney Institute to undertake this study. With Disney resorts representing the pinnacle of good service worldwide, expectations that the research team will pinpoint barriers and enablers to better service are high. The aims of the TSEI are to proclaim service excellence as a national priority, define a South African service signature, accelerate skills development and develop a monitoring system. Information gleaned will ultimately contribute to the development of a National Integrated Service Excellence Strategy. TSEI Project Manager, Gail McCann, points to possible reasons behind South Africa’s

human capital investment

poor showing on service. She says: “The majority of South Africans have not been exposed to travel and service in general and therefore do not necessarily understand what is meant by good service. It is not about doing your job, but about going the extra mile. I also personally believe that staff are not always empowered to make decisions to rectify situations and have to wait for a manager to sort out problems. There needs to be a change in attitude in general.” That change in attitude, states performance consultant Angela James must occur at deep levels of awareness if they are to result in sustainable transformed behaviour. James, who has extensive experience in talent development with major South African hotel and tourism groups, states: “Too often the success of training is assessed on competence through a learning programme. Once the assessment process is over, that competence slips.” The return on investment related to training spend is, as a result, questioned by management. “Service delivery is a simple transaction, but how it is delivered is another story,” James expands. Her consultancy, 7 Generations, has tailored a series of strategies that target learners at the deep level of individual awareness, to bring about individual and organisational change. While Africa should look to international providers such as Disney to provide benchmarks for spectacular service, James believes the answers to our particular service challenges should be sourced locally. She finds the concept of story-telling, so central to African cultures, effective in her programmes, enabling participants to step into the roles they play in their company’s ‘story’. Particularly suited is the programme ‘The Way of the Service Warrior’, which champions excellent service experiences as a ‘cause’. James emphasises aligning service experiences and staff performance with a company’s branding. “Corporates spend fortunes on their external look and feel, but fail to pull this through to the customer experience. Frequently there is no compelling vision provided to guide the alignment of external messaging with internal living-the-brand philosophies for either customers or staff. Organisations create and produce fantastic sets, but with mediocre actor performances as the staff have little understanding

of their role in the show.” She points out that recognition and fair remuneration are also important. James notes that while the majority of hotels compete on factors with little differentiation, such as rates, amenities, size and location, very few compete on service and experiences. The concept of selling experiences extends to destination marketing, currently top of mind in Southern Africa gearing up for the 2010 World Cup. “Many 2010 marketers are missing the point,” she says. “We are not selling soccer; we are selling a tourism destination. Yet there’s no cohesive South African image, although there are pockets, fragments and nuances of it. We will have the fanciest stadiums, but it is the people that must create the memories. We throw the terms ‘rainbow nation’ and ‘Africa’s World Cup’ about, but have made only vague attempts to define them.”

“Organisations create and produce fantastic sets, but with mediocre actor performances as the staff have little understanding of their role in the show.”

Hotel groups invest in service excellence

Accor Hospitality operates an academy which co-ordinates training at its 100 or so African properties. Training courses strongly emphasise anticipation of guest needs along with service delivery and customer care. Some 100 courses are on offer, and it is an Accor requirement that all staff members benefit from at least one training session a year. In South Africa, one of the Accor brands, Formula 1, offers a National Diploma in Accommodation Services (accredited by Theta as a National Qualifications Framework programme) to all its employees, and those of outsourced service providers, at no cost. Besides its core, three-year inhouse apprenticeship programme offered in South Africa, Protea Hotels runs over 20 in-house development programmes for staff at its properties in nine African countries. The programmes, which attract some 2 500 participants across the continent, cover basic skills to financial, marketing and leadership development. Mary McGuire, Director of Protea Hotels’ Institute for Professional Development, says these courses are portable and extensive training is offered in Nigeria and Zambia. The group aims for consistency and is clear on its set of minimum standards and value systems. “We hire for attitude, and train for skill and knowledge,” she says.

2009 Tourism Business Africa 25

conference Wednesday, 4 November 2009 12:00 – 17:00

REGISTRATION OPEN

14:00 – 14:10

Sponsors Exhibition Setup

14:00 – 14:10

WELCOME REMARKS & CONFERENCE OVERVIEW

Ms Mmatšatši Marobe, Convener and CEO: Tourism Business Council of South Africa (TBCSA)

14:10 – 14:20

OFFICIAL OPENING REMARKS

Mr Tommy Edmond, Board Chairman: Tourism Business Council of South Africa

14:20 – 15:10

GLOBAL ECONOMIC OUTLOOK - SETTING THE SCENE FOR HICA 2009

15:10 – 16:00

GLOBAL HOSPITALITY BAROMETER – Leaders Panel

16:00 – 17:00

AFRICA’S HOSPITALITY BAROMETER – Leaders Panel

17:00 – 17:45

NETWORKING XPRESS

18:00 – 20:00

WELCOME COCKTAIL RECEPTION

Moderated by: Prof Brian Kantor, Economist and strategist: Investec Private Clients Dr Rudolf Gouws, Chief Economist: First Rand / Rand Merchant Bank Dr Iraj Abedian, CEO: Pan African Capital Holdings

Moderated by: Mr Nawfal Bendefa, Vice President International Hotel Development: Marriott Panel: Mr Arthur de Haast, Global CEO: Jones Lang LaSalle Hotels Mr Kurt Ritter, President & CEO: Rezidor Hotel Group Mr Serge Hattier, Senior Vice President Development: ACCOR Hospitality, Africa & Middle East

Moderated by: Mr Joop Demes, CEO: Pam Golding Hospitality Panel: Mr Andrew Payne, CEO: Wilderness Safaris Mr Jorge Jover, CEO: MITC Investimentos SARL, Angola Mr Steve Fitzgerald, Outgoing CEO: &BEYOND Mr Shingi Munyeza, Group CEO: African Sun Hotels

Venue: Sandton Sun Hotel

THURSDAY, 5 NOVEMBER 2009 07:30 – 08:30

Registration

08:30 – 08:40

Coffee, Tea and Pastries served on arrival

08:40 – 09:00

Welcome remarks

Ms Mmatšatši Marobe, CEO: Tourism Business Council of South Africa (TBCSA)

INCREASING GROWTH OPPORTUNITIES FOR AFRICA – KEYNOTE ADDRESS

Honourable Minister Marthinus van Schalkwyk: Department of Tourism South Africa

09:00 – 09:15

Presentation of South Africa’s Investment Handbook

Ms Sindiswa Nhlumayo, Deputy Director General: Department of Tourism South Africa

2009 Hospitality Investment Conference Africa

programme

09:15 – 10:00

ADVISORS’ PANEL - WHAT ARE THE ADVISORS TELLING US?

