Changes to the PACA Process Gtz

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					            Mbombela PACA Case Study
              GTZ BDS/LED Programme South Africa




                                  John Lawson

                                November 2005




This case study describes the application of a variation of the PACA methodology as
applied to the Tourism and Business Services sectors of Mbombela, Mpumalanga,
South Africa. The variation of the PACA methodology seemed to improve the quality
of project selection, the commitment to project implementation and eventual scale of
impact. Sector value chain mapping was introduced as a framework for data
collection, analysis and project selection. The sequence of activities was changed to
reduce diagnostic risk and increase levels of commitment to implementation.




jlawson@mweb.co.za                      1                               3/29/2013
Contents Page
Context ...................................................................................................................... 3

Approach ................................................................................................................... 4

Objectives .................................................................................................................. 6

Process ...................................................................................................................... 7
  Changes to the PACA Process .............................................................................. 7
  Process Preparation ............................................................................................... 8
  Workshops and Interviews: Business Services ...................................................... 9
  Findings: Business Services................................................................................... 9
  Initiatives: Business Services ............................................................................... 11
  Workshops and Interviews: Tourism Sector ......................................................... 12
  Findings: Tourism ................................................................................................. 12
  Initiatives: Tourism Sector .................................................................................... 16
  Way forward: Business Services and Tourism ..................................................... 16

Results / Outputs ..................................................................................................... 17

Interpretation of Results / Outcomes........................................................................ 24
   1. LED process is interactive, involving LG, private sector and civil society ......... 24
   2. LED process is becoming institutionalized ....................................................... 25
   3. LED process is becoming more professional. .................................................. 25
   Impact: Local economic opportunities are continuously identified and utilised ..... 25

Stretching lessons learned ....................................................................................... 25
  Improved quality of project selection .................................................................... 25
  Increased chances of Implementation .................................................................. 26
  Stronger local capacity ......................................................................................... 26

Suggestions for technical implementation................................................................ 26


Appendix 1: Examples of Market Development Linkages ........................................ 30

Annexure 2: Extracts from Newsletters .................................................................... 33




jlawson@mweb.co.za                                          2                                                3/29/2013
Context
Local Economic Development (LED) has been identified as a key means of
improving the economic prospects of South African citizens. The GTZ BDS/LED
Programme aims to introduce and establish more effective LED approaches to
South Africa. A municipal area located in the Eastern part of the Mpumalanga
province, Mbombela was chosen by GTZ as a pilot area to test a combination of
simple LED instruments that were combined to form an LED process.

This case study focuses on the rapid appraisal part of the process, where the PACA
methodology was adapted and applied to two sectors, Tourism and Business
Services.




The Mbombela municipal area includes a few towns, semi-rural and rural areas. The
largest town is Nelspruit, which is also the capital of the Mpumalanga province. It is
located in the centre of the Mbombela area, at the intersection of the N4 which links
Gauteng to Maputo, and the N40 (north-south) arterial. The population of Mbombela
is estimated at 500 000 consisting of an estimated 127 000 households.

The economy is well established with a healthy diversity of industry sectors. The
economy has been growing at about 6% per annum, approximately 3% higher than
the South African average. The tertiary industries such as trade, retail, service
industries and professional services employed more than 50%of the Mbombela

jlawson@mweb.co.za                      3                                3/29/2013
employed workforce. Unemployment is estimated at 45% and 55% of the population
lives in poverty.

Current state of LED
The business landscape in South Africa is still very fragmented with very little
collaborative effort taking place. Social capital and networks are lacking and the
facilitators at the meso-level (between government and business) are either non-
existing or under-resourced. Limited initiatives in clustering have been started, these
typically involve large firms.

Both sector development and local economic development are receiving increased
attention at government levels, but very few businesses have had any form of
effective support. The GTZ Business Development Services and Local Economic
Development (BDS/LED) Programme has actively supported local government in
South Africa in identifying and adopting effective approaches to LED.

The Mbombela municipality has for some years initiated LED interventions with
varying degrees of success. It is now searching for more effective and efficient
approaches and instruments for initiating and accelerating local economic
development. More specifically, the Mbomela municipality has engaged and
supported the local business chambers to make an increased contribution to local
economic development and have partnered with GTZ to increase the role of the
private sector in LED.

The local chamber of business was selected as facilitation partner. LCBT is an
established business chamber with some full time capacity, making a strong LED
facilitation partner in the South African context. The local facilitator partner worked in
close collaboration with the NAFCOC (the next largest chamber) and the Mbombela
municipality.

APPROACH
The BDS/LED programme and its partners believe that one of the best ways to
assist in overcoming the multiple challenges to local and regional economic
development is to introduce efficient, effective and low-cost approaches by which
private and public sector and civil society of local and district municipalities get
empowered to start LED processes and take up local and regional economic
opportunities.

The approach to LED by GTZ BDS/LED is captured as key principles below:
LED can be defined as activities Principles of sound LED:
by                                Pursue a demand- and opportunity-driven
 local government                   approach, LED is intrinsically opportunistic
 local business associations     Focus on opportunities rather than barriers,
 local companies                    bottlenecks, don’t compile endless lists of

jlawson@mweb.co.za                        4                                 3/29/2013
 other stakeholders                           problems
alone or in close collaboration               Prefer rapid interventions with a sustainable
which                                          impact
 tackle market failures                      Start with low cost activities
 strengthen the                              Pursue a market-driven approach, remedy market
   competitiveness of local                    failure, make markets work
   firms                                      Target organic growth
 remove bureaucratic                         Reduce complexity, of organisational patterns, of
   obstacles for local firms                   planning methodologies
 create a unique advantage                   Use what is there – don’t build parallel structures
   for the locality and its firms             Pursue a bottom-up approach
                                              Apply the subsidiarity principle (delegate)
                                              Build trust, seek collaboration and synergies
                                              Emphasise empowering and learning


LED instruments used
This specific intervention aimed to establish sustainable local capacity to facilitate
LED in the private sector. A suitable LED facilitation process integrating a variety of
existing LED instruments1 was developed to test in Mbombela. Core to the range of
LED instruments used to make up the annual LED process cycle, is PACA, the
instrument to collectively determine the annual LED priorities for a particular sector.

PACA2 is a set of tools to come up with a
diagnostic of the competitive advantages
of a locality, and with concrete, practical
proposals to stimulate the local or regional
economy (PACA Exercise). In the wider
sense, it is a participatory, bottom-up,
pragmatic approach to local economic
development (PACA Project). Market
Development can be described as a set of
activities that try to make the interaction
between demand and supply more
effective

Both PACA and the Market Development Approach (MDA) were introduced to South
Africa through the GTZ BDS/LED programme. Approximately seventy LED
practitioners have been exposed to the methodologies through training and
exposure trips.

