BEE Partner, South Africa Economy Watch

In each of the customer segments mentioned above, the ‘product’ has to be right so that the customer has a great experience of the country relative to the experience that can be gained elsewhere. For example, tourists not only want to enjoy the natural beauty and amenities of our country, but want to know that they will not be mugged on Durban’s beachfront, or attacked in their hotels in Johannesburg. They will also expect to be treated properly by customs officials at the various points of entry and exit. Should they embark on a tour of the country, they should feel confident that their lives would not be at risk owing to unscrupulous tour companies who put unroadworthy vehicles driven by inexperienced drivers on the road. An environment needs to be created in which a tourist, travelling through South Africa, has a better experience than he or she could have had in another country. Sadly, this is not always the case. According to a recent Department of Environmental Affairs and Tourism report, foreign tourists appear to be shunning South Africa. Reasons given by dissatisfied travellers to this country were high prices, poor value for money, and that South Africa is both an unsafe and unwelcoming destination.

Foreign tourists are human capital. They can become supporters or, better still, advocates for South Africa. Incubate, nurture and protect them, and they will not only return, but will spread the news about this country to others. Tourists are also potential immigrants who could bring skills and knowledge to enhance the country’s national stock, which can be used as a competitive weapon against other nations in our endeavours to improve ourselves in the global marketplace.

Similarly, potential foreign direct investors will want to know how they will be able to operate in South Africa, and that South Africa, as an investment location, will help them to achieve their global goals and objectives better than other potential locations could. They will look at the level of government interference that can be expected. Indeed, when investigating possible investment locations, a number of issues will be considered. Firstly, they will examine what rules and regulations exist regarding the entry and operations of foreign direct investors. They will also look at the extent to which each of the possible host countries has local markets that function with a required level of efficiency. Also important is that, as a foreign investor, the standard of treatment they receive _at the hands of the government and quasi-governmental bodies _will at least be on a par with that given to domestic companies. Foreign direct investors will also examine business facilities, such as i_nvestment promotion, incentives, local amenities, the existence of _export-processing zones, customs duties, profit repatriation, tax breaks, labour laws, the provision of a proper supply of labour, and any facilities that will help to reduce the cost of doing business.

As competition for FDI intensifies, marketing is going to become an even more important tool in the country’s arsenal as it tries to woo foreign investors, particularly new investors, away from competing nations. This is going to necessitate the inclusion of other stakeholders, such as trade unions, in the marketing process. Although a powerful force in the South African business and economic environment, South African trade unions are not quite as organisationally and economically mature as their Western European or North American counterparts. Yet they too have an interest in the success of South Africa Inc. The more economic growth the country experiences, the better the chance that the trade union organisations themselves will grow. Responsible union practices need to go hand in hand with responsible management practices to ensure that foreign investors receive a good experience in South Africa. Global competition is changing the position of trade unions in many countries, as companies seek to be effective within the neo-liberal model of capitalism, which dominates the global agenda. It therefore makes sense for the trade union movement in this country to involve themselves as stakeholders in the marketing of our country. It is equally important that all other stakeholders, starting with the government, recognise this necessity and encourage their participation.

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Marketing South Africa Inc. part 2

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• Marketing South Africa Inc. part 1
• Marketing South Africa Inc. part 3
• Guidelines for Shaping Strategic Thought (No 1 & 2)
• So How Does One Market South Aafrica INC.?
• BPO Government Assistance and Support
• So How Does One Market South Aafrica INC.? continue…
• South Africa and Globatisation: Quo Vadis? (Scenario No. 1)
• South Africa and Globatisation: Quo Vadis? (THE FUTURE)
• South Africa and Globatisation: Quo Vadis? (Scenario No. 5 6)