The proposed expansion of the CTICC and other urban regeneration projects planned for the Central Business District is set to boost Cape Town’s reputation as a globally competitive business destination and contribute to economic growth through driving job creation in the City and the province as a whole.
CTICC Chief Executive Officer, Rashid Toefy says that there is a strong business case for the expansion. This development will unlock construction and development opportunities in the precinct of over R 4. 5 billion, which will have a multiplier effect on the economy. The expansion is set to create a “convention precinct” and will contribute to the creation of more than 8000 jobs annually by 2018, enhancing the economic spinoff of the centre.
A recent feasibility report by economists from the University of Cape Town’s Graduate School of Business that measured the possible impact of the expansion revealed that the centre’s contribution to national Gross Domestic Product (GDP) is expected to increase from R 2.3 billion currently to over R 5.1 billion per annum.
The CTICC has been in existence since 2003/04, when it was founded by a total contribution of R565 million by the City, Provincial Government and SunWest. The contribution by the City amounted to R284m giving the City a 50.18% majority shareholding and making it a Municipal Entity. The current convention centre is developed on property which belongs to the City and is leased to the centre at a nominal rental.