Regional economy thrives on Durban July

WITH more than 50 000 fans on course and millions worldwide watching the Vodacom Durban July, the biggest winner was the regional economy that reaped the benefit of a cash injection of R425 million.

With the 118-year-old event enshrined as a national sporting icon and recognised worldwide as Africa’s greatest horseracing event, attendance at the Vodacom Durban July has been sold out for the last five years, but there has been marked shift in the support base for the event.

The event has become hugely popular with Gauteng socialites, who for the last two years have made up more than 50 per cent of the crowd at Greyville racecourse on raceday, compared to the 2012 Vodacom Durban July where the Gauteng contingent was just over 20 per cent.

The consequential effect for the regional economy is a massive surge in spend on airfares, transport, accommodation and hospitality in the greater Durban area over the entire weekend.

Significantly, data from Vodacom Durban July fans surveyed showed a marked trend towards using the trip to raceday as the basis for a longer stay in the province, with 25 per cent of the out-of-province visitors spending three nights in KwaZulu-Natal, 7 per cent holidaying for four nights, and 17 per cent spending five nights or more in the region over the weekend of the Vodacom Durban July.

With each out-of-province visitor spending an average R5296 on travel, accommodation and entertainment, the regional hospitality industry banked R133 750 000 from the Vodacom Durban July last year.

Betting accounts for more than R200 million rand, with around R100 million being wagered on the totes nationally, and bookmakers turning over a comparable figure from their customers. Wagers on the R3,5 million Vodacom Durban July race normally account for about half of that betting spend.

Together the event is expected to trigger an economic surge of R425 million and is sure to leave hoteliers, restaurateurs and B&B owners beaming.

Ndabo Khoza, CEO of Tourism KwaZulu-Natal, said: “It is always rewarding to see the influx of tourists for the Vodacom Durban July, and this year we welcomed tens of thousands of people to the city and province. Events such as these form the cornerstone of our strategy to drive tourists into the province, and Durban is fast becoming entrenched as the events capital of South Africa. But more than that, it also provides an ideal platform for us to host the international tourism trade.”

Andrew Layman, the chief executive officer of the Durban Chamber of Commerce feels that the region should build on a strategy that uses key sporting and social events to attract visitors throughout the year.

“The Vodacom Durban July is an event of such mammoth significance that it stands head and shoulders above other events, particularly as it draws so many high-profile political, business and social personalities from Gauteng. But in the broader scheme of things, all these events tend to hang together as contributing towards, and benefiting from momentum,” said Layman.

“Events, especially, if they carry high status, exploit people’s willingness to spend and, in the case of the Vodacom Durban July, their desire to be seen in places that raise their levels of public exposure.

“The Vodacom Durban July is no longer just a premier horse race. It is the nucleus of a social event which includes a variety of associated functions and gatherings, all of which, in some way, have significant economic spin-off. The opportunities presented for the fashion industry are prime examples of this,” said Layman.