Western Cape Business 2020 edition

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OVERVIEW Wine and grapes Wine exports to China are up 109%. There was less wine in 2019, but what wine there was was of a better quality and attracted better prices. A prolonged drought and variable weather conditions led to two seasons of reduced wine grape harvests, but Vinpro reports that exports earned just over R9-billion in 2018, an 11% increase in value despite a 6% decrease in volume. This fits in with a trend whereby South African winemakers are aiming for better quality instead of greater volumes. Which is not to say that volume is being ignored. Wine exports to Angola and China have doubled. In the four years to 2017, wine exports to China reached 18.2-million litres, an increase of 109%. Wesgro and WOSA (Wines of South Africa) are cooperating on the Chinese market. In May 2018, they hosted a wine tasting and pairing event in Shenzhen. South Africa is the eighth-biggest wine producer globally and produces about 4% of the world’s wine. The wine industry contributes R36-billion to the country’s gross domestic product (GDP) and employs nearly 290 000 people. Vinpro is the wine industry organisation which represents 2 500 South African wine grape producers, wineries and wine-related businesses. There are over 3 500 wine producers in South Africa, with the large majority located in the Western Cape. Wine is produced by estates, independent cellars and producer cellars or co-operatives. The Distell group runs five distilleries and seven wineries in the Western Cape and produces about a third of the country’s natural and sparkling wine. Wine tourism in the Western Cape grew 16% in the year to 2017, according to a study done by Wesgro and Explore Sideways. The study, which surveyed 40 tour operators responsible for 19 000 trips, also found that 99% of Cape Town-based itineraries include a trip to the Winelands. A Vinpro report shows that wine tourism contributes R15-billion to the local economy. Local wine sales bring in R13.2-billion. Excise and other taxes paid by the wine industry amounted to R6.7-billion in 2017, up by 8% from the previous year, according to Koos Nel of Old Mutual Personal Finance. South African Table Grape Industry Partnership (SATGI) is a partnership Online Resources Cape Winemakers Guild: www.capewinemakersguild.com SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za Vinpro: www.vinpro.co.za Sector Insight The table grape sector employs 46 000 people. whose board membership represents every growing region. The industry’s contribution to the national GDP is estimated at more than R3-billion. The table grape industry in the Western Cape provided over 46 000 direct jobs during the 2015/2016 harvest. The province is responsible for 65% of total production in table grapes. There is also a significant contribution to downstream production income – R3.2-billion to other product input providers, R720-million to packaging material suppliers and R250- million to logistics suppliers. ■ WESTERN CAPE BUSINESS 2020 48
Wine tourism boosts Western Cape economy Further research on economic impact is planned. FOCUS Research will be conducted in the course of 2020 into the value of wine tourism, along with a skills audit to identify training opportunities. Wine tourism plan South Africa’s wine tourism sector is experiencing rapid growth and gaining international recognition, making this a lucrative sector for investment. A Food and Wine Tourism Market Report released by Wesgro and Explore Sideways at the end of 2019 indicated that 63% of tour operators believed the market grew in 2018, the total spend per trip increasing to above R60 000. “People are moving away from generic itineraries in search of something more unique. South Africa’s huge cultural and natural diversity, along with the world-class food and wine offering positions us perfectly to significantly grow the tourism market,” Vinpro wine tourism manager Marisah Nieuwoudt says. The International Wine Review and United Nations Tourism Organisation singled South Africa out as one of the best developed wine tourism destinations globally in 2012 and 2016. Lonely Planet identified the Cape Winelands as one of the global Top Ten Best Value Destinations, while Vergelegen Estate, Delaire Graff Estate and Creation Wines were listed as Top 50 Wine Destinations in the World. South Africa also has the longest wine route in the world, spanning six wine regions. Job creation Wine tourism helps to establish a personal connection with consumers, enhances brand loyalty, adds value to existing activities and boosts sales. It can also grow the job market as it has a low barrier to entry. The wine and brandy industry has been serious about wine tourism since 2015, identifying it as a growth driver in the industry’s strategic framework, WISE (Wine Industry Strategic Exercise). A wine tourism plan was released, along with a digital visitor-facing platform Visitwinelands.co.za. Vinpro established a wine tourism desk to coordinate efforts of relevant parties including Wesgro, the SA Wine Route Forum, Wines of South Africa (WoSA) and the Cape Winelands District Municipality (CWDM). In 2019 Vinpro, with the support of the CWDM, launched a free online Wine Tourism Toolkit and hosted a successful series of wine tourism workshops to help related businesses establish or expand their footprint. ■ Contact Details Marisah Nieuwoudt Tel: + 27 21 276 0429 Email: marisah@vinpro.co.za Web: www.toolkit.vinpro.co.za 49 WESTERN CAPE BUSINESS 2020
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