Tourism Business Africa 09

November 2009 GROWING SUSTAINABLE TOURISM

booming!Pre-2010hosPitality

aFrinorD: Keenly FUnDing in aFriCa

giants:new

angola & nigeria oPPortUnities aroUnD

new DUrban airPort

robertgumedethe new face of tourism

http://www.tourism.gov.za

must reads:4 Frenzy over Africa

Hotel giants serious about investing in Africa.

8 Thinking big about tourism An entrepreneurial spirit, the dream to own a caravan, and a joke were what pushed Robert Gumede into investing in South Africa’s biggest tourism company...

13 Funds for investment Getting creative with finance for hospitality investments is essential in a downturn.

features:16 Made in Africa

Increased focus is being put on small tourism projects that provide an authentically African experience.

22 Boundless Africa From the outset it was an ambitious project incorporating nine countries, seven transfrontier conservation areas and 51 investment projects...

and more:10 Tourism index for SA

The Tourism Business Council of South Africa, First National Bank and Grant Thornton partner to develop SA’s first tourism index

20 King Shaka The new international airport in Durban is being built in the hopes that it will support over 45 million passengers by 2060.

24 Human Capital Investment The absence of service culture in South Africa is finally being addressed.

HICA Supplement:26 Programme

Your guide to the three-day Hospitality Investment Conference Africa.

30 Speaker profiles Who’s who on the podium at HICA

24 4 16

in this issue

An architect’s impression of the International Convention Centre East London. Just one of many developments in South Africa opening in time for the 2010 Fifa World Cup.

is published by Lugan Investments (Pty) Ltd trading as Now Media in association with the Tourism Business Council of South Africa (TBCSA).

P: +27 (0)11 327 4062F: +27 (0)11 327 4094E: [email protected]: www.nowmedia.co.za

Now Media Centre 32 Fricker Rd Illovo Boulevard Illovo, Johannesburg P O Box 55251, Northlands2116, South Africa

PublisherDavid Marsh

editorNatalia [email protected]

ContributorsMichelle ColmanKate Els design and layout Michael Rorke

advertisingCoordinator: Lana Sachs

Printed by:Juka Printing (Pty) Ltd

tbCsaP: +27 (0)12 654 2711/7525F:+27 (0)11 654 7394E: [email protected] W: www.tbcsa.travel

Ceo: Mmatsatsi Marobe [email protected] & Communications: Kagiso Mosue [email protected]

invest in africa

4 Tourism Business Africa 2009

Frenzy over AfricaHotel giants serious about investing in Africa, reports Natalia Thomson…

Luanda’s massive hotel room shortage looks set to be alleviated in 2010.

WHILE it may once have been a high-risk gamble for the maverick investor, today investing in Africa’s hospitality

sector appears to be the rule and no longer the exception.

Global hospitality giants like Rezidor, Accor and Hilton, as well as their regional counterparts, have defined Africa as one of their main business development areas for the future. They are aggressively expanding their portfolios on the continent, while slowing investment elsewhere as the economic downturn continues to bite.

“We have taken a view on Africa generally that in most African capitals, there is a lack of quality suppliers and an unbelievable demand for high-quality international brand hotels in these cities,” explains Andrew McLachlan, Rezidor VP Business Development Africa and Indian Ocean Islands.

In three years, Rezidor has expanded from five hotels on the continent to 34 hotels in 13 countries either open or under development. “So seriously do we take our commitment to Africa that we’ve even opened an African development office in Cape Town,” says McLachlan.

Rezidor sees huge growth opportunities in the African giants of Angola and Nigeria. Also

of interest is Ghana and Mozambique, which McLachlan says will offer quite a lot of mixed business and leisure opportunities.

At least 70% of Accor’s investments, says Serge Hattier, Senior VP Hospitality Development Team: Middle East and Africa, are concentrated in selected emerging markets including Africa.

Morocco and Algeria offer the best development opportunities in North Africa for Accor currently. “In Morocco, we have a comprehensive network of 28 existing hotels and plans underway to establish 18 more hotels. The country has adopted a visionary approach to the development of its tourism sector, thus ensuring a stable framework for hotel developers,” says Hattier.

Meanwhile Algeria, he says, has “tremendous growth potential” in the hotel business sector as it has a population of over 35 million people and the country currently presents a noticeable lack of hotel facilities.

“We have plans in place to build 38 hotels and a total of 6 000 additional rooms in Africa across the Accor brands: Sofitel, Novotel, Ibis and Etap.”

On Hilton’s cards for Africa, says Patrick Fitzgibbon, Senior VP Development: Europe and Africa, are properties in Tanzania, Lagos, Kampala and Ghana, as well as a new Hilton

invest in africa

Cape Town set to start construction in 2010.“We have been in Africa for a very long

time and are excited about opportunities opening up for investment in south, west and east Africa. We have also noted tourism growth along Africa’s east coast, including Kenya, Tanzania, and Mozambique and are considering our options in these areas.”

Regionally, groups such as Southern Sun, Protea and African Sun are leveraging their African expertise and expanding rapidly continent-wide.

Southern Sun currently operates in six countries, including Mozambique, Zambia, Tanzania, Kenya, the Seychelles and Nigeria.

African Sun also recently announced it would be spending US$60m on hotel capacity expansion in the run up to 2010, raising the group’s capacity to 8 500 rooms by 2012.

Protea Hotels, says Marketing Manager Danny Bryer, already has properties in Nigeria, Tanzania, Kenya, Zambia, Uganda, Ghana, Malawi and Namibia.

Bryer says one of the key ingredients to the group’s success in Africa is that it is an African company. “Conducting business in Africa requires an understanding of certain African nuances. We understand this and look at the country’s history and cultural philosophy in addition to the its tourism potential.”

“We are offering an African hotel solution as Africans. We are committed to the continent and are globally competitive hotel operators,” echoes Richard Weilers, Southern Sun Offshore MD.

Weilers says the group will look at new opportunities in the countries in which it is already operating. “This includes brand extensions in terms of opening a four-star deluxe hotel, Garden Court or Stay Easy.”

McLachlan says Rezidor’s strategy is to go into countries with good economic growth and good airlift and enter the market with its core brand, the Radisson Blu. “The focus in Africa is very much on corporate travel. Business travellers are more robust than leisure and if there’s an outbreak, flooding, or some type of catastrophe it may slow the business traveller down, but they’re still going to need to do business. That means business hotels tend to bounce back fairly quickly.”

While Rezidor looks at opportunities to introduce the group’s mid-market brand, Park Inn, to some countries, McLachlan believes for most African countries that are fairly new in their life cycle, a five-star hotel would take precedent. “The hotel essentially becomes an oasis in developing countries. It is where corporate travellers hold meetings. Status is also very important so when we design the hotel, we oversize the lobby to make it a large sociable area.”

The more sophisticated hospitality industry in sub-Saharan Africa, says Hattier, has potential for future growth. “We already have a network of 28 hotels under the Formula 1 and Mercure brands in South Africa and are investigating opportunities for additional Formula 1 hotels as well as establishing the Ibis Novotel and Pullman brands in the country.

“Governments understand the importance of including hotels as part of their infrastructure development plans to boost tourism, making it easier to invest in Africa than in Europe or America.”


turn to page 7

Luanda’s famous Marginal is a landmark in the capital.

Pho

to:

Nat

alia

Th

om

son

Sofitel, our five star hotel brand, is an option that we haven’t excluded either.”

When corporate travellers visit unfamiliar countries, they look for comfort, says Weilers. “The four-star positioning of the Southern Sun brand has a range of services for guests. The full service component of the hotel is currently the most sought after thing, however this does not mean we would not invest in other brands like our Stay Easy brand if these properties are positioned near the right kind of infrastructure, like a mall for example.”

http://www.hica.co.za

invest in africa


How difficult is it?One of the biggest challenges facing investors

in Africa, says Hattier, is the slow pace at which administrative work gets done.

“For this reason, governments are increasingly opening agencies that specialise in helping foreign investors get through the administrative processes.”

African governments are also increasingly encouraging investment by granting tax breaks and offering other incentives. Adds Hattier: “Governments understand the importance of including hotels as part of their infrastructure development plans to boost tourism, making it easier to invest in Africa than in Europe or America.

“Most African countries also grant tax holidays to foreign investors, realising that developing hotels leads to employment opportunities as the hotels need to employ staff and work with local suppliers and other stakeholders.”

McLachlan says a further challenge is finding the right partner. “The contractor on the ground has to have experience in that country. It’s no use hiring a reputable project manager who has no experience with project management in that country.”

Raising finance and finishing off hotels properly can be difficult in Africa. “Sometimes developers run out of money for the finishings, furniture and fixtures. The challenge occasionally is to get the hotel built on time and once it’s built, to keep it running,” says McLachlan.

He also notes that it is hard to outsource things so storage facilities need to be bigger. “You need to procure more efficiently because it can take months for produce to arrive. And staff facilities need to be bigger because you need more staff.”

The biggest challenge is land ownership and the complexities therein, concludes Weilers. “Our current strategy is to look at managing contracts to avoid these challenges.”

Nigeria’s plan for economic expansion based on the tourism sector and foreign direct investment in its extractive industries (oil, gas and mining) has created a gap between supply and demand in the hospitality industry, says McLachlan.

Rezidor is building three new hotels in Nigeria, with its Radisson Blu Hotel due for opening on Victoria Island by mid-2010. The 250-room Radisson Blu will include two restaurants, meeting facilities and leisure areas, including a spa and pool. Also being built are the Radisson Blu Hotel Abuja and the Park Inn Abuja, scheduled to open in 2012.

Protea for its part has consolidated its presence in Nigeria, adding a sixth property in Lagos: the Protea Ikoyi in Westwood. “We’ve seen the biggest growth in Nigeria and are starting to expand into secondary cities like Ibadan, the educational capital of Nigeria, and Waari, a new port.”

In Angola, an additional 16 hotels are

expected to open in Luanda by 2010.According to the Hotel and Tourism

Ministry National Infrastructure Director, Afonso Vita, this will bring an additional 60% capacity and 4 000 beds on stream by the African Cup of Nations event in 2010. This will include two five-star, two four-star and several three-star properties.

Under construction currently are Endiama’s Hotel Diamante, the Sana Luanda Royal Hotel, the Radisson Blu Hotel Luanda, Hotel VIP Grand Luanda and a Protea hotel close to the Luanda International Airport.

The 387-room Intercontinental Casino Hotel and 180-room Três Torres property should open by the end of 2009, while the 370-room Talatona Convention Hotel, along with the Talatona Convention Centre, was expected to be completed by July 2009.

By 2010, an additional 30 new hotels will open throughout the country, including motels, apartment hotels and hotels.

Angola & Nigeria

Future giants:

http://www.accor.com

profile - Robert Gumede


RECOGNISED as a name to be reckoned with in the technology sector, it took the tourism

industry by surprise when Robert Gumede threw his name into the hat for a majority-share purchase of South Africa’s biggest travel and tourism consortium - Tourvest Holdings.

Gumede started his career as a clerk in the civil and criminal court in Nelspruit after studying law at the University of Zululand in KwaZulu Natal. Later he was appointed as state prosecutor where he served the Nelspruit Kabokweni courts.

But the courts were not to be his home forever as Gumede launched successful businesses in the IT, telecommunications, property and facility management and consulting sectors, establishing the Guma Group (formerly Gijima) in 1995.

Having built up this successful ICT company from scratch, Gumede looked at diversifying his portfolio. Around the same time, he was nominated and became the runner-up through a chairman’s casting vote for the South African leg of the World Entrepreneur of the Year 2005; former Imperial Holdings CEO Bill Lynch took first prize.

