Framework for discussion

Cape Town & Western Cape an inspiring place to discover #discoverctwc

Marketing strategy

2015 – 2020A collaboration between Wesgro and DEDAT


Presentation format

• Introduction

• Global trends

• Strategy


Introduction


Wesgro, the agency

Destination Marketing Organisation Global best practice


Visitor

BusinessEconomic

value

Move towards a sustainable growth vision

Wesgro Strategy


Insights into the visitor needs

What business

offers

What the destination offers

Global trends

Approach to the strategy

Wesgro Strategy


Strategic framework


Vision

Goals and KPIs

1 2 3 4 5 6 7


Global trends*

* Source: Resonance Consultancy


Millennials

• 18 to 30 year olds

• More ethnically diverse group than other generations and so are more interested in international travel

• More interested in urban than resort destinations

• More likely to travel in pursuit of favourite interests or activities

• They’re more likely to travel with friends in organized groups

• Mobile devices are central to their communication


Unstoppable Elders

• Estimated to be 1.3 – 1.6 billion 65+ elders

worldwide (mainly from developed countries)

• 59% of 55+ affluent Americans are open to

travel internationally

• Customer service is crucial to this group and

show “higher levels of frustration that result in

zero tolerance for poor service”

– Not only one of the wealthiest group, but also the

most demanding

• Primarily travel for rest and relaxation (luxury)

• Travel off peak season (short or long stays)

• Favour quieter, less congested destinations


“Creative” tourism

• Creative tourism is travel “directed toward an

engaged and authentic experience”

• It is travel that provides a connection with those

who reside in the destination

• The creative tourist differs from a cultural tourist

in that he or she is active and interacts with the

locals


• The signalling of social status through the

consumption of experiences rather than through

consumer goods

• Unique experiences and are the new social

currency

• Prevalence of social media (Instagram) allows

for the widespread sharing of vacation photos

with friends, families and colleagues

• Take extended time off work to travel and

experience

The rise of conspicuous leisure


• Luxury travel continues to be a robust segment

of the industry

• “Millions of millionaires”

– Number of affluent USA households is projected to

increase from 10.5 million in 2012 to 20.5 million in

2020

• USA, Japan and European visitors will dominate

the luxury travel space until 2020

• China has a large percentage of millionaires

Luxury tourism


Multigenerational travel

• Another trend with reliable staying power is multigenerational travel

• The older the boomers get, the more family travel they’re doing

• A lot of that travel is planned around milestone events

• This market is about “trading memories, convenience and value”

• On the supply side, destinations have lagged when it comes to providing services and amenities that appeal both to 6- and 66-year-olds, but some cruise lines have taken a leadership position in catering to the multigenerational travel market


Active adventurers

• Travellers are seeking out ways to stay active

and healthy while “on the road”

• Growth in adventure travel has accelerated at

65% yearly since 2009

• The value of the global outbound adventure

travel sector was more than $345 billion in 2012

• Adventure travel includes two out of three

criteria: nature, culture and physical activity

• Adventure travellers are younger


Wired and wireless

• More than 40% of all online research for travel came from mobile devices

• Internet access is the MOST important hotel amenity for travellers

• Biggest digital and mobile trends:• Valuable and unique content will be bigger than ever

• Leveraging the diversity of platforms (Twitter, Facebook, Google+, Instagram, Tumblr)

• Image centric content rules

• Less is more (short simplistic marketing messages)

• Ad retargeting will grow in effectiveness

• SEO and social signals become more intertwinned


Strategy


Vision

Goals and KPIs

1 2 3 4 5 6 7


To be in the top 20 preferred global tourism and business events destinations by 2020

The vision is aligned to the overall national direction set out in the National Tourism Sector

Strategy (NTSS) and will be achieved through the co-delivery of the Western Cape Tourism

Growth Vision

1st France 83 million annual visitors

10th Malaysia 25 million annual visitors

15th Thailand 22.4 million annual visitors

South Africa 9.6 million annual visitors

UNWTO TOP TOURIST DESTINATIONS 2013



Goal in real terms

71,4

54,1

118,4

188

17 12,728,4

45

0

20

40

60

80

100

120

140

160

180

200

2009 2013 (Jan-Sept) 2015 2020

Foreign Diret Spend (FDS) in billions

FDS (South Africa) FDS (Western Cape)