Moderated by: Mr Pieter de Bruin, Head of Tourism: FNB Commercial Panel: Ms Gillian Saunders, Principal: Grant Thornton Strategic Solutions Mr Trevor Ward, MD: W Hospitality Group Dr Auliana Poon, MD: Tourism Intelligence International

10:00 – 10:30 FACE TO FACE INTERVIEW WITH GLOBAL LEADER Interview with Mr Arthur de Haast, Global CEO: Jones Lang LaSalle Hotels Interviewed by Dr Auliana Poon, MD: Tourism Intelligence International 10:30 – 11:30 AFRICA’S INVESTMENT RISK CONSIDERATION & INSURANCE Moderated by: Mr John Stapleton, Regional Manager: SATIB Risk Solutions Panel: Mr Jasper Ward, Senior Broker: Tribe Insurance Brokers Mr John McMillan, MD: RANI Hotels & Resorts Mr Anthony O’Reilly, Regional Business Development Manager Africa: Chartis South Africa 11: 30 – 11:50

HICA Travel & Hospitality Awards

11:50 – 12:30

NETWORKING BREAK

12:30 – 14:00

BREAK AWAY SESSIONS

Session 1

TRAVEL & HOSPITALITY TRANSFORMING MOZAMBIQUE’S ECONOMY

Best New Hotel Investment Award Excellence in Travel and Tourism Reporting Award

Moderated by: Mr Adrian Frey, MD: Club of Mozambique LDA Panel: Mr Mark Davies, Director: VM Construction, Benguerra Lodge & Villas Mr Pedro Couto, Partner: Gamito, Couto, Gonçalves, Pereira, Castelo Branco & Associates Ms Irene Visser, Programme Manager: Tourism Mozambique Mr Helder Chambal, Senior Attorney: Gamito, Couto, Gonçalves, Pereira, Castelo Branco & Associates

Session 2

REMOVING BARRIERS TOWARDS TRAVEL & TOURISM IN NIGERIA

Moderated by: Mr Trevor Ward, MD: W Hospitality Group Panel: Mr Kevin Fick, Director: MITC Eldorado Marketing Mr Michael O’Malley, Director: Westport Property Group Mr Godfrey Tapela, Investment Officer: IFC Mr Rob Becker, Chief Financial Officer: Sun International

Session 3

BOUNDLESS SOUTHERN AFRICA’S DEVELOPMENT OPPORTUNITIES Moderated by: Mrs Chipo Mtasa, CEO: Rainbow Tourism Group Panel: Ms Deborah Kahatano, Director: Boundless Southern Africa Office Dr Bartolomeu Soto, Director of Conservation: Department of Tourism Mozambique Mr Wisdom Mdumiseni Dlamini, Director: Swaziland National Trust Commission Ms Ndaipaneyi Mukwena, Area Manager Southern Africa: Zimbabwe Tourism Authority Ms Rose Chivumba, Tourism Development & Marketing Manager: Zambian Wildlife Authority

14:00 – 15:00

NETWORKING LUNCH BREAK

2009 Hospitality Investment Conference Africa 27

programme

15:00 – 16:30

BREAKAWAY SESSIONS

Session 4

SEARCHING FOR DEVELOPMENT OPPORTUNITIES IN ANGOLA

Session 5

Moderated by: Mr Jorge Jover, CEO: MITC Investimentos SARL Panel: Mr Andrew McLachlan, Vice President Business Development Africa and Indian Ocean Islands: Rezidor Hotels Dr Apolinario de Oliveira Diogo, Director of Statistics & Planning: Department of Tourism Angola Mr Amaro Francisco, General Director: Angola Institute of Tourism, INFOTUR Mr Trevor Ward, MD: W Hospitality Group

CREATING REAL ESTATE VALUE THROUGH ANCILLARY DEVELOPMENTS

Moderated by Mr Wayne Grews, MD: Group RCI, Africa Panel: Mr Deon Viljoen, Director of Operations: Southern Sun Lifestyle Resorts Mr Andrew Hubbard, CEO: Queensgate Hotels & Leisure Mr Brian Singer, CEO: Singer Group Mr Brett Archibald, Senior VP Business Development EMEA: GroupRCI

Session 6

WHO ARE THE INVESTORS OF TODAY AND TOMORROW IN AFRICA Moderated by: Ms Jackie Asheeke, CEO: Federation of Namibian Tourism Associations Panel: Mr Clive Bennett, MD: Red Carnation Hotels Mr Martin Kearns, MD: EuroCape Mr Riaan Gous, Director: Starwood Africa Mr Paschal Phelan, Chairman: Phelan Holdings 19:30 – 22:00 NETWORKING DINNER

Venue: Lekgotla Restaurant, Nelson Mandela Square: Sandton City

FRIDAY, 6 NOVEMBER 2009 07:30 – 08:30 08:30 – 08:45

REGISTRATION

Coffee, Tea and Pastries served on arrival

WELCOME REMARKS & PRIZE DRAW

Ms Mmatšatši Marobe, CEO: Tourism Business Council of South Africa

08:45 – 09:15

FACE TO FACE INTERVIEW: THE GREEN IMPERATIVE – SUSTAINABILITY VS PROFITABILITY IN HOSPITALITY

Interview with Mr Steve Fitzgerald, Outgoing CEO: &Beyond Interviewed by: Mr Gareth Haysom, Research Fellow: The Sustainability Centre

09:15 – 10:15

10:15 – 11:00

11:00 – 11:45

RETURN ON INVESTMENT BAROMETER – DOES IT PAY TO BUILD HOTELS IN SOUTH AFRICA?

Moderated by: Mr Kamil Abdul Karrim, MD of Pam Golding Tourism & Hospitality Consultancy Panel: Mr Arthur Gillis, CEO: Protea Hotels Mr Gerald Nelson, CEO: Hospitality Property Fund Mr Andrew Hubbard, CEO: Queensgate Hotels & Leisure Mr Serge Hattier, Senior Vice President Development: ACCOR, Africa & Middle East Mr Kevin Page, Group Development Director: Southern Sun

WHAT THE TRAVEL DEMANDS ARE TELLING US

Moderated by: Ms Gillian Saunders, Principal: Grant Thornton Strategic Solutions Panel: Dr Auliana Poon, MD: Tourism Intelligence International Mr Ross Kata, Regional Director Africa: Expedia NETWORKING BREAK

2009 Hospitality Investment Conference Africa

programme

11:45 – 13:15

BREAKAWAY SESSIONS

Session 7

Session 8

MANAGEMENT AGREEMENTS VS LEASE AGREEMENTS

Moderated by: Mr Joop Demes, CEO: Pam Golding Hospitality Panel: Mr Nawfal Bendefa, Vice President International Hotel Development: Marriott Mr Patrick Finn, Senior Director Acquisition & Development: Starwood Hotels Mr Pieter de Bruin, Head of Tourism: FNB Commercial Mr Pablo Berben, Director of Hotel Development Africa: Hilton

WHAT’S THE IMPACT OF THE DEBT CRISIS ON LENDING AND DEVELOPMENT?