Chatting after the event, he jokingly said to Lynch: “Now that you’ve been given this award because of your age, you must sell me one of your businesses.”

And that, he says, was the beginning of the discussions around Tourvest.

Gumede says he was drawn by Tourvest’s integrated nature. The company houses several divisions involved in all spheres of the tourism industry, ranging from retail travel to inbound tourism.

“What interested me was the role that Tourvest plays in bringing foreign currency into the country and its creation of jobs. But I am a businessman and I’m not in it for charity. I’m in it to make money.”

Gumede muses nostalgically that tourism has always been very dear to him and while growing up along the N4 Route passing through Nelspruit, strings of cars heading toward Lorenço Marques (now Maputo) were a norm. “I always said that when I was old enough I would buy a caravan to be able to travel on that road.”

Tourvest was delisted after Gumede’s takeover late last year. The reason behind this move, he says, was to encourage “an entrepreneurial flair” among employees, who he describes as a passionate, hard-working team.

The road aheadHis plans for the company

seem infinite and his excitement for acquisition is apparent when I ask about the future. “We

are increasing our investments and are busy looking in Egypt.” Other destinations of interest include Nigeria, Angola and East Africa, areas Gumede describes as having “packaged nodes”. He adds that Nigeria is the company’s launch pad into West Africa.

Not afraid to offer advice for fellow investors looking at development within Southern Africa, he believes transport is one of the most important aspects when looking at investing in a project in the region. He succinctly sums up this view, saying: “Don’t invest where there is none!”

According to Gumede, although some areas have big tourism potential, without access it’s not practical to drive tourism into them. As an example, he refers to the Western and Northern Cape’s Namaqualand flowers. “Air access is especially important.”

Other primary concerns in tourism for Gumede include SA’s service culture, or lack thereof.

“Tourism is about a culture of service. If only our people in South Africa could be as passionate in service as Zimbabweans are.

“In Zimbabwe, a sweeper in a hotel will make you feel comfortable and understand why you are staying over in that hotel and that comes from an appreciation of tourism.”

“I am a businessman and I’m not in it for charity, I’m in it to

make money.”

Thinking BIG about tourismAn entrepreneurial spirit, the dream to own a caravan, and a joke were what pushed Robert Gumede into investing in South Africa’s biggest tourism company...words: Kate Els

profile - Robert Gumede


Positive investment climate in Africa pre-2010 World Cup

Gumede describes the current investment climate in Africa as very positive, saying investors should be quick to leverage the potential that the 2010 FIFA World Cup offers. “The Tourvest deal happened at the right time. I was not in tourism when the country was not afforded the opportunity in 2006 and would have been just a spectator not helping and actually participating,” he says.

Lauding the efforts by South Africa’s standalone tourism ministry to work with the country’s competitor destinations, Gumede says: “I think that Marthinus van Schalkwyk is really becoming a ‘voortrekker’. Just look at the agreement that he has signed with Kenya.”

Various organisations getting involved in the sector also bode well for the future of tourism in Africa.

In this list he includes both the Industrial Development Corporation and the Development Bank of Southern Africa.

He says these organisations’ decision to fund SMMEs is a step in the right direction as he believes these are the future of tourism.

“There is a big focus on small businesses and just like the small retail spaza shops, we need to create ‘spaza shops’ for tourism.

“Tourism is not about having bums in beds; it’s not about hotels; it’s not about selling curios. It’s about the whole experience.”

“In Zimbabwe, a sweeper in a hotel will make you feel comfortable and understand why you are staying over in that hotel and that comes from an appreciation of tourism.”

Pho

to:

Tija

na

Hu

ysam

en

tourism index for sa


Mmatšatši Marobe

The Tourism Business Council of South Africa, First National Bank and Grant Thornton partner to develop a tourism index…

TourismIndex

for SA

A NEW tool aimed at “mainstreaming” travel and tourism as a viable economic and business sector is to be launched soon.

According to Mmatšatši Marobe, Tourism Business Council of South Africa (TBCSA) CEO, the index will be used to increase the sector’s understanding amongst the public and to lobby government on various issues by indicting the health and status of the tourism industry.

It is envisaged that the tourism business index will include overarching economic trends at a global, regional and national level, as well as specific trends within the South African tourism industry and its sub-sectors. It is also proposed that the index will start small and then be developed and expanded over time from the established base.

“The Tourism Business Index will combine information from various sources in the industry into a simple, reliable and understandable index in order to ensure that it is credible” says Martin Jansen van Vuuren, director of Grant Thornton Strategic Solutions.

Jansen van Vuuren indicated that the index will have two main components. Firstly, a historical index will be compiled based on information and data obtained from a cross section of tourism industry players and other available tourism industry data. This cross section of industry players will be drawn from the membership base of TBCSA and is planned to include contributors from, amongst others, tour operators, accommodation establishments, convention centres, academic institutions, car rental companies, airline representatives, coach operators and entities that conduct tourism surveys such as SA Tourism, provincial tourism authorities and


tourism index for sa

Statistics South Africa.The information gained from these sources

will be weighted and combined in an index that tracks the fluctuation in the tourism industry. Choosing the correct base year for the index will be an important decision in the development of the Tourism Business Index as the incorrect base year will provide a skewed picture of the growth and development of the industry.

The second component of the Tourism Business Index is the forecast index, which will be compiled based on the forecasts obtained from the same cross section of tourism industry players that are contributing to the historical forecast. To interrogate and debate the information obtained it is also proposed that a panel of experts convene on a quarterly basis to provide input in a forum discussion. During this forum discussion the panel of experts will debate the various international and domestic trends that have been identified in the tourism industry and the impact that they will have on the South African tourism industry. From the debate, short- to medium-term forecasts for the tourism industry will be identified and incorporated into the tourism index.

The historical and forecast index will be compiled by combining the insight and experience of the members of TBCSA with the economic and tourism knowledge of FNB and Grant Thornton, resulting in a powerful tool for the tourism industry.

In order to provide the tourism industry with timeous market intelligence it is proposed that the Tourism Business Index be published on a quarterly basis. To ensure that the tourism industry has access to the tourism business index it is proposed that that the index be distributed free of charge, electronically and as widely as possible. “The aim of the tourism business index is to assist the industry and through a wide distribution we hope to convince a multitude of industry stakeholders to contribute to the tourism business index. The more contributors we include, the more valuable and accurate the tourism business index would be,” says Marobe.

It is also proposed that an annual forum be held with all the contributors to the Tourism Business Index to discuss the health and state of the tourism industry. All contributors will be invited to the forum to discuss recent trends in the tourism industry, the impact that these trends will have on the tourism industry and the future trends in the tourism industry.

The tourism business index will follow the example of the World Tourism Organization (UNWTO) that publishes a tourism barometer three times a year, in January, June and October. The UNWTO barometer reports statistics on global and regional arrivals and receipts. In addition, the UNWTO barometer includes an evaluation by a panel of experts of the performance of the global tourism industry in the period/year preceding the

publication and the prospects for the performance of the industry in the coming period/year, which takes the form of an index.

By developing the Tourism Business Index for South Africa, industry will be provided with a powerful tool to assist in not only tracking the health and performance of the industry, but also to assist in the planning by the industry through the forecast index. This index will be based on statistical analysis and will not merely be a confidence index.

The TBCSA, FNB and Grant Thornton are aiming to launch the Tourism Business Index in the New Year. In the interim the parties are raising the awareness of the initiative in order to elicit support from the tourism industry.

Marobe says: “If the Tourism Business Index can be compiled with the support of numerous and a wide range of tourism enterprises, it will become the benchmark for the tourism industry with which government can be convinced that the tourism industry is worthy of support. We have been saying for a long time that the tourism industry is an important industry in the South African economy and that it is contributing to economic growth. We have, however, not been able to definitively show that the industry has been growing or even how it has been affected by the global economic situation. We need to support this initiative in order to give us the tools required to lobby government for greater support for our industry.”

http://www.springbokatlas.com

http://www.wilderness-safaris.com

http://www.rezidor.com

creative investment


IN the current global economic downturn, the flow of funds for hospitality investments has slowed to a trickle worldwide.

In Southern Africa, however, liquidity still exists, particularly for established players. Upgrades and renovation projects with proven revenue streams and low gearing are continuing to access finance, but for new entrants and new-builds the situation is far more challenging.

Discussion with traditional funding sources reveals there is still a considerable amount of development on the go. At the time of writing, the tourism division of First National Bank (FNB) had approved funding of R110m in the previous two weeks, and was reviewing 15 major projects of R30m and up. Between April and mid-September 2009, the Industrial Development Corporation (IDC) had approved nine loans at a total cost of R129m, all in the accommodation sector. The Development Bank of Southern Africa (DBSA) was involved in projects in the Seychelles and South Africa, and was weighing up an Angolan development.

Curbing costsBut the credit crunch has

pinpointed an important issue – prospective hospitality developers will have to curb flamboyance and opt for conservative plans if they are to succeed in obtaining finance.

Referring in particular to South Africa, where developers have tended to over-capitalise, Joop Demes, CEO of Pam Golding Hospitality, explains: “There is too much emotion in hotel developments with not enough attention paid to the best possible operator for the location or sustainable demand and supply in terms of competition.

“In addition, despite increasing costs of land and construction, South African developers have not modified their desire for space – for example, they continue to build mid-market rooms at around 26sqm to 28sqm while in Europe the average is 17sqm to 21sqm.”

Spiralling building costs have impacted hospitality developments around the world and reputedly doubled between 2004 and 2008. Demes predicts the days of five-star hotel rooms built at a cost of R3m are over.

If funding is to be sourced, he states, the per-key cost for top-end rooms will have to be reduced to the level of R2m.

More realistic mid-market parameters would be R800 000 to R900 000, with budget rooms coming in at R425 000 to R450 000. Anything above this will invariably not produce the required returns and will make funding extremely difficult, if not impossible, he comments.

Funds for investmentGetting creative with finance for hospitality investments is essential in a downturn, reports Michelle Colman...

“The days of five-star hotel rooms built at a cost of R3m are over.”

turn to page 14

funds for investment


“The rigour applied to cost per key ratios by choice such as City Lodge and Formula 1 (pictured right) should be more widely practised.”

Kate Rivett-Carnac

Management companiesThe participation of an operating or

management company in a development is often a deciding factor in clinching finance. De Bruin says: “Banks provide funding on a tenuous basis of projected cash flows. The involvement of a management company with a brand and a proven track record in filling beds indicates a means of repaying loans.”

But in recent years, management companies have tended to adopt asset-light strategies, reducing capital investment by divesting themselves of equity and shareholdings, leaving owners to bear all the risk. Such policies mitigate against drawing management companies in too tightly and do not prevent their withdrawal in an economic downturn.

Philippe Trapp of Accor Hospitality’s Southern, Eastern Africa & Indian Ocean division, which manages in the region of 100 African properties, puts the case for management companies: “We have observed recently a number of projects being cancelled or put on hold mainly due to the scarcity of funds available (more importantly in oil-related economies) or to the lack of credit availability, or the increase in the cost of such credits. As far as Accor is concerned we have not lost any contracts, but some projects have been delayed for six to 12 months.”

De Bruin comments: “FNB is working hard to build relationships of trust with managing companies and engage with the industry so that an acceptable and legally-binding agreement can be created in an innovative way.” Historically that agreement has been a turnover lease that, while securing a higher level of commitment from a management company, involves a lower share of turnover for property owners. Local hotel management companies still utilise lease agreements widely, but they raise little enthusiasm from foreign operators.