1
    Tools, methods or methodologies that have been proven and tested in South Africa
2
    For more about PACA see www.mesopartner.com

jlawson@mweb.co.za                               5                                     3/29/2013
Previous PACA’s in South Africa were characterised by external consultants
dominating the PACA process and ending up with projects that are difficult to “sell”
to local champions to execute them. Instead this time, mobilising locals to act on
LED was prioritised over optimal selection of strategic interventions.

By reducing the external intervention to one LED process consultant to act mainly as
LED process technical advisor, local responsibility for the process was established
from the outset.

Objectives
The intervention aimed to establish a self-sustainable local LED facilitator (LCBT) to
facilitate the LED process to improve LED vibrancy especially in the private sector of
Mbombela. A new integrated LED process was tested in the process.

The LED process aims specifically to:
      Encourage the private sector to take the lead in determining priority
        interventions to improve sector systemic competitiveness
      Raise awareness, understanding, enthusiasm and commitment to
        changing systemic competitiveness through collective action.
      Establish an annual process cycle where a PACA (or other suitable)
        instrument is used once a year to determine priority change initiatives to
        improve local sector systemic competitiveness.
      Facilitate interaction between private and public institutions with regard to
        improving their contributions to sector development.

The Expected Outcomes from a beneficiary perspective are:
      Business leaders benefit from:
         o An improved understanding of the local economy’s relative strengths,
            weaknesses, unmet needs, potentials and immediate opportunities.
         o Initiatives that improve the systemic competitiveness of the sector.
         o New linkages that are established.
         o New collaborative relationships are established.
         o Catalytic opportunities where government is required are identified.
      Business development service providers find new opportunities to
        improve their competitive position in their local market.
      Government benefits from substantial increase in private sector
        contribution to LED, from a relatively modest investment to start the
        process.
The eventual impact on the local economy is improved economic growth, jobs and
equity that contribute to poverty alleviation.




jlawson@mweb.co.za                      6                                3/29/2013
For the sake of comparing cases with each other, this document will utilise the more
generic objectives framework below to evaluate results achieved in this intervention.


    The relevant overarching GTZ BDS/LED Programme Objectives:
    Outputs
    Perceptions of local economy and
    understanding of LED between private          A common vision of strengths and
    and public sector and civil society is        weaknesses of local economy is visible and
    enhanced and aligned                          documented
    Knowledge for sustaining the process has # local stakeholders (local champions and
    been transferred to the local level           others) using tools and instruments further
    Communication and interaction between         # business networks and public-private
    local stakeholders is stimulated and          communication channels being stimulated by
    improved                                      the PACA
    Feasible LED initiatives and projects are     # Feasible projects/ initiatives resulting from
    identified                                    the PACA exercise
                                                  # of local champions committed to further
                                                  process, # local stakeholders willing to
    Local LED stakeholders are mobilised          participate
    Outcomes
    LED process is interactive, involving LG, private sector and civil society
    LED process is becoming institutionalised
    LED process is becoming more professional.
    Impact
    Local economic opportunities are              Jobs created, investment, increased sales
    continuously identified and utilised by       (competitiveness), # new start ups. # new
    communities in SA                             linkages


Process
Two adapted PACAs were executed, one focused on Business Services and the
other on Tourism. The two PACA processes were executed by two distinctly different
organisational parts of LCBT, the one part focuses on Business in general, and the
other on Tourism, which makes up 50% of LCBT membership.

The Business Services PACA was executed 14 – 23 June 2005 and the Tourism
PACA the 5th – 14th of July 2005.

Changes to the PACA Process
Various changes to the PACA process were tested. Some changes proved
worthwhile and others failed. The business services PACA experimented for
example with holding two workshops per sub-sub sector. The main variations from
the normal PACA process3 are illustrated in the diagram below. The green coloured

3
    PACA is well documented see www.mesopartner.com

jlawson@mweb.co.za                              7                                   3/29/2013
blocks identify components that are changed in some way. Many of the changes are

      Enhanced PACA sequence of activities
Prepa-        Hypothesis         Internal   Way forward
ration:      development         Results-   development       Pre-   Implementation
* Orga Hyp-                     Workshop:                     sen-
 * Ad- oth- Kick-     Mini-     Diagnosis                    tation
vance esis off                      +           Interviews   event Rep Monthly Monthly Monthly
                    workshops
  info  Wks Wks                 Proposals                           ort Follow-upFollow-upFollow-up
                                                                          meeting meeting meeting
                         Fieldwork (1-2 weeks)



                                 PACA-Exercise (2-3
                                     weeks)

                                       PACA-Project
only slight. The variations to the PACA process will be discussed in detail in the
chapters on “Stretching Lessons Learnt” and “Recommendations for Technical
Implementation”.


Process Preparation
Extensive consultation and PACA training preceded the PACA execution. This was
necessary to ensure the organization was ready to shift its model of serving its
customers to include LED related activities. Initially the chamber had no interest in
PACA type activities and was content to focus on information services and hosting of
events. A shift in thinking was necessary before the intervention was feasible.

Introduction of the PACA activity shifted the LCBT role more towards development.
A key concern was how this new activity would be funded. The Mbombela
municipality agreed to raise funding for the first round of PACAs. The assumption
about subsequent sustainability of the process is that the new LED process would
add more value to the customer base, resulting in an increase in membership fees.

The preparation for the PACAs consisted of training the two key facilitators. The
approach was also introduced to the Chamber leadership. Subsequent to the
training, the PACA process was designed. The main sectors were selected and
subsequently the sub-sub-sectors to make up the mini-workshops.

The chamber organised all the PACA workshops and events, with backstopping
support by GTZ. Both PACAs were introduced to stakeholders with an executive
launch cocktail event on the 13th of June that included dignitaries, the local media
and other interested stakeholders.

jlawson@mweb.co.za                          8                                     3/29/2013
Workshops and Interviews: Business Services
A total of 10 mini-workshops were held and 10 Interviews conducted to engage 60 –
70 business leaders through the two week process. The business Services were
divided into the following sub-sub-sectors for 2 mini-workshops each:
       Financial and Insurance services
       Management consulting and Marketing Services
       Accounting and auditing services
       Technical Professional Services, and
       Skills development, Human Resource- and Human Resource Development
           Services

Most of the interviews took place after the internal results workshop. The internal
results workshop identified the likely priority projects and specifically what
information was required to eliminate/reduce remaining uncertainties pertaining to
the proposed interventions.

