Global Economic Downturn

The impact of the global economic downturn has been widespread and deeply painful over the past year, with large-scale job losses afflicting a number of sectors of the South African economy. 

But while obviously not immune to this contraction, we have been relatively well-positioned to weather the storm, owing partly to our country’s prudent economic management over the past few years as well as the fact that our public infrastructure investment and tourist spend has been steadily escalating in the build-up to 2010.

The data collated by Statistics South Africa indicates that over the past fifteen years, international arrivals in SA have increased from under a million to almost ten million per annum – perhaps the most significant post-apartheid dividend reaped by the country’s economy. Of these, a good 25% are from overseas, but there is growing evidence that increasing numbers of visitors from our own continent are joining the ranks of the big spenders.

With the World Cup fast approaching, both government and hospitality-related industries are in the final stages of preparing for the “greatest show on earth”, with all the anticipated spin-offs that this will create. While it is cloud-cuckoo-land to think that the few short weeks of the tournament itself will rebuild Rome, as with the recent IPL, it is more the opportunity to reach many millions of TV viewers with positive images of the country than the short-term boost that tournament visitors will bring, that really counts.

For every happy visitor who has had a positive and safe experience, and who has been treated with courtesy and efficiency, for every player and administrator who is pleasantly surprised by the all-round quality of their experience, for every journalist who sees the best side of South Africa and talks it up in his coverage, there is a multiplier effect of positive perception that Mastercard simply cannot buy.

To appreciate the scale of this opportunity, we need only reflect on the fact that the IPL drew live viewership of up to 11 million per match (60 matches per tournament), whereas the average viewership per World Cup game is reportedly about 450 million. Clearly, this is a once-in-a-lifetime chance for the country’s brand to be positively imprinted on a global audience.

There are of course, contending views on the balance that Buffalo City needs to strike between targeting foreign vs domestic tourists. Our own statistics show clearly that the domestic market is our bread and butter, with the most recent information showing that the Eastern Cape is the second most popular province in SA among domestic tourists. The conventional wisdom is that this is due to a perception that we offer excellent value for money, and that we have therefore benefited more than others from holiday-makers “buying down” in recent times.

Whatever the case, it is clear that our efforts need to be focused primarily on the domestic market for the medium-term, while not neglecting opportunities that arise from time to time to increase our international profile. A good example of this is the advent of South Africa’s fourth International Convention Centre in East London (and the only one on a seafront), which will enable the city to tout itself as a potential destination for a completely new market. This prospect should whet the appetites of all in Buffalo City’s hospitality sector.

Since being given a new lease on life about a year ago and with its medium-term funding secure, Tourism Buffalo City has set about the process of rebuilding public confidence in its role as an effective agency in the promotion and marketing of the region as a tourist destination. This challenge not only involves serving established product-owners better than they were before, but also requires that we are committed in practical ways to the transformation of our operations and the industry as a whole, so that the benefits of tourism are ultimately more equitably distributed. 

No doubt, we still have a way to go, but it is fair to claim that a lot of progress has been made in this regard over the past year as we strove to re-establish our credibility in the industry.

From a budget of under R2million in 2007/8, TBC will now spend more than R5,5million in 2009/10 in its efforts to compete for an increased share of the domestic and international tourist market.

The lion’s share of this budget is directly aimed at getting our brand out there in whatever medium is available, affordable and effective, with company overheads and staff costs being kept at a moderate level.

Over the past year, Tourism Buffalo City has taken a number of practical steps to rebrand the company and to modernise our operations and our image. Our Board has adopted a new logo that aims to capture the fun-filled natural vibrancy and outdoor attractiveness of the area.

We relocated late in 2008 to new and more spacious offices in Western Avenue, Vincent (opposite Impala Meats), and recruited additional staff to meet the challenges of our expanding programmes. Our website (a work in progress) now has a new look and feel, and boasts an integrated online booking system for the benefit of those members who choose to use it. An extensive picture gallery depicts the wide variety of attractions of Buffalo City and aims to highlight its natural beauty.

Late last year, we established for the first time a satellite office in KWT to service our inland markets, staffed by our Heritage Promotion Officer, Lundi Mhlambiso, and a temporary assistant.

TBC has pursued a multi-faceted marketing strategy under the energetic leadership of recently-appointed Marketing Manager Colleen Durant: we have re-established co-operative networks with other roleplayers in tourism and the private sector, which are so critical to the effectiveness of any agency; we have promoted the city through support for the many sporting and other events that bring visitors to town; we have increased our media presence massively, with a new look and feel compared to previous years; we have attended a number of shows and expos where Buffalo City has been vigorously promoted; and we have gone out into the highways and the byways, seeking to strengthen existing markets and to grow new ones.   

The positive consequence of this is that our membership base continues to grow as confidence increases that the company is ready, willing and able to help the product-owners of Buffalo City.

Happily, membership is also steadily diversifying, with increasing numbers of township product-owners signing up. This is seen as essential to the mission of the company, which must give practical effect to the mandate to support the transformation of the tourism sector.