Kate Rivett-Carnac, tourism specialist at the DBSA agrees, saying the rigour applied to cost-per-key ratios by chains such as City Lodge and Formula 1 should be more widely practised. Pieter de Bruin, head of tourism at FNB, suggests sharper control of construction costs can also be achieved by downscaling on public areas. Hotels should also be built as unspecialised structures, so that they can be converted for alternative use should they fail.

Demes further emphasises the need for “proper” scientific feasibility studies in which a realistic approach to three considerations are critical: configuration, capital costs and choice of operator or brand.

funds for investment


Mbuyazwe Magagula

Recession bitesThe recession has affected traditional

funding institutions in various ways. The IDC has had to offer substantial support to stressed businesses already on its client list, thus restricting its capacity for new business. According to Mbuyazwe Magagula of the corporation’s Tourism Business Unit, an average of only one of the 15 or so applications received monthly is successful. An improving balance sheet has brought some relief, however, and where there is a strong case, exceeding capital limits may be possible. The IDC is still willing to risk taking equity where additional funding from other sources is a possibility, but trying to “crowd the commercial banks in” often presents a bottleneck.

FNB, according to De Bruin, “doesn’t open the tap fully in good times, but doesn’t close it either in bad times.” The bank has always publicised flexible repayment structures as a selling point, taking tourism’s seasonality into account, with lower payments due in valley periods and higher ones in the peaks. “We are now looking at longer periods in which only the interest on the loan is serviced and more adaptability in repayment schemes is built in,” he states.

Traditionally targeting tourism projects from R20m up in South Africa and US$10m up in Southern Africa where there are fewer developments, coupled with a general proviso of 50% equity, the DBSA reports no slowdown in funding approvals. The bank is, however, factoring in longer grace periods.

Rivett-Carnac says: “Certain properties approved in 2005-2007, which have opened in the course of the recession, are not performing in line with expectations.”

In spite of these pressures, none of the three funders above have changed their criteria for granting loans, to which they have always taken a conservative approach. Broadly speaking these involve well researched feasibility studies, business plans on which owners and operators can confidently deliver, the right development cost, sustainability, having the necessary formalities – such as licensing – in place, and a route to market.

AfrinordReduced support

to the hotel industry by traditional financial institutions has strengthened the position of the Afrinord fund, backed by four Scandinavian development funds and hotel management and development company Rezidor. The fund was motivated by a similar model used

by Rezidor with success in Russia.Andrew McLachlan, who heads Rezidor’s

Africa Business Development Office in Cape Town, explains: “When Rezidor decided to take a real run at Africa, we looked at the potential challenges we would face and saw that raising finance might prove an issue. We had worked with the four Scandinavian development funds on a case-by-case basis and decided to pull everyone in together.”

The five shareholders, each holding 20% in the resultant Afrinord fund, are Rezidor and the government-backed development funds of Norway, Sweden, Denmark and Finland. The development funds’ enthusiasm for the hospitality industry rests in its ability to create jobs with relatively few barriers, accompanied by rapid transfer of skills.

Afrinord provides mezzanine or bridging finance to either 20% of the total cost of the property, or to a maximum of €7m. McLachlan says: “Africa has many developments that don’t quite reach completion or are not finished off to standard. Construction time delays cause owners to run out of money. Typically we would finance the last 20% of hotel projects.”

Often-onerous loan terms in Africa, where interest rates of 18-26% and short repayment terms of three years are not unheard of, make Afrinord with its seven-year repayment term an attractive option. The fund will also look at refinancing. Finance is dependent on the involvement of Rezidor as hotel management company.

Since Afrinord kicked off in 2006, a hotel in Bamako, Mali, is up and running. A project in Addis Ababa in Ethiopia has been signed off and negotiations on three further developments are advanced. In the Ethiopian project, two of the development funds involved in Afrinord have become equity partners in their own right. The African hotels are being developed under two Rezidor brands, the five-star Radisson Blu and the mid-market Park Inn.

The success of the €35m fund and the entry it has offered Rezidor into the African market bodes well for its possible extension.

AlternativesWhile traditional sources of finance

continue to predominate, alternatives are emerging. European-based development finance institutions (DFIs) such as the Scandinavian-backed Afrinord programme (see sidebar), or the French government–owned Proparco, have strong presences in Africa. Their criteria may preclude countries where GDP is above stipulated limits or where government is not involved in some form.

Demes states that a number of property funds, somewhat challenged by conditions in the retail and other industries, are now taking notice of the hospitality industry.

Smaller entrepreneurs can seek private equity but there are few, if any, formal channels to this sector. More positively, the Department of Trade & Industry (DTI) is approving many incentive cash grants to projects outside of the main metropolitan areas (or in economically marginalised parts of metropoles) under its Tourism Support Programme (TSP). Projects of R5m to R200m may qualify for grants of up to 30% (capped at a maximum of R30m) of total qualifying investment cost, payable over two years.

Andrew McLachlan

“FNB doesn’t open the tap fully in good times, but doesn’t close it either in bad times.”


unique hospitality investments

Increased focus is being put on small tourism projects that provide an authentically African experience.

words: Kate Els

“All materials are sourced locally and produced by local artisans.”

turn to page 18

IT was French author, Jules Verne, who said: “Travel enables us to enrich our lives with new experiences, to enjoy and to be educated, to learn respect for foreign cultures, to establish

relationships, and above all to contribute to international cooperation and peace throughout the world.”

While Verne may have passed away over a century ago, he would understand the fundamentals that the following accommodation suppliers set up shop, offering experiences for their guests, rather than just clean sheets and a hot shower.

Township flavourAs Africa becomes increasingly recognised

for its authentic cuisine, Vuvuzela Eat & Sleep is offering its guests a distinctly traditional township experience.

An initiative of the Metsweding Entrepreneurial Development Centre (MEDC) based in Cullinan in Gauteng, Vuvuzela Eat & Sleep provides guests the chance to cook and sleep in rooms modelled on real township homes.

Portia Paledi, MEDC project manager, says the

initiative is based on current South African township experiences, but takes the concept one step further by really involving guests.

“The idea was born several years ago during a visit to a local B&B in Khayelitsha. Since then, the model has been refined substantially to now offer visitors not only the opportunity to taste traditional food but, for the first time ever in South Africa, to make it themselves. Guests will be able to learn the intricacies involved in selecting ingredients and preparing and serving authentic African cuisine.”

Accommodation includes four rooms decorated in a township theme. En-suite bathrooms feature zinc basins and corrugated iron-look showers, while the beds come complete with ‘ingubo’, the Zulu word for blanket. All materials were sourced locally and décor items were specifically produced for the venue by local artisans.

Local chefs have lent their exceptional talent and expertise to the Vuvuzela Eat & Sleep menu, which day guests can either sit down and enjoy or try their hand at cooking in the Vuvuzela cook-offs.

The project is a pilot initiative that will be rolled out to other areas such as Soweto and Mamelodi in the future.

Made in Africa

http://www.resysta.co.za

unique hospitality investments


“Each room at the Daddy Long Legs Art Hotel (pictured above) is decorated by an artist, poet, photographer, designer or musician. The hotel describes its guest experience as an ‘interactive art exhibition’.”

Long Street cultureLocated on Long Street in

Cape Town, the Daddy Long Legs Art Hotel is perhaps as abstract as the melting pot of cultures that populate the Mother City’s urban environment. Each room of this 13-room boutique hotel is decorated by an artist, poet, photographer, designer or musician. The hotel describes its guest experience as an “interactive art exhibition”.

The artists were afforded complete freedom to interpret the space as they pleased, which resulted in hotel rooms that are an adventurous and humorous representation of Cape Town.

Offering this quirky respite from sterile hotel rooms has lead on to another concept by owners, Jody Aufrichtig and Nicholas Ferguson. The Airstream Trailer Park offers its guests a mash-up experience between contemporary African culture and an American icon, the airstream trailer.

Perched atop the Grand Daddy Hotel, the seven trailers have also been individually decorated and are different artists’ impressions of what life in an airstream trailer park would be like. These silver lodgings are all surrounded by a

tidy garden and come complete with a US Postal Service mailbox.

Xhosa celebrationsEstablished just outside of

Oudtshoorn in the Bongolethu Township, Ma Betty’s Cultural Experience is an authentic look at the Xhosa lifestyle and allows its guests to get involved and celebrate with locals.

Guests will be entertained by a traditional story teller as well as a troupe of Xhosa dancers. The village also offers accommodation and traditional meals. Accommodation is very basic, in keeping with the theme of the village, with guests made comfortable on grass mats in a traditional hut.

For visiting honeymoon guests and couples, cultural wedding ceremonies can be arranged. Symbolic, these ceremonies are a way to welcome guests into the village, says Ma Betty.

A purist for the Xhosa culture, Ma Betty works with a local women’s group to involve the community in the benefits of tourism. These women help with the cooking at the village and are involved with guest entertainment.

The Airstream Trailer Park offers contemporary African culture crossed with an American icon, the airstream trailer.

http://www.africansunhotels.com


king shaka airport

AS with any major, new infrastructure development, there are bound to be investors circling looking for their opportunity to

get involved. The new airport going up in northern KwaZulu Natal at La Mercy will prove to be no exception.

With the large number of passengers expected to pass through the airport over the coming years, it is a natural progression that surrounding development will be needed to cater for travellers, especially over the period of the 2010 FIFA World Cup.

The airport, yet to be named, has shown promising development, with Airports Company South Africa (ACSA) reporting in July this year that the multi-billion rand project is now sitting at 72% completion with most of the civil and building works well on track. It is expected to open just prior to the soccer tournament and expects to handle a large number of fans coming into the country for that reason.

Emirates Airline has shown its support for the project by announcing that it will operate to to the destination from its hub in Dubai.

Although ACSA do not deal directly with investors who are interested in the surrounds, there are definite ‘development links’ due to the new airport.

Colin Naidoo, Manager: Communications and Brand, says: “The airport is seen as a catalyst for potential development but ACSA’s core business is to create world class airport infrastructure,” added Naidoo.

Together with Dube Tradeport, ACSA does plan on developing what Colin refers to as a Support Zone.

This Support Zone, comprising a number of nodes, will meet expected demand for facilities associated with major airports, such as nearby offices, business services and tourist transit accommodation.

Phase one of the development will see the Support Zone comprising a secure world-class 24-hour business and trade environment, inclusive of business parks and offices, hotels and specialist conference or meeting facilities, supportive retail facilities and the development of international trade centres.

The tenders for retail agents were opened in February this year and were awarded in August. For those investments that may interest those in the hospitality industry, ACSA will engage in a public tender process says Naidoo.

Mike Lambert, COO of the Three Cities Group, says that it has looked into developing accommodation in the surrounding area, the first of which is due to open early next year.

The Ballito Ambassador will have 50 rooms says Lambert, who hints at further interest in the area: “We are also in discussions with two more potential hotel operations close to the airport.”

Lambert agrees that the area has tourism potential because of its proximity to the coastline and neighbouring holiday towns of Ballito and Westbrook.

The City Lodge Group just opened its 125-room Road Lodge Umhlanga Ridge also in northern KwaZulu Natal, but has not announced any plans for a hotel nearer to the actual airport.

Says Spokesperson Angus McMillan: “In general, airports are seen as an important potential location for City Lodge Group hotels, but every location has to meet stringent selection criteria, taking a 20-30 year view into account.”

Protea Hotels has also recently opened the Protea Hotel Umhlanga Ridge, a 205-room property with conference facilities.

Danny Bryer, Group Marketing & Revenue Director, says that the airport may help in facilitating a greater influx of tourists into the province if airlines are given landing rights for the destination. “The strategic location of the new airport can play a role in the accessibility of tourist attractions in this region.”

The new international airport in Durban is being built in the hopes that it will support over 45 million passengers by 2060...

