Eco­nomic Ben­e­fits of Host­ing Events in Africa

An In­de­pen­dent re­port has re­vealed a seven-fig­ure eco­nomic boost to des­ti­na­tions that have hosted the Africa Ho­tel In­vest­ment Fo­rum over a six year pe­riod.

Tourism Tattler - - EDITORIAL - By Mar­tin Jansen van Vu­uren. About the au­thor: Mar­tin Jansen van Vu­uren holds the post of Strate­gic De­vel­op­ment & Plan­ning Di­rec­tor at Grant Thorn­ton Cape.

The sig­nif­i­cant eco­nomic ben­e­fits to host coun­tries of the in­flu­en­tial Africa Ho­tel In­vest­ment Fo­rum (AHIF) have been quan­ti­fied in an in­de­pen­dent assess­ment by the in­ter­na­tional au­dit, tax and ad­vi­sory ex­perts, Grant Thorn­ton. The to­tal con­tri­bu­tion to African economies is es­ti­mated at $16.8 mil­lion and since in­cep­tion, it is es­ti­mated that AHIF has been re­spon­si­ble for deals cu­mu­la­tively worth over $4bil­lion.

The head­line fig­ures in­clude di­rect, in­di­rect and in­duced fi­nan­cial ben­e­fits – ac­cepted eco­nomic mul­ti­pli­ers – and run from the first AHIF in Morocco in 2011 to Rwanda last year.

On av­er­age, host­ing an AHIF event brings a mil­lion dol­lars in di­rect ben­e­fit to the lo­cal econ­omy, an ad­di­tional 1.4 mil­lion dol­lars in in­di­rect ben­e­fit and a sub­stan­tial six-fig­ure sum in tax to the host gov­ern­ment.

Ev­i­dence of the suc­cess­ful im­pact of AHIF – or­gan­ised by Bench Events – comes ahead of the sev­enth edi­tion tak­ing place in Ki­gali, from 10 to 12 Oc­to­ber and, like last year, run­ning along­side the air­line route de­vel­op­ment con­fer­ence, Avi­aDev, which to­gether at­tract some of the lead­ing ex­ec­u­tives from the worlds of avi­a­tion and ho­tels, with top gov­ern­ment of­fi­cials and min­is­ters.

AHIF's ben­e­fits: Key find­ings – over 6 years:

• Di­rect con­tri­bu­tion of AHIF to lo­cal economies pro­jected at $6.9 mil­lion.

• Ad­di­tional $9.9 mil­lion gen­er­ated through in­di­rect and in­duced im­pact, ie boost­ing lo­cal sup­pli­ers, in­creas­ing lo­cal spend­ing power. • Pro­jected to­tal of $1.1 mil­lion paid in taxes in var­i­ous host coun­tries. • A pro­jected to­tal of 5,462 jobs – tem­po­rary or per­ma­nent – cre­ated or sus­tained.

• Del­e­gate sur­vey in­di­cates a to­tal deal value of $124 mil­lion, an av­er­age of $4.6 mil­lion per deal – trans­lated for all AHIF events be­tween 2011 and 2016, deals to­tal an es­ti­mated $4.4 bil­lion.

A break­down of AHIF's eco­nomic im­pact can be ac­cessed here. One key gauge of AHIF's suc­cess is the high-level of the del­e­gates it at­tracts – the at­tend­ing CEO's and MD's do not only spend more than av­er­age by stay­ing in the best ho­tels but much more im­por­tantly, they are peo­ple with the abil­ity to make de­ci­sions, in­clud­ing whether or not to in­vest in a des­ti­na­tion – and that's re­flected in the value of deals done.

The re­port also high­lights the fact that host economies ben­e­fit from wide me­dia cov­er­age and from the cre­den­tial of host­ing a top-level con­fer­ence like AHIF. Do­ing so helps to at­tract fur­ther events, which boost lo­cal com­pa­nies and pro­vide job op­por­tu­ni­ties as well as the chance to de­velop skills.

Re­gard­ing Africa's broader eco­nomic prospects, the growth of African coun­tries may have slowed at present be­cause of com­mod­ity prices, but com­mod­ity prices will rise again, and given ho­tel de­vel­op­ment lead-in times, which are three years on av­er­age, and tak­ing into ac­count the life of the as­set, which is decades af­ter the ho­tel is built, this is a good mo­ment for in­vest­ment, in my view.

And my view is sup­ported by Jonathan Wors­ley, chair­man of Bench events, who says: “We are grat­i­fied that this re­port bears out what we've al­ways be­lieved: that host­ing AHIF adds value to the places we visit and the con­fer­ence is a great place to dis­cuss deals which ben­e­fit tourism in Africa. This year's event will be our most com­pre­hen­sive and ex­cit­ing with an out­stand­ing line-up of speak­ers, first-hand ad­vice from ex­perts and unique net­work­ing op­por­tu­ni­ties. Rwanda is a prime ex­am­ple of what can be achieved in our sec­tor by a coun­try that is de­ter­mined to use tourism to pro­pel it­self for­ward and we're pleased to be back again in Oc­to­ber.”

For more in­for­ma­tion visit www.Africa-Con­fer­

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.