Page 1

ISSUE 01 | Quarter 1 2018

IN THIS ISSUE:

• Accolades • Business & Finance • Conservation • Destinations • Environment • Events • Hospitality • • Interviews • Legal • Marketing • Risk • Technology • Transport •


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EDITORIAL

IN THIS ISSUE: CONTENTS

ISSUE 01 2018 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

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

SUBSCRIPTIONS

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BACK ISSUES (Click on covers to download). ▼ OCT 2017

▼ OCT 2017

▼ SEP 2017

▼ AUG 2017

▼ JUL 2017

▼ JUN 2017

▼ MAY 2017

▼ APR 2017

▼ MAR 2017

ACCOLADES 08 Grow your Business: Enter the 2018 Lilizela Tourism Awards BUSINESS & FINANCE 10 South African Tourism Statistics: Jan-Dec 2017 11 The Revenue Journey - Part 4: Choosing Infrastructure 12 Africa’s Hotel Market: The 2017 Year in Review CONSERVATION 14 African Elephants Signal Marula Harvest Time 16 Rehabilitating Pendjari National Park DESTINATIONS 18 Discover The Secret Season ENVIRONMENT 20 Responsible and Guilt-Free Hydration in Cape Town EVENTS 21 WTM Africa 2018 - Cape Town 19-20 April 22 Africa’s Travel Indaba 2018 - Durban 8-10 May 23 Africa Hospitality Week - Johannesburg 24-26 June HOSPITALITY 24 Tourism Grading Council Introduces New Discounts INTERVIEWS 26 Q&A with Sommelier Taryn Nortje LEGAL 27 The CPA: Supply Chain & Liability MARKETING 28 Unpacking the Solo Travel Trend RISK 30 What every Risk Manager & Insurance Buyer Needs to Know TECHNOLOGY 32 Chatbot Technology in Business Travel 33 The Rise of QR code in the Travel Industry TRANSPORT 34 Jaguar Charges Ahead With All-Electric I-Pace

EDITORIAL CONTRIBUTORS

▼ FEB 2017

▼ JAN 2017

▼ DEC 2016

Martin Janse van Vuuren Neil Beaumont Samuel Nassimov Wayne Troughton

Derek Martin Euan McNeil José Pliya Liezl Hayes Louis Nel

MAGAZINE SPONSORS 02 Kenya Tourism Board 04 Africa Hospitality Week 07 Aquila Private Game Reserve

08 YesPlease! Tours & Transfers 09 Grootbos Private Nature Reserve 25 South African Tourism / TGCSA

SUPPORTED CHARITIES 36 Diabetes South Africa Disclaimer: The Tourism Tattler is published by Tourism Tattler (Pty) Ltd and is the official trade journal of various trade ‘associations’ (see page 02). 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, its ‘Associations’, 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, its ‘Associations’, 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.

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Official Trade Journal and Media Partner to: The Africa Travel Association +1.202.835.1115 • africatravelassociation.org ATA is a division of the Corporate Council on Africa (CCA) and a registered non-profit trade association in the USA.

+248 432 5560 • www.shta.sc The SHTA’s primary focus is to unite all Seychelles tourism industry stakeholders under one association.

The African Travel & Tourism Association

International Coalition of Tourism Partners (ICTP)

+44 20 7937 4408 • www.atta.travel Based in London, the Atta has members in 22 African countries and 37 worldwide.

www.tourismpartners.org ICTP is a travel and tourism coalition of global destinations committed to Quality Services and Green Growth.

National Accommodation Association of South Africa

International Institute for Peace through Tourism

+27 86 186 2272 • www.naa-sa.co.za The NAA-SA is a network of mainly smaller accommodation providers throughout South Africa.

www.iipt.org IIPT is dedicated to fostering tourism initiatives that contribute to international understanding and cooperation.

Regional Tourism Organisation of Southern Africa

The Hotel Show Africa 2018 TheHotelShowAfrica.com Thousands of hospitality professionals from around the world will be at Gallagher Convention Centre in Johannesburg from 25-27 June.

+27 11 315 2420/1 • www.retosa.co.za RETOSA is responsible for tourism growth and development in the Southern African Development Community (SADC) region.

Southern African Vehicle Rental and Leasing Association manager@savrala.co.za • www.savrala.co.za SAVRALA is the representative voice of Southern Africa’s vehicle rental, leasing and fleet management sector.

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Seychelles Hospitality & Tourism Association

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The Safari Awards www.safariawards.com Safari Award finalists are amongst the top 3% in Africa and the winners are unquestionably the best.


RESPONSIBLE & GUILT-FREE REHYDRATION Your 4-star family friendly Aquila Private Game Reserve & Spa experience will not be impacted by the current #WaterCrisis in Cape Town. Although Touws River has minimal water restrictions, we have implemented international award-winning responsible tourism measures - which include water and energy management. We use a mix of municipal, ground, rain and gray water systems and invite guests to come and enjoy Big 5 Safari, together with a responsible and guilt free shower and swim - only two hours’ drive from Cape Town. Come soak in our spa and indoor swimming pools.

FACILITIES & ACTIVITIES 4-STAR ESTABLISHMENT | PREMIER, FAMILY & LUXURY COTTAGES | LODGE ROOMS | DAY TRIP SAFARI | HORSEBACK SAFARI | QUAD BIKE SAFARI STAR SAFARI | OVERNIGHT SAFARI | FLY IN SAFARI | WINE TASTING | INDOOR & OUTDOOR RESTAURANTS | OUTDOOR POOL | WET BAR | CIGAR LOUNGE CONFERENCE CENTRE | SPA | CURIO SHOP | CHILDREN’S FACILITIES & JUNIOR RANGER PROGRAMME

www.aquilasafari.com

Aquilasafari

AquilaSafaris

RESERVATIONS: +27 (0)21 430 7260 | RES@AQUILASAFARI.COM Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 07


ACCOLADES

Grow your Business: Enter the 2018 Lilizela Tourism Awards “The Lilizela Tourism Awards give us the opportunity to celebrate trailblazers as well as service excellence in the South African tourism industry.” Sisa Ntshona, CEO South African Tourism. Entries for the esteemed Lilizela Tourism Awards for accommodation establishments and tourism-related products and services opened on 1 March 2018. The annual awards recognise and reward tourism players and businesses who work with tireless pride to deliver world-class products and services, growing South Africa’s global competitiveness as a destination in the process. The Lilizela Tourism Awards have been honouring the “best of the best” products, experiences and people in the South African tourism sector since 2012. An initiative of the National Department of Tourism and spearheaded by South African Tourism, the annual awards ceremony is always a star-studded and celebratory affair. “We are proud that through the Lilizela Tourism Awards, we have increased awareness of the important role that tourism plays in spurring on economic growth in the region. The prestige that is associated with this awards initiative is evidence that South African Tourism’s ongoing drive to promote service excellence and product grading through the Tourism Grading Council of South Africa (TGCSA) is yielding positive results for the tourism industry,” said South African Tourism’s Chief Executive Officer, Sisa Ntshona. In 2017, the awards attracted a record number of 1 649 entries, up by about 40% from 2016’s figure. Tourism businesses across the nine provinces are encouraged to enter. Accommodation establishments are required to be graded with the TGCSA to enter and those yet to be graded are encouraged to do so on the website. 08 Tourism Tattler Trade Journal

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The TGCSA is the only recognised and globally benchmarked quality assurance body for tourism products in South Africa. Entry to the Lilizela Tourism Awards is free and tourism businesses of all sizes are encouraged to enter in a bid to help develop, grow and transform the industry. For more information, visit www.lilizela.co.za. Entries close on 31 May 2018.

FREE WINNERS LISTING IN TOURISM TATTLER An added bonus for all provincial and national winners of the 2018 Lilizela Tourism Awards is a free listing in the Q4 edition of the Tourism Tattler Trade Journal. Click on the image below to view the 2017 winners list.


The Natural Choice in 5-Star Luxury

UNIQUE LODGES OF THE WORLD ®

Tel: +27 (0)28 384 8000 | Fax: +27 (0)28 384 8042 | reservations@grootbos.co.za | www.grootbos.com

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BUSINESS & FINANCE

The information below was extracted from data available as at 23 February 2018. By Martin Jansen van Vuuren of Grant Thornton.

