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Contents Issue 01 (January) 2015 PUBLISHER Tourism Tattler (Pty) Ltd. PO Box 891, Umhlanga Rocks, 4320 KwaZulu-Natal, South Africa. Company Reg.No.: 2006/015252/07 Website: www.tourismtattler.com EXECUTIVE EDITOR Des Langkilde Tel: +27 (0)32 815 0414 Cell: +27 (0)82 374 7260 Fax: +27 (0)86 651 8080 E-mail: editor@tourismtattler.com Skype: tourismtattler
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DESTINATIONS: Cape Whale Coast, South Africa.
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MAGAZINE ADVERTISING
ADVERTISING DIRECTOR Bev Langkilde Tel: +27 (0)32 815 0414 / (0)31 813 5326 Fax: +27 (0)86 656 3860 Cell: +27 (0)71 224 9971 E-mail: bev@tourismtattler.com Skype: bevtourismtattler
HOSPITALITY: Why room discounting does not work.
ONLINE ADVERTISING BANNER ADS www.tourismtattler.com/advertising_rates BUSINESS DIRECTORY LISTINGS www.tourismtattler.com/business-directory
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SUBSCRIPTIONS
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BACK ISSUES (Click on the covers below). ▼ Dec 2014
▼ Nov 2014
▼ Oct 2014
MARKETING: Tourism Challenges for 2015. IN THIS ISSUE
▼ Sep 2014
▼ Aug 2014
▼ Jul 2014
04 05 06 08 10 11 12
▼ Jun 2014
▼ May 2014
▼ Apr 2014
13 14
EDITORIAL Accreditation Cover Story Article Comments BUSINESS SATSA Market Intelligence Report Clean Audit Not Good Enough COMPETITIONS Win 1 of 3 MasterDrive courses CONSERVATION 2015 – Year of the Rhino? DESTINATIONS KZN South Coast – 2015 & Beyond Exploring the Cape Whale Coast
Adv. Louis Nel Bernadette Nickol Charlene Nieuwoudt ▼ Mar 2014
▼ Feb 2014
EDUCATION 22 Challenges in Hospitality Education EVENTS 20 IIPT Interactive World Symposium HOSPITALITY 24 Why Discounting Doesn't Work LEGAL 25 Risk in Tourism - Part 6 MARKETING 26 Tourism Challenges in a New Year TRADE NEWS Visit our website for daily travel news
EDITORIAL CONTRIBUTORS Dr. Peter E. Tarlow Martin Jansen van Vuuren Jean Francois Mourier Trevor Neethling Justin Mackrory Trevor & Susan Barrett
▼ Jan 2014 MAGAZINE SPONSORS 02 06 07
▼ Dec 2013
▼ Nov 2013
▼ Oct 2013
OTM-India SATIB Insurance Brokers World Travel Market Africa
16 19 28
Comair / kulula.com BayTown.co.za National Sea Rescue Institute
Disclaimer: The Tourism Tattler is published by Tourism Tattler (Pty) Ltd and is the official trade journal of the Southern Africa Tourism Services Association (SATSA). The Tourism Tattler digital e-zine, is distributed free of charge to bona fide tourism stakeholders. Letters to the Editor are assumed intended for publication in whole or part and may therefore be used for such purpose. The information provided and opinions expressed in this publication are provided in good faith and do not necessarily represent the opinions of Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers. Advice provided herein should not be soley relied upon as each set of circumstances may differ. Professional advice should be sought in each instance. Neither Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages or from any statements made or withheld or from supplied photographs or graphic images reproduced by the publication.
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Accreditation Official Travel Trade Journal and Media Partner to: The African Travel & Tourism Association (Atta) Tel: +44 20 7937 4408 • Email: info@atta.travel • Website: www.atta.travel Members in 22 African countries and 37 worldwide use Atta to: Network and collaborate with peers in African tourism; Grow their online presence with a branded profile; Ask and answer specialist questions and give advice; and Attend key industry events.
National Accommodation Association of South Africa (NAA-SA) Tel: +2786 186 2272 • Fax: +2786 225 9858 • Website: www.naa-sa.co.za The NAA-SA is a network of mainly smaller accommodation providers around South Africa – from B&Bs in country towns offering comfortable personal service to luxurious boutique city lodges with those extra special touches – you’re sure to find a suitable place, and at the same time feel confident that your stay at an NAA-SA member’s establishment will meet your requirements.
Regional Tourism Organisation of Southern Africa (RETOSA) Tel: +2711 315 2420/1 • Fax: +2711 315 2422 • Website: www.retosa.co.za RETOSA is a Southern African Development Community (SADC) institution responsible for tourism growth and development. RETOSA’s aims are to increase tourist arrivals to the region through. RETOSA Member States are Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
Southern Africa Tourism Services Association (SATSA) Tel: +2786 127 2872 • Fax: +2711 886 755 • Website: www.satsa.com SATSA is a credibility accreditation body representing the private sector of the inbound tourism industry. SATSA members are Bonded thus providing a financial guarantee against advance deposits held in the event of the involuntary liquidation. SATSA represents: Transport providers, Tour Operators, DMC's, Accommodation Suppliers, Tour Brokers, Adventure Tourism Providers, Business Tourism Providers and Allied Tourism Services providers.
Southern African Vehicle Rental and Leasing Association (SAVRALA) Contact: manager@savrala.co.za • Website: www.savrala.co.za Founded in the 1970's, SAVRALA is the representative voice of Southern Africa’s vehicle rental, leasing and fleet management sector. Our members have a combined national footprint with more than 600 branches countrywide. SAVRALA are instrumental in steering industry standards and continuously strive to protect both their members’ interests, and those of the public, and are therefore widely respected within corporate and government sectors.
Seychelles Hospitality & Tourism Association (SHTA) Tel: +248 432 5560 • Fax: +248 422 5718 • Website: www.shta.sc The Seychelles Hospitality and Tourism Association was created in 2002 when the Seychelles Hotel Association merged with the Seychelles Hotel and Guesthouse Association. SHTA’s primary focus is to unite all Seychelles tourism industry stakeholders under one association in order to be better prepared to defend the interest of the industry and its sustainability as the pillar of the country’s economy.
International Coalition of Tourism Partners (ICTP) Tel: Haleiwa, USA: +1-808-566-9900 • Cape Town, South Africa: (+27)-21-813-5811 • Rio de Janeiro, Brazil: +5521 40428205 • Germany: +49 2102 1458477 • London, UK: +44 20 3239 3300 • Australia +61 2-8005 1444 • HongKong, China: +852 8120 9450 • Email: member@tourismpartners.org • Website: www.tourismpartners.org ICTP is a travel and tourism coalition of global destinations committed to Quality Services and Green Growth. ICTP advocates for: sustainable aviation growth; streamlined travel; fair taxation and jobs.
International Institute for Peace through Tourism Tel: +1-802-253-8671 • Website: www.iipt.org The International Institute for Peace through Tourism (IIPT) is dedicated to fostering and facilitating tourism initiatives that contribute to international understanding and cooperation, an improved quality of environment, the preservation of heritage, poverty reduction, and the resolution of conflict - and through these initiatives, help bring about a more peaceful and sustainable world.
OTM India 2015 Tel: +9133 4028 4028 • Fax: +9133 2479 0019 • Website: www.otm.co.in OTM is India’s biggest travel trade show, in the largest travel market in India – Mumbai. OTM Mumbai takes place from 4 to 6 February 2015, with an attractive add on option in New Delhi from 10 to 12 February 2015. OTM is the most effective platform to market to the Indian travel industry catering to over 15 million Outbound travellers spending over US$ 10 billion and over 500 million domestic tourists – at least 10% of them with an immediate potential to also travel abroad.
World Travel Market - WTM Africa 2015 - WTM Latin America 2015 - WTM London 20145 WTM Africa takes place in Cape Town, South Africa from 15 to 17 April 2015, WTM Latin America will take place in São Paulo from 22 to 24 April 2015, and WTM - London will take place from 02 to 05 November 2015 in London, England. WTM is the place to do business. 04
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cover story
In this issue, we also have the latest hotel rates and occupancy stats, airport passenger arrivals and car rental stats for South Africa (see page 08). The lack of official foreign tourists arrivals data from Statistics South Africa is of serious concern as the local travel trade rely on this information for forward planing in the new year.
A prosperous New Year to our readers. To me, the new year provides a new chapter in life waiting to be travelled and written. New destinations to be discovered, questions to be asked, and answers to be gleaned. But knowledge in, and of itself is pointless unless shared. In the words of Saint Augustine; “The World is a book, and those who do not travel read only a page.”
