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THE STRATEGY – EVENTS CAPITAL
A 156 week strategy (3 year Plan) to enable events packaging and promotion for the Tourism Industry
Attracting the next Mega or Major Event
What the City does
• Provide bulk infrastructure
• Regulate zoning, building and spatial planning
• Deliver basic services and utilities
• Provide roads and transport
• Distribute electricity
The City also
• Promotes, funds, and supports sectors, through grants
The City and the Economy
EVENTS A GROWTH INDUSTRY
• The events industry has grown at an average pace of 6.2% each year globally
since 2003 and is projected to grow 5.5% per year through 2011. Source: The Events Industry White Paper, by AMR International and DeSilva+Phillips
• UNWTO Tourism figures for 2013 tourism growth is up 5% on 2012, and 6% in
emerging economies
• The size of the economy of the City of Cape Town was ZAR428.84bn in
2011 (Wesgro factsheet)
CAPE TOWN SECTORS BY VALUE, 2009 (%)
Agri, forestry
and fishing1%
Mining and
quarrying0%
Manufacturing
16%
Electricity, gas
and water2%
Construction
4%
Trade, catering
and accom15%
Transport,
storage and comms
11%
Finance, property
and business services
36%
community/ social
and personal services
5%
General govt
10%
Event Permit Growth Trend
0
200
400
600
800
1000
1200
1400
1600
2012/2013 2013/2014 2014/2015
Permot Applications
Permitted Events
Column2
As at end March
Job Creation Opportunities
• Event Management
• Event Management Consultant
• Hotel, travel and hospitality Industries
• Advertising Agencies
• Public Relations Firms
• Corporations (Sponsorships/Advertising Agencies)
• News Media
• Non-profit organizations / Sporting Federations
• Integrated Marketing & Communications
• Event Budgeting and Accounting
• Safety Officers
• Venue Management
• Incentive Travel
• Conference Organisers
• Wedding Planners
Jobs created at CTIJF: 2721
SPORTCAL COUNTRY RANKING
Rank Nation Events Overall
1 China 35 44370
2 Canada 39 39031
3 Russia 27 38137
4 United Kingdom 25 37423
5 Italy 31 35165
6 Germany 30 28350
7 USA 25 24560
8 Brazil 10 24001
9 Korea 20 23528
10 France 22 22996
11 Spain 18 21912
12 Netherlands 22 21424
13 Turkey 13 17191
14 Japan 19 16251
15 Austria 15 14876
16 Poland 13 14717
17 Czech Republic 15 13350
18 Denmark 11 11883
19 Sweden 15 11875
20 Australia 12 11505
21 Norway 11 10729
22 Switzerland 11 10564
23 New Zealand 8 9614
24 South Africa 4 9293
25 India 7 8767
Top 10 Tourism in 2012
Rank Country
UNTWO
Region
Int Tourist
Arrivals 2012
Int Tourist
Arrivals 2011
Change
2011 10
2012
Change
2010 to
2011
Sport
Events
Rank
1 France Europe 83.0 million 81.6 million 1.80% 5.00% 10
2 United States North
America 67.0 million 62.7 million 6.80% 4.90% 7
3 China Asia 57.7 million 57.6 million 0.30% 3.40% 1
4 Spain Europe 57.7 million 56.2 million 2.70% 6.60% 11
5 Italy Europe 46.4 million 46.1 million 0.50% 5.70% 5
6 Turkey Europe 35.7 million 34.7 million 3.00% 10.50% 13
7 Germany Europe 30.4 million 28.4 million 7.30% 5.50% 6
8 United
Kingdom Europe 29.3 million 29.3 million -0.10% 3.60% 4
9 Russia Europe 25.7 million 22.7 million 13.40% 11.90% 3
10 Malaysia Asia 25.0 million 24.7 million 1.30% 0.60% 39
South Africa Africa 8.3 million 8.0 million 3.30% 15.10% 24
Seasonality
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
43 60
145 146 135
145
100
195
275
83 82 79
Event Permits Issued 2012/2013
2.1 Destination strengths
• Unique and beautiful natural locations
• Table Mountain - global TV coverage increases when CT Stadium & Table Mountain used as backdrop
• Lots to see & do
• Great culture of event support from local residents
• The long Cape Summers - An outdoors culture
• Small town feeling with big city benefits
• Weather
• Footprint in Afica
General
• Relatively strong destination brand in the domestic and international leisure tourism markets
• Relatively strong destination brand in the domestic and international business tourism markets
• Major sporting activities have created a high status image via media
Destination brand
• Proven organisational capability to host mega events
• More cooperation by the politicians and better service delivery
• Diverse supply of accommodation within metropole
• Diverse supply of events venues and facilities
• Good transport infrastructure
• CT is only SA city with a functional and regular train network
• Can turn around events quickly
Events cape ability
Benefits
• Immovable deadlines and the discipline that come
with them
• A global audience and professional evaluators
• Additional investment from external sources
• Increased visitors who will pass judgement
• intense media exposure
• Intensified local engagement with citizens, firms and
institutions
• A chance to celebrate human skills and endeavour
• Transversal nature of events, fast tracking city
programs
Integrated Events Strategy
• The Integrated Event Strategy was developed in 2011
• Both City and Province support the hosting of Events to support Tourism in the destination.
