The Joint Marketing Initiative

About the JMI

Last revised June 26 2002

The JMI was launched in April 2001 as a joint initiative by the Province of the Western Cape and the City of Cape Town to focus and align the marketing efforts of the various tourism organizations, investment agencies and other marketing entities such as those serving the events and film sectors, that operate in this part of the world.

The initiative between the two authorities is an effort to bring a single-minded focus to promoting the Western Cape and the City of Cape Town to national and international markets to attract trade, investment and tourism.

Cape Town, which accounts for 89 per cent of the province's population and 73 per cent of economic wealth, is already perceived nationally and internationally as the gateway to the province, South Africa and the African continent. The initiative embraces sectors other than the tourism sector however and thus includes Wesgro, the Cape Film Commission, the Major Events unit and all the regional and local tourism bureau in a broad based marketing strategy to develop a common approach to attracting tourism, promoting exports and attracting investors. Until the creation of the JMI, the provincial, metropolitan and local tourism bureau have been fragmented in their approach, often operating in competition with each other.

The joint project between the Province of the Western Cape and the City of Cape Town's Council marks the start of a new era of co-operation in which both spheres of government will dovetail their economic objectives. The formal announcement of the joint initiative is the start of the first phase of a private-public sector partnership linking the myriad of agencies promoting tourism, trade and investment with a new focus to bring huge benefits not only to Cape Town but to the entire region which includes the Cape West Coast, the Cape Winelands, the Cape Mission Routes and the Cape Whale routes, the Garden Route and the wonders of our increasingly popular areas like the Karoo.

In August this year, Ian Douglas (CEO of Convenco) was appointed as Process Manager of the JMI. Ian has stated that his first priority is to determine a workable and effective marketing and branding strategy that can be delivered within a clearly defined timetable. This will be followed by the actual branding exercise and will be backed up by the appropriate changes to the region's marketing and promotion structures so that these organizations can deliver on the new strategy and approach. The key stakeholders stand ready to co-operate on this important initiative and it is time to get on with a plan that will rapidly deliver on the potential of this region. There is great support for this initiative and the task to hand is now about ongoing communication, implementation and action.

"In the past we have had a rather messy, confusing and sometimes conflicting approach to attracting tourists, trade and investors," says Ian Douglas. "I know the private sector has been frustrated by this over the past few years."

"We want people beyond our borders to identify the province and the city as an efficient, world-class destination with a common commitment to providing excellent service in all areas. It makes perfect economic sense to bring all our efforts under one umbrella with a single marketing approach."

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Background

There has for many years been a widespread concern in the Western Cape's tourism and investment promotion sectors that they are characterized by fragmentation, duplication and a lack of co-ordination. There has been a lack of common vision, strategy and branding, which has frustrated the private sector, which relies on the institutional and infrastructural environment created by public authorities. Above all, this confusing array of agencies, special purpose bodies and partnerships has made it impossible for the region to market itself as a coherent package or brand, or as a clearly identifiable destination for investors, tourists and developers.

The Joint Marketing Initiative will therefore be the result of a comprehensive review of the various marketing functions presently undertaken by the provincial administration and by the City of Cape Town, both of which have economic development responsibilities and are core funders or shareholders of various entities which have marketing roles, such as Wesgro, Cape Town Tourism, Cape Metropolitan Tourism and the Cape Town Film Commission.

The five sectors embraced by the JMI are as follows:

Tourism including:
- Leisure
- MICE (Meetings, incentives, conferences and exhibitions)
- Membership
- Information
- Special projects
Major Events
Film
Investment Promotion (Foreign Direct Investment)
Trade and Export Promotion.

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Challenges

In the wake of the terrorist horror in New York and Washington, it is more important than ever that we should look anew at our marketing strategies and institutions in a world where the character of global tourism is changing profoundly. In the face of cancelled holiday bookings, financially troubled airlines and a tourism market that will no longer tolerate inadequate standards of personal safety and destination security, we are confronted by grave challenges if we are to survive the events of 11 September.

While one has no wish to appear selfishly opportunistic in the aftermath of tragedy, we owe it to the viability of the tourist sector and the jobs it sustains to re-engineer our plans and programmes in order to position the industry at a time when global competitiveness has taken on a new meaning. This must mean that we look very much more seriously at our image as a crime-ridden and dangerous destination, that we improve the quality of service in our hospitality business and that we continue to develop our infrastructure to international standards.