Catalystfor a

tourism node?

http://www.satib.co.za


investors without borders

LAUNCHED almost 10 years ago, the first transfrontier conservation area (TFCA), the Kgalagadi Transfrontier

Park, was a symbol of a dynamic approach to conservation in Southern Africa. It signified that countries had realised that ecological management across an area could not be split by their borders.

Opened by the Peace Parks Foundation in 2000, a programme supported by Nelson Mandela, the park was the beginning of the road for a campaign that would become known as Boundless Southern Africa.

Boundless Southern Africa, an investment initiative developed by nine Southern African countries, catalogues 51 investment opportunities worth R785m that represent over 5 000 beds ranging from rustic accommodation to five-star properties.

These opportunities cover a wide range of investments, including accommodation establishments, conference centres, golf estates and even a ski resort, that span Botswana, Lesotho, Mozambique,

Swaziland, Zambia, Zimbabwe, Angola and South Africa.

Deborah Kahatano, Programme Manager for Boundless Southern Africa, says the programme has been well received by investors since its launch a year ago, especially from those investors based in Africa. She adds that the programme has benefited from the political support of the nine countries involved, further elevating the project’s profile.

“The investment opportunities have been researched,” she says. “The project is trying to address the lack of interest shown by investors to invest in the TFCAs. We have discovered two key reasons for this lack of interest: investors are not aware of the value of the TFCAs and there are no bankable investments available.”

Out of the 51 bankable projects released by Boundless Southern Africa, three have been taken up by investors.

Kahatano notes although the response is slower than expected, there are still many enquiries coming through from interested parties. Those projects snatched

From the outset it was an ambitious project incorporating nine countries,

seven transfrontier conservation areas and 51 investment projects,

reports Kate Els…

borders

Investorswithout

Pho

to: M

ike

Rum

ble

FB

Imag

inee

rin

g

investors without borders


up include one each in South Africa, Lesotho and Botswana. “We do however realise it is a credit crunch but expect the projects to gain momentum soon,” she says.

There have also been numerous projects to generate publicity for the project including an expedition by intrepid explorer, Kingsley Holgate. His team travelled through the nine SADC countries, seven TFCAs and 30 national parks and nature reserves.

The Boundless Southern Africa expedition was a huge success as it received both national and international media coverage. The expedition team also hosted about five community events in each TFCA.

Kahatano says that the outright purpose of the expedition was to raise awareness about TFCAs firstly. “Tourists are heading to these areas anyway. They contain major tourist attractions such as the Victoria Falls, the Fish River Canyon and Chobe National Park among others. Now we need to attract the investors.”

And the project has made it extremely easy for investors to choose which projects they would be interested in. Boundless Southern Africa offers investors an almost ‘packaged deal’ whereby it shows off researched projects that have a sustainable business model.

Boundless Southern Africa’s website (www.boundlesssa.com) allows users to look at the individual projects as well as surrounding tourist attractions. A high-level investigation into the market demand and financial feasibility study of the proposed investment opportunities within the TFCAs was conducted by Grant Thornton.

A technical DVD is available for interested parties. It contains a market summary (indicating market attractiveness and market potential), demand projections (including occupancy and average room rates) and financial projections (including income and cash flow statements and balance sheets for a 10-year period) for the various investment opportunities. It also has a market report on the tourism potential of the respective TFCAs based on Grant Thornton’s knowledge and experience of the industry and market research conducted among inbound tour operators.

Not all the projects are the ‘start from scratch’ kind though. Some of the projects are for the redevelopment of existing attractions or accommodation says Kahatano, pointing out the example of a Maloti Drakensberg TFCA that has been taken up by an investor. “The project is for a lodge that was already there, it has potential, but it’s a

bit rundown and is being renovated.”Boundless Southern Africa will

be presenting a small variety of its projects at the Hospitality Investment Conference from Swaziland, Lesotho and Zimbabwe.

Kahatano says these areas were chosen for various reasons. “We chose to showcase the Swaziland and Lesotho projects just because there are many in these areas.

“The areas are also very underdeveloped for tourists and we would like to see that change.”

She concludes that projects from Zimbabwe will be showcased because there has been increased focus on the country since the formation of a coalition government last year and tourism is on the increase for the country, which previously was an extremely popular destination for visiting tourists.

Boundless Southern Africa, an investment initiative developed by nine Southern African countries, catalogues

51 investment opportunities worth

R785m that represent over 5 000 beds

ranging from rustic accommodation to five-star properties.

Kingsley Holgate and his team travelled through the nine TFCAs and 30 national parks and nature reserves. The expedition team also hosted community events in each TFCA.

Pho

to: M

ike

Rum

ble

FB

Imag

inee

rin

g

Pho

to: M

ike

Rum

ble

FB

Imag

inee

rin

gPh

oto

: M

ike

Rum

ble

FB

Imag

inee

rin

g


human capital investment

We must create memories for our 2010 visItors Photo: Tijana Huysamen at Moyo Melrose Arch

I RECENTLY heard service in Africa described by a British citizen as “quaint.” The statement indicates a level of tolerance, but also a rather limited

expectation. It is also perhaps an unfair generalisation,

for there are African countries that enjoy excellent reputations for service ethic, the island of Mauritius being an example. There’s a tendency to attribute this service inequality rather sweepingly as a difference in culture. Perhaps it would be better understood as an absence of service culture, which can, surely, be developed.

In South Africa where the 2010 Fifa World Cup is a few months away, concern about low levels of service excellence has prompted the Department of Tourism and the Tourism Business Council of South Africa (TBCSA) to embark on a public-private partnership to remedy the situation. They have established the Tourism Service Excellence Initiative (TSEI), aimed at changing behaviours.

Phase 1, involving an audit of service standards throughout the country, has already commenced. The TSEI has roped in no less than the Disney Institute to undertake this study. With Disney resorts representing the pinnacle of good service worldwide, expectations that the research team will pinpoint barriers and enablers to better service are high.

The aims of the TSEI are to proclaim service excellence as a national priority, define a South African service signature, accelerate skills development and develop a monitoring system. Information gleaned will ultimately contribute to the development of a National Integrated Service Excellence Strategy.

TSEI Project Manager, Gail McCann, points to possible reasons behind South Africa’s

sets,mediocre

The absence of service culture in South Africa is finally being addressed, reports Michelle Colman...

actors

Great

human capital investment


poor showing on service. She says: “The majority of South Africans have not been exposed to travel and service in general and therefore do not necessarily understand what is meant by good service. It is not about doing your job, but about going the extra mile. I also personally believe that staff are not always empowered to make decisions to rectify situations and have to wait for a manager to sort out problems. There needs to be a change in attitude in general.”

That change in attitude, states performance consultant Angela James must occur at deep levels of awareness if they are to result in sustainable transformed behaviour. James, who has extensive experience in talent development with major South African hotel and tourism groups, states: “Too often the success of training is assessed on competence through a learning programme. Once the assessment process is over, that competence slips.” The return on investment related to training spend is, as a result, questioned by management.

“Service delivery is a simple transaction, but how it is delivered is another story,” James expands. Her consultancy, 7 Generations, has tailored a series of strategies that target learners at the deep level of individual awareness, to bring about individual and organisational change.

While Africa should look to international providers such as Disney to provide benchmarks for spectacular service, James believes the answers to our particular service challenges should be sourced locally. She finds the concept of story-telling, so central to African cultures, effective in her programmes, enabling participants to step into the roles they play in their company’s ‘story’.

Particularly suited is the programme ‘The Way of the Service Warrior’, which champions excellent service experiences as a ‘cause’.

James emphasises aligning service experiences and staff performance with a company’s branding. “Corporates spend fortunes on their external look and feel, but fail to pull this through to the customer experience. Frequently there is no compelling vision provided to guide the alignment of external messaging with internal living-the-brand philosophies for either customers or staff. Organisations create and produce fantastic sets, but with mediocre actor performances as the staff have little understanding

of their role in the show.” She points out that recognition and fair remuneration are also important.

James notes that while the majority of hotels compete on factors with little differentiation, such as rates, amenities, size and location, very few compete on service and experiences. The concept of selling experiences extends to destination marketing, currently top of mind in Southern Africa gearing up for the 2010 World Cup. “Many 2010 marketers are missing the point,” she says. “We are not selling soccer; we are selling a tourism destination. Yet there’s no cohesive South African image, although there are pockets, fragments and nuances of it. We will have the fanciest stadiums, but it is the people that must create the memories. We throw the terms ‘rainbow nation’ and ‘Africa’s World Cup’ about, but have made only vague attempts to define them.”

Hotel groups invest in service excellence

Accor Hospitality operates an academy which co-ordinates training at its 100 or so African properties. Training courses strongly emphasise anticipation of guest needs along with service delivery and customer care. Some 100 courses are on offer, and it is an Accor requirement that all staff members benefit from at least one training session a year.

In South Africa, one of the Accor brands, Formula 1, offers a National Diploma in Accommodation Services (accredited by Theta as a National Qualifications Framework programme) to all its employees, and those of outsourced service providers, at no cost.

Besides its core, three-year in-house apprenticeship programme offered in South Africa, Protea Hotels runs over 20 in-house development programmes for staff at its properties in nine African countries. The programmes, which attract some 2 500 participants across the continent, cover basic skills to financial, marketing and leadership development. Mary McGuire, Director of Protea Hotels’ Institute for Professional Development, says these courses are portable and extensive training is offered in Nigeria and Zambia. The group aims for consistency and is clear on its set of minimum standards and value systems. “We hire for attitude, and train for skill and knowledge,” she says.

actors“Organisations

create and produce fantastic sets, but

with mediocre actor performances as

the staff have little understanding of their

role in the show.”

26 2009 Hospitality Investment Conference Africa

Wednesday, 4 november 2009

THUrsday, 5 november 200907:30 – 08:30 RegistRation Coffee,TeaandPastriesservedonarrival 08:30 – 08:40 Welcome RemaRks MsMmatšatšiMarobe,CEO:TourismBusinessCouncilofSouthAfrica(TBCSA)

08:40 – 09:00 INCREASING GROWTH OPPORTUNITIES FOR AFRICA – KEYNOTE ADDRESS HonourableMinisterMarthinusvanSchalkwyk:DepartmentofTourismSouthAfrica

09:00 – 09:15 PRESENTATION OF SOUTH AFRICA’S INvESTmENT HANDbOOKMsSindiswaNhlumayo,DeputyDirectorGeneral:DepartmentofTourismSouthAfrica

conference

12:00 – 17:00 RegistRation oPen

14:00 – 14:10 SPONSORS ExHIbITION SETUP

14:00 – 14:10 Welcome RemaRks & conFeRence oVeRVieWMsMmatšatšiMarobe,ConvenerandCEO:TourismBusinessCouncilofSouthAfrica(TBCSA)

14:10 – 14:20 oFFicial oPening RemaRks MrTommyEdmond,BoardChairman:TourismBusinessCouncilofSouthAfrica

14:20 – 15:10 GLObAL ECONOmIC OUTLOOK - SETTING THE SCENE FOR HICA 2009 Moderatedby:ProfBrianKantor,Economistandstrategist:InvestecPrivateClients DrRudolfGouws,ChiefEconomist:FirstRand/RandMerchantBank DrIrajAbedian,CEO:PanAfricanCapitalHoldings

15:10 – 16:00 GLObAL HOSPITALITY bAROmETER – LEADERS PANEL Moderatedby:MrNawfalBendefa,VicePresidentInternationalHotelDevelopment:MarriottPanel:MrArthurdeHaast,GlobalCEO:JonesLangLaSalleHotelsMrKurtRitter,President&CEO:RezidorHotelGroupMrSergeHattier,SeniorVicePresidentDevelopment:ACCORHospitality,Africa&MiddleEast

