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.
I thank you.
Riaan Aucamp (Minister's Spokesperson)
