ISSUE 06 | JUNE 2016
ADVENTURE South Africa
IN THIS ISSUE:
Adventure • Business • Competition • Hospitality • Legal • Marketing • Safety & Security • Risk
EDITORIAL
.com
IN THIS ISSUE: CONTENTS
ISSUE 06 JUNE 2016
THE OFFICIAL TRADE JOURNAL ON AFRICAN TOURISM
PUBLISHER Tourism Tattler (Pty) Ltd. PO Box 891, Umhlanga Rocks, 4320 KwaZulu-Natal, South Africa. Website: www.tourismtattler.com EXECUTIVE EDITOR Des Langkilde Cell: +27 (0)82 374 7260 Fax: +27 (0)86 651 8080 E-mail: editor@tourismtattler.com Skype: tourismtattler
EDITORIAL 04 Accreditation 05 Cover Story ADVENTURE TOURISM 06 Adventure Tourism Rankings 10-15 Adventure Operators in South Africa
MAGAZINE ADVERTISING
ADVERTISING DIRECTOR Bev Langkilde Cell: +27 (0)71 224 9971 Fax: +27 (0)86 656 3860 E-mail: bev@tourismtattler.com Skype: bevtourismtattler
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BUSINESS 16 SATSA Market Intelligence Report 17 Foreign Labour in the Tourism Industry 18 TOMSA Set to Boost Domestic Tourism COMPETITION 20 Win a Kalahari Range Bath Crystals and Fragrance Candle HOSPITALITY 22 Property Profile: Bahia Mar, Mozambique LEGAL 24 The Law of Contracts - Part 19 25 Adventure Tourism from a Legal Perspective - Part 1 MARKETING 26 SA Hotels Lag Behind Global Peers in Mobile Tech
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RISK 28 Understanding Tourism Trade Insurance - Part 6 SAFETY & SECURITY 30 Terrorism Challenges in Africa TRADE NEWS Visit our website for daily travel trade news or subscribe to our Apple News Feed
▼ Nov 2015
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EDITORIAL CONTRIBUTORS Adv. Louis Nel Des Langkilde Josephine Wawira
Martin Janse van Vuuren Unathi Sonwabile
MAGAZINE SPONSORS ▼ Aug 2015
▼ Jul 2015
▼ Jun 2015
03 World Spa & Restaurant Awards 08 The Mozambique Collection 11 Itchyfeet 11 Langebaan Divers 12 Southern Right Charters 12 Magoebaskloof Adventures
13 UnTouched Adventures 13 Venture Forth 14 Canopy Tours 15 Nambithi Private Game Reserve 21 Spier Wine Farm 36 National Sea Rescue Institute
Disclaimer: The Tourism Tattler is published by Tourism Tattler (Pty) Ltd and is the official trade journal of the Southern Africa Tourism Services Association (SATSA). The Tourism Tattler digital e-zine, is distributed free of charge to bona fide tourism stakeholders. Letters to the Editor are assumed intended for publication in whole or part and may therefore be used for such purpose. The information provided and opinions expressed in this publication are provided in good faith and do not necessarily represent the opinions of Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers. Advice provided herein should not be soley relied upon as each set of circumstances may differ. Professional advice should be sought in each instance. Neither Tourism Tattler (Pty) Ltd, SATSA, its staff and its production suppliers can be held legally liable in any way for damages of any kind whatsoever arising directly or indirectly from any facts or information provided or omitted in these pages or from any statements made or withheld or from supplied photographs or graphic images reproduced by the publication.
02 Tourism Tattler Trade Journal JUNE 2016
GRAND HOTEL KRONENHOF // PONTRESINA // SwITZERLAND
G R A N D AWA R D S G A L A c e r e m o n y
#grandhotelkronenhof
#switzerland
# w lsawa r ds
# w l r awa r ds JUNE 2016 Tourism Tattler Trade Journal 03
S & R Awards Print Ad.indd 1
2016/05/17 9:30 AM
EDITORIAL
ACCREDITATION Official Travel Trade Journal and Media Partner to: The Africa Travel Association (ATA) Tel: +1 212 447 1357 • Email: info@africatravelassociation.org • Website: www.africatravelassociation.org ATA is a division of the Corporate Council on Africa (CCA), and a registered non-profit trade association in the USA, with headquarters in Washington, DC and chapters around the world. ATA is dedicated to promoting travel and tourism to Africa and strengthening intra-Africa partnerships. Established in 1975, ATA provides services to both the public and private sectors of the industry.
The African Travel & Tourism Association (Atta) Tel: +44 20 7937 4408 • Email: info@atta.travel • Website: www.atta.travel Members in 22 African countries and 37 worldwide use Atta to: Network and collaborate with peers in African tourism; Grow their online presence with a branded profile; Ask and answer specialist questions and give advice; and Attend key industry events.
National Accommodation Association of South Africa (NAA-SA) Tel: +2786 186 2272 • Fax: +2786 225 9858 • Website: www.naa-sa.co.za The NAA-SA is a network of mainly smaller accommodation providers around South Africa – from B&Bs in country towns offering comfortable personal service to luxurious boutique city lodges with those extra special touches – you’re sure to find a suitable place, and at the same time feel confident that your stay at an NAA-SA member’s establishment will meet your requirements.
Regional Tourism Organisation of Southern Africa (RETOSA) Tel: +2711 315 2420/1 • Fax: +2711 315 2422 • Website: www.retosa.co.za RETOSA is a Southern African Development Community (SADC) institution responsible for tourism growth and development. RETOSA’s aims are to increase tourist arrivals to the region through. RETOSA Member States are Angola, Botswana, DR Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.
Southern Africa Tourism Services Association (SATSA) Tel: +2786 127 2872 • Fax: +2711 886 755 • Website: www.satsa.com SATSA is a credibility accreditation body representing the private sector of the inbound tourism industry. SATSA members are Bonded thus providing a financial guarantee against advance deposits held in the event of the involuntary liquidation. SATSA represents: Transport providers, Tour Operators, DMC's, Accommodation Suppliers, Tour Brokers, Adventure Tourism Providers, Business Tourism Providers and Allied Tourism Services providers.
Southern African Vehicle Rental and Leasing Association (SAVRALA) Contact: manager@savrala.co.za • Website: w Founded in the 1970's, SAVRALA is the representative voice of Southern Africa’s vehicle rental, leasing and fleet management sector. Our members have a combined national footprint with more than 600 branches countrywide. SAVRALA are instrumental in steering industry standards and continuously strive to protect both their members’ interests, and those of the public, and are therefore widely respected within corporate and government sectors.
Seychelles Hospitality & Tourism Association (SHTA) Tel: +248 432 5560 • Fax: +248 422 5718 • Website: www.shta.sc The Seychelles Hospitality and Tourism Association was created in 2002 when the Seychelles Hotel Association merged with the Seychelles Hotel and Guesthouse Association. SHTA’s primary focus is to unite all Seychelles tourism industry stakeholders under one association in order to be better prepared to defend the interest of the industry and its sustainability as the pillar of the country’s economy.
International Coalition of Tourism Partners (ICTP)
International Institute for Peace through Tourism
Website: www.tourismpartners.org ICTP is a travel and tourism coalition of global destinations committed to Quality Services and Green Growth.
Website: www.iipt.org IIPT is dedicated to fostering tourism initiatives that contribute to international understanding and cooperation.
World Travel Market WTM Africa - Cape Town in April, WTM Latin America - São Paulo in April, and WTM - London in November. WTM is the place to do business.
World Youth Student and Educational (WYSE) Travel Confederation
The Safari Awards Website: www.safariawards.com Safari Award finalists are amongst the top 3% in Africa and the winners are unquestionably the best.
04 Tourism Tattler Trade Journal JUNE 2016
Website: www.wysetc.org WYSE is a global not-for-profit membership organisation.
World Luxury Hotel Awards Website: www.luxuryhotelawards.com World Luxury Hotel Awards is an international company that provides award recognition to the best hotels from all over the world.
COVER STORY: The June edition front cover features the awesome Storms River Mouth on South Africa’s Garden Route. Explore this untouched playground by kayak, lilo, scuba or snorkel with Untouched Adventures.
built an enviable reputation for excelling in. Read more about Untouched Adventures on page 13, and about Adventure Tourism in Africa and South Africa on pages 06-15.
