Acta Universitatis Danubius. Œconomica, Vol 12, No 4 (2016)

Tourist Profile and Destination Brand Perception: The Case of Cape Town, South Africa

Ikechukwu O. Ezeuduji¹, Kirsti Lee November², Chelsea Haupt³

Abstract: Tourists pay for destination brands. This study checked for the relationships between tourists’ profile and how they perceived the destination brand of Cape Town. A questionnaire survey of 220 tourists visiting Cape Town was done. This study found that repeat visit, age of tourist, length of stay, and tourist origin, have significant influences on how tourists visiting Cape Town perceived the destination. The top three destination attributes of Cape Town (cognitive images), which enhance visitor experience satisfaction are (1) the overall level of service quality at facilities in Cape Town, (2) the city being one of the best places the tourists have visited, and (3) the destination’s good value for money. The top three emotional valuations of destination attributes (affective images) which enhance visitor experience satisfaction in Cape Town include (1) memorable visit, (2) valuable visit, and (3) friendly and hospitable population. It is therefore recommended that tourism businesses in Cape Town develop relationship marketing tools to attract and retain its tourists segments of loyal, advanced in age, long-staying and domestic tourists. Results from this research could be compared with related findings in the international arena and have related implications, especially for developing economies

Keywords: Tourist demographics; tourist experience; destination perception; sub-Saharan Africa

JEL Classification: 055; R11; Z32

1. Introduction

The tourism industry has been recognised as a major contributor to global economies and serves as a source of income generation for many developing countries (Wijethunga & Warnakulasooriya, 2014), including South Africa. In 2014 the South African tourism industry had contributed over 9% to the country’s Gross Domestic product (GDP) through its direct and indirect impacts as well as providing over 1.4 million employment opportunities (South African Tourism, 2015).

Wesgro, the official Destination Marketing, Investment and Trade Promotion Agency for the Western Cape (one of South Africa’s nine provinces, having Cape Town as the capital city) defines the brand promise of the Western Cape as “be inspired and discover new experiences” (The Western Cape destination marketing, investment and trade promotion agency of South Africa, 2013). In 2014 Cape Town topped the list of New York Times’ ‘52 top places to go in 2014’ (New York Times, 2014) and welcomed an 8.2% increase in visitor arrivals to the city in January 2015 in comparison to the previous year (The Western Cape Destination Marketing, Investment and Trade Promotion Agency- South Africa, 2015). Cape Town remains South Africa’s second most visited city, after Johannesburg, with an estimated 389 012 visitor arrivals at the Cape Town International Airport in July 2015 (Airports Company of South Africa, 2015). The main motivators for travel to Cape Town have been identified as nature, culture and heritage purposes (City of Cape Town, 2013). Cape Town is also emerging as a leading business and events destination in South Africa.

Many authors worked recently on tourism destination brand perception (such as Artuğer, Çetinsöz, & Kiliç, 2013; Beerli & Martin, 2004; Bertan & Altintaş, 2013; Ezeuduji, 2015; Ezeuduji, Lete, Correia & Taylor, 2014; Gursoy, Chen & Chi, 2014; Hosany, Ekinci & Uysal, 2007; Ibrahim & Gill, 2005; Jraisat, Akroush, Alfaouri, Qatu & Kurdieh, 2015; Kiliҫ & Sop, 2012; Lopes, 2011; Molina, Gómez & Martín-Consuegra, 2010; Nel & Strydom, 2004; Prayag, 2010; Puh 2014; Qu, Kim & Im, 2011; Rajesh, 2013; Tasci & Gartner, 2007). These aforementioned authors did study the impacts of tourist perceptions, tourists’ satisfaction, destination brand, destination image, destination personality and destination loyalty, mostly outside Africa. Research with a perspective on destination brand perception in Africa is limited; hence this study will provide more insight into tourists’ perception of a popular South African tourism destination (Cape Town). This study will focus on tourist profile and how they perceive different brand descriptive variables (brand essence, brand image and brand loyalty). Studies by Nel and Strydom (2004), and Prayag (2010) were done in Bloemfontein and Cape Town respectively in South Africa, focussing on brand image perceptions of international tourists. This study however will compare domestic and international tourists’ perceptions in Cape Town. This study can also assist tourism business owners in Cape Town to evaluate and improve tourism offerings in order to meet the expectations of visitors, which will contribute to visitors forming a positive perception towards Cape Town as a destination.

2. Literature Review

2.1. Destination Brand Essence

Brand essence can be described as a single phrase that captures the core spirit of a brand. It identifies the brands competitive advantage as well as the benefits received when choosing a brand over its competitors (Light, Kiddon, Till, Heckler, Mathews, Hall & Wacker, 2012).