ARRIVALS

The latest available data from Statistics South Africa is for January to December 2017*:

Current period

UK

Change over same period last year

447 901

0%

Germany

349 211

12%

USA

370 747

7.5%

India

97 921

2.7%

China (incl Hong Kong)

97 069

-17%

2 713 133

7.2%

Overseas Arrivals African Arrivals Total Foreign Arrivals

7 559 342

0.8%

10 285 197

2.4%

HOTEL STATS

Current period

Average Room Occupancy (ARO)

Average Room Rate (ARR)

Revenue Per Available Room (RevPAR)

All Hotels in SA

64.8%

R 1 221

R 792

All 5-star hotels in SA

65.2%

R 2 275

R 1 482

All 4-star hotels in SA

66.0%

R 1 128

R 744

All 3-star hotels in SA

65.1%

R 940

R 612

Change over same period last year All Hotels in SA

-0.4%

3.6%

3.1%

All 5-star hotels in SA

-0.9%

4.5%

3.5%

All 4-star hotels in SA

1.4%

3.3%

4.7%

All 3-star hotels in SA

-0.2%

1.9%

1.6%

ACSA DATA

The latest available data from ACSA is for January to December 2017: Change over same period last year

Passengers arriving on International Flights

Passengers arriving on Regional Flights

Passengers arriving on Domestic Flights

OR Tambo International

2.6%

-3.2%

2.0%

Cape Town International

20.9%

5.4%

2.3%

King Shaka International

2.6%

N/A

6.7%

CAR RENTAL DATA The latest available data from SAVRALA is for January to December 2016: Current period Industry Rental Days

7%

71.6%

1.5%

5 294 680 207

12%

Industry Utilisation Industry Revenue

Change over same period last year

16 936 276

WHAT THIS MEANS FOR MY BUSINESS At first glance the increase of 7.2% in overseas tourism seems good but is only on par with the global tourism arrivals average of 7%. Overseas tourism to South Africa also slowed down in the second half of 2017. Hotel occupancies remained subdued and growth in average room rates were either on par or below inflation i.e. no real growth. Cape Town International Airport continued to benefit from more direct international connections. Overall, the ACSA data shows an improvement in the number of passengers arriving on domestic flights in the second half of 2017. *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. 10 Tourism Tattler Trade Journal

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For more information contact Martin at Grant Thornton on +27 (0)21 417 8838 or visit: http://www.gt.co.za

The latest available data from STR Global is for January to December 2017:


BUSINESS & FINANCE

The

REVENUE Journey Part 4

Now that the revenue team is in place it is time to look at the distribution infrastructure of the property. Selling a product requires an infrastructure to put that product on a shelf so customers can buy it. This infrastructure can be made up of systems, manual processes or a combination of the two. By Derek Martin. In many cases infrastructure setup is not complicated. Typically it includes a system on property, linked to a Central Management System (CMS) that connects to different channels like Online Travel Agents (OTA), Global Distribution System (GDS) or Central Reservations Offices (CRO). Each of these channels puts the product in front of the buyer, thus creating an opportunity to ‘revenue manage’ the business. That is, if you have chosen the components of your infrastructure carefully! Revenue Management Levers Fully optimising revenues for a property with limited inventory and a perishable product consists of two key areas. Firstly, setting the price for the product, and secondly, managing the inventory. Both of these have further detailed elements that need to be considered. Pricing strategies can be implemented in different formats. For example, there is length of stay based pricing where a price is quoted based on the arrival day and the length of stay of the booking. If daily pricing is used then a different price is quoted for each day of the stay. Finally, if the property chooses continuous pricing then any price can be sold between a lower and upper rate boundary. Inventory management includes two key areas, one is length of stay and the second is overbooking. The chosen infrastructure needs to be able to handle both of these controls. Length of stay controls may be used at the total property level or the room type level. They may also be used at the rate level. Overbooking is typically implemented at the house level and room type levels, but for optimal revenue management it should also be applied at the rate level. Choosing Infrastructure Components The next step in setting up the infrastructure is to look at booking statistics and data. What percentage of bookings come in via OTA, GDS or CRO and what goes directly to the property? You want to optimise as much of your business as possible, so understanding how the business reaches your property is critical. For example if most of the business comes directly to your hotel via the reservations offices, then you want to have a Property Management System that can handle the revenue management levers mentioned earlier. If half of your business comes via OTAs, then you definitely want to make sure you can revenue manage that channel effectively and choose a channel manager that can handle the revenue controls that a revenue management system puts in place.

Infrastructure components can be a significant investment and you should carefully evaluate the options available. Infrastructure Opportunity Cost After evaluating the functionality of the different infrastructure components, pricing has to be reviewed. Often when asking property GMs or corporate revenue managers why a certain component was chosen, the answer is that there was a budget limitation or the owner did not want to spend more money. The question that needs to be asked is whether opportunity cost was considered when making the decision to go with a certain system. What is this opportunity cost? Let’s look at an example. You run a hotel with 100 rooms running at 80% occupancy with an ADR of $100. OTAs bring 40% of your business. The revenue generated via OTAs is calculated as follows: • Rooms sold per day: 100 x 80% = 80 rooms • Rooms sold via OTA: 80 rooms x 40% = 32 rooms • Revenue sold via OTA: 32 x $100 = $ 3,200 Typical revenue uplift when installing a revenue management system is between 5-15 percent. I will use 5% uplift to be conservative. This means that if the revenues via OTA cannot be revenue managed, this 5% uplift on those revenues cannot be achieved. This additional revenue that cannot be achieved is called opportunity cost. In the example given here the opportunity cost is $3,200 x 5% = $ 160 per day. Per month this would be 30 x $160 = $ 4,800. To finish our example, the property is evaluating two channel managers, Option A which does not integrate with a revenue management system and Option B, which integrates fully with a revenue management system. Option A is quoted at $ 500 per month flat fee and option B is quoted at a transaction cost of $2 per booking. The price for option B, based on current booking volume is: 32 rooms x 30 days x $2 = $ 1,920. At first glance this makes option B much more costly than option A. After taking the opportunity cost into consideration of $ 4,800 it is clear that option B is by far the best choice. Going for cheap can be a very costly choice! About the Author: Derek Martin is the founder and CEO of TrevPAR World – a hospitality data analytics company that specialises in revenue management. For more information visit www.trevparworld.com Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 11


BUSINESS & FINANCE

Africa’s Hotel Market: The 2017 Year in Review

The African hotel market experienced another eventful and evolutionary year in 2017. The continent continued to attract new regional and global investment, whilst economic and political events, currency shifts and fluctuating tourism demand brought both risks and rewards to hotel markets across the region.

By Wayne Troughton. Both upward and downward trends were noticeable across the continent in 2017, with more positive conditions in West Africa as oil economies geared up in response to a recovering oil price. Political instability in several East African countries served to dampen those markets in the area, albeit on a temporary basis. Here, then, is a brief summary of the top and bottom five performers across 14 African cities for 2017, as indicated by STR Global. Occupancy rates, Average Daily Rates, rooms sold and future supply have all been taken into account. Occupancy Rates In terms of occupancy growth, Lagos and Accra led the 14 African cities assessed (vs. Cape Town and Lusaka in 2016) as gradual economic recovery in the countries of Nigeria and Ghana saw both these cities benefit from increased business demand. Growth in Lagos came off a low base, however, and, in light of more positive economic projections, should see future occupancy rates boosted to former highs. Strong growth in Accra (Ghana) propelled occupancy rates to a healthy level just above 60%. Other markets showing moderate growth included the South African cities of Pretoria, Windhoek and Durban, whilst Namibia’s economy revealed signs of recovery after poor economic growth in 2016. Nairobi’s (Kenya) occupancy performance was the weakest of the cities assessed, with a decline in occupancy of 11.1%. Here, new supply (an additional 478 rooms, of which 334 were internationally branded - Four Points by Sheraton, Park 12 Tourism Tattler Trade Journal

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Inn) coupled with a decline in demand due to the violence surrounding the August 2017 elections substantially reduced accommodation demand. Dar es Salaam (Tanzania) followed Nairobi with a decline in occupancy of 9%. This was driven largely by investor uncertainty in new government policy, limiting business travel to the city. Additionally, direct flights to key tourism destinations reduced leisure demand in Dar es Salaam. Lower occupancies in Addis Ababa (Ethiopia) and Gaborone (Botswana) continued into 2017, following an occupancy decline of 10.% and 7.1% respectively in 2016. Although supply increased in these cities, demand declined due to political unrest (Addis Ababa) and economic challenges driven by mining (Botswana). Average Daily Rates Nine of the cities assessed achieved ADR growth in US Dollar terms in 2017, as opposed to only two of the 13 cities reviewed in 2016. Windhoek (Namibia) was the market leader followed by South Africa’s Cape Town, Pretoria, Sandton and Umhlanga. Strong growth in these cities was driven largely by the strengthening of the SA Rand against the US dollar (the Namibian dollar is pegged against the SA Rand). However, in local currency terms, only Windhoek (9.9% growth) and Cape Town (7.2% growth) were positioned in the top five growth markets. Local currency growth in the Pretoria, Sandton and Umhlanga markets was well below inflation (5.4% in 2017).


