The recent contribution of R 2.7 billion by the Cape Town International Convention Centre (CTICC) to South Africa’s Gross Domestic Product coupled with the fact that the centre hit a record high in terms of the number of delegate, visitor and tourism days is further testament of the pivotal role that the centre plays in driving sustainable economic growth in the province.
Speaking today at the centre’s Annual Results Press Conference, CTICC Chief Executive Officer, Rashid Toefy says” “Despite the aftershocks of the global recession the centre has continued to deliver and exceed all expectations in terms of its contribution to the economy of South Africa and the Western Cape. The 2010/2011 year under review was one characterised by a number of notable achievements, not least of which was the fact that the CTICC generated over R143 million in revenue and contributed to the creation of over 7800 direct and indirect jobs.
A recent study*, by economists Barry Standish and economic modeller Antony Boting, which quantifies the centre’s economic performance in real terms, revealed that during the period under review CTICC contributed R 2.7 billion to national Gross Domestic Product (GDP) and R 945 million to Gross Geographic Product (GGP). This represents a total increase in contribution to GDP of over 16% in 2010.
In addition the centre also generated 1 243 910 delegate, visitor and tourist days in Cape Town, the highest number recorded in its eight year history. “Of these visitor and tourist days, 437 500 (35 %) were comprised of international visitors and delegates” says Toefy. Inflation aside, the primary factor in the contribution to Gross Domestic Product (GDP) was induced tourism defined as tourism that results from visitors to the centre, who return to the city at a later stage. As a result of induced tourism generated by the CTICC international tourists spent nearly 422 000 days in South Africa.
The centre remains committed to its triple bottom line and therefore measures the effectiveness of the business through the criteria of its economic, environmental and social performance. “CTICC is not merely an events and meetings venue, but a key driver of jobs and opportunity creation” says Toefy. By the end of 2010/2011, 58% of all CTICC procurement spend was with BEE businesses and suppliers. CTICC awarded over 32 tenders in excess of R 53 million. “Enabling the development and growth of Small Micro Medium Enterprises (SMMEs) is a core strategic imperative for the CTICC and effective BEE supply chain procurement practices has always formed part of the centre’s key performance indicators” says Toefy.
Toefy concluded by saying that the CTICC has, to date, made a contribution of R16.8 billion to the national economy (GDP) and is expected to contribute another 18.1 billion over the next five years bringing it closer to achieving its vision of being the best long haul international convention centre by 2020.