16:00 – 17:00 AFRICA’S HOSPITALITY bAROmETER – LEADERS PANEL Moderatedby:MrJoopDemes,CEO:PamGoldingHospitality Panel: MrAndrewPayne,CEO:WildernessSafaris MrJorgeJover,CEO:MITCInvestimentosSARL,Angola MrSteveFitzgerald,OutgoingCEO:&BEYOND MrShingiMunyeza,GroupCEO:AfricanSunHotels

17:00 – 17:45 netWoRking XPRess

18:00 – 20:00 WELCOMECOCKTAILRECEPTION Venue: sandton sun Hotel

09:15 – 10:00 ADvISORS’ PANEL - WHAT ARE THE ADvISORS TELLING US? Moderatedby:MrPieterdeBruin,HeadofTourism:FNBCommercial Panel: MsGillianSaunders,Principal:GrantThorntonStrategicSolutions MrTrevorWard,MD:WHospitalityGroup DrAulianaPoon,MD:TourismIntelligenceInternational

10:00 – 10:30 FACE TO FACE INTERvIEW WITH GLObAL LEADER InterviewwithMrArthurdeHaast,GlobalCEO:JonesLangLaSalleHotelsInterviewedbyDrAulianaPoon,MD:TourismIntelligenceInternational 10:30 – 11:30 AFRICA’S INvESTmENT RISK CONSIDERATION & INSURANCE Moderatedby:MrJohnStapleton,RegionalManager:SATIBRiskSolutions Panel: MrJasperWard,SeniorBroker:TribeInsuranceBrokers MrJohnMcMillan,MD:RANIHotels&ResortsMrAnthonyO’Reilly,RegionalBusinessDevelopmentManagerAfrica:ChartisSouthAfrica

11: 30 – 11:50 Hica travel & Hospitality awardsBestNewHotelInvestmentAward ExcellenceinTravelandTourismReportingAward

11:50 – 12:30 NETWORKING bREAK

12:30 – 14:00 bREAK AWAY SESSIONS

session 1 TRAvEL & HOSPITALITY TRANSFORmING mOZAmbIQUE’S ECONOmY Moderatedby:MrAdrianFrey,MD:ClubofMozambiqueLDA Panel: MrMarkDavies,Director:VMConstruction,BenguerraLodge&Villas MrPedroCouto,Partner:Gamito,Couto,Gonçalves,Pereira,Castelo Branco&AssociatesMsIreneVisser,ProgrammeManager:TourismMozambique MrHelderChambal,SeniorAttorney:Gamito,Couto,Gonçalves,Pereira,Castelo Branco&Associates

session 2 REmOvING bARRIERS TOWARDS TRAvEL & TOURISm IN NIGERIAModeratedby:MrTrevorWard,MD:WHospitalityGroupPanel:MrKevinFick,Director:MITCEldoradoMarketingMrMichaelO’Malley,Director:WestportPropertyGroupMrGodfreyTapela,InvestmentOfficer:IFCMrRobBecker,ChiefFinancialOfficer:SunInternational

session 3 bOUNDLESS SOUTHERN AFRICA’S DEvELOPmENT OPPORTUNITIES Moderatedby:MrsChipoMtasa,CEO:RainbowTourismGroup Panel: MsDeborahKahatano,Director:BoundlessSouthernAfricaOfficeDrBartolomeuSoto,DirectorofConservation:DepartmentofTourismMozambique MrWisdomMdumiseniDlamini,Director:SwazilandNationalTrustCommission MsNdaipaneyiMukwena,AreaManagerSouthernAfrica:ZimbabweTourismAuthorityMsRoseChivumba,TourismDevelopment&MarketingManager:ZambianWildlifeAuthority

14:00 – 15:00 NETWORKING LUNCH bREAK

programme

2009 Hospitality Investment Conference Africa 27

programme

28 2009 Hospitality Investment Conference Africa

15:00 – 16:30 BREAKAWAY SESSIONS

Session 4 SEARCHING FOR DEVELOPMENT OPPORTUNITIES IN ANGOLA Moderated by: Mr Jorge Jover, CEO: MITC Investimentos SARL Panel: Mr Andrew McLachlan, Vice President Business Development Africa and Indian Ocean Islands: Rezidor Hotels Dr Apolinario de Oliveira Diogo, Director of Statistics & Planning: Department of Tourism Angola Mr Amaro Francisco, General Director: Angola Institute of Tourism, INFOTUR Mr Trevor Ward, MD: W Hospitality Group

Session 5 CREATING REAL ESTATE VALUE THROUGH ANCILLARY DEVELOPMENTS Moderated by Mr Wayne Grews, MD: Group RCI, Africa Panel: Mr Deon Viljoen, Director of Operations: Southern Sun Lifestyle Resorts Mr Andrew Hubbard, CEO: Queensgate Hotels & Leisure Mr Brian Singer, CEO: Singer Group Mr Brett Archibald, Senior VP Business Development EMEA: GroupRCI

Session 6 WHO ARE THE INVESTORS OF TODAY AND TOMORROW IN AFRICA Moderated by: Ms Jackie Asheeke, CEO: Federation of Namibian Tourism Associations Panel: Mr Clive Bennett, MD: Red Carnation Hotels Mr Martin Kearns, MD: EuroCape Mr Riaan Gous, Director: Starwood Africa Mr Paschal Phelan, Chairman: Phelan Holdings 19:30 – 22:00 NETWORKING DINNER Venue: Lekgotla Restaurant, Nelson Mandela Square: Sandton City

07:30 – 08:30 REGISTRATION Coffee, Tea and Pastries served on arrival

08:30 – 08:45 WELCOME REMARKS & PRIZE DRAW Ms Mmatšatši Marobe, CEO: Tourism Business Council of South Africa

08:45 – 09:15 FACE TO FACE INTERVIEW: THE GREEN IMPERATIVE – SUSTAINABILITY VS PROFITABILITY IN HOSPITALITY Interview with Mr Steve Fitzgerald, Outgoing CEO: &Beyond Interviewed by: Mr Gareth Haysom, Research Fellow: The Sustainability Centre

09:15 – 10:15 RETURN ON INVESTMENT BAROMETER – DOES IT PAY TO BUILD HOTELS IN SOUTH AFRICA? Moderated by: Mr Kamil Abdul Karrim, MD of Pam Golding Tourism & Hospitality Consultancy Panel: Mr Arthur Gillis, CEO: Protea Hotels Mr Gerald Nelson, CEO: Hospitality Property Fund Mr Andrew Hubbard, CEO: Queensgate Hotels & Leisure Mr Serge Hattier, Senior Vice President Development: ACCOR, Africa & Middle East Mr Kevin Page, Group Development Director: Southern Sun

10:15 – 11:00 WHAT THE TRAVEL DEMANDS ARE TELLING US Moderated by: Ms Gillian Saunders, Principal: Grant Thornton Strategic Solutions Panel: Dr Auliana Poon, MD: Tourism Intelligence International Mr Ross Kata, Regional Director Africa: Expedia

11:00 – 11:45 NETWORKING BREAK

FRIDAY, 6 NOVEMBER 2009

programme

2009 Hospitality Investment Conference Africa 29

11:45 – 13:15 BREAKAWAY SESSIONS

Session 7 MANAGEMENT AGREEMENTS VS LEASE AGREEMENTS Moderated by: Mr Joop Demes, CEO: Pam Golding Hospitality Panel: Mr Nawfal Bendefa, Vice President International Hotel Development: Marriott Mr Patrick Finn, Senior Director Acquisition & Development: Starwood Hotels Mr Pieter de Bruin, Head of Tourism: FNB Commercial Mr Pablo Berben, Director of Hotel Development Africa: Hilton

Session 8 WHAT’S THE IMPACT OF THE DEBT CRISIS ON LENDING AND DEVELOPMENT? Moderated by: Mr Shingi Munyeza, Group CEO: African Sun Hotels Panel: Mr Mikko Kuuskoski, Director: AfriNord Hotel Investments Mr Jabu Khethe, CEO: FNB Africa Mr Glenn Stutchbury, MD: Africa Albida Mr Mbuyazwe Magagula, Head of Tourism: Industrial Development Corporation

Session 9 SUSTAINABLE DEVELOPMENT, COMMUNITY BENEFICIATION AND PROFITABILITY - CAN THEY COEXIST? Moderated by: Mr Gareth Haysom, Research Fellow: The Sustainability Centre Panel: Ms Heidi Keyser, Director: Responsible Tourism Centre Mr Barry Garner, MD: Resysta Africa Ms Sindiswa Nhlumayo, Deputy Director General: Department of Tourism, South Africa Mr Vincent Joyner, MD: HIPinAfrica

13:15 – 13:45 HICA TRAVEL & HOSPITALITY AWARDS Upcoming Industry “Mover & Shaker” Award Tourism Business Leadership Award

13:45 – 15:30 Guest Speaker – Dr Danny Jordaan, CEO: 2010 FIFA LOC –“Its Africa’s time and South Africa is ready for the Soccer World Cup”

16:00 – 18:00 OPTIONAL SIGHTSEEING TOURS

See you at HICA 2010 – Oct 31 to Nov 2!

conference

Mr. Joop DeMesCeopam Golding Hospitality

Joop Demes, has 23 years of hands-on experience

in the Southern African hospitality and leisure industry. Founder shareholder and CEO of Pam Golding Hospitality and Managing Director of Pam Golding Hotels which he started in 1997, Demes formed Pam Golding Lodges and Guesthouses (Pty) Ltd in 2006, Pam Golding Hospitality & Tourism Consultants (Pty) Ltd in 2007 and Pam Golding Restaurants in 2008. Demes has been the mastermind of a number of successful condominium (sectional title) hotel applications in Southern Africa, and consults internationally in this regard. He is regarded as the continent’s specialist in condominium and fractional applications at the top end of the hospitality industry.

Mr. AnDrew pAyneCeowilderness safaris

Andrew Payne was educated at the

University of Cape Town where he qualified as a Chartered Accountant. Payne joined Wilderness Safaris in 1994 after having worked with the company in Botswana for the previous year. When Andy joined the company, his role was to grow Wilderness Safaris in the region of Southern Africa. Payne took over from Malcolm McCulloch as CEO of Wilderness in 2007.

Mr. JorGe Jover CeoMITC Investimentos sArL

Since becoming CEO, Jorge Jover has focused

on accelerating the company’s Angolan leadership in operations that range from industry to agriculture, general services to construction and finances and expanding its premier position in the agricultural processing value chain. A graduate of the University of Montevideo, with a Bachelor degree in Agronomic Engineering, Jover began his international career with the Angolan Government. Jover supports different Angolan Development Programmes. He is a member of the Corporate Council on Africa, the US-Angolan Chamber of Commerce.

Mr. sTeve FITzGerALDFormer Ceo&Beyond

Steve Fitzgerald has been one of the most

influential personalities in the high-end sector of South African tourism. He trained as a Chartered Accountant in Cape Town and then left the profession at the first opportunity to open the Arniston Hotel on the southern tip of Africa with his wife Nicky. In 1994 he joined the founders of CC Africa, now &BEYOND, in the role of Managing Director. He was responsible for growing the business and expanding the commercial ecotourism model across Africa and into India. Fitzgerald stepped down as CEO of &Beyond in January but continues to consult to the group.

