The event management industry in South Africa and the impact of technology and geopolitical shifts

Events such as conferences were organised very differently in the 1990s compared to now. Simple examples such as confirming attendance and enhancing value for delegates have resulted in drastic improvements in attendee experience.

Globally, technology has transformed the management of events and attendance, participation and the value-add realised from events. The shift toward hybrid formats was propelled by the pandemic, which fast-tracked advancements in digitisation. From big global summits to smaller, more focused product launches, one can attend online, in-person or through a combination of the two. The integration of artificial intelligence (AI) and virtual reality (VR) have enhanced the experience, engagement and efficiency for event organisers.

Competitiveness of the South African event management industry

South Africa’s event management industry has remained competitive, particularly business, conferences and large-scale exhibitions. The country has world-class venues, established infrastructure, a good climate, and a good reputation for hosting big events. 

According to the Who Owns Whom report on the event management industry in South Africa, the country is the highest-ranked conference destination in Africa, with Cape Town ranked the top convention city in Africa. The G20 summit is taking place in the country and the minister of Sports, Arts and Culture, Gayton McKenzie, announced that he would bid for a Formula 1 race to be hosted at Kyalami again. Given that the country hosted the 2010 FIFA World Cup, the Rugby World Cup in 1994, and the Netball World Cup in 2023, the chances of being awarded a Formula 1 race seem probable.

The meetings, incentives, conferences and exhibitions (MICE) industry contributed R121.8bn to the economy in 2023 and is poised to grow with its integration of technology, sustainability, investments, digital transformation and tourism recovery strategies.

The graph indicates the potential for growth and the stiff competition the event management industry faces. If the issues stated below are addressed, South Africa is well placed to improve its ranking and draw some of the opportunities from countries which currently have a better ranking.

 Challenges facing South Africa’s event management industry

the country needs to address several issues for it to take advantage of the positives mentioned above. As competition from the US and Europe is growing, urgent attention to some of the issues highlighted in the Who Owns Whom report on event management are required.

The technology projects underway to address visa issues need to be accelerated, especially issues affecting tourism from countries like India, Nigeria, and China. There is potential to attract high volumes of tourists from these countries, so streamlining visa issuance will unlock value.

Water and electricity shortages are still hindering the industry, with event visitors expecting venues to have solutions to these problems. Big venues have invested in alternative power and water supplies, with the CEO of Gallagher Convention Centre being quoted saying it has secured a 1 million litre back-up water supply on the property.

Another issue that is being addressed is the air connectivity hurdle. As a long-haul destination, South Africa, through the Department of Transport, has developed a national air access strategy with Cape Town. 

Geopolitical shifts and their impact on event management

The world is facing various geopolitical challenges and South Africa is not immune to them. Ongoing wars and conflicts in Ukraine, Gaza and Yemen, and annexation threats to Greenland, Panama Canal and Canada by the US have resulted in instability and uncertainty which may lead to less long distance travel and affect the event management industry. 

The industry in South Africa can still grow if the issues highlighted in the Who Owns Whom report are addressed adequately and timeously.