conference and business tourism: scope, value, trends, issues and opportunities tony rogers
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CONFERENCE AND BUSINESS TOURISM: SCOPE, VALUE, TRENDS, ISSUES AND OPPORTUNITIES
Tony Rogers
TERMINOLOGY
• Business tourism
• Business visits and (live) events
• MICE
• CI/CIT
• www.keepbritaintalking.co.uk • www.businessvisitsandeventspartnership.com
SEGMENTS AND VALUE
• Conferences & meetings £7.2 billion
• Exhibitions & trade shows £9.3 billion
• Incentive travel £1.2 billion
• Corporate hospitality £1.1 billion
• Outdoor events £1 billion
• Individual business travel£7 billion +
• Discretionary v. non-discretionary
SCALE OF INVESTMENT
• Harrogate International Centre’s expansion - £13m
• NEC £25m refurbishment programme• Major £500m expansion of the Scottish
Exhibition & Conference Centre, Glasgow• ICC London ExCel - £165m• New convention centres planned for Brighton,
Cardiff, Blackpool, Leeds, Newcastle/Gateshead
• Cautious hotel investors?
UK VENUES
• Hotels 53%
• Conf./Training Centres 9%
• Academic 6%
• Multi Purpose Venues 12%
• Purpose Built 2%
• Unusual Venues 18%(universe of 3,500 venues)
MARKET SHAREMarket share - no. of events
Unusual 20%
University5%
Purpose built centre
1%
Hotel61%
Con/training centre12%
Based on 3 year average (2006/08)
Source: UKEMTS 2009
WHO IS BUYING?Type of organisation
Association18%
Govt / public sector 36%
Corporate46%
Based on 3 year average
Source: UKEMTS 2009
CONFERENCE SIZE
Based on three year average (2006/8)* = less than 0.5%
All events1
%
8 – 20 delegates 42
21 – 50 delegates 24
51 – 100 delegates 20
101 – 200 delegates 8
201 – 500 delegates 5
501 – 1000 delegates 1
1001 – 2000 delegates *
Over 2000 delegates *
Average event size 51 delegates
Source: UKEMTS 2009
RESIDENTIAL v. NON-RESIDENTIALLevels of residential / non-residential business
(All venues)
9 9 9 10
28 29 26 23
61 62 65 67
2005 2006 2007 2008
Overnight in the destination Overnight at venue Not overnight
Source: UKEMTS 2009
BILLION POUND INDUSTRY
Source: UKEMTS 2009
ORIGIN OF BUSINESSOrigin of event business
Regional70%
UK27%
Overseas 3%
Source: UKEMTS 2009
Number of events, Year from July 2008 to June 2009
15%
33%
52%
23%
16%
61%
0
10
20
30
40
50
60
70
More Less Same
Corporate
Association
The British Meetings and Events Industry Survey 2009
The British Meetings and Events Industry Survey 2009
Mean budgeted delegate rates inc VAT
Daily 24 hour
Associations £43 £123
Corporates £54 £146
The British Meetings and Events Industry Survey 2009
Annual budget for events
Last year ChangeForecast
Associations £180,466 +0.5%+0.1%
Corporates £209,730 -1.9% -0.1%
The British Meetings and Events Industry Survey 2009
Top ten UK destinations
1. London
2. Birmingham
3. Manchester
4. Edinburgh
5. Leeds
The British Meetings and Events Industry Survey 2009
Top ten UK destinations
6. Glasgow
7. Cardiff
8. NewcastleGateshead
9. Nottingham
10. Harrogate
The British Meetings and Events Industry Survey 2009
Key factors influencing venue selection
1. Location
2. Price
3. Access
4. Quality of service
5. Quality of conference facilities
The British Meetings and Events Industry Survey 2009
Issues of most concern for the next twelve months
1. Reduced budgets/pressure to reduce costs
2. Venues’ cancellation policy
3. Producing interesting events relevant to audience
4. Economic climate affecting organisation
5. Terms and conditions for venues and suppliers
Issues contributing most to a successful event Corporates
Associations
Content relevant to work and daily life 66% 65%
Inspiring and original presentations 52% 48%
Networking with peers/colleagues 48% 51%
Ease of access and travel 41% 49%
The (quality of) venue 35% 41%
The British Meetings and Events Industry Survey 2009
TRENDS & IMPLICATIONS
• Proliferation of e-communications generating increased need for face-to-face meetings
• Shorter, more intensive events
• Interactive meetings
• Need for dedicated facilities at venues – continuous investment
TRENDS, CHALLENGES, OPPORTUNITIES
• Procurement
• ROI
• Legislation
• Terrorism, risk, health & safety
• Economy: – greater spread of events across UK
CASE STUDIES
• NORTH WEST CONFERENCE RESEARCH UNIT
• ROTARY INTERNATIONAL CONVENTION 2009 – BIRMINGHAM
• BOURNEMOUTH…