Western Cape Finance, Economic Development and Tourism MEC, Alan Winde, has commended Cape Town Routes Unlimited (CTRU), the state-owned marketing organisation for the province and Cape Town, for achieving and in some instances exceeding its targets in the past financial year, despite operational and budget constraints.
According to an unqualified report from the Auditor-General, CTRU generated nearly R1m (R929 511) in revenue from a grant of R38,5m received from the provincial government for the year ending March 2010. However, Winde said insufficient funding had resulted in many missed opportunities. The organisation operated on R26m less than in previous years after the City of Cape Town withdrew its financial support in June 2008.
“It was a tough year with immense pressure leading up to the World Cup but we will be able to ride on the platform created for years to come,” he commented. He said tourism performance was the leverage to economic and business development in the province, which currently has a 25% unemployment rate.
Winde reiterated there would be clarity soon on his plans for a single Western Cape economic development agency responsible for tourism promotion as well, among other things.
CTRU CEO, Calvyn Gilfellan, in the organisation’s annual report, called for the following to be addressed urgently:
• A speedy resolution to the protracted institutional calamity and, in particular, the confusion of roles between CTRU as the provincial destination marketing organisation and other local organisations;
• Capitalising on the extraordinary exposure the destination received during the World Cup, particularly events, sports and business tourism;
• A radical shift in the approach to target market selection going for high potential new markets such as Brazil, India, China, Russia, the Middle East and the rest of Africa;
• The establishment of a tourism community where business, labour, government and communities are unified in a tourism fellowship around vision, purpose, meaningful partnership and intent;
• Fully embracing the technological advances in marketing;
• Promoting the principles of a quadruple bottom line reporting standards in the tourism industry by instilling a deep sense of understanding of social responsibility, environmental sensitivity, economic imperative and climate change.
CTRU performance highlights for the year include:
• An estimated R20m worth of business generated at international trade shows;
• 378 media items generated valued at R161m in terms of coverage. Some 244 international trade representatives, 50 media groups, 14 TV crews and 60 VIPs were hosted;
• 218 SMMEs supported;
• 385 000 visitors serviced at Gateway Information Centres;
• R2,4m worth of bookings at Gateway Information Centres;
• 2,3m page views on CTRU’s new website;
• 16 market research reports generated and 4 000 copies distributed;
• Seven Joint Marketing Agreements (JMAs) forged, translating into R17m worth of bookings;
• 28 conference bids worth R768m submitted, of which nine valued at R55m have been won so far;
• 19 events supported with an economic impact of R722,5m
• 2225 trade representatives engaged with;
• 18 international and 20 domestic platforms attended.
CTRU posts positive year-end results despite budget constraints
CTRU posts positive year-end results despite budget constraints
01 Dec 2010 - by Hilka Birns
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