The travel and tourism industry is certainly fraught with challenges, and in this edition Dr. Peter E. Tarlow takes a look at some challenges that can be expected in 2015 (see pages 26 to 27). This is the first of a two-part series, which will be concluded in the February edition.
Talking of new destinations, it has taken a while, but Tourism Tattler has finally ventured across 'the other side of the mountain', as the Overberg region of South Africa's Western Cape province is colloquially known in the Afrikaans language. The mountain referred to is the Hottentots Holland Mountains, part of the Cape Fold Belt, which forms a natural barrier between the Cape Town metropolitan area and the southern Overberg coast, with Sir Lowry's Pass being the only crossing, in the form of the N2 motorway. In this edition, we feature the Overstrand region, or 'Cape Whale Coast', as this most southerly region of Africa, only one hour east of Cape Town, is popularly known. The unexpected pleasures this panoramic region offers, will embroider stories, friendships and pictures never to be forgotten (see pages 14 to 21).
EDITORIAL
And finally, a reminder to the South African travel trade – don't forget to enter the 2015 Lilizela Tourism Awards. Entries close on 15 May 2015, so the sooner you register, the sooner you can accumulate those all important votes, but make sure you have a TripAdvisor account set up as your customer reviews count. Yours in Tourism, Des Langkilde. editor@tourismtattler.com
Hottentots Holland Mountains and Sir Lowry's Pass. Image Andries de Wet - www.en.wikipedia.org/Creative Commons.
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▲
Article Comments Article comments, 'Likes' and 'Shares' received on the Tourism Tattler website and Social Media pages.
Wi n
The winning comment, 'Like' or 'Share' posted on the Tattler website or Social Media pages during the month of January 2015 will receive a Dietz Monarch D10 Hurricane Lantern with the compliments of Livingstones Supply Co – Suppliers of the Finest Products to the Hospitality Industry.
The Dietz Monarch was first introduced in 1900, and has been produced in at least seven distinct variations continuously over the past 108 years. The first and oldest style Monarch had a flat top tank, un-reinforced air tubes, and a 9/16" fuel cap.
Connect with Livingstones on:
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www.livingstonessupplyco.co.za
The global leading event for the African travel industy. Don’t miss out, register now!
Register now wtmafrica.com JANUARY 2015
Tourism Tattler Trade Journal
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BUSINESS
BUSINESS & FINANCE
Market Intelligence Report The information below was extracted from data available as at 05 January 2015. By Martin Jansen van Vuuren of Grant Thornton.
ARRIVALS
The latest available data from Statistics South Africa is for January to March 2014: Current period
Change over same period last year
133 455
-2.8%
97 507
6.6%
UK Germany USA
81 419
9.8%
India
24 556
-5.1%
42 292
-0.4%
737 374
3.2%
China Overseas Arrivals (excl same day visitors) African Arrivals
1 842 630
5.8%
Total Foreign Arrivals
2 583 034
4.9%
NB: African Arrivals plus Overseas Arrivals do not add up to Total Foreign Arrivals due to the exclusion of unspecified arrivals, which cannot be allocated to either African or Overseas.
HOTEL STATS
Current period
Average Room Occupancy (ARO)
Average Room Rate (ARR)
Revenue Per Available Room (RevPAR)
All Hotels in SA
62.0%
R 1 000
R 620
All 5-star hotels in SA
61.6%
R 1 760
R 1 085
All 4-star hotels in SA
60.6%
R 952
R 577
All 3-star hotels in SA
63.2%
R 814
R 515
Change over same period last year All Hotels in SA
0.8%
7.2%
8.0%
All 5-star hotels in SA
2.5%
7.4%
10.2%
All 4-star hotels in SA
-0.9%
5.7%
4.8%
All 3-star hotels in SA
2.3%
6.6%
9.0%
ACSA DATA
The latest available data from ACSA is for January to November 2014: Change over same period last year Passengers arriving on International Flights OR Tambo International
Passengers arriving on Regional Flights
Passengers arriving on Domestic Flights
0.8%
4.5%
0.9%
Cape Town International
6.5%
5.7%
2.5%
King Shaka International
10.8%
N/A
-0.9%
CAR RENTAL DATA The latest available data from SAVRALA is for January to September 2014: Current period Industry rental days Industry utilisation Industry Average daily revenue
Change over same period last year
11 908 869
-0.4%
70%
-2.1%
305
5.5%
WHAT THIS MEANS FOR MY BUSINESS
The only data that has been updated from the previous MIR is the STR and ACSA data. The lack of official arrival statistics from Statistics South Africa is of serious concern. The STR data shows continued recovery in the accommodation sector. The ACSA data shows strong growth in arrivals on international flights to Cape Town and Durban, while arrivals on domestic flights to all destinations have been tempered.
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For more information contact Martin at Grant Thornton on +27 (0)21 417 8838 or visit: http://www.gt.co.za
The latest available data from STR Global is for January to October 2014:
KINGJAMES 30444
14 routes 6 cities a whole lot of flying When your customers want to go places, kulula is the airline to take them there. O.R. Tambo |
Lanseria |
Durbs |
Cape Town |
George |
East London
JANUARY 2015 30444_Trade_279x216.indd 1
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2014/09/17 10:09 AM
South Africa
BUSINESS & FINANCE
Clean audit progress still not good enough The financial management of South Africa's government departments and local municipal departments, while showing slight improvement, is still simply not good enough. By Trevor Neethling. December 2014’s release of the Auditor General's PFMA report for the 2013 / 2014 financial year indicated marginal improvements by the public sector, further underlining the urgent need to improve technical competencies and skills within its departments. As many as 119 (25%) of the 469 auditees attained clean audits in the 2013/14 financial year. This number was 22% in 2012/13 financial year, reflecting a marginal improvement year-on-year. Terry Ramabulana, partner and head of Public Sector Advisory Services at Grant Thornton, said the consequences of the poor financial management has a wide impact on both communities as well as the private sector, especially small businesses that depended on government contracts. “The negative effects of financial mismanagement by municipalities are severe in South Africa especially for businesses trying to work with the public sector,” says Ramabulana. “Small businesses are often the first to be affected in the event of non-payment. Many BEE companies are reliant on providing services for the government and simply cannot survive if they are not paid in time.” Ramabulana added that bigger businesses are also been threatened by a lack of reliability from state departments. The likes of Sanyati, a civil engineering company, closed recently due to non-payment from government. He said non-payment had distinct impact on business sustainability; employment; job creation and black economic empowerment. Poor financial management also impacts negatively on service delivery to already marginalised previously disadvantaged communities. The result has been the rising levels of community frustration leading to service delivery protests of which more than 280 were recorded in 2013, according to data from the University of Johannesburg. Many of these turn violent leading to the loss of life and to significant additional costs to the public purse. The private sector has also indicated its frustration with poor service. Data from Grant Thornton International Business Report indicates that as many as 62% of businesses in South Africa are negatively impacted by government service delivery. The provision of utilities, road and billing issues were singled out as the biggest areas of concern. Auditor General Kimi Makwetu, like various AGs before him, said irregular expenditure continued to be of particular concern. Makwetu highlighted six risk areas which if addressed, would lead to 10
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improvements in audits. These risks included the quality of submitted financial statements; the quality of submitted performance reports; supply chain management; financial health; information technology controls; and the human resource management breakdown in controls at some auditees. Alarmingly, of the government’s R1.035-trillion budget, only 15% was properly audited, according to the AG report. Ramabulana said the major hurdle in public sector financial management remained the lack of skilled financial managers in rural areas and smaller provinces. “Local government requires assistance from the private sector in order to enhance training initiatives and alleviate bottlenecks. The shortages are believed to be in the tens of thousands,” he said. Minister of Cooperative Governance and Traditional Affairs (CoGTA) Pravin Gordhan earlier this year stated categorically that the shortage of skills was undermining public sector financial stability. Minister Gordhan said the skills shortage was severe in financial positions at state departments’ even at the more basic level financial positions. “Both the AG and Minister Gordhan stressed that too many accounting officers and their teams failed to focus on basic disciplines of financial and performance management,” said Ramabulana. “It is clear that need assistance from especially there was a need to deploy appropriately experienced skilled workers to provinces which repeatedly performed poorly such as the Limpopo Province and North West Province.” Ramabulana said that Gauteng and the Western Cape remained highly lucrative for audit professionals to the detriment of the other provinces. He said the AG and his team themselves faced the same problem of finding sufficient skilled people to work for long periods of time in provinces away from their families and for lower salaries. A lack of people in key positions was the root cause of as much as 33% of the auditees with poor audits. “Despite all the challenges faced by government entities it is nevertheless positive to note that some improvement is better than none and we trust that this improved set of results is the beginning of an upward trend of consistently achieving clean audits in South Africa,” Ramabulana concludes. For more information visit www.gt.co.za
WIN
C O M P E T I T I O N
a Hijack RiskManagement workshop OR 1of 2 Driver Training Courses
To enter this competition, answer the question “In what 3 key areas can MasterDrive reduce company costs?” to win one of the following 3 prizes: A Hijack Risk Management workshop for 25 pax valued at R10,675 or one of two Defensive Driver Training courses valued at R1,467 each. The answer can be found in the text below. Submit your answer by logging onto the Tourism Tattler website at http:// www.tourismtattler.com/?p=16898
On-Site Training
MasterDrive is an Advanced Driver Training company, with their core focus being Defensive Driver Training. MasterDrive was created by AVIS FLEET SERVICES in 1999. The intention of this driver training service was to improve existing driving skills which would result in reduction of costs to 3 key areas, namely: • Vehicle Maintenance • Fuel Usage • Crashes. These are three of the biggest expenses to a company’s bottom line.
