Investing in convention centres key to shaping future cities
Business events are essential for Africa’s economic development, creating jobs and improving infrastructure. According to the World Travel & Tourism Council (WTTC), travel and tourism supported 25 million jobs in Africa in 2023, while South Africa’s Tourism Minister has shared that it contributes around $12.7 billion to the continent’s GDP.
But convention centres not only promote business transactions. They also create a vibrant environment for communities for social interaction and cultural exchange.
“In an era marked by rapid urbanisation and burgeoning populations, the demand for innovative, multifunctional spaces is more pressing than ever. Convention centres are a vital component of this transformation, significantly contributing to economic vitality, social connectivity, and contemporary urban design” says Gary Corin, Chair of the Association of African Exhibition Organisers (AAXO)
As we celebrate World Cities Day on 31 October, Corin believes it’s important to recognise the critical role that these venues play in shaping the future of our cities and nurturing a sustainable, thriving urban ecosystem.
A catalyst for economic growth
The International Congress and Convention Association (ICCA) estimates that business events contribute approximately $1 trillion to global GDP. Cities such as Cape Town and Johannesburg have adeptly leveraged their convention facilities to attract international conferences, generating millions in revenue. For instance, in the 2023/24 financial year, the Durban International Convention Centre (Durban ICC) contributed R6.3 billion to South Africa’s GDP, underscoring its crucial role in driving national economic growth.
Lindiwe Rakharebe, CEO of DICC, asserts, “The Durban ICC is not just a convention centre; it is a beacon of opportunity, driving economic growth while positively impacting local communities.”
Adele Hartdegen, CEO of the Johannesburg Exhibition Centre (JEC), highlights, “Convention centres are integral to both local and national economies, serving as hubs where exhibitors and visitors converge to forge important deals.”
The Gallagher Convention Centre (GCC) also plays a vital economic role, hosting between 300 and 400 events annually and welcoming approximately 650,000 visitors each year. Leniese van der Merwe, GCC’s Marketing Manager, notes, “These figures highlight our essential role in the local economy.”
Shaun Bird, General Manager of the Sandton Convention Centre (SCC), echoed these sentiments saying: “The events and exhibitions industry has a substantial impact on local economies, generating significant revenue and facilitating the sharing of knowledge.”
Job creation in the business events sector
The business events sector is also crucial for job creation. According to the WTTC, the travel and tourism sector created nearly 1.8 million additional jobs in 2023 alone.
“Our new initiatives, such as MusicEx, have created over 3,000 work hours, showcasing our commitment to community development,” says van der Merwe. The ongoing growth of the business events sector not only enhances job opportunities but also fosters community engagement and economic resilience, acting as a catalyst for demand in industries such as hospitality and logistics.
Hartdegen from JEC emphasizes the sector’s significant impact, stating, “In 2023, our projects generated over 3,000 temporary jobs, making a substantial contribution to the local economy. “
The Durban ICC estimates that it created and/or sustained approximately 11,387 annualized jobs in the South African economy during the 2023/24 financial year, comprising 6,818 direct jobs and 4,569 indirect jobs.
“Our commitment to sustainability and community engagement ensures that as we attract the world to Durban, we uplift our residents and preserve our environment for future generations,” adds Rakharebe.
Building community
Business events foster collaboration, with a report from the Events Industry Council revealing that 84% of attendees forge new connections, promoting partnerships and innovation. Convention centres serve as vibrant platforms for cultural exchange, allowing cities to showcase their unique heritage to a global audience. This cultural diplomacy is crucial for fostering goodwill and understanding, as these venues bridge cultures through events that celebrate local traditions.
Many convention centres are designed to serve the community beyond business events, hosting local gatherings, exhibitions, and educational programs to enhance participation. “We believe in giving back; our long-standing relationships with local charities have made a significant impact,” says van der Merwe from GCC.
Shaping vibrant, resilient, inclusive urban spaces
Convention centres can serve as catalysts for urban revitalisation, often leading to improved infrastructure, enhanced transportation links, and more vibrant public spaces. The Cape Town International Convention Centre has played a pivotal role in the city’s urban regeneration efforts, attracting further investment and development.
Shaun Bird from SCC notes, “To fully harness this potential, cities must ensure they have first-class facilities and convention centres to attract major events and conferences. This includes upgrading infrastructure and collaborating with stakeholders to create a seamless business tourism experience.”
In alignment with the United Nations’ Sustainable Development Goals, the design of convention centres can prioritise sustainability. For example, Nairobi is integrating green building practices into its convention centre designs to minimize environmental impact.
Convention centres are also instrumental in attracting foreign direct investment. The World Bank indicates that countries with robust business event infrastructures are more appealing to investors. For example, Rwanda’s investment in the Kigali Convention Centre has positioned the country as a key player in the international meetings arena, setting a benchmark for others in the region.
A vision for the future
Bird affirms, “By delivering exceptional experiences, we not only enhance our city’s vibrancy but also contribute significantly to the broader economic landscape.” As African cities continue to grow and evolve, prioritising the design and integration of convention centres will be crucial for fostering vibrant, resilient, and inclusive urban environments.
Investing in these spaces goes beyond mere event hosting; it shapes the future of our cities and communities. “Convention centres play a pivotal role in this effort, serving as catalysts for local economic growth by attracting tourism and business investment,” says Corin. These are more than mere locations; they are dynamic engines of economic growth, job creation, and social interaction that significantly shape the fabric of our cities.”
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