40 minute read
Tidbits
Meetings’ must-know minutia
Protea Hotels by Marriott makes a debut in Botswana
Advertisement
As Protea Hotels by Marriott continues to grow its footprint in Africa, the official opening of the Protea Hotel by Marriott Masa Square at the beginning of July signifies the brand’s entry into Botswana. The property is located in Gaborone, in the heart of the Southern African nation’s capital, and is a mixed-use development featuring 152 rooms and 30 extended stay apartments.
“I am confident that the brand’s extensive regional equity, the hotel’s strategic location and the global distribution of Marriott International will help position Protea Hotel by Marriott Masa Square as a preferred choice for business and leisure
travellers to Gaborone,” commented Volker Heiden, area vice president, Marriott International, in a statement by the hotelier.
Offering panoramic views of the city and 24-hour room service, the Protea Hotel by Marriott Masa Square is a short 20-minute drive from Sir Seretse Khama International Airport and is ideally situated in Masa Square’s lifestyle hub.
With strict cleaning and safety measures in place that are aligned to both Botswana’s national Covid-19 regulations and Marriott’s Global Cleanliness Council protocols, guests can rest assured that their well-being is a priority during their stay.
Retracted announcement on leisure travel disappoints industry
Following an announcement on 10 July 2020 from the Office of The Presidency allowing intra-provincial leisure travel under the advanced Level 3 lockdown restrictions, a retraction was issued 30 hours later.
In a now deleted tweet, The Presidency published an infographic detailing activities that can take place under the restrictions, which have been revised on an ongoing basis to mitigate the risk of Covid-19 infections.
“Here are the activities that are now allowed at Level 3. We picked up an error in the previous graphic which suggested that accommodation for leisure travel was permitted. This is not the case,” The Presidency tweeted.
The retraction was met with backlash on Twitter, as South Africa’s travel and tourism industry continues to experience significant losses, with the Tourism Business Council of South Africa putting this at R68 billion.
Amended regulations clarifying under the Disaster Management Act (No. 57 of 2002) were gazetted on 12 July 2020, where the regulations state that hotels, lodges, BnBs, timeshare facilities and resorts, and guest houses, can only be used for accommodation if: • tourists are confined to these facilities • it is for work purposes • guests are in quarantine or isolation. There is a specific exclusion for leisure purposes, with shortterm home-sharing, letting, leasing or rental, as well as domestic passenger air travel for leisure purposes, remaining banned.
Hilton Cape Town City Centre to close doors
After nine years in Cape Town’s CBD, Hilton Cape Town City Centre will hand the property back to its owners, Millat Properties.
According to a statement on its website, Hilton said: “Please note, as of 11 July 2020, Hilton Cape Town City Centre will cease to operate as a Hilton hotel. As a result, stays booked past this date will not accrue Honors points. Please contact the hotel directly with any questions.”
Last year, Hilton celebrated its 100th hotel in Africa. With its withdrawal of its City Centre property, it has also noted that it will continue to operate DoubleTree by Hilton Cape Town Upper Eastside. Travellers to the city can also look forward to Hilton’s first boutique-style hotel with Canopy by Hilton due to open towards the end of next year. The hotel in Longkloof Studios, Gardens, will be owned and developed by Growthpoint Properties.
AFRICA’S SMARTEST CONVENTION CENTRE
Meetings explores how the Durban ICC has evolved to provide a valuable offering that is relevant to where the MICE industry is currently.
The Durban International Convention Centre (ICC) has always aimed to position itself as ‘Africa’s leading convention centre’ and during this unprecedented global situation, the centre has been focusing on the development of its high-tech virtual event solutions. Having invested in the latest cutting-edge meetings technology, the centre is reinventing itself as the continent’s leading high-tech convention centre.
“Without moving away from our existing market positioning, we are adding this competitive edge and aiming to also be recognised as ‘Africa’s smartest convention centre’,” says Lindiwe Rakharebe, CEO, Durban ICC.
The centre is offering a range of innovative solutions such as live-streaming events, remote-presentation events, hybrid events and video-on-demand.
VIABLE EVENT SOLUTIONS For the uninitiated, a hybrid event is simply the combination of a traditional face-to-face event with an online component, which extends the reach of the conference to a wider audience using technology like live-streaming.
“The best part is that companies are taking advantage of this kind of event solution, even during the lockdown, by using the technology we have on offer and not having to wait until live events fully start up again. By taking their events online, Some are even able to reach much larger audiences than they would have with
Lindiwe Rakharebe, CEO, Durban ICC
their traditional live event,” says Scott Langley, director: Marketing, Sales and Events for the Durban ICC.
