IN COLLABORATION WITH VISITOR RESEARCH REPORT 2022 SOUTH AFRICAN WINE TOURISM Insights into the mindset, motivations and behaviours of 8 000+ wine consumers 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 2 INTRODUCTION Research methods and resources 3 VINTELLIGENCE ONLINE WINE 7 CONSUMER SURVEY RESULTS General awareness of wine routes 9 Source of wine route awareness 10 Western Cape residents source of wine route awareness 10 Other provinces source of wine route awareness 12 Wine route visitation 14 Individual wine route visitation 15 Barriers to wine route visitation 16 Motivators to travel to a wine route 16 Cape Winelands visitation and travel behaviour 17 Frequency of visits to Cape Winelands 17 Cape Winelands as a main destination or add-on 18 Length of trip to Cape Winelands 18 Mode of transport used for visits to Cape Winelands 19 Drivers of destination appeal of Cape Winelands 20 Likelihood future visit to Cape Winelands 20 VINPRO FACE-TO-FACE WINERY 21 VISITOR SURVEY RESULTS Visitor profile 22 Visits on the day 24 Reason for visiting wine farms 24 Reason for visiting a specific wine farm 25 Frequency of visits 26 Information sources consulted 27 Wine engagement 28 Leisure activities and interests 29 Average spend per person 30 WINE TOURIST SEGMENTATION 31 Comparison of wine tourist segments: South African and New Zealand 33 Curious Tourist segment 33 Wine Interested segment 34 Wine Lover segment 35 Frequency of visit by segment 36 Wine engagement by segment 36 Average spend by segment 37 REFERENCES 38 CONTENTS 02 01 04 03 01 INTRODUCTION 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 3 Globally, the tourism industry spends millions of dollars on market research to discover what motivates people to travel, why they select a particular destination, how much they spend, how frequently they travel, and so on. In addition to qualitative metrics, research includes demographic, geographic, economic, social and psychographic factors that help us to gain a deeper understanding of visitors. This information is used to create specific market segments that share particular traits for which marketing campaigns, products and experiences can be developed. INTRODUCTION 01 01 INTRODUCTION 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 4 One of the key objectives of Vinpro’s wine tourism strategy is to generate wine tourism intelligence that focuses on industry needs and addresses knowledge gaps in the sector. Vinpro’s aim with its 2022 wine tourism visitor research study was to develop and implement a method and tool to collect, analyse and interpret information about visitors to wine farms, in order to assist our wineries in better understanding visitors’ needs and to apply that understanding in developing our wine tourism industry. This report is broken up into three sections. It begins with a wide wine-consumer lens based on online surveys looking at awareness levels of our 23 wine routes, and identifying the drivers of awareness levels, wine route visitation and travel behaviour. In the second section, we highlight the profiles of 709 wine tourists interviewed at our wineries, looking at demographics, travel motivation and wine engagement. Finally, we zoom into three wine tourist segments to help our wine tourism marketers understand the characteristics, size and motivation of each segment, in order to better cater to them. The need to identify, understand and communicate with your target markets is a cornerstone of the tourism plan that Vinpro unpacks for wineries in our online resource, the Wine Tourism Toolkit. We link to some of these resources throughout this report to help you implement the research findings in your wine business. An area we emphasise in this report is the opportunity that a positive visitor experience holds to build brand loyalty with your existing consumers and attract new markets. The benefits to your winery of offering a wine tourism experience are well recorded: whether you refer to your winery’s primary tourism facility as a tasting room, a cellar door or a brand home, it gives your wine a credible public face in the mind of the consumer. Most (94%) wineries now have a tasting facility, plus other tourism facilities that account for a percentage of wine tourism revenue (see Illustration 1). General awareness of wine routes segmented by place of residence 94% 45% 43% 41% 34% 12% Cellar Door/Tasting Room Restaurant Conference & Event Venue(s) Wine Tours & Experiences Accommodation Wedding Chapel Tourism facilities at SA wineries Tourism turnover breakdown by activity Wine Tasting Accommodation Restaurant Conference & Events Food served during wine tasting but not Restaurant Wedding Venue Other 32% 25% 20% 12% 5% 3% 3% Graph 2 Illustration 1. Types of tourism facilities at South African wineries