Business tourism is a dynamic industry and is accountable for approximately 14 per cent of tourism and almost 20 per cent of tourism-generated revenue (World Tourism Organisation cited in Nicula & Elena, 2014: 703).
Travelling with the intention to engage in business activities is a fundamental part of Africa‟s tourism industry (Rogerson, 2014: VII; Rogerson, 2015: 184). South Africa experienced growth in tourism and specifically business tourism arrivals after it became a democratic republic. The country is “…one of Africa‟s most significant destinations for international and domestic business travel” (Rogerson, 2015: 184). South Africa‟s well-developed infrastructure, accessibility from numerous countries and relaxed visa regulations support the MICE market as it enable foreign business visitors to enter the country without further complications (Rogerson, 2014: VIII). This indicates that South Africa benefits from a demand in business tourism and potentially incentive tourism.
The Business Monitor International (BMI) (2014: 9) identifies business tourism as a sector which will increase significantly further within the next few years. Figure 5.1 illustrates the continuous increase of business tourism trips to South Africa. The MICE industry is a pivotal part of business tourism with a rapid growth rate over the past few years (Jin, Weber & Bauer, 2013: 447; Seebaluck, Naidoo & Ramseook-Munhurrun et al, 2015: 46). Team building as part of incentive tourism is no exception to this trend.
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Figure 5.1: Business tourism trips in South Africa (Rogerson, 2015: 189)
The BMI (2014: 7) states that the national tourism strategy aims to increase the amount of international and non-regional inbound tourism. Additionally, the strategy emphasises the enhancement of sustainable domestic tourism. Rogerson (2015: 49) emphasises that domestic business tourism in sub-Saharan Africa contributes significantly more to communities than international business tourism does (Rogerson, 2015: 49). Domestic tourism is the foundation of South Africa‟s tourism due to its stability in comparison to the international market. This makes the development of domestic tourism significant (NTSS, 2011: VIII). Domestic tourism is valued as a sustainable component of the tourism industry. By 2020, 60 per cent of the tourism GDP is expected to be comprised of domestic tourism (NTSS, 2011: 8). Considering these statistics, team building operators are likely to receive domestic tourists as the majority of their clients.
Operators can use target domestic tourists and develop an offering which is tailored to the domestic business tourists‟ needs.
Business tourism and MICE tourism are the least recorded reasons for tourists arriving in the Eastern Cape (ECTMP, n.d: 22). Business and medical tourism contribute minimally to the total of domestic tourists in the Province (ECTMP, n.d: 22). Specific areas of the Eastern Cape receive the lowest number of business tourists in South Africa (Rogerson, 2015: 191). Figure 5.2 indicates the relatively low contribution of business tourism to tourism in the Eastern Cape Province, with the exception of Nelson Mandela Bay. This indicates a lack of business and MICE offerings in the Eastern Cape
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(ECTMP, n.d: 22). The absence of sufficiently developed business tourism offerings has a stronger impact on rural areas. Business tourism in these regions only amounts to 6 to 10 per cent. Team building can contribute to the spread of tourism outside of Nelson Mandela Bay and increase business tourism in the Western Region of the Eastern Cape. The activity is less dependent on venues and therefore has the ability to support the distribution of tourism in those areas.
Figure 5.2: Proportion of business trips (Rogerson, 2015: 194)
In contrast to other provinces, the Eastern Cape lacks the capacity to host a large number of business tourists. Consequently the profit generated by high-value business tourists is lost to the Province (ECTMP, n.d: 27). Team building can mitigate this loss as it often caters for relatively small numbers of participants in comparison to large
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conferences. Therefore potential clients can still make use of the Eastern Cape Province to host their team building activities.
Strong competition is an obstacle for business tourism. Business tourism is offered globally which results in a wide range of competing tourism offerings (Rogerson, 2015:
186; Morrison, 2013: 528; McCartney, 2008: 295). MICE tourism is a driver to extend a destination‟s offering range and promote economic development (Rogerson, 2015: 47).
Adding team building to the offering range diversifies the Eastern Cape‟s business tourism market. Supplying a wide range of MICE offerings creates a competitive offering mix for the region. Team building operators in the Eastern Cape Province would be able to compete with other incentive suppliers on a global level.
The ECTMP (n.d: 23) identifies business and MICE tourism as valuable sectors which require attention regarding their development of offerings. Yen et al (2008: 129) emphasise that operators have to develop and adapt offerings to the specific requirements of individual customers. Successful operators satisfy their clients through the provision of innovative and differentiated offerings (Tussyadiha, 2013: 543; Pegg, Patterson & Gariddo, 2012: 660). It is essential for successful team building operators to be knowledgeable about current trends, clients‟ needs, their level of their satisfaction and the potential positive and negative impacts caused by their activities.
It is vital that developed offerings are sustainable, sound and sensitive to the Province‟s economy, environment, society and culture (ECTMP, n.d: 38). South Africa‟s White Paper, 1996 specifies recommendations for developing tourism offerings in a responsible manner which considers the environment holistically, and comprises the host destination, residents, and stakeholders‟ natural and cultural resources. The White Paper (1996: n.p.) emphasises the necessity to implement responsible tourism practices. It recommends using responsible tourism as a leading guideline to
“…develop, market and manage the tourism industry” (White Paper, 1996: n.p). Local communities profit from responsible tourism as their socio-economic circumstances improve (NTSS, 2011: V). Tourism growth in South Africa has to be in line with national objectives. This is essential for being internationally competitive and continuing tourism growth. The NTSS urges involving communities in tourism and identifies the industry as an essential source of unskilled labour employment. Additionally, tourism can be a
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platform of interaction between host destination, locals and tourists (NTSS, 2011: V).
Team building operators have to implement these guidelines in order to develop a tourism offering which is desirable to the Province. Failing to achieve the development of a relatively sustainable offering will lead to an environmental and socio-economic strain on the Eastern Cape Province. It is essential that offerings have the potential to adapt to guidelines and objectives of policies, programmes, and plans such as the White Paper, the Tourism Master Pan, and the National Tourism Sector Strategy which focus on successful an sustainable tourism offerings generating benefits for the local communities and host destinations.
A lack of elements of responsible tourism can have negative impacts on a destination.
These impacts vary from generating a shift of labour to undesirable markets such as prostitution, increased seasonality, rising division between urban and rural areas, uneven distribution of wealth and exploitation of residents and their culture (White Paper, 1996: n.d.). The White Paper (1996: n.p.) proposes following responsible tourism practices to minimise these negative impacts while creating a competitive environment.
5.3 THE POTENTIAL OF TEAM BUILDING OFFERINGS TO ADD VALUE TO