Events Strategy 2015 - 2017

CITY OF 12 May 2015 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 EVENTS OVERVIEW The City and the Economy

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

GROWTH IN GDP IN MID-SIZE EMERGING MARKET CITIES, 2010 – 2015 (US$ BILLIONS) 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 was ZAR428.84bn in 2011 (Wesgro factsheet)

CAPE TOWN SECTORS BY VALUE, 2009 (%)

Agri, forestry Mining and and fishing quarrying community/ social 1% General govt 0% and personal 10% Electricity, gas services and water 5% Manufacturing 2% 16% Construction 4%

Trade, catering Finance, property and accom and business 15% services 36%

Transport, storage and comms 11% Event Permit Growth Trend

1600

1400

As at end March 1200

1000

Permot Applications 800 Permitted Events Column2 600

400

200

0 2012/2013 2013/2014 2014/2015 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 Jobs created at CTIJF: 2721 • Conference Organisers • Wedding Planners

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 4 9293 25 India 7 8767 Top 10 Tourism in 2012

Change Change Sport UNTWO Int Tourist Int Tourist 2011 10 2010 to Events Rank Country Region Arrivals 2012 Arrivals 2011 2012 2011 Rank 1 France Europe 83.0 million 81.6 million 1.80% 5.00% 10 North 2 United States 67.0 million 62.7 million 6.80% 4.90% 7 America 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 United 8 Europe 29.3 million 29.3 million -0.10% 3.60% 4 Kingdom 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

Event Permits Issued 2012/2013

275

195

145 146 145 135 100 83 82 79 60 43

July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun 2.1 Destination strengths

• Unique and beautiful natural locations • - global TV coverage increases when CT Stadium & Table Mountain used as backdrop • Lots to see & do General • 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

• Relatively strong destination brand in the domestic and international leisure Destination tourism markets • Relatively strong destination brand in the domestic and international business brand tourism markets • Major sporting activities have created a high status image via media

• Proven organisational capability to host mega events • More cooperation by the politicians and better service delivery Events • Diverse supply of accommodation within metropole • Diverse supply of events venues and facilities cape ability • Good transport infrastructure • CT is only SA city with a functional and regular train network • Can turn around events quickly 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

EVENTS STRATEGY 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 INCUBATOR (SIGNATURE EVENTS) (BREWING) Annual events associated with Smaller events that show the area’s identity, and provide potential to develop into jewels the area with competitive advantage Events portfolio BIDDING (MAJOR or MEGA Events) LEVERAGE Once-off large, compelling, Occur outside the destination, major market events that have but provide platform to to be acquired through a promote tourism, trade and bidding process investment

Event Portfolio 2013/2014 (Investment)

Jewels (S1) Incubator (S2) . Cape Argus etc. Cycle Tour Cape Town Carnival, Cape Town Fashion Week, . ABSA Cape Epic , Cape Town Tens, Clipper . Cape Town International Jazz Festival Race, Le’Ormains Queens Plate, Lion of Africa . Design Indaba Open, South African Menswear week; 2013 . Mining Indaba Maboneng Arts Experience, Cape . Old Mutual Town World Music Festival, Ironman 70.3; Cape Town Fridge Festival, Rockville 2068, Music . Volvo Ocean Race Exchange, Cape Town Electronic Music Festival, . ITU World Triathlon Series Burn Digital, SA Ballet Competition, ABSA . MCQP Enterprise development Expo, Women . Cape to Rio Innovation Trade Fair; Entrepreneur Expo, PSL . Big Concerts Soccer; SPAR Ladies Race, Taste of Cape Town, Music Exchange, Sunshine Ladies Golf Tour; Bidding/International (Once off) Leverage (S4) (S3) . Tourism Indaba . World Peace Summit . Africa Travel Week . ISO/TCC233 (Disaster Management) . Jive Funny Festival . CHAN 2014 . War Resisters Conference . Nelson Mandela Lecture 2014

