South Africa aims to be one of the top destinations for conferences, but there is still work to be done. Alan Newton looks at Africa's burgeoning events and meetings industry.

The World Cup will next month attract billions to South Africa's economy and benefit neighbouring countries too. Yet real long-term value for the continent lies in the opportunity to demonstrate capability, efficiency and attractiveness as a world-class investment and business destination.

Business people from Western economies are increasingly attracted to holding events in African countries, chiefly because they get more for their money. This will in turn have an impact on opportunities and costs for buyers either involved in hosting meetings and events, or holding and setting up their own. Here we look at what's happening in the industry and why.

Tempting Rates
South Africa aims to be one of the top 10 conference destinations in the world by 2014, yet currently it ranks 34th. The league table for conference host cities ranks Cape Town in 35th place and Johannesburg in 120th. Each is slowly climbing the ranking ladder.

In 2008 business tourism represented 6 per cent of total foreign arrivals to South Africa, contributing more than R3 billion to the economy.

Overall the region is considered very cost-effective for meetings and incentive travel. Even when the rand performs, Africa remains competitive against Western Europe and the US.

The World Cup has seen South Africa expand its accommodation facilities significantly. FIFA requires 55,000 graded rooms a night for ‘the FIFA family' and South Africa has over 100,000 graded rooms in the country and hundreds of thousands of ungraded rooms.

As well as the input into hotel stock, upgraded infrastructure includes a US$1.16 billion on airports and US$5.7 billion on Gautrain, the new rapid rail system that gives commuters easy and rapid access to numerous key points in the Johannesburg/Tshwane commercial and industrial hub.

The Cape Town International Convention Centre (CTICC) has already contributed R11.8 billion to the country's GDP. During 2008-9 it attracted 629 events and 717,000 delegates, 401 of which were national and international conferences. South Africa expects huge international exposure from the World Cup to boost the meetings and conferencing sector in the next few years. One city that maximised its hosting of a major sporting event was Athens; the investment legacy and world focus ensured it has become a highly sought-after destination for meetings.

Outside of South Africa, new hotel stock with good meeting space continues to appear across the region, including properties in Ethiopia, Senegal and Morocco. Most notable is the recent opening of the five-star Mazagan Beach Resort, 90km south of Casablanca (a three-hour flight from most European cities).

Beyond Price
Africa is more than just good hotels at keen prices; the diversity of activities, predictability of fair weather conditions and the sense that this is still one of the less explored locations all help make it attractive to travel buyers abroad.

For example, Libya was hitherto off the meetings and events radar, yet recently it has enjoyed Western investment, benefits from new coastline properties and the appeal of tours to its Roman remains. Mozambique has also opened up after a long period of civil war and boasts beautiful 5-star accommodation.

While desirability of location is not always high on the list for purchasing professionals, Africa's attractions, such as opportunities to view game at close quarters, the thrill of unusual outdoor sports and the beauty of the wine-lands do play a role.

There are drawbacks for Western buyers, however, that may not present such a problem for purchasers in Africa. For one thing, flights are not cheap. Typical group fares range from £330 in low season for Cape Town, to £800 in high season and go up to an average of £1,100 for an economy seat during the World Cup. The most popular months for the meetings and events market are May, September and November so they benefit from better fares and maximise cheaper ground arrangements. There are 17 airlines operating to South Africa, but for the rest of the region access is not always straightforward for all travellers – many need to hub through London or Paris, as direct flights are not readily available to all African locations.

In addition, personal security is often a concern and there has been a lack of investment in security for tourism – including business tourism, although it is now being addressed.

The South African government has invested more than R1.35billion in the past five years to boost policing. The country will use the services of more than 52,000 officers to deal with an expected influx of visitors during the World Cup. And Ghana and Morocco are noted for having far lower crime rates. With sensible vigilance they're as safe, if not safer, than most Western European cities.

The lack of governance around health and safety in the region is also a concern. With the exception of a small handful of destination management companies in South Africa, health and safety is paid little more than lip service. Even in East Africa, Tanzania and Kenya the claims of competency in this area are lacking against standards expected in Western Europe.

Concerns over health and safety are unlikely to go away in the short-term, which means event organisers need to bridge this gap on behalf of clients and undertake risk assessments and site inspections.

The African region has a lot to offer: a strong meetings offering in key locations, highly attractive venue and accommodation pricing across the board, and a diverse range of activities to suit all preferences.

This article first appeared in Supply Management in October. To view this article and others click on the link, http://www.supplymanagement.com/analysis/sector-reports/reach-for-the-stars" target="_blank.