and turnover breakdown by activity Source of wine route awareness: WC vs other provinces Western Cape Other provinces 92% 59% 8% 41% Western Cape Other provinces Percentage of people who have never visited a wine route Visited at least one of these wine routes Never visited a wine route Graph 4 72% 67% 40% 29% 20% 12% 5% 66% 59% 37% 27% 26% 17% 3% A special offer/ promotion A special occasion worth celebrating Visiting friends and family Assurance of strict health and safety measure in place An option to book now and pay later An option to pay now and stay later Other Motivators to travel to a wine route Western Cape Other provinces Graph 7 Western Cape Other provinces Each wine route’s hardest worker as source of awareness has been high lighted green in the table 93% 84% 82% 79% 79% 73% 61% 58% 55% 54% 51% 48% 46% 46% 40% 36% 35% 33% 31% 27% 19% 17% 16% 1% 70% 45% 49% 57% 42% 33% 29% 32% 22% 24% 18% 16% 12% 21% 13% 10% 31% 14% 21% 10% 13% 24% 21% 8% Stellenbosch Wine Route Franschhoek Wine Valley Durbanville Wine Valley Robertson Wine Valley Paarl Wine Route Constantia Wine Route Wellington Wine Route Worcester Wine Route Darling Wine Route Swartland Wine Route Tulbagh Wine Route Wines of Elgin Hemel-en-Aarde Wines West Coast Wine Route Breedekloof Wine Route Botriver Wine Route Orange River Wine Route Stanford Wine Route Klein Karoo Wine Route Agulhas Wine Triangle Plett Winelands Midlands Meander SA Brandy Homes None of these 66% 63% 56% 43% 38% 32% 30% 28% 35% 32% 63% 24% 45% 24% 22% 29% Previously tasted wine from the region Previous visit to the region Social media Wine-tasting event in my city/town Advertisement Route was showcased at an event Region was recommended Feature in a travel programme/magazine General awareness of wine routes segmented by place of residence 94% 45% 43% 41% 34% 12% Cellar Door/Tasting Room Restaurant Conference & Event Venue(s) Wine Tours & Experiences Accommodation Wedding Chapel Tourism facilities at SA wineries Tourism turnover breakdown by activity Wine Tasting Accommodation Restaurant Conference & Events Food served during wine tasting but not Restaurant Wedding Venue Other 32% 25% 20% 12% 5% 3% 3% Graph 2 Illustration 1. Types of tourism facilities at South African wineries and turnover breakdown by activity Source of wine route awareness: WC vs other provinces Western Cape Other provinces 92% 59% 8% 41% Western Cape Other provinces Percentage of people who have never visited a wine route Visited at least one of these wine routes Never visited a wine route Graph 4 72% 67% 40% 29% 20% 12% 5% 66% 59% 37% 27% 26% 17% 3% A special offer/ promotion A special occasion worth celebrating Visiting friends and family Assurance of strict health and safety measure in place An option to book now and pay later An option to pay now and stay later Other Motivators to travel to a wine route Western Cape Other provinces Graph 7 Western Cape Other provinces Each wine route’s hardest worker as source of awareness has been high lighted green in the table 93% 84% 82% 79% 79% 73% 61% 58% 55% 54% 51% 48% 46% 46% 40% 36% 35% 33% 31% 27% 19% 17% 16% 1% 70% 45% 49% 57% 42% 33% 29% 32% 22% 24% 18% 16% 12% 21% 13% 10% 31% 14% 21% 10% 13% 24% 21% 8% Stellenbosch Wine Route Franschhoek Wine Valley Durbanville Wine Valley Robertson Wine Valley Paarl Wine Route Constantia Wine Route Wellington Wine Route Worcester Wine Route Darling Wine Route Swartland Wine Route Tulbagh Wine Route Wines of Elgin Hemel-en-Aarde Wines West Coast Wine Route Breedekloof Wine Route Botriver Wine Route Orange River Wine Route Stanford Wine Route Klein Karoo Wine Route Agulhas Wine Triangle Plett Winelands Midlands Meander SA Brandy Homes None of these 66% 63% 56% 43% 38% 32% 30% 28% 35% 32% 63% 24% 45% 24% 22% 29% Previously tasted wine from the region Previous visit to the region Social media Wine-tasting event in my city/town Advertisement Route was showcased at an event Region was recommended Feature in a travel programme/magazine 8 400- 10 200 INDUSTRY FACT PEOPLE EMPLOYED Directly at farm gate in 2019 (depending on the season) ILLUSTRATION 1 01 INTRODUCTION 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 5 RESEARCH METHODS AND RESOURCES For this report, Vinpro embarked on a powerful collaboration with Vintelligence, a dedicated business intelligence solutions supplier for the South African wine industry. Vintelligence shared with us the wine tourism findings of its 2021 Great Big Wine Survey. In its second year, the Great Big Wine Survey saw more than 7 000 participants undertake more than 100 questions, taking on average 30 minutes to complete the survey, including a section on wine tourism. The survey ran from 20 August to 30 September 2021. Vintelligence targeted South African wine consumers through an intensive digital marketing campaign