Executive Summary
The Problem
The major cities of South Africa (Johannesburg, Cape Town and Durban), like many destinations around the world, are facing declining visitor share and declines in visitor expenditure in the face of the global financial crisis and changed consumer behavior.
Whilst reports indicate a growing visitor industry, this is neither supported nor evidenced in the three major cities of the country who are facing declining demand, lower occupancies, less activity and declining margins. Given that these cities, by far, have the greatest concentrations of visitor assets and tourism infrastructure; these metrics are worrisome given the fact that these assets were developed on the presumption of growing returns.
The lack of growth, in addition to affecting development ROI and the prospects for future development, inhibits job creation opportunities, particularly in the micro enterprise environment. Given South Africa’s rapid urbanisation, is a serious issue for local authorities.
Problem Analysis
Whilst accepting that the causes are multi-factorial there is no doubt that well entrenched, often negative, perceptions about South Africa, and in particular its cities on the part of potential visitors and the lack of a compelling urban communications (marketing) strategy are at the foundation of this problem.
Local Authority Implications
Aside from the lack of job creation by the industry, as a consequence of lower demand; the visitor industry (not just tourism) has a realistic expectation that the demand problem be addressed; that, as with all major urban centres, a concerted effort be made to position and market these cities; that local authorities take a leadership role in marketing such that platforms may be leveraged by the private sector.
Addressing the Problem
Global best practice shows that the problem will most conclusively be addressed through the orchestration of a compelling integrated marketing and communications campaign, which takes these South African cities to the world.
Anchored on the platform of livability, South Africa’s urban proposition may be elevated to multiple audiences, in an array of countries to meet business, investment, academic, and leisure tourism objectives.
Proposal
We propose, in unison, to conduct a three-year global marketing programme.