SNAPSHOT: Strongest Growth: Lagos Greatest Opportunity: Accra Keep Watching: Cape Town and Harare In USD terms Lagos showed the biggest decline in ADR of 19%. The Naira depreciated against the dollar by approximately 16.5% in July/August 2017 driving ADR in USD downwards. In local currency terms ADR increased by 5.4%. Nairobi followed Lagos with an ADR decline of 8.4%. Here, increased supply coupled with a decline in demand forced hoteliers to compromise on rate with a knock on effect for ADR. A similar situation was apparent in Dar es Salaam. The former leader in terms of ADR growth in 2016, Lusaka was one of the weakest performers with negative ADR growth (in USD) of -6.2%. In local currency Lusaka’s ADR declined by 13.4%. ADR in Accra reduced by 3.2% in terms of USD but grew by 7.6% in local currency. Rooms Sold The economic recovery in Nigeria saw the number of room nights sold in its capital city, Lagos, increase by 17.6%. This significant increase offset the 2.5% growth in supply . A similar situation was experienced in Accra, which saw a rise in roomnights sold to 13.7% as the economy emerged from a recent slump. Pretoria revealed positive demand increase as investment in casinos and commercial office space in new nodes drove growth. One of the growth leaders in roomnights sold in 2016, Cape Town showed negative growth in 2017 (-0.2%). New supply in the market has not yet been included in STR data and demand accommodated at such properties would therefore not be reflected which has influenced a downward trend in demand growth. Demand is therefore widely believed to have increased.

BUSINESS & FINANCE

sector in Gaborone negatively impacted demand in Botswana’s capital city, whilst the continued election violence in Nairobi led to a 3.3% reduction in total number of rooms sold. Future Supply The number of hotel projects under construction remains highest in Addis Ababa. Several projects expected to come online in 2017 experienced delays and should be realised during the course of 2018. These high levels of new supply (if all completed) are set to increase pressure on an already struggling market meaning that medium term outlook is therefore subdued. Planned supply in Lagos and Nairobi remains high and continues to place pressure on competitors. The nodal nature of competition in both cities is enabling quality developments, offering international standards and value for money, to continue to outperform market trends. Also nodal in nature, Accra is expected to experience an increase in supply of just fewer than 900 new rooms. A large proportion of this supply will be positioned in the expanding airport node. The pace of growth in the city, combined with new oil and gas related investment is expected to limit the impact of the new supply on occupancy rates. Competitive pressure is therefore expected to be short term. About the author: Wayne Troughton is CEO of African-based specialist hospitality, real estate and leisure consulting company, HTI Consulting. About HTI Consulting: In 2017 HTI conducted 40 studies across 20 cities in Africa, venturing into both new territories (including Senegal, Guinea, Niger and Benin) as well as established markets (Nairobi, Accra, Dar es Salaam, Kigali, Liberia and Addis Ababa). For information information visit www.hticonsulting.co.za

Dar es Salaam showed the biggest decline in terms of room nights sold in 2017. An uncertain investment environment, coupled with a ban on the export of unprocessed gold and copper ore, did much to deter investors over this period. Room nights sold declined by almost 6.0% in Addis Ababa, with the State of Emergency in Ethiopia (only lifted in August 2017) limiting opportunities for a recovery in visitor demand. The slowdown in the mining Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 13


CONSERVATION

African Elephants Signal Marula Harvest Time By Liezl Hayes. Once each year, when the elephants come, villagers in and around Phalaborwa in South Africa’s Limpopo province gather to harvest fruit for the production of Africa’s most awarded liqueur.

During the months of February/March each year hundreds of African Elephants descend on the marula trees of the Valley of Olifants in the Lowveld of Limpopo. This serves as a signal to local villagers that it is time to harvest the ripened fruit for their biggest global export, Amarula liqueur. The marula fruit harvest is led mostly by the women of the region, which is rich in natural and cultural heritage and includes 25 local villages, as well as game farms, wildlife sanctuaries and tribal land, stretching into the Kruger National Park. This year, elephant families trekked here to repeat their annual feast of fruit-laden marula trees, some of which reach up to nine meters in height. It is a spectacular sight that will not endure if we fail to conserve these majestic creatures. Today only about 350 000 African Elephants still survive in the wild. Their numbers are dwindling year on year due to illegal poaching that is claiming on average 96 elephant lives per day. But we are fighting back. When the elephants have had their fill, the locals collect the fallen marula fruit to sell to the Amarula plant in Phalaborwa, with the blessing of the local tribal chiefs. A select few also assist with the meticulous fruit sorting, which is normally accompanied by the singing of traditional songs. This process has been the practice

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CONSERVATION

About the author: Liezl Hayes is the Regional Brand Manager at Amarula. since the inception of Africa’s prized liqueur in 1983, and provides financial benefit to 60 000 people annually. Apart from selling fruit to Distell, the locals also use every bit of the tree for various purposes. Fruit skins are used as crop fertilizer, whilst the bark is used in traditional medicine to treat stomach ailments. The oil derived from the fruit kernels is used extensively too, added to beauty products and used for cooking and food preservation. Once the sun-ripened yellow fruit is collected, it is destoned, crushed and fermented. After fermentation, the marula liquid is distilled and aged in French oak barrels for at least two years in the Western Cape. Dairy cream is added to provide a rich, velvety texture. It is then shipped off to 103 countries around the world. With elephants being so central to the marula ecosystem, the Amarula brand has since 2002 played a pivotal role in the conservation of the endangered African Elephant in South Africa. The Amarula Trust and its conservation partners Wildlife Direct have ramped up efforts to raise awareness about elephant poaching with several global campaigns, including the acclaimed “Name Them, Save Them” and “Don’t Let Them Disappear” campaigns. Amarula has received numerous international awards for its unique product, packaging and extensive work in elephant conservation. For more information visit www.amarula.com Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 15


CONSERVATION

Rehabilitating

Pendjari National Park

Good news for conservation in Africa is that the Presidency of the Republic of Benin and the conservation NGO African Parks have signed a 10-year renewable partnership to revitalise, rehabilitate and develop Pendjari National Park, one of the largest remaining protected reserves in West and Central Africa. By José Pliya. A total investment of USD$26 million over 10 years will be used to protect and develop the Park spanning 4,800 km2. The revitalisation of Pendjari National Park is one of the 45 flagship projects of the ‘Revealing Benin’ investment programme, announced by the Presidency of the Republic of Benin in December 2016, and is the eleventh park under management by African Parks on the continent.

A Long-term Partnership

Revitalising an Exceptional Wildlife Reserve

1. Security and Protection. Securing Pendjari is the main priority of the agreement. A special brigade will be set up, with the recruitment of 10 officers, non-commissioned officers and specialised technicians, along with the training of 90 guards. A communications and geolocation network will cover the entire site, and all information will be centralised 24 hours a day at the operations coordination centre. A 190 km perimeter fence, 150 km of roads, an operational base, staff quarters, three guard posts and three small airfields will also be constructed.

Pendjari National Park, located in the north-west of Benin, is part of the WAP complex (W-Arly-Pendjari) spanning Benin, Burkina Faso and Niger. It is the largest remaining intact ecosystem in the whole of West Africa and the last vast refuge for West African wildlife. Pendjari is home to elephant, buffalo, lion, cheetah, antelope and many other species (hippo, tsessebe, Buffon’s kob and Defassa waterbuck to name a few). However, this exceptional reserve faces major threats including poaching, demographic pressure on surrounding land, as well as exponential resource erosion. As a result, the Presidency of the Republic of Benin has quickly put in place a plan to revitalise and protect the Park, as part of its investment programme ‘Revealing Benin’. In a progressive step the Government of Benin is committing $5.9M over 10 years, and initial start-up funds are being provided by several donors including the Wyss Foundation who made a significant multi-year challenge grant to African Parks to bring new parks under management.

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By signing a partnership agreement, the Presidency of Benin and African Parks set a goal of doubling the Park’s wildlife populations within the next 10 years. The action plan for the Park aims to develop responsible tourism, and to ensure the economic and social development of the region. Three main work streams have been identified:

2. Conservation of Biodiversity. In order to ensure the success of this partnership, an inventory of all animal species will be carried out every two years. A telemetric or specific monitoring system of key species such as elephants, lions, leopards and cheetahs - the prize species of Pendjari - will be implemented. Scientific research will also be fostered through close collaboration with Beninese and foreign universities and research organisations.


