South Africa National Convention Bureau

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1 South Africa National Convention Bureau Panel Session: Accelerating the City of Tshwane s Stature as a Business and Leisure Tourism Destination of Choice Amanda Kotze-Nhlapo Chief Convention Bureau Officer Date: 17 May 2016

2 Tourism VS Business Events Micro Economic Tourism Direct Spending Employment Tax Revenues Business Events Economic Impact Comparisons Focus Attracts the world s industry and thought leaders Platform Showcases innovation, products and expertise Profile Generates media attention as a place to do business Investment Provides a world stage if they see it, they will invest. Exports Stimulates international markets for locally produced goods and services Networks Builds business contacts, trade and research links Macro Economic Access Knowledge Delivers access to new technologies and exchange of ideas Strengthens professional expertise

3 Current Market Conditions SA Growth Steady growth but we are reaching a glass ceiling Delegate Numbers Globally delegate numbers at conferences are dropping Long haul destination present risks in terms of attracting delegates Profitability The drop in delegate numbers have a direct impact on the profitability of conferences Organisers are dependant on the revenue streams that events offer their organisations / associations Competitiveness SA is still competitive compared to other long haul destinations and the leading destination in Africa and the Middle East Middle East destinations have a higher growth rate Future Pipeline The international meetings segment is becoming more competitive and SA s bidding submissions are reducing resulting in a shrinking pipeline of secured business Regional Focus Leading destinations are focusing more on regional conferences as it is less competitive Regional conferences return to destination more frequently

4 TSHWANE Key Requirements: Business Events Destinations Corporate Meetings Ease of Access Infrastructure and Support Services Cost Effectiveness/ROI Reputation/Perception of Destination Conventions Active Membership Meeting Facilities and Technical Support Bidding Support Accessibility by Air Exhibitions Size of Local Market State of the Economy Ease of Doing Business Trade Relations Exhibit Space Overall Cost Incentives Unique Experience Safety and Security Ease of Access Value for Money

5 Intellectual Capital Economic Landscape Many advances in technology, science, and medicine are radically changing the social and economic landscape of the global economy. Innovations Innovation and collaboration are drivers of change but a destination s wealth in knowledge and human capital is the new magnet for growth and prosperity RESEARCH AND DEVELOPMENT CENTRES There are 8 national research centres located in Tshwane, including: CSIR (Council for Scientific and Industrial Research) HSRC (Human Sciences Research Council) ARC (Agricultural Research Council) NRF (National Research Foundation) MRI (Medical Research Institute) VRI (Veterinary Research Institute) SABS (South African Bureau of Standards) IERI (Institute for Economic Research on Innovation) UNIVERSITIES Tshwane University of Technology University of South Africa Medical University of South Africa University of Pretoria AFRICAN ASSOCIATIONS 36 Tshwane 50 Johannesburg

6 ICCA Ranking 2015 SA RANKED: 38 TH GLOBALLY 10 Non ICCA Conferences 1100 Delegates 34 Conference Days Estimated Economic Impact: R7.3 Mill

7 Growth Potential: Africa Current Scenario and Growth Potential GLOBAL ASSOCIATION CONFERENCES Conventions held in South Africa of which 13 were regional SA MARKET SHARE Conventions with Rotation International Conventions Conventions Hosted in Africa ICCA estimated average attendees at conventions: 600 African Association Stats No African Associations (Database) 770 African Associations HQ s based in SA 178 African Associations HQ s based in other African countries 592 Regional African Meetings Rotation 218 Resulted in Regional conferences hosted in last 5 years 610 SA Hosted in the last 5 years only 10% 63

8 How will we achieve this growth? Defend International Association Segment Lead Generation: Trade Shows and Sales Activities Leads Generation from Int Sales Reps Local Associations with links to Int Assn Local Industry Support Services Grow the African Association Segment Establishment of an African Association for Association Executive Targeted African roadshows and sales mission Meetings Africa: African Association Focus African Assn based in SA Measures ICCA Ranking UIA Economic Impact Delegate Numbers ROI # of Events Hosted

9 Market Priorities May 26, 2016 South African Tourism 2014

10 South Africa Key Industries/Sectors by Provinces Gauteng Key Industries: Financial and business services, logistics and communications, mining, agriculture (food processing and beverages), medical 1, automotive 2 manufacturing, R&D 3 and telecommunications and technology North West Key Industries: Mining (mainly Platinum), tourism (game reserve, nature reserve, etc.) and agriculture Northern Cape Key Industries: Mining (mainly Diamonds, Iron-ore), tourism, gamefarming, astronomy and agriculture Limpopo Key Industries: Mining, tourism (game reserves), agriculture and hunting industry / game farming Mpumalanga Key Industries: Mining (Coal), agriculture (citrus fruit production, agri-processing and sheep farming), tourism (eco-tourism), game farms and manufacturing Free State Key Industries: Mining (Gold, Coal and Diamond), agriculture, petrochemicals and manufacturing (high-tech industries) 4 Western Cape Key Industries: Finance, printing and publishing, real estate, ICT, oil and gas, retail, engineering, R&D 4, clothing and textile, agriculture, ship building / ports, tourism and medical 1 5 Eastern Cape Key Industries: Automotive manufacturing, finance, real estate, agriculture (sheep farming and fishing), wholesale and retail trade, tourism, ports 5 and hotels and restaurants 6 KwaZulu-Natal Key Industries: Mining (Aluminum, Steam Coal, Minerals), manufacturing (petro-chemicals, automotive), tourism, ports, leather industry and agriculture, real estate, medical 1

11 Business Delegate to Leisure Tourist Convention

12 Conversion Strategy We are currently not maximising the opportunities presented to convert business delegates into leisure visitors and to extend their stays Leisure Campaigns executed at Delegate Boosting Activations Optimising international resources: Global Marketing, Digital and Product More resources to trade to market Pre and Post Tours Measures: Pre and Post Tours Data from research

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