Founded by Marthinus and Jenna van der Westhuizen in 2007, Untouched Adventures has grown from strength to strength. The company started out of a passion for the beauty of South Africa and the abundance of unique adventures that tourists can experience in this country. Over the years the team has grown with highly motivated guides trained and developed from the local communities in Tsitsikamma. Untouched Adventures offers a variety of activities including Scuba diving, Snorkelling and their very popular award winning Kayak and Lilo Adventure. This unique adventure combines all of the best natural attributes that South Africa has to offer. The Kayak and Lilo adventure includes the marine filled ocean, lush Tsitsikamma forest, mountains and Storms River Gorge − all in one 3-hour adventure that the whole family can do! Activities on the Kayak and Lilo include hiking, kayaking, lilo’ing and cliff jumping. The unique lilo’s were developed to access the most beautiful section of the Storms River gorge that was previously not
EDITORIAL
accessible by boat, foot or kayak. Adventurers can relax on the lilo’s, drift into the narrow gorge, and enjoy fantastic scenery viewed from a new angle.Watch the video below. Group adventures are another area that Untouched Adventures specialise in. School day trips and camps are arranged and coordinated with safety being foremost in the planning and execution of trips. Team building and year-end corporate adventure programmes are also a specialised area of expertise that Untouched Adventures have
In the Business & Finance section of this edition we report on the latest tourism arrival statistics and hotel stats for South Africa (page 16), look at foreign labour in the tourism industry (page 17), and report on the new TOMSA ‘Finders Keepers’ campaign that aims to boost domestic tourism in South Africa (page 18). In the Hospitality section, we profile Bahia Mar in Mozambique (page 22). We are auctioning a voucher for 3 nights for 2 at Bahia Mar valued at R18,000. Bidding starts at just R5,000. Click here to bid. The Legal section continues the series on Contracts with Part 19 (page 24), plus the start of a new series on Adventure Tourism from a Legal Perspective (page 25). The Marketing section reveals why South African hotel groups are lagging behind international trends in technology (page26), while in the Risk section, our series on Understanding Tourism Insurance continues with Part 6 on property and medical evacuation insurance (page 28). And finally, the Safety and Security section looks at Terrorism Challenges in Africa (page 30). Yours in Tourism, Des Langkilde.
https://www.youtube.com/watch?v=KxagaT2Zsjw&feature=youtu.be
JUNE 2016 Tourism Tattler Trade Journal 05
ADVENTURE TOURISM
ADVENTURE TOURISM RANKINGS The 2015 ATDI Report shows that many countries are recognising and prioritising adventure tourism, by benchmarking resources and policy against 10 pillars to drive growth.
“ Adventure tourism, valued at $263 billion is one of the fastest growing categories of tourism that attracts high value customers, supports local economies, and encourages sustainable practices.
“
The fifth edition of the Adventure Tourism Development Index (ATDI), released in March 2015 by the Adventure Travel Trade Association, assesses adventure tourism potential for countries around the world.
The ATDI 2015 contains 28 Developed countries and 163 Developing/Emerging countries. Countries are designated Developed (blue) or Developing (green) based on UN classifications.
The purpose of the ATDI is to facilitate adventure tourism policy and planning aimed at driving economic growth that is environmentally and culturally sustainable. It uses 10 pillars, drawing data from a range of sources, to gauge a country's readiness to compete in the adventure tourism sector.
Interactive Ranking Map
The 10 pillars are: 1. Sustainable Development Policy 2. Safety and Security 3. Health 4. Natural Resources 5. Cultural Resources 6. Adventure Activity Resources 7. Humanitarian 8. Entrepreneurship 9. Tourism Infrastructure, and 10. Image. The ATDI can be helpful to destinations considering an adventure tourism development strategy. Tracking performance in the ten pillar areas provides a guideline for responsible development. 06 Tourism Tattler Trade Journal JUNE 2016
While the report (downloadable at adventureindex.travel/docs/atdi_2015.pdf) focuses on countries in the high ranking cluster, an interactive ranking map at adventureindex.travel/2010-results-visual.htm shows each country's rank.
Scores do not however reflect a country's current popularity or market presence in adventure tourism. The interactive map groups countries into three clusters: High (Top Tier), Medium (Middle Tier) and Low (Bottom Tier). These groupings represent nations with similar scores and therefore a country’s competitive set. The idea being that countries ranked ‘Medium’ or ‘Low’ should aim to move into the ‘High’ category.
ADVENTURE TOURISM
How do African countries compare? South Africa (ranked 38) is in the top tier, along with its neighbours Botswana (16) and Namibia (54), and North African countries Egypt (18), Tunisia (43) and Morocco (32). According to the map, these countries are on a equivalent level with most countries in Asia, such as China (51) and Russia (24) and in South America, such as Brazil (44) and Peru (22). In the Middle tier, Zambia (ranked 65) is competitive with Mozambique (98), Madagascar (82), Tanzania (101), Kenya (88), Uganda (91), Ethiopia (107), Ghana (97),
Senegal (76), Mali (108), Algeria (72), Malawi (95). These countries are comparable with India (85), Serbia (71) and Columbia (61).
• The average spend on adventure trips *excluding airfare and gear) increased nearly 20% over the same period.
The rest of Africa’s countries are ranked in the Bottom Tier, with the exception of Western Sahara for which no data was available.
• The top three factors affecting destination choice are natural beauty, activities and climate.
Trends
• 69% of adventure travellers reported online research as their preparation method.
According to the 2013 Adventure Tourism Market Study: • The adventure travel market in North America, South America and Europe has experienced an average yearly size increase of 65% from 2009 to 2012.
• The percentage of adventure travellers using Facebook has more than doubled between 2010 and 2013. For information visit: www.adventureindex.travel
JUNE 2016 Tourism Tattler Trade Journal 07
The Mozambique Collection Small footprints, real people, exceptional experiences, amazing places ... The Mozambique Collection is a marketing brand that brings together a collection of stunning properties working together to promote the destination. The hand picked portfolio of members each has it’s own special attractions and experiences to contribute to the plethora of adventures that the country has to offer.
The underlying principle of authentic luxury, in the true sense, resonates with all members – to offer the best possible experiences in idyllic locations, while creating a positive legacy for the local communities and environment in which they operate.
www.mozambique-collection.org | info@mozambioque-collection.org 08 Tourism Tattler Trade Journal JUNE 2016
ADVENTURE TOURISM
SPECIAL FEATURE
ADVENTURE OPERATORS IN
AFRICA
SOUTH AFRICA
Tourism Tattler is proud to announce the launch of a dedicated GeoDirectory locator website of adventure activity operators throughout the continent of Africa. The new website will ultimately become a one-stop resource for adventure tourism bookings throughout Africa, and will be renamed ‘Adventure(dot)Africa’, under the new dotAfrica (.Africa) gTLD (Generic Top Level Domain) registry, which aims to promote African business, people and culture on the Internet.
Johan’s report estimated that adventure tourism operators generated in the region of R4.6 billion in 2014.
Understandably the Tattler’s adventure tourism GeoDirectory is a massive project that will take time to populate and geolocate by country, and in this issue we are kicking off with South Africa in collaboration with Dirty Boots.
The average age of adventure customers was revealed as being 35 years, with an almost equal split in gender (51% male vs 49% female). Johan’s report is certainly an interesting read (view it here).
the report that he published revealed some interesting, and hitherto little known facts. For example, the top 10 activities with the biggest number of participants was revealed as being:
South Africa’s The National Department of Tourism (NDT) apparently published an Adventure Tourism Report back in 2012, but been unable to find it. What is encouraging though, is the self-regulation initiative for the Adventure Tourism Sector, which is being spearheaded by the Southern Africa Tourism Services Association (SATSA) and mandated by the NDT. This initiative will certainly build the credibility and profile of a reliable Adventure Tourism industry in South Africa. NDT and SATSA hosted the first in a series of stakeholder workshops on self-regulation for the Adventure Tourism Sector on 19 March 2014 in Cape Town, followed by several workshops in other provinces during 2015. These workshops provided a platform for information sharing, exchange of best practices, and solicited input pertaining to the implementation of stakeholder consultative sessions. For more information on the self-regulation initiative, email Hannelie du Toit at SATSA at Hannelie@satsa.co.za or call +27 (0)83 600 3555. On the following pages are just a few of South Africa’s top adventure operators. Support them with client bookings.
