NEWSLETTER - 29 July 2011

We welcome a new member

The Tshwane Tourism Association wishes to welcome >Nobleman Guest House, as a new member.

Gautrain Marketing Collateral

Members who have not yet done so are reminded to collect their Gautrain marketing collateral from Vanessa at the TTA office.

Tshwane featured in Elle Magazine!

The TTA was approached by Elle Magazine to submit information on the Hippest Streets in the city. We managed to put together information for the magazine taking into consideration the profile of the magazine's readership and the result is that our city was featured on page 138 of the August edition of Elle magazine!

To vote for Tshwane/Pretoria as the city with the hippest Street go to www.elle.co.za and leave your comment. Your vote could get the city more of the exposure it deserves!

The annual 2011 Tshwane Tourism Awards!

This initiative is organized by the City of Tshwane in collaboration with the tourism industry stakeholders. The awards seek to acknowledge, reward and promote service excellence in the tourism industry and encourage local tourism businesses to keep raising their own standards.

Tourist businesses across Tshwane have until 29 July 2011 to enter one or more of the seven award categories, covering most aspects of local tourism. The award ceremony will take place in September 2011.

Entering the Tshwane Tourism Awards demonstrates pride in one's product, pride in our city, and shows that tourism operators care about visitors' experiences. The awards can be used by businesses as an improvement benchmark to encourage a philosophy of best practice in all areas of their businesses, to foster competitiveness and enhance service excellence to customers.

There is a lot to gain from entering. The process helps to re-focus tourism businesses on key aspects of the tourism experience they offer - the ideal preparation as one heads into the main season. The Tshwane Tourism Awards are the highlight of the Tshwane tourism calendar and are judged by independent experts from the tourism industry.

Entries are invited from the accommodation sector, serviced attractions, tourist guides, tour operators, conference venues, restaurants, food and beverage and arts and crafts.

The closing date for entry is 29 July 2011. Entry forms are attached on this e-mail or can be obtained from the Tshwane Tourism Offices, Church Square, Room 109 or visit the website www.tshwanetourism.co.za. Entry forms must be submitted to the Tshwane Tourism Offices situated in the Old Netherlands Bank Building on Church Square not later than 29 July 2011.

For more information on the awards, please contact: Charle Hodgkiss, City of Tshwane on 012 358 1340, charles@tshwane.gov.za or Rose Mogasoa on 012 358 1491, rosem@tshwane.gov.za.

Tourism industry predicts downward spiral will continue

The tourism sector continues to operate under heavy strain, according to the results of the latest Tourism Business Council of South Africa (TBCSA) FNB Tourism Business Index (TBI), which showed that the industry performed worse than expected for the second quarter of 2011.

The index, which provides a national indication of the current and likely future performance of various businesses operating within the South African travel and tourism sector, registered a performance index of 74,5 against a normal of 100. When compared to the expected industry performance index of 94,1 for the second quarter, the industry performed significantly worse than expected and somewhat worse than in the first quarter of the year.

Looking forward, results show that expected performance for the third quarter of 2011 is more modest at 81. Accommodation providers, in particular, have the lowest outlook the TBI has produced to date at 73,9% for the next quarter. This poor performance index is largely influenced by the hotel groups which have performed well below normal levels.

The latest TBI results are certainly a confirmation of what we are witnessing on the ground, says Mmatsatsi Marobe, CEO of the TBCSA. "However, given the extremely difficult operating environment, we are still encouraged to note that the majority of businesses in the sector are working hard to ensure that jobs are not lost."

Some of the key factors having a negative impact on the sector's performance include insufficient overseas arrivals, insufficient domestic leisure and business demand, the strong currency and the rising cost of inputs.

Other specific factors cited by the accommodation industry include municipal tariffs, increased fuel costs and the perception of crime in certain parts of the country.

Pretoria Security Alert - Pest Control Vehicle Being Used In Criminal Activity

"Pest Control Specialists" would like to alert all residents of Pretoria and surrounds of a criminal active in the area, driving a stolen Pest Control Specialists bakkie.

