Business tourism in South Africa and the southern African region has potential to boost flagging tourism numbers – if the right partnerships are struck.

During the first nine months of 2008, business travellers spent R2.4 billion in South Africa – 32% more than the corresponding period in 2007.

Although the actual number of business travellers declined during this period, these visitors spent more. The average amount spent per business traveller rose from R760 per day in 2007 to R1 200 per day in 2008, according to South African Tourism.

An estimated 6% to 7% of South Africa’s foreign visitors in 2007 were business tourists, translating to about 550 000 business tourists compared to 470 000 in 2006.

The country has well over 1 000 world-class conferences and exhibition venues, ranging from intimate bush hideaways to large-scale, hi-tech convention centres.

In the “2007 M&IT Trends & Spends Survey” by readers of the influential Meetings and Incentive Travel magazine – circulated to event organisers throughout the United Kingdom – Cape Town topped the list of favourable long-haul city destinations, while South Africa was voted the second favourable long-haul country destination.

Cape Town is the top destination for conferences in Africa and the Middle East, and was placed 35th in the 2009 International Congress and Convention Association (ICCA) global ranking.

Business tourism and business travel

Business tourism differs from business travel, which is undertaken for the purpose of conducting commercial or formal transactions, or activities that are related to one’s job, for example visiting a client, signing deals or negotiating a contract (including import/export).

Business tourism, on the other hand, is a trip that is undertaken with the purpose of attending a conference, meeting, exhibition or event, or as part of an incentive trip.

SA Tourism believes business tourism has an important role to play in three areas, namely: contributing to foreign arrivals, reducing seasonality, and transforming the economy by engaging with new and different product offerings.

Business tourism delegates typically stay for a shorter length of time than leisure travellers, but they contribute to both a higher spend per day and greater distribution across the provinces of the country.

South Africa

Robin Mcleod, sales and marketing manager at Dragonfly Africa, says South Africa has seen a large upswing in international meetings and incentives being held in the country, mainly at the three largest convention centres.

There is a restriction on venue choice when it comes to larger numbers attending an event. This is due to international airlift, meeting room sizes, and hotel room availability in the correct grade category (five or four, for example).

International guests prefer to stay in larger cities, as this allows greater choice for activities and restaurants.

Where there is a crossover between business and leisure tourism, there is a pre- and post-programme: when a delegate decides to extend his stay after the incentive or conference to include a personal travel itinerary.

Often, delegates will attend a conference or exhibition with a spouse or family member.

Many conference organisers will thus specifically arrange spousal programmes, and these would generally be more leisure in nature, says Mcleod.

Trends in southern Africa

For incentives, there are a few destinations in southern Africa that are definitely the most popular: Cape Town, safari rides, Sun City and Victoria Falls, says Mcleod.

This is not to say other destinations such as the Garden Route or Durban are less attractive, but the whole point of the incentive is that the destination has to be motivational; and if it is one with which the potential delegate is unfamiliar, then this has limited appeal.

“It is definitely always on our agenda to inform our clients of new venues, especially for second-time visitors,” says Mcleod. “The destination has to offer affordability, an international standard of hotels, interesting and unique activities, world-class restaurants and an overall appeal.

“There are some exceptions, whereby the clients purposefully select off-the-beaten-track locations, but these are in the minority,” he adds.

“I believe that there has to be more synergy between the various tourism boards in southern Africa, where we can work toward promoting the region as opposed to one country. Many incentives would include two centres, for example three days in Cape Town and two in Botswana.”

Southern African hot spots

Carol Martin, international sales and marketing manager of Fairfield Meetings & Incentives, says South Africa’s international convention centres offer an excellent choice of three-, four- and five-star hotels located within close proximity.

Cape Town’s Westin Grand Hotel is located next to the Cape Town International Convention Centre (CTICC), with two Southern Sun hotels directly opposite.

The Victoria & Alfred Waterfront hotels are within walking distance to the CTICC, and they include the One&Only Cape Town, Cape Grace, The Table Bay, The Commodore, the Radisson Blu Hotel and the Victoria & Alfred Hotel.

These are all receptive to negotiations for bulk business tourism bookings.

Cape Town further has the new Taj Cape Town, Mount Nelson Hotel, the Cape Sun and 15 On Orange – all with meeting rooms and located close to the CTICC and the Waterfront, explains Martin.

The mighty Victoria Falls

At Victoria Falls in Zambia, the three-star Zambezi Sun is equipped with conference facilities, and additional meeting space is possible by using air-conditioned marquees in the grounds of this resort.

In conjunction with The Royal Livingstone, there are 385 hotel rooms in the Sun International resort.