▼
Dirty Boots is a South African based adventure holiday and activity guide book and website resource that has been published for over 10 years. Dirty Boots provides a complete list of credible adventure, activity, holiday, and team building companies, with over 100 outdoor activities in South Africa, Swaziland and Lesotho, and the printed guide booklet is updated on an annual basis. Published by Johan and Esna Radcliffe, the Dirty Boots adventure guide prompted Johan to produce a survey on the adventure industry in South Africa back in 2014, and
1. Boat Trips, 2. Zipline Tours (Canopy Tours, Aerial Cableway), Tours, 3. Horse Riding, 4. Whale Watching (Boat Based), 5. River Rafting, 6. Shark Cage Diving, 7. Ziplines, 8. Quad Biking, 9. Bungee Jumping, and 10. Segway Tours. Surprisingly, the top activities that were provided by operators turned out to be Horse Riding, followed by Scuba Diving and Quad Biking. By contrast, the highest revenue generating activities were Shark Cage Diving, Zipline Tours, and Boat Trips.
JUNE 2016 Tourism Tattler Trade Journal 09
ADVENTURE TOURISM
SOUTH AFRICA
SPECIAL FEATURE
Western Cape
Gravity Adventures is an owner-run, award-winning adventure company based in Cape Town, South Africa. Gravity offers a variety of micro adventures within one and a half hours of the city perfect for a quick adrenalin filled excursion.
gravity adventures
Coasteering allows adventurers to explore the coastline up close and personal snorkelling between the rocks and in gullies, doing a series of rock jumps to add some excitement. Swimming with penguins as an CONTACT occasional bonus. Andrew or Marie-Louise Kellett Sea kayaking on the clear, blue waters of the Langbaan Lagoon in the West Coast National Park can be combined with a stay in Gravity’s beach house, on the houseboat. White-water rafting on the Palmiet River, in the Kogleberg Nature Reserve, offers worldclass grade 3 rapids in an awesome setting. In summer, tubes are used for a more laid back adventure.
10 Tourism Tattler Trade Journal JUNE 2016
(t) +27 (0)21 683 3698 / (0)21 683 1159 (e) adventure@gravity.co.za (w) www.gravity.co.za (s) Facebook.com/Gravity-Adventures (s) Pinterest.com/ak47rivers/
SOUTH AFRICA We know you’ve always been itching to look cool on real rock, test your toughness on proper white water or to personally experience the Drakensberg. Here you will find all of it! You can expect paddling, climbing and hiking on some of South Africa’s best, with legal and professional guiding, skills development, improved knowledge and of course, fun!
SPECIAL FEATURE
ADVENTURE TOURISM
KwaZulu-Natal
route you want to climb and you are in charge of the belay. If we cannot offer it on these terms we will not bother in the first place! The Ukhahlamba Drakensberg, The name says it all! Big, rugged, tough, beautiful and spectacular! Outings can be of any length, at any time and anywhere in the Drakensberg. Yeah, including the grandest of them all - the Drakensberg Grand Traverse.
Outings vary from the short, very accessible and mellow to the long and isolated rough stuff. Want to learn how to guide on a white water river? Well, we offer training accredited by the African Paddling Association too. Nothing artificial about it – real rock, with real rubber on your feet, real chalk on your hands, you pick the
CONTACT Gustav Greffrath (t) +27 (0)72 032 1557 (e) gustav@itchyfeetsa.co.za (w) www.itchyfeetsa.co.za (s) www.facebook.com/ItchyfeetSa (s) www.tripadvisor.com
SOUTH AFRICA Langebaan Divers assists new and experienced divers to discover and explore the mysteries of the underwater world, in the cooler West Coast waters.
Situated in Club Mykonos, Langebaan Divers is ideally placed to offer a multi- faceted dive experience, with a variety of dive sites suitable for all weather conditions and preferences. The dive shop is fully equipped for both training and rental purposes.
Cape West Coast
for a day’s escape, or book a weekend for an unforgettable experience.
A variety of dive courses are offered, from Discover Scuba Diving to Dive Master and Dive Instructor, as well as career development and placement of individuals wanting to follow a specific water-orientated career. Charters are also catered for, from one day to dive holidays to all destinations.
Located just one and a half hours from Cape Town, Langebaan is ideally situated
CONTACT Piet Meiring (t) +27 (0)73 543 2289 (e) langebaandivers@gmail.com (w) www.langebaandivers.com (s) www.facebook.com/LangebaanDivers
JUNE 2016 Tourism Tattler Trade Journal 11
ADVENTURE TOURISM
SOUTH AFRICA
SPECIAL FEATURE
Southern Right Charters operates a purpose-built catamaran that provides superior stability and comfort with viewing decks at different levels to provide great angles for once-in-a-lifetime photographs.
Western Cape
Located in Hermanus, along the renown Whale Coast Route of the Overberg, whale season is from June to December. Sightings include southern right, humpback, and Byde’s whales, seals, dolphins, and a variety of marine birds, including the African penguin. CONTACT Robin Alcock
Southern Right Charters is a leading operator and as a licensed permit holder operates under the motto of ‘observing not disturbing’. The friendly and knowledgeable crew add that personal touch to ensure that passengers have an experience of a lifetime. All tours are weather dependent and prebookings are essential.
(t) +27 (0)82 353 0550 (e) info@southernrightcharters.co.za (w) www.southernrightcharters.co.za (s) Facebook.com/HermanusWhaleWatching (s) Plus.google.com/+SouthernrightchartersCoZa/posts (s) Twitter.com/SAwhalewatching (s) Youtube.com/user/southernrightcharter?gl=ZA
SOUTH AFRICA Magoebaskloof is a magical place where mountain meets river and the spirit of adventure is born. The Magoebaskloof Adventure centre hosts a large variety of activities on the Great Letaba River.
Limpopo
The Gecko-tubing Trip starts deep in the gorge, with a journey along tranquil crystal clear waters, with breathtaking views, and ends with pulse racing action down roaring white-water rapids. The Abseiling Trip descends 30 metres down a smooth rock face into the majestic George’s Valley gorge, ending in the river. The trip allows for swimming and relaxing at the bottom, underneath a waterfall. The guided Magoebaskloof Canopy Tour is an exciting journey through the indigenous forests and over spectacular waterfalls, swinging from platform to platform whilst enjoying the tranquillity of the natural surroundings. CONTACT Jane Allison
(t) +27 (0)83 442 7429 (e) jane@thabametsi.com (w) www.magoebaskloofadventures.co.za (s) Facebook.com/Magoebsadven (s) Youtube.com/watch?v=TQA2hc0NJMU 12 Tourism Tattler Trade Journal JUNE 2016
SOUTH AFRICA Untouched Adventures 2- to 3- hour Storms River kayak and lilo adventure is the most popular adventure activity in the Tsitsikamma National Park. Explore deeper into the gorge and experience the long, deep, quite pools and the majestic, pristine forests along the cliffs.
SPECIAL FEATURE
ADVENTURE TOURISM
Eastern Cape
Untouched Adventures also offer snorkelling and scuba diving, where divers can marvel at the spectacular underwater world of the protected marine environment.
Adventurers paddle from the harbour, across the ocean, under the suspension bridge and up the Storms River. If sea conditions are rough, a short guided hike through the Tsitsikamma Forest could be necessary and the trip then starts from inside the river mouth. CONTACT Estelle
At the low-water point, adventurers disembark and jump onto the unique lilos and float through a short section of rock pools, deeper up the river.
(t) +27 (0)73 1300 689; (0)76 9592 817 (e) bookings@untouchedadventures.com (w) www.untouchedadventures.com (s) Facebook.com/untouchedadventures (s) Twitter.com/UntouchedAdvent (s) Youtu.be/KxagaT2Zsjw
SOUTH AFRICA
Venture Forth operates adventure activities on the world-famous Table Mountain, which rises majestically above the city of Cape Town. Everyone has seen the postcard picture, but not everyone has come upclose and personal with this magnificent mountain range. Get away from the tourist trail, visit the seldom seen parts, explore hidden ravines and follow the lesser used routes. Venture Forth offers guided day and overnight hiking, scrambling, sport climbing, and traditional rock climbing on
Western Cape
the peninsula mountains, from Cape Point to Table Mountain and Lion’s Head. Guided trips are also available in the Boland mountains around Stellenbosch, Paarl and Franschhoek. Founded in 1994, Venture Forth International is an accredited: • Mountain & adventure guide service • Adventure tour operator • Mountaineering skills training school • Mountain & adventure guide training centre • Outdoor education provider to schools • Youth adventure travel specialist. CONTACT Walther Meyer (t) +27 (0)86 110 6548 / (0)82 770 7876 (e) info@ventureforth.co.za (w) www.ventureforth.co.za (s) Facebook/VentureForthSA (s) Twitter/VentureForthSA (s) Google+/VentureForthSA JUNE 2016 Tourism Tattler Trade Journal 13
ADVENTURE TOURISM
SPECIAL FEATURE
SOUTH AFRICA
National
Canopy Tours® take people up into a previously inaccessible realm of nature whereby platforms built high up within the branches of an indigenous tree or against the cliffs of ancient mountains are joined by spectacular long zip-line cable slides high above the forest floor.
