Announcing Tourvest Inbound Operations significant investment in the 2010 Soccer World Cup, company CEO Martin Wiest said that the event had the potential to fundamentally alter the future tourism landscape in South and Southern Africa. Tourvest have committed over R200m to the World Cup, with R150m going to accommodation booking alone. The company, the largest tourism wholesaler in the region, will also spend R32m on transport, R3.2m on a new online booking database, R1.6m on staff training and over R8m on eventing. In all, over 300 000 bed nights have be acquired, 150 vehicles and 500 staff will be used daily and 56 000 passengers catered for. It will be the single largest destination management company undertaking in history.
Speaking as the figures were released, Wiest underscored TIO’s commitment to not only the World Cup, but also the future of the South African tourism industry as well as the positive effect the tournament will have on TIO’s core business of inbound operations and operators, during 2010 and beyond. “We firmly believe in the success of the tournament for the country and also as a business proposition. We have made a commitment not only to the World Cup but to our core brands and operators who will all benefit from the unprecedented focus on the country in the coming months.”
Details of the World Cup investment show that TIO have booked their accommodation – much of it for key official FIFA sponsors secured by the company – at risk. Much of the transport outlay is on coach costs together with its own fleet, and the eventing entails block booking of special venues such as the Victory Theatre, Moyo restaurants as well as the roof top bar at the new Johannesburg Holiday Inn.
The database and training costs specifically are seen as long-term investments in the future growth of the Southern African industry, spurred, Wiest believes, by the kudos of hosting a successful 2010 World Cup.
Less obvious commitments, but no less important, said Wiest, revolve around TIO’s investment in people for the World Cup. TIO have set up a new business unit, TEAM (Tourvest Event Activation Management), whose job it is to manage and operate commercial hospitality operations during the event. The team, headed by Philip Bourdin, was initially seen as a once-off management action model for SWC 2010, but Wiest says it is now touted as an ongoing business unit dedicated to managing large future events, including sports happenings, post 2010. The unit has already won tenders around the upcoming Lions rugby tour, the Confederations Cup, the African Cup of Nations and the Champions Cricket Trophy.
“The Soccer World Cup is South Africa’s chance to rewrite its tourism handbook, and Tourvest Inbound Operations is determined to be at the forefront of that drive. Our substantial investment for 2010 reflects that dynamic optimism,” said Wiest.
Tourvest Inbound Operations CEO Martin Wiest discusses his thoughts on SA’s tourism industry post-2010
As the country’s largest inbound tourism operations company, Tourvest has much at stake with the Soccer World Cup 2010. Daunting though the immediate challenges are, the company’s CEO, Martin Wiest is focusing as much on post-2010 as the tournament itself. His reasoning is simple; 2010 will radically alter the landscape for tourism in Southern Africa and proactive players in the industry should gear up to take advantage now.
Wiest sees two components in the effects of 2010 for South Africa and TIO. The first is the rebranding of destination South Africa 2010 and destination southern Africa; the second is the birth of the global sports event business model.
On the first he is emphatic – 2010 is nothing less than South Africa’s chance to hit the reset button and garner the kind of international kudos that no amount of marketing money can buy. Highlighting the case of Germany after the 2006 World Cup, Wiest believes that a tournament of this size, ostensibly the largest global event in the world, can reshape a country’s image in the eyes of the world. After 2006 the world saw Germany as approachable, flexible, humorous, and a party nation. A successful 2010 will substantially improve South Africa’s standing in the global tourism family, he believes, away from its reputation as a marginal state, and reveal it to be a country with substantial infrastructure, a globally competitive and enviously diverse product, with an above average tourism and hospitality industry.
The positive press could garner kudos for the country for anything up to two or three years, Wiest believes, depending on how well South Africa responds to that positivity. The upshot of the rebranding will be to attract other large events, congresses and conferences as well as the ultimate goal – the 2020 Olympic Games. Incentive travel will increase too, as corporate customers see a viable destination, post 2010.
Wiest emphasised the benefit a vital tourism industry would have on TIO’s core business of inbound operators. The gains from a higher profile for the country, spurred by the World Cup, would accrue to all tourism but fundamentally benefit TIO brands, as they are best placed in the market to take full advantage of the upturn.
“In broad terms, better infrastructure and public transport will ultimately attract more independent travelers too”, said Wiest, secure in the knowledge that in many respects, the country offers First World services.
On the second component, the new sports eventing business model that has arisen out of 2010, Wiest and Tourvest have already acted. TEAM, Tourvest’s sports event business management unit, has since been set up, and Wiest sees it as a dynamic entity for driving and managing future large events in the country. Business around the Lions rugby tour to South Africa, The African Cup of Nations, the Champions Cricket Trophy and the Confederations Cup had been successfully secured. But, he believes, it goes beyond that. He sees the globalisation of the sports event business model as key – “What we did with TEAM was new and innovative and now we need to take it to the world. There’s no reason why we cannot coordinate and manage big sporting events on other continents, through the acquisition of companies and implementation of our TEAM strategies. Already we are bidding for large overseas contracts.”
On the subject of South Africa’s tourism future beyond 2010, Wiest identified a number of key areas that need attention if the industry is to boom.
- Much-needed acceleration in the transformation of the travel industry, still lagging behind other sectors. The key, he suggests, is to create yet more opportunities in an industry uniquely capable of generating jobs at both the low and high end.
- More of South Africa benefiting from tourism and a development of the industry beyond the ‘verandah tourism’ of coastal locations. More travellers into formerly ignored areas is crucial. A key strategy here, he says, it to focus on repeat visitors, who are more likely to strike out and discover new aspects of South Africa a second or third time.
Can’t wait for the world cup.
For the past 3 years I have been promoting South Africa as a holiday and business destination. Through my connections in Tourism, Sport and Travel, I have addressed literally hundreds of professionals in these industries, showing them what South Africa has to offer. One subject came to the forefront time and again: why does S.A. do so little to promote itself? Representatives from other countries regularly comment on the absence of media coverage on the many interesting destinations the country has to offer. Martin Wiest of Tourvest has the infrastructure to promote S.A., but even a company of his size does not deliver. I herewith offer my expertise, connections and services to his company! How can I contact him? All suggestions to: capetown1@live.co.uk
Yours faithfully
Ulrich Dannecker
With due respect Ulrich, you’ve been singing the same old song for years now. It’s not the first time you’re punting your skills on this platform and numerous others. Surely this hasn’t worked, why not approach your targeted companies directly and sell your skills?
I am looking forward to travelling to the spot. No matter how much it costs, I have to see at least a couple of games live on spot!
They invest so much… but will it return to them? Will the investment return from the income?
Now Africa and African well know for hosting the well loved Soccer World Cup this 2010. Beautiful place and loving peoples sure tourism in this country will boom quickly.
I must have to agree, South Africa simply is a beautiful and picturesque place. With places like Cape Town, Johannesburg and many other areas of the country being visually stunning, it's not so hard to imagine why people love this country. Just be careful though, i heard the crime rate is a bit above average.