The man, who goes by the name Johan Tott, conned his way into a Hillside home by convincing an unsuspecting teenager that he was undertaking pest control at the neighbour's home and had to check whether they needed the same service. He then proceeded to steal the teenagers cellphone from the house.

Please be aware of the following details and alert the authorities if you see this man or the stolen Pest Control Specialists vehicle:

The vehicle is a bakkie with Pest Control Specialists signage. The original registration number was PBD 833 GP, but may since have been changed. The man, coloured, used the name Johan Tott and has a blister on his lip and was wearing jeans and a black jacket. He left a false cellphone number, as well as an outdated business address.

If you are having any kind of service technicians in your home, ensure that they have valid identification and call the company Head Office on 0860 08 08 08 to check details if you feel unsure.

Issued by: Andre Swanepoel, The Specialists Holdings (Pty) Ltd., Telephone: 0860 08 08 08, www.thespecialists.co.za

Rebound on the cards for SA's accommodation industry

The accommodation sector in South Africa should expect to see growth in the coming years, but occupancy rates are not expected to match those seen prior to 2009 and growth in average room rates will be low. This is according to Nikki Forster, PwC SA Hospitality & Gaming Leader.

Speaking at the launch of the PwC South African Accommodation Report, Forster says while the trend for 2011 is gloomy, the accommodation sector will see good returns into the medium term future, but these will be lower than experienced in the past.

The report analyses revenue from this segment of the hospitality industry, covering hotels, guest houses, B&Bs, guest farms, caravan sites, camping sites and bush lodges. It excludes revenue from food, beverage and other services to allow for better comparability. The report provides a synopsis of historical performance for the 2006-2010 period and forecasts key revenue indicators for 2011-2015.

Forster says the tourism industry boom, which began in early 2004, along with the anticipation of the 2010 Fifa World Cup, led to many hotel groups investing in developments in South Africa. "But by the time these new rooms came on stream, economic conditions had worsened and tourism slowed. Even if the economy had continued to expand at a healthy rate, the increase in the supply of hotel rooms would have exceeded any reasonable expectations of growth in demand."

In analysing the trends in the accommodation sector, Forster notes the distorting spike that came from the Fifa World Cup. "Last year, the number of foreign overnight visitors rose 15,1% to 8,07 million. If there had been no Fifa World Cup in 2010, we estimate that total accommodation spending would have risen by 4,2% instead of the 16,7% increase that actually occurred; the average occupancy rate would have fallen to 46,6% instead of increasing to 47,8% ; and rather than increasing 12,6% to R699 during 2010, the average room rate would have advanced just 3,7% to R644."

In the year immediately following the World Cup, the number of visitors is expected to decline by an estimated 8,7% to around 12 million in 2011. Thereafter, aided by an improving economic climate, the total number of annual visitors in SA should rise 14,8 million by 2015, a 2,3% compound annual increase from 2010, but a stronger 5,35% gain compounded annually from 2011. "This growth in travel and tourism will have a positive impact on the accommodation industry," says Forster.

Other findings in the report include:

  • As expansion is no longer warranted by the soft market, the number of available rooms across all accommodation providers is predicted to increase to an estimated 121 900 by 2015, from 113 400 in 2010, a compound annual increase of just 1,5%.
  • From the 2010 occupancy rate of 47, 8%, there should be a decrease to a medium-term trough in 2011. Thereafter, occupancy rates for hotels should begin to increase. Beginning 2013, demand for rooms will again grow faster than supply, and the overall occupancy rate will begin to increase, to reach a forecast average 48, 5% in 2015.
  • The average room across all grades of accommodation will cost R813 in 2015, up 3,1% on a compound annual basis from 2010 (R699) and 5,1% percent compounded annually from 2011 (667).
  • Total room revenue is expected to reach R17,6 billion in 2015, an 8,1% compound annual increase from 2011's expected R12,9 billion, and 4,9% compounded annually from 2010's R13,9 billion. Hotels will continue to generate the majority of accommodation revenue during the next five years, but their share of total room revenue will drop 70, 9% in 2015 from 74, 5% in 2010.

To view the full PwC South African Market report, visit www.pwc.com/za.