The benefits (functional and emotional) received when travelling to a destination is communicated through the brand essence of a destination. The functional benefits can be described as the primary reason for travelling to a destination. This includes the tangible attributes of a destination that can observed or measured, while the emotional benefits received are concerned with the intangible attributes of the destination experience (Pawitra & Tan, 2003).

Functional benefits can be described as the primary purpose for travelling to a destination. Depending on the tourists’ motivation to travel, this includes visiting attractions and sight-seeing, attending business events and conferences, for medical care or to visit friends and family. In addition, the functional benefits sought include tangible elements of the tourist experience. This consists of the destinations’ physical attributes, which make up a destination. The quality of the physical infrastructure and facilities of a destination such as accommodation and transportation network systems form the foundation upon which tourism services are produced in a destination, while the variety of attraction and activities of a destination serves as a pull factor during the decision making of potential tourists (Vengesayi, 2003).

The emotional benefits can be described as the intangible benefits received during the visitor experience while at a destination. These are the additional benefits that a tourist did not expect to receive when deciding to travel to a destination. These benefits include self-development, health and relaxation as well as the ability of the destination to provide tourists with new experiences (Chen, 2012). As tourism offerings are consumed and experienced outside of a tourists usual environment (Wijethunga & Warnakulasooriya, 2014), this contributes to the cross-cultural experience between the local people and tourists. The cross-cultural interaction between locals and tourists results in the breaking down of stereotypes and misconceptions from both sides. It also contributes to the knowledge development of tourists to learn something other than what they are exposed to in their usual environment.

The relationship between the functional and emotional benefits that a destination projects through its brand essence need to match the expectations of tourists as this could influence their overall destination experience (Prayag, 2003). Destinations that can offer tourists with these benefits that exceed their cost of travelling to these destinations will have tourists with increased levels of satisfaction and revisit intention.

2.2. Destination Brand Image

Keller (2003) referred brand image as the sum of brand perceptions as reflected by the brand association retained in consumer memory. Brand image is focused on the way in which a group of people or an individual perceives a product or service, a brand, an organisation or a destination. Brand image has therefore been recognised as one of the most important elements of a destination (Lopes, 2011) as it has a strong influence on a tourist’s motivation, preferences and behaviour towards tourism product or services that contributes to the pull factor for an individual to visit a destination. Destination image is one of motivators in the travel and tourism industry. The attitudes and perceptions customers have towards a particular tourism product or destination influences the buying power of an individual (Nel & Strydom, 2004). The competitive nature of the tourism industry has provided potential tourists with a broad range of destinations and tourist activities to choose from. Therefore the attitude and images that tourists have towards a destination can strongly influence an individual buying decisions.

Brand image plays a role in creating the satisfaction of the customers and the characteristics of the product or services are influenced by the consumers’ perception of the brand (Lopes, 2011). Brand image is a multidimensional construct as it is influenced by a number of factors from the tourist’s perspective, such as cognitive images (destination attributes), affective images (emotional evaluation of destination attributes) (Rajesh, 2013; Lopes, 2011), external information sources (Tasci & Gartner, 2007), socio-demographic characteristics (Beerli & Martin, 2004), as well as by the direct experience of the tourist (Lopes, 2011). The tourist combines all of these factors in order to form an overall image of a destination.

2.3. Destination Loyalty

Rajesh (2013) developed a “holistic model for destination loyalty”. The model, suggests that overall destination loyalty is influenced by the perceptions that tourists have before traveling to the destination, the perceptions that tourists have towards the destination image as well as the overall satisfaction of experience received while at the destination. Hence destination loyalty comes from tourist perception, destination image and tourist satisfaction.

The attitudes that a tourist has towards a destination are considered to be a key determinant when deciding to return to the destination. The results of a study conducted by Artuğer et al (2013) revealed that the cognitive image a tourist has of a destination had a higher impact when establishing destination loyalty in comparison to the affective images of a destination. Further results indicated that tourists with a perceived positive image towards a destination showed a higher intention to return as well as to recommend the destination to others (Artuğer et al., 2013). The results of a study conducted by Oom do Valle, Silva, Mendes and Guerreiro (2006) on tourists’ satisfaction and destination loyalty intention in Arade, Portugal, revealed that tourist satisfaction had a significant influence on destination loyalty, as tourists with a higher level of satisfaction were more determined to return and recommend the destination to others in comparison to tourists that had a lower level of satisfaction. The attitudinal dimension of destination loyalty was evident in the study conducted by Artuğer et al (2013) in Alanya, Turkey, as results revealed that satisfied tourists, who are not able to return to the destination, indicated that they would still recommend others to visit the destination through the spread of positive word-of-mouth. Destination loyalty is therefore largely influenced by the perceived level of satisfaction that tourists have towards their overall destination experience (Rajesh, 2013), as a positive tourist experience enhances the intent to return as well as ensures that a positive word-of-mouth is spread about the destination (Artuğer et al., 2013).