Findings: Business Services

Competitive Advantages                             Competitive Disadvantages
The economy is well established with a             The market is smaller than Gauteng. This limits
healthy diversity of industry sectors, which       the degree of specialisation by businesses. It also
makes it robust against the collapse of any        limits economy of scale, often reducing the ability
specific industry sectors. The others will keep    to compete on price.
the economy going. The economy has been
growing at about 6% per annum,
approximately 3% higher than the South
African average.
Good urban infrastructure in the form of           Many big orders go to Gauteng or Durban due
roads, buildings, electricity, sewage, water       to lower prices, faster response times, larger
supply exists. Substantial institutional           production capacities and greater specialisation
infrastructure exists.                             and expertise. Bad buying experiences with un-
                                                   professional local service providers also
                                                   encourage businesses to rather source from
                                                   Gauteng.
The location offers a good quality of life.        Corporates buy through their head offices in
Warm weather, attractive environment, good         Gauteng, then distribute to brances.
schools and a healthy variety of shopping
options.
There is ample evidence of entrepreneurial         Low levels of consumer awareness and
activity with access to capital. Most of the       education contribute to a proliferation of service
input factors (services, material, etc) required   providers that apply Unfair Business Practices.
by enterprises are available locally, and if       Consumers are for example being exploited by
not, Gauteng is not too far away.                  paying far too much for financial and insurance
                                                   services. Such unscrupulous activity reduces
                                                   consumer confidence in business services,
                                                   reducing sales by honest providers. The low
                                                   levels of education or exposure also requires
                                                   more time (and cost) of the sales process.
The Mbombela economy is well researched            Many service providers have a “Slowveld”


jlawson@mweb.co.za                                 9                                       3/29/2013
and a lot of data is available (but not easily   attitude to business which results in:
accessible).                                      Poor customer service
                                                  Unreliable delivery
                                                  Little flexibility on working hours
                                                  General lack of professionalism in business
                                                      services
Provincial Capital status has led to a large     This means new entrants, typically with a Gauteng
portion of the provincial budget being spent     attitude, penetrate local market easily. This means
and circulated within the local economy. It      local businesses are vulnerable to being put out of
has been a major contributor to the relatively   business.
high growth rate.
Mbombela is in close proximity to important      The largest constraint to growth of business
markets. The nature based tourism market is      services is the short supply of medium to high
world class, has a well established brand.       skills. Young professionals choose to leave town.
The sophisticated and demanding customers        Mbombela does not attract young professionals
drive excellence and innovation. The             from other locations. Government also attracts
Mocambican nature based tourism market           young professionals away from business as it
will follow a similar developmental pattern as   pays them better salaries.
the local market. The Swaziland market also
adds to local revenues. The large Gauteng
market is also in some cases viable to serve
from Mbombela.
                                                 Information on Mbombela economy is available
                                                 but not easily accessible. Investors are keen to
                                                 come live her but cannot make informed decisions
                                                 about where to invest. Information about good
                                                 business service providers is equally difficult to
                                                 access. This contributes to contract going to
                                                 Gauteng suppliers as the buyers cannot match up
                                                 with the best service providers.
                                                 Some government and business organisations
                                                 have a poor/slow payment culture. This causes
                                                 havoc for small business cash flow, and
                                                 contributes to business failures.
                                                 Mpumalanga and Mbombela suffer from a
                                                 reputation of corruption. Corruption in its
                                                 various forms is the one single threat that can
                                                 destroy the local economy, with devastating
                                                 consequences for employment and broad based
                                                 black economic empowerment. Procurement
                                                 processes are manipulated. Vested interests also
                                                 channel decision making away from public best
                                                 interest, for personal gain.
                                                 Public institution inefficiencies block/delay
                                                 certain transactions. An example is SARS
                                                 payment records that are not accurate, which
                                                 results in wrongful refusal of tax clearance
                                                 certificates required for tenders. Public business
                                                 support institutions are largely dysfunctional
                                                 (MEEC, MII, MTA, MADC). These organisations
                                                 have very strategic roles in the economy, which
                                                 translate into the denial of large numbers of jobs.
                                                 The factors above contribute to mistrust between
                                                 business and government. Although everybody

jlawson@mweb.co.za                               10                                     3/29/2013
                                     complains about it, there seems not to be a
                                     concerted and leveraged effort to address the
                                     issues. Social capital which is considered a crucial
                                     pre-condition for faster development of local
                                     economies is lacking. The shortage of social
                                     capital stifles many opportunities for growth and
                                     jobs.



Initiatives: Business Services

1. Establish Mbombela as “The Intellectual Capital of Environmental Management
    and Environmental Tourism”
           Leverage the locational advantages of the Kruger Park and the town
           Improved supply of young professionals
           Keep more youth in town
           To improve branding and public image of Nelspruit
           To stimulate night life and sports
2. Educate new consumers about financial and insurance services
           Improve consumer confidence in financial services market
           Reduce and heal damage done by unscrupulous financial service
              operators – creates new opportunities for honest service providers
3. Develop a partnership between Business and Government to drive the economy
    to sustained jobs, growth and equity
           Establish set of values to pursue to achieve economic prosperity
           Establish a mechanism to identify and uproot corruption
           Establish effective communication channels between business and
              public sector leaders
4. “Buy Local” media campaign
           Improve consciousness of need to support local business
           Promote local business as competitive alternative to buying from
              Gauteng
5. Establish an information hub (knowledgebase) for business
6. Establish a reliable referral service
7. Speed dating – structured method of meeting prospective business partners
           between NAFCOC and LCBT members (two rival Chambers of
              Commerce)
8. Opportunity brokering service - joint NAFCOC and LCBT
           Identify and exploit opportunities that require collaboration
9. Network facilitator
           Stimulate information flows
           Systematically connect relevant parties
           Establish new and relevant relationships
10. Set up quarterly meeting with SARS (Tax authority) to resolve issues
           Remove bottlenecks to getting public sector contracts

jlawson@mweb.co.za                   11                                     3/29/2013
The projects may seem at first glance to be more LED focussed than Business
Services focus. Four examples of Market Development Linkage building initiatives,
described in annexure 1, explain why projects are both LED and BDS. Projects
2,4,7,8 and 10 have imbedded Business Development Services, assisting many
enterprises by making the service markets work better. Projects 3, 5, 6, and 9 are
new chamber services as a business service provider operating at the meso-layer.
Project 1 is a special catalytic project to establish a new sub-sub-sector of business
services (know-how, skills, research and development) in high demand. It is initiated
by the chamber but for the public sector to pick up later.


Workshops and Interviews: Tourism Sector
A total of 5 mini-workshops were held and 10 Interviews conducted to engage 74
business leaders through the two week process. The Tourism sector was divided
into the following sub-sub-sectors:
        Guesthouses, lodges, backpackers and small hotels
        Large hotels
        Travel agents, Tour operators and booking services
        Wheel operators
        Local attractions

Most of the interviews took place after the internal results workshop. The internal
results workshop identified the likely priority projects and what information was
required to eliminate/reduce remaining uncertainties.

