Issued by: CTICC


In the year 2006/07 CTICC's contribution to South Africa's Gross Domestic Product (GDP) totalled R2.4bn. The report shows that induced tourism accounted for 30 to 40 percent and delegate expenditure about 50 percent of the centre's overall economic impact.

This contribution is the most important and comprehensive measure of the centre's macroeconomic effect – not only because it represents income, but also because such income has the capacity to add to wealth.

“Induced” tourism reflects the trend of delegates and visitors who attended events at the CTICC in previous years to return to Cape Town as tourists, some becoming repeat visitors. After four full years of operation, induced tourism has become a measurable factor: the report shows that international tourists spent nearly 600 000 days in South Africa this year as a result of their previous visits to events at the CTICC.

But even if the effect of induced tourism were excluded, the CTICC still eclipsed last year's performance by more than two percent in real terms, with a contribution to GDP of R1.4bn. Cumulatively, the contribution to GDP over five years of operation has been R6.8bn, and it is projected that the CTICC will have added a total of about R10.3bn to the country's coffers by 2012.

Nine Thousand Jobs

Likewise, the contribution to job creation during the 12 month period is also significant. This year, 3 796 people were directly employed in the Western Cape as a result of the CTICC – a dramatic increase on previous years. No less than 5 343 indirect job opportunities were created as a consequence of the CTICC, all over South Africa. Many of these jobs could be found in sectors like tourism, retail and transportation.

Even excluding induced tourism, more jobs were created in 2006/07 than the previous year). Direct employment is expected to increase to nearly 5 300 next year (due to construction on expanded facilities), levelling out to about 4 400 in 2010. Indirect employment is expected to further increase to about 7 150 next year.

Standish and Boting predict that the expansion of the CTICC planned for 2008 – essential because of the centre's resounding success – will result in an even greater contribution to the regional and national economies. Capital expenditure due to the expansion is expected to contribute more than R570m to GDP over the next two years.

Large-scale events, such as the World Diabetes Conference, have had a dramatic impact on visitor numbers, leading to a total of 1 242 655 delegate days for all CTICC activities being recorded in the 12 months to June 30, 2007– the highest yet, and an increase of 4.3 percent over the previous year's 1 190 858.

Generating R690.1m this year, the centre is also a major contributor to foreign exchange earnings for the country, of which induced international tourism estimated to have brought in R640.4m.

Standish and Boting project an even greater contribution from next year, increasing from R713m in 2008 to R1.27bn by 2012. Thus far, it is estimated that the CTICC has generated nearly R1bn in foreign exchange. By 2012, this figure is expected to increase to almost R1.3bn, cumulatively earning the country R5.9bn in foreign exchange.

Other benefits include the generation of tax, capital expenditure and the impact on indirect household income. This year, R222.7m was generated in taxes, up from R120.5m last year, and it is estimated that, by 2012, a total of nearly R3.0bn will have been paid in taxes.

After five years of operation, the economic impact of the CTICC throughout the region and nationally is patently evident, while benefits to society are just as important. The expansion of facilities will allow more and larger events in future, further increasing the centre's economic contribution to the city, province and country.

Visit our PRESS OFFICE: Located on Cape Town's northern foreshore beneath Table Mountain, the Cape Town International Convention Centre (CTICC) provides a flexible facility which will meet every expectation of event organizers.- more....

[16 Oct 2007 16:57]

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