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Tourism
in South Africa: Repositioning
the Country's
Brand
 “South
Africa exists in a very
competitive global environment.
It is competing with provinces in
China, cities in England, Eastern
Europe, Brazil etc. One clear
example of this competition is
that 90% of the world's biggest
luggage is made in a town in
China that is not bigger than
Cape Town. As such South Africa
will never be able to compete in
areas that its competitors are
advanced in.”
Writes: Edwin Sipho
Rihlamvu
What
sets South Africa distinctly
apart from the rest of the world
is arguably the spirit of its
people. However, as a developing
country South Africa cannot
afford to be lax and assume to be
sure of the future. It is a given
that the country is under the
spotlight, particularly because
of the 2010 Soccer World Cup and
that it needs to do something
different - it requires to
differentiate itself from its
competitors - through sustained
tourism.
Probing
the abilities South Africa's
tourism sector
In
2006 almost 8.4 million foreign
nationals visited South Africa.
This was easily the highest
number of arrivals South Africa
has ever experienced, and it
represented a 13.9% increase over
the previous year (2005). The
global average growth was 4.5%
over this period.
"Tourism
has been recognized at the
highest possible level for its
significant impact on the
economy. The industry's
contribution to the GDP has
increased from 4.6% in 1993 to
8.3% in 2006. We are now looking
to increase our GDP contribution
to 12% by 2014," says Marthinus
van Schalkwyk, Minister of
Environmental Affairs and
Tourism.
Tourism
brings in over R66 billion per
annum to the economy and
contributes over half a million
jobs and the industry just keeps
growing.
It
is known that for every visitor
that comes to a country and has a
good experience, three more
people are likely to come! For
every visitor that comes and has
a bad experience, 10 more people
are likely not to come. It is
also known that 70% of customer
brand perception is determined by
experiences with people.
Thus
South Africa's critical
imperative is to constantly
improve if not perfect its
frontline strategy while
packaging products - this will
assist in shaping perceptions
about the country, whether a
visitor is a tourist or an
investor coming to trade. Just to
paint the picture more vividly,
investors look past the clever
advertising and look for quality
and reliability.
This
is not different in terms of
product branding as tourists look
beyond the brand promise and look
for depth of experience.
Therefore, as a developing
country South Africa has so far
succeeded to create something
special which, differentiates it
from the competition.
Comments
Nthato Malope of the
International Marketing Council
of South Africa: "For tourism to
consistently grow before, during
and after the 2010 Soccer World
Cup, South Africa would have to
create the appropriate brand
behavior, brand discipline, brand
language, brand culture and brand
leadership. This is critical in
starting to create the depth of
experience when people engage
with the country".
The
importance of this is evident in
other countries' commitment to
improving their branding. For
example, India has a budget of
$300 million a year to promote
tourism and investment to its
shores.
It
is also known that some parts of
India are worse than Alexandra
Township in Johannesburg, but
this has not dented the image of
that country as its economy
continues to grow while it enjoys
a successful pull-factor for
international investment and
tourism.
"Our
competitors are far more advanced
in terms of defining who they
are, their size and scale of the
economy. What is going to set us
apart is the depth of experience
when people come to South Africa,
feeling very welcomed in the
country, with us having a sense
of ubuntu" declared Fikile
Dilika, Chief Director, Investing
in Culture, at the Department of
Arts and Culture.
However,
South Africa would have to do
more than branding if it hopes to
capitalize on international
markets. At the Italy &endash;
South Africa tourism seminar that
was held in July 2007 in
Johannesburg, Guiseppe
Boscoscuro, president of ASTOL
(Italian Tour Operators
Association) cautioned: "Until a
direct flight between Italy and
South Africa is reinstated,
nothing can be done to boost
Italian arrivals". This after the
seminar heard that 680 000
Italians have expressed interest
in traveling to South Africa,
compared with the 53 600 who
actually did in 2006.
Daniel
Winteler, Chairman and CEO of
Alpitour in Italy, said this is
not due to airlift constraints,
but also due to ineffective
marketing practices. "Effective
marketing needs to be achieved
collaboratively. Co-marketing is
vital as South Africa needs to
find the engine that connects
demand with supply", said
Winteler.
Black
Economic Empowerment
(BEE)
For
the South African economy to grow
there needs to be in place an
active black population. Beyond
the obvious grounds, this
economic imperative should drive
BEE from both a Government and a
private sector point of
view.
The
principles espoused by the
Tourism BEE Charter of measuring
BEE success beyond equity
ownership, and the spread of that
ownership, are crucial. To this
end the Tourism BEE scorecard
will be a powerful driver of real
BEE transformation in South
Africa.
Furthermore,
one by one, the different
industrial sectors of the
country's business landscape are
coming to the party, with
aggressive "charters" mapping out
the route that will be followed
over the next five to ten years
to put BEE sensibly into effect.
There is no doubt that in a
relatively short period of time
BEE will be just as much part of
the South African business
community as watching the
exchange rate.
According
to Nikki Kearns, director of
business banking at Standard
Bank, one of the sponsors of the
2005 Global Entrepreneurship
Monitor Report (GEM), black
economic empowerment legislation
could potentially have a positive
effect on stimulating
entrepreneurial activity in South
Africa &endash; and with the
country's level of early stage
business activity measured to be
at a relatively low level in
comparison with other developing
nations around the world, such an
effect could not have come at a
better time.