It means, too, that we recognise the disadvantage of being a long-haul destination and make every effort to increase the seat capacity of inward and outward flights and offer a wider range of choice and price to those who will increasingly look to alternative travel opportunities beyond those traditional regions that suddenly appear to be high-risk locations.

From the perspective of the City of Cape Town, the JMI is seen as a key tool to deliver on its vision of an Opportunity City which is globally competitive and business-friendly, which experiences sustainable and rapid economic growth, and where rapid improvements in people's quality of life, levels of living and skills take place. Above all, an opportunity city is one in which the key role-players cooperate through actions taken in partnership with communities and the private sector.

The JMI also presents an opportunity to deliver on one of the city's four top priorities, job creation through tourism. The JMI is also one of the four legs in the City's Economic Development Transformation Programme. The other three are Business Development (translating growth, investment and tourism into real jobs); the business-like management of the city's property assets; and a corporate commitment to ensure that all aspects of the counciląs operations support economic development.

It should be emphasised, however, that neither the JMI nor the creation of a brand identity for the region will be confined to the metropolitan boundaries. Given the wide array of tourism attractions and experiences that lie beyond the city, in the provincial hinterland, it will clearly be essential that we recognise the symbolism and iconography of Cape Town as the gateway to our interior and the entry point towards a broader Western Cape tourism identity.

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Objectives of the JMI

In short, the objectives of the JMI are:

Firstly, to clarify strategic focus in relation to the marketing of tourism and the promotion of trade and investment;
Secondly, to avoid duplication and overlap between spheres of government and the private sector;
Thirdly, to achieve synergy, alignment, rationalisation and leverage for economic growth and development; and
Fourthly, to create a coherent, multi-disciplinary and effective marketing strategy which is driven by customer needs.

It should be specifically stressed that the intention of the JMI is not to create a new "one-size-fits-all" bureaucracy. The intention is to achieve success through alignment of strategies and structures so that no new bureaucracy is created, economies of scale are achieved and value for money is won. Based on a partnership between the public and private sectors, the short-term aim of the JMI is a single-minded, united focus to promote the region and the city. The longer-term aim is economic upliftment, job creation and a better life for all.

The JMI will embrace all those functions at present undertaken by a plethora of diverse agencies involved in investment marketing, export trade and promotion, tourism and leisure, major events, conventions and incentives and film making.

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The JMI Process

The JMI process is currently reviewing the mandates, strategies and business plans of all existing markeking institutions and sectors. The sectors are developing a joint marketing strategy and agreeing prefered institutional options. The process will also kick-start the implementation process which includes facilitating the required legislation, organisational restructuring and budgeting.

All of the above takes place within the context of ongoing interaction and consultation with all relevant marketing stakeholders in the region.

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Developing the brand and sub-brands

In the formulation of the brand, the following seven-step framework is envisaged:

Step 1: Vision & Goals
What would we like our destination to look like in 20 years from now and what targets are we setting in pursuit of our dream?

Step 2: Unique Selling Proposition/Resource Analysis
What are we capable of offering investors, visitors and business people in our area that is better or among the best when compared to our competitors?

Step 3: Market Segmentation & Target Markets
What type and profile of investors, visitors and business people should we aim to attract to our destination?

Step 4: Branding/Positioning
Given what we can offer investors, visitors and business people we would like to attract, what do we want our destination to be known for and how do we project this to the market place?

Step 5: Levers/Capabilities for Success
In order to achieve this, what are the critical requirements of each market segment and what are the things that we need to do exceptionally well to satisfy these requirements?

Step 6: Marketing Mix & Tactics
What products, distribution channels and promotional techniques should be applied to gain the biggest share of the various target markets?

Step 7: Organisational Design/Implementation
What's the most appropriate institutional structure to successfully perform the identified strategies and deliver on the key success factors?

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Organisational design

The following diagram loosely represents the current thinking about how the sectors of the JMI could be organised and could relate to one another:

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Government Policy

Most recently, the need to rationalise the region's myriad marketing activities found expression in the province's White Paper on Sustainable Tourism Development and Promotion, in which it was pointed out that the implementation of any such strategy would require substantial institutional support. It went on to say:

"As a result of the intersectoral nature of tourism, it is of central importance to improve dialogue, coordination and cooperation between relevant national and provincial government agencies and departments, the private sector, civil society and local government. The existing structure of tourism institutions in the province must be re-aligned to support the proposed strategies."

