Cape Town Routes Unlimited (CTRU) CEO, Calvyn Gilfellan, has denied that the Western Cape tourism industry is in a post-World Cup crisis as is widely reported following the closures of several hotels recently.

“It is serious but we shouldn’t be alarmist and call it a crisis,” he told a gathering of captains of industry near Paarl. “There are people who are doing well and there are people who are struggling.”

Gilfellan was reacting in particular to a recent claim by Congress of SA Trade Unions (Cosatu) Western Cape Provincial Secretary, Tony Ehrenreich, that the local tourism industry was in crisis because international tourists were being overcharged. Ehrenreich had called for an independent investigation into the state of things and for Government to intervene with protective regulation.

Gilfellan said tourism authorities had expected the current post-World Cup slump because this was what had happened in other host countries such as South Korea and Germany. He claimed the market was just readjusting itself after the event and stressed that Government could not interfere in this “market-led correction of market forces ”. “Obviously, we are concerned about the closures, but Government cannot interfere in the real or perceived crisis.”  He added: “About 12 new airlines have established routes to South Africa in the past 12 months. Why would they invest if we were doing so badly? They know the situation will correct itself.”  Gilfellan called on the industry not to cheapen their product, but to adopt creative ways to get through this time. He advised the industry to be mindful of world events and world economic conditions (such as the weak dollar and strong rand) when doing their marketing and strategic planning. “The industry must wake up to the opportunities of a changing world!” he stressed.

CTRU, for its part, was promoting the Western Cape in the Far East, which he said, had generated 310, 000 additional visitors during the World Cup, resulting in a 63% year-on-year increase in tourism from China and a 38% year-on-year tourism increase from Japan and India.  In September, CTRU will promote the Cape in Brazil; and in October, a Western Cape delegation will visit international trade expos in China, Japan and Singapore. He also questioned if the industry was doing enough to attract the domestic market.