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City of Cape Town Backpacking and Youth Tourism Investigative Study. Presented by: Prof Kamilla Swart Date: 19 March 2010. Introduction And Methodological Approach. Introduction to Study.

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city of cape town backpacking and youth tourism investigative study
City of Cape Town Backpacking and Youth Tourism Investigative Study

Presented by: Prof Kamilla Swart

Date: 19 March 2010

introduction to study
Introduction to Study
  • Commissioned by CoCT to provide City with direction and recommendations into facilitating and developing sector
  • To gain a better understanding of the backpacking market in Cape Town
    • To prepare an action plan to further promote, facilitate and develop niche
  • Develop targeted strategies, initiatives and programmes to unlock potential of market
research methodology
Research Methodology
  • Define terms and concepts
  • Review secondary data at all levels
  • Conduct primary data collection at local level
  • Analyse data to establish trends, travel patterns & frequencies
    • Conduct comparative analysis to establish differences and similarities across strata
    • Conduct importance-performance analysis for those that have visited destination to establish destination’s strengths and weaknesses from tourists’ view point
    • Conduct an impact analysis and forecasting to establish possible positive and negative impacts of further developing this niche sector
    • Estimate future direction of the industry among others
  • Develop an action plan that will be city’s ‘road map’ towards taking full advantage of and optimise returns from this niche sector
research methodology5
Research Methodology
  • Preview
  • Definition of concepts
  • Assessment of study requirements & needs
  • Gathering and review of documents including city TDF, Business plans, tourism white papers etc.
  • Secondary data
  • Mainly at global & national levels and to a less extent at the local level to understand demand and supply side trends from already existing research data and information
  • Demand side trends such as volumes, yield, major origin markets, consumer travel patterns, demands, needs, requirements
  • Supply side trends such as major backpacking destination competition, availability and adequacy of resource and infrastructure supply
research methodology6
Research Methodology

Primary data

Primary data will be used at both national and local levels

  • Supply side
  • Establish databases of suppliers at local level including: accommodation, tour operators, attractions and transport
  • Divide database into strata by supplier type to get a fair representation of each
  • Select 30 respondents under each strata
  • Administer questionnaire by means preferred by respondent (self, face-to-face, e-mail, phone or mail)
  • Demand side
  • Establish databases of previous visitors to South Africa and Cape Town
  • Divide database into two strata (international and domestic)
  • Further divide strata into two (those that have visited and those that haven’t visited Cape Town)
  • Select 100 ‘have visited’ and 50 ‘have not visited’ internationals
  • Select 70 ‘have visited’ and 30 ‘have not visited’ domestics
  • Administer questionnaire by e-mail or phone
research methodology7
Research Methodology

Action Plan

Develop action plan informed by research findings, including:

  • Specific and measurable goals and objectives, bound by time
  • Time and resources that should be committed to be successful
  • Areas that need improvement in destination to effectively attract and serve this market and responsible parties and individuals
  • Identify possible problem areas such as negative impacts
  • Responsible parties and individuals for each component of action plan and expected results
  • Industry liaison group to regularly monitor, track and evaluate progress regarding performance of the niche sector according to action plan
  • Action plan to be finalised with industry stakeholders
research methodology partnership with bsa saytc
Research MethodologyPartnership with BSA/ SAYTC
  • BSA (1998) market SA globally as preferred destination
  • SAYTC (2007)

- Backpacking SA

- Education Travel

- Tours & transport

- Volunteering SA

data collection10
Data Collection

Challenges

  • Industry buy-in
  • Low response rates to e-mail surveys
  • Incorrect e-mail addresses
  • Considered spam
  • Low season for backpacking establishments
  • Very small domestic backpacking market
data collection11
Data Collection

Interventions for challenges

  • Use of Survey Monkey
  • Banners and links on BSA website
  • Prizes offered for completion of surveys
  • Meetings held
  • Follow up e-mails and phone calls
  • Surveys left at backpacking establishments
secondary data key findings13
Secondary Data – Key Findings

Definitions and concepts

  • Old perceptions changing
  • Travel alone, young career professional, late 20’s, educated, middle class, single
  • Concerned with money and budgeting
  • Increasing disposable income – ‘flashpackers’
  • Increased older travellers – ‘denture venturers’
  • Prefer budget accommodation
  • Emphasis on meeting people during travels
  • Flexible travel schedule
secondary data key fin dings
Secondary Data – Key Findings

Definitions and concepts (cont.)

