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Sep 11, 2007:
The further expansion of the Cape Town International Convention Centre (CTICC) is good news for the city, and its benefits may even extend into the property market.
So says Mick Joyce, Pam Golding Properties' (PGP) managing director for the Western Cape metro region, who was responding to the recent news that the provincial government has given the go-ahead for an R800m plan, which will see the CTICC extended on to the site of the old Customs House on the foreshore. Demolition of the existing building is expected to begin soon.
"We have already seen what a major impact the CTICC has had on the Cape Town tourism industry since it opened its doors in June 2003," says Joyce.
"It has hosted over 750 events including more than 300 international conferences, some with over 10,000 delegates. It has attracted thousands of business tourists in the crucial Meetings, Incentives, Conventions and Exhibitions (MICE) market."
"As a result, Cape Town is now ranked 29th in the world as a convention destination by the International Congress and Convention Association and attracts 60% of all convention business in Africa.
"More major conventions are booked into the future, with gatherings of over 10,000 delegates confirmed for 2008, 2009, 2012 and 2014. In short, it has ensured that we are now firmly established on the global business tourism map."
How does this relate to the property market? Joyce points out that the business tourism sector currently contributes some R20bn per year to our gross domestic product (GDP), and creates hundreds of thousands of jobs. The result is more investment in infrastructure, which has positive spin-offs for all other sectors including property.
"What's more, these thousands of visitors who come to Cape Town to attend conferences – many of them bringing their partners with them – are also exposed to the city's scenic beauty pleasant climate. Not only does this convince many of the delegates to return as leisure tourists at a later date, but some may also opt to go a step further and invest in local property."
In the months following the 2003 opening of the CTICC, Pam Golding Properties saw a noticeable increase in interest in properties in the nearby Waterfront area, and this trend has continued in the four years since then, with strong ongoing demand from both local and international buyers.
The centre, says Joyce, has helped create a buzzing and trendy vibe about the whole area, giving it a distinctly international feel. This in turn has contributed significantly to the rebirth of the whole CBD area as a trendy place to live, work and play.
"We are confident that expanding the size and scope of the CTICC will result in thousands more visitors to Cape Town, adding to the happening atmosphere of Cape Town, and this in turn will have a ripple effect into the city's property market, from national and international visitors as well as the local market, who are increasingly seeking to live in a buzzing, exciting and beautiful city."
Richard Gahagan, MD of Property24, says this is good news for Cape Town which is already the second most active property market in South Africa after Gauteng and one of the busiest in terms of foreign buyer interest.
Image:A three-bedroomed penthouse unit in the Pinmore building at the V&A Waterfront in Cape Town is on the market at R30m.
