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An overview of the Events Industry

The conference and exhibition industry in South Africa is on the fast-track to become one of the country's most important industry sectors, attracting both foreign visitors and foreign investment. The country ranks 22^nd on the list of the most popular events locations in the world, according to the International Convention and Conference Association. It is the principal meeting and conference venue in Africa, contributing more than 63% to the total conference market on the continent. South Africa boasts 1700 conference venues and as new facilities are developed in South African cities, the country is set to increase its 2.5% international market share. The Department of Trade and Industry (dti) reports that 1900 exhibitions are held in South Africa every year and that the industry has an estimated annual turnover of R2,5 billion. According to Mbendi, the high-profile World Summit on Sustainable Development in 2002 alone earned the country R8 billion.

The contribution to the South African economy is staggering. MICE (Meetings Incentives Conferences Exhibitions) tourism pours R17,4 million into the economy, constituting 2,4% of the country’s GDP. International conferences add R951 million to the GDP, while creating 12,000 jobs. It is estimated that delegates spend R333 million per year and that South Africa gains about R6,8 million for the average international meeting. In the incentive industry, South Africa ranks 10^th in the United States as an incentive destination and 2^nd in the United Kingdom as a long-haul destination. The incentive travel market to South Africa is worth and estimated US$200 million.

The above explains why South African cities often cooperate with one another when tendering for an international event. Despite healthy competition within the industry, an international event successfully hosted through joint participation of South African cities will to boost the national industry and benefit the entire country.

Almost half of all international delegates spend an average 4,6 days at other destinations in South Africa, traveling on tours before or after the conference. 21% of international delegates and 10% of domestic delegates take a companion with them to the event.

September, October, March and July are the busiest months for exhibitions and May and September are most popular for conventions.

Gauteng hosts 63% of all events, 73% of all exhibitions and conventions account for 80% of all visitors to the province. Johannesburg has several top facilities and as such most events are hosted in the city, although Durban and Cape Town are the most popular convention cities. Sapa recently reported that according to the 2003 annual "Trends and Spends" survey published by Conference and Travel (CAT) Publications in the UK, Cape Town has taken the number one position as overseas destination for meetings and conferences of United Kingdom-based businesses. The South African city is the preferred long haul destination for the UK meetings, incentives, conventions and exhibitions market, taking the place of the long-standing favourite New York.

The country’s world-class venues can accommodate up to 10,000 delegates in style. However, there is a trend towards venues that are more intimate and outside the city in the country, bush or game reserves. This is interesting to note in light of the fact that 70% of all events hosts less than 100 delegates and that there are less than 50 exhibitors at 77% of all exhibitions.

How do organizations choose a meeting venue? According to the Direct Access Trend Report 2001/2002, the main criterion is cost. South Africa has a clear advantage in international markets as far as costs are concerned. Then, the facilities and service are considered. Again, South Africa can offer the best of both. A final consideration is quality, professionalism and the track record of the venue. In addition to this, South Africa has the advantage of a diverse natural and cultural setting.

The exhibition industry in South Africa compares favourably with their counterparts in the developed countries. This highly sophisticated industry encompasses about 200 companies that employ more than 15 000 people. The industry has grown remarkably since 1996, particularly in the trade and specialized or niche markets and consumer shows. The exhibition industry is expected to grow by another 50% in the next five years.

It is estimated that every R1 spent on an exhibition, R8 is leveraged for the host city. Industries such as tourism, hospitality and car hire benefit directly, as does the South African economy.

The industry is supported by several industry associations and by the government in tapping into the international events market.

The Department of Trade and Industry is responsible for government legislation, policy and administration of this industry sector – their website address is www.thedti.gov.za.

The industry associations include the Exhibition Association of Southern Africa (EXSA) – www.exsa.co.za , the South African Federation of Convention Cities - www.tourismjohannesburg.co.za , the SA Association for the Conference Industry (SAACI)- www.saaci.co.za, and the Society of Incentive Travel Executives – www.award.co.za.

EXSA is a non-profit organization which promotes standards and furthers the interests of those in the exhibition industry. The organization also represents exhibition designers, organizers, stand contractors, venues and related service companies throughout the sub-Saharan region.

SAACI was invited to join the ICCA in 2000, further boosting the South African standing and visibility in international markets.

The Department of Environmental Affairs and Tourism has launched an International Marketing Scheme (ITMAS), with the objective to partially compensate small to medium-sized business for certain costs incurred in terms of activities designed to promote South African tourism internationally. Thus far, the the Department has assisted 227 SMMEs through this International Marketing Scheme. The ITMAS has invested R22 million to provide SMMEs, particularly those owned by historically disadvantaged individuals, an opportunity to market and profile their tourism products and services at international exhibitions.

With the expected growth in the industry, it is important that companies remain informed and alert to opportunities. It will also become increasingly important for companies to network and participate in joint projects to ensure South Africa takes its rightful place as a preferred event destination.