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South Africa features on ‘event favourites' list

It is interesting to note that in a period of global ‘credit crunch' my recent travels have shown a continuing growth in the development of hotels, convention centres and airport terminals. The construction crane is surely the world's most popular bird at the moment and there are no visible signs of the process slowing. From Reykjavik to Melbourne there is a perceived need to grow opportunities that attract business tourists to destinations.

The strong get stronger and the wise it seems have no limits. Indeed the recent post-show IMEX survey of Buyers from the Corporate & Association markets predicted “business as usual” despite economic downturns.

Even as I write, however, the markets have become extremely volatile and so the smarter destinations are already planning to make the most of their assets, concentrating on core business and looking to cautious growth rather than stretching themselves too far.

Environmental impact

It would seem that environmental impacts also continue to play a leading role in growing business tourism arrivals to destinations, with a very definite emphasis on social responsibility programmes and eco friendly facilities. Buyers are now specifically asking destinations to provide information on their environmental stances and making selection decisions based upon the answers. Some 80% of international buyers claim to have environmental considerations when viewing proposals.

Other areas of concern for the sector include the need for trained staff. The hotel expansion in the Middle East for example will require some 350 000 additional fully trained staff in the next three to five years. Where will they come from and who will facilitate the training to guarantee the high levels of service expected?

We are in an industry that never stands still and demands are high. At any given major business tourism trade show, there can be some 150 national destinations vying for business... each with many regional and city destinations adding to the competitive mix. They are all seeking a share of the business tourism pie.

Then you can add in the airlines factor, the growth of low cost carriers together with the problems of rising fuel costs and suddenly the access factor becomes a problem for some of the aforementioned destinations. We have had the situation of Alitalia possibly being grounded because it could not meet its fuel bills.

Security concerns

The problem of security is now with us forever. It still ranks high on the lists of planners when they consider where to take their events. Proven destinations will often benefit from repeat business on this very item alone.

Other buyers despair of a lack of appreciation and implementation of communications technology. What works for them at home is not even thought of in some destinations. Thus it becomes difficult for them to take events to these places, as they cannot rely on systems they normally take for granted.

So with all this positive outlook and with continued steady growth ... where, exactly, do the buyers look to place their overseas business?

Favoured eventing destinations

The IMEX June 2008 survey shows that the following destinations (in alphabetical order) as being the highest on most lists of outbound North American market: Amsterdam, Australia, Berlin, Brussels, Buenos Aires, Canada, Costa Rica, France, Frankfurt, Greece, Hong Kong, India, Istanbul, Japan, Kiev, London, Iceland, Madrid, Mexico, Monte Carlo, Portugal, Seoul, Singapore, South Africa, and Tenerife.

Most of these destinations would also feature on European outbound lists.

To summarise findings from the IMEX Buyer Survey... additional factors besides the financial impacts when considering destinations for business tourism events globally would appear to be:
1. Environment
2. Corporate Social Responsibility
3. Security
4. Multi Culturism
5. Advanced Technology provisions

In terms of South Africa it would appear that there are maybe more questions than answers at present. There is a need to create a greater wealth of local knowledge amongst the international buying community as to what is on offer. There is no doubt that Meetings Africa 2009 will be of great importance here.

Tourism is one of South Africa's five top priority economic sectors and within that overall remit business tourism will provide not only valuable and measurable revenue, but also global recognition of the destination as a top player. However much is invested financially there can be no substitute for industry wide ‘word of mouth'. There can be nothing better than this form of accreditation, particularly from top international buyers.

More awareness for SA

Business Unusual is a concept that will bring South Africa more awareness, more recognition and certainly in the longer term, more business tourism (conferences, exhibitions, incentive trips, etc) from a wider international market. It is a way of opening up the ‘treasures' of the destination to global audiences. The continued development of the Meetings Africa trade show will assist this concept greatly.

It can be said that there are too many trade shows within the industry calendar. Whilst this has a ring of truth, it must also be said that there is a lack of high quality shows within the spectrum.

Trade shows must be a 365 days a year event, offering continuous advice, information and direction for participants whether exhibitor or buyer. They should offer research, education and a continued enhancement of the shows themselves. High visibility within the industry and the creation of a “must go” mentality are vital, not only to the event but also to the South African industry.

  • Flackett will be attending Meetings Africa, February 26 - 28, 2009, Sandton Convention Centre, Johannesburg.

  • About Paul Flackett

    Paul Flackett, MD IMEX and international past president, SITE (Society of Incentive Travel Executives).
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