CONFERENCES: CTICC Adds Another R2.7b
Recent Western Cape Business News
Cape Town International Convention Centre (CTICC) generated 1 166 141 delegate, visitor and tourist days in Cape Town during the 2008 financial year and contributed R2.7bn to the national GDP.
In the five years of its existence, CTICC has delivered on, and exceeded, all expectations in terms of its contribution to the economy of South Africa.
A new study*, by economist Barry Standish and economic modeller Antony Boting of the University of Cape Town Graduate School of Business, quantifies the centre’s economic performance in real terms, while modelling forecasts for future performance. Delegate, visitor and tourist days are the yardstick by which the centre’s contribution to the economy is calculated.
According to CTICC managing director Dirk Elzinga, CTICC continues to make a strong contribution to the economy of the Western Cape and South Africa. “The economic spin-off for CTICC as compared with earlier predictions has been nothing short of spectacular,” he said.
The most tangible measure of the macroeconomic impact of the enterprise is its contribution to GDP. Standish and Boting place CTICC’s contribution to national GDP at almost R2.7bn. This is an increase of 11.1% over the previous financial year. Contribution to GDP is expected to increase to R3.38bn next year and then to R5.67bn by 2013.
Inflation aside, the primary factor in the contribution to GDP was induced tourism, according to the new report. Induced tourism – tourism that results from visitors to the centre who return to the city at a later stage – was factored into estimates for the first time last year.
At the outset, it had been expected that the impact of induced tourism would begin to be felt by 2007. Now, at R1.16bn, induced tourism is the second largest contributor to the economic benefits generated by the centre.
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