Speech: Minister of Tourism at SAACI 2011

Read the speech delivered by Mr Marthinus van Schalkwyk, Minister of Tourism at the South African Association for the Conference Industry (SAACI) 2011 conference held from 24-26 July 2011:

It is once again a great honour for me to address the SAACI conference and share with you some of government's perspectives and initiatives.

South Africa's status as a premier global leisure tourism destination is now firmly entrenched. The year 2010 was, in this regard, an exceptionally good one. On the back of the FIFA World Cup our global visibility reached unprecedented levels. We have demonstrated that we have the capabilities; the welcoming culture; and the authentic offerings that the world's ever more discerning travellers demand. Indeed, we made our mark.

The success story of our hosting of this mega-event was showcased to a global audience of potential business travellers. They have seen our impressive infrastructure, our organisational skills and our natural beauty. They have shared in our success.

What remains is for us to continually enhance and leverage this global positioning. As a country we have already secured more than 200 events for the next five years. These events will attract some 300 000 delegates to our major business tourism cities and will contribute significantly to foreign direct spend into our economy

In the aftermath of the economic recession, global buyers have become increasingly adept at driving down costs. Our task is to carefully nurture our value-for-money reputation and present diversified offerings to the business traveler.

I appreciate the fact that you are at the coalface of our industry and deal with the triumphs, but also the challenges we face every day. I do understand that while the long term trends for tourism are extremely positive, these trends are not necessarily translating into immediate profitability across the board. Upon analysis, however, this is quite understandable.

e are operating in an environment with increased capacity in terms of amongst others our accommodation offering, and we are still feeling the effects of the global economic crisis. I want you to know we understand these challenges. And I want to give you my assurance that these are transient issues that will not disrupt our long term positive growth prospects. I want to appeal to you to not lose faith and keep your eyes firmly focused on the many wins we have already chalked up.

The National Department of Tourism is absolutely committed to working with you in developing the potential of business tourism. This sub-sector is ideally placed to address some of the seasonality challenges that are difficult to meet through leisure tourism alone.

One of the most important building blocks we have put in place as part of our new growth plans has been the first ever National Tourism Sector Strategy (NTSS), which was approved by Cabinet on 2 March.

This ambitious strategy represents our commitment to intelligent planning and policy formulation. It was developed over a two year period in close collaboration with local and provincial government, anadvisory panel of top industry minds, representatives of a variety of professional bodies, academia, tourism marketing agencies, civil society and the broader public.

The NTSS is a document that the entire sector is committed to. We have worked hard to ensure that our ambitious targets are coordinated and credible. The strategy rests on three pillars, namely driving the tourism economy, enhancing visitor experiences and ensuring sustainability and good governance in the industry.

We aim to increase the number of foreign tourist arrivals to South Africa from 7 million in 2009 to 15 million by 2020, tourism's total contribution to the economy from R189 billion in 2009 to R499 billion by 2020, the number of domestic tourists from 14.6 million in 2009 to 18 million by 2020 and to create 225 000 new jobs by 2020.

The NTSS also consolidates our strategic outlook for the business tourism sub-sector and outlines some of our plans to bring more business meetings, events and conferences to South Africa.

Under the auspices of the National Department of Tourism, the new National Conventions Bureau (NCB) to be established within SA Tourism will make a significant impact in terms of coordinating and strengthening efforts to attract meetings and conventions to South Africa. We will also have to find a way, in consultation with industry, to strengthen the current accreditation of professional conference organisers.

As you are all aware, SAACI worked in partnership with the Tourism Grading Council of South Africa (TGCSA) to review the grading criteria. The new quality control framework will undoubtedly enhance South Africa's status as a preferred international destination for major business tourism events and conferences.

In conclusion, let me reiterate our appreciation for the active engagement of SAACI in our efforts to create a globally competitive and mutually beneficial platform to market our destination. It is this spirit of collaboration that drives the success of our industry.

It is up to all of us to pool our significant resources; our experience; our depth of knowledge; and our creativity to collectively market our destination to an exceptionally lucrative global business tourism market.

The dedication, ingenuity and propensity for hard, productive work by all of you confirm that our optimism is well grounded.

I wish you a successful and productive conference.

Upcoming industry conferences and exhibitions

The following conferences and exhibitions may be of interest:

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