executed via numerous platforms. Participants were incentivised to complete the survey with an opportunity to win a year’s supply of wine. The analysis was conducted by KLA Market Research. One of the most powerful consumer insights from this report was that in-person attendance of wine tastings and food-and-wine-pairing events, and actual farm visits, were the most impactful engagement methods to drive up the average price paid for a bottle of wine, as well as the number of bottles purchased in a month. In 2020, Vinpro, in partnership with the South African Wine Routes Forum, undertook a supply-side study to determine the economic value of wine tourism in the country. The study revealed that in 2019 the wine tourism sector contributed R7,2 billion to South Africa’s GDP and employed between 8 400 and 10 200 people directly at the farm gate, depending on the season. In the broader economic sense, the sector supported 36 000 job opportunities. The research also showed that wine tourism, on average, accounted for nearly 15% of the total turnover of wine cellars that crush grapes, with micro wine cellars (those with an annual turnover of less that R10 million) relying on wine tourism for over 41% of their total turnover (see Illustration 2). These micro wineries make up nearly two-thirds of South Africa’s wine cellars. Age Gender Province Minimum monthly household income 18-24 years 25-34 years 35-44 years 45-54 years 55-64 years 65+ years 23% 29% 23% 13% 8% 4% Male Female 36% 64% Home language Indigenous English Afrikaans Other 65% 18% 18% 1% Gauteng Western Cape KwaZulu-Natal Eastern Cape Limpopo Mpumalanga North West Free State Northern Cape 45% 17% 15% 7% 6% 5% 3% 2% 0% < R10 000 R10 000 – R20 000 R20 000 – R40 000 R40 000 – R60 000 R60 000 – R80 000 24% 18% 24% 14% 8% 12% Within this robustd sample, any identidfied differences between subbroups tdhat is indicated as dstatistically sibnificant has been dtested at a 99% condfidence interval. R80 000 + 17% 19% 18% 16%14% 14% 13% 9% 25% 25% 24% 24% 23% 21%24% 18% 41% 45% 49% 49 %54% 56%55% 62% 11% 46% 54% 66% 39%20% 25% 6% R80 – R100 R60 – R80 More than R100 No engagement Visited a wine farm Been to a wine, food & lifestyle festival Ever attended tasting/ pairing event or experience Follow online wine content Informal social wine group Formal wine club member Completed a formal wine course Mega>R300mn Large >R170mn to <R300mn Medium >R50mn to <R170mn Small >R10mn to <R50mn Micro<R10mn Wine tourism share of total turnover – by winery size % of SA Wine Cellars Wine tourism share of total turnover 41,3 % 14,7 % 2% 8% 2% 3% 10% 14% 21% 27% 65% 41% Micro wine cellars (total turnover of less than R10mil) are most dependent on wine tourism with 41,3% of their total turnover consisting of wine tourism activities Wine tourism represents 14,7% of the total turnover of wine cellars that crush grapes R7,2 billion 36 000 CONTRIBUTED TO THE SA GDP JOB OPPORTUNITIES SUPPORTED SURVEY FIGURES ILLUSTRATION 2 Wine tourism share of total wine cellar turnover 2019 01 INTRODUCTION 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 6 70 974 15 PARTICIPANTS WINE CELLARS WINE ROUTES FACE-TO-FACE SURVEY We also took an in-depth look at the demand side of the sector, or the profile of the wine tourist. This became all the more important as the sector started steadily recovering from the impact of the Covid-19 pandemic and international visitors returned to South Africa’s shores. For the Vinpro wine tourist surveys in destination, a total of 709 visitors were surveyed in face-to-face interviews at 74 wine cellars across 15 wine routes between 26 March and 10 April 2022, a period that coincided with the South African government school holiday and the return of international visitors to South Africa following months of travel restrictions worldwide. Ten wine tourism students from the Pinotage Youth Development Academy in Stellenbosch were recruited and trained, and conducted the visitor surveys. The analysis was conducted by I and M Futureneer Advisors and KLA Market Research. The next phase of this research project entails the rollout of a tool to collect key variables on an ongoing basis, beginning in September 2022 and with the first round of reporting by the wineries by the end October 2022. The catchment will be across all wine routes, and the participation from the winery side is voluntary. It includes documenting the number of visitors to wineries quarterly and on a regular basis, their origin (local, domestic or international), and how they heard about the winery, using either a manual record or a cellar-door data system, or a combination of these methods. Local visitors are defined as South Africans living within 40km or easy driving distance from the reporting wine farm, domestic visitors are South Africans living