Mr. sHInGI MunyezAGroup CeoAfrican sun Hotels

Trained as an Accountant with Ernst & Young,

led a consortium of Zimbabwean businesspersons to acquire a 35% stake in Zimbabwe Sun Hotels in August 2002 and assumed the role of CEO where he is presently driving the group’s expansion and re-branding strategy to a Pan African hospitality group in Sub-Saharan Africa. Munyeza is currently the Chairman for Zimbabwe Tourism Authority. Munyeza is a holder of a Postgraduate qualification in Accounting, Marketing, Advertising and Hotel Management.

MInIsTer MArTHInus vAn sCHALkwykTourism MinisterDept of Tourism sA

Minister Marthinus van Schalkwyk held the position of SA Minister of Environmental Affairs and Tourism since April 2004. He was appointed Minister of Tourism in May 2009. Minister van Schalkwyk holds a B Proc degree from Rand Afrikaans University, as well as a Bachelor of Arts honours degree in Political Science and a Masters of Arts degree in Political Science. In addition to holding the position of Premier of the Western Cape between 2002 and 2004, Minister van Schalkwyk has been a Member of Parliament since 1990.

Ms. sInDIswA nHLuMAyoDeputy DG Dept of Tourism SA

Sindiswa Nhlumayo’s responsibilities extend to providing leadership in

the development and implementation of policies and strategies that will grow tourism in South Africa, and ensuring that destination SA remains globally competitive. Nhlumayo is the former Head of the Tourism Black Economic Empowerment Council and prior to this was a Special Advisor to the Minister of Environmental Affairs and Tourism, on tourism-related issues. She was once a Chief Director for Tourism in the Western Cape. Holding a Masters of Science in Tourism Management, Nhlumayo currently serves on the Fedhasa, TEP, TGCSA, TECSA and RETOSA boards.

Mr. pIeTer De BruInHead of TourismFnB Commercial

Pieter de Bruin started his career in the jewelry

packaging industry as Marketing Manager for an international jewelry packaging company. He then moved into banking in 1997, starting with ABSA where he held various positions in franchising, retailing, production and tourism. Among his achievements, de Bruin has been a major force in encouraging banks to focus on the tourism industry. He sits on the Board of the TBCSA and holds a B. Com degree in Marketing Management as well as an MBL Degree from UNISA.

Ms. MMATšATšI MAroBeCeo Tourism Business Council of south Africa

Mmatšatši Marobe worked as a tourist guide initially

and later joined the then National Parks Board (now SANParks) being responsible for strategic marketing. This was followed by appointments at both the KwaZulu Natal and Limpopo tourism authorities. During this time, Marobe also trained as a tourist guide for KZN, Limpopo and Gauteng. She joined the TBCSA at the start of 2006 as COO and took over the position of CEO in 2007.

Mr. ToMMy eDMonDCeo Tourvest Group

Tommy Edmond joined the Tourvest group in July 2003 as CEO. He was previously

with Absa Corporate Merchant Bank as head of the merchant banking division. Prior to this he held various management positions within the Malbak stable. He holds a BComm, CA (SA) and an AMP Harvard.

proF. BrIAn kAnToreconomist and strategistInvestec private Clients

Professor Brian Kantor became Professor Emeritus

at the University of Cape Town in 2007. He has held various academic posts locally and internationally, published papers and has served as a member of SA government commissions such as the Competition Commission. He has consulted to a number of South African corporate companies such as Volkswagen (SA) Ltd, Rightford, Searle Tripp (later Ogilvy Mather SA) and BMW SA, among others.

Dr. ruDoLF GouwsChief economistrand Merchant Bank

Rudolf Gouws obtained a masters degree in

Economics from the University of Stellenbosch in 1971. He became Chief economist of the Nedbank Group in 1979. From 1986 to June of 2009 he was Chief Economist of Rand Merchant Bank. He will soon be relocating to the Cape, but remains an economist with RMB and a member of its board. He chaired the Economic Policy Committee of BSA (Business South Africa) from 1996 to 2003, and served in Nedlac. He is an honorary professor of economics at the University of Stellenbosch.

Dr. IrAJ ABeDIAn Ceopan African Capital Holdings

Iraj Abedian is the founder and Chief Executive of Pan-African Capital Holdings (Pty) Ltd. He was professor of economics at the University of Cape Town, before joining Standard Bank Group in 2000 as Group Chief Economist. He obtained his BA (Honours) and MA in Economics from UCT. He received his PhD in Economics from Simon Fraser University in Canada in 1993. He is an honorary Professor of Economics at Pretoria University and serves on a range of organisations, including the Board of SA Tourism and the GlenRand MIB Ltd.

Mr. nAwFAL BenDeFAvp of International Hotel DevelopmentMarriott

Nawfal Bendefa started his career in hospitality with operations roles at Walt Disney World and Marriott International in Orlando, Florida. He then joined Marriott’s Capital Markets Group in 2001, followed by Marriott’s London regional headquarters in 2003, filling positions in Valuation, Project Finance and Asset Management for the group’s various lodging products throughout Europe, Middle East and Asia. From 2007, he led Marriott International’s development efforts for all its brands in Africa. He is a graduate of the University of Florida and a CFA Charter holder.

Mr. ArTHur De HAAsTGlobal CeoJones Lang Lasalle

Arthur de Haast is the Global CEO of Jones

Lang LaSalle Hotels, responsible for a team of 220 hotel experts located in 32 offices worldwide in 19 countries. De Haast has extensive experience within the global hotel market having led a wide range of both transactional and advisory assignments. He is a regular commentator on the global hotel investment market, speaking frequently at major conferences, and is regularly quoted in the world’s leading business publications.

Mr. kurT rITTerCeo and president rezidor Hotel Group

Kurt Ritter is the President and CEO of

The Rezidor Hotel Group and has been with the company for over 30 years. Ritter was awarded an Honorary Doctorate of Business Administration in Hospitality by Johnson & Wales University, Prudence, USA in 1997. Ritter received several awards - such as “Corporate Hotelier of the World 2002”, the “International Hotel Investment Forum (IHIF) Lifetime Achievement Award”, and the “Brillat Savarin plaque”. In early 2007 he was also named a Carlson Fellow.

Mr. serGe HATTIersenior vice president DevelopmentACCor Hospitality, Africa & Middle east

Serge Hattier was the appointed senior VP of the Accor Hospitality Development team for the Middle East and Africa (MEA) region in 1998. Hattier played a key role in the rapid expansion of the Accor Group in the Far East and Europe from 1985 to 1992. Thereafter, he managed the Mercure Chain expansion until 1997. Hattier holds a degree in Human Sciences and is a graduate of the Paris Hotel School.

Ms. GILLIAn sAunDers principalGrant Thornton strategic solutions

Gillian Saunders holds a BSc (Hons) degree in hotel, catering and tourism management - University of Surrey, UK (1981) and an MBA degree (cum laude) - Wits Business School (1988). Most recently, Saunders is the head of all Grant Thornton Specialist Advisory Services, but she began her career at Grant Thornton as senior consultant (1988) and then held the positions of director of Grant Thornton Strategic Solutions (1990); and principal of audit firm and head of Grant Thornton Strategic Solutions (1997).

Mr. Trevor wArDMDw Hospitality Group

Trevor Ward is a specialist consultant in

the hospitality and leisure industries. Ward is the Principal of the W Hospitality Group with offices in the UK, Kenya, Zimbabwe, Nigeria and Angola. In addition, he is one of the Africa representatives for TourismROI, the world’s premier Travel & Tourism management and investment resource. He is regarded as one of the foremost experts on the hotel industry in sub-Saharan Africa, and is engaged primarily in development consultancy ranging from investment appraisals to operator selection, owner’s representation and asset management.

Dr. AuLIAnA poon MDTourism Intelligence International

Dr. Auliana Poon heads Tourism Intelligence International, a leading international consulting company that provides innovative solutions for the travel and tourism industry. Poon is an analyst, co-author and editor of many of Tourism Intelligence International Publications. An Economist by training, Poon graduated with a B.A (hons) and and M.Sc (Economics) from the University of the West Indies, Trinidad. She attended one of the leading European Schools, the Science Policy Research Unit at Sussex University (England), where she graduated with a D. Phil (Tourism & Technology) in 1988.

Mr. JoHn sTApLeTon regional ManagersATIB risk solutions

John Stapleton has been in the insurance industry

for more than 18 years, working for organisations such as Glenrand M.I.B and Alexander Forbes. He was educated in the Eastern Cape and holds a BA from Rhodes University as well as an MBA from the Nelson Mandela Metropolitan University. He is currently Regional Manager for SATIB Risk Solutions, which focuses on developing and providing comprehensive, tailor-made risk management products and services designed to suit the hospitality, tourism and wildlife industries. These are not necessarily insurance products, but encompass all aspects of risk management, and asset, liability and income protection.

Mr. JAsper wArDsenior BrokerTribe Insurance Brokers

Jasper Ward has over 20 years in the insurance

industry, the last 14 of which were with Alexander Forbes. Currently working at Tribe Insurance Brokers (Pty) Ltd (formerly Glencairn) as a reinsurance broker, Ward’s speciality is with political risks emanating from servicing clients’ needs where they had a political exposure particularly in Africa. At Alexander Forbes, Ward specialised in the major accounts areas, mostly with an international exposure mainly in SA, the rest of Africa, Australia and Europe.

Mr. JoHn MCMILLAnMD rani Hotels & resorts

John McMillan’s appointment in the post

of Managing Director ensured the realisation of Rani Resorts’ vision to offer remarkable safari and marine experiences to luxury travellers with a spirit of adventure. McMillan trained as an accountant in Zimbabwe, then started his career in the Hotel Industry as Financial Director of Cresta Hotels. Some years later, he moved to the Meikles Hotel Group as Operations Director before moving to Rani.

Mr. AnTHony o’reILLyregional Business Development Manager AfricaChartis south Africa

Anthony O’ Reilly worked for Mutual & Federal from September 1992 to June 2000 as the Corporate Manager in Cape Town responsible for Commercial, Energy & Marine. In July 2000, he joined AIG (now Chartis) as the Branch Manager of the Cape Town office. In 2003 Anthony took over as the Cape Regional Manager and in 2005 assumed the National Branch Manager for South Africa. In February 2009 he accepted the role of Regional Business Development Manager for Africa.

Mr. ADrIAn Frey MDClub of Mozambique LDA

Adrian Frey is a Swiss-trained lawyer who

has been living and working in Mozambique for 12 years. In that time he was the managing partner of one of the biggest law firms in Mozambique. He has created several publications on time share law, land law and labour law designed for investors and businesspeople in Mozambique. He currently serves on the board of several leading companies in Mozambique, including Pam Golding Mozambique and at the Belulane Free Zone. He is also the owner of Club of Mozambique, an online publisher based in Maputo.

Mr. MArk DAvIesDirectorvM Construction, Benguerra Lodge; villas

Mark Davies, resident in Mozambique, has contributed to the growth of VM Construction from a small district construction company into a niche construction company operating in the southern region of Mozambique. The business specialises in providing project management and turnkey construction services for the tourism industry. As part of his MBL studies at UNISA, Davies wrote a research thesis on “The Challenges of Doing Business in Mozambique”.

Mr. peDro CouTopartnerGamito, Couto, Gonçalves, pereira, Castelo, Branco & Associates

Pedro Couto graduated from the Universidade Eduardo Mondlane Law School, as well as the University of Lisbon and has worked as an attorney for Couto, Gonçalves Pereira, Castelo Branco e Associados since October 1998. Couto has worked on several foreign investment and privatisation projects as well as several cases on Maritime and Transport Law, litigation and arbitration, contracts, insurance, legal opinions, civil, labour, administrative and tax law.

