Cape Town | Cape Winelands

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2013

Great Wine Capitals Global Network Market Survey

“The Pillars Of Wine

Tourism Performance”

Executive Summary For Cape Town | Cape Winelands


2013

This summary report highlights the wine tourism performance of Cape Town,

a member of the GREAT WINE CAPITALS GLOBAL NETWORK (GWCGN).

We collected data from the GWCGN capitals during the summer of 2013.

The number of survey responses for Cape Town was only 13, which severely

limited the scope of the analysis and conclusions. Nevertheless, we highlight

some key findings below.

Please, consider the Cape Winelands of South Africa when referring to Cape

Town in this report


Wine Tourism Revenues Breakup

Wine Tourism Revenues and Top

Sources of Profits

Wine Tourism

Revenues

Break−up

Wine sales 70 %

Accomadation 9 %

Food 10 %

Tastingfees 2 %Merchandising 3 %

Hosting / Rest 6 %

For the 2013 survey, we find that

lowpriced wines (price less than

$15/bottle) represent a top source

of profits (with 54% of responses) in

Cape Town. The next two top

sources of profits are Hosting

Events and highend wines on equal

footing with Food Services.

Top Sources of Wine Tourism Profit

38 % Greater $ 25 each

Merchandising

Btwn $ 15 and $ 25 each

Tasting fees

Accommodation

Mixed wine

Food services

Cross selling

Hosting events

Wellbeing activities

Less $ 15 each

15 %

23 %

8 %

54 %

8 %

15 %

38 %

0 %

46 %

0 %

Top Sources of Profit

Among all great wine capitals,

Cape Town has the largest

percentage of revenues associated

with Hosting events.

From the standpoint of Cape Town

wineries, Wine Sales, Food and

Accommodations are the most

important sources of revenues.


Infrastructure investment is the

top investment category for the

20122013 period in Cape Town,

on equal footing with Training

Employees. Improving Services is

the second top category.

Investments in Wine Tourism

Wine Tourism Investments and

MarketingJust like in the 2012 survey, we again find that

the top marketing tool used across the sample

of all great wine capitals is a winery’s Own

Website. Nevertheless, for the specific sample

of Cape Town wineries Own Website is not a top

category. Social Networks, Region's Fame and

Citations by guides are the top three marketing

tools, using one's Own Website only comes in

eighth place. On the other hand, Cape Town

distinguishes itself amongst all the great wine

capitals by a promotional strategy that strongly

emphasizes Authentic Experience.

Top Marketing Tools Used

52 % Infrastructure

Imp services

Market positioning

Training emp

Cultural Entert.

None

Strategic partn.

43 %

52 %

43 %

13 %

35 %

13 %

Top Investments

0 %

Men

tion

ed o

ther

web

site

s

Bor

chur

es

Soc

ial Net

wor

ks

Spc

lzed

med

ia

Tou

r Op.

App

elat

ion Tou

rism

xhib

Tra

vel A

genc

ies

8 %

55 %

8 %

0 %

25 %

0 %

0 %

34 %

8 %

0 %

17 %

Sus

tain

able

Cita

tion

s

Ref

erra

ls

Aut

hent

ic E

xper

ienc

e

Mai

ling

/ New

slet

ter

Cult

ural

Fes

tiva

ls

Win

efai

rs

Win

e Co

ntes

ts

Reg

ionf

ame

Use

mob

ile a

pps

42 %

8 %

33 %

0 %

8 %

8 %

8 %

8 %

16 %

43 %

Ow

n w

ebsi

te

Tou

rism

Off

Tra

diti

onal

Ad

Tas

ting

Eve

nts


In terms of Numbers of Visitors per

winery, Cape Town has the highest

average among all great capitals.

However, it has the lowest average in

terms of Spending per Visitor. Cape

Town wineries welcome the greatest

percentage of Local visitors amongst

all great capitals (43%). In terms of

age groups, Cape Town and other

wine capitals like Florence appear to

attract a younger clientele. 46% of

visitors are females.

Tourists Characteristics

Nationals 27 %

Internationals 31 %

Locals 42 %

36 to 55 42 %

Above 17 %

18 to 35 41 %

Tourists per Origin

Tourists per Age Categories


Regarding External Factors

perceived by wineries to help

business or not, Cape Town

wineries testify that the Natural

Beauty of the region and Location

are key positive factors. Other

positive factors are Internet use

and Cooperation with Other

Wineries.

Consistent with the findings of the

2012 survey they report that

Signage, and Public Infrastructures

can be factors that impede

business. Opinions regarding the

impact on business are divided

regarding Cooperation with other

Businesses, Marketing by Tourism

Offices and Membership to any

Business Association.

Positive and Negative Factors for

Business

Totally negative

Somewhat negative

Neutral

Somewhat positive

Totally positive

Landmark Natural B Location Access OtherAct LocalFacilities CoopwBus MarkTO PublicInf Signage

50%

0%

10%

20%

30%

40%

60%

GWCmenber Association ChamberorBusA Tousism A TourOp CoopWineries Internet FameRegion TourismPolicy

50%

0%

10%

20%

30%

40%

60%

70%

80%

80%

70%

External Factors − Part 1

External Factors − Part 2


The 2013 edition of the GWC survey

has produced some interesting

findings for the wineries of Cape

Town. Cape Town attracts a large

percentage of younger and largest

percentage of local tourists by

comparison with other great wine

capitals.

Cape Town wineries demonstrate a

commitment to invest in

Infrastructure, Training Employees

and Improving Services, which

appears to support the activities that

bring in more revenues and profits,

such as highend wine sales, Hosting

Events and Food Services.

Overall, Cape Town wineries use a mix

of promotional tools, with a

greater emphasis on modern communication

tools (Social Networks) vs. standard ones

(Tour Operators). Cape Town wineries stand

out in the sample of great wine capitals (with

BilbaoRioja) for emphasizing the notion of

Authentic Experience in their marketing stra

tegy. Cooperation with Other Wineries is also

perceived as a strong positive factor.

One must exercise caution when trying to

extend managerial implications from a small

sample of wineries to the whole the region.

Nevertheless, it appears that perhaps there is

room for Cape Town wineries to use more

their Own Websites as a means to enhance

their connectivity to clients, or even tools

such as Mobile Apps. There also seems to be

opportunities to create a better cooperation

with Tourism Offices and other complemen

tary tourism related businesses, as a means

to enhance revenue windfalls.

Managerial Implications and

Conclusion

Copyright GWCGN. No part of the content of this document is to be reproduced in any media without the expressed consent of GWCGN For any further information: [email protected]


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