MasterDrive instructors travel all over Africa and abroad to train corporate drivers at locations selected by their clients. The courses are for all drivers and MasterDrive works in your choice of cars, SUVs, LDV’s and/or HCV’s. While professional drivers will benefit immensely from a MasterDrive course, they would be taught in one of the aforementioned vehicles rather than in buses or larger trucks because they will be working on awareness and attitude rather than just handling skills, and it can be assumed that your professional drivers are individuals who have already passed an adequate test of their truck or bus handling capabilities. There is no need for you to put a large, expensive vehicle temporarily out of commission in order for your drivers to learn what MasterDrive teach.
This proved to be a successful entity on its own, and MasterDrive now supplies a variety of Advanced Driver Training courses not only to AVIS, but to a host of other companies and individuals as well.
Depending on your requirements, training is either for Defensive Driving or for genuine Advanced Driving. Courses vary in duration and intensity, depending upon the clients specific requirements.
MasterDrive are now proudly involved in ARRIVE ALIVE, STAY ALERT, STAY ALIVE, as well as many other road safety initiatives. MasterDrive strives to host a variety of campaigns in association with likeminded organisations, who are committed to road safety.
Defensive Driving By attending the MasterDrive Defensive Driver Training Course you will drive to prevent a crash despite the incorrect actions of other road users in all weather and road conditions. These skills are not taught when learning or gaining driving experience over the years – these are specialist skills only learnt by taking an Advanced Driving Course. Hijack Risk Management Learn the best way of avoiding potentially dangerous hijacking situations and learn high-level awareness skills to increase your general safety and to avoid smash and grab situations. With the MasterDrive Hijack Risk Management Workshop, knowledge and practical skills are gained through unique audio visual presentation and practical demonstrations. For more information call +27 (0)11 867 4778 or email Justine@MasterDrive.co.za or visit www.masterdrive.co.za.
Note: Read the Terms and Conditions of this competition at: www.tourismtattler.co.za/wp-content/images/January2015Competition-Terms-Conditions.pdf JANUARY 2015
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CONSERVATION
2015 - Year of the Rhino? Unofficially, the national statistic for rhino poaching deaths in 2014 is 1173 – will 2015 be any better? By Trevor & Susan Barrett. Even the official statistic of 1020 poached rhino (as at 20 November 2014 - see table below) is hard to accept. What’s worse, is that it equates to one rhino poached every 8 hours. South Africa and its national parks should be in lockdown mode, and globally we should all hang our heads in shame for standing by as one of the most iconic animals in Africa – on the planet – slowly slides toward extinction. According to the IUCN, it was estimated that as of 2010 South Africa had 20,711 rhino. These are extremely sobering, and frightening, statistics. 2014 was a very bad year for rhino, and 2015 might not be a happy one for them either unless the government of South Africa stops talking and gets moving alongside the many people who are desperately trying to save rhino every day. There are many people out there working night and day to try to stop this horrific slaughter. Game guards, field rangers, canine and foot patrols, fundraisers, NGO’s and conservation organisations, social media sites, private rhino owners and orphanages…the list goes on. But where is the South African government’s sense of urgency and outrage in all of this? Here is an excerpt from the Minister of Environmental Affairs, Mrs Edna Molewa’s speech in Parliament, 02 Sept 2014: “Honourable Members, the lure of the poacher is a strong one… especially if you believe your future to be bleak and your prospects to be non-existent. But it is a road we are determined to dissuade them from taking. And it starts with the young. The seeds of national pride in our rhino and its protection are most fertile in the minds of the youth. The values of pride, responsibility, and duty to protect – once successfully instilled in them, never leave. But we cannot promise them words alone. It is our responsibility to redirect the energies of the young towards useful, income generating projects that mean they remain far from the poacher’s snare.
Our very first impressions of the recently convened public hearings into rhino poaching tell us that if offered alternatives, communities are inclined towards upliftment and conservation – not crime. We are a country committed to sustainable utilization of natural resources. Which is why Cabinet has also authorized my department to explore the feasibility of a legal trade in rhino horn products. The application of economic fundamentals to issues around a proposed legal trade, also known as rhinonomics: is among the terms of reference of a Panel of Experts appointed to look into this issue ahead of the CITES Conference of Parties in 2016.” We agree with the minister that conservation starts with the young, and that the responsibility to protect must be instilled from an early age. But we must still ask the question: how will rhinonomics provide “income generating projects” for youth that will save the rhino? This is just one of the unanswered questions that the DEA and ANC have evaded since 2012, when the Rhino Issue Management (RIM) Workshops were held to address the issues of rhino safety and security, and commerce; we have yet to hear the detail on how ‘rhinonomics’ would work in practice. The legal trade debate in rhino horn has been a constant distraction during the last four years of escalating criminal activity and uncontrolled poaching. Too much time has been wasted discussing, debating, and deliberating- in other words, dithering. While rhino are dying. Prioritise rhino poaching in 2015. Put it high on the political agenda where it belongs. Educate people and politicians to the desperate urgency of this crisis. Positive action is needed. The time is now to prioritise, politicise, put in practice. No more debating, dithering, death. About the Author: Trevor & Susan Barrett publish a blog dedicated to conservation at http://rhinocrash.net/
Rhino Poaching Deaths vs Poacher Arrests - Stats for South Africa by Province Year 2010 2011 2012 2013 2014 Deaths vs Arrests Deaths Arrests Deaths Arrests Deaths Arrests Deaths Arrests Deaths Arrests KNP 146 67 252 82 425 73 606 133 672 147 MNP 00 00 06 00 03 00 03 00 01 00 Gauteng 15 10 03 16 01 26 08 10 03 21 Limpopo 52 36 80 34 59 43 114 34 110 60 Mpumalanga 17 16 31 73 28 66 92 00 70 43 North West 57 02 31 21 77 32 87 70 58 14 Eastern Cape 04 07 11 02 07 00 05 26 15 02 Free State 03 00 04 00 00 06 04 07 04 00 KwaZulu-Natal 38 25 34 04 66 20 85 63 84 57 Western Cape 00 02 06 00 02 00 00 00 01 00 Northern Cape 01 00 00 00 00 01 00 00 02 00 TOTAL 333 165 448 232 668 267 1004 343 1020 344 KNP = Kruger National Park, MNP = Mpumalanga National Park. Statistics released by the DEA as at 20 November 2014. Source: www.wessa.org.za
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Incidents of poaching can be reported to the anonymous tip-off lines 0800 205 005, 08600 10111 or Crime-Line on 32211.
DESTINATIONS
KwaZulu-Natal South Coast - 2015 and Beyond A New Year message to the travel trade from Ugu South Coast Tourism CEO, Justin Mackrory.
A busy year, cramped with challenges overcome, new initiatives and exciting opportunities setting the path going forward in 2015. As with any business, and especially those with the adage `client is king’ as our focus, has been on growing specialist attention on a variety of niche markets. These include: Eco and outdoor adventure; Convention and business tourism, Sports and Health tourism, Cultural and Heritage, Music and Festivals, the Informal Relaxer, Nature based tourism, Avitourists and the Mature Mobiles. As our destination is generally recognised for its value for money family holidays, we already boast diverse offerings here on the South Coast of KwaZulu-Natal – now we are seeking packaging in terms of experiences and accommodation, which can be further loved by the demographic of guests we have frequenting our shores ranging from the Campers to the 5* Hotels and everything in-between. We have also begun an intensive research project on setting up a series of Multi-trails and whilst this is an ambitious project, will no doubt bring great economic activity in the `off the beaten track’ areas within our destination.