• Events Policy (approved in 2013) defines processes for decision
making.
• The City of Cape Town IDP states under Programme 1.1(b):
Events programme
• Cape Town has developed a strong track record as an
events destination and continues to host major global
events. The City of Cape Town’s success in hosting events of
various sizes and types, throughout the year and throughout
various parts of the city, has earned Cape Town an enviable reputation as an events destination. This
reputation and branding is critical for business perceptions
about the City as an investment destination.
Events Portfolio
JEWELS
(SIGNATURE EVENTS)
Annual events associated with the area’s identity, and provide
the area with competitive advantage
INCUBATOR
(BREWING)
Smaller events that show potential to develop into jewels
BIDDING
(MAJOR or MEGA Events)
Once-off large, compelling, major market events that have
to be acquired through a bidding process
LEVERAGE
Occur outside the destination, but provide platform to
promote tourism, trade and investment
Events portfolio
Event Portfolio 2013/2014
(Investment)
Jewels (S1) Cape Argus etc. Cycle Tour ABSA Cape Epic Cape Town International Jazz Festival Design Indaba Mining Indaba Old Mutual Two Oceans Marathon Volvo Ocean Race ITU World Triathlon Series MCQP Cape to Rio Big Concerts
Bidding/International (Once off) (S3) World Peace Summit ISO/TCC233 (Disaster Management) CHAN 2014 War Resisters Conference Nelson Mandela Lecture 2014
Incubator (S2) Cape Town Carnival, Cape Town Fashion Week, Cape Town Marathon, Cape Town Tens, Clipper Race, Le’Ormains Queens Plate, Lion of Africa Open, South African Menswear week; 2013 Maboneng Gugulethu Arts Experience, Cape Town World Music Festival, Ironman 70.3; Cape Town Fridge Festival, Rockville 2068, Music Exchange, Cape Town Electronic Music Festival, Burn Digital, SA Ballet Competition, ABSA Enterprise development Expo, Women Innovation Trade Fair; Entrepreneur Expo, PSL Soccer; SPAR Ladies Race, Taste of Cape Town, Music Exchange, Sunshine Ladies Golf Tour;
Leverage (S4) Tourism Indaba Africa Travel Week Jive Funny Festival
Event Portfolio 2013/2014
(Community)
Community Events Minstrels - Cape Town Minstrels Carnival Assoc. Minstrels- Cape Districts Minstrels Association Minstrels - Kaapse Klopse Karnival Sunshine D/Polar Ice cream Big walk Mamre Flower Festival Toy Run Voice of the Cape Festival Community Chest Twilight run WECCMA Indigenous Choral Music Festival and
Competition Gugulethu Beer and Whiskey Festival De Waal Park Concerts DSTV Mitchells Plain Festival Suidoosterfees International Slave Day International Mens Day Mandela Long Walk to Freedom Grand Parade Guineas It is time spiritual outreach Houtbay Community Festival
Community Events St Luke’s Hospice Sunshine Ladies Golf Tour Toughest Fire Fighter Houtbay Sea food Festival Days of the Dinosaur Permuda Human Rights Kwaito House Evolution Neon Run Bantu Church of Christ Centenary SA Climb for Mandela Childrens Hospital Voice of the Cape Festival Moonlightmass TICE
(32)
PUBLIC AND CORPORATE EVENTS
• Council only hosts 1 or 2 major Public Events, such as Switch on of the lights,
per annum.
• Corporate events include title deed hand-overs, opening of new facilities and
street re-naming functions are geared towards cape Town communities and
not the visitor economy.
The Event Strategy is wholly dependent on
PARTNERSHIPS and co-funding by the Events Industry.
WHY 156 WEEK
• The City’s Events strategy and events policy is based on partnerships.
• Payments (whether cash or kind) are facilitated through Section 67 of the
MFMA or through a commercial transaction (in 1 single case).
• The MTREF allows for a maximum planning horizon of 3 years.
