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The Cape Town International Convention Centre : a positive economic impact created through the legalisation of gambling

Thesis (MComm)--University of Stellenbosch, 2004. / ENGLISH ABSTRACT: The legalisation of gambling in South Africa was perceived by many as an
unnecessary vice that would bring social decay in a country that is already battling to
cope with a wide array of social woes, such as unemployment, crime, etc. Anti
gambling protestors argued that South African society is not sufficiently developed to
cope with an industry that diverts money from normal household budgetary
expenditure patterns to the many forms of gambling that suddenly became legal.
Protestors also argued that gambling tax is just another tax on an already overtaxed
society. Many of these arguments were justified and the legalisation of gambling was
clearly an issue, which had to be dealt with carefully.
Politicians, the custodians of a well-managed political system through pro-active
policies that will be to the benefit of a country and its people were in a particularly
difficult position with the creation of a legalized gambling industry and had to weigh
policy between the advantage of additional tax revenue and the disadvantage of
adding to the social ills of South African society. In terms of the Constitution of South
Africa gambling was a concurrent competence and the respective provinces had an
opportunity to develop gambling policy that will be beneficial to the relevant
province. Although the national Gambling Act provided the broad parameters in
which provincial legislation had to be developed, provinces had ample opportunity to
be innovative in respect of provincial gambling legislation.
After the legalisation of gambling provinces moved quickly to ensure that casinos
were developed, mainly to create a larger revenue base through gambling tax. Most
provinces were cash-strapped, as their share of the national budget was not sufficient
to deal with the long list of provincial development priorities. A way had to be found
to supplement the national government contributions and gambling tax was an
attractive option.
The Western Cape Province moved somewhat slower in the promulgation of
provincial gambling legislation. There was a clear realisation that gambling was going
to have a massive social impact on the population of the Western Cape and therefore
had a clear objective to find ways to develop casinos in such a way that it would
offset the negative impact of gambling.
This thesis did not place any emphasis on the quantification of the social impact (such
as lack of productivity, loss of employment, bankruptcy, domestic violence, divorce,
etc). The objective was to show that the allocation of a gambling licence could be
used to create infrastructure that is not linked or related to a casino. Such
infrastructure is normally in high demand in cities or regions, which are emerging as
tourist destinations, but the infrastructure would not be developed by the government,
as the capital cost is too high, nor by the private sectors as the profit margins are too
low.
The Western Cape used its allocation of five casino licences in terms of the National
Gambling Act to create an impact on the whole of the region by dividing the province
into five regions and allocating a casino licence to each of the regions. Since 1994 Cape Town and the Western Cape have gained prominence internationally
as a tourist destination. It was soon clear that the city and region would not be able to
cope with the influx of tourists due to a lack of hotel rooms and other tourism
infrastructure. It was also clear that the tourism industry would not show the required
growth without facilities, such as a convention centres. It is particularly a convention
centre that became an urgent element in Cape Town as convention business has
become a rapidly growing business with a potentially significant impact in terms of
convention expenditure and the resulting economic impact on a city.
The Western Cape developed gambling policy determinations made it clear that in the
case of the five regions, casino bid companies were obliged to include tourism
infrastructure that would add value to a particular region. It was made clear that such
infrastructure should not necessarily be linked with a casino and could be off-site. The
policy determinations were clear in its stipulations that stand-alone casinos would not
be entertained in the adjudication process.
The development of an international convention centre became an important criterion
in the allocation of a casino licence in the Cape Metropole. Although casino bid
companies included different kinds of infrastructure in their bids (mostly projects that
would have a positive impact on tourism) the development of an international
convention centre became a strong factor and the casino licence for the Cape
Metropole was allocated to the company that included the development of an
international convention centre in the their casino bid application.
Although convention centers are rarely profitable they are known to change the face
of cities and regions in terms of their economic impact, not only the impact in terms
of urban renewal opportunity, but also attracting domestic and international
convention center delegate expenditure and the expenditure on hotels, food and
beverage, transport, and general tourism expenditure. The direct, indirect and induced
economic impact of this expenditure in the Western Cape and Cape Town result in the
off-setting of the negative social impact and ensure that the benefits of the legalisation
of gambling is extended to projects that would be unlikely developments in the
absence of a casino licence allocated.