CONSERVATION CONSERVATION

BENIN

FAST FACTS Benin, a French-speaking West African nation, is a birthplace of the vodun (or “voodoo”) religion and home to the former Dahomey Kingdom from circa 1600–1900. In Abomey, Dahomey’s former capital, the Historical Museum occupies two royal palaces with bas-reliefs recounting the kingdom’s past and a throne mounted on human skulls. Pendjari National Park lies to the north of Benin. Capital: Porto-Novo Dialing code: +229 President: Patrice Talon Currency: West African CFA franc Population: 10.88 million (2015) World Bank Source: Wikipedia

3. Sustainable Economic Impact and Community Development. A unique tourist offering will be developed, with the objective of increasing visitors from 6,000 to more than 9,000. The challenge is to generate more direct revenue for the management of the Park, and to do so, African Parks will redevelop and manage the hotel and lodge in Pendjari. Due to growing demographic pressure (the human population surrounding Pendjari is expected to increase from 50,000 in 2017 to more than 65,000 in the coming 10 years), the integration of local communities in the project is crucial for the long-term conservation of the Park. Almost 400 direct jobs will be created, with training given to the guards and to professionals of the tourist industry, including guides, reception staff and drivers. Outcomes are also expected to be positive for local crafts, local businesses and markets. Potential for a Major Tourist Destination Tourism is one of the strategic sectors targeted by the ‘Revealing Benin’ programme, the objective being to take advantage of the historical, cultural and natural heritage of Benin to develop a tourist industry that provides strong economic outcomes and jobs. Beyond the exceptional fauna and flora, the Afro-Portuguese architecture of Porto-Novo, or the memorials of the slavery trade in Ouidah, are prime examples. The preserved coastline is also a solid asset for a qualitative ecotourism offer.

ABOUT THE REVEALING BENIN PROGRAMME With a budget of 9.039 trillion FCFA (€13.78 billion) over the next five years, this programme will raise investment to 34% of GDP (compared to 18.8% currently) through a collaboration with private sector partners, who will provide 61% of the programme’s total planned investment. Discover more on RevealingBenin. com. ABOUT AFRICAN PARKS African Parks is a non-profit conservation organisation that takes on the complete responsibility for the rehabilitation and long-term management of national parks and protected areas in partnership with governments and local communities. With the largest counter-poaching force and the most amount of area under protection for any one NGO in Africa, African Parks manages 11 national parks and protected areas covering 6.5 million hectares in eight countries: Benin, Central African Republic, Chad, the Democratic Republic of Congo, the Republic of Congo, Malawi, Rwanda and Zambia. For more information visit african-parks.org. About the author: José Pliya is a Director of the National Agency for the Heritage and Tourism of Benin. www.revealingbenin.com

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DESTINATIONS

The Secret Season ~ a magical time of the year when the landscape surrounding South Africa’s Overberg region in the Western Cape bursts forth to showcase its rich flora and fauna. The season runs from May to July and the best place to experience natures’ temperate winter wonderland is located a mere 2-hour drive from Cape Town.

ERICA IRREGULARIS

CAVE TOURS & MUSSEL FORAGING

Find out more about the unique pink blossoms of the Erica irregularis found nowhere else in the world. Watch as the hills around the Reserve burst into a flurry of beautiful colour and form an intricate part of the Cape Floral Kingdom.

Explore the hidden secrets of ancient coastal caves overlooking some of the most pristine beaches in the Western Cape. Forage for mussels with one of our knowledgeable guides and prepare them with one of our executive chefs.

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DESTINATIONS

wakened by the glow of stunning Autumn sunsets, the fynbos fields come alive with vibrant colour to welcome the Southern Right Whales after their long journey to South Africa’s warmer shores. In the heart of this majestic floral kingdom along the Whale Coast Route lies a private nature reserve dedicated to sustaining this delicate world heritage site.

Be inspired. Watch this awesome 2-minute video clip.

Tucked away in the middle of this beautifully orchestrated symphony of nature lies Grootbos Private Nature Reserve - your gateway to the Secret Season.

MARINE SAFARIS

HONEY EXPERIENCE

Experience the wonder of the Marine Big-5 as they gather in the abundant warm waters of Walker Bay. Be dazzled by the Cape Fur Seal, Great White Shark, Indo-Pacific Bottlenose Dolphin, African Penguin, and Southern Right Whale while on a Grootbos educational Marine Safari.

Head out into the veld with the Reserves’ very own beekeeper to learn about the Grootbos hives, how the golden honey is made, and get the chance to harvest your own Single Blossom Erica irregularis honey amongst thousands of buzzing bees.

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ENVIRONMENT

Responsible & Guilt-Free Hydration Under 2 hour’s drive from Cape Town As a travel trade partner to South Africa’s Western Cape tourism industry, and one of the top-ten executive partners to Cape Town Tourism, Aquila Private Game Reserve and Spa take the water crisis in Cape Town very seriously.

The Breede Valley municipal region – where the the 10,000 hectare conservancy is situated between the dramatic Langeberg and Outeniqua Mountains in the Southern Karoo – has not been flagged as a water crisis zone as per the Cape Town Metropole situation. But, being a big-5 safari destination in Touws River, Aquila has remained true to its conservation ethos since inception, namely that as a Karoo-based property it has treated this precious commodity with respect and sustainability. As an internationally recognised Imvelo award winner for sustainable tourism measures implemented by a large tourism establishment, Aquila is recognised for its water and energy management. Water saving measures that have been undertaken at the reserve, include: • Clear messaging on all confirmed bookings prior to arrival to ensure guests use water sparingly during their Aquila visit. • The instalation of in-room ‘water crisis’ notifications to provide guests with tips on how to use less water during their stay. • Towels only replaced at the request of the guest during an overnight stay. 20 Tourism Tattler Trade Journal

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• Bath plugs removed from rooms that have both a bath and shower option – with clear notices requesting that guests take a two minute shower rather than a luxurious bath. • Communal areas make use of non-potable water (only when absolutely needed), and key messages have been posted at communal areas to make visitors aware of water usage policies. • All communal gardens have been changed by removing vegetation that require excessive water, and replaced with succulents, which occur naturally in the Karoo. Further measures to reduce bulk water consumption are continually being investigated. For example, when Aquila had to do mandatory repairs and maintenance to the swimming pool, they made use of innovative water bladders, at a major cost, to ensure that not a single drop of water was wasted. The entire 35m pool was emptied into large water bladders, and after repairs, refilled with the very same water. Karoo water supply management and infrastructure is complicated and fragile. Aquila uses a mix of municipal supplied potable water, its own limited supply of groundwater, rain water, and non-potable water. In conclusion, although Aquila treats the resource with utmost respect, the municipal boundaries of the Cape Town water crisis management zone do not apply to the Touws River region or to Aquila private game reserve. It is with this in mind that Aquila is inviting guests to enjoy a responsible and guilt-free shower, swim and spa treatment – under two hours’ drive from Cape Town. For more information visit www.aquilasafari.com


EVENTS

Cape Town 19-20 April

WTM Africa 2018: Bigger, Better & Bolder The Cape Town International Convention Centre will once again open its floor to over 600 exhibitors and a host of quality influential buyers from key source markets around the globe from 19 to 20 April 2018. WTM Africa 2018 will once again show growth across the number of exhibitors on its floor, the number of buyers in attendance, a large global media contingent and stakeholders from both the inbound and outbound travel trade. “Africa has long been identified as a continent bursting with potential within the the tourism and travel sectors. WTM Africa is further recognition of this potential and in 2018, we’re ready to welcome more exhibitors from Africa than ever before,” says Chardonnay Marchesi, South Africa Portfolio Director for Reed Exhibitions’ Travel, Tourism & Sports Portfolio.

Global media too have confirmed their attendance at WTM Africa 2018, including Tourism Tattler. “WTM Africa would like to thank its generous sponsors, including AKTV, the Mauritius Tourism Board, MaMere, The Westin Cape Town, OmniTech Solutions, Mother City Hikers, City Sightseeing and Go Turkey Tourism,” says Marchesi. Don’t miss out on all the latest details and the opportunity to attend this year’s show in Cape Town: Register free of charge online by visiting www.africa.wtm.com

Thus far, we are on track to exceed our 2017 buyer registration applications, including hosted buyers and Buyer’s Club members. We have seen a significant increase in exhibitors and have as such, opted to expand the floor space used for stands at the Cape Town ICC for WTM Africa in April 2018. “We’re in for multiple new initiatives at WTM Africa 2018, including the ultimate opportunity, WTM Africa Festivals,” explains Marchesi. “WTM Africa Festivals will give everyone the opportunity to socialise after the traditional working hours in a fun and vibrant atmosphere. All attendees will experience the culture, hospitality and cuisine with each hosting exhibitor offering something unique.” WTM Africa Festivals will kick off from 4:30pm on Wednesday 18 April. All destinations or exhibiting companies should celebrate festivals during WTM Africa. A wide range of prizes, valued at over R100 000, are also up for grabs, including those from Legend Lodges, Aquila Private Game Reserve, Cape Sidecar Adventures, Marine Dynamics, and Zulu Nyala. Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 21


