The Western Cape government is to spend a total of R142-million — of its total cost of R582-million — on the new foreshore convention centre being built in the Mother City, according to Finance MEC Ebrahim Rasool.
Rasool’s expenditure review for the province indicates that of R103-million to be spent this year on tourism promotion, R85-million will be devoted to the convention centre.
He notes that a further R20-million will be ”taken up” in the adjustment budget — tabled on Tuesday — and a further R20-million in the 2003/04 budget on the centre project.
The provincial government contribution to the centre — which is also being sponsored by local government and business — will total R142-million by 2003/04.
Of this R15-million had been provided in 2001/02 budget and a total of R105-million would be spent in the current financial year. The last amount of R22-million would be spent in 2003/04.
Rasool said that given the role that the convention centres elsewhere in the country were playing ”the provincial government’s investment in the centre
will have positive and long-term benefits to both the unicity and the province.”
The convention centre project has led to a bulge in spending on the government’s business promotion and tourism programme with spending rising from R47,9-million in 2001/02 to R121,3 million in the current year. It is set to drop back to R37-million in the 2003/04 financial year.
The convention centre, which is expected to start operations in July 2003, is expected to create in the region of 50 000 direct and indirect jobs and add R25-billion to the GDP by 2012. – I-Net Bridge