AIPC 2007 AIPC 2007 Industry Outlook SurveyIndustry Outlook Survey

Presentation to AIPC Annual Presentation to AIPC Annual Conference Graz 2007Conference Graz 2007

Purpose of the Survey:Purpose of the Survey:

Take the pulse of the industryTake the pulse of the industry Identify any common issuesIdentify any common issues Identify areas where further surveys Identify areas where further surveys

might be usefulmight be useful Compare with other industry Compare with other industry

members / partnersmembers / partners Establish a baseline for future Establish a baseline for future

surveys (trend analysis)surveys (trend analysis)

Number of AIPC memberNumber of AIPC membercentres participating in the surveycentres participating in the survey

65.81% 34.19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Has your business increased or decreased over the past year ? ?

14%

86%

0% 20% 40% 60% 80% 100%

Decreased

Increased

More or Less Confident of Business More or Less Confident of Business Prospects for 2007?Prospects for 2007?

5.38%

54.84%

39.78%

0% 10% 20% 30% 40% 50% 60%

Less

Same

More

Reasons for Greater Confidence:Reasons for Greater Confidence:

Improved economyImproved economy More bookingsMore bookings Increased attendanceIncreased attendance More short term businessMore short term business

Reasons for Less Confidence:Reasons for Less Confidence:

Not sure they can meet same level of Not sure they can meet same level of performance as 2007performance as 2007

Political / management / logistical Political / management / logistical issuesissues

Types of Business Expected to Types of Business Expected to Increase / Decrease:Increase / Decrease:

35%

37%

44%

54%

76%

13%

12%

2%

12%

10%

52%

51%

44%

36%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Entertainment /sports

Consumer events

Trade exhibitions

Associationconventions

Corporate meetings

Increase Decrease Same

Other Business Categories:Other Business Categories:

Banqueting businessBanqueting business Government meetingsGovernment meetings

Challenges Over the Next Three Years: Challenges Over the Next Three Years: Owner’s Perspective Owner’s Perspective

21,1%

24,8%

24,9%

29,2%

0% 10% 20% 30% 40%

Reviewing governance of thecentre

Reviewing financing of the centre

Reviewing management of thecentre

Changing revenue expectations

Challenges Over the Next Three Years: Challenges Over the Next Three Years: Market PerspectiveMarket Perspective

22.1%

19.8%

16.0%

15.3%

14.7%

12.1%

0% 10% 20% 30%

Reduced attendance at events

Greater influence by for core PCO's andassociation management compagnies

Greater concern about environmentalissues

Client reluctance to pay for extraservices

Pressure on rental rates

More competitions from other centres

Challenges Over the Next Three Years: Challenges Over the Next Three Years: Internal PerspectiveInternal Perspective

17,6%

22%

25,6%

34,8%

0% 10% 20% 30% 40%

Labour disruptions

Increasing governmentregulation

Labour shortages

Increasing operation costs

Additional Challenges:Additional Challenges:

Skills shortagesSkills shortages Impacts of emerging marketsImpacts of emerging markets Need for certificationNeed for certification Political changesPolitical changes

Where do you see the best Where do you see the best opportunities for revenue growth?opportunities for revenue growth?

26,9%

26%

8,4%

13,1%

25,6%

0% 5% 10% 15% 20% 25% 30%

Retail (if applicable)

Parking (if applicable)

F&B

Space Rental

Event services

Other Revenue Opportunities:Other Revenue Opportunities:

PackagingPackaging Re-thinking government subsidiesRe-thinking government subsidies Attaching hotelsAttaching hotels Event partnershipsEvent partnerships

Responding to Challenges / Responding to Challenges / OpportunitiesOpportunities

37%

8%4%

12%

14%

25%

New sales / marketing 37%

Enhanced service 25%

Staff training 14%

Facility Upgrades 12%

Strategic Planning 4%

Other 8%

Demand Side Survey Results:Demand Side Survey Results:

Increasing demand (number / size of Increasing demand (number / size of events, attendance, spending)events, attendance, spending)

Growing concern re: costs (i.e., Growing concern re: costs (i.e., hotels)hotels)

Cost, access, security remain big Cost, access, security remain big decision factorsdecision factors

In Summary:In Summary: Business is good; confidence highBusiness is good; confidence high Driven largely by external factors Driven largely by external factors

(i.e., the economy)(i.e., the economy) Primary driving forces are traditional Primary driving forces are traditional

business / revenue areasbusiness / revenue areas Response to challenges is “more of Response to challenges is “more of

the same”: S&M, service, facility the same”: S&M, service, facility enhancementsenhancements

Little interest in new revenue sources Little interest in new revenue sources and/or new product developmentand/or new product development

This Means…..This Means….. Owner expectations will increaseOwner expectations will increase Success will attract new investmentSuccess will attract new investment Competition will continue to increaseCompetition will continue to increase Client negotiations will get tougher Client negotiations will get tougher

(supply, third party issues)(supply, third party issues) Revenues will come under pressure Revenues will come under pressure Internal issues will increase (i.e., cost Internal issues will increase (i.e., cost

control, labour supply)control, labour supply) Partner challenges (i.e., hotels rates Partner challenges (i.e., hotels rates

and availability) will emergeand availability) will emerge

Planning Ahead:Planning Ahead:

A good time to look at:A good time to look at: Market diversificationMarket diversification New revenue sourcesNew revenue sources New ways to manage external / partner New ways to manage external / partner

relationshipsrelationships Developing community supportDeveloping community support Documenting benefits (i.e., economic)Documenting benefits (i.e., economic) Investing in education, succession, Investing in education, succession,

certificationcertification

AIPC 2007 AIPC 2007 Industry Outlook SurveyIndustry Outlook Survey

Presentation to AIPC Annual Presentation to AIPC Annual Conference Graz 2007Conference Graz 2007