SA Tourism invests in German market

SOUTH African Tourism has invested DM 250,000 (just over R1m) to promote South Africa in the new international summer brochures of TUI, the German tour-operating giant. SA Tourism chief operating officer, Moeketsi Mosola, says the investment covers co-branding of South Africa and marketing space in TUI's new summer brochures, which were launched for the first time outside Germany at Spier Wine Estate near Stellenbosch earlier this week. He says the amount spent by SA Tourism covers 40% of costs, while TUI carries the remaining 60%."For every Rand we have spent, we expect at least R25 in return." Mosola says the investment was made on a 12-month basis and SA Tourism will evaluate TUI's performance before reinvesting. "TUI has identified South Africa as a strategic growth market and is looking at investing in local holiday resorts," he says. "We will engage in aggressive joint marketing initiatives in Germany over the next cycle of decision-making." The SA Tourism/TUI deal forms part of SA Tourism's co-operative marketing initiative in terms of which the organisation looks for key partners worldwide that are committed to long-term investments in South Africa. SA Tourism puts up marketing funds effectively subsidising tour operators' risk of entering the market. SA Tourism has already signed more than 100 similar agreements with tour operators from the UK, France, the Netherlands, USA, Canada, India and Australia. TUI currently brings 40,000 German tourists to South Africa annually and has recorded a 15% growth in tourist numbers in 2001. It expects growth to continue driven by attractive pricing for packages that this year fell 9% from 2000. (Hilka Birns)