Cape convention centre contributes R2.7 billion to SA's GDP

The centre enjoyed a record year, welcoming almost 550,000 visitors, hosting 500 events - including 42 international conferences, reports SouthAfrica.info.

Cape Town International Convention Centre (CTICC) managing director Dirk Elzinga said in a statement on Friday that the CTICC's contribution to South Africa's economy had exceeded all expectations.

Citing a new study by economists Barry Standish and Antony Boting of the University of Cape Town Graduate School of Business, Elzinga said the CTICC had generated over 1.1-million "delegate, visitor and tourist days" during 2007/08 and contributed almost R2.7-billion to the country's GDP - an 11% increase over the previous year.

"Contribution to GDP is expected to increase to R3.38bn next year and then to R5.67 billion by 2013."

According to Elzinga, the centre already has a well-filled portfolio of 133 international congresses booked for the next eight years (until 2016).

A planned expansion of the centre - a 30,000 square metre development on the site of Customs House on Cape Town's foreshore - was expected to get the go-ahead shortly.

Expected to be complete by mid-2012, the expansion would help relieve the pressure on the CTICC's resources that had resulted from the record occupancy levels of the past year.

Due to space constraints and the number of extremely large conventions held in 2007/08, Elzinga said, the total number of events held at the CTICC had "stabilised at approximately 500".

These included the 14th World Congress of Anaesthesiologists in March, which attracted 7,300 delegates to Cape Town, and the 118th Inter-Parliamentary Union Assembly in April.

In June, the CTICC entertained some 11,000 people at a five-stage musical extravaganza, "CTICC Five", to celebrate its fifth successful year.

Despite the logistical pressure that such events placed on the centre, Elzinga said he was pleased with how well the staff and facilities had coped with the influx of visitors.

He said that the global economic slowdown had not yet affected the attractiveness and profitability of the CTICC, adding that the increasing popularity of trade shows as part of companies' marketing mix augured well for the centre's future.

"Given the diversity of events hosted at the CTICC and the statutory requirements of many of our international clients to host regular conferences, I am confident that the centre will continue to deliver a solid financial performance regardless of the economic climate."

Article published courtesy of BuaNews