• Contracts can therefore only be concluded for a maximum period of 3 years.
156 WEEK PLAN
ADVANTAGES
• Certainty to the Event Organisers of the city’s involvement
• Stablises the Events calendar and allows interested parties to plan.
• Reduced yearly administration with respect to authorities and authorisation.
• Allows for genuine partnerships to develop between the City and the Event organisers
• Allows for the staging of improved event offerings.
• Makes economic sense as the City does not have to negotiate annual increases.
DISADVANTAGES
• Staff turnaround in the Events Industry is relatively high.
• Full Council must approve the 3 year agreement, therefore lengthy approval and Legal processes in year 1.
• Cannot accommodate changes without full Council approval.
• Future budgets are already pre-allocated
Events that Qualify
• Not all events can qualify for three year contracts but are included in the
annual events calendar.
• In order to qualify, events must demonstrate that they comply with the
following:
– Sound business Model
– Competent Management
– Ability to deliver on undertakings made
to the City for the period
– Complies with provisions of Section 67
of the MFMA
- Events Calendar Anchor events
- Target 156 day contracts - 20
EVENTS WITH MULTI-YEAR APPROVALS 1. Cape Town International Jazz Festival 2. ITU World Triathlon Series 3. Africa Travel Week 4. Lion of Africa Cape Town Open 5. Cape Town Cycle Tour 6. Old Mutual Two Oceans Marathon 7. ABSA Cape Epic 8. Cape Town Marathon 9. Cape Town Fringe Festival 10. Suidoosterfees
Annual Contract Renewals
• November each year a list of annual events who have made applications to
the City for event support is tabled to the Special Events Committee
• The Annual Calendar is finalised in February by the Special Events Committee
for inclusion in the Council Budget
• Council approved the budget in May – “Annexure 11 Events”
• Allocations can be accessed from July onwards.
Annual Contract Renewals
Annexure C
Event Lead Department
Financial Year
2014/15
Changes to
Accommodate
World Peace
Summit
Entity Memorandum of Understanding will be
concluded with
51 Cape Town Fringe Festival Arts & Culture - R 2 778 000.00
17 The Loeries Events 1 211 410 The Loeries NPC
5 African Fashion Week Events 1 300 000 African Fashion International (PTY) LTD
22 Cape Argus Pick n Pay Cycle Tour (shortfall on the Events Department) Events 850 000 Cycle Tour Trust
1 ABSA Cape Epic Place Marketing 1 445 000 Cape Epic CC
10 Volvo Ocean Race Events 5 000 000 V&A waterfront (PTY)LTD
14 Cape Town Carnival Arts & Culture 2 350 000
39 Tourism Indaba Place Marketing - R 50 000.00
5 Design Indaba (Interactive Africa) World Design Capital 2 233 655
48 Open Design Festival Arts & Culture 500 000 R 1 000 000.00
45 African Travel Week Place Marketing 2 750 000 Thebe Reed Exhibitions (PTY) LTD
23 Cape Town Marathon Events 2 000 000 Western province Athletics
24 Cape Town Tens Events 200 000 Circle Way Trading 93 (PTY) LTD
25 Community Chest Twilight run Events 100 000 Cummunity Chest
26 Discovery Big walk Events 646 400 R 200 000.00 Big Walk Trust (Cancelled)
27 Festive Season Sub-Council Events Events 400 000
30 Mamre Festival Events 260 000 Sophie Liedeman o.b.o. Mamre Wildflower Festival Committee
31 MAWLID Events 260 000 Mawlid South Africa
32 Navy Festival Events 200 000 South African Navy
33 Old Mutual Two Oceans Marathon Events 600 000 Two Oceans Marathon NPC
35 Sunshine D/Polar Ice cream Big walk Events 250 000 Keep the dream T/A 10km Big Walk
56 DSTV Mitchels Plain Festival Events 250 000 Circle of Life Trading (Sole proprietor)
65 South African Menswear Week Events 40 000 Group of Creatives (postponed)
67 Gordon's Bay Winterland Events 100 000 Gordon's Bay Business Forum
7 Nelson Mandela Lecture Events 1 500 000 Nelson Mandela Foundation
ITU World Triatholon Series Events 1 500 000 R 500 000.00 Worldsport (PTY) LTD
44 Lipton Cup Events 100 000 False Bay Yacht Club
41 Military Tattoo Tourism 250 000 South African National Defense Force
6 Minstrels - Cape District Minstrels Board Arts & Culture 22 218
7 Minstrels - Cape Malay Choir Board Arts & Culture 22 218
8 Minstrels - Cape Metro Minstrels Board Arts & Culture 22 218
9 Minstrels - Cape Town Minstrels Carnival Assoc Arts & Culture 22 218
10 Minstrels - Kaapse Klopse Karnival Arts & Culture 22 218
