Since the beginning of 2011, representing South Africa in various meetings aimed at profiling South Africa’s tourism, Minister Van Schalkwyk frequently mentioned that tourism is a key pillar of the South African economic development strategy with a large number of players operating in multiple market segments.
However, exposed to global exchange rate volatility, rising oil prices, new security costs, external economic shocks like the 2008/09 US economic downturn, non-tariff barriers like visa requirements, travel advisories and discriminatory travel taxes, the industry has taken a serious knock and is still in dire need of greater policy coherence and collaboration at a global level.
Although travel demand to SA in 2011 was expected to grow at an average of 4%, it is at a slower pace than in 2010, the results of which has been skewed by the World Cup Soccer event, and unevenly spread between mature and emerging markets. But the most disturbing prediction noted in the Cape Town Tourism blog by Cape Town Tourism CEO, Mariette du Toit-Helmbold, was that the R14 billion Cape Town tourism industry, which employs just short of 300 000 staff, will only recover in 2014 with an estimated total loss of R1,5 billion between 2008 and 2014, with zero job creation, hotels and restaurants running empty and some being forced to close down.
And yet, Three Cities Group, recognising tourism as a key driver of foreign investment, green growth, infrastructure expansion and job creation, is not only expanding with energy-efficiency retrofitting and renewable-energy roll-outs in establishments, but also continuing with developing new and existing properties.
Three Cities recently embarked on a R110 million-project to upgrade the Hotel on St Georges and The Inn on the Square, both located in prime locations. The Hotel on St Georges is conveniently located on St Georges Mall, a vibrant pedestrian thoroughfare in central Cape Town, linking the Foreshore to Government Avenue and Company Gardens. The Inn on the Square is located in the corporate business and government district, overlooking the historic Green Market Square.
Mike Lambert, CEO of Three Cities says, “Despite difficult economic times, we will continue to invest in the Cape as Three Cities is confident that Cape Town will weather the global recession.”
The African Tourism’s (SAT) Marketing Tourism Growth Strategy for SA (2011–2013) indicates that the potential number of visitors that could be attracted from 11 target markets (China, Japan, Kenya, Nigeria, the United States, the United Kingdom, Australia, India, France, Germany and the Netherlands) are about 76,5 million, with the size of the target segments within each of the 11 markets being 28 million consumers.
“The numbers attracted as indicated by SAT will be well received in SA, and in turn, we will drive more of these consumers to our first venture in northwest Africa, a re-development of The Mia Hotel City Resort in Kaduna, Nigeria just 1.5 hours from Abuja, the country’s capital,” says Lambert. The project is located within a 1.5ha oasis in a city with a population of over six million and will commence in November 2011.
Three cities is an active participant in the vibrant internet tourism economy, linked through online travel information sources, social media, mobile web, online booking and payment systems, tourist attractions and ancillary travel services, using each and every means to increase visitors into Africa.
Over the past 23 years since its inception in 1988, Three Cities has developed an enviable portfolio, offering an extensive collection of quality hotels, resorts and game lodges in South Africa, Botswana, Zambia and Zimbabwe ranging from Cape Town to Victoria Falls.