It can then be said that tourists that have a positive image towards a destination have a higher intention to return and willingness to encourage others to travel to the destination. In addition, destination loyalty is also influenced by the perceived satisfaction of the overall experience received, as this could influence the willingness of tourist to return to the destination as well as to recommend others to travel to the destination.

3. Research Design and Methodology

220 tourists in Cape Town were surveyed using a structured questionnaire (respondent-completed, mostly close-ended and few open-ended). Tourists were surveyed at the sites of the three most visited attractions in Cape Town: Victoria and Alfred Waterfront, Table Mountain National Park and Kirstenbosch National Botanical Gardens (The Western Cape destination marketing, investment and trade promotion agency- South Africa, 2015). Contemporary tourism is a mass phenomenon that requires much involvement from governmental, not-for-profit and for-profit organisations, as well as tourists, relying on quantified information for important aspects of decision-making (Ezeuduji, 2013; Veal, 2011). Questionnaire survey is an ideal way of getting some of this information (Veal, 2011); including tourists’ perception. Questionnaires were administered using non-probabilistic convenience sampling of tourists, based on key attractions’ selection, availability and willingness of tourists to take part in the study. Two hundred (200) usable questionnaires were returned, yielding a 91% response rate. The research was focused on domestic and international tourists visiting Cape Town. A screening question was asked by the researchers in order to identify the desired respondents. The screening question asked was “Are you living and/or working in Cape Town?” This ensured that local residents of Cape Town were not included in the study. The exclusion of local residents who may be day visitors ensures that only “actual tourists” were targeted.

The questionnaire battery included respondents’ profile, level of visit satisfaction, activities done in Cape Town, brand essence perception, brand image perception, and brand loyalty. Questionnaire design used variables emanating from previous research:

• Tourists’ perceptions towards brand essence of Cape Town (Chen, 2012; Quintal & Polczynski, 2010);

• Tourists’ perceptions towards the brand image of Cape Town (Nel & Strydom, 2004; Prayag, 2010);

• Tourists’ brand loyalty towards Cape Town (Artuğer et al., 2013; Oom do Valle et al., 2006; Rajan, 2015); and

• Level of overall experience satisfaction in Cape Town (Oom do Valle et al., 2006; Rid, Ezeuduji, & Pröbstl-Haider, 2014).

Brand essence, brand image, brand loyalty and satisfaction items were measured along a 5-point Likert scale (ordinal variables). The scale ranged from 1 (strongly disagree/highly dissatisfied) to 5 (strongly agree/highly satisfied). Respondents’ profile questions were sorted into categorical variables.

IBM’s SPSS version 23 software was used for statistical analysis (IBM Corporation, 2015). The first stage of analysis used descriptive statistics to derive frequency of respondents’ profile (in percentages), mean and standard deviation of brand essence, brand image and brand loyalty variables. Multivariate analyses of the data collected were done at the second stage of data analysis, to reveal the consistency of items in brand essence, brand image and brand loyalty sections. Cronbach’s Alpha was calculated as reliability parameter to check the internal consistency of the variables within each section. Commonly, a cut-off point of 0.5 - 0.7 is used for Cronbach Alpha values (Buehl & Zoefel, 2005; George & Mallery, 2003), therefore we can confidently say that a Cronbach Alpha coefficient of 0.7 and above indicates internal consistency of items, hence we can rely on those items to explain a common feature such as brand essence, brand image and brand loyalty. Finally, at the third stage of analysis, Pearson Chi-Square test was used to check for relationships between categorical variables (in this case, ordinal variables were recoded into categorical variables), and Spearman’s Correlation tests was used to check for relationships between ordinal variables (Cessford, 2003; Veal, 2011; Zondo & Ezeuduji, 2015).

4. Results and Discussion

4.1. Visitor Profile

Table 1 shows the profile of the tourists surveyed in Cape Town. The sample consists of more females than males. The respondents are relatively young, with 70% of the sample being younger or 40 years of age. International tourists dominate the sample, where European tourists make up almost half the sample.