Ms. Irene vIsserprogramme managerTourism Mozambique

Irene Visser joined IFC Advisory Services in April

2005 and is responsible for programme design and management for IFC’s advisory services in the tourism sector. Currently, Visser is Tourism Program Manager for the IFC Investment Climate Team for Africa, and is responsible for the management of the Mozambique Tourism Anchor Investment Program, and the Madagascar eco-tourism Investment Program. Both projects are joint initiatives of the respective governments and work to secure high-quality tourism investment in specially selected tourism sites.

Mr. HeLDer CHAMBALsenior attorneyGamito, Couto, Gonçalves, pereira, Castelo, Branco & Associates

Helder Chambal has a master degree in International Commercial Law from Universidade Eduardo Mondlane. He has worked as a senior attorney in the areas of tourism and conservation areas, property development and land legal expert for h, Gamito, Couto, Gonçalves Pereira, Castelo Branco e Associados since July 2008 and before that, worked as Head of the Minister’s office (2000-2003) in the Ministry of Tourism, Head of Legal Cabinet in Ministry of Tourism (2005-2007) and National Deputy Director for Tourism and Chairman of the Periodical Habitation Commission and Residential Tourism in the Ministry of Tourism in Mozambique (2007-July 2008).

Mr. GoDFrey TApeLAInvestment OfficerIFC

Godfrey Tapela is a Senior Investment Officer in IFC’s

Global Manufacturing and Services Department based in Johannesburg, South Africa. His main focus is business development and processing of new investments in the tourism, retail and commercial property sectors in Sub-Saharan Africa. Tapela, who joined IFC in 2001, holds a Masters in Business Leadership from UNISA, a BSc Electrical Engineering Honours degree from the University of Zimbabwe as well as a Graduate Diploma in Marketing from the Institute of Marketing Management.

Mr. roB BeCker Chief Financial Officersun International

Rob Becker holds a BAcc, CA (SA) and

MBA and was appointed to the Sun International Board in 2005. Becker is also a director of various group companies, including SIML, RAH and SFI Resorts. He joined the group in 2005 having spent two and a half years at Nampak and seven years at Robertsons Holdings where he held the positions of Chief Financial Officer and Group Financial Director respectively. He has extensive experience in corporate finance and local and offshore financial management.

Mrs. CHIpo MTAsACeorainbow Tourism Group

Chipo Mtasa heads of one of Zimbabwe’s largest

hotel groups, the Rainbow Tourism Group. A year after her appointment in 2005, she was elected to lead the Zimbabwe Council for Tourism. She has landed two prestigious awards – the Zimbabwe Tourism Authority’s “Best Tourism Manager in the Private Sector Award” and the Zimbabwe National Chamber of Commerce’s Business Woman of the Year award for 2007. She holds a Bachelor of Accountancy from the University of Zimbabwe and is a member of the Institute of Chartered Accountants of Zimbabwe.

speakers

Mr. Andrew HubbArdCeOQueensgate Hotels & Leisure

After matriculating, Andrew Hubbard left for Germany where he studied computer technology at Volkswagen. In 1987 he started Quick Bit GmbH, a software consultancy. In 1988, he co-founded financial services company FTH-Finanz GmbH. After four years of specialising in high net-worth individual financial planning and management, Hubbard and some partners started a real estate company in 1992. It was the first to offer investments into the South African property market (i.e. Radisson Hotel) to German investors in 1996/1997, which eventually resulted

in the formation of Queensgate Holdings.

Mr. briAn SingerCeOSinger group

Brian Singer obtained a B.Soc.Sci. (Economics) degree from the University of Cape Town and thereafter completed a postgraduate (Hons) B Compt degree. After completing his articles at the auditing firm Ernst & Young, Singer based himself within his family’s travel agency – a platform from where he, and his brother, launched a variety of travel, hotel and restaurant businesses. Today, the Singer Group of Companies owns several travel businesses, restaurants, hotels - and develops hotels and leisure properties.

Mr. brett ArCHibALdSVP business development eMeAgroup rCi

Brett Archibald, who took up his post in 2007, has responsibility for a team of 90 people growing existing business, securing new entrants in the market place and creating strategic TORE relationships across Europe, Middle East, Africa and India. Previously he ran his own travel company – VEA, based in Johannesburg. He spent a year working for RCI in Hong Kong; held the position of md of RCI Europe and worked at the Tourvest Group in South Africa as Director – Global Business Development and E-Commerce.

MS. JACkie ASHeekeCeOFederation of namibian tourism Associations (FENATA)

Jacqueline Asheeke has been CEO of FENATA since June 2003 representing the 11 private sector tourism association and their more than 1 400 tourism entities in Namibia. She has 25 years of professional experience, 14 of those as a diplomat in Namibia. She is a noted expert on the Namibian tourism economy and is highly regarded advocate for the private sector tourism industry. She has written widely on tourism and poverty alleviation, sustainable tourism and rural development, as well as transformation of the Namibian tourism industry and tourism growth strategies.

Mr. CLiVe bennettMdred Carnation Hotels

Clive was recruited by Red Carnation Hotels for

the General Manager position at The Twelve Apostles Hotel in June 2004. In December 2004 he was appointed Managing Director of Bushmans Kloof Wilderness Reserve and Retreat and in 2006 he was appointed Managing Director of Red Carnation Hotels in South Africa. He negotiated and concluded the purchase of the Oyster Box Hotel in Umhlanga on behalf of Red Carnation Hotels in November 2006.

Mr. MArtin keArnSMdeuroCape

Martin Kearns is a Chartered Engineer

and holds an honours degree in engineering from the University of Leeds in the UK. Martin has worked as a consultant engineer with international consultancy firm, Mott MacDonald, in property and infrastructure projects in UK, Hong Kong, China, Indonesia and Australia. In 2004, Martin moved to SA to establish the operation and business of Eurocape and now heads up the South African operation of Howard Eurocape as CEO of Eurocape Holdings (Pty) Ltd.

Mr. PASCHAL PHeLAnChairmanPhelan Holdings

Paschal Phelan a native of Ireland came to Cape

Town to enjoy an early retirement in 2002. Phelan had been a prominent leading businessman in Food and Agricultural, then the largest export sector of the Irish economy. His private company was in the top largest 50 companies in Ireland. He was also a leading property investor. His first large development in South Africa was the new five-star ‘Cape Royale Luxury Hotel and Spa’. His group, Phelan Holdings’, latest project is the new 152 suite ‘Hotel Missoni’ in the Cape Town CBD.

Mr. gAretH HAySOMProgramme Coordinator: Sustainable Agriculture ProgrammeSustainability institute South Africa

Gareth Haysom’s initial training was in the hospitality industry. On leaving the Spier Leisure Corporation in 2003, where he was the Managing Director, he worked on pro-poor projects and on transformation-oriented activities for the tourism industry. At the Sustainability Institute, an international living and learning centre, he lectures and manages the project. He also works on the Sustainable Communities Project, initiated by the Development Bank of Southern Africa. Rooted in an agricultural community, The Sustainability Institute explores creating a more equitable society that sustains rather than destroys the eco-system.

speakers

MS. debOrAH kAHAtAnOdirectorboundless South Africa

Deborah Kahatano has more than 15 years of

practical experience in Environment and Natural Resource Management Eastern and Southern Africa. She is currently working as a Manager for the Transfrontier Conservation Areas (TFCA) 2010 Development Programme (Boundless Southern Africa). Kahatano has outstanding experience in the field of environment, natural resource management and agribusiness with bilateral and multilateral international development organisations including USAID, UNDP/GEF (The Global Environment Facility) and IUCN-The World Conservation Union.

dr. bArtOLOMeu SOtOdirector of Conservationdepartment of tourism Mozambique

Dr Bartolomeu Soto joined the National Directorate for Forest and Wildlife within the Ministry of Agriculture, Mozambique in 1990. In 1992 he was appointed Head of Wildlife Department. Trained as a Veterinarian, he also holds a BVSc Honors in Wildlife Diseases from the University of Pretoria (1993) and an MSc in Environment and Development from the University of KwaZulu-Natal (2004). Dr. Soto was led the first phase of the Transfrontier Conservation Areas Project, which became effective in May 1997 funded by the GEF through the World Bank. Dr. Soto became Project Manager for the Mozambique TFCAs and was appointed the National Director of Conservation Areas in 2007.

Mr. wiSdOM dLAMinidirector Swaziland national trust Commission

Wisdom Dlamini is the Director of Nature Conservation and National Parks in Swaziland working under the auspices of the Swaziland National Trust Commission. He holds a BSc degree, a Postgraduate Diploma, an MSc degree, an MBA, and a Diploma in International Environmental Law. His 11-year experience spans a wide variety of scientific and management areas such as environmental science, environmental law, protected area management and ecotourism. Dlamini was, up to April this year, employed as the International Coordinator for the Lubombo Transfrontier Conservation Area.

MS. ndAiPAneyi MukwenAArea Manager for Southern AfricaZimbabwe tourism Authority

Ndaipaneyi Mukwena is Zimbabwe’s Tourism Area Manager for Southern Africa. Mukwena has held positions of Hotel General Manager, Chairperson and Lecturer of the Department of Tourism and Hospitality Management at the Midlands State University (Zimbabwe). Mukwena has broad experience in tourism management and marketing. She is a holder Bachelor of Business Administration degree (BBA) from Schiller International University (Strasbourg and London) and Master of Business Administration degree from Middlesex University (London).

MS. rOSe CHiVuMbAtourism development and Marketing ManagerZambian wildlife Authority

Rose Chivumba was appointed Commercial Manager of the Zambia Wildlife Authority in March 2002. In 2007, the title was changed to Tourism Development and Marketing Manager. Her responsibilities in Zambia Wildlife Authority include tourism business development and marketing, tourism business management, tourism product development, compliance and revenue collection. Chivumba holds a B.A Ed, P.G.Dip. Wildlife Conservation & Management, Dip. Protected Areas Planning, Dip in Land Tenure & Legal Issues in Protected Areas, P.G. Dip. Management and Master of Business Administration (MBA).

Mr. Andrew MCLACHLAnVice President Hotel development: Africa and the indian Ocean islandsrezidor group

Andrew McLachlan is responsible for growing Rezidor’s portfolio of hotels and brands in Africa and the Indian Ocean. In December 2006, McLachlan joined the Rezidor Hotel Group as Director Business Development. He established the group’s presence in the region through a dedicated development office in Cape Town. McLachlan is the Managing Director of Afrinord Hotel Investments, a €35m financial Joint Venture Agreement the Rezidor Hotel Group has signed with four Nordic Government Funds to expand its presence in Africa.

Mr. wAyne grewSMdgroup rCi Africa

Wayne Grews was appointed Managing Director for Group RCI Africa effective October 1, 2007. Prior to this position, he was a Board Director at RTT responsible for creating and implementing a consumer and client focused business model across people, systems and processes. He has also held a number of positions at Energizer, based for some time at the company’s global headquarters in the USA, as well as at General Mills. Grews completed a Bachelors of Science (Marketing) in 1984 from Quincy University in the US.

Mr. deOn ViLJOenChairmanVOASA & director of Southern Sun Vacations

Deon Viljoen is perhaps best known for his role in developing the Sandton Convention Centre in Johannesburg. From 1998 to 2003, Viljoen oversaw the building of the centre and managed the pre-opening and opening in 2000. In 2003, Viljoen was seconded to the Johannesburg Tourism Company, which he established. In 1998, Viljoen moved back to Southern Sun to lead a division of nine resorts (six of them timeshare) as well as a full-range of auxiliary business units.

