THEBE TOURISM GROUP
THEBE TOURISM CEO JERRY MABENA
THEBE TOURISM GROUP
Truly Transforming
Tourism PRODUCTION: Emily Ayson
Despite the unpredictable ebb and flow of the global and national economy, the tourism industry in South Africa is positively booming. Idyllically scenic and culture-saturated, the country has plenty to offer whether you are seeking adventure or respite. However, although a steady stream of international visitors are discovering South Africa, domestic ‘Afropolitans’ still seem to be ignored by - or are ignoring - travelling for leisure. It is precisely this fact that has prompted CEO of Thebe Tourism Group, Jerry Mabena, to take action. Sometimes, all you need is a little encouragement to try something new or go somewhere different, even if such an experience exists in a location right on your door step. Enterprise Africa caught up with Mabena to find out just how he is working to transform the face of domestic tourism within South Africa.
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INDUSTRY FOCUS: TOURISM
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An established and respected businessman, and optimist, Jerry Mabena speaks with great pride and enthusiasm about his work and the company that he leads. With an acute awareness and knowledge of the current state of tourism within South Africa, his moral, responsible and positive approach to business correlates flawlessly with values and aims of Thebe Investment Corporation (TIC), the parent company of Thebe Tourism Group (TTG). TIC was founded in 1992 with an initial investment of just R100,000 from the Batho Batho Trust, who at the time were chaired by the late Nelson Mandela. The founding aims; to increase the success and visibility of black empowerment initiatives, support economically developing areas, practice responsible business and promote mutually beneficial partnerships; still provide the groundwork and impetuses for operations to this very day. Contemporarily, TIC is a completely black-owned company, which has holdings in a vast range of different
industries and its assets are worth over R6 billion. Its reputation is becoming increasingly recognised across the continent and indeed the world, as its performance in the market goes from strength to strength. Yet importantly, underlying such prosperity is one key tenet. Rather than solely chasing profit, TIC is highly committed to investing in products and services that not only benefit the enterprise, but also feed back into the wider community and economy. The desire to showcase South Africa and to also support and stabilise the lives of family, friends and fellow countrymen is palpable and it is no wonder that the company abides by the old African idiom that ‘no matter how far a stream flows, it never forgets its source’. Tourism is one such area that has great potential for simultaneously generating income and having a positive impact on peoples’ lives. Identifying an opportunity to enter into a developing and progressive business sphere, in 2001 TIC founded
the Thebe Tourism Group. Today, the division is lauded as one of the most pioneering and successful tourism groups in the whole of South Africa. Under the direction of Mabena, TTG both manages and holds ownership over an impressively eclectic portfolio of tourism commodities and facilities. From attractions and car rental to leisure and business tourism, packages can be tailor-made to fit the complex and varied needs of different types of traveller. Whether you are a seasoned globe-trotter or just looking to try something new, TTG allows travellers to witness the true majesty of South Africa, whilst also making the actual process of holidaying seemingly effortless. Yet, behind such a casual-seeming scene, the business of tourism can be far from leisurely. South Africa recently became the third biggest African economy to officially go into recession as the Rand fell 20% against the dollar in March this year. Consequently, the potential for industries associated with disposable income and non-essential expenditure to be thrown into decline and chaos are substantial. Regardless, the tourism industry and indeed the prosperity
CAPE POINT
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THEBE TOURISM GROUP
and popularity of groups such as TTG are continuing to thrive. According to statistics provided by South African Tourism, in 2016 South Africa hosted 10 million international tourists who collectively spent in the region of R75.5 billion. These intercontinental visitors often stay for over nine days and around 15% of them even opt to venture into multiple provinces. The majority of tourists come from the UK and mainland Europe but there has also been a notable increase in travellers from the United States. However, whilst these numbers are impressive, Mabena reflects on the fact that reliance on foreign visitation can be very problematic. Risk factors such as economic downturn, natural disasters, political turmoil and visa restrictions can signal disaster, deterring people from travelling and thus creating a shortfall in income. As such, within South Africa there needs to be a rapid and carefully managed shift in focus. To facilitate an uninterrupted revenue stream from tourism, attention needs to be turned to an already present market that has been historically alienated by the tourism industry. Such people - ‘Afropolitans’ - are a crucial target market that if attracted and assimilated, could help boost the wider economy as well as both the viability and visibility of domestic tourism. Mabena describes Afropolitans as “South Africa’s newly educated, economically prosperous market who have the ability and means to travel for pleasure yet rarely do so”. Since democracy came to the country in 1994, border restrictions were lifted and a newly affluent social stratum developed. As such it seems only logical that indigenous tourism levels would increase. Yet, though domestic tourism numbers in 2016 exceeded 24.3 million people, Mabena notes that an estimated 14 million of these journeys were “short trips to see and stay with family and friends”. Thus, such travellers generally return to rural, underdeveloped