Table 1. Profile of the respondents (n = 200)

This study has some good news for Cape Town tourism, as more than 40% of sampled tourists are repeat visitors, and “word-of-mouth” was the most popular information source for tourists visiting Cape Town, showing not only the popularity of this city in the world, but also the loyalty of its visitors. More so, more than 92% of tourists surveyed reported being mostly or highly satisfied with their experience in Cape Town. About 46% of the tourists stayed more than 7 days in Cape Town, mostly on holidays. This study found that tourists who got their information about Cape Town through the media (TV, magazines, books) showed the lowest level of experience satisfaction than the other tourists who got their information from other sources (Chi-square, p=0.004). Cape Town tourism should then be careful that the information being supplied to tourists through TV, magazines and books corresponds with what Cape Town has to offer, promising exactly what Cape Town can deliver, to reduce dissapointment. A destination’s brand essence, wherever and however it is communicated, needs to match the experience of tourists to create a positive perception of that destination among the tourists (Perović, Stanovčić, Moric, & Pekovic, 2012).

4.2. Visitor Brand Perception

Respondents were asked to indicate how they agree with some brand essence, brand image and brand loyalty items in the questionnaire. Reliability statistics (Table 2) of the brand statements show that there is an internal consistency, within the items used in measuring brand essence, brand image and brand loyalty for Cape Town tourism, with Cronbach’s Alpha scores of more than 0.7 (Buehl & Zoefel, 2005; George & Mallery, 2003), hence we can rely on those items to explain common features of brand essence, brand image and brand loyalty. Results also show that Cape Town tourists in the study sample generally agree that the city has strong brand essence and image, and they are loyal to Cape Town as a destination. The lowest overall mean score of the brand image section of the questionnaire, due to a safety item, needs some attention from Cape Town tourism. This will be discussed briefly later in this paper.

Table 2. Brand statements’ reliability tests (n =200)

4.3. Brand Statements versus Level of General Experience Satisfaction

Results shown in Table 3 regarding brand essence statements show respondents’ strong agreements with statements: “my visit to Cape Town will be memorable”, “my visit to Cape Town has been valuable to me”, “Cape Town provides tourists with authentic visitor experience” and “I have gained new knowledge and experience during my visit to Cape Town”. Memorable experience, valuable experience, and friendly and hospitable population seem to enhance tourists’ level of general experience satisfaction.

Table 3. Brand statements versus level of general experience satisfaction (n =200).

Notes: Spearman’s Correlation test significance. *, p < 0.05; **, p < 0.01; ***, p < 0.000.

NS, no significant results.

Interpretation of results: Where result is significant, the more tourists are satisfied with the general experience, the more they agree to the corresponding brand statements.

Results regarding brand image statements show respondents’ strong agreements with statements: “Cape town has unique and diverse attractions”, “The overall service received at facilities is of high quality”, and “Cape Town provides tourists with good value for money”. Service quality and good value for money seem to enhance tourists’ level of general experience satisfaction.

Attention however, should be paid to the relatively low score of the safety item in the brand image section of the questionnaire “I feel safe while travelling around Cape Town”, with only about 55% of respondents agreeing to this statement. It brings to fore, the negative perception of South African destinations by tourists, in terms of crime. Hence, Ezeuduji (2013) advised that strong police presence and proper policing in South Africa (such as, instilling the values of zero-tolerance for crime and responsiveness within the South African Police service) will be effective in dealing with crime in South Africa, and reducing the negative perception of tourists towards South African destinations. Local community collaboration with the police can also help to curb crimes in South Africa.

Results regarding brand loyalty statements show respondents’ strong agreements with statements: “I would recommend Cape Town to my family and friends”, “I would say positive things about Cape Town to my family and friends”, and “I would consider visiting Cape Town in the future”. Cape Town as an outstanding destination, as a preferred choice, and its positive image seem to enhance tourists’ level of general experience satisfaction.

Generally speaking, based on frequency of agreement and statistical relationships of questionnaire items, the top 3 destination attributes of Cape Town (cognitive images), which enhance visitor experience satisfaction, are (1) the overall level of service quality at facilities in Cape Town, (2) the city being one of the best places the tourists have visited, and (3) the destination’s good value for money. The top 3 emotional valuation of destination attributes (affective images), which enhance visitor experience satisfaction in Cape Town include: (1) memorable visit, (2) valuable visit, and (3) friendly and hospitable population.

The relationship between the functional and emotional benefits that a destination projects through its brand essence need to match the expectations of tourists as this could influence their overall destination experience (Prayag, 2003). Also, brand image is a multidimensional construct as it is influenced by a number of factors from the tourist’s perspective, such as cognitive images (destination attributes), affective images (emotional evaluation of destination attributes) (Rajesh, 2013; Lopes, 2011), external information sources (Tasci & Gartner, 2007), socio-demographic characteristics (Beerli & Martin, 2004), as well as by the direct experience of the tourist (Lopes, 2011). The tourist combines all of these factors in order to form an overall image of a destination.