Moderated by: Mr Shingi Munyeza, Group CEO: African Sun Hotels Panel: Mr Mikko Kuuskoski, Director: AfriNord Hotel Investments Mr Jabu Khethe, CEO: FNB Africa Mr Glenn Stutchbury, MD: Africa Albida Mr Mbuyazwe Magagula, Head of Tourism: Industrial Development Corporation

Session 9

SUSTAINABLE DEVELOPMENT, COMMUNITY BENEFICIATION AND PROFITABILITY - CAN THEY COEXIST?

Moderated by: Mr Gareth Haysom, Research Fellow: The Sustainability Centre Panel: Ms Heidi Keyser, Director: Responsible Tourism Centre Mr Barry Garner, MD: Resysta Africa Ms Sindiswa Nhlumayo, Deputy Director General: Department of Tourism, South Africa Mr Vincent Joyner, MD: HIPinAfrica

13:15 – 13:45

HICA TRAVEL & HOSPITALITY AWARDS

13:45 – 15:30

Guest Speaker – Dr Danny Jordaan, CEO: 2010 FIFA LOC –“Its Africa’s time and South Africa is ready for the Soccer World Cup”

16:00 – 18:00

OPTIONAL SIGHTSEEING TOURS

Upcoming Industry “Mover & Shaker” Award Tourism Business Leadership Award

See you at HICA 2010 – Oct 31 to Nov 2!

conference 2009 Hospitality Investment Conference Africa 29

Ms. Mmatšatši Marobe CEO Tourism Business Council of South Africa Mmatšatši Marobe worked as a tourist guide initially and later joined the then National Parks Board (now SANParks) being responsible for strategic marketing. This was followed by appointments at both the KwaZulu Natal and Limpopo tourism authorities. During this time, Marobe also trained as a tourist guide for KZN, Limpopo and Gauteng. She joined the TBCSA at the start of 2006 as COO and took over the position of CEO in 2007. Mr. Tommy Edmond CEO Tourvest Group Tommy Edmond joined the Tourvest group in July 2003 as CEO. He was previously with Absa Corporate Merchant Bank as head of the merchant banking division. Prior to this he held various management positions within the Malbak stable. He holds a BComm, CA (SA) and an AMP Harvard. Prof. Brian Kantor Economist and strategist Investec Private Clients Professor Brian Kantor became Professor Emeritus at the University of Cape Town in 2007. He has held various academic posts locally and internationally, published papers and has served as a member of SA government commissions such as the Competition Commission. He has consulted to a number of South African corporate companies such as Volkswagen (SA) Ltd, Rightford, Searle Tripp (later Ogilvy Mather SA) and BMW SA, among others. Dr. Rudolf Gouws Chief Economist Rand Merchant Bank Rudolf Gouws obtained a masters degree in Economics from the University of Stellenbosch in 1971. He became Chief economist of the Nedbank Group in 1979. From 1986 to June of 2009 he was Chief Economist of Rand Merchant Bank. He will soon be relocating to the Cape, but remains an economist with RMB and a member of its board. He chaired the Economic Policy Committee of BSA (Business South Africa) from 1996 to 2003, and served in Nedlac. He is an honorary professor of economics at the University of Stellenbosch. Dr. Iraj Abedian CEO Pan African Capital Holdings Iraj Abedian is the founder and Chief Executive of Pan-African Capital Holdings (Pty) Ltd. He was professor of economics at the University of Cape Town, before joining Standard Bank Group in 2000 as Group Chief Economist. He obtained his BA (Honours) and MA in Economics from UCT. He received his PhD in Economics from Simon Fraser University in Canada in 1993. He is an honorary Professor of Economics at Pretoria University and serves on a range of organisations, including the Board of SA Tourism and the GlenRand MIB Ltd.

Mr. Nawfal Bendefa VP of International Hotel Development Marriott Nawfal Bendefa started his career in hospitality with operations roles at Walt Disney World and Marriott International in Orlando, Florida. He then joined Marriott’s Capital Markets Group in 2001, followed by Marriott’s London regional headquarters in 2003, filling positions in Valuation, Project Finance and Asset Management for the group’s various lodging products throughout Europe, Middle East and Asia. From 2007, he led Marriott International’s development efforts for all its brands in Africa. He is a graduate of the University of Florida and a CFA Charter holder. Mr. Arthur de Haast Global CEO Jones Lang LaSalle Arthur de Haast is the Global CEO of Jones Lang LaSalle Hotels, responsible for a team of 220 hotel experts located in 32 offices worldwide in 19 countries. De Haast has extensive experience within the global hotel market having led a wide range of both transactional and advisory assignments. He is a regular commentator on the global hotel investment market, speaking frequently at major conferences, and is regularly quoted in the world’s leading business publications. MR. Kurt Ritter CEO and President Rezidor Hotel Group Kurt Ritter is the President and CEO of The Rezidor Hotel Group and has been with the company for over 30 years. Ritter was awarded an Honorary Doctorate of Business Administration in Hospitality by Johnson & Wales University, Prudence, USA in 1997. Ritter received several awards - such as “Corporate Hotelier of the World 2002”, the “International Hotel Investment Forum (IHIF) Lifetime Achievement Award”, and the “Brillat Savarin plaque”. In early 2007 he was also named a Carlson Fellow. Mr. Serge Hattier Senior Vice President Development ACCOR Hospitality, Africa & Middle East Serge Hattier was the appointed senior VP of the Accor Hospitality Development team for the Middle East and Africa (MEA) region in 1998. Hattier played a key role in the rapid expansion of the Accor Group in the Far East and Europe from 1985 to 1992. Thereafter, he managed the Mercure Chain expansion until 1997. Hattier holds a degree in Human Sciences and is a graduate of the Paris Hotel School.