  • Prefer longer holidays
  • Prefer participatory holidays
  • Working holiday maker
  • Explorers, looking for a cultural experience
  • Backpacker plus – older person who is not tied down by responsibility
  • Travel off the beaten track
  • Average spend of US$3 000 on main trip
  • Study abroad
  • May have inappropriate behaviour that could offend locals
secondary data key findings15
Secondary Data – Key Findings

Backpackers to South Africa

  • Most from Western Europe, well travelled, long haul travellers
  • Most from Germany, UK and Netherlands
  • Young men and women; ages 21 to 25
  • Usually employed in services industry
  • General budget of R10 000 or less
  • Main areas of spending: accommodation, restaurants, self-catering food supplies, take-away meals, bar tabs, night clubs and general tourist activities
  • Websites used: SA Tourism, Lonely Planet, Greyhound, Alternative Route, about Cape Town, Baz Bus and Coast to Coast
  • Small percentage on a gap year
  • Internet plays key role in planning for trip
  • Aim to interact with local South Africans and meet new people
  • SA seen as gateway to the rest of Africa and as a destination for humanitarian work
  • Spend much less time in South Africa than in other destinations such as Australia
secondary data key findings16
Secondary Data – Key Findings

Major source countries for international backpackers visiting South Africa (Rogerson, 2007)

secondary data key findings17
Secondary Data – Key Findings

Key features of South Africa visit

  • Average cost of return flight R6 821
  • Most common airlines used: British Airways, SAA, Qantas, KLM, Virgin and Lufthansa
  • Most common entry point is Cape Town, followed by Johannesburg
  • Average length of stay: 42 days
  • All nights not spent in backpacker accommodation and volunteers stay in accommodation organised by organisation
  • Facilities considered essential include clean bathrooms, clean beds, friendly staff, self-catering facilities, Internet, travel information, lockers, laundry and a bar
  • Highest spend is on accommodation
  • Most popular activities are visiting natural sites, game viewing, visiting museums, visiting historical sites, night clubbing and township tours
secondary data key findings18
Secondary Data – Key Findings

Travel patterns within South Africa

  • Cape Town most popular destination followed by Kruger Park, Durban, Port Elizabeth, Jeffrey’s Bay, Paarl, Stellenbosch, Knysna, Coffee Bay and Plettenberg Bay
  • Most not able to visit attractions that they would like because of a lack of marketing and cost factors
  • High concern about safety and security
  • Most arrive in South Africa with a planned itinerary but often change it
  • Transport in South Africa is not flexible enough and places constraints on travel
  • Transportation services most commonly used: rental cars, domestic low cost airlines (especially One Time and Kulula) and intercity busses (especially Greyhound, Inter Cape and Translux)
secondary data key findings19
Secondary Data – Key Findings

Geographical distribution of suppliers of backpacker accommodation, by province

(Rogerson, 2007)

secondary data key findings20
Secondary Data – Key Findings

General backpacker needs and requirements

  • Require a developed infrastructure for travelling, especially in the forms of public transport, information while travelling, Internet cafes, laundromats and accommodation
  • Main information needed to plan a trip is through Internet and word of mouth
  • Backpacker destinations require fewer infrastructures than high-end tourists as backpackers are less demanding
  • International Student Identity Card used for access and discounts

General backpacker travel motivations

  • Main motivation is to explore other cultures, followed by excitement and increased knowledge
  • Like relaxation time
  • Younger travellers want more social activities
secondary data key findings21
Secondary Data – Key Findings