It is thus essential that the activities and branding of the JMI should complement national marketing initiatives.

The Constitution provides that tourism is a concurrent national and provincial legislative competence, which means that national and provincial governments have joint responsibility for the development and marketing of tourism in South Africa.

The Western Cape Government therefore has the power to pass and implement legislation on tourism in the province, but in doing so it must co-operate with the national government and other national tourism institutions, coordinate its actions and legislation with those in the national sphere and, where possible, support national initiatives. Local authorities, which also have a constitutional responsibility for local tourism, are important contributors to tourism success. The Western Cape government has a constitutional duty to coordinate the efforts of local authorities and support and strengthen their tourism capacity.

The current Western Cape Tourism Act of 1997 established the statutory Western Cape Tourism Board and statutory regional and local tourism organisations to conduct tourism marketing and development. However, the present legislation has a number of major shortcomings, including:

too many institutions within different spheres of government within the province are addressing the same key performance areas, resulting in duplication and the fragmentation of resources;
there is confusion among clients concerning the identity and branding of our tourism products;
there is confusion among stakeholders concerning functional responsibilities;
rather than being integrated into Integrated Development Plans at local level, responsibility for development and maintenance of infrastructure and public tourism attractions has been removed from the local government line function and allocated to Regional Tourism Organisations and Local Tourism Boards; and
the Western Cape Tourism Board, the RTOs and the LTBs are fully responsible for tourism development without having the capacity or funding necessary to meet this responsibility.

In order to create an environment that supports development and redresses historical inequalities and discrepancies in tourism, it is necessary to consider tourism within the framework of economic development policy of the province and the City of Cape Town. For this to succeed, there is a manifest need to establish effective coordination mechanisms in respect of provincial, regional and local tourism functions to ensure synergy of effort and resources. This in turn will ensure the various existing tourism authorities complement one another, culminating in a strong and effective tourism effort, which is able to maintain certain minimum standards and provide consumer protection. Importantly, it will create a seamless tourism information system that brings together at provincial level information from local, metropolitan and district levels.

It is generally felt that the fragmentation of tourism marketing activities between local government bodies must be eliminated as far as possible. A focussed and coordinated tourism marketing effort by all role players in the province is necessary. A single and easily identifiable tourism brand for the entire province must be built. This must be done in such a way that clearly defined local identities also grow and flourish in the service of local economic development.

The White Paper proposed that the main object of the proposed tourism marketing body will be the ongoing formulation and implementation of a comprehensive marketing strategy for the Western Cape, and its functions should include:

marketing international tourism to the province in conjunction with South African Tourism;
marketing domestic tourism to the province;
maintaining a system to accredit, monitor and support tourism service providers;
establishing, managing and maintaining convention bureau services;
accrediting the right to display the "i" information sign and the marketing agency logo; and
identifying and promoting new tourism products and packages.

It is important to note that while the provincial cabinet has adopted the Tourism White Paper, the process of negotiations about the ideal final institutional structure has been suspended to enable the development of the Joint Marketing Initiative which encompasses sectors other than tourism, in a single coherent package.

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In conclusion

In conclusion, Richard Busch, the travel editor of National Geographic Traveller wrote of the phenomenal product that we have on offer and that the JMI process strives to market and promote to our customers out there:

"By any standard, the Cape Town region of South Africa is one of the most beautiful and compelling places to visit on the planet... Here, in addition to the city with fascinating historical sites, excellent museums, vibrant markets, and a handsomely restored waterfront... I encountered mountain wilderness, rugged coastlines, sandy beaches, lush gardens, beautiful wine estates, superior hotels and some of the warmest, most welcoming people I have ever met."

Our challenge is to ensure that this image of Cape Town and its hinterland is translated into a single brand, which shapes domestic and foreign perceptions of our region as a desirable place in which to do business, invest and visit. Supporting this brand we aim to create a seamless and consistent world-class marketing initiative, which will enable us to develop a regional, and city economy which experiences sustainable and rapid economic growth, vibrant entrepreneurship and job creation, and increasing per capita income.

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