FA N C O U R T
FANCOURT
Fancourt Targets Families and Adventure Tourists
for Growth PRODUCTION: David Napier
With unmatched offerings in golf, hotel accommodation, conferencing and events, and real estate, Fancourt is a business at the forefront of a drive to place South Africa’s Garden Route to the top of Africa’s tourism industry. CEO Georgie Davidson talks to Enterprise Africa on the hard work that has gone on over the past 12 months. 2 / www.enterprise-africa.net
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South Africa’s lush Garden Route is building a reputation as one of the world’s premier regions for adventure tourism. Stretching around the country’s southern coast, the Garden Route is home to breath-taking coastal vistas and countryside of unparalleled beauty. A number of small towns adorn the route and visitors can experience South African hospitality at its finest. Along the N2 highway between Cape Town and Port Elizabeth is the quiet town of George, and at its heart is one of southern Africa’s leading hospitality destinations – Fancourt. Home to the world-class Fancourt hotel, elite golf courses, The Manor House and unrivalled conferencing and event facilities, Fancourt stands as a shining example of what the Garden Route has to offer. Framed by the Outeniqua mountain range, surrounded by nature-reserve land, and just a stone’s
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throw from the ocean, Fancourt has become known as a global landmark for business, leisure and golfing travel. Speaking to Enterprise Africa in 2017, Fancourt CEO Georgie Davidson said that the business was thriving but looking to boost ‘off-season’ business. Now, she suggests that the company is continuing with this strategy as well as collaborating with other regional players to drive the industry across the entire region. “We have been relatively successful but it’s still a work in progress,” she says. “It’s greater than Fancourt, it’s about the entire destination. It’s something we are working incredibly hard on with SATSA and Wesgro to establish a year-round product. We’re benefitting from increased airlift and we launched our Business Playground offer which is up by more than 150% compared to this time last year. It’s an attractive package that you can buy and use to stay, play golf, eat and drink at the bar while being
included as part of the conferencing. “We find that products have a twoyear lead in for returns so we are thrilled that Business Playground has achieved a quicker than expected return after only implementing last year.” 52-WEEK FANCOURT Naturally, Fancourt’s peak season comes through the spring and summer months and had previously dipped in the autumn-winter period. This is why the company has come up with new strategies to drive business when the sun is not so strong. This includes boosting hotel occupancy, golf rounds, and the number of conference activities held at Fancourt. Davidson suggests the key is families. “We are very keen on growing family and lifestyle orientated business,” she says. “We are asking how we can make the Garden Route a destination that is attractive in winter. It ties in adventure tourism, it ties in with establishing
FANCOURT
// THE MOST ENCOURAGING THING IS THE RECOGNITION BY THE LEADERSHIP OF SOUTH AFRICA THAT TOURISM IS AND WILL BE A BIG PLAYER IN TERMS OF EMPLOYMENT // world-class attractions, and we are working with local tourism bodies to create a situation where the whole region is attractive in winter.” Adventure tourists have previously found themselves attracted to countries like New Zealand, Mexico, Wales and Costa Rica. Adrenaline junkies on the hunt for skydiving, bungee jumping and outdoor thrills are being targeted by SAT and other tourism organisations as they market South Africa as an outdoor-lovers paradise. “It’s growing and there are so many activities,” says Davidson, who travels to work across the estate every morning with the Outeniqua Mountains as a backdrop. “There is a lot of collaboration and SATSA has been involved in bringing adventure
tourism players together. We are seeing progress but we are looking for some kind of world-class attraction in the region and that is something we are working on. “For example, we have asked ‘could we be the food destination of SA if the Winelands is the wine destination?’ We are looking to establish the destination as a whole.” The Garden Route is already home to a number of thrill-seeker activities. Visitors can abseil, bike ride, charter boats, blokarts, canoe, cliff jump, dolphin watch, fish, hang glide, hike, horse ride, kite surf, power boat, quad bike, sky dive, scuba dive, zip line, and bungee jump among many other pursuits. Bungee jumping from the Bloukrans Bridge is a must for all