7

9,616

12,068

15

1,317 1,0482,267

2,822

0

2

4

6

8

10

12

14

16

2009 2013* 2015 2020

Foreign tourist arrivals in millions

South Africa Western Cape

*2013 SA: Jan – Sept, WC: Jan - Jun

30,3

17,9

40

54

3,5

1,129

4,62

6,24

0 10 20 30 40 50 60

2009

2013*

2015

2020

Domestic trips in millions

Western Cape South Africa



Western Cape: 2,82 million foreign arrivals; FDS = R45bn & 6,24 million domestic trips

National Measurements:

• Tourist arrivals

• Length of stay

• Seasonality

• Geographic spread

• Promote

redistribution and

transformation

Strategic objective performance indicators:

• No. of international tourist arrivals to the Western Cape

• International foreign direct spend

• No. of domestic trips to the Western Cape

Programme performance indicators (implementation):

• SMART measurements for the pillars

• Wesgro, LTOs and RTOs to align where possible

(greater more focused drive)


To be in the Top 20 preferred global tourism and business events destinations by 2020


Brand 2 3 4 5 6 7




Brand

“Branding a destination, whether it is a small village or a whole country, is

probably the most complicated form of branding due to the fact that it is

neither owned nor controlled by a single entity. From destination marketing

and tourism to business development for destination brands, everyone living

within that area owns and influences the brand in one way or the other.”




Brand

• The destination brand is more than a logo we use on tourism collateral

• It is about developing a brand narrative that encompasses the identity of

the province from a business, policy, leadership and destination

perspective

• Narrative – one strong message vs the noise of many different messages

• EDP process with Wesgro, Dept. of Premier, V&A Waterfront, Accelerate

CPT

• Development of messaging matrix

• Greg Clarke (London Partners)

• Provincial wide logo design competition – by the people for the people




Brand

• For e.g. We open for business

• Development of unique and creative ways to bring to life the destination

narrative

• Leveraging of the narrative across all sectors (trade, investment, film)

• Aligning business with our narrative for a stronger single global voice

• Ensuring not only our values align with the narrative, but also businesses




Brand Domestic 3 4 5 6 7

Single

narrative

used by all,

global and

local




Domestic

Drive

volume

growth

(out of

season)

Importance, opportunities and weakness of the domestic market:

• Importance: seasonality

• Help increase numbers during the quieter times of the year

• Importance: geographic spread

• Drive domestic visitors into all regions (especially smaller towns)

• Opportunity

• Support SATs Sho’t Left domestic campaign and help create a

holiday travel culture

• To showcase unique, unknown places and experiences that South

Africans love to find out about

• Weakness

• Travel not seen as a social status domestically by South Africans




Domestic

Drive

volume

growth

(out of

season)

58.3%

17.8%

4.7%

3.9%

1.6%

1.6%

1.5%

1.1%

Domestic trips

taken to / in

the Western

Cape from all

provinces




Domestic

Drive

volume

growth

(out of

season)

Marketing opportunities:

• Website and mobile

• Process of rebuilding our website to meet needs of the domestic

(and international) market

• Social media

• Facebook, Twitter and Instagram showing great successes

• Media and PR

• Continue finding new and exciting ways to get the local media

excited and touring the Western Cape for e.g. Route62 campaign

with GHFM

• Shows:

• Consumer Shows (Gauteng and KwaZulu Natal)

• International Shows

• Local events




Domestic

Drive

volume

growth

(out of

season)

International Shows in South Africa

Indaba

• Objective: Conversion

• Focus: Product and experiences

We Are Africa

• Objective: Awareness

• Focus: Destination and luxury

WTM Africa

• Objective: Awareness and conversion

• Focus: Destination, product and experiences




Brand DomesticGlobal

markets 4 5 6 7

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)




Global

markets

SATs foreign arrival

trends

Western Cape’s

foreign arrival trends

both in and out of

season

Convention Bureau

(Wesgro)

Wesgro Film

Promotion Unit

Wesgro Investment

Promotion Unit

Wesgro Trade Unit

Collaborative approach to international market selection




166 267

136 802

78 679

47 285

44 387

35 566

25 025

24 692

22 163

20 797

United Kingdom

Germany

United States

China (includingH.Kong)

