A strong tourism brand for Cape Town is vital for economic sustainability
11 June 2011 will mark one year since the kick-off of the 2010 FIFA World Cup™. As World Cup hosts, we were a country whole-heartedly and publicly committed to tourism during 2010, but today, the global financial crisis and the subsequent consumer behavioural change has had a significant adverse effect on the tourism industry across the world. Demand has diminished, visitor spends have steadied and costs have increased. The tail end of the financial crisis has hit South Africa and our tourism industry hard, perhaps initially diverted in the run-up to and during the World Cup.
Tourism is a major contributor to GDP, nationally and internationally. In Cape Town alone the visitor economy is worth some R14bn per annum and at least 298 000 people are directly employed in tourism. The sobering reality is that at the current slow recovery rate of about 3-4%, Cape Town will only reach 2007 tourism revenue levels again by 2013 and visitor levels by 2014 – representing a cumulative loss of R1.5bn to the sector over seven years. Many other sectors are facing similar challenges, but in a region dependent upon tourism for such a large part of its economy and job market, we cannot remain passive and rely on the city to market itself.
We are faced with an urgent need to respond to this environment. To date, market conditions have allowed us to be reliant on leisure tourism as a key focus area. In this competitive time, we cannot afford to take the view that ‘a city sells itself’, nor can we continue to be perceived purely as a place of natural beauty. It is absolutely necessary for destinations to actively and continuously present themselves to potential visitors with a strong brand positioning and compelling message to create sustainable demand from a cross-section of markets.
At the cornerstone of Cape Town Tourism’s proposed tourism brand repositioning is the idea that cities are considered to be the new super-brands of the twenty first century. Successful cities of the future will be stand-out urban centres seen as the most liveable and enjoyable places on the planet; delivering benefits to residents and visitors alike. For many people, to escape does not always mean a wilderness experience, but rather to explore new and different cultures. Cities are now the epicentres of modern, living culture. They are the hotspots for urban travellers, who make up 70% of the world’s travellers.
Cape Town’s market share of world tourism is less than 0.18% with a 0.3%, share of the global urban tourism sector. Added to this, the destination is challenged by its long haul status and, in light of this, the city is a small competitor in an overcrowded field. Cape Town has some wonderful attributes; it is iconic, complex and multi-faceted. However, to visitors, these attributes are not self-evident and for us to unleash this urban wealth, the offer to potential visitors must be made continuously and compellingly.
With national tourism marketing still focusing predominantly on wildlife and natural beauty as the central theme, cities receive very little exposure in international campaigns. The World Cup provided the world with a different perspective of South Africa, showcasing our cities - their growing infrastructure, people and vibrant cultures. However, little has been done at a national level to capitalise on this marketing legacy post the World Cup. A joint marketing alliance between Cape Town, Johannesburg and Durban launched at Indaba this year will focus on urban tourism and lobby for a more representative marketing exposure of urban South Africa.
Cape Town Tourism believes that our city’s urban identity, innovative outlook, entrepreneurial spirit, academic excellence and pioneering medical and science sectors must be added to the brand palette in order for Cape Town to effectively compete in the domestic and global market. Beauty is no longer enough to create the kind of demand to sustain year-round economic growth and job opportunities.
We have to caution against abandoning traditional source markets and leisure focused tourism marketing, but calls for a new focus which is inclusive of business and domestic marketing themes.
We are committed to driving and implementing an inspirational brand for Cape Town; rooted in our story and the evidence of inspiration found within this exceptional and complex city. It is an inclusive process that involves citizens, tourism, business, academia, events, and the knowledge and innovation economies of Cape Town to play a key role. The brand proposition of inspiration allows for multiple messaging and alignment with consumer behaviour and sentiment.
Delivery a brand strategy requires a public /private sector / media partnership and to this end we have engaged and identified substantial partners interested and willing to invest in delivering a comprehensive brand and a new marketing strategy for Cape Town that goes beyond the tried and tested. These partnerships are ‘waiting in the wings’ for public sector endorsement of Cape Town Tourism’s new 2011/2012 marketing strategy and for the brand execution plan.
In developing the strategy, Cape Town Tourism has undertaken rigorous analysis, investigated world best practice and identified organisations that have the willingness and resources to support the strategic execution. By incorporating the Australian state of Victoria’s highly successful model, building demand for Cape Town will generate demand for surrounding areas and the province generally.
The consolidated Cape Town brand, underpinned by inspiration, is being developed by Cape Town Tourism in partnership with the City of Cape Town Accelerate Cape Town, and other sectors. By supplementing marketing communications with visitor-focused initiatives, Cape Town will elevate its relevance and generate incremental visitors and spend; thus negating the projected losses, stimulating our stagnant industry and creating jobs.
If we do not act decisively now our industry and the economic well-being of our city and people are at great risk. If nothing is done, or if we neglect our strong tourism markets, the city and tourism businesses will not generate effective returns from the significant capital investments that were made prior to the World Cup. If we don’t proactively engage in a new marketing and branding strategy, which goes beyond natural beauty and leisure tourism, we run the risk of being positioned nonetheless - by our competitors, our critics and the media - most likely to our disadvantage.