Breaking Into The Top 10
Leading Conference Destinations By 2010
Speech By The Minister Of
Environmental Affairs & Tourism,
Marthinus Van Schalkwyk, At The National
Conference Of The Southern African
Association For The Conference Industry
(SAACI), Durban 14 August 2006
Ladies & 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, legkotlas and
bosberade.
It is a great honour
to open this National Conference of the
Southern African Association for the
Conference Industry.
I’m sure you’ll 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% 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 per cent every year.
If we look at the
United States, direct spend in the
business tourism sector during 2005 was
122-billion US dollars, 94 per cent of
which came from the conference,
exhibition and meetings sector that
employs 1.7-million full-time people.
36% 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% 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
spend, 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% of all conferences held on
the African continent, supports 12 000
jobs and contributes R2.6-billion a year
to our GDP - international conferences
alone generate R 951-million and are
worth R42million 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 around those who adapt fastest
and embrace the professional levels of
service excellence demanded by our
fast-paced world.
SAACI, the Southern
African Association for the Conference
Industry 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 lies 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 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,
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 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 dti’s NEDLAC-funded
business tourism study commissioned by
FRIDGE - the Fund for Research Into
Industrial Development Growth and Equity
- 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 SA 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 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 WTOs
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 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% 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 SADC region
and the 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.
