NEWS RELEASE                                                                                                  13 June 2002

CITY COFFERS SWELL FROM GREAT EVENTS

SURVEY SHOWS MILLIONS FLOW INTO CITY

Great events - like the Cape Argus Pick 'n Pay Cycle Tour, North Sea Jazz and Gourmet Food Festivals, J&B Met and Volvo Ocean Race - have poured an estimated R700 million into Cape Town's coffers in the past six months according to independent surveys commissioned by the city.

An in-depth survey on the Cycle Tour released this week by the Economic Development and Tourism directorate of the City of Cape Town and an independent consultant, reveals the annual cycle race brought massive economic benefits including

* A total economic benefit of R317m

* A direct economic benefit of R218,3m

* Media exposure worth R44,3m

* And the sponsors and organisers spent R17 million in staging the event

The Cycle Tour drew about 55 000 local, and 73 000 national and international cyclists and their supporters to Cape Town in March this year.

And a survey on the financial impact of the Cape Town stopover of the 2002 Volvo Ocean Race - the round-the-world yacht race which finished in Kiel this week - brought R225m to the city in its wake, according to a major global study released in March.

The other events accounted for an estimated R250m in direct benefits and elicited millions of rands in publicity for the City and it amenities. Kent Morkel, Executive Councillor for Economic Development, Tourism and Property Management, said the figures were "enormous and far more than the average person would realise.

"They prove major events are economic drivers which stimulate investment in infrastructure and services. Successful events also attract international media attention, they build confidence and credibility, and they have a lasting economic impact on our city," he said.

Pat Lennox, Head of the City's Events Office, said the findings of the surveys were all positive for Cape Town. "Not only do some of our big events attract local, national and international attention, but it is clear that they have a huge impact on our local economy.

Other important findings of the latest survey showed

* 92,2% of cyclists said Cape Town added value to the Cycle Tour

* 66% of cyclists have visited Cape Town more than five times and 97% plan to return

* 85.2% were aged between 25 and 54 years

* 60.5% earn more than R11 000 a month

* 63,7% of cyclists were from outside the Western Cape

* Over 90% stayed in Cape Town for more than three nights

* 85,7% chose to take part in the event because it offered a fun, challenging and scenically beautiful race

* Cyclists rated the atmosphere and organisation of the event as "very good or excellent" with an average score of 4,7 on a scale of five Frans Fouché, chairman of the Cape Town Cycle Tour Trust, said "Bearing in mind that there are eight major events in Cape Town during the year that are accorded the special endorsement of the Cape of Great Events, the true economic impact of these events is mind-boggling."

A similar survey on the economic impacts of the Volvo Ocean Race stopover in Cape Town conducted by London-based Sports Marketing Surveys, showed that approximately R200m was spent by international racing teams, sponsors and spectators on accommodation, meals, shopping and services during the Cape Town stopover.

It also showed that 91% of the race visitors polled would return to Cape Town, giving the city an "excellent" rating of 4,7 on a scale of five and 94% would recommend Cape Town as a destination.