Financing for Development Special Feature by David Coutts-Trotter, CEO Sun International
Tourism’s contribution to Southern African economies and new ventures abroad Sun International is proud and honoured to be associated again with the Commonwealth Heads of Government Meeting and wishes it every success. As Africa’s foremost hospitality, leisure and gaming group, we invest substantially in the economies of a number of Commonwealth countries and appreciate the value that can accrue from a responsible, ethical and sustainable approach to development. In exercising our duties of global citizenship, we share the values that are espoused by the Commonwealth and strive, in all our ventures as we extend our operations into regions beyond southern Africa, to conduct our affairs in a way that enhances social, economic and environmental sustainability. David CouttsTrotter, Chief Executive of Sun International, answers questions from Marcus Bain. 1. Economic conditions are tough, with depressed consumer spending worldwide, especially in the leisure and tourism industries. How is Sun International managing to remain robust?
MB
Southern
Africa
remains
a
sought-after
DCT destination and this status should continue in the light of the 2010 Soccer World Cup. The strength of the Sun International brand and what it represents both domestically and internationally has contributed to our ability to weather this environment, as it has in the past. We were recently voted South Africa’s top hospitality brand in a major independent survey. Depressed economic conditions have given us an opportunity to focus more strategically on all aspects of the business with specific focus on customer acquisition, retention and reactivation. This we have done through our acknowledgement that many customers seek a variety of non-gambling entertainment options at our casinos and resorts, through enhancing the overall guest experience and by driving innovation in accommodation and gaming promotions as well as creating new games. This ensures that all our guests have a truly memorable experience. Sun International’s Most Valued Guest (MVG) customer loyalty programme has over the years grown in customer base and the
The Commonwealth Heads of Government Meeting 2009
benefits to the guest are reviewed to ensure that there are value offerings for our customers. 2. In terms of employment, infrastructure and taxation, how significant is Sun International’s contribution to South Africa’s economy?
MB
Every day, over 50,000 customers from over
DCT 50 countries visit a Sun International property,
including substantial numbers of business and MICE (meetings, incentives, conferences and exhibitions) visitors. Over a period of three decades, the group has invested more than R15 billion [about US$2 billion] in new tourism infrastructure, including extensive conferencing facilities. It employs some 10,000 people, has indirectly created 50,000 new employment opportunities in the broader tourism industry, and it has been estimated that its business has a direct impact on the livelihood of more than 500,000 people in southern Africa. In comparison with others in the private sector, it spends more on international marketing, including offices, promotions, and above the line advertising, than any other SA-based company in global markets. In the 2008/09 financial year, Sun International paid a total of R622 million [US$ 82 million] in tax. 3. Since you took over as CEO of Sun International in July 2006, your company has made a massive R3.3 billion investment in the tourism, leisure and gambling industries in southern Africa. What form has this investment taken, and what are your plans for future development spending in the region?
MB
In the period since 2006, there has been
DCT considerable investment in the refurbishment
and expansion of our properties throughout southern Africa, in order to maintain the levels of luxury and standards of service that are promised by the Sun International brand. In the last three years, we have spent R260 million on refurbishment at our iconic Sun City resort, R450 million expansion at GrandWest in Cape Town, R85 million on a multi-level parkade [car park] at Carnival City, and R65 million at the Golden Valley Lodge in Worcester.