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Turnover (R millions)
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
R 2 = 0.75
0 20,000 40,000 60,000 80,000 100,000 120,000
Amount spent on marketing (R)
Figure 5.16. Relationship between investment in boat-based whale watching-related marketing and turnover
Demand for boat-based whale watching in any one area, and overall, is thus probably heavily
dependent on marketing, especially considering the large number of alternative destinations in South
Africa and particularly at a global scale. Demand was described as being in excess of business
capacity by five operators, along the Agulhas Coast, the Garden Route and in KwaZulu-Natal. Other
operators in nearby areas described low or medium demand. High demand was not necessarily
associated with large urban centres where a huge potential market exists. There was wide variability
of success among permit holders in the Western Cape, currently the recognised “hotspot” for whale
watching in South Africa. This indicates that fine scale demand at specific towns or centres is highly
variable though demand is generally considered higher than in the Eastern Cape or KwaZulu-Natal.
Of course the level of expenditure on marketing, and probably also the general level of service
provided, is also a function of the degree to which a business is already established or is supported
by associated businesses.
In terms of the business models, the most successful were general and marine tour operators,
especially those that benefited from close relationships with complementary businesses such as
accommodation establishments. There was mixed success among marine tour operations that were
closely interlinked (model 4), but this is possibly to some extent an artefact of the difficulty in ascribing
shared costs to the different businesses. All but one of the operators that concentrated solely on
boat-based whale watching had low profits or made a loss. Operations relying on other parties for
boats seemed fraught with problems such as difficulties in achieving regular access to suitable boats.
An interview with one of the boat owners involved revealed that the operation concerned was not
yielding enough income to make the use of his boat worthwhile. Two such permit holders in the
Western Cape have ceased operations, although they have indicated they do have plans to improve
the level of activity through the acquisition of new boats and infrastructure. Thus, while the business
model appears to be important, it is important to realise that good business sense is probably even
more important.
Boat size appeared to have some influence. High profits were generally recorded for operations with
medium-sized boats (16 – 30 passengers), and low to medium for large boats. Smaller boats were
associated with a wide range of profit levels.
Another factor that may influence the success of existing operators is the level of competition, both in
terms of other areas (e.g. when dedicated whale watchers choose their destination), and locally, from
‘rogue’ (non-permitted) operators. There is no obvious impact on turnover or profits in areas where
numbers of rogue operators are high. However, this trend would be masked to some extent by the
fact that rogue operators are more likely to occur in areas where a combination of factors would make
boat-based whale watching successful. Nevertheless, rogue operators are virtually non-existent
along the Agulhas Coast, where conditions are particularly attractive, and were reported to have a low
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