Findings: Tourism
The overall competitiveness of Tourism in the Lowveld is declining.
According to Source: SA Tourism 2003:
   • 2.5 million local tourist direct spend was R 1.6 billion
   • 1.1 million foreign tourist direct spend was R4.5 billion
   • 16.3% of SA foreign tourists came to Mpumalanga
   • Foreign bed nights are down 30% from 2002
   • Total foreign spend down from R5.0 (2002) to R4.5 billion
         – Corresponds with the decline tourism numbers
   • Local safari operators get better value from competitor destinations, and are
      moving more bed nights outside the Lowveld

The tourism sector functions as an integrated Value Chain. Whereas many
participants in the value chain intuitively know this, the full understanding of what it
consists of, how it works, inter-dependencies, strengths and weaknesses are not
understood well. Understanding of the value chain dynamics are crucial to
determining where intervention is needed most.



jlawson@mweb.co.za                        12                                 3/29/2013
The model of the Tourism value chain below was built as a modular display and
adapted and refined throughout the PACA process.




The value chain was copied into power-point but the connections were left out to
simplify the image. It is shown on the next page. The weak nodes are colour coded
orange. The strong nodes are coloured green.

  Demand -        Destination      Exposure                                Places          Things          Spin-off
  Reasons         awareness        to product    Bookings     Transport    to stay         to do           Revenues
  for visiting                     options


                  Indaba &         Package        Inter-                                    Luxury
  Africa                                                                   Luxury
                 SA destination    Tours          national                                  Safari
  Safari                                                                   Game
                 Marketing         marketing      Travel
  Experience                                                   Direct      Lodges                                Forex
                 through intern.                  Agents
                  trade shows                                  Charter
                  & Tourism        Site           Local SA     Flights
                                   Visits                      to lodges                    Culture &        Gifts,
                 offices                          Travel                                                     Souvenirs,
 Getaway/                                                                                   Heritage
                                                  Agencies                                                   Crafts, etc.
 Escape the                                                    Air
 Rat race        TV                Websites
                                                  Direct &     Travel
 Travel          Channels
                                                  Internet                                                      Rest-
                                   Maps,          bookings     Coaches                                          aurants
                  Print media:     Directories
                                   & Travel                    Shuttle     Large
                 -Editorial                      Lowveld
                                   Guides                      Services    Hotels           Kruger               Banks
  Big            -Competitions                   Booking
  Events         -Adverts          Books         Agents &                                   National
                                                                           Back-            Park
                                                 Info.         Car                                               Retail
                                                                           packers
                 Radio             Trade         Offices       Hire                        Local-
                                   Shows                                                   attractions
                                                  Product      Self                                          Local
                                                                           Small Hotels    Sites
                                                 Owners        Drives                                        transport
  Business                                                                 Guesthouses     Adventure
                                   Marketing     Direct                                                      to
  Travel                                                                   Self Catering   Sport
                                   Agents        Contact                                                     attractions
                 Word of                                                        Lodges
 Visiting         mouth &                        & cross-                  B&Bs            Business
 Friends,         Repeat           Direct        referrals                                 opportunities        Info
 Relatives       customers         Marketing                                                                    Offices
                                   by product    Prof.Conf.
 Retail                            Owners        Organisers
 Shopping
                                                                                     Skills
                                                                Roads
                                                                                     Development




jlawson@mweb.co.za                                    13                                           3/29/2013
The ideal type of initiative improves competitiveness of the sector, strengthens
linkages in the relevant value chains and is facilitated by a business development
service provider who improves his competitiveness in his market in the process.

Safari Market
Competitive Advantages                              Competitive Disadvantages
   • True African Safari Experience                    • Decrease in demand for SA “safari
                                                          experience”
   •   Unspoilt, authentic bush, not previously        • Confusing        destination   brand
       farm land.                                         messages
   •   Wonder of the Kruger, history and legacy        • Misinformed perceptions of Malaria
       surrounding the Kruger Brand
   •   Much more than just Big Five, includes          •   Public     institutions   and   state
       the atmosphere and authentic bush feel              departments introduce constraints
                                                           which suppress economy
   •   Variety of game lodge experiences from                  – their implications are not
       Luxury to Basic                                             understood
   •   “Authentic African Experiences”                         – e.g. access i.e KMIA, KNP,
                                                                   Transport Department
   •   Close to First World        services   i.e      •   Pricing of accommodation, entrance
       Hospitals, airports                                 fees and transport
   •   Good Value                                      •   Poor consistency of service levels for
                                                           Tour operators, undermining more
                                                           established credible firms
Getaway Market
Competitive Advantages                              Competitive Disadvantages
Good variety of tourism options that offer:            • Toll Fees – High
   • Relaxed Environments, little traffic,             • Limited information on things to do
       slower pace, friendly people
   • “Small Town” feel - escape                        •   Travel     Agents      lacking     good
                                                           information to do effective referrals
   •   Scenery - Tranquility                           •   Lack of proper packaging of products
   •   Variety of things to do                         •   Mixed advertising messages
   •   Relatively close getaway destination            •   Malaria – exploited by competitors
   •   Good Climate all year round                     •   Unmet expectation w.r.t service and
                                                           authentic experiences
   •   Wildlife/ Bush Experience variety of            •   Substitute product offerings – closer
       options avalaible                                   proximity
   •   Adventure, outdoor activites i.e Quad           •
       Biking, nature trails, horseriding
   •   Sports, ideal terrain from Mountain             •
       biking, cycling, motor biking.
Big Events Market
Competitive Advantages                              Competitive disadvantages
   • Terrain ideal for sporting events such as:        • Limited accommodation for Large
                                                          Groups
           –    Mountain Biking                        • Transport infrastructure not good –
                                                          linking regions
           –    Off Road Motorbike Challenges          • Well packaged options of things to do,
                                                          see and stay not available
           –    Cycling Events …………………                 • Product offerings not marketed