11 Minstrels - Keep the Dream Arts & Culture 22 218
12 Minstrels - South African United Christmas Bands Board Arts & Culture 22 218
13 Voice of the Cape Festival Arts & Culture 250 000
50 Open Book Festival Arts & Culture 150 000
52 Suidoosterfees Arts & Culture 423 200
53 2013 Maboneng Guguletu Arts Experience Arts & Culture 150 000
CPT Electric Music Festival Arts & Culture 150 000
Infesting The City Arts & Culture 500 000
76 Cape Town World Music Festival Arts & Culture 150 000
16 Cape Town International Jazz Festival Events 2 750 000 R 953 000.00 Events Social Marketing & Production (PTY) LTD
Total: (GL 457300) R 30 975 191.00 R 5 481 000.00
Total: (GL 457300)
From GL 457300 Outlined Above R 5 481 000.00
Public Functions (Events) R 519 000.00
Cape Town Stadium/CT Design funding R 4 000 000.00
World Peace Summit of Nobel Laureates R 10 000 000.00
2014/15 Ammended Events Budget2014/15 Events to be Hosted by the City
457300
R 36 456 191.00
Ad-Hoc Event Approvals
• Not all events can be pre-planned 12 months in advance, this process allows
the City to be responsive when an opportunity arises in the events arena. The
Special Events Committee meets monthly. All applications are reviewed.
Application
• Application is received
• Application is acknowledged
Application Check and
Spreadsheet
• Application is checked, further information requested
• Application information is included into spreadsheet and Agenda
Special Events Meeting
• Special Events Committee meeting is held
• Application is recommended/non recommended for support
The Metrics
1. Visitors.
2. International and national media.
3. Marketing opportunities.
4. Economic impact
5. Social impact
6. Environmental impact.
7. City’s facilities and Strategic Facilities.
8. Seasonality
9. Responsible tourism principles.
10.Event greening principles.
11.Trading opportunities for local traders.
12.Job creation opportunities
13.Local suppliers.
14.Lasting legacies
15.Geographic spread and social integration
The Metrics cont
16. Profit/Not for Profit
17. Financial Model
18. Other Sponsors
19. Management Team and Experience
20. Beneficiaries
A Post Event Report are a standard requirement for all
events who benefit from the City’s Events program.
Event Statistics 2014
1. Cape Town International Jazz Festival
• R553.3 million to the economy • 34 000 festival goers • 350 local and international media • 22 countries represented • 2723 jobs created • Media Value = R199.8 million • 40 Acts, 5 stages • City contribution = R2.75 million •
2. Cape Argus Pick ‘n Pay Momentum Cycle Tour
• R450 million to the economy • Traditional Media Value = R30.3 million • Social and New Media value = R20.1 million • Total Events Exposure = R55 million • 42 684 entries • 34395 starters • 3032 International Entries • 39% participants from outside the Western Cape • 97 countries represented • +72 000 Expo attendees • City contribution = R865 000
Event Statistics 2014
3. Old Mutual Two Oceans Marathon
R266 million to the economy 30 000 entries 27 000 runners in total 11 000 runners in the ultra-marathon 14 610 estimated runners from outside the Western Cape 83 countries represented 50 000 visitors attend the Expo 5.5 live hours of TV coverage Media value = 10 million City contribution = R461 835.99
4. ABSA Cape Epic
R300 million to the economy 1.1 million YouTube views 45 000 spectators along the route 25 000 hours of global TV coverage 600 team entries 175 countries watching on TV 80 nations represented 1st & only mountain bike stage race broadcasted live on TV City contribution – R1.35 million
5. Mining Indaba
R500 million to the economy 7 800 delegates 1 500 international companies 100 countries represented City contribution = R50 000
Event Statistics 2014
6. Design Indaba
• R326 million to the economy • 2 500 delegates from around the world • 367 exhibitors • 416 buyers • 40 000 visitors attend the Indaba • City Contribution = R2.2 million
7. Lion of Africa Cape Town Open
• 156 professional golfers • 41:30 hours of broadcast • Gross Media Value = $7 468 207 • Online Value = R 2 million • City contribution = R2 million
8. ITU World Triathlon Series
• Cumulative audience = 4.38 million over 35 networks • Countries represented = 24 • 109 Elite Triathletes • 1913 Triathletes in total • 32 schools participated • City contribution – R1.5 million