Wine tourism a golden opportunity for wineries to bring in more money, says agricultural banking expert

The Money Show's Stephen Grootes is joined by Daneel Rossouw, Head of Sales for Agriculture at Nedbank Commercial Banking.

Did you know that South Africa is recognised as one of only two principal wine tourism locations alongside the USA's celebrated Napa Valley, by the UN World Tourism Organization (UNWTO)?

In a piece for Bizcommunity, Nedbank's Daneel Rossouw makes the case for growing the local wine industry by making wine tourism its 'superstar attraction'.

It is an outstanding position to reach new heights via this route Rossouw argues.

He cites the 'staggering' numbers reflected in the latest available stats, which show that wine tourism contributed R9.3 billion to South Africa’s GDP in 2022.

"That's about 17% of total winery turnover; and we can see by the increase from 2019/2020 up to 2022 that it is a value addition to the industry that is still growing."

Daneel Rossouw, Head of Sales: Agriculture - Nedbank Commercial Banking

"The potential is immense - we have 522 wine cellars across 23 different regions, so it's quite diverse as well."

Daneel Rossouw, Head of Sales: Agriculture - Nedbank Commercial Banking

And it's not only about attracting more international visitors - Rossouw points out that local wine tourism is increasingly popular, with 37% of all visitors from within a radius of 60-70 km from a particular estate.

He believes the key to making the most of this 'golden opportunity' is building your brand, maximising the experience for clients and, through that, generating return business.

"Getting market share in this space is all about the experience that someone gets from a wine estate... It is knowing your client and their preferences, and creating that experience for them."

Daneel Rossouw, Head of Sales: Agriculture - Nedbank Commercial Banking

The research shows that wineries don’t even need to invest in costly accommodation options to cash in on the wine tourism trend, Rossouw says.

"By simply adding daytime experiences like inviting restaurants, charming farm stalls, and family-friendly events and activities to their wine tastings, they can attract more visitors, boost sales and profits, and build a direct marketing database."

Daneel Rossouw, Head of Sales: Agriculture - Nedbank Commercial Banking

Scroll up to the audio player to listen to the interview, and click here to read Rossouw's detailed analysis