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Date : 14/08/2006
Source: Department of Environmental Affairs and Tourism
Title: van Schalkwyk: National Conference of Southern African Association


Speech by the Minister of Environmental Affairs and Tourism, Mr Marthinus van Schalkwyk, at the National Conference of the Southern African Association for the Conference Industry (SAACI), Durban

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
   

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