Current Edition >> Archive Section >> Special Features >> December 2007
Upgrade and grade
Following a visit by the Tourism Grading Council of SA (TGCSA) together with a project team to Bloemfontein on 2 November 2007 to introduce the nationwide drive 2010 Accommodation Sign-Up, the Free State Tourism Authority (FSTA) wishes to stress the necessity for local suppliers to comply with the requirements concerned. These include not only grading their establishments with the TGCSA, but also registering with MATCH as a preferred supplier of accommodation and travel for the 2010 FIFA World Cup in South Africa. These options not only afford excellent marketing opportunities, but at the same time an opportunity for local accommodation suppliers to upgrade their facilities and services to a level of excellence according to international standards.
To be truly competitive in the international tourist market, it is necessary for Free State accommodation suppliers – hotels, guesthouses, lodges, B&Bs, overnighting for backpackers, etc. – to actively take care that their facilities and services are in every respect of top quality and standards. This covers reception areas, bedrooms, bathrooms, lounges, leisure areas, gardens, cuisine, logistical support services and all other hospitality services.
Nothing less than top quality and excellence would be good enough. Seasoned international travellers are used to the best in terms of accommodation facilities in Europe, the Americas, Asia, Australia, etc. and therefore, if the Free State is to capture a fair share of the international market and maintains that, it is a prerequisite that these visitors would experience the same locally.
Then, as regards to pricing, if the facilities and services are up to standard, suppliers could and should charge tariffs which are in accordance, e.g. R500 and up for a double room. It is better to charge a good price for a good product than a low price for a sub-standard product and service. For sure, rip-offs are out, but an excellent product at a related price is the best investment for the long term. “Work smart and getting paid for being smart,” should be the motto.
Grab the opportunity
The opportunities currently being created by the TGCSA and its project team for Free State accommodation suppliers to grade with the Council and also to register with MATCH as a preferred supplier for the 2010 FIFA World Cup in South Africa, need to be seized with both hands. As such it presents an opportunity to owners to lift their establishments in one major step to a higher level, but without being content with that. Establishments need to be continuously upgraded to even higher levels. The size of the establishment is not what matters – it is the quality of what is being offered.
As to the cost of upgrading, it could be pointed out that the Tourism Enterprise Programme (TEP), which is mandated to facilitate the growth and expansion of small and medium-sized enterprises in the tourism industry, offers subsidised support to product owners. Accordingly, the TEP could be approached.
What is also important, is that achievement of a level of excellence, top quality and a high grading should be indefinitely maintained after 2010. The actual FIFA World Cup competition in 2010 in South Africa is only some 40 days long, while tourism is lasting a lifetime and beyond. Therefore the Free State need not only to break into the highly competitive international tourist market, now but should after 2010 remain there and strive to increase its share.
To this end, local establishments should market themselves appropriately, ensuring inter alia that they dispose of professional and sufficient marketing material – brochures, DVDs, etc. – to provide to visitors. What is also imperative, is to have effective exposure on the Internet by way of own and other websites.
Attention to detail
In the upgrading and official grading of their establishments, the FSTA urges accommodation suppliers as well as other hospitality suppliers, such as restaurants, travel operators, etc. to pay meticulous attention to detail.
The way the interior decorating is done, the way the bed is made, soaps in the bathroom, the way food is served on the table, cleanliness to the last detail, the way guests are spoken to and treated - every minutest aspect is of utmost importance. It may well be the difference between failure and success.
Therefore local accommodation suppliers are encouraged to acquaint themselves with the relevant requirements of the TGCSA, as well as with other applicable international norms and standards and to comply accordingly.
The Free State experience
Although the Free State is synergising with the other provinces to market South Africa as one country and tourist destination of choice, especially with a view to 2010, Free Staters need at the same time to be “Proudly Free State”.
The Free State has its own tourist strengths, which would be recognised, developed and marketed. In this respect, it is essential, as stated above, to ensure top quality and excellent product and service, but in the second instance Free Staters need to stamp their own branding on their tourism offerings. Such own features include traditional cultural practices and values, warm hospitality such as “boeregasvryheid”, the openness and tranquillity of the landscape, etc.
Thus, Free Staters should strive to develop not only tourism products of excellence, but also the human touch unique to the province. In so doing, visitors and guests should be treated with a distinctive “Free State experience”, obliging them to return again – and again – to the Free State.
In so doing, the vision could be fulfilled to turn the Free State into the inland tourist destination of choice in South Africa and at the same time developing the tourism industry in the province into the job creator and economic growth generator it is meant to be.
At the quarterly media breakfast hosted by the Mangaung Local Municipality (MLM) this month, the City Manager, Mr. Thabo Manyoni, presented a visionary overview of some building blocks the Local Municipal Council are putting in place with a view to establishing sustainable long term growth within the municipal area. The latter includes Bloemfontein /
Mangaung, Botshabelo and Thaba Nchu.
The building blocks as dealt with by Manyoni are regarded as critical to open up viable avenues for economic, social and business development. They include amongst others the reengineering of human settlements in the area, the development and densification of the N8 activity corridor between Bloemfontein and Maseru, methodical preparations for
Bloemfontein / Mangaung as 2010 host city and the utilisation of Business Process Outsourcing (PBOs) to address infrastructural backlogs.
In all these spheres advanced progress has been made and it is therefore deemed appropriate to enlighten stakeholders and residents accordingly.