jlawson@mweb.co.za                            14                                     3/29/2013
               and many other                              effectively
   •   Events are generally well run and               •   Not currently being used to promote
       organized – good event infrastructure               destination
   •   Variety of things to do for rest of family              – by Tourism organizations to
                                                                    full extent to gain maximum
                                                                    leverage for the benefit of the
                                                                    region.
   •   Reason to Getaway for a quick break             •
   •   Day trips to the Kruger available               •
   •   Bush and Wildlife Offerings                     •
   •   Variety of Places to stay                       •
Business Market
Competitive Advantages                              Competitive Disadvantages
   • Opportunities- due to growing economy             • Flight times limited, flights are not
                                                          frequent enough at this stage to have
                                                          a choice of various times to fly i.e
                                                          early morning flights not available at
                                                          this stage.
   •   Close proximity to Gauteng                      • Toll Fees High
   •   Centrally located to Mozambique and             • Lack of information on the region to
       Swaziland                                          make informed business decisions
   •   Variety of accommodation options                • Restaurant hours limited/ lack of
                                                          variety of restaurant types.
   •   Good road infrastructure                        •
   •   Variety of specialized business services        •
   •   Easy/ relatively quick to get connected         •
       within the business networks
Generic - applicable to all markets
Competitive Advantages                              Competitive Disadvantages
   • Good infrastructure here as opposed to            • Public Service levels problematic
      other African Countries
   • Generally good weather and climate all                    –   Telkom
      year round
   • Offer a variety of outdoor experiences                    – Eskom (power failures)
   • Various      types   of    accommodation          •   Limited capacity to handle large
      available                                            groups
           – Hotels                                    •   Road signage generally confusing
           – Bush Lodges                               •   Inconsistent and poor service levels
           – Game Lodges                                       – ignorance           of        non-
                                                                    performance and apathy
           –   Country Retreats                                – bad customer experiences
           –   Unique getaways                                 – limits repeat business and
                                                                    word-of-mouth referrals
           –   Guesthouse                              •   Poor local transport infrastructure
           –   B & B’s                                 •   Ineffective and fragmented marketing
           –   “True” African camping                  •   Confusing     brand     messages      in
                                                           promotion
   •   Variety of experiences in one destination       •
       all in close proximity




jlawson@mweb.co.za                            15                                      3/29/2013
Initiatives: Tourism Sector
1. Develop clear and effective Brand Messages
2. Lowveld Tourism Indaba (exhibition)
3. Generate more Event based Tourism
4. Review Lowveld website options
5. Improved exposure in Mass Media
7. Develop a good Map with Key Attractions
8. Develop a good Destination Brochure
9. Develop a Database of Industry Contacts
10. Provide Industry Statistics and Trends
11. Improve substance of newsletters
12. Quarterly Update Events
13. “Swarm” to negotiate better deals
14. Shuttle service at LCBT Info Offices
15. Input to municipality to upgrade the Transport System


Way forward: Business Services and Tourism
The way forward processes of the two PACAs were very similar.

The interviews doubled up as the search for the relevant champions to drive
initiatives. There was a good correlation between the right champions and the
persons that know most about the proposed initiative.

The proposals of priority projects and champions were tested with all interviewees.
After input from and participation by interviewees, the final adaptations to the
proposals were made. The degree of certainty that the recommended projects would
be accepted by local stakeholders was increased. The probability of successful
execution was also increased because much more commitment was gained, before
public announcement of the projects.

Champions presented their own projects/initiatives at the presentation workshop,
thereby committing themselves and their professional reputations publicly to driving
the projects to completion.

Findings were documented into very brief reports that were circulated to the broader
stakeholders and media. This public statement committed the champions further.
The document was particularly useful to reach key government and other decision
makers who could not participate but were interested to back the initiatives.

Monthly follow up meetings continued to establish constant peer pressure to show
progress and to keep the energy/motivation levels up.




jlawson@mweb.co.za                     16                              3/29/2013
A monthly newsletter kept other stakeholders on the tourism side informed about
progress and further energised champions, by giving them public recognition for
work completed.


Results / Outputs
“Extremely beneficial”,
 “Really good. Constructive. Honest.”
“I thought it was absolutely brilliant!“ ,
 “It has been a good exercise because it was focused, well formatted, happened
over a short period, delivered meaningful projects and priorities”.
- quotes by some of the champions four months after the PACAs.

Results will be discussed according to GTZ BDS/LED programme evaluation
framework, with reference to the specific project objectives. The results are reported
firstly according to the perceptions of key local
                                                           Interview sample
stakeholders, gathered by interviews conducted four
                                                           Municipality              2
months after the PACAs were conducted. Secondly,
                                                           Chamber staff             2
additional information is provided based on information
                                                           Chamber Executive         4
gathered from newsletters and records of meetings.
                                                           Chamber Members           3
1. Communication and interaction between
local stakeholders is stimulated and improved

Information gathered from interviews indicate the following improvements:

“It allowed members and community the opportunity to participate and provide
input.”

“The process stimulates dialogue between participants. Issues are brought to the
fore through a structured way of engaging people, which brings people together
around issues. It is an excellent way to pool knowledge from people and extracting
the salient bits.”

 “When participant talk to each other and see they share the same problems, it
builds understanding that they are not alone fighting the battles.”

“Communication between key role players has improved, integrating various fields,
working together rather than silos. There has also been an injection of positive
possible changes. We have the power to change things. We can speak more freely.”

“People(key players) in tourism industry are now more aware of each other. In their
private capacity, and for regional cooperation.”

“The networking has been absolutely fantastic.”
jlawson@mweb.co.za                      17                               3/29/2013
“Attitudes towards the way things are done have improved because the approach
that is far more interactive and positive. The process provides the means to engage
with members in a substantive way”

“I have noticed a shift in development approach towards actually consulting, rather
than dictating.”

“My thinking has changed, the other people around the table make me more .....”

Information from Meetings and Newsletters
More than two hundred other stakeholders have subsequently become involved in
the PACA initiatives driven by various PACA champions with minimal support by
GTZ. The Tourism Indaba project attracted 60 workshop participants to start
conceptualising the exhibition. The mass media exposure project has engaged in
excess of 40 product owners whilst setting up a travel guide. The speed dating
initiative engaged approximately 40 representatives from LCBT and NAFCOC. The
university initiative has engaged 32 leaders from the public-, education-,
conservation-, tourism sectors. Numerous other meetings around 23 initiatives have
engaged other stakeholders.

It is clear that the communication and interaction between local stakeholders has
been stimulated.


2. Perceptions of local economy and understanding of LED between
private and public sector and civil society is enhanced and aligned

Information gathered from interviews indicate the following improvements:

“The model of the local economy was particularly useful. It created the focus and
increased the chances of success.”

“People (key players) in tourism industry are now more aware of each other. In their
private capacity, and for regional cooperation.”

“What has changed is perceptions of people participated. How they see their sector
and possibilities. A mind shift.”

“The process stimulates dialogue between participants. Issues are brought to the
fore through a structured way of engaging people, which brings people together
around issues. It is an excellent way to pool knowledge from people and extracting
the salient bits.”



jlawson@mweb.co.za                     18                               3/29/2013
“Communication between key role players has improved, integrating various fields,
working together rather than silos.”

Information from Meetings and Newsletters
The PACA results were presented to stakeholders at the presentation event and
subsequently shared with broader stakeholders by means of the report. The
municipality has been involved through representation by the deputy city manger
and some councilors. The LED portfolio committee attended the Business Services
presentation event.

Specific initiatives have pursued their own additional stakeholder engagements and
meetings to gain broader support. The high profile initiatives have gained rapid
support from persons such as the provincial Minister of Economic Affairs and the
national head of the National Parks Board.