4.4. Tourist Profile Relationships with Brand Statements and Activities

Table 4 shows the tourist profile relationship with brand statements and activities the tourists were involved in while visiting Cape Town. Some of these results are quite interesting and worth discussing.

Table 4. Tourist profile relationships with brand statements and activities (n =200)

Notes: Pearson Chi-Square test significance. *, p < 0.05; **, p < 0.01; ***, p < 0.000.

NS, no significant results.

Results show that most of the tourists are generally satisfied with their experience in Cape Town, however there are few complaints emanating from some tourist segments.

In terms of age, the older tourists (51 to 70 years old) disagree mostly that “Cape Town provides tourists with authentic visitor experience”. Authenticity of experience is quite subjective, and may be eroded with urban development and evolving modern lifestyle and attitude. The older generation who grew up in pristine and very traditional environments may have negative perception to the present developments in Cape Town or the lifestyle of the youthful population who serviced them. Hence the same older tourists felt unsafe and reported more that their visit will not memorable, etc. Cape Town therefore needs to pay more attention to the older tourists, addressing their “dissatisfiers”.

As regards, repeat or first-time visitors, repeat visitors seem to have more complaints than the first-time visitors, such as in areas of safety issues and prices of facilities and services. First-time visitors only reported more that Cape Town is not one of the best places they have visited. Repeat visitors can therefore be said to be more concerned with Cape Town as a destination than first-time visitors, based on the loyalty. Arguably, there is more emotional intensity in a relationship than in a once-off contact; hence repeat visitors are more sensitive to safety issues and pricing, in Cape Town. First-time visitors agreed more on safety in Cape Town, probably due to safety and security issues being addressed just before and after FIFA World Cup 2010. Similar results apply to tourists who stayed longer in Cape Town, where many of them disagreed that the local people in Cape Town are friendly and hospitable, and also reported feeling more unsafe while travelling around Cape Town.

Domestic tourists are used to Cape Town as a destination (where Cape Town is similar to their origins), so had less appreciation of Cape Town than international tourists. For example, domestic visitors disagree more with Cape Town offering a memorable experience, gaining new knowledge and experience while visiting Cape Town, reasonable prices of goods and services in Cape Town, good value for money, etc. Most of these tourists are coming from other towns and cities in South Africa, and Cape Town is perceived the most expensive city in South Africa.

This study therefore agrees with the research conducted by Bertan and Alvintas (2013) on the perception of visitors towards Pamukkale, Turkey, which show that the socio-demographic variables of tourists had a significant influence on the way tourists perceived the destination. This study mostly found that age of tourist, repeat visit, length of stay, and tourist origin, have significant influences of how tourists visiting Cape Town perceived the destination.

5. Conclusions

This study presents some good news for Cape Town tourism. More than 40% of sampled tourists are repeat visitors, and “word-of-mouth” was the most popular information source for tourists visiting Cape Town, showing the loyalty of its visitors. More so, more than 92% of tourists surveyed reported being mostly or highly satisfied with their experience in Cape Town. The top three destination attributes of Cape Town (cognitive images), which enhance visitor experience satisfaction are the overall level of service quality at facilities in Cape Town, the city being one of the best places the tourists have visited, and the destination’s good value for money. The top three emotional valuations of destination attributes (affective images) which enhance visitor experience satisfaction in Cape Town include memorable visit, valuable visit, and friendly and hospitable population. This study found that repeat visit, age of tourist, length of stay, and tourist origin, have significant influences of how tourists visiting Cape Town perceived the destination. It is therefore recommended that Tourism businesses in Cape Town develop relationship marketing tools (with strong emphasis on communication capabilities linked to tourists’ demographics) to attract and retain its tourists segments of loyal, advanced in age, long-staying and domestic tourists. While all these segments need to be recognised and appreciated, specific marketing tools are needed to keep them “happy and loyal visitors”.

Dual pricing (for local and international tourists), discounts, and gifts (such as souvenirs), are deemed some of the several promotion tools to attract, appreciate and keep visitors. All these market segments may appreciate gifts. Older, long staying, and loyal tourists may also be attracted with discounts due to their retirement age, length of stay and loyalty, respectively. Domestic tourists may also want to be offered the advantages of dual pricing, to enable affordability and increased numbers of visits. As regards the low score of the safety of Cape Town as a tourist destination, local community collaboration with the police, strong police presence and proper policing in Cape Town will likely be effective in dealing with crime in Cape Town, and reducing the negative perception of tourists towards this city.

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