Netherlands

France

Australia

Brazil

Canada

Sweden

Top 10 in season international markets into Western Cape, Oct-Mar 2012/2013

109 880

78 938

61 401

47 723

30 258

25 755

22 390

17 376

16 462

15 966

United Kingdom

United States

Germany

China (Incl Hong Kong)

Netherlands

France

Australia

Italy

Brazil

India

Top 10 out of season international markets into Western Cape, Apr-Sep 2013




Global

markets

Market 1

Africa Land




Global

markets

Namibia

Namibia

Volume

trend (out

of season)

Proximity

to Western

Cape

Short Haul

Air access

Direct

Visa

Visa free

access

(ordinary

passport

holder)

Season-

ality

Out of

season

Insights

Self-drive

West

Coast

Shopping

Social

Family

holidays

Adventure

Nature




Global

markets

Namibia

Market 2

Africa Air




Global

markets

Namibia

Angola

Angola

Volume

trend (out

of season)

Proximity

to Western

Cape

Short Haul

Air access

Direct

Visa

Visa

required

Season-

ality

Luxury

traveller –

peak

season

Business

and

budget

traveller –

out of

season

Insights

Luxury

Social

status

Driven by

personal

need

(events)

Word of

mouth




Global

markets

Namibia

Angola

Market 3

South America




Global

markets

Namibia

Angola

Brazil

Brazil

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

First

timers

Adventure

not

relaxation

Multi-

generatio-

nal

Student

Wine

Shopping




Global

markets

Namibia

Angola

Brazil

Market 4

North America




Global

markets

Namibia

Angola

Brazil

USA

USA

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Wildlife

Nature

Wine

“once in a

lifetime”

Culture




Global

markets

Namibia

Angola

Brazil

USA

Market 5

Asia and Australia




Global

markets

Namibia

Angola

Brazil

USA

Australia

Australia

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Nature

Relaxation

Health and

wellness




Global

markets

Namibia

Angola

Brazil

USA

Australia

China

(Hong

Kong)

China (Hong Kong)

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa

required

Season-

ality

Out of

season

Insights

High end

shopping

New

experien-

ces




Global

markets

Namibia

Angola

Brazil

USA

Australia

China

(Hong

Kong)

India

India

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa

required

Season-

ality

Out of

season

Insights

Adventure

Outdoor

experien-

ces

Nature




Global

markets

Namibia

Angola

Brazil

USA

Australia

China

(Hong

Kong)

India

Market 6

Europe




Global

markets

Namibia

Angola

Brazil

USA

Australia

China

(Hong

Kong)

India

France

France

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Nature

Culture

Cuisine

Events

and

festivals




Global

markets

Namibia

Angola

Brazil

USA

Australia

China

(Hong

Kong)

India

France

Germany

Germany

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Value for

money

Nature

Beaches

Cuisine

Wine

Adventure




Global

markets

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

Netherlands

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Unique

experien-

ces

Cuisine

Wine

Adventure

Nature




Global

markets

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

United Kingdom

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Direct

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Value for

money

Unique

experien-

ces

Nature

Urban




Global

markets

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Italy

Volume

trend (out

of season)

Proximity

to Western

Cape

Long Haul

Air access

Minimum

1 stop

Visa

Visa free

access

Season-

ality

Out of

season

Insights

Wildlife

Culture

Urban

Shopping

Experien-

ces




Global

markets

Tactical Markets

“low hanging fruit”

Namibia

Watch-list Markets

“on the radar”

Core Markets

“bread and butter”

Angola, USA, Brazil, Australia, India, China

(Hong Kong), France, Germany,

Netherlands, UK

Investment Markets

“invest for future”

Italy

Western Cape’s 2015 – 2020 international market selection




Global

markets

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Marketing approach

• Understanding of where they are in the tourism lifecycle (introductory,

growth or maturity) and how best to market to them

• Use of traditional and non-traditional partners to reach the market

• Growth of inbound tour operators through strategic market mapping

• Understanding visitor needs from selected markets and feeding the right

messaging and experiences

• Educationals and media engagements

• Air access strategy

• Move towards more specialised road shows in mature markets for e.g.