An fun, exhilarating adventure experience for all ages! Canopy Tours® are great for the whole family, nature lovers, thrill seekers and corporate groups. There are now 7 official Canopy Tours® around the country – Tsitsikamma, Karkloof, Magaliesberg, Magoebaskloof, Drakensberg, Swaziland and Elgin (Cape). CONTACT Mark Brown (t) +27 (0)21 3000 501 (e) info@canopytour.co.za (w) www.canopytour.co.za (s) Facebook.com/CanopyToursSouthAfrica (s) Youtube.com/ user/CanopyToursTV
FIND MORE ADVENTURE ACTIVITIES IN AFRICA
GET LISTED Email editor@tourismtattler.com to find out how 14 Tourism Tattler Trade Journal JUNE 2016
SOUTH AFRICA Nambiti Private Game Reserve is situated in a malaria-free zone, east of Ladysmith in KwaZulu-Natal – so there’s no need for medication. It is also the only game reserve in the area that can boast of having the Big 5 (lion, elephant, buffalo, leopard, and White/Black rhinoceros), along with 40 other game species. Nambiti’s 22,000 acres offers incredible biodiversity, with grasslands, riverine bush, savannah and thornveld. A perfect environment for soft adventure experiences. Adventure activities within the reserve include guided walks and game drives, birding, fishing in the river and dams, Battlefield tours, and photography courses to get up-close and personal with Africa’s Big 5. Less than an hour away from Nambiti, the majestic Drakensberg Mountain Range - a World Heritage Site - offers numerous adventure activities, including hiking, quad biking, white water rafting, 4×4 trails, mountain biking, horse riding, canopy tours, rock climbing, kayaking and fly fishing.
SPECIAL FEATURE
ADVENTURE TOURISM
KwaZulu-Natal
CONTACT Robyn (t) +27 (0)36 631 9026 (e) reception@nambiti.com (w) www.nambiti.com (s) Facebook.com/Nambiti-Game-Reserve (s) Twitter.com/NambitiReserve (s) Pinterest.com/nambitireserve
To wind-down after your adventure excursions, there are nine luxurious game lodges on Nambiti, including six 5-star game lodges and one magnificent elevated tented camp, with facilities ranging from self catering to the pampered, including spa treatements. Nambiti also offers accommodation that is fenced in for the maximum safety of younger guests.
JUNE 2016 Tourism Tattler Trade Journal 15
BUSINESS & FINANCE BUSINESS
Market Intelligence Report
The information below was extracted from data available as at 24 May 2016. By Martin Jansen van Vuuren of Grant Thornton.
ARRIVALS
The latest available data from Statistics South Africa is for January to March 2016*: Current period
Change over same period last year
UK
147 639
14.3%
Germany
101 482
19.0%
USA
75 067
17.1%
India
19 960
16.9%
China (incl Hong Kong) Overseas Arrivals
31 556
65.2%
685 250
13.3%
African Arrivals
2 033 232
19.6%
Total Foreign Arrivals
2 721 005
18.7%
Current period
Average Room Occupancy (ARO)
Average Room Rate (ARR)
Revenue Per Available Room (RevPAR)
All Hotels in SA
65.3%
R 1 224
R 799
All 5-star hotels in SA
69.0%
R 2 301
R 1 588
All 4-star hotels in SA
65.7%
R 1 125
R 739
All 3-star hotels in SA
63.4%
R 920
R 584
Change over same period last year All Hotels in SA
4.3%
9.8%
14.5%
All 5-star hotels in SA
5.9%
12.5%
19.1%
All 4-star hotels in SA
5.5%
7.5%
13.4%
All 3-star hotels in SA
4.0%
6.0%
10.3%
Passengers arriving on Regional Flights
Passengers arriving on Domestic Flights
ACSA DATA
The latest available data from ACSA is for April 2016:
Change over same period last year Passengers arriving on International Flights OR Tambo International
5.1%
3.4%
9.7%
Cape Town International
5.0%
28.9%
9.6%
King Shaka International
10.7%
N/A
10.8%
CAR RENTAL DATA The latest available data from SAVRALA is for January to June 2015: Current period Industry rental days Industry utilisation Industry Average daily revenue
Change over same period last year
8 139 127
-1%
70.2%
-0.7%
2 498 944 728
1%
WHAT THIS MEANS FOR MY BUSINESS Data from Statistics South Africa indicates strong growth in foreign arrivals, assisted by the devaluation of the Rand. The strong growth is reflected in the arrivals at international airports and is starting to be reflected in the hotel occupancies and achieved rates. Tourism enterprises should utilise this recovery period to recover previous losses but should be cautious not to rely on a depreciating currency in order to be competitive. *Note that African Arrivals plus Overseas Arrivals do not add to Total Foreign Arrivals due to the exclusion of unspecified arrivals, which could not be allocated to either African or Overseas.
16 Tourism Tattler Trade Journal JUNE 2016
For more information contact Martin at Grant Thornton on +27 (0)21 417 8838 or visit: http://www.gt.co.za
HOTEL STATS
The latest available data from STR Global is for January to April 2016:
BUSINESS & FINANCE
FOREIGN LABOUR
in the Tourism Industry 2015 was possibly the year when the tourism industry got the most public attention after the implementation of the visa regulations. It became a major talking point and because tourism in South Africa has a class character, the class nature of the debate was raised by the main stream media.
“
Tourism is developed to improve the standard of living of locals, and especially their quality of life. Therefore in 2016 I call on SATSAs CEO, David Frost to lead #ForeignLabourMustFall as he so succesfully led #VisaMustFall.
“
The minute something affects the middle class and the owners of the means of production, it is forced into a national issue, whereas issues such as poverty, inequality and unemployment do not get the same gaze in the media. So the #VisaMustFall, stands side by side with #FeesMustFall and #RhodesMustFall as major issues of the year 2015. I agree that the implementation of the visa regulation had a detrimental impact on the tourism industry of South Africa, leading to declining arrivals and this threatened the livelihood of many. The timing of the visa regulations led to a perfect storm as the South Africa Rand was one of the most volatile currencies that depreciated against major currencies. This was an opportunity lost to market destination South Africa as being on ‘’sale’’ to attract price sensitive markets and deepen penetration in other market segments. The share of mining’s contribution to Gross Domestic Product (GDP) decreased further, whilst the commodity prices decreased. The growth rate of the economy in South Africa decreased to less than 2% and the tourism industry had a greater responsibility to play but because of the visa regulations, its developmental ability was dampened by the visa regulations. The visa regulations were relaxed after government was successfully lobbied and the government has taken steps to ensure that tourism red tape is reduced. The Tourism BEE Act indicated that it seeks to integrate the previously disadvantaged in
tourism as consumers and product owners and secondly, to ensure that tourism in South Africa remains globally competitive. The National Tourism Sector Strategy is very clear that South Africa must be one of the top 20 tourism destinations in the world. Tourism destinations attracts tourism because of the positive economic impacts such as labour intensive jobs, tourism acting as a catalyst for other industries, the attraction of foreign exchange, and foreign direct investment that comes with tourism. Tourism which today attracts more foreign exchange than mining has its own gold rush. Just like the growth of mining led to an inward migration of people looking to exploit the opportunities that mining created, so too do people migrate to areas that have a lot of tourism opportunities. According to the SARB Financial Stability Review (2015), unemployment remains one of the biggest concerns in South Africa, where more than 25 per cent remain unemployed. The biggest contributor to poverty in South Africa is rampant unemployment, feeding into the inequality levels, some of the greatest in the world. I then find it odd that the tourism industry (inclusive of hospitality) appears to have taken a position to employ foreign labour. The employ of foreign labour is a travesty to the development potential of tourism, leading to economic leakage. The employ of foreign labour in menial jobs adds insult to injury as locals are able to do the same jobs. Related story: Tourism & Migration - Ed. About the Author: Unathi Sonwabile Henama teaches tourism at the Department of Tourism Management at the Tshwane University of Technology. The views expressed in this article are private. Unathi can be contacted via email at: HenamaUS@tut.ac.za or by calling: +27 (0)12 382 5507. JUNE 2016 Tourism Tattler Trade Journal 17
BUSINESS & FINANCE
TOMSA SET TO BOOST DOMESTIC TOURISM By Des Langkilde
HOW TO PARTICIPATE There are different ways in which the South African travel trade can participate in this exciting campaign: • Host the Sunday Times team of journalists who will be generating newspaper content for the competition (provided this is in line with the competition route); • Contribute prizes for the competition’s weekly prize draws; • Pledge your support, and have your establishment profiled on the TOMSA website; • Register as a TOMSA levy contributor and stand a chance of winning an advert in the Times newspaper, valued at over R200 000. To participate, email Boitumelo Moleleki at membership@tbcsa.travel or contact 012-664 0120
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BUSINESS & FINANCE
Launching on Sunday 26 June 2016, Finders Keepers is a new Tourism Marketing South Africa (TOMSA) promotional campaign that aims to promote domestic tourism in the country by showcasing the products of existing tourism levy contributors, and to raise industry-wide awareness about the important role of TOMSA. This was announced during the campaign pre-launch activation at Tourism Indaba in Durban, which was hosted at the SA Tourism stand on Sunday, 8 May. The campaign will be implemented in partnership with South African Tourism (SA Tourism) and Times Media Group’s Sunday Times newspaper.