more than 40km or a longer driving distance from the wine farm and international refers to foreign visitors to South Africa living abroad. The publication of this research report was made possible by a spirit of collaboration between wine industry bodies. A special word of thanks has to go out to all the member wine routes of the South African Wine Routes Forum for their support of the project and their coordination of the face-to-face visitor surveys at wineries during March and April 2022. We also owe a debt of gratitude to Vintelligence for the depth and insight their results lend to this report. We are grateful for the funding support of the Cape Winelands District Municipality for the wine tourism field research without which this project would not have been possible, and thank them for their ongoing support of the wine tourism sector. 01 INTRODUCTION 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS WINE TOURISM REPORT 2022 | 7 In total, 7 003 consumers completed the Great Big Wine Survey online. These consumers were sourced through the Great Big Wine Survey website (31%), a targeted social media campaign and mailer (34%) and a dedicated KLA research panel (35%). 02 VINTELLIGENCE ONLINE WINE CONSUMER SURVEY RESULTS 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS 01 INTRODUCTION WINE TOURISM REPORT 2022 | 8 Domestic day and overnight visitors, as well as international visitors, each have their own particular characteristics and behaviours that influence their travel decisions. Knowing who is interested in a weekend getaway, a long lazy lunch on a summer afternoon with friends, or an intensive wine immersion experience, will help guide your product planning. A valuable insight from the Vintelligence wine consumer research was the positive influence wine engagement had on the price that consumers paid per bottle (see Illustration 4). ILLUSTRATION 4 ILLUSTRATION 3 Profile of the Great Big Wine Survey respondents Impact of types of wine engagement on price paid per bottle 04 WINE TOURIST SEGMENTATION 03 FACE-TO-FACE RESULTS 02 O NLINE SURVEY RESULTS 01 INTRODUCTION Age Gender Province Minimum monthlyhousehold income 18-24 years 25-34 years 35-44 years 45-54 years 55-64 years 65+ years 23% 29% 23% 13% 8% 4% Male Female 36% 64% Home language Indigenous English Afrikaans Other 65% 18% 18% 1% Gauteng Western Cape KwaZulu-Natal Eastern Cape Limpopo Mpumalanga North West Free State Northern Cape 45% 17% 15% 7% 6% 5% 3% 2% 0% < R10 000 R10 000 – R20 000 R20 000 – R40 000 R40 000 – R60 000 R60 000 – R80 000 24% 18% 24% 14% 8% 12% – fi fi fi fi fi bfi fi fi fifi fi b fi fifi fi fi R80 000 + 17% 19% 18% 16%14% 14% 13% 9% 25% 25% 24% 24% 23% 21%24% 18% 41% 45% 49% 49 %54% 56%55% 62% 11% 46% 54% 66% 39% 20% 25% 6% R80 – R100 R60 – R80 More than R100 No engagement Visited a wine farm Been to a wine, food & lifestyle festival Ever attended tasting/ pairing event or experience Follow online wine content Informal social wine group Formal wine club member Completed a formal wine course Mega>R300mn Large >R170mn to <R300mn Medium >R50mn to <R170mn Small >R10mn to <R50mn Micro<R10mn Wine tourism share of total turnover – by winery size % of SA Wine Cellars Wine tourism share of total turnover 41,3 % 14,7 % 2% 8% 2% 3% 10% 14% 21% 27% 65% 41% Micro wine cellars (total turnover of less than R10mil) are most dependent on wine tourism with 41,3% of their total turnover consisting of wine tourism activities Wine tourism represents 14,7% of the total turnover of wine cellars that crush grapes Age Gender Province Minimum monthlyhousehold income 18-24 years 25-34 years 35-44 years 45-54 years 55-64 years 65+ years 23% 29% 23% 13% 8% 4% Male Female 36% 64% Home language Indigenous English Afrikaans Other 65% 18% 18% 1% Gauteng Western Cape KwaZulu-Natal Eastern Cape Limpopo Mpumalanga North West Free State Northern Cape 45% 17% 15% 7% 6% 5% 3% 2% 0% < R10 000 R10 000 – R20 000 R20 000 – R40 000 R40 000 – R60 000 R60 000 – R80 000 24% 18% 24% 14% 8% 12% – fi fi fi fi fi bfi fi fi fifi fi b fi fifi fi fi R80 000 + 17% 19% 18% 16%14% 14% 13% 9% 25% 25% 24% 24% 23% 21%24% 18% 41% 45% 49% 49 %54% 56%55% 62% 11% 46% 54% 66% 39%20% 25% 6% R80 – R100 R60 – R80 More than R100 No engagement Visited a wine farm Been to a wine, food & lifestyle festival Ever attended tasting/ pairing event or experience Follow online wine content Informal social wine group Formal wine club member Completed a formal wine course Mega>R300mn Large >R170mn to <R300mn Medium >R50mn to <R170mn Small >R10mn to <R50mn Micro<R10mn Wine tourism share of total turnover – by winery size % of SA Wine Cellars Wine tourism share of total turnover 41,3 % 14,7 % 2% 8% 2% 3% 10% 14% 21% 27% 65% 41% Micro wine cellars (total turnover of less than R10mil) are most dependent on wine tourism with 41,3%
