Industry outlook for 2023 and beyond

The Incentive Planner gains insights from some of SANCB’s association partners into what the industry’s recovery looks like, and where we can expect to go from here.

Part of the success of the South Africa National Convention Bureau (SANCB) lies in the strong relationships it has built with both local and international industry associations, allowing it to bridge what can often be a divide between public and private enterprises. These partnerships enable a symbiotic relationship, working towards a shared goal and vision that, at present, is very much focused on our sector’s recovery.

The Southern African Association for the Conference Industry (SAACI) is one such key partner. CEO Glenton de Kock says, “Globally, on the African continent, as well here at home in South Africa, we are well on the road to recovery.”

A CAUTIOUS START, HELPED BY MEETINGS AFRICA

He says that 2022 started cautiously, as travel restrictions lifted gradually and there was some initial hesitancy about organising large events. However, as the sector’s confidence has grown, so has the pace of events being organised. “These events have not only built confidence with exhibitors and attendees/delegates, but they have also demonstrated what the industry advocated for throughout the pandemic – that the industry is well positioned to deliver safe and responsible business events,” he adds.

He cites Meetings Africa 2022, SA Tourism’s trade show for the business tourism industry, as being a critical event in rebuilding the business tourism and events industry.

The show was held at the Sandton Convention Centre, Johannesburg, from 1 to 2 March 2022, and brought 161 global buyers and 216 exhibitors from 13 African countries together. Before the event even began, over 2 000 meetings were already set up in the online diary system, demonstrating the eagerness everyone feels to get back to business.

Amanda Kotze-Nhlapo, chief conventions bureau officer of the SANCB, describes this flagship event as “the engine room of our countries”, as it powers other industries by promoting and enhancing trade and development opportunities. As such, the event was warmly received as an opportunity to reignite economies.

EXHIBITIONS ARE TRENDING UPWARDS

Devi Paulsen-Abbott, chairperson of the Association of African Exhibition Organisers (AAXO), agrees that the recovery process has started slowly but is gaining traction, and says, “The exhibitions industry had to bear the brunt of the pandemic with debilitating restrictions preventing events of scale to be run viably. The path to recovery has been a slow burn and organisers and suppliers to the industry

Glenton de Kock, CEO, SAACI Devi Paulsen-Abbott, chairperson, AAXO Tshifhiwa Tshivhengwa, CEO, TBCSA David Frost, CEO, SATSA

have had to adapt on the fly – but have done so seamlessly.

“Most organisers have managed to bounce back with some sizeable exhibitions in the latter half of 2022, which has been positive to see and experience. Many organisers are reporting some contraction in their footfall, which could be a result of limited budgets for travel, but most have reported that the quality of engagement has been up to the mark.”

OUR NARRATIVE MUST BE CONSIDERED

“In South Africa, the industry is on track to recover to pre-pandemic levels by 2024/25, so my outlook is positive. However, our narrative needs to be far more considered,” cautions Devi. She highlights that negative international media coverage of load-shedding challenges, water shortages in some provinces, and safety and security concerns can hurt our ability to attract international events. “We as an industry need to ensure that we strongly render that our ability to operate is tenable and that security concerns, while rational, are generally not high risk in main tourist destinations,” she stresses.

To this end, Glenton applauds the successful hosting of SA Tourism’s leisure tourism trade show, Africa’s Travel Indaba 2022. Held at the Durban ICC in May this year, he says the event helped to “build in-person attendee confidence and demonstrate that we can meet safely in person, particularly after the devastating floods in KwaZulu-Natal.”

OPTIMISM FOR THE FUTURE

Despite the challenges exhibitions face, Devi is optimistic about the future, and says, “Despite some of these trials, South Africa has a strong communication and transport network, so is ideally placed to host large-scale events with world-class venues, hotels and great value for anyone travelling here with foreign currency.”

Tshifhiwa Tshivhengwa, CEO of the Tourism Business Council of South Africa (TBCSA), is also optimistic about the return of business events, noting the enthusiasm for them to be held in person. He admits it is a slow recovery, but believes that, from 2023 and going forward, it will gain momentum.

“We have already started seeing many companies starting to think of how they could return to what they used to do pre-Covid, so we will see a higher level of recovery from the domestic front. From the international front, it’s still going to take time because international associations still need to decide what they’re going to do moving forward. So, we may still see a bit of a lag from the international business events point of view,” he adds.

When asked about his outlook for 2023 and beyond, Glenton says, “We will see slight improvement in 2023, with all things being equal. Confidence of having delivered in 2022 will provide some clarity on how we may add minimal incremental changes for growth in 2023. However, all indications are that, at the current pace at which recovery is unfolding, we will see improvement in 2024/25.

“Geopolitics, which are constraining economic growth, are impacting the cost of living both in South Africa and the world, and this will hamper recovery. Added to the global skills shortage, we will need to deliver smartly while ensuring we don’t compromise on the quality of experience.

“So, we need to know that recovery will be long and slow, with a call to retain the focused discipline we had in moving throughout the pandemic, knowing that we will recover and build back better.”

INCENTIVE TRAVEL IS BACK

Meanwhile, international visitor numbers are showing a healthy return and the incentive tourism sector is incredibly busy right now. David Frost, CEO of the Southern Africa Tourism Services Association (SATSA), attributes this to “a combination of pentup demand, and existing bookings that had been shifted out during Covid for travel once restrictions had been lifted.” He adds that some of this busyness is due to reduced teams that cannot scale because of staff shortages – “particularly at a senior level and support roles such as marketing”. With additional airlift being anticipated for the peak summer season, the sector is likely to be under greater strain in the coming months.

Furthermore, David cautions, “Much of the business that is being fulfilled as mentioned is that which was in the books and had to be postponed, so we mustn’t forget that we need to build our pipeline for business beyond that, particularly out of our traditional core markets, which themselves are facing certain challenges – i.e. airport staffing shortages, cancelled flights, inflationary pressures, etc. Several of our emerging markets, like China, still find themselves closed to travel or limiting travel, and we anticipate that this will remain until at least end of 2023.”

His advice? “We must control what we can and focus ourselves on positioning South Africa as an attractive post-Covid destination.”

Fortunately, this is not a hard sell, as South Africa has many aspects that appeal to tourists – including the incentive market. “There are few countries that deliver the value-for-money, destination experience and product diversity that South Africa does. We have a proven track record in wowing incentive travellers and are just the tonic needed in this post-Covid world – a combination of openness, freedom, diversity, affordability and fun,” he concludes.

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To find out more about the SANCB and its role in growing the business events industry, visit www.southafrica.net/gl/en/business