Cape Town - Saturday’s rugby Test match between the Springboks and Wales at a Cape Town Stadium packed to the rafters for the first time since the Covid-19 restrictions were lifted has been seen as an indicator of an economic boost expected for the events sector.
The events industry has been hit hard by the lockdown restrictions, bu more major events planned for the city and province are expected to offer a much-deserved boost to the hospitality sector by attracting visitors and generating tourism interest.
Cape Town Tourism (CTC) CEO Enver Duminy said the sector had lost more than 30% in jobs and revenue in Cape Town alone, and the need to recover as quickly as possible, grow demand and revenue and reclaim jobs was critically important.
“Events like Saturday’s rugby go a long way in rebuilding destination brand confidence but also increase visitation from both local South Africans and foreign international tourists.
“As a founding member of the Cape Town Declaration of Responsible Tourism, we are cognisant of the impact that tourists have on the local economy, environment and communities,” he said.
Duminy said CTT would work closely with the City and the wider tourism industry to ensure a balanced approach to hosting mega-events that have positive economic outputs.
While more than 100 bookings for the Cape Town International Convention Centre (CTICC) were secured by March this year, it said it was anticipating the number to increase as its team engaged with domestic and international event organisers to bring their events to the city and the CTICC.
Taking place at the CTICC from August to December are several conferences ranging from medical, engineering, education, investment, and financial services. The CTICC would also host Africa Oil Week, Windaba, an annual wind energy event in October, and AfricaCom in November.
Economic Growth Mayco member James Vos said with more conferences taking place in the city’s world-class conferencing venues, it benefited the accommodation, hospitality sectors and transportation service providers. Vos said more flights landing in the city benefited tourism businesses and investment opportunities.
He said the upcoming Formula E race, would also bring a long-term economic impact resulting from expenditure on new, or brought-forward, infrastructure such as transport improvements. “Cape Town’s visitor economy is a pillar of the city’s wider economic landscape. Before Covid-19, the sector contributed between 2% and 3.5% annually to the local economy and sustained up to 5% of all jobs in the city, not to mention those working in affiliate industries,” he said.
Vos said aviation was a key industry for Cape Town’s continued economic growth. Last month, Vos said Cape Town International Airport processed up to 30 663 total passengers in a day, while in May, domestic and international passenger numbers recovered to almost 80%.
“Under the banner of aviation, we must look at opening up our air transport market even more. Where implemented, it has resulted in increased utilisation of airspace, more competitive fares, and more choices for the travelling public,” he said.
Finance and Economic Opportunities MEC Mireille Wenger said that in the past, major sporting events such as Rugby Sevens tournaments had injected hundreds of millions into the local economy.
Cultural Affairs and Sport MEC Anroux Marais said the Province was looking forward to several big tournaments coming to the city, including the upcoming Rugby World Cup Sevens, the Hockey Masters World Cup, as well as the Netball World Cup in 2023.
She said in December the World Sevens Series would return to the city to present an opportunity to fill up Cape Town Stadium again.