“We have already had a phenomenal response from clients to our virtual conferencing solution. We are able to assist clients to run their events from the comfort and safety of their own homes. We also have a range of online event offerings and pricing models to choose from, depending on the kind of event our clients would normally organise. This solution can provide a financial lifeline to organisations that rely on events to generate revenue,” Scott adds.
AREA OF EXPERTISE The Durban ICC has been operating in this virtual space for a while now. It ran its first collaborative hybrid event in September 2019, which was an association conference held at the Centre and was live-streamed to a national audience. Since then, it has held a number of international hybrid conferences with several simultaneous streams from various venues, which were streamed to audiences all around the world.
Commenting on her hybrid event experience with the Durban ICC, Clare Fincham, general manager of the South African Society for Labour Law (SASLAW), said: “When we hosted our association’s 23rd Annual Conference at the Durban ICC last year, it gave us the opportunity to incorporate the live-streaming element for the first time. This allowed our members who weren’t able to be there in person to experience the event in real time and not miss out on the excellent content we had worked hard on arranging.
“Another great feature was that the individual conference sessions were then available to view from the Durban ICC’s website after the event. The members who attended the sessions found them to be very useful and informative, and we
were delighted to be able to offer this benefit
to our members, and also as an extra revenue stream for SASLAW.”
DELEGATE BENEFITS Virtual events offer a range of benefits, for instance, the digital delegate can: • get all the content of the live event from the comfort and safety of their homes • watch the speakers via the video feed and view any presentations via the picture-inpicture mode • engage remotely with the event in real time via the event’s chat or social media channels • share the content with others in their
organisation directly without having to repeat it themselves second-hand to their colleagues • choose to consume the event content later to suit their schedule • view selected elements from the event programme that pertain to their areas of interest. This is just the latest addition to the ever-evolving range of tech offerings available at the Durban ICC, as the centre has always taken pride in being on the leading edge of the latest developments in this space.
The Durban ICC boasts the country’s fastest convention centre Wi-Fi network, which is also able to support the most concurrent users. It was also the first centre in the country to offer indoor Google Maps and the first to incorporate the ‘whatthreewords’ navigation system into its complex. The centre has also invested heavily in its massive video screens and interactive digital totems in the past year. No wonder it is also being recognised as Africa’s smartest convention centre.
45 Bram Fischer Road Durban | 4001 PO Box 155 | Durban | 4000
A SUN THAT NEVER SETS
Marnie Tait, national sales manager for Sun International, talks to Meetings on the group’s strategy through the Covid-19 pandemic and what guests can look forward to in the future.
From deep cleaning and hygiene protocols, to tech-driven meetings platforms, it is encouraging to see the strides that Sun International is taking in the wake of the Covid-19 pandemic. Can you elaborate on this, in addition to how Sun International’s offering as a venue has had to evolve to where it is currently? The Covid-19 pandemic has challenged our concept of ‘normal’ and has changed the way in which we do business and interact with one another.
Like businesses the world over, Sun International has had to introduce new worldclass hygiene and safety protocols in order to be able to reopen safely. In some cases, our new health and safety protocols exceed local and international benchmarks, and we are confident that we can offer our guests a safe experience at our properties.
At our urban casinos, we have installed physical shields between slot machines and between seats at gaming tables. Every second slot machine has been disabled to ensure appropriate physical distancing between guests on the casino floor. Only guests who are booked into our hotels or are members of Sun International’s loyalty programme – Most Valued Guests (MVGs) – will be allowed access into hotels and on to casino floors for the foreseeable future. Golfers will be allowed to access golf courses at our properties.
Safety measures across all our properties include temperature tests conducted at entrances. Anyone accessing our properties – including visitors, staff, concessionaires and suppliers – is required to complete a medical screening questionnaire before they can enter our premises, including our restaurants.
Within this, please share with our readers where Sun International is starting to experience activity increasing as lockdown regulations ease, as well as what you are anticipating in the short term (3-6 months) and longer term (6-36 months) as far as travel and social gatherings are concerned? We were permitted to reopen our urban casinos from 1 July. Initially, casino hotels had to remain closed but with the reopening of intra-provincial leisure tourism in August, they have been able to reopen.
Sun International restaurants, as well as those belonging to third-party concessionaires, have reopened with reconfigured layouts and the necessary physical distancing rules. They will not serve alcohol, in line with current regulations. Some may not reopen immediately, or may open only at certain times.
Many entertainment facilities at casino properties might also remain closed for now. As national and international borders are still closed, certain Sun International properties will not open for the time being. These include Sun City Resort, The Wild Coast Sun Resort, The Boardwalk Hotel, The Maslow Sandton Hotel and The Table Bay in Cape Town. These properties are hoping to reopen from 1 October. It would be difficult to overestimate the impact that the pandemic has had on business and leisure travel, but we believe that the industry will recover.