Whilst the economy is not in the ripe shape, which has resulted in many South Africans being very cost conscious, embarking on less trips away from home and often for shorter duration, are where tourism organisations such as ours can excel. Underpinning any tourist or business visit, the introduction of the 'Sunny & Safe' initiative, launched in December 2014 (see Tattler article: Sunny and Safe season for KZN South Coast) has allowed our guests the freedom to feel safe and secure on our shoreline. With the crime rate on the lower end of the scale we are proud to say that the Sunny and Safe campaign is gaining increasing impetus and in 2015 we are taking this key campaign to new levels. More information on this key campaign will follow building towards our Easter season. So may the Pimms and Oysters, the Bring and Braai and the indulgence of relaxing and eating at some of our finest restaurants give you the energy to face 2015. For more information contact Nikki Tilley on 039-682 7944 or email marketing@tourismsouthcoast.co.za
www.tourismsouthcoast.co.za JANUARY 2015
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Exploring the Cape Whale Coast
▲
Overstrand - South Africa
GPS Coordinates: 34°25'S 19°20'E
If unusual destinations and unique experiences are attributes that differentiate tour operator and travel agent success, then the Cape Whale Coast region of South Africa’s Western Cape province should be included as it possesses both in abundance, writes Des Langkilde.
The star attraction. Hermanus ihas become known as a mecca for whale watching during the southern hemisphere winter months (June - October), when in excess of 100 whales can be in the area with their young as they come to Walker Bay to calve and mate. Many behaviours such as breaching, sailing, lobtailing, or spyhopping can be witnessed. Image courtesy of www.southernrightcharters.co.za
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DESTINATIONS - OVERSTRAND, SA
Proteas grow abundantly among the fynbos in the Kogelberg Biosphere, Onrus Mountain Conservancy and the Fernkloof Nature Reserve.
As a publisher and travel writer, I’ve visited Cape Town and its wine regions on many occasions but have never ventured beyond the Kogelberg mountains and over Sir Lowry's Pass to explore the Western Cape province of South Africa’s Overberg region (the name translated from Afrikaans, literally means 'the other side of the mountain’). Until now, that is! Having been lured to the region by my good friends, Geoff and Charlise Elske, who own and operate Mountain View Manor, a luxury guesthouse in Sandbaai, Hermanus, and by Charmaine Beukes of White Shark Projects in Gansbaai, my initial intention of a short two week stay in Mid November 2014 has extended to the end of January 2015. In this article, I will focus on a general overview of the Overstrand region, as the coastal towns of the Cape Whale Coast are where the majority of tourists flock. To keep this article brief, I have included hyper-links for further reading on attractions or places of interest by underlining them. In future editions of Tourism Tattler, I will report on specific niche tourism attractions in the region, such as Responsible Tourism, Eco Tourism and Avitourism.
Due to Overstrand’s close proximity to Cape Town (an hour’s drive East of the International airport, along the N2 freeway through Somerset West and Sir Lowry's Pass and take the Hermanus / Botrivier off-ramp) many of the towns are holiday resorts. The municipal area of Overstrand is huge, covering a surface of almost 1708 square kilometres, which stretches along the Atlantic seaboard from Betty’s Bay in the East to Gansbaai in the West, and has four tourist information centres located in Kleinmond, Hermanus, Stanford and Gansbaai. The largest town is Hermanus, which is situated on the northern edge of Walker Bay next to the Klein River mouth.
Clarence Drive Opting for the more scenic drive from Cape Town (after the N2 Sir Lowry’s Pass section, turn right at the Gordon’s Bay / Kleinmond sign and left at the T-junction in Gordon’s Bay, onto the R44), Clarence Drive is a coastal road carved from rocky sea cliffs, which in my opinion rivals Cape Town’s Chapman’s Peak Drive between Noordhoek and Hout Bay in terms of scenic beauty (and without any toll fees), and provides magnificent views across False Bay to Table Mountain and the Cape Peninsula. Although Clarence Drive is rather steep, there are ample lay-by view points (sufficiently wide enough for tour coaches), which provide tourists with ideal photo opportunities and an ideal introduction to the region en route to their accommodation.
One of the many lay-by view points along Clarence Drive JANUARY 2015
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Pringle Bay beach viewed from Clarence Drive.
Clarence Drive leads through the Kogelberg Biosphere, the first and only Biosphere in South Africa to be proclaimed by the United Nations' Educational, Scientific and Cultural Organisation (UNESCO): a testament to the stunning diversity and large number of its flowering plants, many of which are found nowhere else in the fynbos biome. The reserve boasts more than 1,880 different plant species, of which seventy seven species occur nowhere else on earth (the next richest is the South American rainforest with just 420 species per 10,000 square kilometres). The Drive leads to Kogel Bay – a surfers paradise with barrel breaks curling along an expansive stretch of white beach, favoured by topless sunbathers for its sheltered cove and protection from occasional southeaster wind.
Rooiels to Kleinmond Rooiels is the next attraction along the Cape Whale Coast route – a small seaside village and a favourite spot for family outings on the beach. Five kilometres on is Pringle Bay, with quaint holiday homes along the shoreline and a few restaurants for light lunches. Hangklip (‘hanging rock’ literally named after the draping rock-face that appears to cling to the mountainside) appears to the right of a sharp bend in the road and forms the entrance to False Bay with its 22 meter lighthouse tower that has kept sailors, seafarers and fisherman safe since 1960. Driving another ten kilometres reveals Betty's Bay – once the site of a whaling station and home to one of only two mainland Jackass Penguin Colonies in South Africa (the other is Boulder’s Beach - in Simon’s Town, which forms part of the Table Mountain National Park Marine Protected Area). The Harold Porter National Botanical Garden is well worth a visit and is located within the Kogelberg Biosphere Reserve. The nominal entrance fee (see link for rates) is worth the privilege of experiencing the garden trails, and guided group tours can be arranged by booking at least two weeks in advance. Kleinmond, at the foot of the Palmietberg, is the next town and the Hangklip-Kleinmond Tourism Bureau is located in the Protea Centre on the left of Main Road – worth a brief stop-over to collect product brochures and view their display of local artefacts and fynbos plant samples. The Kleinmond new harbour area is also worth a visit, where your clients can buy honey, biltong, dried fynbos flowers, arts & crafts or enjoy fresh oysters and line-fish at any of the several restaurants. Organised annual events along the Hangklip-Kleinmond route include the Totalsports Challenge (a seven discipline sporting event) in January, the Big Blues Music Festival in March, African X Trail (trail running) in April, Gravity Adventure Festival in August, Windgat Festival (enviro family event) in September, and the Hot Heels Africa (downhill skateboarding) event in December. From Kleinmond, the R44 road leads past the Botrivier Estuary and ends in a T-junction on the R43, where one can either to turn right towards Hermanus and the Whale Route, or turn left to explore the Elgin Valley and Overberg countryside along the N2 towards George and the Garden Route.
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Fisherhaven lagoon is an ideal location for fishing and water sports.
Fisherhaven to Hermanus Opting for the right turn, the pristine Onrus Mountain Conservancy flanks the left side of the road as one passes by the seaside resorts of Fisherhaven with its lagoon, yacht club, public slipway and playground, and a herd of wild horses that have adapted to a diet of slightly saline water and plants. (It is interesting to note that during World War II, the Royal Air Force Squadron 262 established a diversion base at the lagoon and Consolidated PBY Catalina flying boats operated from here), Hawston, which boasts an immaculate Blue Flag beach, and Vermont with its luxurious homes nestled amongst the fynbos or overlooking the rocky coastline. Onrus is the next village, which means 'restless' in Afrikaans, referring to the pounding of the surf on the rocky coast. It is a predominantly residential area close to the coastline, as is Sandbaai (Sand Bay), which neighbours Onrusrivier and shares a popular swimming beach. Proceeding along the R43 (note the speed restriction signs), a sign posted turn-off on the left to Rotary Way leads to the top of the mountain range, giving the viewer an elevated panoramic photo opportunity of this pristine area. A view from the top of Rotary Way looking towards Hermanus, Grotto beach, the Klein River estuary and Walker Bay Nature Reserve.