Global transport and accommodation trends

  • Main transport used to reach a destination is air
  • Younger backpackers make more use of rail, coach, tour busses and hitchhiking and walking
  • Higher disposable income and therefore often make use of hotel accommodation
  • Backpackers from Slovenia, UK, Canada and Mexico are more likely to make use of backpacker hostels, while those from Hong Kong and South Africa use them less frequently
  • South African backpackers are more likely to stay in hotels or with friends and family. Travellers from Czech Republic and Slovenia very rarely stay with friends and family.
  • Choice of accommodation closely related to motivation for travel
  • Increase in quality and professionalism in youth travel accommodation due to new markets and peer-to-peer reviews conducted online
  • Higher star rating means higher profit as higher rates can be charged
  • Hostels chosen based on location and price
secondary data key findings22
Secondary Data – Key Findings

Global backpacker accommodation use (Staywyse, 2007)

secondary data key findings23
Secondary Data – Key Findings

Average spend

  • Average daily spend generally low and is usually about US$20 a day
  • Expenditure closely related to income and average trip length
  • Destination visited and length of trip influences expenditure
  • Backpackers visiting Australasia, New Zealand, Central/Southern Africa and South America tend to have the highest total budgets for their trip

Average spend per backpacker over whole visit to South Africa (EciAfrica Consulting, 2007)

secondary data key findings24
Secondary Data – Key Findings

Activities

  • Most popular activities include visiting historical sites and monuments, walking and trekking, sitting in cafes and restaurants and shopping, while the least popular activities are academic study and learning a language.
  • Undertake a wide range of activities
  • South African backpackers more likely to undertake academic study
  • In Cape Town, most popular activities include exploring Table Mountain, Green Market Square, Cape Point, Robben Island and the Castle; a wine tour and a township tour

Length of stay

  • Average length of stay 63.5 days
  • Longest trips taken to Australasia, North America, Indian sub-continent
  • Shortest trips taken to Eastern Europe, North Africa, Southern Europe and Central / Southern Africa
secondary data key findings25
Secondary Data – Key Findings

Backpacking destinations

  • Europe popular because of availability of good public transport, large numbers of hostels, budget accommodation and variety of work exchange programmes
  • Australia and New Zealand also popular destinations because of the range of working holidays available
  • Destinations most popular: Southeast Asia, Australasia and South America
  • North America popular for older backpackers
  • Female backpackers more likely to travel to Western Europe, the Middle East and Central/Southern Africa while males are more likely to travel to Eastern Europe, North, Central and South America.
  • Least experienced backpackers visit more westernised areas of Europe, while seasoned travellers prefer more ‘challenging’ destinations such as South America, China/Japan and the Indian sub-continent
  • Most backpackers follow popular routes which are set out in guidebooks
secondary data key findings26
Secondary Data – Key Findings

Backpacker destinations in South Africa

  • Most establishments: Western Cape, Eastern Cape, Kwa-Zulu Natal, Gauteng and Mpumalanga
  • Limited accommodation in Free State, Northern Cape, North West and Limpopo
  • Significant clusters of backpacker accommodation establishments along Garden Route, Wild Coast, Kwa-Zulu Natal coast, Hogsback and Nelspruit
  • Backpacking plays a large role in the economies of Coffee Bay, Jeffrey’s Bay, Mossel Bay and Oudtshoorn

South African backpacker accommodation survey

  • Key issues are lack of international and domestic marketing of SA as a competitive destination, lack of responsiveness at a provincial and municipal level to backpacking issues, a lack of regulations and new investments
  • Other issues around linkages with other enterprises, involvement in associations and the effects of government measures on businesses
  • Most common memberships with BSA, local and provincial tourism organisations and less frequently, organisations such as FTTSA
secondary data key findings27
Secondary Data – Key Findings

Infrastructure

  • Needs infrastructure separate to, but parallel with mainstream tourism infrastructure
  • Requires inexpensive transportation system, low priced hotels, youth hostels, shops, nightclubs and coffee houses

Youth travel demand

  • Decline in demand for 2009
  • Increase in demand related to increased marketing and product diversity
  • New partnerships set to increase demand