bill seemed the best way to achieve this objective. Initially the funds raised were used for JMA’s, whereby SA Tourism matched the TOMSA budget with a callto-action,” said Gail. “This years’ Finders Keepers campaign is an extension of that original plan, and as Gooderson Leisure we are 100% behind it.” Speaking during the campaign pre-launch activation, TBCSA Chief Executive Officer, Mmatšatši Ramawela said the campaign is part of a broader objective to raise a level of awareness about TOMSA, whilst at the same time generate added value for businesses that support the initiative.
“Our objective in hosting the pre-launch activation of the campaign at Indaba was The TOMSA initiative is a Public-Privateto generate excitement amongst tourism Partnership established in 1998 between operators and to make them aware of the the Tourism Business Council of South Africa opportunities that are available for them to (TBCSA) and the National Department of participate in the promotional campaign. Tourism. The initiative enables businesses So far, the industry’s reception of the in the sector to play an active role in campaign and level of response in terms of the funding of the country’s destination pledges to support the campaign have been marketing programs undertaken by SA overwhelming,” Ramawela said. Tourism. This is done through the collection Operators who wish to get involved can and contribution of a 1% tourism levy sponsor special prizes for the weekly prize charged on travel and tourism products and draws, pledge special travel packages that services rendered. The funds collected are can be promoted as part of the campaign administered by the TBCSA. or host the team of journalists who will be Currently, just 578 tourism businesses are registered with TOMSA as levy contributors. Of these, the accommodation sector is the largest contributor by number with medium to large hotel groups such as Southern Sun, Peermont, Forever Resorts, and Gooderson Leisure, having registered individual hotels. The actual number of individual collectors is: 711 in the accommodation sector, 7 car rental companies, 13 tour operators, 11 travel agents, and 5 tourism attractions (view the full list of contributors here). Despite these low numbers, they have collectively contributed in excess of R120 million towards SA Tourism’s overall destination marketing budget (approximately 10%). Imagine then what could be raised if the entire South African travel trade were to come on board the TOMSA initiative. I spoke to one of the TOMSA levy initiators, Gail Westphal of Gooderson Leisure, who at the time was the CEO of SATSA, and is currently a TOMSA board member. “Back then (1998) South African Tourism received very little budget appropriation from government to market the destination abroad, and the private sector of tourism had very little say on how that budget was spent. We needed to contribute financially, and a 1% surcharge levied on every guests
covering the competition for the Sunday Times travel section. “The marketing and media profiling opportunities this campaign will generate are substantial and we are elated to see the number of operators have already come forward to pledge their support”. The Finders Keepers competition will be in the form of a treasure-hunt and will run for 12 weeks from the launch date in June, ending in September to coincide with the sector’s Tourism Month celebrations. It is envisioned that the competition will encourage domestic travel by unravelling tourism gems across the country. “The concept for the competition is fairly simple” explains Times Media Group’s Marketing Manager, Gail Nel. “Using clues found in the Sunday Times, competition entrants will hunt for treasure focusing on TOMSA levy contributor products across the country. Entrants will have to identify where the treasure is being hidden and answer a number of travel and tourism related questions correctly in order to proceed to the next level of the competition. Those who make it to the end will take part in the final draw for a prize worth R1 million”.
which is designed to showcase various domestic travel and tourism offerings and attractions, particularly the ‘hidden gems’. The paper’s travel editor, Paul Ash, reiterated: “The main aim for me is to share travel and tourism experiences, both from the mouth of the product owner and the travel consumer. Also, the value for the TOMSA levy contributor from their involvement in the campaign is incalculable. As we stop over at each establishment or tourism product along the Finders Keepers route, we will publish and showcase that product and the experience that goes with it.” Chief Marketing Officer at South African Tourism, Margie Whitehouse, says SA Tourism is fully behind this exciting promotional campaign. “As recipients of the TOMSA tourism levy, SA Tourism fully supports the Finders Keepers competition. The competition will further encourage South Africans to travel their own country and also make South Africans proud to call this country their home. We believe it is important to build a culture of travel as there are plenty of hidden gems across all nine beautiful provinces to be uncovered. The campaign also provides the participating levy contributor with massive exposure when their tourism product is placed in the Sunday Times publication. In closing, Ramawela said she looked forward to the campaign creating a ‘buzz’ about the significance of travel and tourism beyond Tourism Indaba; as well as the important role the private sector and consumers can play in stimulating growth – especially in terms of domestic travel. “We also hope that through this campaign, many travel and tourism product owners and service providers will see the value of TOMSA and sign up for levy contribution – thus helping us grow the funding for SA Tourism’s work of promoting our country”. “We all know that the foundation of any successful tourism destination is its domestic market. Through this campaign we hope to demonstrate the value of TOMSA, to persuade all industry roleplayers to rally behind this important industry initiative and to ultimately inspire South Africans to travel and explore their own backyard”. For more information about TOMSA and the Finders Keepers competition visit: www.tomsa.co.za
Nel says the treasure-hunt will follow a specific route, across the different Provinces, JUNE 2016 Tourism Tattler Trade Journal 19
COMPETITION
The winning 'Like' or 'Share' during the month of June 2016 will receive 1x Kalahari Range Bath Crystals and 1x Fragrance Candle (Khoi San) with the compliments of Livingstones Supply Co – Suppliers of the Finest Products to the Hospitality Industry.
'Like' / 'Share' / 'Connect' with these Social Media icons to win!
Wi n
Livingston Supply Company
Tourism Tattler
Competition Rules: Only one winner will be selected each month on a random selection draw basis. The prize winner will be notified via social media. The prize will be delivered by the sponsor to the winners postal address within South Africa. Should the winner reside outside of South Africa, delivery charges may be applicable. The prize may not be exchanged for cash.
•
Win ne r
Congratulations to our May 2016 Social Media winner
@amakhosilodge
Amakhosi, a 5-star and big 5 private game lodge, is situated in the heart of Zululand on the banks of the Mkuze River, on the private Amakhosi reserve in South Africa. Amakhosi will receive 1x Bormioli Moncayo Crystal Glass Ice Bucket (32oz) with Tongs plus a set of 6 Bormioli Riserva Crystal champagne glasses (20.5cl) with the compliments of Livingstones Supply Co – Suppliers of the Finest Products to the Hospitality Industry. For more information visit www.livingstonessupplyco.com
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JUNE 2016 Tourism Tattler Trade Journal 21
HOSPITALITY MOZAMBIQUE
22 Tourism Tattler Trade Journal JUNE 2016
PROPERTY PROFILE
The Bahia Mar Boutique Hotel and Conference Centre is located on an amazing beachfront property in Vilanculos, in southern Mozambique. With panoramic vistas of the Bazaruto Archipelago National Park, the hotel boasts an infinity pool and bar, and elegant à la carte restaurant and fully equipped wellness centre to pamper and cater every indulgence.