Back onto the R43, the New and Old Harbour turn-off appears on the right. The Old Harbour Museum is well worth a visit. The museum comprises two sections: the Historical Old Fishing Harbour and the Fisherman's Village that displays boats, the old sea wall, brine tanks and 'bokkom' (salted fish) stands. The indoor museum houses a photographic exhibition of Old Hermanus, which dates back as far as the end of the 19th Century and beginning of the 20th. Continuing along the R43, the road leads into Hermanus (originally called Hermanuspietersfontein, but shortened as the name was too long for the postal service), which is the commercial hub of the Overstrand and is famous for southern right whale watching during winter and spring (June to September) - hence the Overstrand’s marketing slogan: ’The Whale Coast’. Whales were once hunted in Betty's Bay, but are now protected to ensure the survival of the species. The Old Harbour Museum contains several exhibitions that explain the whaling industry, and the De Wetshuis Photo Museum houses an exhibition of photos that depict the history of Hermanus. The Whale Museum houses a skeleton of a whale and shows an audio-visual presentation of whales and dolphins twice daily. The Old Harbour viewed from Rotary Way.
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An image of the sun taken from the SANSA Space Science observatory in Hermanus on 08/01/2015 at 13:19 GMT.
Hermanus has what is believed to be the world's only Whale Crier, whose job is to blow his kelp horn thus announcing where whales have been spotted. His calls can also be heard during tours, as the group visit several of the more well known areas for whale watching and are told the related history of Hermanus. The current Whale Crier is Eric Davalah, who out of season can be found at either the Information Kiosk at the Village Square or at the Hermanus Tourism Bureau in Mitchell Street.
Popular attractions in Hermanus include the 1800 hectare Fernkloof Nature Reserve, the Hemel-en-Aarde Valley – a 6.7 kilometre Wine Route along the R320 to Caledon, Gearing's Point and the Cliff paths, which offer one of the best locations for whale spotting and watching, and the Blue Flag Grotto Beach, which stretches for almost 18 kilometres, fronting the Klein River lagoon and Walker Bay Nature Reserve, and has two beach-friendly wheelchairs in place for those with physical disabilities to access the sea.
Besides it’s reputation as a whale watching destination, Hermanus is also one of the few municipalities that taken accessible tourism seriously by providing demarcated areas with 'Disabled Friendly' logo signage. Bathrooms for disabled visitors can be found at the Market Square and Municipal Library, whilst recreational facilities where the disabled can be accommodated are at the Village Craft Market, Fernkloof Nature Reserve, certain parts of the Cliff Paths, Voëlklip beach, the Public Library, the Cliff Top Development and Grotto Beach. Note: for helpful hints on catering to the needs of disabled tourists, read the QASA ‘Sawubona Disability’ booklet for Myths, Manners, Do’s & Don’ts about Disability.
Hermanus is also home to SANSA Space Science, formerly known as the Hermanus Magnetic Observatory. SANSA Space Science is the warning centre for Africa, one of thirteen regional warning centres around the world, which monitor extreme space weather and solar magnetic activity.
The Whale Crier of Hermanus - Eric Davalah
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Annual events in Hermanus include the FynArts Festival (June), the Kalfiefees and Food and Wine Festival (Hermanuspietersfontein) in August, the Whale Festival and the Flower Festival (BOTSOC) in September.
Grotto Beach in Hermanus, showing the beach-friendly wheelchairs
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The boat launch site at Kleinbaai, which has earned Gansbaai its reputaion as the 'Great White Shark Capital of the WorldTM'.
Stanford to Gansbaai Driving through Hermanus along the R43, the village of Stanford lies inland, about a 20 minute drive from Hermanus. This quaint historic village is ideal for day trippers looking for antique stores, restaurants, vineyards, coffee shops or a picnic in the country. Stanford is fast becoming a food destination with chefs serving an array of fresh and locally produced food with a leaning towards the slow food movement. Foods range from family fare, gourmet delights, country comfort cuisine, pub grub to fine dining. Continuing along the R43, the Grootbos Nature Reserve rises against fynbos clad hills above Walker Bay with breathtaking views of dunes, sea and the distant Cape of Good Hope. Within this ecoparadise, lies the Grootbos Private Nature Reserve with two 5-Star luxury lodges, a Villa, consisting of six elegant suites accommodating up to 12 guests, and two fully equipped spa facilities (read more about their eco- and responsible tourism initiatives in the February 2015 edition of Tourism Tattler). De Kelders (‘The Caves’ in Afrikaans) is the next turn-off. De Kelders is a residential area and in spite of its reputation as a premium whale watching site, it has been immune to large scale tourism developments. There is a restaurant, bakery and pub in De Kelders as well as a coffee shop overlooking the bay. De Kelders has several guesthouses and B&B’s of which many are situated right on the cliffs overlooking the ocean. Gansbaai is the next town along this stretch of the Cape Whale Coast. The town of Gansbaai is the business hub of the area, with a number of restaurants and a commercial fishing harbour. The Danger Point Lighthouse is situated on the Gansbaai peninsula , which is a rock reef that extends for about 8km out to sea. A hidden rock lurks just below the surface off the Point, and it is this rock
that the legendary HMS Birkenhead collided with and sank in 1852. Seven shipwrecks surround Danger Point and 140 wrecks are dotted along the shores between Danger Point and Cape Infanta. Blompark is located in the heart of the Gansbaai area, surrounded by fynbos vegetation and only a short walk on the gravel road to Romansbaai, traditionally the beach for the people of Blompark. Many of the inhabitants of Blompark are descendants of the earliest residents of the Gansbaai area. Up to 40 years ago, the community now living in Blompark had their traditional home more or less immediately on the doorstep of Romansbaai, next to the old municipal stores, called the “Old Location”. Today the Blompark people call their former home the “Nets Court” to pay tribute to the fishing tradition that was established there. Kleinbaai, on the eastern side of Gansbaai is the launch site for white shark cage diving, which takes between 3-5 hours, depending on the weather, sea conditions and shark behaviour. Trips depart from Kleinbaai harbour and the anchor site depends on the sea conditions, weather and previous shark sightings. Tourists wishing to cage dive do not have to be scuba qualified. Weather permitting, White Shark cage diving and sightseeing tours run daily, however prime viewing time is in the South African winter months when the sharks have a particularly active feeding pattern. The following guide is based on observations by White Shark Projects over the past eight years. Allow for an overlap between seasons: • Peak season: April to October (99% success rate). • High season: November to December (90 – 99% success rate). • Intermediate season: January to March (80 – 90% success rate). Water temperatures vary between 12 and 20 degrees Celsius during peak and high season and between 10 and 16 degrees Celsius during intermediate season.
+27 (0)28 384 1774 | bookings@whitesharkprojects.co.za | www.whitesharkprojects.co.za JANUARY 2015
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Shark bait: Cape fur seals flourish on Dire Island and Geyser Rock (in case you're wondering, the sign has been superimposed - it's actually located in Kleinbaai).
Dire Island, located a few kilometres south of Gansbaai, is a protected bird sanctuary and used to house a large colony of African Penguins - about 25 000 pairs. Today, there are only about 900 penguin pairs left due to human interference This small, twenty hectare island is the easternmost of the chain of seabird islands off the Western Cape. Rare, endangered bird species such as the Roseate Tern and the Leach’s Storm Petrel still breed on the island, as well as seabirds such as the Whitebreasted, Cape, Bank and Crowned Cormorants, Kelp Gulls and Hartlaub’s Gulls, and Swift Terns. Huge roosts of terns, mainly the migratory Common and Sandwich Terns, occur in summer. Antarctic Terns, which breed on the subantarctic islands, roost here in winter. Dyer Island is a nature reserve managed by CapeNature, but has no visitor access facilities. This is understandable both in terms of the sensitivity of the island’s birds to disturbance, and because it is very tricky to reach. The best landing place on the island can only be used in fairly calm conditions. Many people (including scientists) have been stranded there, waiting for the weather to clear! Adjacent to Dyer Island is Geyser Rock, where a colony of 60 000 Cape Fur Seals breed. The strip of sea between Dyer Island and Geyser Rock is aptly dubbed 'Shark Alley', as the seals who feed here are a constant food source to the sharks. During winter months (May to August), the alley is a hub of activity when many young seal pups end up as easy, juicy shark meals. The area around Dyer Island and Shark Alley is ideal for shark cage diving and provides excellent sightings of shark breaching and predation. It is an amazing experience to watch a Great White leap right out of the water to ambush a seal. This is the reason why Gansbaai is known as the 'Great White Shark Capital of the WorldTM'.
