M van Schalkwyk: National Conference of Southern African Association for
the Conference Industry

14 August 2006

Breaking into the Top 10 Leading Conference Destinations by 2010

Ladies and gentlemen,
Distinguished guests:

Humankind comprises highly social beings who love to meet and talk up a
storm. South Africa as the recognised cradle of humankind must surely have
started it all off with our rich heritage and unique agenda of traditional
indabas, lekgotlas and bosberade.

It is a great honour to open this National Conference of the Southern
African Association for the Conference Industry.

I am sure you will agree with me when I say that it is long overdue that the
conference sector of the business tourism industry is recognised as a key
component of all thriving tourism economies.

Global overview

Conferencing and its allied products continue to thrive with a resilience
that seems to defy the looming threat inherent in the many economic, political
and social curved balls presently in play in our troubled world all of which
have the potential to seriously impact global travel.

Conferences and meetings, a vital component of business tourism, is one of
the fastest growing, most complex and little understood sectors of the wider
tourism economy. It has its own special demands to which only those who can
guarantee to meet and exceed expectations with a committed professionalism,
will excel.

This year the global conference and meetings sector is forecast to comprise
10 percent of the estimated 672 billion US dollars being generated from travel
and tourism activity and this overall total is expected to double by 2013 at
the rate of 3,7 percent every year.

If we look at the United States (US) direct spending in the business tourism
sector during 2005 was 122 billion US dollars, 94 percent of which came from
the conference, exhibition and meetings sector that employs 1,7 million
full-time people. About 36 percent of US hotels' operating revenue comes from
conference activity. Corporate planners estimate average budgets to be in the
region of 7,1 million US dollars and 23 percent of all 2005 meetings and
conferences were expected to head offshore.

The statistics are impressively tantalising to leisure tourism destinations
looking to expand their market share. It's therefore not difficult to
understand why so many economies want a piece of this highly lucrative action.
South Africa is no exception.

Because so many delegates are high spenders, usually accompanied and spend
time travelling around on pre and post tours, the market is crucial to
addressing the more equitable spread of increased tourism spending, geographic
spread and seasonality issues. It also enhances economic development by
showcasing investment opportunities to large numbers of delegates whilst on
official conference business.

The South African picture

South Africa's own conference industry, small though it might be at the
present time in comparison to some of the more longer established destinations,
is holding its own on the world platform. In recent years it has successfully
hosted some of the largest, highest profile international conferences on the
worldwide circuit I may add without serious incident and to much acclaim. It
has established an enviable reputation consistently verified by being listed
amongst the international congress and convention association's top 40 leading
conference destinations in the world (32nd) and we have declared our intention
of breaking into the top ten by 2010.

South Africa attracts 63 percent of all conferences held on the African
continent, supports 12 000 jobs and contributes R2,6 billion a year to our
Gross Domestic Product (GDP) - international conferences alone generate R951
million and are worth R42 million in foreign exchange.

Professionalism

There are many destinations around the globe busily constructing dedicated
state of the art conference centres and opening convention bureaux to
aggressively market their destinations, but ultimately success or failure will
be determined by the professionalism exhibited by the industry itself.

There is no doubt that the differentiator between success and mediocrity
will in the future be centred on those who adapt fastest and embrace the
professional levels of service excellence demanded by our fast-paced world.

The Southern African Association for the Conference Industry (SAACI) has for
almost 20 years been the professional mouthpiece of this enduring and dynamic
cornerstone of the South African tourism industry committed to the realisation
that the professionalism it embodies lays at the very core of sustainable
industry growth.

I think it is appropriate here to formally congratulate SAACI for taking the
lead in recognising that a professional industry must be inclusive and - in
affirming its support of the Black Economic Empowerment (BEE) tourism scorecard
- having embraced the philosophy that transformation makes sound business
sense, so let's not forget that history was made last month when having
satisfied strict membership criteria, SAACI accredited its first three
black-owned conference organisers: Moya Events, Joburg; Ikhono Communications
and The Gatekeeper in Durban.

The theme of this year's national conference ‘Professionalism: The Next
Level’ indicates a commitment to creating a confident environment in which
those doing business with South Africa will quickly learn that we don't do
things by halves; that we don't just live up to expectations, but exceed
them.

Sustainable growth

Earlier, I referred to the fact that we live in a world where information is
power.

The World Tourism Organisation (WTO) has admitted that statistically the
meetings and conference industry has in the past been viewed as tourism's "poor
relation". Little heed has been paid to understand its complexity or
intelligently unpacking its full economic contribution and development
potential.

The WTO is only just coming to grips on how it can competently advise the
global industry on gaining greater recognition and address some of its key
challenges, not the least of which is to establish just how the limited data
available can be consolidated to meaningfully guide future growth.

South Africa also appreciates that information is power, that only reliable
and consistent industry intelligence can inform sustainable growth.

The release in September of the Department of Trade and Industry’s (the dti)
National Economic Development and Labour Council (Nedlac) funded business
tourism study commissioned by the Fund for Research Into Industrial Development
Growth and Equity (FRIDGE), is a crucial document that will empower the
conference industry with a tool not only allowing it to benchmark its progress
but also to meaningfully inform and monitor future development. It will also
inform the design of an effective business tourism growth strategy that places
special emphasis on the supply chain and institutional support. South African
Tourism (SAT) and the South African Meetings Industry Federation (SAMIF) will
utilise it as an input into a consolidated and comprehensive business tourism
strategy for the country.

This landmark study has been formulated from primary and secondary research
provided by relevant stakeholders. It also highlights best practice case
studies on the institutional management of business tourism activity in
Ireland, Singapore and Australia.

In addition, we have set up a Tourism Satellite Account (TSA) that will
allow us to fully understand and disseminate detailed flow through statistics
to reveal tourism's full economic impact.

Globally, TSA reports have yet to pull out individual sectoral data sourced
from the conference industry and in this regard be assured we will be closely
monitoring the WTO’s approach in addressing this pressing need for vital
intelligence.

Government together with the public and private sectors is therefore working
confidently towards ensuring that South Africa's business tourism
flourishes.

South African Tourism has launched its Business Unusual campaign in several
of its key source markets - in a world first, the Tourism Grading Council's
(TGC) decision to expand its voluntary star grading to conference facilities
and incorporate accessibility criteria are both highly competitive developments
to ensure South Africa is positioned at the leading edge of responsible tourism
excellence. We aim to have 60 percent of all 1 700 conference facilities
identified at the present time graded by 2010 helping to assure the quality of
our visitors' experiences.

In collaboration with the South African Development Community (SADC) region
and the African Union (AU), we also intend to create a more uniform experience
that guarantees the quality of a seamless African tourism experience for
business travellers visiting any of our countries.

Conclusion

South Africa is renowned for breaking new ground; for succeeding against all
odds. I have no doubt whatsoever that the goals we have set ourselves in
securing a meaningful share of the world's conferencing market will be realised
within record time. I congratulate SAACI in its pursuit of excellence and to
ensure that the mature professional voice of a transformed industry is heard on
the world stage.

By working together South Africa cannot fail to become one of the world's
favourite conferencing destinations.

I thank you!

Issued by: Department of Environmental Affairs and Tourism
14 August 2006