In the medium term, we believe domestic markets will pick up this year, but activity is likely be muted to begin with, as many companies will need to regain ground from business lost during the lockdown.
While it is too soon to predict whether people will want to travel or attend conferences and events when borders are reopened, we anticipate that international travel will only realistically resume in 2021. Until then, the hospitality, conferencing and eventing industry will need to devise ways in which to stimulate domestic business.
What are Sun International’s current objectives as a business and where do
DIGITAL CONFERENCING
Sun International’s virtual conferencing training or meeting platforms can accommodate small or big sessions of more than 500 delegates, with different links from each presenter or organiser. Speakers are hosted in the Sun Studio, which provides access to a high-resolution LED wall, web presenter and AV equipment such as HD cameras, studio lighting, with on-screen effects such as branding also possible. The streaming platforms, with over 100 Mbps of bandwidth, is set up according to the client’s specifications. Attendees can access live conferences, meetings and presentations from their phones, computers, tablets or laptops. Sun Studios has made vast streaming platforms available for: • Virtual conferences and summits • Live and virtual hybrid events • Live streaming • Team building • Webinars and training events. This solution is platform agnostic, and can offer streaming on platforms such as Antenna, powered by AntFarm, Zoom, WebEx, Vimeo and Facebook, among others. For companies worried about productivity, Sun International’s virtual conferences will provide comprehensive analytics by device ¬– on demand and post event. This includes participant viewing time, user registration information, as well as geographical region. All conference sessions will be recorded and provided to the organiser after the event, allowing them to be posted to websites or the channel of your choice, expanding the audience if required.
you fit in? What does your portfolio pipeline look like? I have recently been appointed to the position of national sales manager for Sun International. My portfolio includes national corporate travel, conferencing, associations, government, sports, events and entertainment market segments.
Plans for the remainder of 2020 include ensuring that we are top of mind for our all clients and that they will feel safe when visiting one of our properties. A top priority for us is to keep in touch with our clients through various virtual platforms and to continue to engage and build our business pipeline for 2021. We are continually working towards making the transition of the new norm as easy as possible for our clients and will keep adapting and implementing as we go along.
We are in constant collaboration with all our industry associations as we all lobby together for the opening of tourism the sector. Lastly, what can guests and patrons expect in the future? Conferencing and eventing require very precise planning but the pandemic represents a moving target that will require several contingency plans. Even as the curve is flattened, we need to be aware that there could be second and even third waves. The reality is that until the world has a vaccine, companies will need to develop flexible strategies that can coexist with the Covid-19 virus.
The pandemic has also sparked a demand for smaller gatherings with limited numbers and will change the way in which banqueting works. Large-scale events with buffet offerings will no longer be an option, and chefs will need to consider creative new menus and innovative ways in which to serve people.
We anticipate that conferences of the future will be a hybrid form of digital technology and people physically attending a venue. It is
possible that international guests will do their presentations digitally, while some companies might require that out-of-town delegates, especially those in high-risk categories, also attend conferences digitally. A further consideration is that many companies will choose a semi-digital form of conferencing as they try to contain travel costs.
Our virtual conferencing offering will be capable of hosting meetings, incentives, conventions, exhibitions and events.
Future business events will also be dependent on whether regulations on social gatherings can be relaxed into the future. At this point in time, guests attending conferences will most likely need to be booked into a specific seat for the entire conference.
Entertainment events are likely to have the longest road to recovery as the very notion of social distancing now makes hosting a ‘normal’ concert high-risk at this time.
ROLL CALL
With eased lockdown restrictions paving the way forward in the revival of the events industry, Meetings understand why the Re-Opening Guidelines published by the Event Safety Council (ESC) should be considered.
Following the months-long Covid-19 pandemic lockdown that resulted in nearly an entire quarter of massively decreased economic activity, the ESC’s first edition of the Re-Opening Guidelines are a welcome relief for South Africa’s events industry.
“The South African events community understands that events and gatherings have a direct effect on the transmission of Covid-19 from person to person. By developing and adopting best practice guidelines throughout the events industry as a whole, we believe it will provide a level of comfort to the government of South Africa and the South African public that reasonably practicable processes are in place to protect persons
Determining your level of risk according to the WHO
VERY LOW
LOW
Overall risk of transmission and further spread of Covid-19 in relation to the event is considered low. Recommend checking if mitigation measures can be strengthened.