Franskraal to Die Dam Franskraal, a short drive up from Kleinbaai, is a seaside village boasting a safe swimming beach and is a botanist’s dream. The signposted 'Groot Melkhoutbos Trail' provides a lovely meander through a Milwood forest. The historical Strandveld Museum on the beachfront of Franskraal, has the largest collection of relics of the HMS Birkenhead. The owners are local historians and marvellous story tellers who will gladly conduct tours for a trip through time. Baardskeerdersbos forms part of the Gansbaai municipal region and is located inland (turnoff on the left of the R43 before Uilenkraalsmond). Baardskeerdersbos Valley is one of the most undisturbed and original areas of the Overberg. The village apparently gets its name from the small spider-like Solifugae arachnids known as 20
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Baardscheerders (Beard Shavers), which purportedly cut human hair for nest-making purposes. The first mention of Baardskeerdersbos is to be found in a report-back to Jan van Riebeeck in 1660 by an expedition team of five men who reported on the village and its Khoikhoi residents. The newly formed Art-Route invites visitors into the homes of artists and crafters on certain weekends of the year. Uilenkraalsmond follows Franskraal and is situated at the mouth of the Uilenkraal River. This is a very popular holiday resort with a modern caravan park, supertube, putt-putt course, trampoline and pub. Its tranquil lagoon is safe for swimming and tourists can enjoy long walks on the beach. Pearly Beach is next on the R43 Cape Whale Coast Route. This is a small, laid back seafront village, where the main attraction is seemingly endless, white, unspoilt beaches. In spring (August-October), the wild flowers are quite spectacular. Among the variety of bird life, twitchers will find the endangered Black African Oystercatcher and the Cape Sugar Bird. Some of these can be seen in the Fynbos garden that has been established, and along the interpretive beach walks whilst exploring the shoreline ecology. After Pearly Beach, the R43 to the east mysteriously ends in the middle of nowhere. It does not even continue with a dirt-track. This road to nowhere ends exactly at the eastern extreme of the Gansbaai area. However, if you turn right towards the sea a few kilometres before the end of the road to nowhere, you end up at a secluded spot on the beach, known as Buffeljagsbaai (Buffalo-hunt bay). It is a small settlement of one street and a bit. The residents live off the sea as they always have. Buffeljagsbaai is neither a place of luxury nor of facilities for the day-visitor, yet its raw beauty and seclusion makes it an attraction in itself. On the other side of Buffeljagsbaai is Jessie se Baai (Jessie's Bay), named after the ship of the same name that was wrecked here. The impressive solidified sand dunes towering over the beach are the reason that the locals know this place by another name: Die hohe walle (The high walls). At the end of Jessie se Baai is where the land-mass of Quoin Point begins. Quoin Point is the second most southern point of the African continent and one of the most densely packed shipwreck graves of the South African coast. Quoin Point is devoid of man-made things, apart from a small light-tower and few fishing cottages owned by the Schipper and October families of Elim. These families were granted
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Luxury accommodation along the Cape Whale Coast, such as this lodge at Grootbos Private Game Reserve, will meet the needs of discerning clients.
the right of use of this small peninsula by Queen Victoria. After the wreckage of yet another English ship, the English government thought it was a good idea to have people living here permanently. The document granting this right to the respective Elim-people was signed by Queen Victoria herself. Die Dam, is a popular fishing spot and forms the absolute end of the R43, and hence the end of the Cape Whale Coast route.
Tourist Guides Of course, the Cape Whale Coast is best experienced with the knowledgeable raconteuring of a registered tourist guide. Local guides can be sourced by contacting one of the Tourism Bureaus (see links below) or by searching for a member on the Cape Tourist Guides Association website.
Conclusion It is apparent from this article that the Overberg region, and specifically the Overstrand (Cape Whale Coast) has an abundance of natural attractions and a vast array of accommodation establishments to suit all travel budget requirements. Whilst I have attempted to visit as many attractions along the Cape Whale Coast route as possible, I have only scratched the surface. Future editions of Tourism Tattler will feature more in-depth reviews as I plan to extend my stay in this magnificent tourism destination. Below are a few links for further information:
Links: Accommodation in Pringle Bay, Betty's Bay & Rooi Els: www.baytown.co.za Accommodation website for members of the Hermanus Tourism Bureau: www.whalecoast.info Business Directory and Tourism Portal for the Overberg: www.hermanus.co.za Gansbaai Tourism Bureau: www.gansbaaiinfo.com Hermanus Tourism Bureau: www.hermanusaccommodation.co.za Hangklip - Kleinmond Tourism Bureau: www.ecoscape.org.za Official website of the Cape Whale Coast Destination Marketing Organisation: www.overberg.co.za Overstrand Municipality: www.overstrand.gov.za Stanford Tourism Bureau: www.stanfordinfo.co.za
Sunsets are the coup de gr창ce of the Cape Whale Coast and precede another attraction on cloudless nights - namely star gazing, which is maginfied by the 'Champaign Air' of Hermanus.
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EDUCATION
Hospitality Educators Debate Challenges in Africa The Private Hotel School’s Dr. Deborah Johnson recently participated in the 32nd annual EuroCHRIE (International Council for Tourism and Hospitality Educators) conference held in Dubai and hosted by The Emirates Academy of Hospitality Management, writes Charlene Nieuwoudt. More than 250 delegates from over 50 countries met to discuss cutting-edge research results related to tourism and hospitality education and to develop professional networks. Dr Johnson, the Vice Dean of Innovation and Strategic Planning at the The Private Hotel School in Stellenbosch presented a paper pertaining to hospitality education as part of a special segment entitled Charting the Future: Hospitality and Tourism Education in Africa. The focus of her paper was the challenges currently facing tourism and hospitality educators in Africa. She based her presentation of numerous interviews with various educators and professionals throughout Africa to obtain their perceptions regarding the challenges this industry currently face. “The indication was that there is a lack of quality standards regarding tourism and hospitality education as well as a lack of first-class curriculums,” she says. “Other challenges sited in the interviews included uncoordinated levels of education, not enough education providers with accepted accreditation, the lack of industry relevancy in current offerings, and the lack of qualified and experienced staff.”
▲ EuroCHRIE Management Board: Prof John Lohr. Prof John Fong, Ms Belinda Nwosu, Mr Richard Ginioux, Dr. Anders Justenland, Prof Liz Ineson, Prof Jan Willem Meijerhof, Prof Jouni Ahonen, Prof Kevin Nield, Mr Henri Kuokkanen, Dr. Deborah Johnson, Mr Christian Perette, Mr Bill Samenfink, Dr. Steven Rhoden and Dr. Susan Horner.
Despite these challenges, the potential for growth in terms of tourism and hospitality on the continent is vast. In 2013 the World Bank indicated as much and claimed that 1 in every 25 people in African should be able to find employment in this industry. Dr. Johnson is passionate about the tourism and hospitality industry in Africa: “It is vital that we actively research this industry regularly so that we can keep up with the changing demands and realise the potential for growth,” she says. “Industry leaders should share their successes and the formation of collaborative relationships between institutions will increase in importance.” Earlier this year Dr. Johnson was appointed to the management board of EuroCHRIE and also serves as their area consultant for Southern Africa. For more information visit www.privatehotelschool.co.za or www.eurochrie.org
Dr Johnson, the Vice Dean of Innovation and Strategic Planning at the The Private Hotel School in Stellenbosch
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EVENTS
The International Institute for Peace through Tourism (IIPT) is convening a World Symposium on Sustainable and Peaceful Communities and Nations through Tourism, Culture and Sport to be held at Emperors Palace, Johannesburg, from the 16th to the 19th of February 2015, writes Bernadette Nickol. The interactive and action oriented Symposium will honour the legacies of the world’s three great champions of Peace and NonViolent Resistance: Nelson Mandela, Mahatma Gandhi and Martin Luther King, Jr. with the aim of affirming these legacies by building bridges of tourism, friendship and peace in regions throughout the world. The Symposium, endorsed by Archbishop Desmond Tutu, will also commemorate the 50th Anniversary of the African Union, 20 years of South African Democracy and 50th Anniversary of Civil Rights Legislation in the U.S. IIPT is using its historical convening power to bring world leaders of the travel and tourism industry to South Africa as keynote speakers for this milestone event including:: Dr. Taleb Rifai, Secretary General, UN World Tourism Organization (UNWTO); Mr. David Scowsill, President and CEO, World Travel and Tourism Council (WTTC); Salih Cene, President, Skal International; Martin Craigs, (until recently) CEO, Pacific Asia Travel Association (PATA); Professor Geoffrey Lipman, President, International Coalition of Tourism Partners (ICTP); Mok Singh, Skal International President (2012 – 2013) and member, IIPT International Advisory Board as well as leading Ministers of Tourism including the visionary Hon. Alain St. Ange, Minister of Tourism, Seychelles and creator of the Carnavales de Carnavales. Host Minister, Hon. Derek Hanekom, Minister of Tourism, South Africa has of course also been invited. The Symposium will have two basic aims: to identify strategies and best practice in cultivating productive, sustainable, peaceful and welcoming communities through tourism, culture and sports; and to determine lessons learned from countries that have experienced conflict and the potential roles of tourism, culture and sports in reconciliation and post-conflict socio-economic re-development. Design of the Symposium will be highly interactive with international experts in community development, community tourism, sports, culture and peace engaging with delegates in the exchange of experiences and ideas. Ministers of Tourism from countries that have experienced conflict will share their insights and suggestions related to strategies for reconciliation and healing wounds of conflict and best practices in harnessing tourism, culture and sports in the postconflict socio-economic re-development process.