Event Portfolio 2013/2014 (Community)

Community Events Community Events

. Minstrels - Cape Town Minstrels Carnival Assoc. . St Luke’s Hospice . Minstrels- Cape Districts Minstrels Association . Sunshine Ladies Golf Tour . Minstrels - Karnival . Toughest Fire Fighter . Sunshine D/Polar Ice cream Big walk . Houtbay Sea food Festival . Mamre Flower Festival . Days of the Dinosaur . Toy Run . Permuda Human Rights . Festival . Kwaito House Evolution . Community Chest Twilight run . Neon Run . WECCMA Indigenous Choral Music Festival and . Bantu Church of Christ Centenary Competition . SA Climb for Mandela Childrens Hospital . Gugulethu Beer and Whiskey Festival . Voice of the Cape Festival . Concerts . Moonlightmass . DSTV Festival . TICE . Suidoosterfees . International Slave Day . International Mens Day . Mandela Long Walk to Freedom . (32) . Guineas . It is time spiritual outreach . Houtbay Community Festival 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. DEVELOPING THE EVENT CALENDAR Processes to Develop the Calendar

3 YEAR CONTRACTS

ANNUAL EVENTS

AD-HOC EVENTS THE 156 WEEK PLAN 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 DISADVANTAGES

• Certainty to the Event Organisers of the • Staff turnaround in the Events Industry is city’s involvement relatively high. • Stablises the Events calendar and allows • Full Council must approve the 3 year interested parties to plan. agreement, therefore lengthy approval • Reduced yearly administration with and Legal processes in year 1. respect to authorities and authorisation. • Cannot accommodate changes without • Allows for genuine partnerships to full Council approval. develop between the City and the Event • Future budgets are already pre-allocated organisers • Allows for the staging of improved event offerings. • Makes economic sense as the City does not have to negotiate annual increases. 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 EVENTS WITH MULTI-YEAR APPROVALS – Ability to deliver on undertakings made 1. Cape Town International Jazz to the City for the period Festival – Complies with provisions of Section 67 2. ITU World Triathlon Series of the MFMA 3. Africa Travel Week - Events Calendar Anchor events 4. Lion of Africa Cape Town Open 5. - Target 156 day contracts - 20 6. Old Mutual Two Oceans Marathon 7. ABSA Cape Epic 8. Cape Town Marathon 9. Cape Town Fringe Festival 10. Suidoosterfees

ANNUAL RENEWALS 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

2014/15 Ammended Events Budget Annexure C 2014/15 Events to be Hosted by the City Changes to Entity Memorandum of Understanding will be Accommodate concluded with Financial Year World Peace Event Lead Department 2014/15 Summit 457300

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 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) R 36 456 191.00

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 AD-HOC EVENT APPROVALS 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 is received • Application is acknowledged Application

• Application is checked, further information requested Application • Application information is included into spreadsheet Check and and Agenda Spreadsheet

• Special Events Committee meeting is held • Application is recommended/non recommended for Special Events Meeting support ACHIEVING OBJECTIVES 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 • R553.3 million to the economy International Jazz • 34 000 festival goers Festival • 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 • R450 million to the economy Pay Momentum Cycle • Traditional Media Value = R30.3 million Tour • 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 • 97 countries represented • +72 000 Expo attendees • City contribution = R865 000

Event Statistics 2014

3. Old Mutual Two  R266 million to the economy  30 000 entries Oceans Marathon  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  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 • 156 professional golfers • 41:30 hours of broadcast Cape Town Open • Gross Media Value = $7 468 207 • Online Value = R 2 million • City contribution = R2 million

8. ITU World • Cumulative audience = 4.38 million over 35 networks • Countries represented = 24 Triathlon Series • 109 Elite Triathletes • 1913 Triathletes in total • 32 schools participated • City contribution – R1.5 million

Thank You