MODERATE
HIGH
VERY HIGH
against the spread and exposure to Hierarchy of Controls Covid-19 at events,” state the guidelines. WHY USE IT? Released in mid-June, the ESC’s Re-Opening Guidelines take into account existing frameworks put in place by the World Health Organization (WHO), The Global Association Elimination Substitution Replace the hazard Physically remove the hazard Most effective of Exhibition Industry (UFI), and the Tourism Business Council of South Africa (TBCSA), as well as regulations applicable to both the events industry and the pandemic in South Africa. associated with the disease. Some Engineering Controls Isolate people from the hazard
“Having industry-specific guidelines on how of the measures to reopen the events industry is crucial. The will result in Administrative aim and scope of the Re-Opening Guidelines drastic changes Controls Change the way is to provide Covid-19-specific processes and to the way in which people work protocols that should be followed in planning and hosting an organised event gathering in South Africa,” says the document. The guidelines encompass a comprehensive range of safety and prevention measures events have typically run in the past but will be hugely beneficial to their success going forward. For an event to take place PPE Protect the worker with personal protective equipment Least effective against the novel coronavirus. They have been safely, the Re-Opening Guidelines made widely available to the industry and will be document provides a framework on updated as regulations change. how to bring together an effective Covid-19 be exposed and how. In particular, it needs to prevention strategy. outline a plan for high-risk individuals. WHAT TO EXPECT Key in this is a risk assessment that must aim To ensure that each aspect of risk is While Covid-19 still poses a serious health to establish the different types and levels of addressed, implementing stringent controls threat to South Africans, we have learnt that, risks of exposure to Covid-19. This needs to based on national legislation and global best with a range of rigorous protocols in place, we look at the whole of the event value chain to practice is essential. A hierarchy of controls can significantly mitigate the infection risks understand all possible scenarios of who could needs to be detailed and thorough, and in line with the requirements set out by the Department of Employment and Labour and
HOW THE RE-OPENING GUIDELINES CAME ABOUT the Department of Health. Protocols that pertain to training and awareness; cleaning and hygiene; and staff, The SAEC is comprised of: attendee, venue and waste management must • Southern African Association for be made clear. The roles and responsibilities the Conference Industry of each team member must be defined and a • Association of African communication plan put in place to ensure that Exhibition Organisers all parties receive the relevant information. Your communication must also extend to • Exhibition and Events Association stakeholder and role player engagement. of Southern Africa Operational procedures around logistics • Southern African Communications and transport, food service and the handling Industries Association of waste also feature strongly within
The Event Safety Council (ESC) • Technical Production & the guidelines. represents the industry professionals Services Association Lastly, an event’s health and safety plan actively involved in health and safety within the events industry. It has been • Event Safety Council (Section 4, SASREA) will also need to include Covid-19 preventative measures.
tasked with developing the Re-Opening • Council of Events Professionals Africa
Guidelines on behalf of the South • Event Greening Forum NOTE FROM ESC: We recognise as an industry
African Events Council to provide Covid• Society for Incentive that there is no guarantee of an illness- or 19-specific protocols when hosting Travel Excellence pandemic-free event, therefore all content in an event in South Africa. The ESC is recognised as an affiliate of the Event Safety Alliance (ESA) and aligned its own • Professional Conference Organisers Alliance Network and related to this document is provided for information purposes and guidance only as a best practice, and is not intended to supersede
Re-Opening Guidelines to those issued • South African Live applicable legislation but rather enhance it and by the ESA. Performance Association provide practical solutions to the challenges our industry faces during the Covid-19 pandemic.
GOOD AND CLEAN AND FRESH
As lockdown measures are lifted and business travel resumes, a number of venues have rolled out strict cleaning and hygiene protocols. Meetings looks at just some of what is being done.
AvaniSHIELD
In the wake of the Covid-19 pandemic, Avani Hotels & Resorts has launched AvaniSHIELD – a set of rigorous hygiene and sanitisation measures aimed at ensuring the maximum safety of all its guests and staff across its 32 properties.
Announcing the development in a media release, AvaniSHIELD complies with guidelines issued by the Centers for Disease Control and Prevention and the World Health Organization (WHO).
“Our life has been impacted, but our spirit to travel will never fade. The implementation of new health and safety standards adds an additional layer of protection by bringing peace of mind to Avani guests and team members, as well as emphasising our commitment to ensuring health and safety, without compromising on service quality,” notes Javier Pardo, VP: Operations, Avani Hotels & Resorts.
Some of the heightened sanitisation measures will include the use of safety and hygiene technology such as Cu + copper protection materials, ultraviolet C sterilisation, HEPA-grade biofilter air purifiers, and disinfecting all incoming objects. In addition to this, Avani will seal each of its rooms for 24 hours following a deep clean, during which time no one is permitted to enter. This period will be mandatory prior to allocating rooms to guests.
