THE BEEKMAN GROUP: Family Business Flies SA Flag High

South African tourism has long been recognised as a vital sector in the country’s challenged economy. The opportunity for quick, scalable, sustainable business growth has been appealing to the government – always on the lookout for chances to build prospects. But with the Covid pandemic came a mayday for the industry. International visitor numbers crashed after a decade of positive growth. Even with the country’s rich cultural heritage and mix of major attractions – including 10 UNESCO World Heritage sites – there was no lure or price that could overcome a legislated nationwide lockdown. When tourism did bounce back, domestic business has been key in unlocking potential. In the second quarter of 2022, domestic tourism revenue sat at R24.4 billion and international revenue at R11.1 billion. The sector continues to represent a significant percentage of the country’s GDP.

For those active in tourism and hospitality, the past three years have been tough. But sustainable, diversified, well-managed organisations have managed to survive and thrive. The Beekman Group, a historic South African holiday business, hunkered down through 2020 and 2021, and is now experiencing growth in new avenues.

A family business with an impressive national footprint, the Beekman Group was established in 1981 after founders Bram and John Beekman moved to Durban from Johannesburg, building a presence in the vacation ownership industry after selling their successful contracting business. The pair went about developing and marketing property for resorts in KZN under the Suntide brand, creating a trusted and exciting offering. As the business grew, expanding into new sectors, its reach became powerful, attracting visitors from around the world, building a portfolio of significant value. The business is award-winning, claiming top regional, national, and international awards for excellence.

It’s a legacy that sees the Beekman name forever associated with the tourism industry in South Africa. Today, the second generation heads up the company, and Executive Director Wayne Beekman tells Enterprise Africa more about the company’s modern structure. Split into five components, the business has a deep knowledge of hospitality, tourism, property, construction, and management.

“Commercial property is growing into a significant property portfolio,” he begins. “Hospitality property management is just under 30 resorts in Southern Africa with an additional seven in Australasia. Our property development is leisure-focused, and we develop and sell off the units, which the owners use for both holidays and as an investment by placing them into a rental pool which we manage on their behalf. On top of that, we have a few timeshare clubs which is part of the origin of the business. There is also a timeshare exchange arm where people can swap or move their access within the year.”

Companies under the Beekman Group include the Beekman Managed Portfolio, the Holiday Club, iExchange, Beekman Holidays, Beekman Leisure Portfolio, Body Bliss, and the Private Residence Collection. As domestic tourism thrives, and as a strong emphasis is placed around regenerating international arrivals, having a diversified group, spread across multiple centres of activity, makes for a very strong offering.

A LOT ON THE GO

Right now, South Africa is looking to new markets for visitors. The hope is to attract travellers from China and India to complement core markets of the USA, UK, Germany, and Australia. Competing against the likes of Egypt and Kenya for international arrivals into Africa, the country must promote its modern infrastructure, and the Beekman Group is an expert in this regard.

“We have a lot on the go,” says Beekman. “Where we have tried to position the resorts, our holiday experience is family orientated and we have put a lot of effort to get first-of-their kind facilities at our resorts. In our industry, we are leading the way with facilities and experiences.”

At the World Travel Awards in 2022, three Beekman Group resorts were recognised as industry leaders. The Cayley Mountain Resort was named South Africa’s Leading Lifestyle Resort; Dikhololo was lauded as South Africa’s Leading Family Resort; and the San Martinho Beach Club was highlighted as Mozambique’s Leading Family Resort 2022. At the awards ceremony in Nairobi, the best in the business came together to acknowledge industry excellence.

“The success of the work done by the team at the resorts is impossible to quantify in one achievement alone. From the quality feedback expressed by our guests to the consistent financial returns enjoyed by our Resort Owners, to awards and acknowledgements such as this one, we are tremendously proud of the holistically innovative culture at the resorts that is reflected in our acceptance of this award,” said Beekman.

A South African company, dealing with South African partners, catering to South African customers as well as a strong international client base, the Beekman Group understands the local market and knows how to make things happen. From head office in Port Shepstone, KZN the Beekman Group team continues to build a strong culture of excellence.

Celebrating further success, the company was praised as the province’s top Family Business for 2022 at the Standard Bank KwaZulu-Natal Top Business Awards. The function in Umhlanga saw Wayne and cousin Neville claim another award that the pair dedicated to the founders, Beekman family, extended family, and all employees and their families.

LOCAL BUSINESS

The company’s local roots are a key part of this success. 1100 people are employed by the Beekman Group across its divisions around the country but the KZN coast is home.