Interbike Las Vegas and Ride London

• Strong alignment and leverage between Wesgro’s DMO and other units

Film (India), Trade (China), Investment and Convention Bureau





marketsLifestyle 5 6 7

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy




Lifestyle

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Development of strategies that drive lifestyle experiences (Western Cape’s strong

selling points aligned with market insights)

Cycling Strategy

(nature)

Luxury

Strategy

Design & Culture

Strategy

Wine & Cuisine

Strategy

Youth & Student

Strategy

Adventure (nature)

Agri-tourism (nature)Watch

list




Lifestyle

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Wine & Cuisine: Technology is not the big idea, but a solution to the problem

• Need to provide a platform that pulled wine and cuisine together to make it easier for

the visitor (virtual travel before you go)

• Need from wine farms to develop a mobile interface, but lack of funding and resource to

manage

• Trend around the curation of bespoke experiences that meets an individuals needs

(wine, cuisine, adventure, accommodation)

• Sales angle (BUY NOW)

• Car rentals, airlines, trade and consumer platforms




Lifestyle

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Cycling: 100 000 per year in 10 years

• First round of presentations to Ministry

• Second round will be stakeholder engagements with feedback

and input

• Opportunity around the second round of engagements is

to map what this looks like in 20 years and what do we

need to do to fulfil this dream and ensure we build the

final strategy around this (legacy and sustainability)

• Already showing great partnership with business (event

organisers) and Wesgro

• NB: Sustainability around this strategy and making sure the

citizens see the value as well





marketsLifestyle

Business

events6 7

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling




Business

events

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions

Business events

• Sector focus ensures alignment and leveraging of Wesgo’s Trade and

Investment business units

• Wesgro has aligned with both national and provincial sectors

• Business Process Outsourcing (BPO)

• Information Communication Technology (ICT)

• Renewable energy

• Life sciences (medical)

• Manufacturing (agri-processing)




Business

events

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions

Business events

• To help drive geographic spread and business events it is important that

Wesgro’s Convention Bureau meet with all regions to understand business

events facilities (size and no. of conference venues)





marketsLifestyle

Business

eventsEvents 7

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions




Events

Jewel

Incubator

Local

The Cape of Great Events Provincial Strategy

JEWELS

(Signature Events)

Annual events

associated with the

area’s identity, and

provide that area

with competitive

advantage

INCUBATOR

(Brewing)

Smaller events that

show potential to

develop into jewels

LOCAL EVENTS

Smaller events that

take place in towns

across the province

and help drive

domestic tourism

and seasonality




Events

Jewels

Incubator

Local

The Cape of Great Events Provincial Strategy

JEWELS

(Signature Events)

Annual events associated

with the area’s identity, and

provide that area with

competitive advantage

INCUBATOR

(Brewing)

Smaller events that show

potential to develop into

jewels

LOCAL EVENTS

Smaller events that take

place in towns across the

province and help drive

domestic tourism and

seasonality

Timing: All year round

• Focus on international

platforms Minimal local

marketing support

• “Green policy” as part of our

contracts

Timing: Out of season

• International platforms

• Social media support

• PR support

• Website support

• Limited financial support

• Sustainable long term support

Timing: Out of season

• Social media support

• PR support

• Website support

• Limited financial support

• Sustainable long term

support





marketsLifestyle

Business

eventsEvents Research

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions

Jewel

Incubator

Local




Business

events

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions

Research

• Vital to have credible, insightful and valuable research

• Wesgro has established a “Tourism Reference Panel” representing a cross

section of sectors in the industry (Western Cape)

• The main objective of the panel is to offer professional opinions and

comments regarding the state and performance of tourism across a wide

spectrum

• Encouraging a closer working partnership with Wesgro Research and all

stakeholders (public and business)





marketsLifestyle

Business

eventsEvents Research

Single

narrative

used by all,

global and

local

Drive

volume

growth (out

of season)

Namibia

Angola

Brazil

USA

Australia

China (Hong

Kong)

India

France

Germany

Netherlands

UK

Italy

Design &

culture

Wine &

cuisine

Youth &

student

Agri-tourism

Adventure

Cycling

Sector

focussed

Meetings

Incentives

Conferences

Exhibitions

Jewel

Incubator

Local

Tourism

Panel

Reference

Insightful,

valuable

research


Thank you

Documents

Framework for discussion