Mr. Joop Demes CEO Pam Golding Hospitality Joop Demes, has 23 years of hands-on experience in the Southern African hospitality and leisure industry. Founder shareholder and CEO of Pam Golding Hospitality and Managing Director of Pam Golding Hotels which he started in 1997, Demes formed Pam Golding Lodges and Guesthouses (Pty) Ltd in 2006, Pam Golding Hospitality & Tourism Consultants (Pty) Ltd in 2007 and Pam Golding Restaurants in 2008. Demes has been the mastermind of a number of successful condominium (sectional title) hotel applications in Southern Africa, and consults internationally in this regard. He is regarded as the continent’s specialist in condominium and fractional applications at the top end of the hospitality industry. Mr. Andrew Payne CEO Wilderness Safaris Andrew Payne was educated at the University of Cape Town where he qualified as a Chartered Accountant. Payne joined Wilderness Safaris in 1994 after having worked with the company in Botswana for the previous year. When Andy joined the company, his role was to grow Wilderness Safaris in the region of Southern Africa. Payne took over from Malcolm McCulloch as CEO of Wilderness in 2007. Mr. Jorge Jover CEO MITC Investimentos SARL Since becoming CEO, Jorge Jover has focused on accelerating the company’s Angolan leadership in operations that range from industry to agriculture, general services to construction and finances and expanding its premier position in the agricultural processing value chain. A graduate of the University of Montevideo, with a Bachelor degree in Agronomic Engineering, Jover began his international career with the Angolan Government. Jover supports different Angolan Development Programmes. He is a member of the Corporate Council on Africa, the USAngolan Chamber of Commerce. Mr. Steve Fitzgerald Former CEO &Beyond Steve Fitzgerald has been one of the most influential personalities in the high-end sector of South African tourism. He trained as a Chartered Accountant in Cape Town and then left the profession at the first opportunity to open the Arniston Hotel on the southern tip of Africa with his wife Nicky. In 1994 he joined the founders of CC Africa, now &BEYOND, in the role of Managing Director. He was responsible for growing the business and expanding the commercial ecotourism model across Africa and into India. Fitzgerald stepped down as CEO of &Beyond in January but continues to consult to the group.

Mr. Shingi Munyeza Group CEO African Sun Hotels Trained as an Accountant with Ernst & Young, led a consortium of Zimbabwean businesspersons to acquire a 35% stake in Zimbabwe Sun Hotels in August 2002 and assumed the role of CEO where he is presently driving the group’s expansion and re-branding strategy to a Pan African hospitality group in Sub-Saharan Africa. Munyeza is currently the Chairman for Zimbabwe Tourism Authority. Munyeza is a holder of a Postgraduate qualification in Accounting, Marketing, Advertising and Hotel Management. Minister Marthinus van Schalkwyk Tourism Minister Dept of Tourism SA Minister Marthinus van Schalkwyk held the position of SA Minister of Environmental Affairs and Tourism since April 2004. He was appointed Minister of Tourism in May 2009. Minister van Schalkwyk holds a B Proc degree from Rand Afrikaans University, as well as a Bachelor of Arts honours degree in Political Science and a Masters of Arts degree in Political Science. In addition to holding the position of Premier of the Western Cape between 2002 and 2004, Minister van Schalkwyk has been a Member of Parliament since 1990. Ms. Sindiswa Nhlumayo Deputy DG Dept of Tourism SA Sindiswa Nhlumayo’s responsibilities extend to providing leadership in the development and implementation of policies and strategies that will grow tourism in South Africa, and ensuring that destination SA remains globally competitive. Nhlumayo is the former Head of the Tourism Black Economic Empowerment Council and prior to this was a Special Advisor to the Minister of Environmental Affairs and Tourism, on tourism-related issues. She was once a Chief Director for Tourism in the Western Cape. Holding a Masters of Science in Tourism Management, Nhlumayo currently serves on the Fedhasa, TEP, TGCSA, TECSA and RETOSA boards. Mr. Pieter de Bruin Head of Tourism FNB Commercial Pieter de Bruin started his career in the jewelry packaging industry as Marketing Manager for an international jewelry packaging company. He then moved into banking in 1997, starting with ABSA where he held various positions in franchising, retailing, production and tourism. Among his achievements, de Bruin has been a major force in encouraging banks to focus on the tourism industry. He sits on the Board of the TBCSA and holds a B. Com degree in Marketing Management as well as an MBL Degree from UNISA.

speakers

Ms. Gillian Saunders Principal Grant Thornton Strategic Solutions Gillian Saunders holds a BSc (Hons) degree in hotel, catering and tourism management - University of Surrey, UK (1981) and an MBA degree (cum laude) - Wits Business School (1988). Most recently, Saunders is the head of all Grant Thornton Specialist Advisory Services, but she began her career at Grant Thornton as senior consultant (1988) and then held the positions of director of Grant Thornton Strategic Solutions (1990); and principal of audit firm and head of Grant Thornton Strategic Solutions (1997). Mr. Trevor Ward MD W Hospitality Group Trevor Ward is a specialist consultant in the hospitality and leisure industries. Ward is the Principal of the W Hospitality Group with offices in the UK, Kenya, Zimbabwe, Nigeria and Angola. In addition, he is one of the Africa representatives for TourismROI, the world’s premier Travel & Tourism management and investment resource. He is regarded as one of the foremost experts on the hotel industry in sub-Saharan Africa, and is engaged primarily in development consultancy ranging from investment appraisals to operator selection, owner’s representation and asset management. Dr. Auliana Poon MD Tourism Intelligence International Dr. Auliana Poon heads Tourism Intelligence International, a leading international consulting company that provides innovative solutions for the travel and tourism industry. Poon is an analyst, co-author and editor of many of Tourism Intelligence International Publications. An Economist by training, Poon graduated with a B.A (hons) and and M.Sc (Economics) from the University of the West Indies, Trinidad. She attended one of the leading European Schools, the Science Policy Research Unit at Sussex University (England), where she graduated with a D. Phil (Tourism & Technology) in 1988. Mr. John Stapleton Regional Manager SATIB Risk Solutions John Stapleton has been in the insurance industry for more than 18 years, working for organisations such as Glenrand M.I.B and Alexander Forbes. He was educated in the Eastern Cape and holds a BA from Rhodes University as well as an MBA from the Nelson Mandela Metropolitan University. He is currently Regional Manager for SATIB Risk Solutions, which focuses on developing and providing comprehensive, tailor-made risk management products and services designed to suit the hospitality, tourism and wildlife industries. These are not necessarily insurance products, but encompass all aspects of risk management, and asset, liability and income protection.

