Events Strategy 2015 - 2017

CITY OF CAPE TOWN

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

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

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 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

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

(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.

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

• 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 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

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

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

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 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

Thank You