Germans love SA, but remain very demanding market

THE tourism research conducted by Monitor on the German market for SA Tourism (SAT) revealed that unlike the inbound UK market, more German tourists come to South Africa on packaged tours. By implication this means that Germany has in fact more fully-paying tourists than the UK, SA's number one market. German VFR and independent travellers number only 48% of their total arrivals to SA compared with 74% of UK travellers. Monitor's research into this market took into account only the inbound view as it pertained to current tour operators sending tourists to SA. SAT says it intends to conduct a comprehensive consumer survey in the near future, as was undertaken in the US. Germany has an estimated 5,24 million long haul holiday travellers, placing it in fourth position behind Japan, the US and the UK. German travellers to South Africa generally stay longer; spend relatively more (in 2001, the average length of stay was 17,5 days and Germans were spending on average R1 319 per day); have a greater geographical spread; have a higher repeater rate and a high satisfaction rate when compared to many other markets. During the German workshop on Wednesday, it was disclosed that the Germans were on average paying about 9% over and above the rack rate for package tours to SA as compared with the 12,1% being charged to UK consumers. The difference was that Germans didn't generally mind paying the additional cost because the experience was just about guaranteed. Monitor found that in many cases, German tour operators preferred to deal with only one South African tour operator who typically has around 80% of their business to SA. German business practices were found to operate within a strict regulatory framework and driven by a strong sense of loyalty. Germans were also found to be less concerned about crime, but seemed more concerned about health issues such as malaria. In this respect, Monitor found that some SA provinces marketing themselves as malaria-free areas were actually perceived as implying that the remaining provinces in the country are malaria endemic areas. Germans also noted the fact that SA was being sold as a one-sided destination which required extensive travelling around but lacked 'stay put' options. Air capacity again made it onto the negative issues list. Value for money, beauty, no jet lag and a developed infrastructure were seen as plus points for the country. SAT's joint marketing agreements with certain tour operators in Germany appear to be paying dividends with SA capturing over 10% market share of certain segments such as the 'bargainer' segment and the 'low budget family break' segment. It was found to be imperative that SA defend these markets. Two further segments were identified for growth, namely the 'luxury tour' segment and the 'German medium tour' segment. The luxury tour segment were identified as being mostly retired, well travelled tourists who travel as couples or in a group and stay in SA for an average of 12 days. They mostly stay in hotels; spend on average R634 per day in SA and also visit on average 2,9 provinces. This group is very interested in the natural beauty, but also the political change over. It was found that in order to attract this market, SA had to sell an image of being a vibrant country which has undergone a miraculous political and social transformation. This group makes use of tourist brochures for much of their information. The sales pitch is that they will be pampered in SA which offers them value for money, a world class product and an experience which will broaden their horizons. The 'medium tour' market average between 25 to 35 years with most travelling in groups and staying for an average of 16 days. They mostly stay in hotels, but also have a high affinity for B&Bs, they spend about R419 per day in SA and visit on average 3,3 provinces. This group are very curious and enjoy the scenic beauty and wildlife on offer in SA. A way of attracting them is to project an image of wide open spaces and luxury accommodation. Referrals by friends and relatives are