Volunteer tourism

  • South Africa most popular destination
  • Average length of placement: 1-3 months
  • Usually self-financed
  • Volunteers mainly drawn from USA
secondary data key findings28
Secondary Data – Key Findings

Impacts of backpacker tourism

  • Backpackers may settle down and establish businesses in a region
  • Contributes to local economy as backpackers purchase local goods and services
  • Money spread to wider geographical area than with mainstream tourism
  • Pride and consideration for local communities and local development
  • May push locals out and gentrify an area

Shortcoming for local development

  • Industry is predominantly white-owned and dominated
  • Developments continually taking place along already established tourist routes

Demand side challenges

  • Lack of support from national and provincial government
  • Challenges for entrepreneurs with regard to marketing, financing and attracting new tourists
  • Problems with zoning and regulations
primary data key findings suppliers lodging
Primary Data - Key Findings-Suppliers: Lodging
  • Overall, business doing great for most: 71 % reported increasing business in past 5 years
  • All were members of BSA and agree that backpacking associations are required to:
    • Maintain standards within industry
    • Assist with marketing
    • Assist with provision of information
    • Offer assistance to SMMEs
    • Provide networking platforms
    • Government lobbying
primary data key findings suppliers lodging31
Primary Data - Key Findings-Suppliers: Lodging

Advertising

Internet and word of mouth are main advertising channels

primary data key findings suppliers lodging32
Primary Data - Key Findings-Suppliers: Lodging

Seasonal occupancy rates

Summer - most popular backpacking season as shown by occupancy rates

However all other seasons are not too bad

primary data key findings suppliers lodging33
Primary Data - Key Findings-Suppliers: Lodging

Visitor characteristics

  • Short to medium length of stay 7-14 nights
  • Domestics have short advance booking times
  • African tourists book about 3 months in advance
  • Europeans & Americans about 3-6 months in advance
  • Europeans bring the most yield/per visit followed by North Americans and domestics
primary data key findings suppliers lodging34
Primary Data - Key Findings Suppliers: Lodging

Top five source markets with highest yield - 2008

  • UK
  • Germany
  • Domestic
  • USA
  • Netherlands
primary data key findings suppliers lodging35
Primary Data - Key Findings-Suppliers: Lodging

Importance-performance of lodging facilities

  • Top most important lodging attributes to backpackers (supply):
    • Friendly staff, safety and security and clean beds (score 4.71 each out of possible 5)
    • Clean bathrooms (score 4.57 out of possible 5)
    • Friendly guests (score 4.43 out of possible 5)
    • Overall cleanliness (score 4.29)
    • Staff knowledge of local activities and attractions and advance booking facilities (score 4.14 each)
primary data key findings suppliers lodging36
Primary Data - Key Findings-Suppliers: Lodging

Challenges for growth and development in Cape Town

  • Minimal to lacking government commitment,
  • Lack of marketing domestic and international
  • Safety and security/crime
  • Lack of marketing support for SMMEs
  • Skills development and training
  • Lack of networking
  • Negative perceptions towards backpacking
  • Cape Town winter
  • Public misconception of industry
primary data key findings suppliers lodging37
Primary Data - Key Findings-Suppliers: Lodging

What to do going forward

  • Working on changing perceptions about the sector and improve the image
  • Provide marketing support to SMMEs
  • Improve safety and security
  • Standardise laws and regulations
  • Sector specific marketing campaigns
  • Provide government assistance
  • Establish skills development and training programmes
  • Improve communication and networking within sector
primary data key findings suppliers tour operators
Primary Data - Key Findings-Suppliers: Tour Operators

Languages in which services are offered

  • German
  • Spanish
  • Afrikaans
  • Xhosa
primary data key findings suppliers tour operators39
Primary Data - Key Findings-Suppliers: Tour Operators

Challenges

  • Need for grading system for shark and whale operators
  • Strict compliance with standards and high standards for vessels
  • Assistance to small operators
  • Funding for trade shows
  • Sort out department of transport
  • Financial assistance from government
  • Reduction in crime and improvement of safety
primary data key findings suppliers attractions
Primary Data - Key Findings-Suppliers: Attractions