“Our head office is in a holiday town, an hour and a half from Durban. We started off with an office on a holiday resort and the business grew and expanded. We grew here and we had to employ the skills locally. When we started, there were no digital tools, and recruitment was a challenge. It wasn’t easy to travel and get specialists to come here so we recruited and trained people from the local area,” Beekman explains.

“We aim to promote local community upliftment. A lot of the service providers that we use are generally from our area and they are happy to work anywhere in South Africa,” he says, adding that wherever possible the company insources to keep strict control over quality.

When Wayne’s father and uncle founded the company in 1981, they had already been in business together since 1970. Over the past 50 years, the Beekman’s have ridden the rollercoaster that is the South African economy and know about standing up to challenges. But the Covid-19 pandemic was a new type of problem and required strength. Resort managers around the country were kept busy perfecting sites for when customers could return, but it was a difficult time.

“We came through it ok,” says Beekman. “We kept all our staff employed and we made plans to mitigate impacts where we could. During Level 5 lockdown in South Africa, we were forced to close the resorts and refund clients, which hurt financially. We did get through it, and since the pandemic subsided, we have surpassed our pre-Covid figures and we are back on the growth path.

“Our mix has helped us,” he adds. “Where we had traditional owners with the rental arm, owners were still paying their monthly levies. That buoyed us through that period.”

He also highlights the very real and demonstrable returns that were achieved by clients over recent years as a factor which kept people interested, even at the bottom of the rut. This is also a strong indicator of the quality of developments from the Beekman Group.

“On the sectional title investment side, we have really good returns for guys that invest in the properties that we develop. A net return would be up to 13% which is a lot higher than what you’d find elsewhere.”

INVESTING

To capitalise, the company is busy with new developments that will add to an already impressive portfolio.

“We have two new developments that should come out of the ground this year. We are waiting for one sign off in Pretoria, and the other is in Franschhoek,” confirms Beekman. “There are also a number of resorts where we are busy adding new phases to the existing developments, these include The Kingdom Resort, Cayley Mountain Resort, and San Martinho Beach Club.”

Here, the company will offer its traditional timeshare, sectional title and fractional ownership,  options which entitle clients to all the benefits of the Beekman Managed Portfolio.

At the same time, responding quickly to new demands in the market, the company is busy rolling out a glamping offering at select resorts, putting up semi-structured accommodation for those looking to experience a camping getaway but with the convenience of modern amenities.

Technology is also playing its part in the company’s growth, with Wayne Beekman – who started in the IT department in 2000 – pushing for constant innovation.

“We have been working behind the scenes of the software and digital expansion. We are centralised with our own project development team that run with conceptualisation and project roll out internally.

“We have just launched a kids app for the resorts where kids can use phones to scan during the different resort activities they do and interact with entertainment coordinators on the resort. It’s a kind of kids club, with treasure hunts and other activities, and the kids can compete against each other. We’ve had good feedback on that and we are looking to roll it out across more resorts. It all adds to the family experience that we look to create,” he says.

FAMILY TRAILBLAZERS

Just as the company is a family business, promoting a family culture; appealing to families – both domestic and international – is a significant underlying strategy. Taking holidaymakers away from the well-trodden path and into memory making resorts feeds in the Beekman Group vision of ‘making extraordinary holidays the standard’.

“We are striving to trailblaze in family holidays,” states Beekman. “We have resorts in holiday areas and not in the cities where most of the other big chains are based and want to use that to our advantage. We are rolling out software to improve guest experiences, as well as the kids app, and a Digital Butler – an in room tablet through which you can both call on or digitally order from the restaurant and book appointments in the spa. It eliminates the need for any type of phone system and gives a full breakdown of facilities and specials on the resort. Our resorts are large, and taking a quick walk to reception is not always easy.”

Beekman resorts are rich in amenities and regularly receive investment to ensure best-in-class status. In August 2022, the San Martinho Beach Club was upgraded to a four-star luxury accommodation status by Mozambique’s Instituto Nacional do Turismo (INATUR) – highlighted for impeccable cleanliness, on the sunny white sandy beaches – a perfect escape for families.

The Beekman family is taking no breaks for the time being. As a beacon of possibility for the tourism industry, there remains much to do to ensure ‘brand South Africa’ is portrayed in the best possible light against a tough backdrop. In July 2022, Stanlib labelled the tourism industry as ‘a major growth opportunity with the ability to add significant employment, given its high level of labour intensity’. The Beekman family believes in the industry and will continue to devote its expertise to ensure long-term prosperity for all stakeholders.

“It’s rewarding working with family, and while it does have its challenges there are certainly more rewards than drawbacks,” Beekman concludes.

In this resilient and potential-packed sector, the Beekman Group is showing innovation and creativity, achieving growth, and delighting clients. With outcomes like this, further success is surely on the horizon.