It has become clearly evident to government that the private sector can play a very
meaningful role in Local Economic Development.

3. Feasible LED initiatives and projects are identified
Information gathered from interviews indicate the following opinions about the
project selected (first Business Services projects, then Tourism):


                           Merit of Projects

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jlawson@mweb.co.za                       19                             3/29/2013
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3/29/2013
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Information from Meetings and Newsletters
Four months later 23 out of 25 projects are still active, making progress. This
represents a very successful follow through rate compared to other PACAs
conducted in South Africa.

4. Local LED stakeholders are mobilised
The first level of mobilisation is through the PACA process itself, where about 70
sector leaders were mobilised to participate and give input. The second level of
mobilisation is the champions, who lead the way to further collaborative efforts. 18
Champions are pursuing projects identified, mobilising more stakeholders in the
process.

Information gathered from interviews indicate the following opinions about the
champions selected:




jlawson@mweb.co.za                      21                                3/29/2013
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Information gathered from interviews indicate the following opinions by champions
selected about their new roles:

“I did not see myself as a champion before.”

“I am making use of another opportunity to develop another area of my business.”

“A sudden realization that there is no point for someone else to do this…. We must
have the resolve to get on with these things.”

 “Being a champion gives one a vehicle (the development agenda) to uplift. It has
suddenly provided some new motivation of the product owners, encouragement that
somebody out there is actually looking after our common interests, we are not on our
own…”

“Finding the right people to work the process has been good for me. The people
around the table made me more ..... “

Personally I have met other industry players, incredible people, who I did not know
were around – they have given me tremendous confidence in future of the Lowveld.”

Information from Meetings and Newsletters
Four months later 23 out of 25 projects are still active, making progress.

Selected initiatives have lobbied and received public sector backing. The university
idea for example is being built into provincial regulation and Mpumalanga Tourism
Authority budget.

More than two hundred other stakeholders have subsequently become involved in
the PACA initiatives driven by various PACA champions with minimal support by
GTZ.

The business model of LCBT has also changed to include the PACA type of activity
in the future. Successful completion of the PACA projects has been built into the
performance agreements of the managers of LCBT.

It is clearly evident that local stakeholders are mobilized.

5. Knowledge for sustaining the process has been transferred to the
local level

Information gathered from interviews of the LCBT managers indicate the following
opinions about changes to the local capacity:

“It has helped me to see my role differently, on what I am doing.”

jlawson@mweb.co.za                        23                                 3/29/2013
“For me personally, it has helped me to see the links between our activities and
economic development. If one selects the right type of catalytic activities, some
really simple interventions can create an economic impetus.”

“The main benefit for the chamber lies in learning that unless we are conducting
these types of appraisals we would not get to the real issues, nor these types of
initiatives.”

“I am amazed at how the process has brought structure to the way we are able to
deliver, because without much effort, we were able now to formalise what we are
providing members, and it has not put unreasonable additional strain on us.”

“It is a focused approach, action oriented, delivery oriented, participative,..”

“The issue of cooperation and collaboration is what has become more important.
And to strengthen partnerships, relationships and collaboration is seen as more
important.”

“I used to think in terms of a scope where we (LCBT staff) have to do all the work,
now we think of who we can align with us to do things. We are leveraging other
stakeholders like Wendy…”

“The way in which we are handling information has started to change. We are trying
to target information distribution more carefully and more user friendly.”

“The PACA projects are now part of my KPIs.”

“Our networking and information services have been broadened to be more inclusive
of black business. eg. speed dating vs had networking breakfasts. We are looking at
better ways of doing things.”

“I think the change is sustained.”



Interpretation of Results / Outcomes
It is still far too early to determine the impact of the PACAs, however there are some
positive indicators.

1. LED process is interactive, involving LG, private sector and civil
society
Through various PACA initiatives/projects, it is conservatively estimated that at least
another two hundred other stakeholders have participated in the initiatives driven by

jlawson@mweb.co.za                        24                                 3/29/2013
the PACA champions4 without any further support by GTZ. This is best explained by
very good local champions who have found some benefit in leading their initiatives.


2. LED process is becoming institutionalized
Subsequent to the PACA exercise, the performance agreements of the LCBT
managers were also amended to include the PACA projects. This provides evidence
that the LED process is being institutionalised.

3. LED process is becoming more professional.
Four months later 23 out of 25 projects are still active, making progress. This
represents a very successful follow through rate compared to other PACAs
conducted in South Africa. This suggests that amendments to the PACA process
must have some merit. An alternative explanation may have been that the
improvement was simply due to better facilitation capacity, but less external
facilitation was utilised and local facilitators were inexperienced.


Impact: Local economic opportunities are continuously identified
and utilised
A few weeks after the PACA with heavy emphasis on collaboration and
strengthening of relationships between NAFCOC and LCBT, LCBT and NAFCOC
identified an opportunity to form a consortium (from their members) to bid for a new
radio licence. This was not a direct outcome of the PACAs but certainly an example
of a local opportunity identified and utilised subsequent to the GTZ intervention.


Stretching lessons learned
The main learning from the pilot project worth generalising is that the changes in
application of the PACA methodology has yielded improved results, over and above
the normal PACA benefits that are retained:
       Participatory - motivating + involving local stakeholders
       Appraisal - quick, action-oriented diagnostic: Strengths, weaknesses and
          opportunities in the local economy and what to do about them
       Competitive Advantage - creating a differentiated profile of local economy

Improved quality of project selection
The probability of improved project selection is enhanced by two changes to the
process. Sector value chain mapping is introduced as a framework for data
collection, analysis and project selection. This makes it easier for the team to
understand sector dynamics and conceptualise strategic interventions. Secondly,
project proposals that are developed, are scrutinized and refined during a number of

4
    See annexure for examples

jlawson@mweb.co.za                     25                               3/29/2013
   interviews (which include prospective champions), before the final presentation
   event.

   Increased chances of Implementation
   Commitment to project implementation is increased by various changes to the
   sequence and activities. The local team owns responsibility for executing the PACA,
   never the external consultant. Commitment to execution of the portfolio of projects
   by champions is gained prior to the presentation event. Champions further commit
   themselves publicly at the presentation event to execute the projects. Commitment
   is further entrenched in the document that is distributed to all stakeholders.
   Thereafter, systematic follow-up maintains pressure and provides energy to the
   champions.

   Stronger local capacity
   Local facilitators take ownership and drive the process from start to finish, with
   guidance and support from an external technical expert. Locals gather information,
   diagnose, improve their understanding of their local economy and decide what the
   priority interventions are. The sophistication of the process is adapted to stretch the
   capacity of the local team to the next level without making it too complex.


