BY TEWODROS KASSA
“Globally, the meetings industry has come of age; and it has firmly placed itself at the center of tourism as one of the key drivers of the sector’s development and an important generator of income, employment and investment”, said Rifai, Secretary-General, World Tourism Organization (UNWTO) UNWTO Secretary-General, once while revealing the progress of the meetings industry and its considerable socioeconomic benefits.
According to the United Nations World Tourism Organization (UNWTO), in addition to important business opportunities, the meetings industry provides immense benefits to the broader economy as it generates on average a higher spending level, reduces seasonality, contributes to the regeneration of destinations, spreads knowledge and enhances innovation and creativity.
Addis Ababa is gaining a greater attention to host numerous international and regional conferences in recent time. As it is home to numerous international and regional organizations like the African Union (AU) and United Nations Economic Commission for Africa (UNECA), the city sustainably hosts annual conferences.
More importantly, the city witnessed the successful completion of different international conferences in the past. The nation’s diplomatic ties and credibility in hosting international conferences effectively helps to further promote the conference tourism sector and attract worldwide conferences.
In fact, reliable and strong diplomatic acceptance, availability of standardized conference centers, sustainable peace, inviting hospitality, world class air and road transports, luxurious hotels, swift ICT services, among others are the fundamental preconditions to win hosting international conferences bid successively.
Recently, it was announced that the first phase of the construction of the Addis-Africa International Convention and Exhibition Center S.C. is completed over 70 percent. Addis-Africa International Convention and Exhibition Center S.C. (AAICEC) Deputy General Manager Gashaw Abate told The Ethiopian Herald that the construction of the AAICEC has three phases, and now, over 70 percent of the first stage is completed.
As to him, a plan has been set to complete the first phase of the construction of the conference center project in the upcoming October 2023. Thus, top priority has been given to the project which would be an engine to making Ethiopia the center of conference tourism, he added. “A collaborative project of the public and the government, the center is of immense use to the growth of the tourism industry and the overall economy at large.”
Noting the initial plan to complete the whole project within three years at the cost of three billion Birr, Gashaw highlighted that various factors including the COVID-19 outbreak and the Birr’s devaluation hampered the execution. “As the contractor is a Chinese firm, it was shut down for a longer period due to COVID protocol. The company’s decision to reduce the number of its workers in Ethiopia is also an additional factor for the delay of the iconic project.”
The total budget of the first phase project alone is 1.2 billion Birr. The selling of shares is the main source of finance for carrying out the project, and so far, giant companies and 900 individuals have bought shares whose value is close to one billion Birr. With 700 million Birr worth of shares, the Addis Ababa City Government is the largest shareholder. The Commercial Bank of Ethiopia and the Ethio-South S.C (South African Diaspora Community) are the second and third largest shareholders with 150 million and 115 million Birr worth shares respectively.
The Deputy General Manager also called on stakeholders to buy shares and finance the completion of the project, which will be the center of international conferences, conventions, trade fairs, festivals, and exhibitions. as to him, the project’s completion will have a significant contribution to the country’s Meetings, Incentives, Conferences and Exhibitions (MICE) industry. Currently, the country does not have a convention center that meets international standards. Thus, the construction of this project will bring with it tangible market and economic opportunities.
“AAICEC is a golden project for the country as it will not seek further investment once it is completed.” Upon completion, the convention center will have different facilities; auditoriums, amphitheater, underground parking for close to 3,000 cars and other luxurious service centers; and will bring in greater contribution to building the positive image of the country, generating hard currency and attracting foreign direct investment. It will also reinforce the country’s business environment, particularly the aviation and hotel industries.
The center is being constructed in three phases. CGCOC GROUP CO. LTD, a Chinese contractor, is in charge of the project and the first phase [concrete filling] of the project is already finalized.
Laid in 11 hectares of land in Addis Ababa’s neighborhood known as CMC located in Saris square, the project’s construction of the convention and exhibition centers is being executed in three phases. The center’s first phase of construction includes two exhibition halls, an amphitheater, offices, and restaurants. The second phase will add four exhibition pavilions and the third phase comprises a four-star hotel and a shopping mall, it was learnt. The construction activity of the AAICEC project was commenced in 2018.
In sum, conference tourism plays a significant role in image building beyond generating huge direct and indirect income. Therefore, utilizing this powerful tool for socio-economic development will have significant roles in the country’s journey towards sustainable development.
The Ethiopian Herald March 31/2023