Language Schools

  • Mostly operate all year round
  • Operate at 90+ % capacity in summer
  • Operate at 70-90% capacity other seasons
primary data key findings suppliers attractions42
Primary Data - Key Findings-Suppliers: Attractions

Main sources of business

Europe seems to be major source market followed by Africa and South America

primary data key findings suppliers attractions43
Primary Data - Key findings-Suppliers: Attractions

Challenges

  • Lack of awareness of their sector
  • Safety and security and crime
  • Negative South Africa reputation abroad
  • Competition from other destinations
  • Lack of government recognition and support
  • Visa regulations
  • No standard regulation as they currently self-regulate
  • Lack of exposure from SAT
  • Shortage of cheap accommodation options
primary data key findings demand side demographics
Primary Data - Key Findings-Demand side: Demographics

Gender & Age

Gender ratio: 40% male and 39% female

25-29 age group was largest followed by 20-24

primary data key findings demand side demographics45
Primary Data - Key Findings-Demand side: Demographics

Ethnicity & origin

  • Predominantly White (68.2%), with a few Asians (4.5%) and Hispanics (3.4%)
  • Blacks and Pacific Islanders represented a small proportion of 2.3% each
  • Predominantly from Europe (64.7%), with a few from Asia and Australasia (10.6%), and North and South America (8% each)
  • Domestics and Africans represented only 4.5% and 3.4% each respectively.
  • UK was single largest source country (28.2%) followed by Germany and Brazil with 7.1% each
primary data key findings demand side demographics46
Primary Data - Key Findings-Demand side: Demographics

Education

Largest single group: undergraduate degree group then post graduate degree

primary data key findings demand side demographics47
Primary Data - Key Findings-Demand side: Demographics

Monthly Income

Largest income group: US$ 1 000-US$2 000

primary data key findings demand side travel patterns characteristics
Primary Data - Key Findings-Demand side: Travel patterns & characteristics

Underlying Motive to Travel

Most backpackers driven to take a trip by their desire to explore new places

followed by need to learn about other places and cultures

primary data key findings demand side travel patterns characteristics49
Primary Data - Key Findings-Demand side: Travel patterns & characteristics

Main purpose of visit

  • Holiday (69.3%)
  • Visiting friends and family (11.4%)
  • volunteerism (10.2%)
  • Business (6.8%)
  • Attending a conference (4.5%)
  • Sport event (4.5%)
  • Shark diving (2.3%)
  • Study (4.5%)
  • Field-work and internship (1.1% each)
primary data key findings demand side trip planning
Primary Data - Key Findings-Demand side: Trip planning

Time between destination selection & travel

Most people travel 6 months after they decide on destination, a few take 2-3 years planning their trip

primary data key findings demand side travel patterns characteristics51
Primary Data - Key Findings-Demand side: Travel patterns & characteristics

How the tourists heard about Cape Town

primary data key findings demand side within destination travel patterns
Primary Data - Key Findings-Demand side: Within destination travel patterns

Repeat visitation and travel group size

  • Domestics had the highest repeat visitation rate. The rest had just about the same
  • Average travel group size was 5
  • 31% travelled alone
  • 22% in couples
primary data key findings demand side within destination travel patterns53
Primary Data - Key Findings-Demand side: Within destination travel patterns

Mode of transport

  • Air transportation (61.4%) main mode of transportation to Cape Town
    • followed by bus (20.5%)
    • personal car (11.4%)
    • 8% travelled to Cape Town by overland truck
  • Within destination, most common mode of transport - rental car (73.9%),
    • followed by foot (44.3%)
    • public transport (31.8%)
    • metered taxi (29.6%)
    • tour buses (19.3%)
    • 3.3% of the respondents used friend’s car
primary data key findings demand side within destination travel patterns54
Primary Data - Key Findings-Demand side: Within destination travel patterns