adventure tourists in the region. Located less than two hours’ drive from Fancourt, the world’s highest commercial bungee jump is worldfamous and sees brave folk dive from the bridge into the 709 ft abyss below. Face Adrenalin has been operating the Bloukrans Bridge Bungy accident free since 1997 and sharing turnover with a local community trust. Promoting the region, and activities like this, is vital for the ongoing development of the entire area. “I’m a strong believer in collaboration and I think that it’s very powerful – together we can achieve more,” says Davidson. “Players in the area are coming together and we are pleased that we can talk collaboratively. From a government
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INDUSTRY FOCUS: TRAVEL & TOURISM
perspective, all the bodies are working together and are now falling under the Eden Municipality and that gives one combined vision for the region – and that is very important. Collaboration allows us to make the budget go so much further. “We have done it with golf and we are planning something similar with adventure tourism and it involves us pledging funding which the government will match. SA Tourism is committed to cofounding marketing efforts with players in the region, and it has been very successful. We can influence how money is being used to make sure it’s effective and that is great.” DRIVING SUCCESS In February, Golf Digest Magazine published its bi-annual country
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course rankings, placing Fancourt’s three courses all in the top 15, with Links taking the top spot. This follows The Links, a privately-owned club, success, placing first in 2011, 2014 and 2016. The publication also placed the Fancourt Links in its global top 40 list. This recognition was the latest in a string of awards for Fancourt after it was named Golf Resort of the year 2018 by IAGTO (International Association of Golf Travel Operators), Fancourt Hotel was named South Africa’s Best Golf Hotel 2017 at the World Golf Awards, and The Manor House was awarded the coveted Condé Nast Johannsen’s Best Newcomer in Africa 2018. “We celebrate it internally and we get together with the entire team to thank them. They are incredibly proud and they do realise that they can influence our standing,” says Davidson.
“We have grown the number of golf rounds played; we’re sitting at around 54,000 rounds now. We have been successful but we do have to be sensitive – the growth we are looking for is in winter as we are almost at capacity in peak season. 60,000 is our five-year target. I’m happy with the progress we have made so far.” For Fancourt to stand out like this, especially with its golf offering, is impressive considering that industry experts often claim SA courses are overlooked at global level. “The feedback from people like Gary Player is that if some of our SA courses were in America, they would be top 10 in the world. The sentiment from top players is that our courses are indeed undervalued. The experience on a South African course has a certain flair that you don’t
FANCOURT
// IT’S REALLY IMPORTANT FOR ME TO CONSTANTLY CHALLENGE THE BUSINESS. WE NEVER WANT TO BE ARROGANT AND WE ALWAYS WANT TO REINVENT OURSELVES // get elsewhere. The truly warm South African experience that was delivered at the BMW Cup was something that blew people away.” In March last year, Fancourt hosted the BMW Golf Cup International where top amateurs from across the globe come to compete in the prestigious tournament. Team Thailand claimed victory and special guest, Gary Player said that the tournament was a great advert for South Africa – something Davidson agrees with. “BMW are incredible to work with and their precision engineering
comes right through on the ground. It’s a fantastic event to host and the international nature of it brings a different dynamic. It’s great exposure and great association with a remarkable brand, and it’s a great market to be exposed to as it’s about Class-A players. South Africa blows them away and it’s a great advert for what the country can offer.” LIVING AT FANCOURT Life on the Fancourt estate is idyllic. Safe, next to nature, and familyfocussed – and all in great weather.