To oversee the implementation of these as well as other cleaning measures, an AvaniSHIELD Agent will be designated to each of Avani’s properties. The AvaniSHIELD Agent will also monitor the health of each Avani team member and conduct training sessions where necessary, and as per the latest health and safety guidelines.
“Not stopping at these measures, we are currently reviewing additional initiatives focusing on rebuilding the environment and the health of
AVANI WINDHOEK HOTEL & CASINO
the planet threatened by climate change, such as our zero-trash programme and carbon footprint reduction measures,” highlights Javier.
Avani is also working closely with Ecolab to ensure all materials used and measures taken adhere to Ecolab, WHO and, for chemical treatment, EPA standards.
avanihotels.com/en/health-safety-update
SUN INTERNATIONAL COVID-19 PROTOCOLS
The announcement by President Cyril Ramaphosa to allow accredited accommodation, casinos and restaurants to resume with careful cleaning and hygiene protocols was welcomed by Sun International.
The group is looking forward to the phased reopening of its hotels, casinos, resorts and restaurants and says that it is well prepared for this.
“We will stagger the reopening of our properties across the country. Our leisure attractions, golf courses and swimming pools will also reopen subject to necessary regulatory guidance,” says Anthony Leeming, CEO, Sun International.
All Sun International properties will observe strict head counts and social distancing rules, with Anthony noting that the group has “put in place world-class health and safety protocols, which are considerably beyond what is required.”
He states, “Prior to the lockdown, we had introduced social distancing queue management, while every alternative seat at our casino slot machines and tables was removed to create space between customers.”
In addition, the layouts of its restaurants have been reconfigured to increase space between tables and meet head count limits.
“We had also introduced stringent and comprehensive cleaning, sanitising, and front- and back-of-house food handling and
housekeeping procedures. These measures have now been further amplified across all areas of our properties countrywide.
“Once we reopen, we will conduct temperature tests for all customers at our hospitality, leisure and gaming operations, and all guests will need to complete a medical screening questionnaire on arrival at hotels, and in advance for casino visitors. For the foreseeable future, only members of our loyalty programme – our Most Valued Guests (MVGs) – will be allowed access on to the casino floor. It will be mandatory for all visitors to wear cloth masks at all times.
“After an extended lockdown, we have put every measure in place to welcome our first guests back to our properties, and we will do everything required and more to keep them safe while they enjoy themselves.”
corporate.suninternational.com/media/covid19-protocols
MARRIOTT INTERNATIONAL
From lockdown measures to social distancing, by now we have all had first-hand experience in measures intended to contain and limit the spread of diseases such as Covid-19. One of the most important aspects of preventing contamination and infection is cleanliness.
“Marriott has a long tradition of emphasising cleanliness in our care of guest rooms and in the public spaces of our hotels,” says Ray Bennett, chief officer: Global Operations, Marriott International.
Ray is heading up the recently launched Marriott Global Cleanliness Council that has been tasked with developing the next level of global hospitality cleanliness standards designed to eliminate risk and enhance safety for all Marriott consumers and associates.
“Through the council and scientific advice of experts, we are taking a thoughtful approach to set an even higher bar of cleanliness and develop new guest interaction protocols. The Marriott Global Cleanliness Council is focused on more than just disinfection across the hotel; we are providing a holistic approach designed to take care of our guests and associates,” he says.
The council will be led by the expertise and input of both in-house and external experts, as well as a number of advisory members. These include Dr Ruth L Petran, senior corporate scientist: Food Safety & Public Health for Ecolab, a global leader in water, hygiene and infection prevention solutions and services; Dr Michael A Sauri, infectious disease specialist at Adventist Healthcare; Dr Richard Ghiselli, head: School of Hospitality & Tourism Management at Purdue University; and Dr Randy Worobo, professor of
MARRIOTT INTERNATIONAL
food microbiology in the Department of Food Science at Cornell University.
“We want our guests to know that we are doing everything we can to welcome them back to a safe and clean hotel environment when they start travelling again.”
The council is currently overseeing the rollout of a number of enhanced technologies to ensure that it adheres to the most exceptional standards in the cleanliness of its hotels and rooms across its more than 7 300 properties. It will focus on the following: Surface areas: To be treated with hospitalgrade disinfectants with increased frequency throughout the hotel. Disinfecting wipes for the personal use of each guest will also be made available. Guest contact: To mitigate the risk of transmission, Marriott is implementing measures including the use of signage to remind guests to maintain social distancing protocols. More hand sanitising stations will be installed at the entrances to its hotels, near the front desk, elevators, fitness and meeting spaces. Guests at 3 200 Marriott hotels can also use their phones to check in, access their rooms and make special requests such as room service, without coming into contact with anyone else. Food safety: Marriott’s enhanced food safety programme includes sanitation guidelines and training videos on hygiene and disinfecting practices for all operational associates. The company is also designing new approaches to buffets and modifying practices for in-room dining. To ensure compliance with these standards, Marriott’s food and beverage handlers are required to conduct selfinspection using the company’s food safety standards as guidelines, validated through independent audits.
