Since the opening of the ICC Durban Inkosi Albert Luthuli Complex in August 1997 it has contributed as much R6bn to the local economy. In the 2007/2008 financial year the contribution amounted to R700m.
The ICC Durban was developed during the mid-1990s by the eThekwini Municipality at a cost of R280m to act as a catalyst for the economic development of Durban, at a time when confidence in the city was at a record low.
The role of convention centres throughout the world is to attract delegates to the host cities with the expectation that they will fill hotels and spend money on food, drink, entertainment, pre- or postconvention tours and return with family on holiday. In this way convention centres are an essential aspect of the tourism industry.
EThekwini deputy mayor Logie Naidoo says that most people are not aware of the full trickle-down effect of large conferences. Besides the spending on tours and hotel accommodation, much is spent "on grassroots upliftment in more ways than one", says Naidoo.
An ICC conference delegate survey done in October 2008 by Tourism KwaZulu Natal shows that on average delegates spend R6 400 per conference. At least 47% of those polled said they were "extremely likely" to return to the city on holiday within a five-year period.
But the advent of the international convention centres in Gauteng and Cape Town in 2000 and 2003, respectively, led to fierce competition for international conferences and events.
To maintain its edge and status as Africa's leading conference centre, the ICC opened its R460m Arena in March 2007. At the time Naidoo said: "With this truly exceptional project, we'll once again be in a class of our own. When it comes to the cream of the big international conventions, we won't be competing with Cape Town and Sandton, but with Melbourne and Cannes."
WHAT IT MEANS
 2007/2008 turnover standing at R91,4m
Half of 2008/2009 revenue budget met
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Under the leadership of CEO Miller Matola since 2006 there has been a change in relationship between the country's ICCs and a maturing of attitude towards competing for and winning bids. "Though the ICC's ability to attract international events and conferences is important for Durban's economy, we are selling Africa first, SA second then Durban and finally the ICC," he says.
Based on this the ICC and bid partners Durban Tourism, the eThekwini Municipality's tourism marketing body and Tourism KwaZulu Natal (TKZN) are using "This is Africa's Time" as the theme for all international conference bids.
TKZN's survey shows that though opportunities for business networking and knowledge are a major reason for delegate attendance, SA as a holiday destination - with its heritage and culture, wildlife and scenery - also plays an important role in delegates' decision to attend a conference.
But the ICC is not ruling out the bid presenters' sheer enthusiasm and belief in a changed SA, KwaZulu Natal and Durban that conference organisers are buying into. And this new approach seems to be paying off. In the past financial year more than 282 000 people, of which 24 000 were international visitors, attended 855 events (31 international conferences) at the ICC. And five international bids have been won in the past four months, bringing the total number of bids achieved in 16 months to 17, with conferences secured up until 2014. This includes Indaba 2010, which has been confirmed for Durban, while bidding for future Indabas starts in 2009.
Last month the ICC secured the 2014 World Psychotherapy Congress, which will bring more than 4 000 visitors to SA, and these will mostly be people who have not been to Africa before.
The conferencing industry has to overcome the international perception that Africa and, by default, SA lacks the infrastructure and electronic capability to host major events. "We are always on the back foot in international bids as we have to answer questions around the basics of conferencing that are taken for granted in developed countries," says ICC Durban marketing & sales director Sal Govender.
Another real factor influencing international conference organisers' choice of destination is its ranking by the International Conference & Congresses Association (ICCA). This association bases its rankings on the number of international conferences or conventions of 50 delegates or more held on a rotating basis in a city over a year.
In terms of ICCA's ranking, Cape Town has a global position of 37 versus Durban's 120. However, this difference may really be only a matter of a few international events and the result of poor reporting to ICCA, says Govender. "Many international events that meet the ICCA requirements are held in Durban but only the ICC reports its figures. The challenge lies in co-ordinating the reporting to ICCA. Cape Town does this well and should be given credit for it," she says.
There are plans to establish a Convention Bureau that will assume the functions of conference bidding, tracking and mining the ICCA database, among other activities. In the interim, Durban Tourism has been tasked with ensuring that reporting takes place.
However, Govender says the Sandton or Cape Town ICCs should not be viewed as competitors. "If they win a bid we should be offering our assistance to ensure that the conference is an outstanding success. If we are mature enough to look at it this way, we will tap into our capacity to host mega events in SA and we will also move towards closing the skills gap that exists in the conferencing sector."
Each province and city has its own unique gems that can be successfully marketed collectively. By co-operating, there is also possible benefit to be had through pre- and postconference tours, an important tool that can be used to familiarise visitors with various provinces and the rest of Africa.
Further proof of the ICC's growing success is its financials. The 2007/2008 annual report shows a turnover of R91,4m - 21% over budget (34%: 2006/2007). With a rising surplus and the R100m turnover mark within sight, the ICC has for the first time decided to go it alone and not take up the city's subsidy of between R17m and R25m.
As squarely as the ICC management's eye is on revenue so it is on cost containment to ensure self-sufficiency. The result is that half the 2008/2009 financial year's revenue budget has been achieved within the first quarter of the year. The economic effect thereof at R502m is more than half the R707m total economic effect of 2007/2008.
The downturn in the global economy has not yet affected the ICC, which is upbeat about its international prospects. "The weakening rand makes us a far more attractive long-haul destination - flights, venues and accommodation all become cheaper from an international perspective," says Matola.
On the domestic front, the downturn has resulted in small to medium-sized businesses cutting back on conferences and events. But corporate business and government have so far shown no signs of trimming these expenses.
Despite the success of the ICC Durban, there is still further work to be done.
