SOME commentators have expressed doubts about the viability of the R1,5bn convention centre planned for Centurion, saying the convention industry is overtraded.

However, others believe that if it is successful it could have positive spin-offs for the leisure property market in Gauteng.

The Tshwane International Convention and Entertainment Centre which will be built in the shape of the African continent will compete with similar facilities in Durban, Johannesburg and Cape Town in a convention industry worth about R325bn a year.

The 4ha development, to be built near the lake-side shopping centre of Centurion City, will accommodate more than 10000 delegates and include both a three-star and a five-star hotel.

The consortium developing the complex comprises Community Investment Holdings and Bantsho Investment Holdings in partnership with the Tshwane metro council.

The Sunday Times recently reported that developers were to bid for the new centre to become the permanent headquarters of the Pan African Parliament.

The director of the imminent, temporary home of the parliament, Andrew Dunkley of Gallagher Estate, said he believed another centre was not viable but this was rejected by the CE of the planned centre, Jacob Ngakane . He said South Africa had only 2% of the international conference market and that existing centres already were fully booked for the next decade .

Brian Kirchmann, CEO of the South African Property Owners Association (Sapoa), says it is "debatable whether we will fill all these convention centres" and make them viable.

But Kirchmann hastens to add that when convention centres are viable they have a "tremendous positive effect" on the property industry because hotels, lodges and general accommodation will always be needed close by.

" I do believe that SA has become a destination for people from the rest of the world. I do believe that international conventions will be brought here given the attractive venues we have, coupled with international-class convention centres."

Kirchmann says that as long as studies have been carried out showing the new centre is viable, he would "obviously support another convention centre".

Property economist Erwin Rode, of Rode & Associates, says convention centres always resulted in spinoffs for the hospitality sector. "The mere fact that so many centres are booked out for so long into the future indicates there is a need for more convention centres in Africa."

He does not believe the numerous convention centres will compete with one other and any new developments would "just enlarge the cake".

Rode says convention centres have spin-offs for the leisure property market.

"You come from Europe to attend a convention in Centurion and then afterwards go to the Kruger Park for a week. It's good news for hoteliers, for parks and game farms," he says.

"The convention centre will strengthen the Johannesburg-Pretoria corridor and we could see more economic activity along the corridor which highlights the need to widen and upgrade the N1 or build an alternative route."

Taking a five- to 10-year view, property economist Francois Viruly says there will be much higher levels of development on the Johannesburg-Pretoria axis.

He says that one of the issues that has limited growth in the Midrand area has been infrastructure and accessibility. The success of the Centurion, Pretoria and Midrand property markets would depend on the ability to link these nodes together with a rapid transport system, he says.

Jul 21 2004 07:47:28:000AM Nick Wilson Business Day 1st Edition