CTICC’s ‘incredible year’
Convention centre, a ‘national, strategic asset’, records highest revenue in its history
DESPITE the turbulent economic climate locally and internationally, the Cape Town International Convention Centre (CTICC) continues to ride the wave of prosperity, outperforming all previous records and targets in its 13-year history.
As it prepares for the completion of its R832million East expansion, it recorded the highest revenue, net profit and highest contribution to national and regional GDP in the 2015/16 financial year.
Releasing its annual results yesterday, the CTICC revealed that for the first time, it had exceeded the R200m revenue target by R9m, generating an operating profit of R67m and an after-tax profit of R47m.
It’s also contributed over R3.5 billion to the national GDP, creating over 7 000 jobs and B-BBEE procurement of R522.4m to host 504 events last year, which brought over 40 000 people to the city.
The year in review was also the one in which the CTICC hosted the most international conferences since 2011 – 39.
“It’s been an incredible year, but we are unlikely to see another year of results like this for some time. It’s surpassed the expectations of the board,” said Convenco chairman Andrew Boraine yesterday.
“The CTICC is a strategic asset. It brings economic prosperity to the city, the province and the country as a whole. It’s not just a local asset, it’s a national asset. Its influence reaches far beyond a building on the foreshore.”
But, he added, the business had not been immune to the challenges faced by industries and organisations including new competitors, rising food costs, new international employment practices and visa regulations.
“There’s an irony here. As uncertainty and volatility increase, there’s a greater need for us to connect as people face-toface.
“We remain a solid business despite the adverse conditions in South Africa and the world,” said Boraine.
CTICC chief executive, Julie-May Ellingson said despite the achievements, the centre could not rest on its laurels.
“The financial figures only tell part of the story. The CTICC’s story is one of knowledge sharing, of expansion and about reaching out to our continent, our communities, and, the world beyond,” she said.
International conferences have already been booked up to 2022, and with an additional 31 148 square metres of event space being added next year, the team has its work cut out.
“We have built on the foundation of previous years, focusing on ideas and expansion and extension both physically and geographically in terms of how we seek to reach out and connect with our continent and the world,” said Ellingson.
One of the city’s premier events, the Cape Town International Jazz Festival, is likely to become one of the first to move into the new CTICC East next year.
Other international events already lined up for the space include the first Global Evidence Summit on health policy in September 2017 and the 17th World Conference on Tobacco in March 2018.
The CTICC spent R351m on the new expansion in the past financial year.
It will be connected to the existing conference centre by a glass bridge over Heerengracht and an underground tunnel for service staff.
The City of Cape Town is a 67.8percent shareholder in the CTICC, with the remaining shares held by the Western Cape government (25.3percent) and SunWest International (6.9 percent).