Mr. Jasper Ward Senior Broker Tribe Insurance Brokers Jasper Ward has over 20 years in the insurance industry, the last 14 of which were with Alexander Forbes. Currently working at Tribe Insurance Brokers (Pty) Ltd (formerly Glencairn) as a reinsurance broker, Ward’s speciality is with political risks emanating from servicing clients’ needs where they had a political exposure particularly in Africa. At Alexander Forbes, Ward specialised in the major accounts areas, mostly with an international exposure mainly in SA, the rest of Africa, Australia and Europe. Mr. John McMillan MD Rani Hotels & Resorts John McMillan’s appointment in the post of Managing Director ensured the realisation of Rani Resorts’ vision to offer remarkable safari and marine experiences to luxury travellers with a spirit of adventure. McMillan trained as an accountant in Zimbabwe, then started his career in the Hotel Industry as Financial Director of Cresta Hotels. Some years later, he moved to the Meikles Hotel Group as Operations Director before moving to Rani. Mr. Anthony O’Reilly Regional Business Development Manager Africa Chartis South Africa Anthony O’ Reilly worked for Mutual & Federal from September 1992 to June 2000 as the Corporate Manager in Cape Town responsible for Commercial, Energy & Marine. In July 2000, he joined AIG (now Chartis) as the Branch Manager of the Cape Town office. In 2003 Anthony took over as the Cape Regional Manager and in 2005 assumed the National Branch Manager for South Africa. In February 2009 he accepted the role of Regional Business Development Manager for Africa. Mr. Adrian Frey MD Club of Mozambique LDA Adrian Frey is a Swisstrained lawyer who has been living and working in Mozambique for 12 years. In that time he was the managing partner of one of the biggest law firms in Mozambique. He has created several publications on time share law, land law and labour law designed for investors and businesspeople in Mozambique. He currently serves on the board of several leading companies in Mozambique, including Pam Golding Mozambique and at the Belulane Free Zone. He is also the owner of Club of Mozambique, an online publisher based in Maputo.

Mr. Mark Davies Director VM Construction, Benguerra Lodge; Villas Mark Davies, resident in Mozambique, has contributed to the growth of VM Construction from a small district construction company into a niche construction company operating in the southern region of Mozambique. The business specialises in providing project management and turnkey construction services for the tourism industry. As part of his MBL studies at UNISA, Davies wrote a research thesis on “The Challenges of Doing Business in Mozambique”. Mr. Pedro Couto Partner Gamito, Couto, Gonçalves, Pereira, Castelo, Branco & Associates Pedro Couto graduated from the Universidade Eduardo Mondlane Law School, as well as the University of Lisbon and has worked as an attorney for Couto, Gonçalves Pereira, Castelo Branco e Associados since October 1998. Couto has worked on several foreign investment and privatisation projects as well as several cases on Maritime and Transport Law, litigation and arbitration, contracts, insurance, legal opinions, civil, labour, administrative and tax law. Ms. Irene Visser Programme manager Tourism Mozambique Irene Visser joined IFC Advisory Services in April 2005 and is responsible for programme design and management for IFC’s advisory services in the tourism sector. Currently, Visser is Tourism Program Manager for the IFC Investment Climate Team for Africa, and is responsible for the management of the Mozambique Tourism Anchor Investment Program, and the Madagascar eco-tourism Investment Program. Both projects are joint initiatives of the respective governments and work to secure highquality tourism investment in specially selected tourism sites. Mr. Helder Chambal Senior attorney Gamito, Couto, Gonçalves, Pereira, Castelo, Branco & Associates Helder Chambal has a master degree in International Commercial Law from Universidade Eduardo Mondlane. He has worked as a senior attorney in the areas of tourism and conservation areas, property development and land legal expert for h, Gamito, Couto, Gonçalves Pereira, Castelo Branco e Associados since July 2008 and before that, worked as Head of the Minister’s office (20002003) in the Ministry of Tourism, Head of Legal Cabinet in Ministry of Tourism (2005-2007) and National Deputy Director for Tourism and Chairman of the Periodical Habitation Commission and Residential Tourism in the Ministry of Tourism in Mozambique (2007-July 2008).

Mr. Godfrey Tapela Investment Officer IFC Godfrey Tapela is a Senior Investment Officer in IFC’s Global Manufacturing and Services Department based in Johannesburg, South Africa. His main focus is business development and processing of new investments in the tourism, retail and commercial property sectors in SubSaharan Africa. Tapela, who joined IFC in 2001, holds a Masters in Business Leadership from UNISA, a BSc Electrical Engineering Honours degree from the University of Zimbabwe as well as a Graduate Diploma in Marketing from the Institute of Marketing Management. Mr. Rob Becker Chief Financial Officer Sun International Rob Becker holds a BAcc, CA (SA) and MBA and was appointed to the Sun International Board in 2005. Becker is also a director of various group companies, including SIML, RAH and SFI Resorts. He joined the group in 2005 having spent two and a half years at Nampak and seven years at Robertsons Holdings where he held the positions of Chief Financial Officer and Group Financial Director respectively. He has extensive experience in corporate finance and local and offshore financial management. Mrs. Chipo Mtasa CEO Rainbow Tourism Group Chipo Mtasa heads of one of Zimbabwe’s largest hotel groups, the Rainbow Tourism Group. A year after her appointment in 2005, she was elected to lead the Zimbabwe Council for Tourism. She has landed two prestigious awards – the Zimbabwe Tourism Authority’s “Best Tourism Manager in the Private Sector Award” and the Zimbabwe National Chamber of Commerce’s Business Woman of the Year award for 2007. She holds a Bachelor of Accountancy from the University of Zimbabwe and is a member of the Institute of Chartered Accountants of Zimbabwe.

