DESPITE South Africa’s economy contracting by 2.2% in the first quarter, more than 50000 people are expected to attend the Vodacom Durban July at Greyville Racecourse in a fortnight’s time.
Premium champagne will flow, culinary nibbles and saucy steaks will be served in the biggest tent-town ever.
The contraction has been the biggest since the third quarter of 2009.
But with the economy seemingly unstable, fashionistas, socialites, partygoers and horse racing lovers are preparing for the biggest July yet.
Ken Tweddell, a spokesperson for event organisers Gold Circle, said there was a huge demand for hospitality venues. He said, as a result, the site had to be extended.
“All our restaurants in the main grandstand are full and the picnic sites are filling fast. We are looking to have another sell-out crowd of up to about 55000 people,” said Tweddell.
As per this year’s theme, “It is time”, the various event organisers at tent-town were working around the clock to create unforgettable experiences for their guests, who are expected to be accommodated in well-decorated marquees.
The July experience, especially at tent-town, does not come cheap, with entry to the marquees costing anything from a few hundred rand to several thousand.
Events World, which is contracted by Gold Circle for events management, said there was a new Silver Ring Room at the grandstand which overlooked the finishing straight. The room, designed for “opulent luxury”, can cater for up to 900 VIP guests.
“Many people will choose to be part of the festivities in Marquee Village, while other top-end guests will look to enjoy the day in more discreet luxury. That is where the Silver Ring Room comes in,” said Jacqueline Yanko of Events World.
Nellie Mhlongo, also of Events World, said the July catered for all audiences - from the family set-up to over-the-top opulence in tent-town.
“Some racegoers go to extraordinary lengths to decorate and host guests at picnic sites, while others prefer a minimum-hassle approach and are happy to bring their own food and drinks,” she said.
Economist Professor Bonke Dumisa said the splurging in spite of dire economic challenges, was not unique to South Africa. He said despite additional taxes being imposed on cigarettes and alcohol through sin taxes, people did not apply cost-cutting measures.
“On the country’s budget, you would notice alcohol and cigarettes always increases, but people would never think to stop buying them. Instead, they continue to buy the same amount of alcohol.
“The majority of the people who attend the VDJ are not interested in the horse racing. They go there for enter- tainment and alcohol. People who drink don’t mind paying money without a budget.”
He said some people would have budgeted for the July, while others would decide at the last minute and spend with their mindset dictating it was a “once-off” expense.
“The latest figure on inflation for May is 4.4% and it shows that it’s lower than April, which was at 4.5%.
“Despite the VAT increase it has not negatively affected goods. Instead it’s reduced demand on high price products, but your ordinary items like alcohol remain in demand.
“I'm 100% sure the economy will not affect attendance of this event. The only effect might be the corporates; companies might not buy tickets for their employees or their customers any longer,” said Dumisa.
Durban Tourism did not respond to e-mails for comment in time.
However, Philip Sithole, eThekwini’s deputy city manager: business and economic development, said between 49000 and 69000 people were expected to travel to Durban during the July weekend.
He said the direct spend for the racing event was estimated at between R75million and R80m on the Saturday alone.
“If it were not for the unstable economy, the numbers could have been higher.”
Durban Tourism, he said, would also have a marquee at tent-town, but, they would be using it to market the city as a destination marketing platform.