   Suggestions for technical implementation
   In order to replicate the benefits achieved in this project, the following adaptations to
   the PACA process are suggested.

   Adaptations to the PACA Process
   The normal PACA process is illustrated in the figure below.



                 PACA sequence of activities
Prepa-
          Hy-                                           Results-
ration:                                                              Pre-    Way
          po- Kick-             Interviews             Workshop:                    Imple-
* Orga                                                               sen-    for-
          the- off                                     Diagnosis                    mentation
 * Ad-                                                              tation   ward
           sis Wks                                         +
vance                                                               event    Wks
          Wks                 Mini-workshops           Proposals
  info

                           Fieldwork (1-2 weeks)



                                   PACA-Exercise (2-3 weeks)


   jlawson@mweb.co.za                  PACA-Project
                                          26                                    3/29/2013
The variations from the normal PACA process are illustrated in the diagram below.
The green coloured blocks identify components that are changed in some way.


        Enhanced PACA sequence of activities
Prepa-        Hypothesis         Internal    Way forward
ration:      development         Results-    development       Pre-   Implementation
* Orga Hyp-                     Workshop:                      sen-
 * Ad- oth- Kick-     Mini-     Diagnosis                     tation
vance esis off                      +            Interviews   event Rep Monthly Monthly Monthly
                    workshops
  info  Wks Wks                 Proposals                            ort Follow-upFollow-upFollow-up
                                                                           meeting meeting meeting
                          Fieldwork (1-2 weeks)



                                  PACA-Exercise (2-3
                                      weeks)

                                        PACA-Project

Many of the changes are only slight variations. Only the variations to the PACA
process will be discussed further, not the complete process. The PACA process is
well documented5.

Hypothesis Workshop
A new activity introduced into the hypothesis workshop consists of building a model
of the sector, typically in the form of a value chain. The local team combines their
knowledge of the local economy and identifies the key types of businesses and the
linkages between them. Strengths and weaknesses are introduced by different
colouring of cards (nodes) and linkages. The diagnostic questions of the hypothesis
workshop then utilises the model as a frame of reference.

The model is built as a modular display that is adapted and refined throughout the
PACA process. This activity takes a good 4 hours to complete thoroughly. The
duration of the hypothesis workshop increases to a 6 - 8 hour event.

Hypothesis Development
Hypothesis development is an ongoing process. The hypothesis is reviewed daily.
The variation is in using workshop attendees to provide their input to refine the
model (value chain) of the sector. Both the configuration of the model and the
strengths and weaknesses are discussed, typically after the mini workshops.


5
    PACA is well documented see www.mesopartner.com

jlawson@mweb.co.za                          27                                     3/29/2013
Mini-Workshops
Mini-workshops are planned for approximately 2.5 hours. Porter’s Diamond and Five
Forces models are utilised for the first three questions. Strengths and weaknesses
questions are combined into three questions rather than five. The remaining two
questions focus specifically to seek input on new potential that may be unlocked
through various forms of collaboration. The questions seek to elicit realistic
opportunities to improve the competitiveness of the sector. These opportunities
typically manifest themselves as unmet needs of businesses in the sector which
ideally may be serviced by other local businesses.

The variation from original PACA methodology is that idea generation is not an
option but considered essential process for participants to make their own initial
hypothesis of way forward explicit in their own minds. This raises consciousness of
their level of understanding, helps them to recognise their own limitations and helps
them to recognise better ideas from group activity. It also makes them less critical of
the outcome later in the process.

Internal Results Workshop
The variation is in the selection of priority projects that are strategically more
relevant. By having the systemic model or value chain of the sector available, it is
easier to consider project selection in a more systemic context than without it. The
ideal types of initiatives improve competitiveness of the sector, strengthen critical
linkages in the relevant value chains and are facilitated by business development
service providers, who improve their own competitive position in their market during
the process of acting as project champion.

Interviews and the Way forward Development
Most of the interviews take place after the internal results workshop. The internal
results workshop identifies in a focussed way what the likely priority projects are and
specifically what information is required to eliminate/reduce remaining uncertainties.

The interviews double up as the search for the relevant champions to drive
initiatives. There is a good correlation between the right champions and the persons
that know most about the proposed initiative.

The range of priority projects and proposed choice of champions are tested with all
interviewees. Having had input and participation from all interviewees and having
made the final adaptations based on their input, the degree of certainty that the
recommended projects will be accepted by local stakeholders is greatly increased.
The probability of successful execution is also increased because much more
commitment is gained, even before public announcement of the projects.




jlawson@mweb.co.za                      28                                3/29/2013
Presentation Event
Champions present their own projects/initiatives, thereby committing themselves and
their professional reputations publicly to driving the projects to completion. Beware
of champions who are so enthusiastic that they talk far too long.

Report
By documenting the findings in a very brief report and circulating it to stakeholders
and media, the broader stakeholders are informed and the champions committed
even more publicly. The document travels more widely than the presentation event.
It is particularly useful to reach key government and other decision makers who
could not participate but may back the initiatives in future.

Monthly follow-up Meetings
Monthly follow up meetings establish a constant peer pressure to show progress. By
sharing the progress and seeing others making progress keeps the energy levels up.

A monthly newsletter keeps other stakeholders informed about progress and further
energises champions, by giving them public recognition for work completed.




jlawson@mweb.co.za                     29                               3/29/2013
Appendix 1: Examples of Market Development Linkages


Example 1: Lowveld Tourism Indaba (Exhibition)
      Tourism product owners need to get targeted exposure at lower costs, to key
      buyers that like the destination:
                 Booking agents
                 Journalists / media
                 Event organisers
                 Film producers

      Even local Travel Agents do not know what products are available locally, or
      to whom to refer customers.

      Currently, some product owners go to the Durban Indaba but the destination
      offerings are not integrated, or packaged well, with the destination messages
      not coordinated, consistent or compelling.

      It is proposed that the Durban Indaba focuses primarily on destination
      marketing and the Lowveld Indaba to focus primarily on product marketing.
      The rationale is based on the priority first to convince buyers to consider the
      Lowveld destination, and once they do, to make it as easy as possible for
      them to get a rich and efficient exposure to the full diversity of Lowveld
      offerings.

      Workshops should take place prior to the Durban Indaba to package
      destination offerings. The Lowveld Indaba could be immediately after Durban
      so that buyers could just extend their trip to include the Lowveld, to see and
      sample products.

Demand side 1:       Tourism booking agents, Tour operators & Tourism Media
                     promote product owners and direct customers to selected
                     product owners

Supply side1:        Tourism product owners want more customers

BDS Demand side: Product owners, Tourism booking agents, Tour operators,
                 Tourism Media all need to find out what is available and select
                 trading partners.

