L Brown: Opening of Congress Year

1 February 2006

Distinguished Guests,
Ladies and gentlemen,

What a pleasure it is to stand here today at one of the City of Cape Town's
greatest achievements and brightest lights - the hugely successful,
state-of-the-art Cape Town International Convention Centre, offering as it does
world-class facilities and exhibition space, which have already been enjoyed by
thousands of conference delegates from far and wide. It is not all that long
ago that we celebrated its proud opening in June 2003.

On that proud day nearly three years ago, managing director Dirk Elzinga
said he hoped to see Cape Town move into the top 10 of the International
Congress and Convention Association's global rankings, within 10 years. I am
sure he, like me, is very proud of the progress we have already made towards
achieving that goal. Cape Town has jumped 17 positions on that list in just two
years, and currently stands in 30th place - placing it on par with destinations
like Sydney, Vancouver and Glasgow.

It is therefore with no small degree of pride and satisfaction that I join
you today to celebrate the opening of Congress Year, declaring that the Western
Cape is indeed firmly on the business tourism map.

There is no disputing that tourism is one of the world's fastest-growing
sectors, attracting billions in revenue every year, and contributing enormously
to job creation globally. It helps to create prosperity and a sense of hope in
regions where there was previously only poverty and hardship, and sows the
seeds for long-term sustainable development of infrastructure and resources.
Tourism is now one of the largest employers in the world, accounting for around
10 percent of the world's GDP and employing some 200-million people.

The South African tourism industry is no exception, and its continuing
growth and expansion is a source of both pride and excitement for all. The
World Travel and Tourism Council estimates that the sector contributes more
than R90 million to South Africa's national and this sector employs over a
million people.

The President and the South African cabinet have just launched the
Accelerated Shared Growth Initiative for SA (ASGI-SA) where Tourism has been
identified as a priority sector for immediate attention. On the provincial
front, my Department of Economic Development and Tourism has developed the
Micro-economic Development Strategy (MeDS) as part of the provincial strategy
of Ikapa Elihlumayo.

In this regard tourism is one of 5 flagship sectors earmarked for special
attention over the next few years. Indeed tourism is a sector, which can assist
us with significant growth and equity, which has to be achieved in order to
push back the frontiers of poverty, create jobs and ensure a better life for
all. Steps like the Tourism Black Economic Empowerment (BEE) Charter and
Scorecard are helping to advance the cause of a more equitable tourism
industry, and more accelerated growth and infrastructure development are
expected in the run-up to the 2010 Soccer World Cup and beyond.

Against this backdrop, it's no surprise that business tourism is also
booming worldwide - especially when one considers that some 3.14-billion people
attend 14 000 meetings around the world each year. Given the size of that
market, it is expected that there should be ongoing demand for new and better
facilities, and more interesting destinations, offering more choice and unique
experiences to business travellers.

And when one considers that the business tourism sector includes not only
these meetings but also incentive travel, conferences and exhibitions, then
it's no surprise at all that the business of business has become BIG
business.

The business tourism industry contributes an estimated R20-billion per year
to South Africa's GDP. This represents around quarter of a million jobs, with
R6-billion being paid in salaries each year, and more than R4-billion in taxes.
In short, the sector is a highly lucrative one, which contributes enormously to
economic development and poverty alleviation.

Here in the Western Cape, we are privileged to have a wealth of facilities
available to service this expanding market. We are also Africa's
fastest-growing business tourism destination and can now proudly assert that
the destination claims some 60 percent of all conference business on the
African continent.

What do business travellers find so appealing about Cape Town and the
Western Cape? In a nutshell, outstanding infrastructure, access, competitive
pricing and high standards of service, combined with a warm welcome and
attractive leisure opportunities.

Our world-class facilities like this International Convention Centre can
host both large and small gatherings; with the expertise of our conference
managers ensuring each event is run professionally. Our accommodation and
transport sectors ensure guests enjoy a smooth commute to meetings and a
comfortable place to stay at the end of the day, while top gourmet restaurants
offer the opportunity for visitors to unwind in style at the end of the
day.