Accommodation choices

  • Majority (88.6%) used backpacker hostels for accommodation during their trip to Cape Town
  • A few used friends and relatives (8%)
  • Hotels (5.7%),
  • Home-stays (6.8%)
  • Guest houses (4.5%)
  • Camping (4.5%)
  • B&B (1.1%)
primary data key findings demand side within destination travel patterns55
Primary Data - Key Findings-Demand side: Within destination travel patterns

Reason for selecting accommodation type

  • Cost 75%
  • Accessible location (44.3%)
  • Community spirit (27.3%)
  • Youth dominated (22.7%)
  • Activity location (15.9%)
  • Informality (15.9%)
primary data key findings demand side within destination travel pattern
Primary data key findings-Demand side:Within destination travel pattern

Length of stay

  • Overall average length of stay - 10.7 nights
  • Europe had largest (11.7 nights) length of stay
primary data key findings demand side within destination travel pattern58
Primary Data - Key Findings-Demand side:Within destination travel pattern

Spend by origin and category (in Rands)

  • Average spend/trip was R7 737
  • Highest spending category was food & beverage (R1 544)
  • *Note that categories don’t add up to total due to omission of some spending categories by respondents
primary data key findings demand side within destination travel patterns60
Primary Data - Key Findings-Demand side: Within destination travel patterns

Activities participated in

primary data key findings demand side competition
Primary Data - Key Findings-Demand side: Competition

Other destinations considered before settling for Cape Town

  • Other domestic destinations considered included:
  • Johannesburg (4.5%)
  • Garden Route (2.3%)
  • Mpumalanga, Limpopo and Port Elizabeth (1% each)
primary data key findings demand side perception and satisfaction rating
Primary Data - Key Findings-Demand side:Perception and satisfaction rating
  • Satisfaction always rated better than perception, implying destination far exceeds tourist expectations prior to visiting
primary data key findings demand side importance performance
Primary Data - Key Findings-Demand side:Importance-Performance

Tourists’ viewpoint

  • On almost all (except 5) attributes destination’s performance exceeds tourist
  • importance rating implying tourists requirements are met and exceeded
  • Poor performance areas include: cost, overall cleanliness, clean beds,
  • clean bathrooms and safety & security
i p grid for backpacking accommodation attributes tourists perspective
I-P grid for backpacking accommodation attributes: Tourists’ perspective
  • Accommodation service providers perform above average on all attributes
  • However, they also concentrate too much and possibly waste resources
  • on some attributes not important to tourists - attributes 8, 9, 19, 21 & 22
comparison of supplier s and tourists view of i p of backpacking accommodation attributes
Comparison of supplier’s and tourists’ view of I-P of backpacking accommodation attributes
  • Suppliers under-estimate both their performance on certain attributes and
  • importance of some attributes to tourists
  • It is of particular importance for providers to understand what is important to their
  • customers in order to satisfy them
action plan
Action Plan
  • Stakeholder Input
  • Prioritise actions
  • Finalise Action Plan
action plan review process
Action Plan Review Process

Activity 1

  • Split into 4 groups (1 group per action)
  • Discuss and respond to key group actions
  • Consultant to record concerns, questions, new actions
  • Overall discussion based on group summaries (and update action table, if required)

Activity 2

  • Industry to rate actions as High, Medium and Low Importance (in groups)
  • Industry to prioritise BIG 5 actions
  • Consultant to record ratings
  • Post workshop action plan adjustments and re-circulation
developmental action plan
Stakeholder Input
  • Key colour codes:
DEVELOPMENTAL ACTION PLAN

High priority area overall

High priority actions

No fill represents a low priority area

draft action plan
Draft Action Plan

Key Area 1: Industry organisation and government support

draft action plan70
Draft Action Plan

Key Area 2: Development and growth

draft action plan71
Draft Action Plan

Key Area 2: Development and growth (cont.)

draft action plan72
Draft Action Plan

Key Area 3: Marketing

draft action plan73
Draft Action Plan

Key Area 3: Marketing (cont.)

draft action plan74
Draft Action Plan

Key Area 4: Skills and human resources