Covering 613 hectares incorporating about 420 existing homes, this is prime South African real estate. At the end of 2017, the company announced its first new residential release in more than ten years when it detailed a 45-unit development called ‘Noem Noem’. “We launched Noem Noem in December 2017,” explains Davidson. “Noem Noem is the original farm on which the development is situated – it’s an indigenous local plant. We used a sealed bid system to launch it as we had so much interest from existing members and confidentiality was of the utmost importance. We sold 11 properties through the sealed bid process and followed that with a further three, and there are four more released very soon. We are around 50% sold out; it’s competitively priced and we have given ourselves five years to
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maximise its potential.” Responsible development is at the heart of every real estate decision made by Fancourt, and this is why opportunities are limited. While some land does remain available for development, the feeling within the market and the sentiment of existing members will all have to be considered. Davidson is keen to point out that property is not a ‘quick buck’ for Fancourt and reminds of a recent opportunity where real estate land was ready for development but the decision was taken to rather use the site to extend practice facilities. Homes at Fancourt are mainly purchased by golf enthusiasts and prices average around R6.4 million. Encouragingly, demand remains strong, and Davidson suggests that success in the hotels helps drive that demand. “We had a very successful Easter period and what is very striking for me is the family feedback. We had a lot of comments about how amazing the destination is and how suitable it is for children. There is a lot on offer; kids can be kids and parents can relax. From that perspective I am very pleased and very encouraged. We even had people
who have been to stay and then asked about our property offering, so they are coming for a weekend and then saying they could live here; that shows we are getting things right.” FIVE STAR FUTURE? With purse strings tightened following a slow economic environment through 2016 and 2017, pushing an offering that is towards the top end of the market has been challenging. But, with the appointment of Cyril Ramaphosa as the country’s President, confidence and expectation has turned around and companies are now planning for the long-term in South Africa. “The outlook is a lot rosier,” admits Davidson. “The most encouraging thing is the recognition by the leadership of South Africa that tourism is and will be a big player in terms of employment. Mining contributes more GDP but tourism contributes more employment and opportunity. Tourism is definitely now on the radar and that is very encouraging because for some time tourism was put on the backburner.” The company is now in the process of planning a 20-year strategy where previously its was working on a year-
to-year basis, planning three years in advance at the most. Away from economic factors, the other big challenge to hit the region in recent times has been drought. The water crisis in the Western Cape has been described by some as a national disaster and, while Fancourt has not been directly impacted operationally, the tourism industry has felt the effect. “The intention of Day Zero was to make sure Day Zero never happened so from that perspective it has been a successful campaign,” says Davidson. “But there has been knock on impacts on tourism. People have become nervous travelling to Cape Town and South Africa. The wider tourism industry has seen a slowdown and this could be one of the reasons behind it.” She reminds that water scarcity is a global problem and is not exclusive to South Africa citing Sydney, Australia and Los Angeles as examples of other big cities to be affected. “We are lucky that we have an exclusive water right in the area and we are very sensitive with our usage. We have taken measures to reduce our usage and we are actively engaging in talks about our future sustainability. We measure very carefully and we are complying with all restrictions in the region. In George, we have had good rainfall and the dam is overflowing so, as a region, there has not been a major day-to-day impact.” MORE TO COME FROM FANCOURT Asked if she has achieved what she set out to when she was named CEO in 2014, Georgie Davidson says there is a lot left to do and the project is still as exciting as ever. “Will I ever be done? No. Does Fancourt hold enough challenges for me in the meantime? Absolutely. “I keep my finger on the pulse. We have over achieved on the goals I set
// I’M A STRONG BELIEVER IN COLLABORATION AND I THINK THAT IT’S VERY POWERFUL – TOGETHER WE CAN ACHIEVE MORE // 8 / www.enterprise-africa.net
FANCOURT
// THE TRULY WARM SOUTH AFRICAN EXPERIENCE THAT WAS DELIVERED AT THE BMW CUP WAS SOMETHING THAT BLEW PEOPLE AWAY // out when I started but that doesn’t mean there are not new goals forever coming my way. It’s really important for me to constantly challenge the business. We never want to be arrogant and we always want to reinvent ourselves. Some people see innovating a business as a big bang moment but I believe it’s more about the little things that you continue to tweak and challenge the business on.” Fancourt remains important, both regionally and nationally. As part of the Leading Hotels of the World group, the company highlights South Africa to an audience far and wide. Locally, the company employs more than 650 people in peak season and invests heavily in CSR projects to lift the community in which it operates. “The Plattner family invested in the business to create employment and skills in the region and that is something that they remain committed to 20 years later. Continuing to invest in our people will probably be our legacy,” says Davidson. The immediate focus for the CEO going forward will be succession planning across all divisions. “One of the big things for me, was to bring depth to the leadership of Fancourt. The business cannot depend on the family or the CEO for leadership. We’re in the third year of a leadership programme, which we will continue to invest in, and I can feel the difference that is having on the business,” she says. The Garden Route is already one of South Africa and Africa’s big draws
Georgie Davidson - Fancourt CEO
for tourists, and with Tourism Minister Derek Hanekom stating at the recent Africa Travel Indaba that the industry is the fastest growing in the world, the opportunities are big for Fancourt. “In Africa, we know how to welcome visitors with warmth and with our own unique flair, and we know how to host them professionally in our own way. We can guarantee a life-changing experience,” said Minister Hanekom. As the industry grows, changes
and adapts, Fancourt is perfectly positioned to do the same, and with much to celebrate in recent times, this is a business that has become an example to follow for all in hospitality.
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June 2018
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