The study undertaken demonstrates the economic impact (direct, indirect and
induced) of the Cape Town International Convention Centre. It also shows the impact
of the center on the promotion of tourism, including convention center delegates
returning to the Western Cape for leisure purposes in the future. It culminates in the
conclusion that the allocation of a casino licence should not only be the development
of a stand-alone casino, but also the creation of tourism infrastructure that offsets the
negative impact of gambling. / AFRIKAANSE OPSOMMING: Die wettiging van die dobbelindustrie was deur baie mense gesien as ‘n
onnodige euwel wat net sou bydra tot sosiale verval in ‘n land wat reeds
gebuk gaan onder ‘n wye verskeidenheid sosiale probleme, soos
werkloosheid, misdaad, ens. Anti-dobbel stemme het argumenteer dat die
Suid-Afrikaanse gemeenskap is nie genoegsaam ontwikkel om ‘n
industrie te hanteer wat geld kanaliseer vanaf normale huishoudelike
besteding na die vorme van dobbel wat gewettig is nie. Anti-dobbel
stemme het verder genoem dat dobbel net ‘n verdere belasting is in ‘n
gemeenskap wat reeds oorbelas is. Baie van hierdie argumente het gewig
gedra en die wettiging van die dobbelindustrie was duidelik ‘n kwessie
wat versigtig hanteer moes word.
Politici, die beskermhere van ‘n gesonde politieke bestel deur pro-aktiewe
beleidstappe wat tot voordeel van ‘n land en sy mense behoort te wees,
was in ‘n besondere politieke dilemma met die wettiging van die
dobbelindustrie en moes die voordele van verdere belastinginkomste in
ag neem saam met die sosiale nadele wat die industrie sou skep. Volgens
die Konstitusie van Suid-Afrika is dobbel ‘n konkurente
verantwoordelikheid en die onderskeie provinsies kon provinsiale
dobbelbeleid ontwikkel volgens provinsiale vereistes. Alhoewel die
nasionale wetgewing die oorhoofse raamwerk skep vir provinsiale
wetgewing, het provinsies die geleentheid gehad om innoverend te wees
met die ontwikkeling van provinsiale wetgewing.
Na die wettiging van die dobbelindustrie het provinsies vinnig opgetree
om casinos te ontwikkel, hoofsaaklik om ‘n groter belastingbasis te
ontwikkel deur die toepassing van wetgewing. Die meeste provinsies
ondervind ‘n tekort aan inkomste, aangesien die inkomstetoedeling vanaf
die nasionale regering nie genoegsaam is om aandag te gee aan ‘n lang
lys van ontwikkelingsprioritiete nie. ‘n Weg moes gevind word om
provinsiale inkomste aan te vul en dobbelbelasting was ‘n aantreklike
opsie.
Die Wes-Kaap Provinsie het ‘n meer geduldige pad geloop in die
promulgering van dobbelwetgewing. Daar was ‘n duidelike besef dat
dobbel ‘n massiewe negatiewe sosiale impak in die Wes-Kaap sou teweeg
bring en was daarvan oortuig dat ‘n weg gevind moes word om die
negatiewe sosiale impak minder te maak. Die tesis het nie die klem geplaas op die kwantifisering van die negatiewe
impak (soos byvoorbeeld die gebrek aan produktiwiteit, verlies aan
werkgeleenthede, bankrotskappe, huishoudlike geweld, egskeidings, ens)
nie. Die doel was om te demonstreer dat die toekenning van ‘n casino
dobbellisensie gebruik kan word om infrastruktuur te skep wat nie direk
verwant is aan ‘n casino nie. Sodanige infrastruktuur is gewoonlik in
aanvraag in stede en streke wat ontluik as toerismbestemmings, maar
hierdie tipe toerisme-infrastruktuur sal nie deur die regering ontwikkel
word nie weens ‘n tekort aan die nodige fondse, maar ook nie deur die
privaatsektor nie weens die gebrek aan aantreklike winsmarges.