EVENTS

Durban 08-10 May

Be Part of Africa’s Travel Indaba An impressive array of tourism destinations and products await visitors at the show for African travel fanatics. A treasure chest of small “gems” offering the modern traveller unforgettable African experiences, plus plush luxury establishments that redefine the meaning of five-star travel – that’s just a taste of the variety that’s on offer at this year’s Africa’s Travel Indaba, which will shine a spotlight on the continent’s finest tourism products and services from 8 to 10 May 2018. The 2018 edition of the continent’s largest and longest-running travel showcase, brought to you by South African Tourism, is expected to see about 7 000 exhibitors, travel buyers, journalists and tourism industry professionals converging on the Inkosi Albert Luthuli Convention Centre in Durban, KwaZulu-Natal. There, they will explore the vast array of opportunities being offered by the rapidly growing African tourism economy, which is riding high after recording 8% average growth in international arrivals in 2017. The three jam-packed tradeshow days will be preceded by a day of workshops and talks on 7 May 2018, known as the Business Opportunity Networking Day (BONDay). This year, there will also be a special focus on Nelson Mandela to mark the centenary of the global icon’s birth. With this year’s theme of Africa’s Stories, Your Success echoing South African President Cyril Ramaphosa’s inspiring “send me” call to action, Africa’s Travel Indaba is gearing up for another lively trade show with a refreshed look and feel and a renewed impetus, says South African Tourism’s Chief Executive Officer, Sisa Ntshona. “The modern traveller is looking for a travel experience that is distinctive and authentic, and travel in Africa offers exactly that: an unforgettable experience that leaves you with stories to tell. It 22 Tourism Tattler Trade Journal

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is these real, incredible African stories that inspire our continent’s world-class tourism products and drive their business forward,” says Ntshona, elaborating on the theme. The exhibition has undergone a complete brand transformation, launched at last year’s show. Ntshona says that the new look for Africa’s Travel Indaba was not just about updating and modernising the brand; it was also designed to refresh the trade show and maximise business success for participants over the three days of the exhibition. “The Indaba was originally a typical exhibition show, with a few presentations and events scheduled in between, but we have now developed a more robust African conference, workshop and event schedule for this year’s event,” explains Ntshona. “This will provide the latest insights and intelligence to help businesses to not only buy and sell travel, but also to inspire them to innovate and take advantage of global trends and opportunities arising from the fourth industrial revolution.” According to Ntshona, participants have many enhancements to look forward to at Africa’s Travel Indaba 2018, including an impressive speaker line-up of African thought leaders, 45 new first-time exhibiting small businesses and a celebration of the centenary of Nelson Mandela’s birth. Africa’s Travel Indaba comes hot on the heels of South African Tourism’s Meetings Africa trade show. The exhibition recently concluded its 13th edition at the Sandon Convention Centre, attracting some 3 000 global and African delegates to explore Africa as a business events destination. Exhibitors, buyers and media are invited to register by visiting www.indaba-southafrica.co.za.


EVENTS

Jozi set to Attract Thousands of Africa’s Hospitality Professionals this June Johannesburg 24-26 June

“Hotel room numbers has been growing strongly thanks to increased investment, visitor numbers are up with a more than 70-percent occupancy across East, West and Southern Africa this year,” said Christine Davidson, Vice President of dmg events, organiser of Africa Hospitality Week 2018.

Africa Hospitality Week 2018 brings three exciting exhibitions and two conferences under one roof to serve sub-Saharan Africa’s growing hotel, restaurant and catering sectors This event is set to bring together the suppliers, buyers and thought leaders to Johannesburg, South Africa from June 24-26.

But the growth is not solely in the luxury sector, says Davidson: “Alongside new four and five-star hotels, investors are turning their attention to mid-scale market development opportunities.”

With 63 million international arrivals in Africa last year, up 8 per cent year on year and larger than the world average, the hospitality sector is one of the continent’s biggest commercial successes – and it’s set to continue.

Africa Hospitality Week 2018 includes two conferences which run over the three days bringing expert speakers and panelists from around the world to The Hospitality Leadership Forum and The Food Leadership Forum.

Christine Davidson.

Global brands are opening new hotels in unprecedented numbers and 2017’s big hitters were Hyatt Hotels and Resorts, Hilton Worldwide, Pearl of Africa Hotel, Dubai-based luxury resort company One&Only, and America’s luxury chain Marriot. And that investment and growth is continuing in 2018.

African Hospitality Week 2018 brings together the world’s leading suppliers with more than 15,000 decision makers at Africa’s three key exhibitions: • The Hotel Show Africa brings global exhibitors showcasing products across interiors, lighting and design, technology, security, catering equipment and more. • Africa’s Big 7 is the continent’s leading food & beverage event since 2001 where visitors source new ingredients, finished products, processing, packaging and logistics solutions. • And new for 2018, iHost is the showcase for suppliers of the innovative technologies and equipment for foodservice, catering and back of house operations.

Africa Hospitality Week is supported by host partner South African Tourism and leading tourism industry associations including: • Federated Hospitality Association of Southern Africa. • Restaurant Association of South Africa • World Association of Chefs’ Societies. • Guest House Accommodation of South Africa • National Accommodation Association of South Africa. For more information visit www.africahospitalityweek.com Proud Media Partner to The Hotel Show Africa 2018 Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 23


HOSPITALITY

Tourism Grading Council Introduces New Discounts

South African tourism establishments can save up to 90% on the cost of grading from 1 February 2017 and receive all the benefits of being star-graded, thanks to changes to the Tourism Grading Support Programme.

From February this year, the Tourism Grading Council of South Africa (TGCSA) will be administering this programme and introducing attractive new discounts to bring new players into the system while incentivising existing members to maintain their grading status. The programme was introduced by the National Department of Tourism (NDT) in 2015 to encourage more accommodation establishments and venues to become graded, while empowering emerging players and accelerating the transformation of the sector. “We welcome this important oversight role entrusted to us by the department, which will further help remove the barriers – chiefly, cost – that may be preventing particularly smaller businesses from becoming graded,” said Sisa Ntshona, CEO of South African Tourism. “We hope the attractive discounts will incentivise them to become a member of the TGCSA family and enjoy the many benefits of being graded, from enhanced visibility by being listed on the Grading Council’s website to its extensive Basket of Benefits. The public will benefit from having more star-graded options to choose from, and the tourism businesses themselves will now find it more affordable to be graded and become a formal part of the tourism ecosystem.” The TGCSA allocates star gradings to establishments based on their service offerings, providing local and international visitors with an internationally benchmarked assurance of quality. The pilot phase of the programme, which forms part of the department’s Tourism Incentive Programme, offered rebates on the grading assessment fees paid to the TGCSA. The rebate system will now be replaced by an upfront discount on assessment fees as part of the TGCSA’s improved online grading application process. The changes mean that graded establishments can save up to 90% of their membership fees for a period of three years if they meet

programme criteria (such as tax and BBBEE compliance) and are Tourism Levy South Africa (TOMSA) members. The 1% TOMSA levy collected by accommodation and meetings establishments is used to augment South African Tourism’s annual budget allocation to market South Africa. For more information on the project, visit tourism.gov.za or contact: Nelisiwe Yengwa Operations Manager TGCSA 011 895 3000 nelisiwe@tourismgrading.co.za

Mputle Seloane Programme Director NDT 012 444 6429 mseloane@tourism.gov.za

Frequently Asked Questions Q: Who will qualify for the discounted grading? A: All establishments who meet the qualifying criteria can access the discount either at point of initial application or upon renewal of membership. Q: Do I have to courier the tax clearance certificate to the TGCSA? A: The tax clearance certificate has to be uploaded online as part of a new application or renewal application for all establishments who want to access the discount. Q: Do I have to comply with all conditions of the discount in order to qualify? A: Yes, all conditions are mandatory to qualify for the discount. Q: When does the discount commence? A: All discounts will be applied effective 01 February 2018 for NEW and RENEWAL membership applications. Q: What happens if I have not yet paid my invoice, will you apply the discount before I make payment? A: All discounts will be applied effective 01 February 2018 for NEW and RENEWAL membership applications that meet the qualifying criteria. Q: What happens if I don’t meet some or all the conditions for the discount? A: Establishments must meet ALL the requirements in order to qualify for the discounted grading fee. Failure to meet any of these requirements will result in the standard membership fees being applicable. 24 Tourism Tattler Trade Journal

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Grow your business, earn your stars and get up to 90% off. Visit www.tourismgrading.co.za