speakers

Ms. Deborah Kahatano Director Boundless South Africa Deborah Kahatano has more than 15 years of practical experience in Environment and Natural Resource Management Eastern and Southern Africa. She is currently working as a Manager for the Transfrontier Conservation Areas (TFCA) 2010 Development Programme (Boundless Southern Africa). Kahatano has outstanding experience in the field of environment, natural resource management and agribusiness with bilateral and multilateral international development organisations including USAID, UNDP/GEF (The Global Environment Facility) and IUCN-The World Conservation Union. Dr. Bartolomeu Soto Director of Conservation Department of Tourism Mozambique Dr Bartolomeu Soto joined the National Directorate for Forest and Wildlife within the Ministry of Agriculture, Mozambique in 1990. In 1992 he was appointed Head of Wildlife Department. Trained as a Veterinarian, he also holds a BVSc Honors in Wildlife Diseases from the University of Pretoria (1993) and an MSc in Environment and Development from the University of KwaZulu-Natal (2004). Dr. Soto was led the first phase of the Transfrontier Conservation Areas Project, which became effective in May 1997 funded by the GEF through the World Bank. Dr. Soto became Project Manager for the Mozambique TFCAs and was appointed the National Director of Conservation Areas in 2007. Mr. Wisdom Dlamini Director Swaziland National Trust Commission Wisdom Dlamini is the Director of Nature Conservation and National Parks in Swaziland working under the auspices of the Swaziland National Trust Commission. He holds a BSc degree, a Postgraduate Diploma, an MSc degree, an MBA, and a Diploma in International Environmental Law. His 11-year experience spans a wide variety of scientific and management areas such as environmental science, environmental law, protected area management and ecotourism. Dlamini was, up to April this year, employed as the International Coordinator for the Lubombo Transfrontier Conservation Area. Ms. Ndaipaneyi Mukwena Area Manager for Southern Africa Zimbabwe Tourism Authority Ndaipaneyi Mukwena is Zimbabwe’s Tourism Area Manager for Southern Africa. Mukwena has held positions of Hotel General Manager, Chairperson and Lecturer of the Department of Tourism and Hospitality Management at the Midlands State University (Zimbabwe). Mukwena has broad experience in tourism management and marketing. She is a holder Bachelor of Business Administration degree (BBA) from Schiller International University (Strasbourg and London) and Master of Business Administration degree from Middlesex University (London).

Ms. Rose Chivumba Tourism Development and Marketing Manager Zambian Wildlife Authority Rose Chivumba was appointed Commercial Manager of the Zambia Wildlife Authority in March 2002. In 2007, the title was changed to Tourism Development and Marketing Manager. Her responsibilities in Zambia Wildlife Authority include tourism business development and marketing, tourism business management, tourism product development, compliance and revenue collection. Chivumba holds a B.A Ed, P.G.Dip. Wildlife Conservation & Management, Dip. Protected Areas Planning, Dip in Land Tenure & Legal Issues in Protected Areas, P.G. Dip. Management and Master of Business Administration (MBA). Mr. Andrew Mclachlan Vice President Hotel Development: Africa and the Indian Ocean Islands Rezidor Group Andrew McLachlan is responsible for growing Rezidor’s portfolio of hotels and brands in Africa and the Indian Ocean. In December 2006, McLachlan joined the Rezidor Hotel Group as Director Business Development. He established the group’s presence in the region through a dedicated development office in Cape Town. McLachlan is the Managing Director of Afrinord Hotel Investments, a €35m financial Joint Venture Agreement the Rezidor Hotel Group has signed with four Nordic Government Funds to expand its presence in Africa. Mr. Wayne Grews MD Group RCI Africa Wayne Grews was appointed Managing Director for Group RCI Africa effective October 1, 2007. Prior to this position, he was a Board Director at RTT responsible for creating and implementing a consumer and client focused business model across people, systems and processes. He has also held a number of positions at Energizer, based for some time at the company’s global headquarters in the USA, as well as at General Mills. Grews completed a Bachelors of Science (Marketing) in 1984 from Quincy University in the US. Mr. Deon Viljoen Chairman VOASA & Director of Southern Sun Vacations Deon Viljoen is perhaps best known for his role in developing the Sandton Convention Centre in Johannesburg. From 1998 to 2003, Viljoen oversaw the building of the centre and managed the pre-opening and opening in 2000. In 2003, Viljoen was seconded to the Johannesburg Tourism Company, which he established. In 1998, Viljoen moved back to Southern Sun to lead a division of nine resorts (six of them timeshare) as well as a full-range of auxiliary business units.

Mr. Andrew Hubbard CEO Queensgate Hotels & Leisure After matriculating, Andrew Hubbard left for Germany where he studied computer technology at Volkswagen. In 1987 he started Quick Bit GmbH, a software consultancy. In 1988, he co-founded financial services company FTH-Finanz GmbH. After four years of specialising in high net-worth individual financial planning and management, Hubbard and some partners started a real estate company in 1992. It was the first to offer investments into the South African property market (i.e. Radisson Hotel) to German investors in 1996/1997, which eventually resulted in the formation of Queensgate Holdings. Mr. Brian Singer CEO Singer Group Brian Singer obtained a B.Soc.Sci. (Economics) degree from the University of Cape Town and thereafter completed a postgraduate (Hons) B Compt degree. After completing his articles at the auditing firm Ernst & Young, Singer based himself within his family’s travel agency – a platform from where he, and his brother, launched a variety of travel, hotel and restaurant businesses. Today, the Singer Group of Companies owns several travel businesses, restaurants, hotels - and develops hotels and leisure properties. Mr. Brett Archibald SVP Business Development EMEA Group RCI Brett Archibald, who took up his post in 2007, has responsibility for a team of 90 people growing existing business, securing new entrants in the market place and creating strategic TORE relationships across Europe, Middle East, Africa and India. Previously he ran his own travel company – VEA, based in Johannesburg. He spent a year working for RCI in Hong Kong; held the position of md of RCI Europe and worked at the Tourvest Group in South Africa as Director – Global Business Development and E-Commerce. Ms. Jackie Asheeke CEO Federation of Namibian Tourism Associations (FENATA) Jacqueline Asheeke has been CEO of FENATA since June 2003 representing the 11 private sector tourism association and their more than 1 400 tourism entities in Namibia. She has 25 years of professional experience, 14 of those as a diplomat in Namibia. She is a noted expert on the Namibian tourism economy and is highly regarded advocate for the private sector tourism industry. She has written widely on tourism and poverty alleviation, sustainable tourism and rural development, as well as transformation of the Namibian tourism industry and tourism growth strategies.

