Source: Western Cape Provincial Government
Title: Van Schalkwyk: ACSA Airline Destination Workshop
OPENING ADDRESS BY WESTERN CAPE PREMIER, MARTHINUS VAN SCHALKWYK, SPEAKING AT 'DESTINATION CAPE TOWN', THE AIRPORTS COMPANY SOUTH AFRICA AIRLINE DESTINATION WORKSHOP, Cape Town, 25 September 2003
MAKING THE CAPE A WORLD CLASS DESTINATION
Introduction
New York. Sydney. London. Rio de Janeiro. Rome. Tokyo. Singapore. Paris. Dubai. Each of these names conjures up far more than the image of just a city. These are global destinations - each one capturing the culture, the essence and the experience that make them unique. Each one in turn promises the sights and sounds of their region - whether it is the American East Coast or the outback experience, samba and the rainforests or the cradle of Catholicism and couture. It is time for another name to be permanently added to that list. It is time for Cape Town and the Western Cape to take up their rightful place as global destinations of distinction.
This goal, to establish the Cape as a World Class destination, must be understood in the wider South African and African context. Ours is a province and a people who are fiercely proud to be South African. Ours is a heritage and a culture rooted in the African soil and reared under African sun. The success of the Cape, and of Cape Town is the success of all South Africans because the Cape, as a destination, is the most logical and best-positioned portal to the rest of Southern Africa.
There are a million ways to describe the breathtaking beauty and natural splendour of the Cape, to summarise its unique tourism treasures, its abundance of business and investment opportunities, and to tell the compelling story of its extraordinary economic and tourism growth. The best way though, to explain to our visitors how and why the Western Cape has established itself as one of the most-sought-after international travel destinations, remains for them to see it for themselves. We must find new ways to make the Cape experience more easily accessible and affordable to even greater numbers of visitors.
As the Premier of the Western Cape, it is therefore my privilege and my pleasure to welcome you to "Destination Cape Town", the Airports Company South Africa Airline Destination Workshop. Our Provincial Government is proud to be co-sponsors of this important event - bringing together many of the world's major airlines and our leading stakeholders in the tourism industry. We look forward to the excellent opportunity for dialogue which this event represents - and we expect that the outcome of these two days will be concrete strategies and undertakings to bring more direct flights to the Cape, with more visitors, more often.
Serious Gap in the Market
The recent growth in the number of foreign and overseas visitors to the Western Cape has been unprecedented. Last year alone the 976 000 overseas visitors to the Cape represented an increase of 20% over the previous year - but only 370 000 of these visitors (27%) arrived directly by air. Of the 12 million bed-nights sold to foreign tourists to our province, almost 9 million were to overseas visitors. Cape Town International Airport recorded 8,5% growth in passengers in the year to March 2003. With major new events, attractions and promotions developing on an almost weekly basis, the Cape is clearly a destination in growing demand.
The reality though, is that only two international airlines fly directly to Cape Town throughout the year (which will rise to three by October) - with three airlines serving our province directly during the peak tourism season, and a further 7 who fly to the Cape via another destination. This compares to 52 airlines who offer direct flights to Johannesburg. There is a serious gap in the market, which must be filled - especially in light of the target of our Provincial Government to increase the number of international tourists to the Western Cape to 3 million, in ten years time.
Filling the Seats - Economic Growth Brings Demand
We know that for our airline partners, the key to offering more direct flights more often is filling the first class and business class seats. Business travellers provide the bulk of that market and in the Cape, business is booming. With real GDP growth of 2,8% last year, a 48% year-on-year increase in Western Cape exports, and foreign direct investment of R1,3 billion in 2002 the message has been clearly sent - that the Cape means business.
Our Provincial Government has adopted an approach to economic growth, which we call iKapa eliHlumayo - or the growing and developing Cape. Our Provincial Minister for Finance and Economic Development, Minister Ebrahim Rasool, will talk in more detail about this during his presentation later today, but suffice it to say that our growth prospects and the potential for business from and with the Cape are immense, which translates into an even greater demand for direct flights.
From the side of Government, we are absolutely committed to ensuring that the Cape keeps growing. One way in which we are addressing this is through our targeted support for key growth sectors - like tourism. Another is through the creation of widespread stability in the province. Our NNP/ANC coalition has brought a real voice in government to every community in the Western Cape - and the result has been greater stability and a focus on the delivery of core services to our people. In the longer term this translates into a better business environment, and a destination even more worth visiting and investing in.
The Destination Marketing Organisation (DMO)
So it is clear that the Cape has a great deal in its favour: we have the product - a destination of World Class character and beauty; we have the market - with ever-increasing demand both from business and leisure visitors who wish to travel to our province; we have the support - with a government absolutely committed to growing business and tourism; and now we have the structure to best brand and advertise our destination - the newly established Destination Marketing Organisation (DMO).
Bringing together all of the most important elements, stakeholders and role-players in Western Cape and Cape Town tourism, the DMO and its Advisory Committees will ensure that our product is marketed with one unified and coordinated voice - to boost tourism and our already powerful global brand. It will also provide industries like the airlines with a single point of contact and negotiation to find new ways, in partnership, to grow and prosper.
Conclusion
We know of course that there are still serous challenges - in addition to flight availability - which must be overcome. Two of the biggest challenges which the DMO and our Government are addressing in our desire to meet our tourism growth targets are seasonality and sustained value for money - both of which will be the subject of much wider discussion later in the programme today.
This is the real importance of the Destination Cape Town workshop - bringing together all of our partners and stakeholders to find solutions together. Our Provincial Government is grateful to the Airports Company South Africa for taking this very necessary initiative which will show that Cape Town and the Western Cape have the tourism and business potential, the economic growth, the infrastructure, and attractions to not only justify but necessitate more direct flights to Cape Town.
We believe passionately in the potential of the Western Cape and we invite you to be part of our success.
Enquiries: Rob Spaull, Cell: 083-777-8563
Issued by: Office of the Premier, Western Cape Provincial Government
25 September 2003
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