HOSPITALITY
lodgings depending on the group size and requirements. A choice of either a spacious, fully serviced en-suite room, an optimally equipped self-catering pied à terre, or combinations of both, provides guests with a perfect base from which to explore the beauty of thesurroundings.
Activities at Bahia Mar include diving and snorkelling; fishing; traditional dhow sailing trips to the islands; kite-surfing; paddle The hotel consists of four separate buildings, boarding; horse riding; bird watching and each with two sea view bedrooms on the upper level and one beach suits on the ground many many more! level. Bahia Mar provides the choice of either Health and well-being are also a focussed a spacious, fully serviced en-suite luxury room activity at Bahia Mar Club, where a or an optimally equipped pied à terre (French holistic approach has been applied in the for “foot on the ground”). Friendly people, development of the wellness centre, which unspoiled ambiance and stunning scenery – comprises a gymnasium, aerobics area, outside this is Bahia Mar! jaccuzzi and zen meditation garden. Relax and let our therapists pamper and spoil you! With the emphasis on style and comfort, the accommodation is both luxurious and personalised. Here you can mix and match
For more info visit www.bahiamarclub.com
- The Mozambique Collection About The Mozambique Collection The Mozambique Collection showcases some of the most exciting, unique and intimate destinations, accentuating the variety found in Mozambique, one of Africa’s most incomparable, rapidly developing and beautiful country. The brand brings together a collection of stunning properties working together to promote the destination. The hand picked portfolio of members each has it’s own special attractions and experiences to contribute to the plethora of adventures that the country has to offer. The underlying principle of authentic luxury, in the true sense, resonates with all members – to offer the best possible experiences in idyllic locations, while creating a positive legacy for the local communities and environment in which they operate. For more information visit www.mozambique-collection.org JUNE 2016 Tourism Tattler Trade Journal 23
LEGAL
RISK IN TOURISM
one of the customer as being the group’s (assumed) ‘duly authorized representative’. Ten days before this group was about to depart, one member of the party decided she not longer wanted to go! She conveyed this to the ‘team leader’ who in turn conveyed it to the travel agent. The latter in turn pointed out that the ‘team leader’ had signed the travel agent’s terms and conditions (‘STC’) and that these contained a cancellation provision which (penalties) the travel agent intended enforcing. Well, the customer found a clever lawyer (Please note that is not an oxymoron!) who pointed out that his client had never had sight of or signed the STC!! Oh dear! Of course he was right and some fancy footwork later we managed to negotiate a settlement but guess who lost out (by & large)? The travel agent of course! So what is the answer? • Make sure that the ‘team leader’ is ‘duly authorized’ i.e. can present you with a document (e.g. a power of attorney) authorizing him or her to contract on behalf of the group. - Part 19 • It is crucial that the power of attorney be worded as widely as HAVE THE REQUISITES BEEN MET (continued) possible e.g. allowing the ‘team leader’ to accept the STC, making choices about hotels, etc. The sixth question is whether the parties to the contract have the • Ensure that all your documents (especially when you are faxing) capacity to contract – in other words are they of age and/or they contain either the complete STC or a legally adequate reference duly authorized? thereto (Yours and the third party service provider’s) Something that is often glossed over is whether or not the person(s) • Ensure compliance with the CPA such as full disclosure, etc. you are dealing with has the capacity to contract or has been duly (sections 41, 48, 49 & 51) authorized by the party or parties he or she purports to represent. Bookings with separate legal entities such as companies, close What we are alluding to are such matters as the age of the party, corporations and trusts are another ‘can of worms’. Two issues are transactions on behalf companies or group bookings. pertinent here: On the one hand the aspect of authority to bind the As the law stands at the moment, the age at which any individual entity and secondly when you have an existing corporate customer can enter into a binding contract is 18. Any agreement with a party who has accepted your STC due to e.g. a travel management under that age will NOT constitute a binding and legally enforceable agreement or credit application (which thus means the STC will contract unless such a party is emancipated (see below) or the parent or guardian has signed the agreement on behalf of the minor apply to all subsequent bookings), but where individual employees (including directors) of the entity then approach the travel agent to child. ‘OK’, you may be thinking, ‘This kind of thing simply does not make personal travel arrangements – RED FLAG!! Let’s deal with happen’. Let me tell you, you may as well bet your bottom dollar the first issue: no dealings with a party purporting to represent ‘the because it does. I recently had the case of a youth booking with a Johannesburg based travel agent and travelling all over Europe. When entity’ will be legally binding and enforceable against the entity unless the party is duly authorized to do so. If not your sole right the youth returned the travel agent approached her for payment of recourse will be against the individual and that can be messy! By of the balance of the trip, but no payment was forthcoming. Many the same token regarding the second issue, do NOT assume the STC telephone calls later they approached the parents who (No doubt accepted by the entity will be enforceable against the individuals after speaking with a friend in the legal fraternity) declined to pay, booking for their personal travel! A couple of years ago I had a insisting that they knew nothing about it and that the travel agent’s situation where directors of a ‘blue chip’ client approached the insole right of recourse was against the child, which was of course house travel agency to make bookings for hotels in Cardiff for the based on a contract that was null and void! (then) Rugby World Cup. The travel agent assumed their STC and A more prevalent situation, which has criminal sanctions, is the that of the hotel applied and happily made the reservations. When employment of an under age (18) person. Again such a contract will they wanted to cancel at ‘the 11th hour’, the travel agent tried to not be enforceable. There is the issue of emancipation which means rely on the cancellation provisions in the STC and hotel booking form that a person under the age of 18 may be deemed to have reached – NO LUCK! Now, if you ever had to negotiate a ‘messy’ settlement, maturity due to certain business dealings or via a court order, but it this was one! Why? Not only because none of the STC were would be better not to attempt ‘going down that road’ – it is simply applicable but mainly because the travel agent was ‘caught between too complex. a rock and a hard place’: lose the ‘blue chip’ client or settle!! It is therefore imperative when you enter into ANY contract with Capisce? The CPA also addressed this aspect i.e. the consumer who ANY individual that you obtain a copy of their identity document. It is is the so-called end-user and linked to this the (Completely incorrect) not only good risk management and will be crucial in the (hopefully perception that the CPA does (never) apply to juristic persons (such as unlikely) event that you have to trace the individual because the debt the above) if the turn-over or asset value is in excess of R2m! becomes bad but also good business practice. It will provide you with So what is the answer? irrefutable proof of the person’s age and if under 18, you will have • Make sure the individual who purports to represent the entity is to obtain the signature of a parent or legal guardian of the person. ‘duly authorized’. Do NOT enter into any transaction without doing that, e.g. make • The resolution must be adequately worded (see above re groups) reservations with airlines, hotels etc. as you will have NO right of • If it turns out that the individual actually wants to make a personal recourse and will have to put your hand into your OWN pocket!! booking, ensure that he or she signs and accepts the STC (Yours How many travel agents and tour operators have not been ‘stung’ and the third party service provider’s) in his/her personal capacity! when making ‘group bookings’ (By this I mean one person coming • Do NOT try to rely on ‘ostensible authority’ i.e. due to the person’s into your office purporting to represent a group of people and then position in the entity e.g. general manager you assumed he or she making extensive holiday arrangements with you on their behalf)? had authority – it is ‘tricky’ and expensive to prove. Recently I had a situation of a coastal travel agency who had made extensive bookings (flights, car hire & accommodation) for overseas Disclaimer: This article is intended to provide a brief overview of legal travel for an inland based group of people. They had been making matters pertaining to the travel and tourism industry and is not intended as legal advice. © Adv Louis Nel, 'Louis The Lawyer', June 2016. bookings for this group over a period of years and always dealt with
THE LAW OF CONTRACTS
Enforcing Your Contract: Homework – What To Do Before You Go Ahead
24 Tourism Tattler Trade Journal JUNE 2016
This series of articles explores the legal aspects associated with the risks of operating an adventure tourism business, with specific relevance to the legal framework applicable to South Africa.
