CONFERENCES: Record Occupancy Raises CTICC Revenues
Recent Western Cape Business News
Consistently high occupancy at Cape Town International Convention Centre has contributed to a particularly profitable financial year for the convention centre which this year completed its fifth year of operations.
The improved performance saw revenues for the centre rise by 28.5% to R129m (previously R100m) and a 37% increase in CTICC’s contribution to its holding company Convenco, up from R30.3m to R41.5m.
The high demand for CTICC’s larger venues during the year ended June 30 2008 saw total occupancy of the exhibition halls rise 12% on the previous period to 59% - an increase that is even more spectacular considering the exhibition space itself increased at the beginning of the year. Other venues at the CTICC reached equally high occupancy levels such as the Ballroom (63%) and the main Auditorium (48%).
Venue rentals and food and beverage services were the most significant contributors to the year’s total revenue with the former up 26.2% and the latter by 32.8%. During the period CTICC’s highly accredited kitchens catered for 325 banquets.
During the period the centre welcomed almost 550 000 delegates – well above targets set across all event categories. CTICC managing director Dirk Elzinga said that the record occupancy of the centre’s large venues had put enormous pressure on the CTICC’s resources.
“This makes any further future growth increasingly difficult to achieve,” he said. “We are, however, fortunate that the Board of Convenco is making very good progress in securing the Customs House site for the expansion of the CTICC. We are all hopeful that the project will soon get the final green light.”
Because of space constraints and a number of extremely large conventions held during the year, the total number of events held at CTICC stabilised at approximately 500 after four years of year-on-year growth.
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