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2018/03/28 3:11 PM


INTERVIEWS

Q&A with Sommelier Taryn Nortje

One of South Africa’s most aspiring female sommeliers, 28-year-old Taryn Nortje, recently joined the award-winning Restaurant Mosaic team headed up by award-winning Chef Chantel Dartnall. Q: What’s your background? I was born in Carletonville and grew up in the North West A: Province. My family now lives in Hermanus. Growing up I loved going to the theatre, writing, directing and acting in school plays. My favourite subjects were Speech and Drama and Geography and I initially studied a Bachelor of Arts at Rhodes University. Q: How did your love affair with wine and your journey to becoming a sommelier begin? A: I was waitressing in the Hemel-en-Aarde Valley and loved the idea of being able to explain the wines a little better to the guests. I completely immersed myself into the world of wine. After I’d completed my first wine course I knew my life would be dedicated to wine. Q: What does the training involve and what are the attributes needed to become a sommelier? A: I’ve worked in restaurants a lot which built the foundation of my career as a sommelier. Sommeliers need to taste as much wine as possible, have an enquiring mind and must be prepared to learn all the time. It’s a profession we spend our lives attempting to master. I hope to inspire more woman to enter the field and urge more establishments to support the growth of female sommeliers. Q: What have you studied (wine wise)? A: I completed the Advanced Garagist winemaking course through the Faculty of Oenology and Viticulture at the Stellenbosch of University; the Front of House Course at the Cape Wine Academy; Certificate Course, Cape Wine Academy; Wine and Spirits Education Trust Level 3 with merit and Cape Wine Academy Diploma. I am also preparing to join the Court of Master Sommeliers. Q: What about wine trends? A: Firstly, I’m so excited that more and more people are drinking Chardonnay. Cab Franc is so in right now. There’s also the controversial natural wine “movement” which has no official 26 Tourism Tattler Trade Journal

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guidelines. Trends will come and go, but a well-made wine will never go out of fashion. Q: What are some of the mistakes people make with wine? A: A common misconception many people have is that in order to enjoy wine you have to know a lot about it. My goal is make wine less intimidating and more accessible to people. Q: Why is matching wine and food important? A: If it grows together it generally goes together, these are the classic pairings we have all grown to know and love but something really interesting happens when we start using our senses. Taking the texture or temperature of the food/and various wine styles into consideration when building a harmonious pairing. I love vertical pairings, almost contrasting the elements between the food and wine will at the same time illuminate the nuances in each. That’s where you’ll stumble upon the most rewarding taste sensations. Q: Are more young people becoming involved in wine? A: Most definitely! Wine shows are now major events on social calendars and more and more wine clubs are starting up. Even boutique wine stores have started arranging pop-up wine tastings outside their stores on weekends. Q: What would you say to someone who wants to become a sommelier or become more familiar with wine? A: A sommelier’s main role is to provide a professional service; to advise/guide the guests through the wine list. Ultimately enhancing the guest’s experience at the restaurant. I like to ask my guests what they enjoy drinking and then I work around that, cultivars, styles of wines and price points. As a sommelier you have to be really good at reading people. It takes a lot of studying, emotional stamina and patience in order to be a great sommelier and great sommeliers teach their colleagues about wine. Humility is key! You can find Taryn on Instagram @taryn_thesomm and Restaurant Mosiac at www.restaurantmosaic.com


LEGAL

SUPPLY CHAIN & LIABILITY What is this so-called ‘supply chain’ referred to in the Consumer Protection Act (CPA) and what are the liability implications? Should suppliers be worried?

‘any loss of or damage to movable or immovable property’; (4) ‘economic loss’ – the latter will be inclusive of e.g. loss of income!

Supply chain is defined in the CPA as follows, so you can see that it is very broad and all encompassing:

• The liability is also joint and several and this means it can be apportioned between all the parties involved in the supply chain.

‘The collectivity of all suppliers who directly or indirectly contribute in turn to the ultimate supply of those goods or services to a consumer, whether as a producer, importer, distributor or retailer of goods, or as a service provide’ However liability is not ‘automatic’ – the claimant will still have to prove either breach of contract or negligence, the latter including the issue of duty of care. The exception is section 61 of the CPA in terms of which such negligence is not required and liability is absolute – your mere involvement/presence in the supply chain is enough! Here is a very brief summary thereof: • It applies to (1) the ‘supply of unsafe goods’; (2) ‘product failure, defect or hazard’; (3) ‘inadequate instructions or warnings provided to the consumer pertaining to any hazard arising from or associated with the use of any goods’ – Scary indeed and bear in mind that the latter will include not only verbal instructions but also stickers/labels on the goods in question and such stickers/labels may well be outdated or so warn away/ faded as to not be legible! • It must be borne in mind that such goods or product can include vehicles hired and many events that fall under the heading ‘adventure tourism’ e.g. white water rafting, canoes, quad bikes (including e.g. defective helmets) and the instructions that accompany these/are issued by the supplier(s) i.e. parties engaged by the travel agent, tour operator or DMC - third party suppliers (‘TPS’) • Even though the travel agent, tour operator or DMC may not have ‘produced’ such goods or product, it can be deemed to fall in that category if, as part of the services they provide, they ‘supply, install or provide access to any goods’ e.g. something as simple as chair in a conference room, food or parking. • The liability is extremely wide and pertains to ‘harm’ defined as including the following: (1) ‘death or injury’; (2) ‘illness’; (3)

• There are exceptions (Section 61 (4)) but it is better not to rely on that only and remember the defendant will still have to prove it. It is therefore imperative for the travel agent, tour operator or DMC to: 1. Have proper up to date T&C; 2. Indemnities; 3. Contracts with TPS which MUST include indemnities and a proper vetting of the TPS reputation & risk management; 4. Have insurance; 5. Bring to the attention of all pax all risks pertaining to the trip of which they are aware, should be aware and in compliance with: • Section 41 (make sure your advertising, T&C, booking form etc is not misleading and clarify an ‘misapprehensions’ immediately); • Section 48 (make sure your advertising, T&C, booking form etc is not misleading or ‘deceptive’); • Section 49 (unusual risks; risks not reasonably expected or that may result in serious injury or death must be explained and drawn to the attention of the pax in plain language, conspicuously and acknowledged by the pax and as early as possible!!) and; • Section 51 (Restates the sections above BUT adds that liability may not exclude or be limited to gross negligence) – this is where the in depth and detailed customer briefing is a very important document. Disclaimer: This article is intended to provide a brief overview of legal matters pertaining to the tourism industry and is not intended as legal advice. © Adv Louis Nel, 'Louis The Lawyer', March 2018.

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MARKETING

All By Myself

Image via Flickr by Roderick Eime

Unpacking the

Solo Travel Trend By Samuel Nassimov. Solo travel is proving to be a popular pursuit amongst those over 50. Over 84 percent of solo travellers are between the ages of 51 and 70, while only 4 percent are under 30.

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Solo travel has been on the rise in recent years and is one of the hottest trends for 2018, with roughly one in four people saying they will travel alone this year. It’s not surprising when you consider the advantages of travelling alone which include: no disagreements over destinations, being able to explore a location at your own pace and, of course, that liberating sense of freedom. This trend is being driven by women, with a survey by Solitair Holidays showing that 72.4% of women are likely to travel alone, compared with just 27.6% of men. Solo Traveller - a website where people who share a passion for traveling alone exchange tips, suggestions and encouragement – recently asked its readers why more women travel alone than men. The responses ranged from women being more adventurous, to women being more comfortable with being on their own. Female readers were also asked why they travel on their own and 46% said freedom, independence and the chance to do what they want when they want; 22% said they weren’t willing to wait around for others; and 15% said to challenge themselves and gain confidence. Solo travel is also proving to be a popular pursuit amongst those over 50, with the Solitair Holidays survey revealing that more than 84% of people who go solo on holiday are between the ages of 51 and 70, with only 4% being under 30.


In terms of where solo travellers like to go, 53% prefer international trips versus only 2% being interested in domestic travel.

MARKETING

Furthermore, according to online booking and management software provider, Trekksoft, the most popular destination to visit is Europe, followed by Mexico, the Caribbean and America. However, inbound tour operators in Africa are beginning to notice an uptake in solo requests coming through from the North American market. This may be due to 82% of solo travellers saying they like exploring the off-beaten path when travelling. Other activities enjoyed include seeing top sights (71%), visiting museums (59%), meeting locals (55%) and meeting other travellers (51%). According to an Australian survey, the biggest concerns for solo travellers are safety (60%), followed by fear of feeling lonely or homesick (14%) and cost of the trip (12%). With South Africa having a favourable exchange rate, coupled with a reputation for the friendliness of its people, it is an ideal solo vacation destination. While safety concerns are valid, being vigilant can go a long way towards helping travellers stay safe. By better understanding solo travellers, we can provide them with a more personalised experience. About the author: Samuel Nassimov is the Founder and Managing Director of Premier Hotels & Resorts. For more information visit www.premierhotels.co.za

Image via Flickr by Roderick Eime

Image via Flickr by The Hamster Factor.