Mr. Clive Bennett MD Red Carnation Hotels Clive was recruited by Red Carnation Hotels for the General Manager position at The Twelve Apostles Hotel in June 2004. In December 2004 he was appointed Managing Director of Bushmans Kloof Wilderness Reserve and Retreat and in 2006 he was appointed Managing Director of Red Carnation Hotels in South Africa. He negotiated and concluded the purchase of the Oyster Box Hotel in Umhlanga on behalf of Red Carnation Hotels in November 2006. Mr. Martin Kearns MD EuroCape Martin Kearns is a Chartered Engineer and holds an honours degree in engineering from the University of Leeds in the UK. Martin has worked as a consultant engineer with international consultancy firm, Mott MacDonald, in property and infrastructure projects in UK, Hong Kong, China, Indonesia and Australia. In 2004, Martin moved to SA to establish the operation and business of Eurocape and now heads up the South African operation of Howard Eurocape as CEO of Eurocape Holdings (Pty) Ltd. Mr. Paschal Phelan Chairman Phelan Holdings Paschal Phelan a native of Ireland came to Cape Town to enjoy an early retirement in 2002. Phelan had been a prominent leading businessman in Food and Agricultural, then the largest export sector of the Irish economy. His private company was in the top largest 50 companies in Ireland. He was also a leading property investor. His first large development in South Africa was the new five-star ‘Cape Royale Luxury Hotel and Spa’. His group, Phelan Holdings’, latest project is the new 152 suite ‘Hotel Missoni’ in the Cape Town CBD. Mr. Gareth Haysom Programme Coordinator: Sustainable Agriculture Programme Sustainability Institute South Africa Gareth Haysom’s initial training was in the hospitality industry. On leaving the Spier Leisure Corporation in 2003, where he was the Managing Director, he worked on pro-poor projects and on transformation-oriented activities for the tourism industry. At the Sustainability Institute, an international living and learning centre, he lectures and manages the project. He also works on the Sustainable Communities Project, initiated by the Development Bank of Southern Africa. Rooted in an agricultural community, The Sustainability Institute explores creating a more equitable society that sustains rather than destroys the eco-system.

speakers

Mr. Kamil Abdul Karrim MD Pam Golding Tourism & Hospitality Consultancy Kamil Abdul-Karrim heads Pam Golding Tourism & Hospitality Consulting, a specialist consulting division providing strategic consulting services to the hotel industry in SA. Abdul-Karrim has trained as an Accountant at UNISA and spent his earlier career in accounting and finance developing into CFO for two global companies in the service environment. He then embarked on post-graduate studies completing a PDM-Public Policy Development and Administration at Wits University in 1996 and went on to achieve his MBA with Bond University in Australia during 1998. Abdul-Karrim is currently Non-Executive Director of the JSE listed Hospitality Property Fund as well as Quantum Property Group. Mr. Arthur Gillis CEO Protea Hotels Arthur Gillis is the Group MD of Protea Hotels. Gillis has been with Protea since the company started in 1984. His first job after graduating from Hotel School was assistant purchaser at the Heerengracht Hotel, which subsequently became one of the first hotels under the Protea banner. Among other things, he has served as Chairman of the Technikon Witwatersrand Hotel School Development Committee, Vice President of the Hospitality Industry Training Board and Member of the South African Tourism Board Standards Committee. Mr. Gerald Nelson CEO Hospitality Property Fund Gerald Nelson graduated with a BSc from the University of the Witwatersrand in 1977 and has held a range of directorships with, among others Grapnel Property Group and Sycom Property Fund Managers. Nelson has worked in property development for UAL Merchant Bank as well as Old Mutual Properties. He is a member of the Association of Property Unit Trust Management Companies. As CEO of the Hospitality Property Fund, Gerald has overseen the listing of the company on the JSE in 2006. Hospitality Property Fund is the first local specialist listed property fund invested exclusively in hotels and resorts. Mr. Ross Kata Regional Director Africa Expedia, Johannesburg South Africa Ross Kata has been Market Manager of Expedia Inc in Africa since 2003. Kata spent seven years in the hotel and tour operator industry in Europe and APAC. With that experience and knowledge, he was able to bring Expedia Inc to Africa. His primary role on behalf of Expedia Inc is negotiating airline, hotels and destination services deals with considerable expertise in online retail, merchandising, SEO and SEM. He has an extensive knowledge of the African online industry and expertise in generating viable destination strategies to ensure longevity and profitable results.

Mr. Patrick Finn Senior Director Acquisition and Development Starwood Hotels Patrick Finn is Senior Director of Acquisitions & Development for Starwood Hotels & Resorts Worldwide, Inc. He is responsible for executing Starwood’s growth strategy through the development of management and franchise partnerships in Africa and the Middle East. Finn has successfully led teams of specialist disciplines in closing transactions for upscale and luxury hotels across Europe, Africa, and the Middle East. He has extensive experience in project underwriting, as well as strategic planning for Starwood’s EMEA division. Mr. Pablo Berben Director of Hotel Development Africa Hilton Pablo Berben joined the Hilton Development team in March 2009, working from his base in Brussels to drive development of the Hilton Portfolio of Hotel Brands throughout Africa. A finance specialist with a business degree, Berben has previously worked with a ‘big four’ accounting and consulting firm, as well as for major hospitality brands throughout Europe, Africa and the Middle East. Mr. Mikko Kuuskoski Director AfriNord Hotel Investments Mikko Kuuskoski currently holds the position of Senior Investment Manager at Finnish Fund for Industrial Cooperation Ltd (Finnfund) and Director at Afrinord. Finnfund is one of the founding shareholders of Afrinord, a captive finance company established to support Rezidor’s business operations in Africa. Kuuskoski has over a decade’s experience from international corporate and project finance with Citigroup in Finland, the United Kingdom and Sweden as well as Nordea in Finland. He has extensive experience on working with noninvestment grade borrowers. Mr. Jabu Khethe CEO FNB Africa Jabulani Richard Khethe is the Chief Executive Officer of FNB Africa. He has extensive banking, insurance and leadership experience with financial institutions in South Africa and is responsible for the expansion and strategic development of FNB into Africa. Khethe is a member of the Institute of Bankers in South Africa.

Mr. glenn stutchbury MD Africa Albida Tourism Glenn Stutchbury is the MD of Africa Albida Tourism. Born and educated in Zimbabwe, Glenn has a CHA in Hospitality from the American Hotel and Leisure Association.He has been GM of numerous hotels before taking the post of Regional Operations and Commercial Director of the Meikles Africa Hotels Group. Glenn is currently a Vice President of the Zimbabwe Council for Tourism (ZCT). Mr. Mbuyazwe Magagula Head of Tourism Industrial Development Corporation Mbuyazwe Magagula is with the Tourism Unit of the Industrial Development Corporation of South Africa where he is responsible for a book totalling USD210m (R3bn) with over 100 clients mainly in the accommodation sub-sector. The unit provides funding to viable businesses in the tourism sector throughout Africa. Prior to joining IDC he worked for Honeywell Hi-Spec Solutions as simulation engineer developing training simulators for petrochemicals plants. He holds a BSc. Engineering (Chemical) and a BComm. Ms. Heidi Keyser Director Responsible Tourism Centre Heidi Keyser has 17 years’ experience in tourism development in South Africa, Africa and Asia. A qualified Town and Regional Planner, Keyser specialises in responsible tourism and tourism destination development. She has contributed to the 2002 National Responsible Tourism Guidelines, DEAT’s Responsible Tourism Manual and Handbook and Responsible Tourism Planning Framework and Guidelines for Gauteng. She has a founding member and executive director of the International Centre for Responsible Tourism South Africa. Mr. Barry Garner MD Resysta Africa Barry Garner was born in Zimbabwe and after finishing high school, completed three National Diplomas in Hotelkeeping (honours) at the Bulawayo Technical College. Thereafter he joined Zimbabwe Sun Hotels for five years, where he rose to the position of Group Training Manager. He immigrated to South Africa in 1983 and in 2002 he founded, with German partners, MBM Africa, purveyors of exclusive outdoor furniture, now found in eight retail showrooms countrywide. He introduced Resysta, an exceptional wood composite, into the South African market in 2009.