In addition to Ministers of Tourism from Africa, selected Ministers from countries of Europe, Asia and South America that have experienced conflict will also be invited to participate in inter-active plenary session panels. A special action initiative already begun in commemoration of the 50th anniversary of the African Union is an IIPT/Skal Cities, Towns and Villages of Peace Across South Africa project with a goal of 50 cities, towns and villages dedicating themselves to peace in the weeks leading up to the Symposium. Some ten cities, towns and villages have already registered. Other action initiatives will be announced in the weeks prior to and during the Symposium. As with past IIPT Conferences and Summits, Pre-Symposium Events will include a full day Educators Forum and full day Student/Youth Leadership Forum. As well, following the precedent of IIPT’s Fifth African Conference in Lusaka, Zambia, a full day Traditional Leaders Forum is also planned. A full day community tourism training workshop and a half day media workshop will also feature as PreSymposium events on 16 February. Host Partners for the Symposium include: South Africa Tourism, Gauteng Tourism, the Metropolitan Municipalities of Ekurhuleni and Johannesburg, South African Airways and Peermont Emperors Palace. The United Nations World Tourism Organization (UNWTO), which has supported IIPT International events since the First IIPT Global Conference, Vancouver 1988, will again be a partner in the Symposium. Other partners include: Pacific Asia Travel Association (PATA), Africa Travel Association (ATA), Skal International and the International Coalition of Tourism Partners (ICTP. This is IIPT’s seventeenth international event and seventh global summit since its founding in 1986, the UN International Year of Peace. IIPT is most grateful for the enthusiasm and support being provided by its Host Partners and looks forward to a strong participation of South African tourism professionals taking part in the Symposium. Special Travel Industry rates are available to attend the Symposium. For more information visit www.iiptsymposium.com or www.iipt.org JANUARY 2015
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HOSPITALITY
Why Deep Discounting Doesn’t Work Hotels that participate in last-minute discount deals might not make the best business decision – no matter whether it is done to raise awareness or as a way to boost occupancy. By Jean Francois Mourier. Black Friday is a day filled with discounts on every product imaginable and for days beforehand, serious bargain-hunters are strategically planning their “plans of attack”. This past Black Friday, which took place last month, gave US discount shoppers a fantastic opportunity: the ability to purchase hotel stays at many properties across the country for only $7 per night. Sounds great right? Well, it was… for consumers. However, for the hotels that participated in this deal (offered through a last-minute deals app) might not have been the best business decision – no matter whether it is done to raise awareness or as a way to boost occupancy. Deep discounting is counterintuitive because giving away rooms for practically nothing results in a drastically decreased RevPAR and because it can damage a hotel’s brand. Here’s why… For years and years, most consumers have associated a higher price point on a product or service, to be indicative of a better product. While it may not always be true, perception is reality, especially in business. By offering a room rate of $7 (in many cases a discount of 95% or more), these hotels were telling consumers that the hotel is a bargain brand, even if that is the furthest thing from the truth. After seeing that a property was willing to sell their rooms for $7 per night, how will a consumer be able to rationalize having to pay full price for their next stay? The answer is simple: they won’t. That means that while this type of deal does increase a property’s occupancy, it isn’t actually beneficial in the long-term for the property. Extreme bargain-hunters are much less likely to spend on incidentals while staying at your property, like food and beverage or spa treatments, so the money lost in the room rate will most often not be recouped by extras during the guest’s stay. Beyond that, most of the consumers that do come to stay during this type of promotion will not return again, no matter how great their stay is, because the value in the regular priced room is non-existent after they were able to get the same product for $7 on a different occasion. I read an interesting article in Tnooz recently called 'Why you should avoid selling rooms for peanuts on last-minute hotel apps', which examined the subject of deep discounting and came to the same conclusion: deep discounting doesn’t work. 24
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The Tnooz article gave four great tips for how to increase occupancy and revenues without discounting but I think that it missed one key tip: Using sophisticated revenue management technology to ensure that your property is able to consistently maintain a high RevPAR and occupancy. Sophisticated revenue management technology enables hotels to price their rooms on the online channel in the “sweet spot” where they will secure the most bookings and the highest RevPAR. As the market changes, as competitors update their rates and as inventory changes, a sophisticated revenue management system can continue to update a property’s room rate to ensure that it stays in that sweet spot. Without an RMS, most properties are only able to update their rates once a day - or in some extreme cases, even once a week guaranteeing that the property is not meeting its maximum earning potential. With an RMS, rate updates can take place in real-time, ensuring that a property is on top of its (revenue) game at all times, no matter the time of day (or night!). So my best advice is to listen to the experts. We all agree that deep discounts don’t work. There are many other much more effective (and less damaging ways) to boost RevPAR and occupancy, so next Black Friday (or any other day of the week that you need to put extra heads in your beds), act strategically and don’t go for the deep discount! About the Author: Jean Francois Mourier, is the CEO of REVPAR GURU, an alternative revenue management software solution, designed to deliver maximum bookings and profits. As REVPAR GURU's custom-designed Yield Dynamic Price Engine is the only real-time revenue management software available on the market, it meets the rapidly changing needs of hotels in a very demanding business environment. REVPAR GURU’s solution offers dynamic rate optimization, real-time pricing, integrated internet and extranet yield channel management and GDS sales distribution, to increase a hotel's RevPAR intelligently and effectively, while maintaining rate integrity and automated rate parity. Headquartered in Miami, Florida, additional information can be found at www.revparguru.com or by calling +1.786.478.3500.
LEGAL
In Part 1 (page 36 - August 2014), I categorised risk into five categories, namely; 1. PEOPLE, 2. MONEY, 3. LAW, 4. SERVICE and 5. ECOLOGY. I will be dealing with the risk profile of each, i.e. broadly speaking the areas of risk that any business is exposed to can been allocated under these five categories.
RISK
IN TOURISM – PART 6 –
THE LAW: CONTRACTS INTRODUCTION Contract constitute the very foundation of business, including the premises you work from (Purchase or lease), the people you work with (employment, partnership, shareholders) and the people to whom you sell your products or services and from whom you buy materials (stock, ingredients, stationery). It is thus very important to not only to understand what comprises a contract, but how to negotiate, draft (content), manage and enforce (either as plaintiff or defendant) a contract. I will deal with each of these elements. What comprises a contract? The one myth I must dispel immediately is that a contract must be in writing – there are many contracts that never go beyond a verbal arrangement and is not reduced to writing BUT is nevertheless as enforceable as if it were. The challenge of course is to prove the content in the case of a dispute – I am sure many of you have been in the ‘he said; she said’ scenario – this can turn out to be a very costly mistake so ensure in ALL cases that your verbal arrangement is reduced to writing AND signed by BOTH parties! A contract can be defined as follows: “An agreement entered into with the intention of establishing a legally binding obligation(s)”. Rather short and sweet but properly analyzed, a contract consists of the following COMPONENTS: 1. Offer and acceptance; 2. A legally binding obligation; 3. Consensus ad idem; 4. Performance must be possible; 5. Performance must be permissible; 6. The parties must have the capacity to contract; 7. Formalities (if any) have to be complied with; 8. Obligations must be certain or ascertainable. REQUISITE #1: OFFER & ACCEPTANCE This means that one party (“A”) offers something (i.e. either a product or a service) to another party (“B”) and “B” accepts the offer. Obviously there can be conditions attached to the offer. What is important however is that “A” must clearly be making an offer and “B’s” communication must be an unequivocal acceptance of the offer. If the acceptance is conditional or qualified, the response from
In Part 2, (page 22 - September 2014), I covered the category of 'People' under four sub-categories: Staff (discussed in Part 1); Third party service providers (‘TPSP’); and Business Associates. Part 3 (page 24 - October 2014), continued with 'PEOPLE' as Customers. Part 4 (page 27 - November 2014), started the discussion on the 2nd category, namely 'MONEY' in terms of CASH and CHEQUES. Part 5 (page 23 - December 2014), looked at CREDIT and CREDIT CARDS. In this issue we look at the third category, namely the LAW in terms of CONTRACTS.