Mr. kAMiL AbduL kArriMMdPam golding tourism & Hospitality Consultancy

Kamil Abdul-Karrim heads Pam Golding Tourism & Hospitality Consulting, a specialist consulting division providing strategic consulting services to the hotel industry in SA. Abdul-Karrim has trained as an Accountant at UNISA and spent his earlier career in accounting and finance developing into CFO for two global companies in the service environment. He then embarked on post-graduate studies completing a PDM-Public Policy Development and Administration at Wits University in 1996 and went on to achieve his MBA with Bond University in Australia during 1998. Abdul-Karrim is currently Non-Executive Director of the JSE listed Hospitality Property Fund as well as Quantum Property Group.

Mr. ArtHur giLLiSCeOProtea Hotels

Arthur Gillis is the Group MD of Protea

Hotels. Gillis has been with Protea since the company started in 1984. His first job after graduating from Hotel School was assistant purchaser at the Heerengracht Hotel, which subsequently became one of the first hotels under the Protea banner. Among other things, he has served as Chairman of the Technikon Witwatersrand Hotel School Development Committee, Vice President of the Hospitality Industry Training Board and Member of the South African Tourism Board Standards Committee.

Mr. gerALd neLSOnCeOHospitality Property Fund

Gerald Nelson graduated with a BSc from the University of the Witwatersrand in 1977 and has held a range of directorships with, among others Grapnel Property Group and Sycom Property Fund Managers. Nelson has worked in property development for UAL Merchant Bank as well as Old Mutual Properties. He is a member of the Association of Property Unit Trust Management Companies. As CEO of the Hospitality Property Fund, Gerald has overseen the listing of the company on the JSE in 2006. Hospitality Property Fund is the first local specialist listed property fund invested exclusively in hotels and resorts.

Mr. rOSS kAtAregional director Africaexpedia, Johannesburg South Africa

Ross Kata has been Market Manager of Expedia Inc in Africa since 2003. Kata spent seven years in the hotel and tour operator industry in Europe and APAC. With that experience and knowledge, he was able to bring Expedia Inc to Africa. His primary role on behalf of Expedia Inc is negotiating airline, hotels and destination services deals with considerable expertise in online retail, merchandising, SEO and SEM. He has an extensive knowledge of the African online industry and expertise in generating viable destination strategies to ensure longevity and profitable results.

Mr. PAtriCk FinnSenior directorAcquisition and developmentStarwood Hotels

Patrick Finn is Senior Director of Acquisitions & Development for Starwood Hotels & Resorts Worldwide, Inc. He is responsible for executing Starwood’s growth strategy through the development of management and franchise partnerships in Africa and the Middle East. Finn has successfully led teams of specialist disciplines in closing transactions for upscale and luxury hotels across Europe, Africa, and the Middle East. He has extensive experience in project underwriting, as well as strategic planning for Starwood’s EMEA division.

Mr. PAbLO berbendirector of Hotel development AfricaHilton

Pablo Berben joined the Hilton Development team in March 2009, working from his base in Brussels to drive development of the Hilton Portfolio of Hotel Brands throughout Africa. A finance specialist with a business degree, Berben has previously worked with a ‘big four’ accounting and consulting firm, as well as for major hospitality brands throughout Europe, Africa and the Middle East.

Mr. MikkO kuuSkOSkidirectorAfrinord Hotel investments

Mikko Kuuskoski currently holds the position of Senior Investment Manager at Finnish Fund for Industrial Cooperation Ltd (Finnfund) and Director at Afrinord. Finnfund is one of the founding shareholders of Afrinord, a captive finance company established to support Rezidor’s business operations in Africa. Kuuskoski has over a decade’s experience from international corporate and project finance with Citigroup in Finland, the United Kingdom and Sweden as well as Nordea in Finland. He has extensive experience on working with non-investment grade borrowers.

Mr. JAbu kHetHeCeOFnb Africa

Jabulani Richard Khethe is the Chief Executive Officer of FNB Africa. He has extensive banking, insurance and leadership experience with financial institutions in South Africa and is responsible for the expansion and strategic development of FNB into Africa. Khethe is a member of the Institute of Bankers in South Africa.

Mr. gLenn StutCHburyMdAfrica Albida tourism

Glenn Stutchbury is the MD of Africa Albida Tourism. Born and educated in Zimbabwe, Glenn has a CHA in Hospitality from the American Hotel and Leisure Association.He has been GM of numerous hotels before taking the post of Regional Operations and Commercial Director of the Meikles Africa Hotels Group. Glenn is currently a Vice President of the Zimbabwe Council for Tourism (ZCT).

Mr. MbuyAZwe MAgAguLAHead of tourismindustrial development Corporation

Mbuyazwe Magagula is with the Tourism Unit of the Industrial Development Corporation of South Africa where he is responsible for a book totalling USD210m (R3bn) with over 100 clients mainly in the accommodation sub-sector. The unit provides funding to viable businesses in the tourism sector throughout Africa. Prior to joining IDC he worked for Honeywell Hi-Spec Solutions as simulation engineer developing training simulators for petrochemicals plants. He holds a BSc. Engineering (Chemical) and a BComm.

MS. Heidi keySerdirectorresponsible tourism Centre

Heidi Keyser has 17 years’ experience in tourism development in South Africa, Africa and Asia. A qualified Town and Regional Planner, Keyser specialises in responsible tourism and tourism destination development. She has contributed to the 2002 National Responsible Tourism Guidelines, DEAT’s Responsible Tourism Manual and Handbook and Responsible Tourism Planning Framework and Guidelines for Gauteng. She has a founding member and executive director of the International Centre for Responsible Tourism South Africa.

Mr. bArry gArnerMdresysta Africa

Barry Garner was born in Zimbabwe

and after finishing high school, completed three National Diplomas in Hotelkeeping (honours) at the Bulawayo Technical College. Thereafter he joined Zimbabwe Sun Hotels for five years, where he rose to the position of Group Training Manager. He immigrated to South Africa in 1983 and in 2002 he founded, with German partners, MBM Africa, purveyors of exclusive outdoor furniture, now found in eight retail showrooms countrywide. He introduced Resysta, an exceptional wood composite, into the South African market in 2009.

Mr. VinCent JOynerMdHiP Africa

Vincent Joyner has been in the Hospitality industry since the age of 17. He is the founder of Hospitality Investment Partners in Africa after having spent almost 18 years with Accor Hospitality. He holds a Masters in International Hospitality Management from Cornell University (USA) and the ESSEC Graduate School of Management in France and a Bachelors of Arts Degree in Hotel Management. He is fluent in French. HIPinAfrica is also launching a fully “sustainable” hotel chain in Arica. Joyner has also founded Invincible Education which sets up a network of ‘free universities’ around Africa focusing on entrepreneurship.

dr. dAnny JOrdAAnCeO2010 FiFA LOC

Danny Jordaan is the Chief Executive Officer of the 2010 FIFA World Cup Organising Committee. Over the years he has been a senior lecturer, politician, sports administrator, businessman and a political activist in the struggle against apartheid in South Africa. Jordaan studied at the University of the Western Cape and University of South Africa in Pretoria completing a Bachelor of Art, Diploma in Higher Education, Honours Degrees, and was recently honoured with a Degree Doctor of Administration. In 1997, Jordaan was appointed CEO of the SA Football Association. Among the awards he has received are the Special Presidential Awards from President Nelson Mandela (1994) and Presidential Sport Achievement Award from President Thabo Mbeki (2001).

speakers

2010 boom


Pre-2010

for SABOOMhospitality IT may not all have been developed for the 2010

World Cup in South Africa, but 2009 and 2010 will forever be known for the vast expansion of hotel infrastructure throughout Southern

Africa. While South Africa has largely been the greatest

beneficiary of this expansion, neighbouring countries like Angola and Mozambique have also benefited from the upturn.

Cape Town is arguably the focus within South Africa with a new range of designer five-star properties, including the development of Rezidor’s Hotel Missoni, The Taj Hotel and Protea Hotels’ 15 on Orange and Crystal Towers developments.

Elsewhere, Durban’s iconic Oyster Box has reopened, while Protea’s quirky, fun Fire and Ice! brand heads for Johannesburg.

Yet despite the expected mass scheduled openings throughout South Africa’s main centres from now until mid-2010, developers and hotel operators still deny there’s a glut of new and upcoming premium hotel developments which will result in fierce competition as the recession forces visitors to buy-down.

HICA brings you some of the key hospitality developments scheduled for the region:

Aggressive expansion for African Sun

ZimbAbwe-bAsed hospitality group, African Sun, plans to expand its portfolio even further with the opening of several new properties across the continent.

Says Group CEO, Shingi Munyeza, the group plans to invest US$60m on capacity expansion bringing the group to over 8 000 rooms, more than double its current 3 000 rooms.

“At the moment we are finalising the first chunk of funding refurbishments,” says Munyeza. He furthers that the refurbishments across the properties are to be completed before the 2010 Soccer World Cup to be held in neighbouring South Africa.

In terms of South African hotel opportunities, Munyeza says the group is rooting out potential projects at present and expects to announce these new

developments before the end of the year.

In June, the group announced it would be opening nine properties across Africa.

“Despite the current economic climate we are optimistic about the long-term viability of the hospitality industry in Africa. As a result, we are constantly on the lookout for new properties that offer sustainable returns and the project pipeline we have for the year is solid – and likely to grow in the coming months as we identify new opportunities,” says Farayi Mangwende, Group Corporate Communications Manager. “Of particular interest to us are developments in natural resource rich countries and leisure enclaves.”

The group closed 2008 with 1090 rooms outside Zimbabwe and this is expected to increase to 3300 by the end of 2009.

Rezidor develops Hotel Missoni Cape Town

A see-through cantilevered pool hanging over the edge of a rooftop terrace is just one of the traffic-stopping features of the R340m new five-star hotel missoni Cape town due to open after the World Cup in 2010.

The luxury lifestyle and designer hotel will bring the iconic Italian fashion brand, Missoni, to South Africa. It will form part of the Rezidor Hotel Group’s new lifestyle hotel concept aimed at attracting new revenue from target markets such as the film, fashion and related industries, well-heeled Fits, “black Diamonds” and the brand conscious.

the 157-bedroom hotel missoni

Cape Town will be located on the corners of Castle and Burg Streets in the Cape Town CBD, about 50m from Greenmarket Square. Each room’s furnishings will be valued at R2m upon completion. Facilities will include a small wellness spa, an Italian restaurant, a bar and small meeting and conference facilities.

Andrew McLachlan, Rezidor’s vice president for business development in Africa and the Indian Ocean Islands, says: “In Africa, we are looking at the Seychelles, Mauritius and possibly Sandton. Another logical place to take the brand is the luxury safari lodge segment.”

Beachfront convention centre for East London

EAST London has a new International Convention centre, managed by Premier Hotels & Resorts International.

Featuring prominently on the cover of Tourism Business Africa, this is Southern Africa’s only beachfront convention centre, as well as the only conference and exhibition venue of its magnitude in the Eastern Cape.

Located on the Esplanade, the complex incorporates the 254-room Premier Hotel Cascades as well as the adjacent 175 rooms of the Premier hotel regent, offering a range of accommodation options to complement the ICC. The complex features a 600-seater auditorium,

a 2 200-sqm exhibition hall, three conference rooms with a combined floor space of 800 sqm, multiple breakaway and boardrooms and various restaurants.

the iCC’s multi-functional conference venues are equipped with state-of -the-art technology and are suitable for conferencing; breakaway sessions; presentations; workshops; exhibitions; concerts, cocktail and banqueting events. The centre can accommodate small meetings for groups of 10, schoolroom style conferencing for up to 1 400 delegates, while the largest room can accommodate 2 150 delegates cinema-style.

http://www.goldenhotels.co.za

TBCSA009SD

http://www.fnb.co.za

Tourism Business Africa 09

Documents

Transcript of Tourism Business Africa 09