Die Wes-Kaap Provinsie het die vyf casinolisensies wat aan die provinsie
toegedeel is in terme van die Nationale Dobbelwet gebruik om ‘n impak
in die hele Provinsie te maak deur die Provinsie in vyf streke te verdeel
met ‘n lisensie toegedeel aan elk van hierdie streke.
Kaapstad en die Wes-Kaap het sedert 1994 internasionale prominensie
verkry as ‘n internasional toerismebestemming. Dit was egter gou
duidelik dat die stad en die streek nie die verwagte stroom van toeriste sal
kan hanteer met die gebrek aan hotelkamers en ander toerismeinfrastruktuur
nie. Die toerismesektor sal ook in gebreke bly om te groei
sonder ander fasilitiete soos ‘n internasionale konferensiesentrum. Die
gebrek aan ‘n internasionale konferensiesentrum het gelei daartoe dat
Kaapstad konferensies begin verloor het weens die gebrek aan voldoende
fasiliteite. Die internasionale konferensie-industrie toon uitstekende
geleenthede vir ekonomiese groei deur die konferensieganger besteding
en die impak op die ekonomie van Kaapstad en die Wes-Kaap.
Die Wes-Kaap het dobbelkriteria ontwikkel wat dit duidelik gemaak het
dat casino lisensie-aansoekers daartoe verplig was om toerismeinfrastruktuur
by hulle aansoek in te sluit wat sou bydra tot die
waardetoevoeging in die onderskeie streke. Dit is ook duidelik gemaak
dat sodanige infrastruktuur nie noodwendig fisies aan ‘n casino gekoppel
hoef te wees nie en kon ook weg van die casino perseel ontwikkel word.
Die beleidskriteria het dit verder ook duidelik gemaak dat alleenstaande
casinos nie oorweeg sou word nie.
Die ontwikkeling van ‘n internasionale konferensiesentrum het ‘n
belangrike beleidsoorweging geword in die toekenning van ‘n
casinolisensie in die Kaapse Metropool. Alhoewel casino maatskappye ‘n
verskeidenheid infrastruktuurelemente in hul aansoeke ingesluit het
(meesal projekte wat ‘n positiewe impak op toerisme sou teweeg bring)
het die ontwikkeling van ‘n konferensiesentrum ‘n uiters belangrike oorweging geword in die toekenning van ‘n casino lisensie en die lisensie
vir die Kaapse Metropool is derhalwe toegeken aan die maatskappy wat
die ontwikkeling van ‘n konferensiesentrum in die suksesvolle aansoek
ingesluit het.
Alhoewel konferensiesentrums byna nooit winsgewend is nie, skep
sodanige sentrums die moontlikheid van stedelike vernuwing en ‘n
ekonomiese impak deur die besteding van konferensegangers op hotelle,
voedsel, drank, vervoer en algemene toerismebesteding. Die direkte,
indirekte en geleide ekonomies impak van hierdie besteding lei daartoe
dat die negatiewe sosiale impak afgeskaal word en lei derhalwe daartoe
dat die voordele van die wettiging van dobbel verder gevoer word deur
projekte wat onwaarskynlik sou wees in die afwesigheid van die
toekenning van ‘n casinolisensie.
Hierdie studie demonstreer die ekonomiese impak (direk, indirek en
geleide) van die Kaapse Internasionale Konferensiesentrum. Die studie
demonstreer verder die impak van die studie op die bevordering van
toerisme , insluitende konferensiegangers wat na Kaapstad terugkeer vir
vakansiedoeleindes. Hierdie impak kulmineer in die gevolgtrekking dat
die toekenning van ‘n casinolisensie behoort nie net te lei tot die
ontwikkeling van ‘n alleenstaande casino nie, maar ook die ontwikkeling
van toerismeinfrastruktuur wat daartoe lei dat die negatiewe sosiale
impak afgeskaal word.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/16466
Date04 1900
CreatorsVoges, Pierre
ContributorsBlack, P.A., University of Stellenbosch. Faculty of Economic and Management Sciences. Dept. of Economics.
PublisherStellenbosch : University of Stellenbosch
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format106, [10], 14 leaves
RightsUniversity of Stellenbosch

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