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Economic Impact

Opened in 1997 as the country’s first International Convention Centre, the Durban ICC has become an icon in the South African hospitality and tourism industry. In addition to its proud history as a world-class convention facility, the Centre has made an enormous contribution to both the provincial and national economies.

During the past financial year, the Durban ICC once again made an immense macroeconomic contribution to Durban, KwaZulu-Natal and South Africa. Despite the impressive contributions made in the previous financial year, the company achieved notable year-on-year increases in every major economic indicator for the 2014 year.

2014 vs 2013 Table

2014 vs 2013Jobs created 2014 vs 2013

For the last eight consecutive years, a detailed study has been conducted by independent researchers to gauge the economic impact made to the national and regional economies by the Durban ICC. The study reports on the impact of the Centre’s activities on key economic indicators such as its contribution to Gross Domestic Product, job creation and the generation of tax revenue.

It is clear from the figures below that the Durban ICC has consistently delivered on its mandate to generate positive economic impact for the country.

The Durban ICC’s Economic Impact as measured over the last eight years20.6bn

Durban ICC Contribution to South Africa’s GDP and KZN’s GGP

During the past financial year, the Centre contributed R3.12-billion to South Africa’s GDP. R2.86-billion of this contribution directly benefited the KwaZulu-Natal Gross Geographic Product during the year. The contribution to provincial GGP has increased steadily over time, from R1.79-billion in 2007 to R2.86-billion in 2014, bringing the cumulative contribution to R19.2-billion since 2007.

GDP GGP

Other Macroeconomic Benefits

During the past year, the Durban ICC also made other significant contribution in the following economic areas:

•    Indirect Household Income – The Durban ICC contributed R1.58-billion to the country’s indirect household income in the past twelve months. The cumulative contribution which the Centre has made over the past eight years amounts to R10.4-billion.

•    Tax Revenue Generation – A total of R283-million in tax revenue was generated by the Durban ICC in 2014. Since 2007, activities associated with the Durban ICC have cumulatively contributed R1.87-billion to taxes.

•    Net Foreign Exchange Earnings – The Durban ICC makes an important contribution to foreign exchange earnings through international delegates and tourists who come to the country. However, the Durban ICC was both a generator and a user of Foreign Exchange over the past financial year. Therefore net foreign exchange earnings (generation less usage) totalled R586-million in 2014. This represents a R20-million year-on-year increase, and cumulatively brings the total of net foreign exchange earnings to R3.6-billion in since 2007.

Delegate Visitor and Tourist Days

The Centre generated a total of 1 412 684 delegate and visitor days in Durban during 2014, of which approximately 36% were generated by international visitors.

By hosting major international events, the Durban ICC attracts thousands of foreign delegates to Durban each year. Apart from the positive economic impact which these visitors have on the city whilst they are here, these visitors return to their home countries and spread the word about Durban as a vibrant city in touch with its African authenticity and the genuine friendliness of its people. Many of them return as tourists in future years with their families and friends, a phenomenon referred to as induced tourism. This is a function of the success of the Centre in attracting international delegates in prior years and accounted for approximately 26% of the abovementioned economic contributions.

Delegate Days

Job Creation

From an employment perspective, a total of 26 282 people were employed directly in KwaZulu-Natal province and a further 34 863 people were employed indirectly throughout the country as a result of the Durban ICC’s activities over the past eight years.  This means that the Durban ICC is responsible for creating and sustaining over 60,000 jobs since 2007.

60000Population

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