BDS Supply side: Event managers (facilitating champions)



jlawson@mweb.co.za                     30                               3/29/2013
Example 2: Generate more Event-based Tourism
          The recent “Innibos” Afrikaans cultural festival demonstrated the potential of
          event based tourism, which is not exploited properly. The festival attracted
          more than 45 000 visitors, half of whom were from outside of the area.
          Numbers are double last year’s.

          The Lowveld hosts numerous events, some of which have been going for
          decades. The Total Rally, cycling, bikers, and various other cultural and
          sports events. The main idea is to expand and grow existing initiatives, by
          means of the tourism sector fully and extensively supporting these events.

          These primarily sports or cultural events can be improved for the benefit of
          participants. The local tourism offerings and infrastructure can be added to
          the events. For example, how do you make the rest of the family enjoy the
          Sasol6 rally event more?

          The proposal is to select the top 10 events for tourism industry to support
                 5 Annual Festivals
                 5 Annual Sports events

          These events are a cost effective way of promoting the countryside and small
          towns to the “country getaway” target market. The local region will also
          increase their participation in the events, and in the process, everybody is
          educated further on what the other parts of the tourism region have to offer.

          Events are also a very good medium to facilitate improvements in racial
          integration, something sorely lacking in the industry. The mixture of cultures
          and diversity adds value to events, and allows an easy sampling and
          discovery process.

Demand side 1:           Event participants
Supply side1:            Tourism product owners want more customers

BDS Demand side: Tourism Product owners (and non BDS: Event participants)
BDS Supply side: Event managers (facilitating champions)



Example 3: Educate new Consumers of financial and insurance services
          Consumer protection is not effective in Mpumalanga. New consumers of
          financial services are exploited by and defrauded by illegal and fraudulent

6
    Sponsor of the National Rally Championship

jlawson@mweb.co.za                               31                          3/29/2013
       businesses. This reduces consumer confidence in the market and decreases
       demand for financial services. Both consumer and credible and competitive
       financial service providers loose out. By educating new consumers of
       financial and insurance services, their ability to recognise unscrupulous
       operators as well as their ability identify and purchase more competitive
       services will be enhanced.

Demand side 1:       Consumers of financial services
Supply side1:        Financial Service Providers

BDS Demand side: Financial Service Providers
BDS Supply side: Financial Services Brokers (facilitating champions)


Example 4: Speed dating to form new JVs/partnerships - between
NAFCOC and LCBT members

      White firms are looking for the right Black partners
      Black firms are looking for the right White partners
      Arrange speed dating events:
          o Get equal number of NAFCOC and LCBT members together
          o Let them talk one-to-one for 10 minutes each
          o Systematically speaking to everyone
          o Afterwards, informal further discussions to allow further exploration of
              partnership potentials

Demand side 1:       Business leaders seeking joint venture partners
Supply side1:        Other Business leaders seeking joint venture partners

BDS Demand side: Business leaders forming joint ventures need partnership
                       agreements, finance and other financial services
BDS Supply side: Financial Services Brokers (facilitating champions)




jlawson@mweb.co.za                     32                               3/29/2013
Annexure 2: Extracts from Newsletters
    1. INDABA EXHIBITION FOR REGION – WORKSHOP HELD @ PROMENADE,
       NELSPRUIT

A recent Invitation to interested parties was accepted by almost 60 of the industry’s role-players,
including Travel Agents, Tour and Adventure Operators and Hospitality Establishments from as far
as Swaziland and the Highveld regions.

Discussions were initiated to Establish whether we indeed enjoyed Stakeholder Support for such a
venture. The Workshop was posed with various Exhibition models as possible product options as
well as the Where, When, Who and Why’s surrounding the venture.

From completed questionnaires and comments at the Workshop we believe that the Industry has
supplied us with a directive for such a venture.

Our objective is to encourage tourism to the greater region and ensure that we meet the
expectations of both the Stakeholders and the Consumer by developing a World-class Product
suitable to an increasingly discerning tourism market.

If you weren’t able to attend the recent Workshop and would like to be included in the Project
Discussions for the region, please diarise dates for future Workshops which will be supplied
through LCBT Newsletters.

The meetings will be taking place within the various Tourism Sectors of the industry to discuss the
specific market requirements in the planning of such an event.

If you would like to comment on the process please feel free to answer the questionnaire below.
The completed questionnaire can be e-mailed to wendy1@iafrica.com . Should you have any
further queries about this project you can contact Wendy on (013) 745 7161.

    2. GENERAL MARKETING AND BRANDING UPDATE

Alan Arguile, project champion of the general marketing and branding project that was identified
through the GTZ/Lowveld Tourism workshops says “Marketing guru Philip Kotler defines marketing
as the art of finding, developing and profiting from opportunities, and this is essentially what the
Marketing/Branding Champions sub-group is attempting to do – develop impactful, innovative and
cost-effective tactics to raise awareness, understanding and support for the Lowveld as a tourism
and leisure destination.”

The approach in the first stage of the marketing drive has been to ruthlessly focus on two priority
geographic target markets – Gauteng and the Western Cape. We have then identified 10 niche
demographic target audiences within these provinces (six in Gauteng and four in the Western
Cape), ranging from middle-aged, established high LSM couples looking to ‘escape’ from their
teenage children or with their children out of the house, through to adventure and outdoor sports
enthusiasts.

Each of these six demographic groups have been analysed to identify their travel/leisure needs
and concerns, and the communication messages they need to hear from Lowveld Tourism in order
to address these needs and concerns. How do these target audiences hear and respond to our
marketing messages when they are constantly bombarded with hundreds of competing brand
messages?

 The Marketing/Branding Champions sub-group believes the most effective way to cut through this
marketing clutter is through the use of creative word-of-mouth campaigns, promotions and earned
(free) editorial exposure. So we’ve come up with dozens of potential tactical marketing ideas –

jlawson@mweb.co.za                            33                                     3/29/2013
some big and ambitious, others more conventional but no less memorable – for each of the 10
niche target audiences.

What lies ahead (in the next four to six weeks, depending on the availability of our volunteer
resources) is to present and refine these tactical ideas with various Lowveld Tourism stakeholders,
and through this process select a maximum of three marketing interventions per niche target
audiences i.e. a maximum of 18 communication interventions for Gauteng target markets and 12
for the Western Cape, with systems to measure their impact and effectiveness over the next nine
months.

What will also need to be decided in this forthcoming review process is whether there needs to be
any new visual architecture – a new logo and other symbols – as well as a fresh positioning line
(‘slogan’) to more memorably and powerfully position the Lowveld as a tourism destination.

We’re still in the early stages of a big marketing journey – a journey that is constrained by the
available time of the volunteer resources in the Champions’ groups, but not by the passion and
creativity of the team. Will keep you informed!




jlawson@mweb.co.za                             34                                     3/29/2013

				
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