Part 1 By ‘Louis The Lawyer’
ADVENTURE TOURISM from a legal perspective DEFINITIONS Before we start on this series of articles relating to the legal aspects associated with operating an adventure tourism business, we need to clarify what the term ‘Adventure Tourism’ entails. There are a variety of definitions but the key elements seem to be incorporated in the following definitions: Adventure travel is a type of tourism, involving exploration or travel with perceived (and possibly actual) risk, and potentially requiring specialized skills and physical exertion. Adventure tourism has grown in recent decades, as tourists seek different kinds of vacations, but measurement of market size and growth is hampered by the lack of a clear operational definition. According to the U.S. based Adventure Travel Trade Association, adventure travel may be any tourist activity that includes the following three components: a physical activity, a cultural exchange and connection with nature. Source: Wikipedia. The above is expounded more graphically in the following definition: Adventure Tourism may be defined as a leisure activity that takes place in an unusual, exotic, remote, or wilderness destination and tends to be associated with high levels of involvement and activity by the participants, most of it outdoors. Adventure travellers are explorers of both an outer world, especially the unspoiled, exotic parts of our planet and an inner world of personal challenge, self perception and self mastery. Source: Thompson Rivers University. Derivatives of the above include ‘Disaster tourism’ i.e. the act of travelling to a disaster area as a matter of curiosity (Remember the movie ‘Twister’?) and
Image courtesy of Canopy Tours
‘Extreme tourism’ which involves travel to dangerous (extreme) locations or participation in dangerous events or activities (Wikipedia) and participation can be guided (professional guide) or self-guided, with or without commercial operator. ACTIVITIES There are a number of activities that are deemed to comprise adventure tourism and here are a few examples (from Wikipedia, R. Buckley & Johan Ratcliffe of ‘Dirty Boots’): • Back Packing (including ‘Slackpacking’) • Biking – Mtb or Motorized • Boat Trips • Bungee Jumping • Canoeing & Kayaking • Experiential Travel • Horse Riding • Hot Air Ballooning • Mountaineering • Parachuting & Paragliding • Rafting (Including White Water) • Safari – On Foot (Guided Trails) • Shark Tourism • Skiing & Snowboarding (including ‘Heliskiing’) • Tunnel Tourism • Wildlife Watching • Zip Lining. CATEGORIES Broadly speaking, the following appears to be the generally accepted categories of adventure tourism but clearly some of these can over-lap: SOFT– This is for non-adrenaline junkies and families and would include adventure holidays e.g. canopy tours. NATURE BASED – Elephant walks, gorilla tracking and swimming with Dolphins. HARD/EXTREME – A higher element of risk and professionalism is involved. To be continued.
Disclaimer: This article is intended to provide a brief overview of legal matters pertaining to the tadventure tourism industry and is not intended as legal advice. © Adv Louis Nel, 'Louis The Lawyer', June 2016. JUNE 2016 Tourism Tattler Trade Journal 25
MARKETING
26 Tourism Tattler Trade Journal JUNE 2016
MARKETING
SA HOTELS Lag Behind Global Peers in
MOBILE TECH South African hotels continue to lag behind their global peers in adopting technology to meet increasingly sophisticated customer demands. These hotels risk being cut adrift in a digital economy, according to Grant Thornton. Gillian Saunders, Head of Advisory Services at Grant Thornton South Africa and Global leader for travel, tourism and leisure for Grant Thornton said the firm’s latest research indicated an urgent need for hotel and tourism companies to leverage cuttingedge technology, in order to personalise the customer experience, but always in balance with the traditional human touch. “My team has surveyed the various online application stores including Google Play and Apple Store and we could find only one app from the South African hotel chains. What the industry needs to realise is that in the modern digital economy, business travellers in particular expect convenient mobile services and options which is something that the South African hotel industry is yet to grasp. “While we don’t expect local hotel groups to have complete end-to-end solutions overnight it’s imperative that they have some sort of mobile friendly online presence not only to facilitate travel but to enhance the customer experience. The technology available through smart phones and tablets is growing exponentially and the market is increasingly expecting to facilitate transactions, and by extension their travel, from their mobile devices.” With separate research showing that plans to boost R&D spend are low across the global tourism industry, and as Airbnb’s success shows no signs of abating, Grant Thornton warns that firms who fail to act on personalisation enabled through digital risk being cut adrift and growth could suffer as a result. A new report from Grant Thornton, ‘The power of Personalisation: Hotels’ roadmap to 2020’, identifies key pressures
facing hotels today include the growth of sharing economy providers, the increasing influence of online travel agents in the booking process, and the rapidly evolving needs and expectations of guests. In addition to personalisation, the industry will be forced to consider new business models or respond to those disruptors entering their space with new business models. It will be critical to adapt to a fluid environment where disruption is inevitable. The changing nature of the hotel industry is evident in global statistics that indicate: • Two million listings on Airbnb, which is increasingly setting its sights on business travellers; • US $335bn projected value of the sharing economy by 2025, up from $40bn in 2014; and • US$14.4bn value of Marriott International’s acquisition of Starwood Hotels & Resorts in March 2016. Saunders noted that Airbnb had more than 21,000* listings in South Africa making it a significant player in the market and in some instances real competition to the traditional hotels. *i.e rooms, not properties - Ed. She said that innovation in the sector could encompass radical shifts; incremental change or a blend of both. Saunders cited Marriot’s new room entertainment services in partnership with Netflix and Virgin’s new bed design that accommodates laptops for business travellers as key international examples of how much innovation is currently taking place. “South African hotel groups will have to stress the advantages they have in terms of better services and facilities; security, consistency and certainty and they will need to communicate these effectively. Radical shifts such as exploring partnerships with the likes of Airbnb as well as introducing new flexible pricing structures and creating internal innovation teams would assist hotel brands to be relevant going forward.” For more info visit www.grantthornton.co.za JUNE 2016 Tourism Tattler Trade Journal 27
SAFETY & SECURITY
TERRORISM CHALLENGES IN AFRICA
By Josephine Wawira, Jovago The hotel industry goes hand in hand with excellent security, as it is an integral part of the hotel’s success. In modern day, hotels invest heavily in security measures, given that lack of it can render both guests and staff susceptible to a glut of perils; not to mention damaging the hotel’s repute. Nevertheless, hotels offering accommodation in high security threat regions, despite their in-house acquiescence such as use of CCTV and camera control, face pervasive risks which require professional handling to avoid escalation. The recent attack by al-Qaida at a beach in Grand Bassam, Ivory Coast, was a big blow to the West African country’s hotel industry, with effects likely to foil the government’s target of 1 million tourists this year. Reports show that over the past three years, the Ivorian government has invested 151 billion CFA, approximately $266,000 in hotels, in a bid to improve
28 Tourism Tattler Trade Journal JUNE 2016
the industry and revitalize tourism. Attacks by gunmen in a hotel in Ouagadougou, the capital of Burkina Faso earlier this year, plus other terrorist attacks and politically instigated conflicts across African countries such as Mali, Somalia, Burundi, Chad, South Sudan - Juba, Central African Republic and north parts of Nigeria such as Borno; continue to undermine the African efforts of tapping revenue from the hotel and tourism industries.
Somalia. The hotel bore the weight of terror in Mogadishu after it was struck by a suicide bomber in July 2015, causing massive destruction. In the aftermath of such a major security incident, in any given scenario, causes incredible loss of property and in some cases loss of life and lifelong injuries. Huge revenues are also lost to competitors who take advantage to advance their business while the victim takes time to re-build, if at all.
While combined efforts from the United Nations Mission in Somalia (AMISOM), the government of Somalia and other organizations of good will to restore peace and security in the war torn country are seen to be gaining mileage, security concerns remain inevitable with frequent terrorist attacks from the notorious AlShabaab militant group.