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RISK & INSURANCE

Global Programmes

What Risk Managers & Insurance Buyers Need to Know. By Neil Beaumont . Despite commodity market instability, Africa remains one of the fastest growing regions in the world with South African organisations focusing their growth strategies beyond borders. Yet these new growth strategies are creating complex new risks for organisations which demand sophisticated cross-border insurance solutions. Structuring an efficient, cost-effective insurance programme for cross border risks requires a solid understanding of the local market and evolving regulatory environment. Traditionally, risk managers and insurance buyers have largely focused on whether a local jurisdiction permits insurance from unlicensed insurers to insure local risks – known as non-admitted insurance. As a result of increased capacity and expertise in the local African insurance market, regulators are fast changing their stance on non-admitted insurance coverage as well as exportability of premium and risk out of their respective countries. Many multinational companies are potentially unaware that their global insurance programmes may be subject to regulatory and tax scrutiny in certain jurisdictions, which have the potential to lead to unanticipated reputational and financial repercussions at claims stage. The primary purpose of a global insurance programme is to maximise global insurance capacity and minimise cost, whilst maintaining centralised control over risk management and risk transfer practices. Global insurance programmes offer organisations a consistent global approach to coverage terms, conditions and financial limits while augmenting the ability to consolidate loss information, thus enhancing loss control practices and procedures. They also help to ensure that insurance arrangements meet all necessary local regulatory requirements. Structuring a global insurance programme requires an in-depth understanding of the transactional elements of cross-border insurance, particularly as this relates to local tax and insurance 30 Tourism Tattler Trade Journal

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regulatory requirements. The structure should carefully consider the relevant regulatory regime of each jurisdiction. The reality is that the world is not as interconnected and homogenised from an insurance regulatory perspective as we might wish it to be. With no global standard for insurance regulation or a consistent application of insurance law worldwide, a compliance analysis of local regulations governing insurance is critical. Risk managers and insurance buyers also need to consider that global programmes have evolved beyond the standard compliance question of whether insurance is “admitted or non-admitted� in a given territory. Risk managers and insurance buyers need to be thinking about their multinational risks and where they can best access available, dynamic capacity not only for core lines such as property, general liability, marine or directors and officers but increasingly also specialty lines such as business travel, group personal accident, cyber, environmental liability and stand-alone terrorism protection. Typically, multinational organisations have pursued three different routes when it comes to insuring their multinational risks: 1. The first is to make insurance and risk management the responsibility of each subsidiary in the form of separate, unrelated insurance policies. However, this means that the multinational parent has no control over the process and the quality of cover. It is difficult to administer and inevitably presents unintended coverage gaps which can have significant negative ramifications for both the subsidiary and parent company. In addition, there is a lack of claims service consistency across all subsidiaries and increased premium charges and cost inefficiencies from a global perspective. 2. The second approach is for the multinational company to adopt a single insurance policy worldwide that covers both parent company and all subsidiaries. This approach has many flaws, most significantly compliance with in-country regulations and tax laws. In some


RISK & INSURANCE

instances, claims settlements received from another jurisdiction may be subject to tax as this money is treated as income in the profit and loss account. It is not simply a question of whether a claim will be paid but rather also where a claim will be paid and what the legal implications are. In some country jurisdictions, an insurance settlement from an insurer that is unlicensed to operate in the subsidiary country may not be allowed at all, leading to a complete inability to handle and settle an insurance claim. This is a highly ineffective approach that is fraught with financial and reputational risks.

• Know your corporate structure: how is the business organised globally— is it a partnership, subsidiary, wholly/partially owned etc?

3. The third option, and the most practical and effective solution, is the structuring of a global insurance programme or a controlled master programme that comprises a global network of local policies that are integrated through reinsurance. The programme starts with a global insurer and broker that can reinsure and provide a local insurance policy for the parent company, its subsidiaries and affiliates in each of its operational regions. A global insurance programme provides for compliance with complex regulatory and tax regimes, the ability to pay claims locally and efficiently; control over risk management practices; cost efficiency; consistency of coverage and claims service and enhanced customer outcomes.

• Ancillary agreements: are there non-insurance contracts that may influence what is or is not covered in the insurance contract?

When considering a global insurance programme, it is crucial to align the capabilities of the insurer and local broker, relative to the insured’s global exposure. It is of great importance to investigate whether the capabilities of the insurer and broker will meet expectations, at acceptable service standards and that the people who will be servicing the multinational insurance programme are accessible. Insurance brokers, risk managers and all other buyers of global insurance should work with an insurer and consider whether they also need assistance from an independent financial or tax advisor. In this regard, risk managers and insurance buyers must keep in mind a few key considerations when structuring a global insurance programme:

• Location of claim and payment: where is the claim for the parent/subsidiary best paid and not paid? • Breadth of local policy coverage: are there coverage gaps in local policies even when local policies are deemed compliant and how can the gaps be best addressed?

• Transparent service: can the client/referring broker view/ download local policies, view/download claims and access local contacts, including local brokers, for specialty lines such as cyber, business travel, terrorism, environmental liability, in addition to multinational core lines of business such as property, general liability, marine and directors and officers? Structuring an effective global insurance programme is a task that needs to be undertaken with great care and consideration, in partnership with an experienced insurer that is able to deliver a coordinated approach to managing your risk. The threshold question for any risk manager and insurance buyer to ask is this: “Is your insurer making it easy for you to manage your programme?” Ultimately, it’s people, presence and technology, all together in one seamlessly integrated, transparent package, that make global programmes successful. About the author: Neil Beaumont is the Business Development & Global Accounts Manager at Chubb Insurance South Africa. Chubb is the world’s largest publicly traded property and casualty insurance company with operations in 54 countries. For more information visit www.chubb.com/za

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TECHNOLOGY

The Rise of QR Code in the Travel Industry

In China, QR codes are a well-established tool for enabling payments, website discovery or driving app downloads - a rising trend which is largely due to the rapid adoption of WeChat. However, in Europe and specifically in Africa, QR codes are rarely seen at scale outside of B2B environments, except on a concert ticket or an airline boarding pass. The QR (Quick Response) code is a type of matrix barcode (or twodimensional barcode) that consists of black squares arranged in a square grid on a white background, which can be read by an imaging device such as a camera. The QR code contains information about the item to which it is attached. It has fast readability when compared to standard UPC barcodes, is often used in product tracking, item identification, and document management. In Asia — particularly in China — QR codes are a well-established tool for enabling payments, website discovery or driving app downloads for example. It’s the same story in India, Japan and other countries were QR code usage is notable. However, nobody is on the same level as China, since they are a means to an end for established services due to three elements: the Chinese love of smartphones, the exponential growth of WeChat and the matching growth of mobile payment apps. Chinese consumers are on smartphones at least two hours a day. Internet users in China reached 772 million in 2018* and 752 million of those users (97.5%), access the internet using a mobile device. In other words, the number of internet users in China is more than twice the population of the US (323m) and exceeds the total population of Europe (741m), and most of those individuals are walking around with a smartphone. But, this has barely started: the total number of internet users represents just over half of China’s population of over 1.4 billion.

brands with services to China, enable their customers to transact through WeChat; the user simply scans the brand’s QR code and then follows the brand. If you have not heard of WeChat, download it immediately. WeChat has 889 million active monthly users, with 10 million official accounts. Users spend an average of 66 minutes per day in WeChat, while 83% use WeChat for work and 93% use WhChat Pay for offline purchases**. What is WeChat? Think of WhatsApp, mixed with Facebook and Twitter. And throw in Skype and Facetime. WeChat’s roots extend back to its original hit, the QQ instant-messaging program launched by Tencent. Every time the WeChat App is downloaded onto a mobile phone, so too is an embedded QR code reader which can facilitate a whole range of O2O (Offline to Online) services from scanning posters in subway stations, to joining social networks and for making payments. When a consumer uses WeChat to scan a QR code offline, the business identified by the QR code can continue the conversation with the consumer online. This has ramifications for hotels and retailers welcoming Chinese tourists: nearly all Chinese travel brands – and indeed Western travel brands with services to China – already enable their customers to transact through WeChat. The user simply scans the brand’s QR code and then follows the brand.

China is becoming the largest source market for international travel, overtaking the US in 2014. The income growth and expansion of China’s middle class makes long-haul travel more achievable. The rapid expansion of airlines on the international stage makes the Chinese traveller a more accessible consumer.

To book a flight, simply go to the airline app within WeChat. To receive customer service, again use WeChat to send a voice or text message to an agent in a call centre detailing your request. What about when you arrive into your hotel room? Simply scan the unique QR code in the room and use the in-room app on your mobile phone to control the temperature, the lighting or room service, payable through WeChat Pay.

