The launch of the Cape Town International Convention Centre last week buttresses the claim that tourism is much more than just leisure.
The creation of the R580-million centre enables South Africa to compete on an equal footing with other world class destinations such as Sydney, Rome and Paris for the meetings, incentive, conference and exhibition (Mice) market.
The international Mice market, which generates $90-billion a year, includes activities such as conventions, trade shows, seminars, exhibitions and incentive travel.
”We all need to start understanding the enormous contribution that Mice tourists make to the economy versus typical leisure tourists,” says Rick Taylor, CEO of the Cape Town Convention Bureau and chair of the Southern Federation of Conferencing Cities.
Cheryl Carolus, CEO of South African Tourism, said: ”I am delighted that the Western Cape has joined the ranks of its sister provinces and is now empowered to work with them in successfully bidding for … high profile events that increasingly want to visit our shores.”
The Cape Town Convention Centre takes its place alongside the International Convention Centre in Durban, the Sandton Convention Centre, Gallagher Estate in Midrand, and the Expo Centre and the Dome in Johannesburg area.
Although the South African Mice industry taps into only 3% of the international market, it contributes about R20-billion a year to the South African gross domestic product (GDP).
This represents 246 000 jobs, with R6-billion being paid in salaries and R4-billion in taxes. Leisure tourism contributes about R61-billion to GDP.
More than R231-million worth of convention business has already been secured for the Cape Town centre between now and 2010.
On average, international convention tourists spend R1 413 per day. Domestic convention tourists spend R1 204. This is about 40% more than leisure tourists spend.
There are concerns in some circles that South Africa’s three major cities will be pitted against each other for conference business. ”There will undoubtedly be competition but what this does is increase the market opportunities,” says Alec Gilbert, CEO of the International Convention Centre in Durban.