t5 presentation

For PolicyDiscussionPurposes

Only

DRAFT

James E. RooneyExecutive DirectorMassachusetts Convention Center Authority

Massachusetts Office of Travel and Tourism T5 Presentation

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DRAFTMCCA Overview

Economic Impact: Economic Impact: (in millions)(in millions)

FY 2009FY 2009 $525.4$525.4FY 2008FY 2008 $586.9$586.9FY 2007FY 2007 $515.0$515.0FY 2006FY 2006 $439.9$439.9FY 2005FY 2005 $337.4$337.4

TotalTotal $2.4 Billion$2.4 Billion

Facilities:Facilities: Boston Convention & Exhibition CenterBoston Convention & Exhibition Center

Hynes Convention CenterHynes Convention Center

Boston Common GarageBoston Common Garage

MassMutual CenterMassMutual Center

The Massachusetts Convention Center Authority's (MCCA) mission

is to generate significant regional economic activity by

attracting conventions, tradeshows, and other events to its world-

class facilities while maximizing the investment return for the

residents and businesses in the Commonwealth of Massachusetts.

MCCA MissionMCCA Mission

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MCCA: Demonstrated Success

Over the last five years the BCEC and the Hynes have more than doubled their return on investments:

Initial BCEC investment $850.0 Million Operating & capital investments $118.7 Million Tax Benefits $129.3 Million

Economic Impact $ 2.4 Billion

Demonstrated Success (FY2005 – 2009)

Key Event Indicators

BCEC HYNES

Events 634 609

Room Nights 1,349,602 1,280,705

Attendees 1,838,449 1,736,878

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Demonstrated Success

Over the past five years, the BCEC and the Hynes have generated over $2.4 billion$2.4 billion in economic impact (2004-2009). More conventions are coming to Boston in next three yearsnext three years than at any time in history (2010-2012).

Total Economic Impact in Massachusetts

$0

$100

$200

$300

$400

$500

$600

$700

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10Proj.

FY11Proj.

FY12Proj.

FY13Proj.

$ in

Mill

ion

s

Hynes

BCEC

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Boston will become a “Top 5” destination for conventions and meetings, substantially increasing its market share among North American competitors and enhancing the economic benefit to the City of Boston and the Commonwealth and be identified as the #1 destination in North America for international corporations and associations to hold meetings, conferences and exhibitions.

Statement of Purpose

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DRAFTA Shared Vision for a Top 5 Boston

Have Boston be continually recognized as the “BEST” convention and meetings destination in North America

Make Boston a consistent “TOP 5” destination among North American convention and meetings cities

Make Boston the leading international meetings destination in the US

Build on the direct economic benefit we currently create here at the BCEC

Host key events that support Massachusetts’ core industries

Generate 5,000 construction related jobs

Create 1,200 new hospitality and associated positions

(CSL International Estimate)

Cause creation of 3,500 – 4,500 new spinoff jobs in associated Massachusetts businesses

Support workforce development across the destination

A campaign to:

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DRAFTLeading Cities

Rank CityTotal Number

of Shows

1 Las Vegas 232

2 Chicago 118

3 New York 116 (tie)

4 Toronto 116 (tie)

5 Orlando 100

6 Atlanta 88

7 San Diego 80

8 Denver 78

9 Boston 69

10 New Orleans 66Source: 2009 Tradeshow Week

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DRAFTHow we will get there:

MarketShare

MCCAMission

EconomicImpact

1

BCEC Strategic

Development Plan

8

DestinationHospitalityCulture &

Brand

2

HotelRooms

3

SouthBoston & theWaterfront

4

MobilityInfrastructure

5

BostonCommonGarage

6

Hynesas a

CongressCenter

7

InternationalMarket

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Principles and ObjectivesPrinciples and Objectives

Components of potential BCEC growth (hotel, ballroom, exhibit hall, auditorium, and other uses) shall be:

Massed to respect existing neighborhoods and BCEC building

Designed based on feedback and survey data from meeting planner community to meet needs of users

Sized to match projected market and program (including flexibility for expansion) and functionality

Separate to allow phasing

Planned as a “campus” rather than a “mega-building”

Constructible and cost feasible

Sustainable design (LEED) and energy efficient

Continued focus on technological innovation & capabilities

BCEC Strategic Development Plan

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DRAFTExpansion AnalysisFull-build scenario with BRA vision for waterfront

1. Existing BCEC

2. Proposed Hotel Sites

3. New Ballroom

4. New Exhibit Halls

5. New Lobby and Meeting Rooms

6. Auditorium

7. Park and Event Lawn

8. Westin Boston Waterfront Hotel

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DRAFTPotential Buildout Option

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DRAFTDestination Challenges

Destination ChallengesDestination Challenges

Hotel Room Supply

Transportation / Mobility

Inherent Cost

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DRAFTOpportunities Lost

Over the past 3 years, a total of 143 shows were lost due to Space, Dates or Rates at BCEC (Event dates ranged from 2007 – 2029)

Total Room Nights Lost: 2.07 M Total Economic Impact Lost: $1.50 B Total Tax Benefits Lost: $92.3 M

Over the same 3 years, 228 shows were lost at the Hynes, of which 69 shows were due to conflicts with BCEC business.

