Cape Town International Convention Centre, already hailed as the best convention destination in Africa, has surpassed expectations by hosting 50 more events and drawing 70,000 more visitors in the past year compared with its first year of operation.

Centre MD Dirk Elzinga said the centre was five years ahead of budget with occupancy of exhibitions halls standing at 42%, compared with 34,9% the previous year. International practice showed an occupancy rate of 55% to 60% "was about the maximum achievable".

An announcement is expected within days from Convenco, the centre's holding company, to develop and extend the exhibition area by adding on a property next to the centre.

Negotiations are under way between the centre, provincial government and the public works department to acquire Customs House, a nearby government building, to meet the demand of 10,000m² of additional space. Conveco acting chairman Denis Skeate said this could take "a few years" to finalise.

The convention centre also showed improved financial results contributed R16,4m to Convenco in the past year, after operating expenses, compared with the R9,9m in its first year of operation. Elzinga said such an operating profit was rarely produced internationally and that losses of convention centres were "normally accepted because of the substantial economic spin-off they produce"..

Elzinga said in the past year the CTICC held 367 events, including 47 international conferences, 29 national conventions, 62 banquets and 14 special events such as the musical Mama Mia and the Cape Town Jazz Festival.

He said the centre already had "well surpassed" its budgeted predictions set for up to 2010.

The centre provided 2,347 jobs in Western Cape last year, almost 150 more than the previous year, with the number of indirect jobs created increasing by a 100 to 2971.

Last year the centre hosted 585,444 delegates and visitors, including 18,398 international convention delegates and 335,442 exhibition visitors.

These figures should be viewed in the light that international convention visitors spend R2,754 a day, while national visitors spend R1,875 a day.
 
Business Day
 
Publisher: I-Net Bridge
Source: I-Net Bridge