"GEM
2005 indicates that South
Africa's level of entrepreneurial
activity has decreased since the
2004 survey. However, as the
effects of broad based black
economic empowerment legislation
take place in this country, it is
my view that as the level of
people entering the formal
economy &endash; as well as
gaining access to banking systems
increases, more people will be in
a position to exercise their
business creativity than was
previously possible," says
Kearns.
However,
with the introduction of the BEE
Financial Sector Charter in 2003,
certain provisions and
responsibilities have been set
out for financial institutions to
contribute to the redress of past
economic imbalances. While many
of these responsibilities focus
on an increase in the
executive-level participation of
the previously disadvantaged,
there is a believe in the
combination of certain measures
that will contribute to improved
entrepreneurship, such as
requirements for skills
development, corporate social
investment and notably, the
introduction of an initiative to
extend bank services to more
South Africans.
Sindiswa
Nhlumayo, Head of the BEE Charter
Council at the Department of
Environmental Affairs and Tourism
(DEAT) reflects: "We see BEE as a
benefit to the economy and
business in South Africa. BEE
enables economic growth and by
bringing on an empowerment
partner will give businesses
access to new markets, which in
turn will lead to business
growth".
2010
FIFA Soccer World
Cup
The
2010 FIFA World Cup will have a
greater impact on the South
African economy than previously
thought, with consulting firm
Grant Thornton estimating the
event will contribute at least
R51.1 billion to the country's
gross domestic product (GDP).
This is against the original
estimate of R21.3 billion, which
was presented in a financial
impact report by Grant Thornton's
tourism, hospitality and leisure
division for South Africa's World
Cup bid committee in
2004.
Business
Report reported that R15.6
billion of this new estimate will
be brought in by foreign
tourists. The revised estimates
of the impact of the World Cup on
the economy include direct
expenditure of R30.4 billion, up
from R12.7 billion initially.
According to the paper, this
additional GDP contribution will
sustain the equivalent of 196 400
annual jobs, some of which
already exist.
According
to Grant Thornton, the economic
impact was based on 289 000
overseas visitors watching three
to four matches each and 48 000
African visitors watching three
matches each. About 115 000
domestic tourists will watch two
matches each. Calculations are
based on a stay of 15 days
because foreign tourists are not
expected to stay for the
month-long tournament.
Standard
Bank economist Goolam Ballim said
that "There will be a big direct
injection for the economy. But
the indirect impact may be more
meaningful for a sustainable
economic lift in subsequent years
... it will help change the
perceptions that a large number
of foreign investors hold of
Africa and South Africa".
On
his visit to South Africa in June
2007, FIFA president Sepp Blatter
told local media that "nothing,
nothing can be against a World
Cup in South Africa, nothing but
God."
At
the forty fifth meeting of the
United Nations World Tourism
Organization's Commission for
Africa in May 2007 in Addis
Ababa, Ethiopia South Africa was
unanimously elected as the Chair
of the UNWTO / FIFA 2010 Soccer
World Cup Steering
Committee.
"This
is indeed confirmation of
expectations to see South Africa
playing a leading role towards
the successful hosting of the
2010 Soccer World Cup" said
Patience Molokoza, Director,
International Tourism Relations
at DEAT.
"As
a consequence we have been
communicating with citizens of
the world that the "Win in Africa
with Africa" slogan that was
presented and adopted in Ethiopia
is itself an affirmation that the
2010 Soccer World Cup should be a
collaborative project which is to
be led by Africans" concluded
Molokoza.
While
leading a delegation to South
Africa in June 2007 to strengthen
relations that are aimed at
promoting the country in the
United States of America, Agrippa
Ezozo, president of the US-based
African Diaspora Foundation
pronounced that "special emphasis
would be placed on prospects for
tourism development and sports
related businesses in
anticipation of the 2010 FIFA
Soccer World Cup".
"We
are confident that the 2010
Soccer World Cup will do the same
to consolidate our self-respect
and dignity, gained when we
attained our freedom and
democracy in 1994 and, in a
unique way, help our own nation
and the continent of Africa, also
to bask in the 'miracle of South
Africa'," said Thabo Mbeki,
President of the Republic of
South Africa. "Every day we take
important steps to unite what was
a divided nation," he concluded.
Conclusion
It
is so far convincing that the
tourism sector in South Africa is
making interesting strides in
positioning the country
internationally. The pay-off line
that the country is "alive with
possibilities" holds true in this
age than it never was before. The
challenge would be how the
country plans to keep alive the
momentum. This because the
ultimate beneficiaries of these
interactions would be ordinary
South Africans who should emerge
from the poverty trap that
afflicts the continent, increase
employment and more equitably
spread the gains of economic
growth. At this stage, more than
any other in the history of its
democracy and freedom, South
Africans must hold steadfast and
deliver on the pledge to build a
better life for all.
International
Tourism Relations
DEPARTMENT
OF ENVIRONMENTAL AFFAIRS AND
TOURISM
SOUTH
AFRICA
Tel:
+27 12 310 3940
Fax:
+27 12 322 5754
Mobile:
+27 73 887 0222
E-mail:
erihlamvu@deat.gov.za
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