“Safety for our guests and associates has always been a top priority for Marriott and today, that discussion of safety is in the context of Covid-19. We want our guests to know that we are doing everything we can to welcome them back to a safe and clean hotel environment when they start travelling again,” concludes Ray.
clean.marriott.com
THE PALACE OF THE LOST CITY, SUN INTERNATIONAL
UNDERSTANDING THE
After suffering a massive blow from the fallout of Covid-19, Africa’s MICE industry is setting its sights on brighter horizons. Meetings unpacks the 2020 African Perspectives on the Meetings, Incentives, Conferences and Exhibitions Industry Report to learn more.
Prior to the Covid-19 outbreak, the list of the world’s fastest growing economies featured strong participation by a number of African countries. While the extent to which the pandemic will affect 2020’s GDP growth remains to be seen, there are still vast opportunities that are ripe for the picking. The MICE industry is no exception to this, yet these prospects have been largely untapped for a number of reasons.
In the qualitative 2020 African Perspectives on the Meetings, Incentives, Conferences and Exhibitions Industry Report , produced by Niche Partners and released in June, we understand the challenges that are perceived to be hindering the development and growth of this market and how to find a solution to these obstacles.
“We’re committed to research and development projects that drive meaningful growth in the MICE industry in Africa, and the growing global interest in the continent as an investment and tourism destination is evident; I am of the view that it is definitely time that the African MICE industry defined its own narrative by really developing and growing its own regional MICE industry,” says Londi Khumalo, founder and managing director of Niche Partners.
WHERE ARE THE PROSPECTS? The International Conference and Convention Association (ICCA) reports that Africa hosts 3% of the globe’s internationally rotating meetings, compared to 52% held in Europe, 23% in the Asia Pacific region, and 11% in America ( ICCA Statistics Report , 2018).
“This has regrettably been a long-term trend that we have observed in the industry for at least five years. For us, this represents the global opportunity that exists in this association’s market for growth in Africa, but an opportunity perhaps also to develop our local markets,” Londi points out.
In 2018, the African Continental Free Trade Agreement (AfCFTA) was signed between 54 of the 55 African Union member states. With 30 nations having ratified the agreement thus far, the AfCFTA is the largest in the world in terms
of participating countries. It offers a market potential for goods and services of 1.2 billion people, with an aggregate GDP of about US$2.5 trillion (R43 trillion). It also presents a unique opportunity for how we overcome existing challenges to harness the potential of Africa’s MICE industry.
FROM AFRICA’S PERSPECTIVE The African Perspectives Report seeks to understand leading concerns and opportunities as provided by participants who form part of the MICE industry’s value chain.
“In what has come to be known as the greatest challenge of our time, I have been doing some research on war times and times of disease in order to take away lessons that we can now apply to not just survive but grow,” Londi explains.
After receiving feedback from its survey that went to C-suite executives, managers, consultants, researchers and other events professionals across a number of African countries, the leading MICE industry concern was business sustainability as a result of current and future revenue generation, with 78% of participants citing this as their number one concern.
The next leading concern is the industry’s recovery, future growth and customer retention; 53% of respondents say they are concerned about safeguarding future bookings, with Covid-19 impacting on the willingness of clients to make bookings due to health and safety concerns.
“The travel and meetings restrictions of Covid-19 paint a bleak picture for the MICE
industry, as with the broader tourism industry, with 56% of the professionals echoing this sentiment and expecting an overall decline over the next one to two years,” says Londi.
On the flip side of this, 36% of respondents expect growth in the industry, citing ‘resilience’ as a contributing factor.
“The expectation is that the demand for meetings will increase after the lockdown restrictions have been lifted due to constrained demand. These respondents have a general optimism in the innovative capacity of the industry to rebuild post Covid-19,” notes the African Perspectives Report .
HOW WILL WE GET THERE? In order to overcome some of its challenges, the report finds there are several interventions that can be deployed.
Among these, 30% of participants believe that government financial and non-financial interventions are a top priority. In addition, with technology playing a key role in ensuring business continuity during lockdown, technological acceleration is another leading intervention that participants felt was necessary.