“B” is not an acceptance, which concludes the contract. At best it may well constitute a counter-offer, which “A” in turn may accept or reject. Let’s take the example of a customer collecting a brochure from a travel outlet. The brochure contains all the glossy pictures, an application form and a list of terms and conditions, (which is referred to in the application form and the brochure). The customer completes the application form and the terms and conditions, but deletes one and amends another two of the terms and conditions. Does the actions of the customer constitute acceptance of the offer by the travel agent as contained in the brochure? No: What the customer has done is to make a counter offer, which counter offer the travel agent/tour operator is at liberty to accept or reject. In the event of the latter, no legally binding contract has come into being and no rights or obligations would emanate from the communications. Conversely the ‘booking cycle’ or ‘contractual relationship’ (critical transactional path - ‘CTP’) is mostly initiated the potential customer making an enquiry via one of various mediums: a telephone call from a new or existing client, an e-mail, via your website or a new client popping into your offices. It could be simple e.g. a flight to a local destination or complex e.g. a flight to an overseas destination with multiple stop-overs, etc. Your response to the enquiry will constitute your OFFER to the enquiry. Once accepted, that ACCEPTANCE constitutes the ‘final episode’ in the sequence and you now (should) have a legally binding contract. At this point it must be quite evident what the MOST IMPORTANT IMPLICATION of the above is: if you say the wrong thing or omit certain facts and the customer accepts, the customer will be getting something you did not really (want to) offer him or her! ‘Yes’, you can attempt to contest that on the basis of e.g. a lack of consensus (More about that in later articles), but would it not be better to have systems (e.g. a properly structured booking procedure) in place that assist you in saying the right thing and/or handle the enquiry the right way and/or ‘builds in’ safeguards’ (e.g. starting with an estimate and incorporating your standard terms and conditions)? Disclaimer: This article is intended to provide a brief overview of legal matters pertaining to the travel and tourism industry and is not intended as legal advice. © Adv Louis Nel, 'Louis The Lawyer', January 2015. JANUARY 2015
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MARKETING
Tourism Challenges in the New Year In part one of a two part series, Dr. Peter Tarlow looks at issues that are likely to challenge the travel and tourism industry during 2015. Now that the December holidays are past, and the parties have ended, just like almost everyone else, tourism professionals must return to a world of work and new challenges. From health issues to economic issues, from issues of social unrest to all too often substandard customer service, tourism officials face a host of problems. Some of these problems are within the tourism and travel industry's control. Although others are not in the industry's direct control their consequences directly or indirectly the industry and must be taken into account. Below is a summary of some of the issues with which tourism officials may have to deal during 2015.
SECURITY ISSUES
HEALTH ISSUES
The rise of ISIS and other radical terrorism groups posses a major threat to tourism. Not only is the tourism industry security sensitive, but major disruptions tend to have longer life spans than the news cycle at large. The coming year will present tourism security specialists with any number of challenges. Among these are:
Although it is still too early to note what the long range impact of Ebola will be on the tourism industry, tourism professionals would be wise to consider this disease not as a single event but rather as symbolic of any potential pandemic. There is a clear potential interrelationship between travel and the spread of a pandemic. The Ebola case should put the tourism industry on-notice as this is the first time in many decades when banning travel from one part of the world to another has been seriously discussed. Tourism officials must not only worry about the spread of disease but also a disease's economic impact. 26
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• Terrorism has not diminished but rather mutated. Single cell or lone wolf terrorism will increase their threat to the tourism industry and will be harder than ever to detect. • Terrorists have become social media savvy. Terrorism is no longer just about acts of violence, instead terrorists have learned how to create media centric violence. This means that terrorists have learned how to adapt the media to their own needs. • Cyber crimes will continue to haunt the tourism industry. Cyber crimes, once relatively rare in tourism, have become a major issues in the world of tourism. The fact that credit cards may be stolen and used without permission means that both public and private security officials must become ever more mindful of
MARKETING
this new threat. Many areas of tourism have adopted cash-free policies and if travellers are now afraid to use their credit cards or fear identity theft then the system is placed in jeopardy. • Cyber attacks on large corporations and privacy issues may become the norm. Until recently the idea of a cyber-war seemed to be more science fiction than reality. Now large corporations such as hotel chains and airlines may be vulnerable to attack. A cyber attack on the airline industries computers would be more devastating than the attacks of September 11 and could bring airlines to a complete halt. The fact that airlines are now equipped with Wi-Fi while in flight is both a convenience and a threat. Tourism Policing Forces (TOPPs) around the world will be more needed than ever. Currently in much of the world and especially in the United States police departments are facing an ever more hostile public. TOPPs units can go a long way to changing the image of the police and this positive blow-back may help all aspects of law enforcement. If security personnel can convince marketers of the importance of TOPPs units then these forces may help to create a dent in international crimes against tourists. If, however, these forces remain underfunded then additional problems may occur. Tourism police will need to have sub-specialties that range from issues of fraud to cyber crimes, from issues of petty theft to terrorism, from issues of terrorism to crowd control. The key will be that tourism can no longer afford to have law and security provider generalists, but rather will need specialists in multiple areas.
the tourism industry. The middle class must live on some form of budget. That means that if there is a major rise in taxes or other required services, the middle class may tend to hold back on what it considers luxury items. On the other hand, during periods of deflation, the middle class often waits for cheaper prices and creates a marketer's nightmare. Tourism is highly sensitive to economic uncertainty and the more turbulent the economy, the more precise the marketing needs to be. • The New Year may bring a great many undulations within the financial industries and these ups and downs will impact tourism. When the stock markets tend to rise, many people feel wealthier and are more willing to spend money. The opposite is true of a falling market. Note that the psychological macro impact is not connected to an individual's personal wealth. Members of the middle class tend to spend money as influenced by macro rather than micro trends.
CUSTOMER SERVICE
ECONOMIC ISSUES
Although in some parts of the world, such as the United States, the economy appears to be improving or at least not getting worse, this trend is not true for other parts of the world. In 2015 Europe may well enter into another recession and this may mean that Europeans may have to vacation less, and stay closer to home. Another worry is the viability of Europe's currency, the euro. A weaker euro or basket of currencies may make travel to Europe less expensive, but it also may mean that Europeans may have to cut our or shorten their vacation plans. Tourism professionals would do well to consider: • The cost of credit. Because so much of the middle class' purchases for expendable items are dependent on credit, it is essential to track the trends in credit. If interest rates rise, then middle class purchases become more expensive. In some places there is now the threat of deflation. Deflation tends to encourage people to wait for lower prices and deflationary cycles can become selffulfilling prophecies. • As in past years, the middle class will remain the heart of
The travelling public is learning how to demand more and is seeking alternatives to those businesses that are providing poor customer service. The past year saw new lows in many areas of customer service within the travel industry. Although airlines still lead the way in poor customer service, other parts of the tourism industry need to reconsider the quality of the service that they provide. A major sore point with travellers is the fact that there is a charge for minimal service items. Hotels that charge for water or Internet service are not winning new friends. The consistent "we charge for everything" policy of many tourism service providers has created a sense among many that the hospitality industry is more hostile than hospitable. About the Author: Dr. Peter E. Tarlow is the President of T&M, a founder of the Texas chapter of TTRA and a popular author and speaker on tourism. Tarlow is a specialist in the areas of sociology of tourism, economic development, tourism safety and security. Tarlow speaks at governors' and state conferences on tourism and conducts seminars throughout the world and for numerous agencies and universities. For more information visit www.tourismandmore.com or to subscribe to his 'Tourism Tidbits' newsletter email ptarlow@tourismandmore.com JANUARY 2015
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