Report: The Cape Town International Convention Centre is Bolstering the Western Cape Economy
The Cape Town International Convention Centre generated more than 130 465 jobs since its inception in 2003, according to its economic impact report.
At its recent annual general meeting, shareholders heard that the CTICC created or sustained 14 620 jobs in the past financial year alone. It is estimated that the CTICC contributed R1.2bn to indirect household income in South Africa during the 2018/19 financial year.
Despite the tough economic trading environment, revenues for the last financial year came to R277m, compared to R172m reported in 2013/14. The centre achieved an operating profit (EBITDA) of R57.5m in the year under review, which was R49.57m above the target of R8m. Compared to the 2013/14 figure of R35.4m, this is a 62% increase.
The convention centre was able to increase its revenue through hosting 417 070 delegates over its 560 events. Furthermore, estimates show delegates attending events at the CTICC likely made a significant contribution to the tourism industry in Cape Town and even the rest of the country.
It is estimated that the CTICC’s events in 2018/19 generated an additional 566 057 room nights in the Western Cape and 575 898 in South Africa. While total foreign exchange spend as a result of the tourism generated by these events is estimated at R677m.
It is estimated that the CTICC effectively contributed a total of R4.5bn to the Western Cape’s gross geographical product (GGP) also known as the value of goods and services produced in the region – and R6.5bn to South Africa’s gross domestic product (GDP). To date, the centre has made a cumulative contribution to the Western Cape’s GGP of R39.6bn and R47.3bn to South Africa’s GDP.
In addition, the centre procured R331m worth of goods and services from local Western Cape suppliers. This equates to 87% of its overall net spend. In respect to Broad-Based Black Economic Empowerment suppliers, R328m was spent – which was 86% of the centre’s net spend. Almost 40% of the total procurement spend was on women-owned enterprises.
This year, the CTICC invested R1.6m in corporate social responsibility initiatives, including venue sponsorships. As for the environment, shareholders were told at the AGM that globally, consumers and event organisers are demanding that companies follow sustainable business practices and processes. Due to the centre’s focus on waste management, energy consumption, local sourcing and water conservation, it therefore regards itself as well-placed to respond to such demands.
The CTICC was awarded the 2019 Delegate Choice Award for Innovation at the International Association of Convention Centres (AIPC) Annual Congress in Antwerp, Belgium. The accolade recognised the CTICC’s efforts in reducing its water usage. Over 100 international conferences are expected to bring over 127 000 delegates to the CTICC up until 2026.
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