“The acceleration of innovative and hybrid meetings is the next key intervention, as participants’ views towards this have changed indefinitely. The adoption of technologies in the industry supply chain is now more necessary than prior years,” says the report.
Unsurprisingly, health and safety guidelines also feature high up on the list of interventions, with 15% of participants viewing these as critical.
Interestingly, while 8% of surveyed participants feel a phased reopening and flexible pricing and innovative offerings received attention as a leading intervention, the report notes that “comments regarding the phased reopening sees some conflicting views, with larger venues believing they should open first because of the availability of space. In contrast, smaller venues cite the reduction in meeting size restrictions as a reason to open first.”
PLAN OF ACTION When asked which areas would be added to their post-pandemic action plans, many respondents said they would be focusing on increasing marketing and sales activity, as well as the training and development of staff to equip them with new skills.
Investment into technology as well as research and development both feature as top actionable areas, while cost-cutting measures and engagement with stakeholders on a way forward also play a key role, according to participants.
Perhaps, the greater opportunity, as indicated by the report, can be found in collaboration – with 82% of respondents expressing the value in the pooling of resources, citing this as necessary to leverage marketing and sales resources.
“There is an underlying view that Africa has not fully explored its regional, intracontinental collaborations in the events arena and should engage in more specific partnerships in this regard,” emphasises the report.
Londi Khumalo is the founder and managing director at Niche Partners. The full African Perspectives Report is available on request. Should you wish to receive this, please email londi@nichepartners.org.
THE PRESENT
and future
Londi Khumalo, managing director at research house Niche Partners, discusses the sustainability of Africa’s MICE industry.
With recent findings from our 2020 African Perspectives Report on the Meetings, Incentives, Conferences and Exhibitions Industry revealing that the leading concerns for businesses along this supply chain were financial sustainability and future recovery, it highlights two
DID YOU KNOW?
important areas of focus: business continuity and sustainability.
Business continuity is defined by ISO 22301 (2019) as the “capability of an organisation to continue the delivery of products and services within acceptable timeframes at predefined capacity during a disruption” and is centred on the survival of the business under threatening conditions. This
The typical conference attendee produces 1.89 kg of waste per day, 1.16 kg of which will go directly to a landfill. (oxfordabstracts.com)
underscores the need for operational resilience, in particular how business survives in the short term given the uncertainties brought about by crisis.
Business sustainability, however, extends beyond the short term, and considers future contributions to profits, people and the planet. This future view is currently a struggle for many MICE businesses managing the urgency of their recent continuity challenges. Understandably, if a business cannot survive the year, it cannot be sustainable in the future. Yet, failure to consider post-Covid-19 business sustainability may be a significant opportunity missed.
LESSONS FROM OUR PAST A lesson taken from the city of London after the Second World War is that, while the city was at war, citizens in their private and professional capacities kept planning. London officials are said to have had over 200 plans submitted during a time of fear and uncertainty. Planning is part of a wartime or, in our case, a pandemic response.
The divide and conquer approach is key to focusing resources on both the present and future, conducting all the necessary due diligence. By designating leadership teams into both business continuity and business sustainability, and finding a way to focus on these tasks separately, organisations should have an eye on both the present without losing sight of the future.
FOCUS ON THE PRESENT: BUSINESS CONTINUITY
1Safety first Put in place workplace risk mitigation plans in order to reduce infection risk. Event safety guidelines and protocols are globally the focal point of discussion. This is rightfully the starting point of the MICE industry’s continuity planning due to the nature of the health pandemic. As professionals involved in the supply chain of the MICE industry, the lives of staff and customers are a priority in government considerations on easing regulations for the industry. Industry health standards are key at an industry level to assure clients and stakeholders of the readiness to open and ensure minimal transmission and exposure to the life-threatening virus.
2Client prioritisation Prioritise high-value clients and bookings to determine the vulnerability of these clients in hosting future events. A key aspect of business continuity is ensuring that business is still able to generate revenue or at least enough cash flow to cover operational costs. Other than applying for assistance funding, an overarching trend has been the renegotiation with clients whose events have had to be cancelled. Many businesses have used the time to contact their clients to renegotiate payment terms and event dates that are mutually beneficial to avoid losses – an example of this is the International Exhibition Logistics Association, collaborating with Century City Conference Centre in Cape Town, to postpone two of their June events to July 2021.
3Cash flow management Evaluate whether there would be any cost-saving benefits in earlier payment or by offering discounted rates, and if these shorter payment terms could assist. Additional to the retention of deposits is whether can derive cash flows from existing smaller bookings and whether most customers with existing contracts have payment terms relevant to event dates.
