In the fifth annual study on the macroeconomic effects of the CTICC, conducted by Barry Standish of the University of Cape Town Graduate School of Business and independent economic modeller Antony Boting, the impact of the convention centre’s activities on the economy is shown to be significant.

In the year 2006/07 CTICC’s contribution to South Africa’s Gross Domestic Product (GDP) totalled R2.4bn. The report shows that induced tourism accounted for 30 to 40 percent and delegate expenditure about 50 percent of the centre’s overall economic impact.

This contribution is the most important and comprehensive measure of the centre’s macroeconomic effect – not only because it represents income, but also because such income has the capacity to add to wealth.

“Induced” tourism reflects the trend of delegates and visitors who attended events at the CTICC in previous years to return to Cape Town as tourists, some becoming repeat visitors.

After four full years of operation, induced tourism has become a measurable factor: the report shows that international tourists spent nearly 600 000 days in South Africa this year as a result of their previous visits to events at the CTICC.

But even if the effect of induced tourism were excluded, the CTICC still eclipsed last year’s performance by more than two percent in real terms, with a contribution to GDP of R1.4bn.

Cumulatively, the contribution to GDP over five years of operation has been R6.8bn, and it is projected that the CTICC will have added a total of about R10.3bn to the country’s coffers by 2012.

Job creation:

Likewise, the contribution to job creation during the 12 month period is also significant. This year, 3 796 people were directly employed in the Western Cape as a result of the CTICC – a dramatic increase on previous years.

No less than 5 343 indirect job opportunities were created as a consequence of the CTICC, all over South Africa.

Many of these jobs could be found in sectors like tourism, retail and transportation.

Even excluding induced tourism, more jobs were created in 2006/07 than the previous year. (Direct employment is expected to increase to nearly 5 300 next year (due to construction on expanded facilities), levelling out to about 4 400 in 2010. Indirect employment is expected to further increase to about 7 150 next year.

After five years of operation, the economic impact of the CTICC throughout the region and nationally is patently evident, while benefits to society are just as important.

The expansion of facilities will allow more and larger events in future, further increasing the centre’s economic contribution to the city, province and country.

Molo Says: “Read more about B&B & hotel Accommodation near the Convention Centre or check out the location of the CTICC in our Google Earth Map of Cape Town.”

For more stories on Capetonian successes and information on Cape Town subscribe to our free monthly Editor’s Picks Newsletter.