For those seeking a post-conference holiday, there are numerous leisure
attractions within the region, which can be enjoyed all year round.

Our destination-marketing organisation, the Cape Town Routes Unlimited, has
been working tirelessly to capitalise on these factors and grow our market
share in the international business tourism sector. This has involved continual
positioning of our destination as a potential host for conferences, incentives
and business events both locally and internationally. It has also involved our
actively participating in global forums and alliances which promote best
practice in the field and offer valuable networking opportunities.

We are therefore proud to be a participant in gatherings of the BestCities
Global Alliance, the International Congress and Convention Association, and the
Southern African Association for the Conference Industry, to name but a
few.

Cape Town Routes Unlimited, in partnership with industry, has also increased
our marketing presence by participating in leading national and international
marketing platforms like EIBTM, IMEX, AIME and Meetings Africa. These
business-to-business gatherings offer invaluable opportunities to promote our
destination to conference planners and event organisers from all over the
world, improving top-of-mind awareness of our region and its facilities.

The results of this aggressive marketing strategy speak for themselves. Cape
Town has secured numerous leading conference bookings for the years both past
and ahead. Our Convention Centre has already hosted 750 events since its'
opening, of which more than 300 were international conferences. We were chosen
to host the first ever meeting of the BestCities Global Alliance forum, as well
as the Alliance's recent Sales Mission, which saw seven leading international
buyers expressing an interest for future corporate meetings.

Our participation in the World Travel Market last November saw several
important deals secured and contacts made for future business, as well as
providing an opportunity for us to showcase some of our emerging regional
tourism entrepreneurs. At the Global Meetings and Incentives Exhibition held in
Barcelona the same month, 6 major leads were confirmed, which if finalised will
bring more than 36 000 delegates to Cape Town during the 2009 to 2011 period -
yielding nearly R320- million.

We have contributed to securing bookings for some of the world's major
medical and scientific conferences, including the International Congress of
Radiology, which will bring more than 3 thousand visitors to our shores in
September of this year. In November we will welcome some 3 000 delegates from
the International Society of Urologists, and in December, our most exciting
booking to date - 10 000 delegates will meet here for the gathering of the
International Diabetes Federation.

When one considers that the average business visitor spends as much as three
times more money than his or her leisure counterpart, it's clear that this
sector holds enormous growth potential for the Western Cape. And there is still
much work to be done if we are to challenge destinations like the United States
of America (USA), United Kingdom (UK), Spain and France for a larger slice of
the global business tourism pie.

Attracting more of this market is crucial to our plans for addressing the
challenge of seasonality, as business tourism is an all-year-round market,
which is not dependent on a short high season. Growing this sector will help
create a more sustainable industry offering more sustainable employment
opportunities, as well as generating income in excess of R1 200 per delegate
per day.

If we can not only grow the number of conferences and meetings but also
encourage more business visitors to stay for a few days of leisure activities
after their work is done, we will have placed ourselves in a winning
position.

To achieve this, we will all have to raise our standards of service to meet
international expectations. Shorter lead times, more professional planning and
a high priority on security factors are growing trends in this sector, and we
will have to meet these challenges head on if we wish to grow our market
share.

We will also have to seek out new potential clients, cultivate relationships
with emerging associations and tap into new markets like China, India and
others whose economic star is on the rise. It is estimated that by 2010,
business tourism will account for more than a third of the world tourism
market.

It is up to every one of us involved in this industry to ensure that Cape
Town and the Western Cape provides the levels of service and professionalism
which will enable us to succeed in this increasingly competitive and
challenging marketplace.

I thank you.

Issued by: Ministry of Finance and Tourism, Western Cape Provincial
Government
1 February 2006
Source: Western Cape Provincial Government (http://www.capegateway.gov.za/)