Creating sustainable and integrated human settlements
Rapid urbanisation in the Mangaung Local Municipality (MLM) Area has resulted in a proliferation of informal settlements in the area, whilst on the other hand poverty continues to haunt scores of rural people and those living on farms. Therefore the City Council of MLM aims to redress through its Spatial Development Framework (SDF) constraints such as the unequal distribution of resources, the low-density sprawl of residential areas, the lack of socio-economic opportunities in disadvantaged areas and too much emphasis on private transport.
In so doing, the SDF is poised to set off a chain reaction of positive developments throughout society, benefiting mostly the lower economic income echelon. The implementation of the project is to be done through the Inclusionary Housing Policy Framework, which in turn is aligned with provincial and national policy directives.
The following land parcels have been identified to form Phase 1 of the Integrated Human Settlements Strategy: Hillside 85 ha / Brandkop 71 ha / Vista Park 410 ha / Hamilton Shooting Range 560 ha / Cecilia 155 ha / Pellissier 200 sites / 2010 Village 2 000 sites (proposed).
However, the task of providing new infrastructure while maintaining the existing, poses a tremendous challenge as a result of limited annual capital budget allocations. MLM is therefore seeking the support and experience of the private sector to assist in developing and maintaining the city infrastructure in a manner that is socially, economically and environmentally efficient. The financier has the funding muscle, while the local authority has amassed the land and logistics on which development must take place. The financier is then tasked to ensure that the development takes place in accordance with MLM guidelines by engaging developers, professionals and communities.
To this end, the major commercial banks have committed a total amount of R42 billion in support of the implementation of the MLM Integrated Human Settlements Strategy in South Africa, thus enabling municpalities to pro-actively deal with the matter. In so doing, MLM will be partially relieved of the exorbitant costs of providing the much needed bulk infrastructure to the proposed new settlements. The financiers are well poised for the acquisition of the proposed land parcels for development, following of course the format of first establishing bulk infrastructure before putting up housing structures. The vision of both MLM and the financiers is to create settlements that are integrated and would relieve the acute shortage of affordable housing in the city.
MLM has, moreover, been successful in inviting the financiers to consider contributing financially and logistically towards the development of an Infrastructure Master Plan, which is to inform MLM regarding current and future capacities of infrastructure that would be able to carry the increasing population in the medium and long term. The Infrastructure Plan has been estimated to cost R2 million and six weeks to complete and is expected to be submitted to MLM early March 2008.
The proposed land parcels cover a total of 1 512 ha and are to produce 20 500 units, with an estimated capital injection of some R4 billion after completion. The target date for delivering the required amount of houses is December 2008.
The delivery model now on the table ensures that MLM strengthens its role as a developmental local authority, while the financiers still keep their profit motive. Thus in terms of this settlement strategy, MLM will dispose of the land parcels at market price, there is no expenditure due by MLM for overseeing the delivery of the Infrastructure Master plan and the costs for bulk infrastructure will be borne by the financiers as set out.
Potential of BPO&O sector for Bloemfontein / Mangaung
Business Process Outsourcing and Off-shoring (BPO&O) is a world-wide business trend of locating back office processing and call centre operations in areas where labour costs are relatively inexpensive. As a result, the South African government has identified the BPO&O sector as one of the priority sectors in stimulating growth within ASGISA. Already to date some 5 000 jobs within the BPO&O sector in South Africa have been created.
The Department of Trade and Industry (dti), in partnership with the Business Trust, has been mandated to assist South African cities, including Mangaung Local Municipality (MLM), to exploit opportunities emanating from the BPO&O sector. To this end, a government support programme is being rolled out to support initiatives such as: marketing to attract foreign investors, facilitating easy entry into South Africa, skills development through inter alia learnerships and investment incentives for local and foreign investors.
Currently MLM and dti are studying existing and latent BPO&O opportunities in the city. Salient features identified so far include, amongst others, the following:
Mangaung is largely urbanised, with the area reporting excellent matrix marks
Transport and communication are the fastest growing sectors in the local economy
The Gross Geographic Product (GGP) of the city was 4% last year (2006/2007)
The city is a major transit point. If rail traffic is to prosper, the city will undoubtedly prosper
Telkom in Bloemfontein disposes of the modern infrastructure needed to support a major call centre in terms of capacity. As such the city is situated along both national and international optical fiber routes
An adequate supply of government buildings and facilities are available for BPO&O utilization. Besides that, substantial industrial estates (ready-built factories and serviced sites) as well as commercial property, are available in Bloemfontein.
Given this huge potential, MLM in conjunction with dti is currently developing a Value Proposition with a view to articulate the city's comparative advantage in relation to BPO&O and to implement this through an investment action plan.
Launching Mangaung 2010 composite logo
As part of the 2010 agreement with FIFA, the Mangaung Local Council approved its host city composite logo and launched this on 17 November 2007 at the Mangaung Outdoor Sports Centre in Rocklands, Bloemfontein.
The Executive Mayor of MLM, Ms. Gertrude Mothupi, officiated at the event, which was accompanied by amongst others live radio broadcasts by Lesedi FM and Mosupatsela FM, a variety of cultural activities, a soccer match between Free State Legends and Mangaung Veterans and a music extravaganza. Entrance for the general public was free, while sponsors handed out a host of freebies such as T-shirts, caps, water bottles, etc.
The 2010 host city corporate logo is to be utilized by MLM strictly for non-commercial purposes only and may not be used by any commercial enterprise in any way. However, for MLM the composite logo confirms in an officially branded way its 2010 FIFA host city status.
Breaking new ground
MLM is currently engaged in a series of bold initiatives with a view to getting the necessary building blocks in place for sustainable economic and social development by the city in the long run. As such, these initiatives are, as a matter of fact, breaking new ground in planning, managing and developing a city worthy of world class African status.
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