The David Livingstone Safari Lodge & Spa, with 72 rooms, is close by on the banks of the Zambezi River.

The Victoria Falls, one of the Seven Wonders of the World, is a great playground offering a variety of activities and experiences such as elegant dining on a vintage steam train, helicopter flights over the Falls, elephant-back safaris, a sunset cruise on the Zambezi River and white-water rafting, to name but a few, says Martin.

There are certain safari lodges that provide facilities for small groups, ideal for a business meeting with the combination of a memorable wildlife experience.

Kapama Private Game Reserve is an ideal example. With daily scheduled flights between OR Tambo International in Johannesburg and Hoedspruit, access to Kapama is quick and uncomplicated.

Kapama River Lodge has meeting space offering exciting safari and conference combinations, says Martin.

Botswana and Mozambique

Mowana Safari Lodge on the Chobe River in Botswana has 111 rooms and meeting space overlooking the river.

With access by way of scheduled flights from Johannesburg into Kasane, Botswana makes this an attractive “Meeting on Safari” option.

Early-morning and late-afternoon safaris take place on the Chobe and overland in Chobe National Park.

After breakfast, delegates proceed with their conference programme, which includes a working lunch and concludes in the late afternoon in time for the safari and sunset cocktails on the Chobe River.

The Joaquim Chissano International Conference Centre is located on the beachfront of Maputo, Mozambique. This international facility has plenary space for 1 000 delegates, translation and media facilities, and breakout rooms with two dining venues in the landscaped gardens, says Martin.

There is a choice of three-, four- or five-star hotels within close proximity.

Maputo’s nightlife is vibrant, as defined by a strong culture of jazz. Restaurants specialise in extravagant seafood menus. The northern beaches and islands provide a choice of fabulous pre- and post-conference tour options, says Martin.

Regional promotion

McLeod says it is extremely important to continue promoting southern Africa as an affordable destination. “With the strengthening of the rand and worldwide economic slump, we have to continuously compete against other destinations.

“Many international organisers are planning events closer to home, rather than South Africa, which for most delegates is at least an eight- to 18-hour flight. We have to make our destination as attractive as possible on all levels.”

Fairfield‘s Martin says that consistent marketing, awareness and education of the destinations in southern Africa suited to business tourism, including sophisticated programmes in the cities, and more relaxed events in combination with safaris in the bush, are required to promote business tourism in this region.

Cape Town

David Frandsen, executive manager of the Convention Bureau and International Marketing of Cape Town Routes Unlimited, told Black Business Quarterly that Cape Town is still the top destination for conferences in Africa and the Middle East, after retaining the 35th spot in the 2009 ICCA global ranking, despite unfavourable market conditions as a result of the global economic recession.

Cape Town is Africa’s number-one conference destination, and the city hosts approximately 50% of all meetings.

“We attribute this to the superb meeting venues in Cape Town, as well as the wide variety on offer from a tourist point of view,” said Frandsen.

“The conference facilities in Cape Town have been a major catalyst in tourism growth.

“From a bidding perspective, the Convention Bureau has bid for 106 conferences globally in the past two-and-a-half years, and has won 50 applications, with the outcome of 29 conferences still outstanding,” he added.

Business tourism, from a yield point of view, is still one of the most valuable sectors within the tourism industry, as delegates may spend anything between R5 000 and R10 000 per day.

One major impediment to the growth of this segment is strength of the rand, which makes it difficult to compete with Europe and Asia.

Nina Freysen-Pretorius, chief executive officer of The Conference Company, recently noted an interesting pattern when delegates attending the 13th International Congress on Medical Informatics in Cape Town booked their accommodation

“Many of them registered and paid early on, but not many took up the conference accommodation,” she said, although she noted that they did eventually stay at the official hotels – once the rates had been reduced.

But was this a result of perceptions created during the Fifa Soccer World Cup, or was it due to the recession?

“I think it’s an international trend for people to book at the last minute,” said Freysen-Pretorius.

“People are becoming more IT savvy: they want to get specials at the 11th hour. They’re using the conference website to look at the official hotels, but then going on to search for specials and best rates.

“I know from my involvement with the International Conferences and Conventions Association that this is an international trend,” she added.

“So what this says to us – and I’m a lobbyist for this – is that we need to look differently at how we offer our accommodation. Potentially, with registration, we’re going to have to say, ‘Here are some special rooms at a lower price, but if you book your accommodation later, it will be more expensive.’ Currently, it’s the other way around.”

Freysen-Pretorius said that the hotels – like the airlines – should be making the lower cost rooms available to people attending conferences, “but they’re just giving us one rate.”

Fanie Heyns