Mr. Vincent Joyner MD HIP Africa Vincent Joyner has been in the Hospitality industry since the age of 17. He is the founder of Hospitality Investment Partners in Africa after having spent almost 18 years with Accor Hospitality. He holds a Masters in International Hospitality Management from Cornell University (USA) and the ESSEC Graduate School of Management in France and a Bachelors of Arts Degree in Hotel Management. He is fluent in French. HIPinAfrica is also launching a fully “sustainable” hotel chain in Arica. Joyner has also founded Invincible Education which sets up a network of ‘free universities’ around Africa focusing on entrepreneurship. Dr. Danny Jordaan CEO 2010 FIFA LOC Danny Jordaan is the Chief Executive Officer of the 2010 FIFA World Cup Organising Committee. Over the years he has been a senior lecturer, politician, sports administrator, businessman and a political activist in the struggle against apartheid in South Africa. Jordaan studied at the University of the Western Cape and University of South Africa in Pretoria completing a Bachelor of Art, Diploma in Higher Education, Honours Degrees, and was recently honoured with a Degree Doctor of Administration. In 1997, Jordaan was appointed CEO of the SA Football Association. Among the awards he has received are the Special Presidential Awards from President Nelson Mandela (1994) and Presidential Sport Achievement Award from President Thabo Mbeki (2001).

2010 boom

Pre-2010 hospitality

BOOM for SA

Aggressive expansion for African Sun Zimbabwe-based hospitality group, African Sun, plans to expand its portfolio even further with the opening of several new properties across the continent. Says Group CEO, Shingi Munyeza, the group plans to invest US$60m on capacity expansion bringing the group to over 8 000 rooms, more than double its current 3 000 rooms. “At the moment we are finalising the first chunk of funding refurbishments,” says Munyeza. He furthers that the refurbishments across the properties are to be completed before the 2010 Soccer World Cup to be held in neighbouring South Africa. In terms of South African hotel opportunities, Munyeza says the group is rooting out potential projects at present and expects to announce these new

developments before the end of the year. In June, the group announced it would be opening nine properties across Africa. “Despite the current economic climate we are optimistic about the long-term viability of the hospitality industry in Africa. As a result, we are constantly on the lookout for new properties that offer sustainable returns and the project pipeline we have for the year is solid – and likely to grow in the coming months as we identify new opportunities,” says Farayi Mangwende, Group Corporate Communications Manager. “Of particular interest to us are developments in natural resource rich countries and leisure enclaves.” The group closed 2008 with 1090 rooms outside Zimbabwe and this is expected to increase to 3300 by the end of 2009.

Tourism Business Africa 2009

T may not all have been developed for the 2010 World Cup in South Africa, but 2009 and 2010 will forever be known for the vast expansion of hotel infrastructure throughout Southern Africa. While South Africa has largely been the greatest beneficiary of this expansion, neighbouring countries like Angola and Mozambique have also benefited from the upturn. Cape Town is arguably the focus within South Africa with a new range of designer five-star properties, including the development of Rezidor’s Hotel Missoni, The Taj Hotel and Protea Hotels’ 15 on Orange and Crystal Towers developments. Elsewhere, Durban’s iconic Oyster Box has reopened, while Protea’s quirky, fun Fire and Ice! brand heads for Johannesburg. Yet despite the expected mass scheduled openings throughout South Africa’s main centres from now until mid-2010, developers and hotel operators still deny there’s a glut of new and upcoming premium hotel developments which will result in fierce competition as the recession forces visitors to buy-down. HICA brings you some of the key hospitality developments scheduled for the region:

Beachfront convention centre for East London EAST London has a new International Convention centre, managed by Premier Hotels & Resorts International. Featuring prominently on the cover of Tourism Business Africa, this is Southern Africa’s only beachfront convention centre, as well as the only conference and exhibition venue of its magnitude in the Eastern Cape. Located on the Esplanade, the complex incorporates the 254-room Premier Hotel Cascades as well as the adjacent 175 rooms of the Premier Hotel Regent, offering a range of accommodation options to complement the ICC. The complex features a 600-seater auditorium,

a 2 200-sqm exhibition hall, three conference rooms with a combined floor space of 800 sqm, multiple breakaway and boardrooms and various restaurants. The ICC’s multi-functional conference venues are equipped with state-of -the-art technology and are suitable for conferencing; breakaway sessions; presentations; workshops; exhibitions; concerts, cocktail and banqueting events. The centre can accommodate small meetings for groups of 10, schoolroom style conferencing for up to 1 400 delegates, while the largest room can accommodate 2 150 delegates cinema-style.

Rezidor develops Hotel Missoni Cape Town A see-through cantilevered pool hanging over the edge of a rooftop terrace is just one of the trafficstopping features of the R340m new five-star Hotel Missoni Cape Town due to open after the World Cup in 2010. The luxury lifestyle and designer hotel will bring the iconic Italian fashion brand, Missoni, to South Africa. It will form part of the Rezidor Hotel Group’s new lifestyle hotel concept aimed at attracting new revenue from target markets such as the film, fashion and related industries, well-heeled FITs, “Black Diamonds” and the brand conscious. The 157-bedroom Hotel Missoni

Cape Town will be located on the corners of Castle and Burg Streets in the Cape Town CBD, about 50m from Greenmarket Square. Each room’s furnishings will be valued at R2m upon completion. Facilities will include a small wellness spa, an Italian restaurant, a bar and small meeting and conference facilities. Andrew McLachlan, Rezidor’s vice president for business development in Africa and the Indian Ocean Islands, says: “In Africa, we are looking at the Seychelles, Mauritius and possibly Sandton. Another logical place to take the brand is the luxury safari lodge segment.”

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