Already, Chinese travellers are ranked among the top spenders on a per-trip basis. Their preferences are rapidly shifting towards long-haul travel, higher-cost accommodation and up-scale shopping. Cities are the primary attraction for Chinese outbound travellers: nearly 92% of total Chinese outbound travel spending is received by major global cities.

In summary, although the Chinese market appears to be so different to the West, it is just further along. China really gives us a glimpse into the future of travel with its mobile centricity and payment mechanisms built around the QR code.

Apart from QR codes appearing on boarding passes worldwide, the broader use of QR codes within the travel industry continues to be China centric. Nearly all Chinese travel brands, and indeed Western travel

This article is an edited excerpt from an original article titled ‘The Rise of QR Code in China and its Effect on the Travel Industry‘ as published on OpenJawTech.com

*According to the China Internet Network Information Center (CNNIC). **Source: ‘2017 WeChat User Behaviour Report’ via ChinaChannel.co

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TECHNOLOGY

Chatbot Technology in Business Travel

By Euan McNeil. The next-generation of technology in the business travel sector is set to be launched in the second half of 2018 – a chatbot that blends artificial intelligence with the expertise of travel consultants to deliver personalised, relevant information to business travellers’ mobile devices. Known as Sam, this ‘chatbot’ is much more than a mobile app. It is a highly interactive, travel-savvy and anticipatory ‘Smart Assistant for Mobile’ that supports users with all aspects of travel via a conversational interface to answer questions, make recommendations, and perform actions. Sam assists business travellers pre-, during and post trip with everything from itinerary management, air and hotel bookings, flight updates, local city and country information, local weather and restaurant suggestions, to security notifications, ground transportation, driving directions, immigration advice and vaccination status. The more a traveller uses Sam, the more intelligent the chatbot becomes, so that information delivered to the user is even more personalised. The pace of evolution in mobile and smartphone technology is relentless and tech-savvy business travellers are already feeling the urge to use other consumer apps for booking flights and hotels, instead of their TMC. At the same time, the smartphone era is transitioning towards the conversation era, meaning the way consumers communicate with apps is moving to a message-based approach. In fact, by 2020 I predict that consumers will start feeling app fatigue and text or voice-based interfaces will be the new norm for communicating with the web. Sam aggregates all the information a traveller needs in one place at the point when the user needs it. It is fully integrated with booking and expense management systems so that all bookings made via the travel consultants automatically appear in the traveller’s itinerary. The conversational interface and relevance of the messages or questions that Sam exchanges with the user, gives travellers their own ‘personal

assistant’ on the move. Sam is also configured in line with the corporate’s travel guidelines and will prompt the user to take actions that are within policy, thus improving compliance, controlling costs and supporting duty of care. Users of Sam can also call or message their travel consultant at any time for live assistance on the go. How does Sam work? Here’s an example of a message exchange with a business traveller: • On the night before the traveller’s flight to Paris, Sam sends the weather forecast for the destination, which helps the user know what to pack. • On the day of travel, a few hours before the flight, Sam asks if the traveller needs transport to the airport. • Having noted the traveller’s home and work locations, Sam asks where the user will be leaving from and calculates the estimated time to the airport, and cost of travel options. • The user decides that a taxi is the best option and Sam connects him/ her with a company that serves the area – one that is approved by the traveller’s company. • As soon as the traveller lands in Paris, Sam automatically says: “If you have baggage to collect, it will be on carousel number 3.” • Sam offers the user a car to the hotel – the user can opt to accept or decline. • Sam knows that Paris isn’t the user’s home town, so provides a useful city guide with information on getting from the airport, local transport, currency, restaurants, as well as hints on typical prices in Paris, tipping customs and etiquette. • At the end of the following day, the traveller needs to head back to the airport but Sam notices that the traffic is extremely heavy. Sam alerts the traveller to leave for the airport within 30 minutes and offers to call a car straightaway. Alternatively, Sam offers to rearrange the user’s travel plans. • The traveller doesn’t want to leave while the meeting is going well, so asks Sam to discretely search for alternative options. About the author: Euan McNeil is the General Manager at FCM Travel Solutions South Africa, a division of the Flight Centre Travel Group. For more information visit www.za.fcm.travel Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 33


TRANSPORT

Jaguar Charges Ahead With All-Electric

I-Pace

When one thinks of electric powered vehicles, sports car performance does not spring to mind. Well, that’s about to change with the Jaguar I-PACE – an electric vehicle that delivers sustainable sports car performance, nextgeneration artificial intelligence (AI) technology and five-seat SUV practicality to place Jaguar at the forefront of the EV revolution. ELECTRIC With a state-of-the-art 90kWh Lithium-ion battery using 432 pouch cells, the I-PACE delivers a range of 480km (WLTP cycle). Owners will be able to achieve a 0-80 per cent battery charge in just 45-minutes using DC rapid charging (100kW fast-charger). Home charging with an AC wall box (7kW) will achieve the same state of charge in just over ten hours – ideal for overnight charging. A suite of smart range-optimising technologies includes a battery preconditioning system: when plugged in the I-PACE will automatically raise (or lower) the temperature of its battery to maximise range ahead of driving away. PERFORMANCE Two Jaguar-designed electric motors – which feature driveshafts passing through the motors themselves for compactness – are placed at each axle, producing exceptional combined performance of 294kW and 696Nm, and all-wheel-drive, all-surface traction. The high torque density and high-energy efficiency characteristics of the motors deliver sports car performance, launching the I-PACE

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from a standing start to 100 km/h in just 4.8 seconds. The instantaneous performance is matched with exceptional ride comfort and engaging driving dynamics. The bespoke EV aluminium architecture uses advanced riveting and bonding technology to deliver a light, stiff body structure. Together with the structural battery pack, it has a torsional rigidity of 36kNm/degree – the highest of any Jaguar. The battery is placed centrally between the two axles, and as low down as possible with a seal between the housing and the underfloor. This location enables perfect 50:50 weight distribution and a low centre of gravity: together with the advanced double wishbone front and Integral Link rear axle with (optional) air suspension and configurable Adaptive Dynamics, this delivers agile handling and outstanding ride comfort. DESIGN There will be nothing else on the road that looks or drives like the Jaguar I-PACE. It is designed and engineered to take full advantage of its smart electric powertrain and maximise the potential of the packaging benefits it brings. Its sleek, coupe-like silhouette is influenced by the Jaguar C-X75 supercar


TRANSPORT

concept, with a short, low bonnet, aero-enhanced roof design and curved rear screen. This cab-forward design contrasts with its squared-off rear, which helps reduce the drag coefficient to just 0.29Cd. To optimise the balance between cooling and aerodynamics, Active Vanes in the grille open when cooling is required, but close when not needed to redirect air through the integral bonnet scoop, smoothing airflow. Inside, the layout optimises space for passengers while sophisticated materials – including the option of a premium textile Kvadrat interior – and exquisite attention to detail identify this as a true Jaguar.

Utilising an innovative combination of touchscreens, capacitive sensors and tactile physical controls, Touch Pro Duo is intuitive to use. A new EV navigation system assesses the topography of the route to destination and insights from previous journeys, including driving style, to calculate personalised range and charging status with exceptional accuracy for maximum driver confidence. The advanced system uses ‘Smart Settings’ technology – driven by AI algorithms – to identify individual driver preferences, and then tailors the I-PACE’s driving and interior settings accordingly. To ensure owners always have access to the latest infotainment, telematics and battery energy control software, I-PACE will be the first Jaguar to provide software over-the-air – providing seamless updates. The all-electric Jaguar I-PACE will be available in South Africa from 2019. Pricing and specifications will be announced closer to launch. For more information visit www.jaguar.co.za

While a mid-sized SUV, I-PACE’s cab forward design and EV powertrain means interior space comparable to large SUVs. In the rear, legroom is 890mm while, with no transmission tunnel, there’s a useful 10.5-litre central storage compartment. In the rear, tablet and laptop stowage is found beneath the seats, while the rear luggage compartment offers a 656-litre capacity – and 1,453-litres with seats folded flat. CONNECTED-CAR TECHNOLOGY I-PACE introduces the Touch Pro Duo infotainment system to Jaguar. Jan/Feb/Mar Quarter 1 2018 Tourism Tattler Trade Journal 35


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Tourism Tattler Issue 1 2018  

The first issue of TourismTattler’s quarterly magazine features the Magic of Kenya, the Secret Season of South Africa’s Whale Coast, the reh...

Tourism Tattler Issue 1 2018  

The first issue of TourismTattler’s quarterly magazine features the Magic of Kenya, the Secret Season of South Africa’s Whale Coast, the reh...

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