Speaking to Jovago.com, Mr. Justus Kisaulu - the General Manager of Jazeera Palace Hotel, which re-opened in November 2015, notes that the security situation in Somalia and specifically Mogadishu is improving day by day. “Despite the negative publicity we get, sometimes we may go for months without any major incidence. Crime and terrorism has been largely deterred by mounting road blocks at various roads, intelligence led operation and professionally training
Jazeera Palace Hotel is one of the most popular hotels located in Mogadishu,
SAFETY & SECURITY
the police force among other measures,” he explained. Jazeera Hotel is a proof of resilience and optimism of the hotel industry in the face of terror. The hotel’s occupancy rate remains high at roughly 80%, hosting mainly business people, government officials, government delegations, foreign diplomats and NGOs. Kisaulu acknowledges that guests remain concerned about their security when on transit, prompting Jazeera to provide armored vehicles to mitigate the level of risk. The hotel industry in Bauchi State in Northeast Nigeria has also reached its nadir from being targeted by Boko Haram insurgents. In spite of the spate of insurgency, Bauchi is bestowed with rich natural assets, being home to Ankara National Park and some of the best accommodation facilities in the area. Juliet Okere, the manager of Polycon Guest Inn
in Bauchi, says the presence of security personnel in the recent past as a panacea to the insurgence menace has gone a long way in bringing calm in the state, thus boosting guests’ confidence to tour the area. Remarkably, Juliet credits local Nigerians for their trust and contribution in restoring the hotel industry in the region, which has for years been debilitated by the presence of Boko Haram. While uncertainties surround the future of the industry in Bauchi and other Nigerian states such as Borno which are still writhing against the insurgents, Juliet, like many other hotel stakeholders, remains optimistic that collective efforts will show light at the end of the tunnel. Despite the security challenges, the hotel industry is defying all odds to remain relevant and competitive. Internet uptake in these terrorism prone countries has also contributed highly to revolutionizing
the sector, with the use of online booking platforms such as Jovago and Expedia; which enable travelers to book their accommodation online. According to Jazeera’s GM, “Internet in these countries is so crucial because of the increase in International guests and does reduce human movement within the city, thus reducing risk of being targets. This is the driver of the business now and in the future.” A report by the International peace Institute shows that, while last year saw Sub-Saharan Africa overcome a number of important challenges, it also saw the continuation and often the creation of social, political, and economic obstacles that will define the continent’s security outlook in 2016. Hopefully, concerted efforts to curtail terrorism will pave the way to writing a different script, with a positive outlook for the hotel industry in regions with high security threats.
JUNE 2016 Tourism Tattler Trade Journal 29
RISK
UNDERSTANDING
Tourism Trade Insurance - Part 6 Part 1 in this series covered an introduction to insurance, an outline on the EC Directive, the basics of risk management, and financial guarantees. Parts 2 and 3 looked at liability insurance, Part 4 continued the subject of liability with specific reference to the Road Accident Fund in South Africa, and Part 5 dealt with Vehicle insurance. TYPES OF INSURANCE
PROPERTY INSURANCE This insurance covers basically two categories, that of the actual structure of the buildings and that of the actual contents. Structural This insurance will cover you in the event of your lodge or hotel being destroyed by fire, flood, wind, falling trees or any other such eventuality. In the tourism industry, the biggest risk is usually fire and here once again, one must make sure that you are sufficiently covered to survive the cost of restoring your establishment to new at the current building costs. Such insurance will exclude certain circumstances such as subsidence (the sinking down of land resulting from natural shifts or human activity) and will demand certain precautions in the event of lightning, etc. Make sure to check that your policy covers any unusual construction materials such as thatch or indigenous wood and take note of any special requirements such as maintained fire breaks. Two additional items that must be included in this cover are that of loss of income during the period of repair or rebuilding due to cancelled bookings and refunds and that of covering yourself against a claim from a neighbour in the event of a runaway fire, which could be proven to have originated on your farm or property. Contents This cover is for when you specifically wish to cover the contents of your hotel or lodge in the event of one of the above disasters happening. It is all very well rebuilding your establishment, but it is often more expensive to furnish it. Contents normally have to be itemised on a policy in order to justify replacement. The random theft of an item would also be covered under this insurance. Extensions - The following is a list of some of the property insurance policy extensions, which can be included, either at an additional premium or included in the cover: • Money held on your premises or in transit • Computer equipment • All Risk items as specified • Fidelity: Loss of money or stock as a result of theft or fraud by your employees • Business Interruption: Loss of income as a result of one or 30 Tourism Tattler Trade Journal JUNE 2016
The five kinds of insurance that apply to the tourism industry: 1. Financial Guarantee (Insurance Bond) - Refer January 2016 issue. 2. Liability Insurance - Refer Feb, Mar & Apr 2016 issues. 3. Vehicle / Property Insurance 4. Travel Insurance / Medical Rescue 5. Other Business Insurance (Buy & Sell, Key Person, Provident Fund)
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more of the insured perils, including prevention of access and failure of public utilities Machinery Breakdown: Cost of repairs or replacement of damaged machinery. Also extended to include any consequential loss of stock or income as a result of breakdown Goods in transit Contents cover: To cover all contents as per buildings, with optional theft cover Accidental Damage: Accidental physical loss of or damage to your property at or about the premises not otherwise insured or for which insurance is available and described in terms of any other section (other than Business All Risks) listed in the index of the policy Deterioration of Stock: normally for perishable goods as a result of an electrical fault or failure of supply Glass: Loss of or damage to internal and external glass (including mirrors), signwriting and treatment thereon at your premises for which you are responsible Office Contents: Loss of or damage to the contents (other than documents and electronic data processing equipment unless otherwise stated in the schedule) including landlord’s fixtures.
D. TRAVEL INSURANCE / MEDICAL RESCUE This is insurance that only applies to the individual travelling. Such insurance is often compulsory in certain parts of the world, and as stated before, you should make this a compulsory condition for any clients using your facilities or travelling on any of your tours. This insurance is usually purchased by the client when choosing the tour or package and is sold by agents all over the world. It covers the client against the following eventualities.
RISK
Cancellation
MEDICAL EVACUATION INSURANCE
Should a client, prior to travelling, have to cancel their holiday for any legitimate reason, they would normally be subject to a cancellation penalty, which could cost them dearly. However if they carry this insurance and this eventuality does arise, then the policy would cover the penalty payable.
If your accommodation establishment is located in a very remote area and you are concerned that this fact may inhibit your potential to attract tourists, you may want to consider taking out your own medical evacuation insurance.
Curtailment Should a client, whilst already on holiday, have to cancel their holiday for any reason, they would normally forfeit any amounts paid and still be liable for the whole cost of their booking. This insurance would compensate for the unused portion of their stay. Obviously, the reasons for such curtailment must be genuine. Lost baggage and theft This will cover the loss of baggage and other personal items while travelling, although they should be itemised beforehand. Should the client specifically wish to cover he loss of cash this can be covered but is very expensive. Obviously airlines cover baggage they have lost, and banks will cover lost travellers cheques, but this insurance is more far-reaching. Medical and rescue A huge fear for any traveller is that of falling ill whilst on holiday, or worse still, being involved in an accident in a foreign country. Fortunately for clients travelling within Southern Africa, medical expenses are relatively low, but the cost is still a concern. This cover is very important and will cover clients for any major medical expenses and specifically in the case of hospitalisation. What is also very important is that these policies will normally cover the medical rescue from the scene of the accident, and if necessary, the transfer of the client to any other hospital where better medical attention may be available. These policies will also cover the repatriation of an injured client to their country of origin, if necessary, and the repatriation of the mortal remains should the accident prove to be fatal. This insurance is not very expensive and yet many travellers will insist on travelling without it. TIP: Remember when compiling your rooming lists or your tour mandates to record the details of each client’s insurance cover, so that in the event of them being ill or injured, you can access this information in order to alert their insurance company.
These policies cover your guests the event of them sustaining a life threatening Medical Emergency following bodily injury or acute illness, where: • Local facilities are not suitable to treat the medical condition • You consider the local medical services available to be inadequate • The attending doctor, in agreement with your guest, recommends hospitalisation of a kind not available locally. You will contact one of the specified service providers who will arrange, monitor, supervise and pay for the following services, which will then be reimbursed by underwriters: • The evacuation of the guest to the nearest appropriate hospital • The relocation, with or without medical supervision, by means considered to be suitable by you or the attending doctor (including ambulance, chartered or commercial flight or road transport) to a hospital more appropriately equipped for the particular emergency • The repatriation, including road ambulance transfers, to and from the airports with necessary medical supervision to an appropriate hospital or other healthcare facility near the residence of your guest. Remember that quite often the individual involved in an accident on your property or in one of your vehicles could be a staff member. It is advisable to have a clear policy in this regard. Most medical aids are adequate but, specifically with guides, a personal accident policy is advisable in the event of a vehicle accident in a remote area. However such cover is taken out in the individual’s name and would depend on company policy, risk and demand. TIP: Part-time guides are not automatically covered for any medical emergency and should therefore carry their own private cover as they are in effect self-employed and therefore do not necessarily enjoy the benefits of a full time employee. This article will be continued in the June 2016 edition of the Tourism Tattler, and will explain Other Business insurance applicable to the tourism trade - Ed.
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Collect at SATSA’s offices: 3rd Floor, Petrob House, 343 Surrey Avenue, Ferndale, Johannesburg or email communications@satsa.co.za (Note that a nominal fee will be charged for admin, postage or courier costs)
JUNE 2016 Tourism Tattler Trade Journal 31
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