R22.80 July 2011 The Sport issue www.theevent.co.za
pg4
pg14
pg 26
BIG QUESTIONS TO BE ASKED AT SETE SPORTS TOURISM THE Sports & Events Tourism Exchange (SETE) takes place from 27-29 July 2011 at Cape Town International Convention Centre (CTICC). The inaugural conference aims to facilitate the growth of South Africa’s sports and tourism industry.
S
PORT a serious business. Sport tourism and mega events contribute approximately R6 billion to the South African tourism industry. According to statistics from South African Tourism (SAT), tourist arrivals reached an all-time high of 8.1 million in 2010, with 1,061,687 more tourist arrivals to South Africa than in 2009. This is a growth of 15.1%, driven mainly by South Africa hosting the 2010 FIFA World Cup in 2010. South Africa outperformed global tourism which grew by 6.7% in 2010. It’s pretty obvious that mega sporting events equal big bucks. The Rugby World Cup is the world’s third largest sporting event that adds anything between £250 million to £1.1 billion in additional economic impact. It attracts over 350 000 visitors. If ten percent of those visitors had to return, that’s 35 000 people who will come back to the country to spend their money again. Even countries like Quatar are looking at expanding its sporting interests having successfully host-
Royal Bafokeng Stadium
ed the 2006 Asian Games and the 2009 and 2010 Mens’ Volleyball world club championships. The purpose of an event like SETE will be to look at ways in which South Africa and its role players can use sport to generate economic benefits, both tangible and intangible. South Africa built ten stadiums for the FIFA World Cup and these are far from white elephants. Over and above the potential to attract other big sporting events, FNB Stadium
and Cape Town Stadium have been used to great effect as live music venues, notably for the U2 360 tour. Moses Mabhida Stadium in Durban has become a popular bungee venue. Sport events can be used to regenerate neighbourhoods, for example Gauteng benefitted hugely from the construction of the Gautrain. The economic benefit of a sporting event also leads to job creation. Research shows that sports events attract a large fan base and job creation
is boosted when industries create products and services related to the event. The 2010 Winter Olympics had a $10.7 billion impact on the host nation’s economy and created 244 000 jobs. “It is evident from the success of the 2010 FIFA World Cup, that sports tourism has the potential to act as a catalyst for, among others, job creation, increases in tourism arrivals and spend and the enhancement of infrastructure. These elements have significant economic spinoff for a
country. One of the goals of SETE is to explore how sports, tourism and the events industry can continue the partnerships we created in 2010 to lead to further benefits for South Africa.” says Sugen Pillay, global manager: Events at SA Tourism There were also social benefits with South Africa experiencing unprecedented national unity and camaraderie and Archbishop Desmond Tutu identified sport as a catalyst for social change. From a business perspective, the possibilities are endless and can include merchandise sales made off a new player to ticket sales and broadcast deals; sponsorships and brand exposure; tourism growth and tax inflows; the upliftment of infrastructure and skills, and even intangible benefits such as brand, goodwill and national pride. In South Africa, the price of a team’s brand and the sponsorship associated with it is worth millions. The latest asking price for the country’s national soccer team Bafana Bafana’s brand stands at a reported R41 million. Sports sponsorship reinforces a brand and profiles it internationally through media exposure, which encourages sales and driving revenues for the business. CONTINUED ON PAGE 3