4Managing expenses Negotiate on flexibility. Fixed running costs can be monumental, considering the size of some companies. This has seen quite a few businesses in the sector recently cede their assets with the resultant loss in thousands of jobs. To safeguard jobs, leading corporates in the retail and banking industries have reduced executive salaries of the entire organisation in order to retain the greatest number of jobs. While not popular with some, on a continent with excessive unemployment, these measures are commendable and require consideration.
As with customer payment terms, negotiating more flexible payment terms with creditors may enable a business to improve its cash flow position.
5Tapping into existing assets Explore how corporate clients’ urgent business could allow them to make their assets available for alternative uses. The Covid-19 pandemic has increased the need to maintain social distancing across all sectors of the economy. This has meant certain businesses are struggling to operate with smaller teams. Identifying possible spaces for industries requiring it for their teams or equipment may enable venues to generate some income from leasing their spaces. IMAGINE THE FUTURE: BUSINESS SUSTAINABILITY
1Future client expectations Focus on local and regional growth opportunities. The way in which travel restrictions are easing indicates that recovery will take place locally, regionally and, thereafter, globally. As the MICE industry is based on three core needs – travel for trade, education and networking – engagement with local and regional potential customer bases is necessary to determine customer needs. Identifying sectors post Covid-19 that are expected to grow based on these core needs, both locally and in Africa, can reveal opportunities for future customer bases.
2Collaborative industries Identify how the MICE industry supports collaboration across other industries. Covid-19 has meant that many businesses are thinking about innovations, cost savings and ways to maximise investments. More collaboration conversations are taking place across supply chains and sectors, so monitoring these trends presents a unique growth opportunity for the MICE industry. Understanding these relationships is pivotal in assisting clients with insights to help them grow. An example of successful interconnectedness can be found in innovation and healthcare with academic medical conferencing including technology practitioners.
3Diversified revenue streams Provide win-win solutions. The topic of revenue diversification could not be more relevant in 2020. With declining revenues and an unpredictable future, it is perhaps the best time to consider the value that your organisation has to offer and diversify potential revenue streams. With a large portion of corporate and government markets unable to reach their markets, identify the solutions that the MICE industry could offer.
4Future costs Examine the cost of waste at the company level to reduce the financial burden as a resource-intensive industry. Covid-19 has presented health issues that change the future of how humans interact but, with MICE being part of the global sustainability conversation for years, the industry must think about its influence on lives and livelihoods. These sustainability issues offer opportunities to reduce our own negative impact on our environment/society and our own operational costs.
It is easy to get caught up in the chaos of the Covid-19 pandemic but choosing a proactive approach over a reactive response will bode better for long-term business prospects, say Gabi Babinszky and Jack Smit, directors at audiovisual specialists Brandex.
There are a notable number of suppliers and service providers choosing to shift their focus to ensure they are relevant during this time but is this truly in the best interests of preserving business objectives? We at Brandex feel that this is an all-important question that players within the events industry should be asking themselves.
What we are seeing from some players within the industry at this moment in time is a reactive scramble to survive. We cannot dispute how the Covid-19 pandemic and lengthy lockdowns have adversely impacted business activity; many are in jeopardy and, understandably, many more feel anxious being in their current position, but a poor business decision could sink you far quicker than biting the bullet.
Brandex is no stranger to change; just over a year ago, we embarked on an undertaking that saw us streamline our business model to allow us to provide more value to the industry through our offering without it impacting on our potential revenue streams. Key in our objectives here was meeting high service delivery standards by focusing on what we are good at. This resulted in scaling back and shutting down some parts of our business completely, which showed us that our initial efforts to grow the company to a point of it being the ultimate events agency, was in fact stifling opportunities.
STATUS UPDATE Prior to the beating we’ve all taken (shoutout to Covid-19), we knew we had made the best choice for all parties concerned on how to move Brandex forward. Through this, we have learnt that decision-making is a crucial
and ongoing process within any company, which needs to be flexible to change in order provide a product or a service that meets some sort of market demand.
Without any demand for large-scale live events, some suppliers have turned their sights towards providing cleaning services, personal protective equipment and sanitisers. For those who got in early enough, this will perhaps tide them over during this time, but for others jumping on the bandwagon, it has only burnt precious financial resources because this market is now completely saturated.
There is, unfortunately, no secret sauce in this mix and common sense is what will be your greatest ally – innovate in a way that doesn’t deviate too much from your core business offering so you can use existing skills and supplies, and align yourself with those who share common objectives so you can pool your resources and achieve your goals together.
Sometimes, high-risk, high-reward odds can result in a make or break outcome; so, before you make the plunge, do your homework and take a calculated decision, so that you understand exactly what you’re up against.
