Biz-Community (Cape Town)

7 June 2012

South Africa: Tourism Industry Disappointed Over SAA's Withdrawal of London-Cape Town Route

Reaction to the recent announcement by SAA that effective from 16 August 2012, passengers travelling from London to Cape Town will fly via the airline's hub in Johannesburg - OR Tambo International Airport, has been one of disappointment from the tourism industry.

SAA currently has two daily services between London Heathrow and Joburg, and will be increasing its capacity on these flights by 13 percent through the use of larger aircraft to accommodate passengers on this route. SAA also offers up to 38 flights daily between Cape Town and Johannesburg.

Mariëtte Du Toit-Helmbold, Cape Town Tourism CEO, said: "This is disappointing news for Cape Town's tourism industry and we fear it could affect tourism arrivals from the UK and the rest of Europe negatively.

Whilst SAA's growth strategy's emphasis on expansion of routes into Africa and new markets like South America and Australasia is encouraging, the issue of direct air access to Cape Town is again highlighted. Airlines must make economic sense.

When a flight is cancelled this is the reason. Decreased business travel, as a result of troubled economies, continues to plague key source markets.

The business traveller is a major contributor to covering flight expenses, which points to a need to work hard on forging stronger business ties in addition to the leisure market."

Risk of losing visitors

Nils Flaatten, CEO of Wesgro commented: "Our research has indicated that the London-Cape Town route still holds strong economic value for the Western Cape and neighbouring Eastern Cape. International airlines identified this and are increasing their capacity during peak season. Many business and leisure travellers from the US are using London as a connecting flight into Cape Town and we are at risk of losing these visitors, as the travelling time has been extended even further. A national debate on airlift strategy is urgently required to discuss direct flights into Cape Town International Airport as well as the other regional airports. Poor economic conditions in the global north and escalating fuel prices were making it difficult for many international airlines to remain competitive. These market conditions would also have an impact on the pricing of domestic flights and the ability to move tourists throughout South Africa."

A shock and a huge blow

Nils Heckscher, MD of Winchester Mansions said: "SAA's announcement to withdraw its Cape Town - London service is a shock and a huge blow to us. Many of our guests, whether from the UK or other European cities have enjoyed this service for its convenience and good timing. The inconvenience of having to go through OR Tambo International may well put off some potential visitors to Cape Town as not all visitors are on a multi-city itinerary. However, the fact that aircraft will be redeployed to better serve SAA's growing Accra, Mumbai and Perth routes and to add Abidjan to the network is positive news for the development and growth of new leisure and business tourism markets."

SAA has confirmed that it will continue to use Cape Town as a draw card in its marketing promotions and campaigns, and Cape Town Tourism and Wesgro will continue to seek joint marketing opportunities with SAA in the markets they operate in to complement demand driving marketing strategy and campaigns. Said Du Toit-Helmbold: "The announcement further strengthens the need for consolidated marketing efforts in our destination between the different spheres of government, agencies and the private sector. It is also important to focus on growing our business tourism sector and the demand for Cape Town as a competitive and year-round business tourism destination."

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