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THEBE TOURISM CEO JERRY MABENA
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THEBE TOURISM GROUP
and familiar areas, with their accommodation often being provided for free. “Significant capital is not injected into the economy via this type of ‘traditional’ South African tourism, as people often find themselves in areas that are off the beaten track and with few commercial leisure facilities.” For example, in 2016 only 10% of South African travellers visited more than one province, but the average stay was for just 4.3 nights. This is less than half of that of their international counterparts. For Mabena, this situation constitutes a glaring gap in the tourism market and he hypothesises that if his and other allied businesses can attract just 10% of these consumers, then there is an opportunity to bring an extra R2.6 million into the local and national economy per annum. For Mabena, the buzzword is transformation; Afropolitans not only need to transform their internalised historical tourism practices, but the products and services offered to them must also be transformed into something that they will truly desire and make an effort to seek. What Afropolitans need are packaged holidays which are affordable and easy to plan and execute. They must also be offered a range of activities and experiences that will encourage them to travel, stay and spend in and around places they are already familiar with. The hope is that not only will domestic tourists be interested in combining family visits with leisure pursuits, but that such initiatives could even become the core reason for their journeys. Thus, to unlock and reignite internal interest in South Africa, TTG have heavily invested in areas of notable cultural, historical, zoological and botanical interest. For example, in November 2015, TTG gained sole ownership of Cape Point after purchasing Murray and Roberts’ 49.9% share. This narrow stretch of land, interspersed with valleys, bays and beaches is naturally breathtaking and the visiting experience is also enhanced by ‘The Flying Dutchman’ funicular, shops, restaurants and shipwreck trails. The vast,
heterogeneous landscape also provides sportspeople, hikers, photographers and wildlife enthusiasts with a unique location within which they can indulge in their passions. Furthermore, in September 2016, a self-guided audio tour was made available as a mobile device app, signifying TTG’s dedication to always adapting to technological change. Speaking at the time of the acquisition, Mabena said that TTG was “very proud and excited about this opportunity… visitors can be assured of our continued excellence on site. It’s business as usual at Cape Point, however we are very excited about the move as it is aligned with our growth strategy on the tourism asset management…TTG is eager to improve activities at the site in order to enhance the visitor experience.” This phenomenal purchase is just the tip of the iceberg, and there are two highly prolific projects sketched out on the horizon for Mabena and company, that are sure to thrill prospective holidaymakers. Last year, TTG submitted a bid for a one of a kind hotel to be built in Kruger National Park, already a stalwart South African icon. The proposed glass fronted structure, should it be accepted, will be built within a static train on a bridge over the Sabie River, giving visitors a truly unique view to the East of the park from the comfort of their bedrooms. For Mabena, the status rather than scale of the project is what is pertinent, for it constitutes a globally distinctive scheme which has the capacity to accelerate visitation to the site and other locations within the close vicinity. TTG has also just acquired a 1400 hectare stretch of land adjacent to the park – in partnership with a land claimant community, wherein it hopes to establish more hotels, a high-end camping experience facility and a nature reserve which incorporates a specialised wildlife observation corridor. This ‘gateway’ project will be a prime edutainment and conservation site, in which animals, humans and the environment can all safely and
sustainably coexist uninhibited. Gesturing back to the philanthropic modus operandi of TTG operations, the scheme places considerable emphasis on responsible construction, using local and ethically sourced materials and remaining as “energy, water and carbon efficient as humanly possible”. With negotiations coming to an end on this project, it will not be long before it gets off the ground and TTG’s and Mabena’s dream of creating the ultimate South African getaway can be realised. When asked if he thinks TTG have fully realised their vision of being a ‘world-class’ enterprise, Mabena’s reply is both sincere and inspiring. For this hardworking, entrepreneurial gentleman, such a title is “an everchanging goal post” as expectations of perfection are forever changing. Instead, he rests his faith in the idea of self-fulfilling prophecy; that the end result of an experience is completely determined by the mindset in which you enter into it. For him, “the amount of Rands in the bank account is not a true measure or representation of success”. Instead, success lies in the production of a positive feedback loop, created by imbuing a business with goodness and being rewarded with financial and reputational prosperity. His optimism and drive seem to never falter and so it is not difficult to see why TTG and Mabena are enjoying such well-deserved success – he even muses that “when all is said and done, the future is only brighter”. Indeed, with such an outlook, Mabena and his ever-growing enterprise are undoubtedly canonical figures in the transformation of tourism within, across and beyond South Africa.
THEBE TOURISM GROUP +27 21 551 0288 info@thebetourism.co.za www.thebetourism.co.za
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AFRICA
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Issue No.61
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JEGIE PADMANATHAN:
People Are The Power
of Bidvest Prestige ALSO IN THIS ISSUE:
CCI South Africa / Thebe Tourism Group / RPP Developments / ALG Estates
A S F E AT U R E D I N
ENTERPRISE AFRICA
AUGUST 2017