Is South Africa a good fit for Club Med?
South Africa has always been a versatile tourism destination with an incredible array of tourism attractions and accommodations. But one domain South Africa hasn't ventured into much is beach resort-type vacations.
That is about to change.
French hospitality group Club Med is aiming to plug a gap in South Africa's midmarket tourism sector by bringing what it is calling a "beach-and-bush" all-inclusive experience to the country. However, some tourism players are skeptical the model will work in South Africa.
Guy Stehlik, general manager of the African hotel management company Bon Hotels, pointed out several challenges. Among them: "The first obstacle is that South Africa is a long-haul destination, and flight prices are expensive. That means that any packages will need to compensate for the high airfares," he said.
Jim Holden, president of Holden Safaris, agreed that flight costs could be prohibitive. "I don't see Americans flying all the way to South Africa to a Club Med resort when there are so many others closer to America," he said, adding that for most Americans, Africa has one product: safaris. For all-inclusive resorts, they tend to opt for Seychelles, Maldives and Dubai.
However, Holden said that the Club Med model could be successful as part of the "beach and bush" concept. "It's closer to the safari areas of South Africa than other beach resorts in Mozambique and therefore quicker, easier, and cheaper to get to," he said.
David Vely, Club Med's vice president for regional development in Middle East and Africa, said he anticipates that two-thirds of the clientele will come from Europe, Asia and the Americas. Although South Africa is a long-haul flight from Europe, so are many exotic destinations in Asia or the Caribbean that are still very popular. The upside of South Africa for Europeans is as well that there won't be a time difference. He adds that from Asia, South Africa is much closer than the Caribbean, for instance.
The "beach-and-bush" concept is exactly what Club Med aims to put to the fore, according to Eileen Kett, Club Med senior vice president of development for North America. "Being the brand's first-of-its-kind resort in South Africa, we believe it will draw travelers from North America and all over the world with the appeal of it combining both a beach and safari experience. The distance will hopefully give guests a reason to visit for a longer period of time so they can immerse themselves in such a unique location," she said.
Vely noted that although the country has some infrastructure challenges, these can be overcome with careful planning. That is one of the reasons that Club Med has teamed up with the Collins Group, who will develop and own the resort.
He added that the reason Club Med has opted for KwaZulu Natal (KZN) in South Africa as its next destination is because "it is the most beautiful part of South Africa (including game parks) with the most favorable climate that will enable a year-round opening." He mentioned that South Africa has many unique selling points. "Our clients look for experiential family holidays. South Africa will offer a unique and outstanding opportunity to enjoy a mix of heritage, culture, beach, wildlife," he said.
Local tourism players spoke of their concern that the traditional Club Med model is not always conducive for local economies. "The model rests on guests not leaving the resort and not partaking in local culture," Stehlik pointed out, adding that he is hopeful that this particular Club Med will involve local communities and economies.
Vely assured skeptics that this Club Med will take steps to involve locals, such as forming partnerships. "That's in the DNA of Club Med in general and will be the case even further in South Africa. As we build our partnerships, we will continue to share news in regards to working alongside local communities," he said.
Despite the challenges, Bon Hotels' Stehlik admits the all-inclusive model is emerging as a popular model across the world and across tourism segments, including in corporate travel. "The all-inclusive model aligns perfectly with a desire for convenience we've seen with travelers," he said.
Tony Romer-Lee, managing partner for Africa and the Middle East for Valor Hospitality, agreed, saying that although there will need to be enhanced airline connectivity with major charter airlines flying directly into Durban, the potential for leisure and MICE tourism is immense.
Onne Vegter, managing director at Wild Wings Safaris, is optimistic that Club Med can be successful in the region, largely due to its status as a well-known, trusted global brand. "They're stepping into a gap in the South African market, and I expect the response from both locals and international tourists to be very positive," he said. "With the popularity of bush-and-beach packages and the demand for some quality beach time after a safari, it is strange that our beautiful KZN coastline has not seen more all-inclusive resorts being developed."
According to Vegter, Club Med will not necessarily compete with existing beach lodges and hotels.
"Being a four-star, all-inclusive resort, with over 340 rooms, they're aiming for a different market than our more exclusive, high-end beach resorts. A large Club Med resort by its very nature will be less personal and less exclusive, compared to some of our established lodge and hotel brands with the legendary warmth of South African hospitality," he said.
Romer-Lee said it's good to have an international brand of this caliber coming into South Africa. "If successfully established, it will give a great boost to leisure tourism and greater confidence in South Africa as a destination," he said.
