The Cape Town International Convention Centre (CTICC) has achieved record-breaking revenues and impressive operating profits again this year. In addition, it was responsible for creating more than 8 500 job for individuals in the same period.
Announcing the CTICC’s Annual Financial Results, Chief Executive Officer Julie-May Ellingson said that the 2017/18 results also equated to the CTICC making a substantial contribution of R4.5b to the South African GDP, and R3.1b to the GGP of the Western Cape.
The CTICC grew its revenue by more than 14 percent in 2017/18, reaffirming its position as one of the world’s leading international convention centres. The Association of International Convention Centres’ set its average growth rate for centres around the world at nine percent for 2017 and seven percent for 2018 at seven percent.
“In 2017/18 our revenue increased by 14.2% from R215.6m to R246.3m, while Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) also rose well above our target of R24.3m to R57.2m. These results are particularly pleasing in the current economic climate,” said Ellingson.
With a total of 525 events hosted during the period under review, the CTICC made a net contribution of R681m to foreign exchange earnings. At the same time an overall customer satisfaction of 85 percent was received. In the past 15 years it has hosted 589 international events. With the addition of CTICC 2, the combined complex is drawing even more interest and 64 future international events have already been secured.
The CTICC measures service delivery through N’Lighten, an independent company that conducts surveys with event organisers. Ellingson notes, “Delivering exceptional customer service is essential to our success.”
In its years of operation, the CTICC has contributed significantly to job creation and has created/sustained over 115000 jobs since the early days. The 2017/18 period saw a nine percent increase over the previous year. “In an economy that is shedding jobs, this is something we are particularly proud of,” said Ellingson.
It is estimated that every job held by a woman feeds eight peoples. Ellingson said, “Our expenditure with women-owned enterprises increased to 40 percent in the past financial year, from 29 percent the previous period.” The CTICC’s B-BBEE spend for the 2017/18 financial year was R288m, or 87 percent of its net spend.
The CTICC’s purpose is ‘to connect people, create jobs by attracting events in key economic sectors and exceed its clients’ expectations’.
It’s commitment to training remains strong and a substantial R3.1m was spent on training in the fiscal year. Training focus includes short- and long-term training that is essential for upgrading internal and external staff skills. Ellingson said training embraced four key aspects of skills development – statutory, vocational, developmental and values-based leadership. The CTICC offers a student and graduate programme.
Food safety and management are a priority at the CTICC and during the period under review, the centre added to its existing certifications and accreditations with amongst others a range of daily and monthly hygiene food preparation and maintenance monitoring protocols that are consistently and meticulously adhered to in the kitchens. During her address, Ellingson advised that the CTICC recently achieved ISO 22000 – Food Safety Management System certification.
The CTICC has been working to improve its sustainability and several initiatives have been put in place to decrease water usage, reduce waste and reduce energy consumption. A reduction of 30.4 percent was measured in water consumption.
· Stopped water supply to all ablution facilities and visitors provided with hand sanitiser
· Installed water storage tanks, holding up to 265 000 litres of water, for irrigation and cleaning
· Captured condensation from its air-conditioning units to the approximate amount of 20 000 litres per week (used for cleaning purposes)
· Reduced its dishwashing loads by not using table clothes and offering clients the option of using disposal napkins and biodegradable cups
The centre is in the final testing phase of its reverse osmosis desalination plant which was completed at the end of November 2018 and will produce clean, fully potable water. It continues to raise awareness around water savings.
The CTICC actively works with five local CTICC staff nominated community partners, providing vital support predominantly in Khayelitsha, Lavender Hill and Mitchells Plain. The work with Abalimi Bezekhaya, Foundation for Alcohol-Related Research (FARR), Ikhaya Le Themba, Journey for Enrichment and Mothers Unite includes educational and income-generation initiatives, feeding schemes and urban gardening projects.