Data from Jan 1, 2007 – Feb 2, 2010

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14

Cost Constraints

Am Society for Therapeutic Radiology & Oncology (ASTRO)

September 16-26, 2008 Attendance: 12,000 persons Room Nights: 34,200 (as of cut-off) Shuttle cost: $750K

Am College of Rheumatology November 5-11, 2007 Attendance: 14,000 persons Room Nights: 30,500 Shuttle cost: Between $500-$550K

International Association of Chiefs of Police

October 14-18, 2006 Attendance: 17,000 persons Room Nights: 28,900 Shuttle cost: $506K

Lack of hotels near BCEC results in significant transportation cost to our customers

Heart Rhythm Society May 17-20, 2006 Attendance: 14,000 persons Room Nights: 22,900 Shuttle cost: $214K

American Association of Orthodontists

May 1-5, 2009 Attendance: 20,000 Room Nights: 23,000 (approximate) Shuttle cost: $245K

(approximate) Biotechnology Industry Organization May 7-9, 2007 Attendance: 20,000 Room Nights: 31,100 (approximate) Shuttle cost: >$1million

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15

1,100

1,700

1,700

1,700

6,000

6,100

6,600

6,850

7,600

8,300

8,400

8,200

8,600

10,800

9,350

19,100

16,600

0 5,000 10,000 15,000 20,000 25,000

Chicago, IL

Los Angeles, CA

Boston, MA - BCEC

New York, NY

Boston, MA - Hynes

Baltimore, MD

Denver, CO

Miami Beach, FL

Washington, DC

San Diego, CA

Atlanta, GA

Philadelphia, PA

New Orleans, LA

San Antonio, TX

Orlando, FL

Las Vegas, NV

San Francisco, CA

Number of Rooms

Average = 7,570 RoomsMedian = 7,600 Rooms

Lack of hotel inventory is the number one constraint to BCEC Convention Business

DRAFT COPYFor Policy Discussion Only

* Chicago has dedicated transportation infrastructure from downtown hotels to McCormick Place

Comparison of Hotel Rooms Within ½ Mile of the Convention Center

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DRAFTBoston Hotel Development

Boston Convention andExhibition Center

½ Mile Radius

1 – Waterside Crossing (300)

2 – Waterside Place (300)

3 – Congress Street Hotel (505)

4A – Seaport Square (300)

4B – Seaport Square (400)

5 – Fan Pier (175)

6 – Pier Four (200-250)

1

5

6

23

4A

Existing Hotels– 0 hotels with more than 1,000 rooms.

– 1 hotel with 500 to 999 rooms.

– 2 hotels with 100 to 499 rooms.

4B

+ 1,700 existing+ 2,300 to meet current needs+ 2,000 to meet expansion needs

= 6,000 total rooms

Still does not meet hotel demand

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DRAFTHotel Rooms Within ½ Mile ofSan Diego & Orlando convention centers

San DiegoConvention Center

21

4

3

57

689

½ Mile Radius

San Diego Convention Center

– 3 hotels with more than 1,000 rooms.



½ Mile Radius

5

6

Orange CountyConvention Center

12

34

7

11

8

910

1213

14

15

17

16

– 4 hotels with more than 1,000 rooms.

– 1 hotel with 500 to 999 rooms.


Orange County Convention Center

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DRAFT

International Shows in Boston

Boston ranked top destination Boston ranked top destination in the United States in the United States for international association meetings, yet no for international association meetings, yet no single U.S. city ranks in top 20 (Boston is #45)single U.S. city ranks in top 20 (Boston is #45)

Source: International Congress & Convention Association, country & city rankings (2008)

Broaden international exhibitor and attendee base by enhancing international appeal

Capacity exists to strengthen market position Expand destination sales and marketing Emphasize European feel and proximity Direct flights: at peak there are 160 direct flights from

Europe to Logan weekly; growth with Grand China Airlines Strengthen hospitality culture across destination to be

more welcoming to international visitors

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DRAFTNext Steps

Public Outreach and Dialogue

The Convention Partnership: 27-member group to steward public study and analysis of feasibility of BCEC expansion

– Membership: Appointments by Governor, Mayor, Senate President, Speaker of the House; Includes South Boston Elected Officials, South Boston Community Development Foundation, Hotels and Tourism Groups, Watchdog Organizations, MCCA Board, Labor, Massport

– Analyze need for expansion, state of industry, potential expansion program, financing options, impact of expansion

– Conduct public meetings as needed

– Files a report to Governor, Mayor, Speaker and Senate President by December 31, 2010

t5 presentation

Documents

policy discussion purposes

draft boston

city of boston

south boston

draft james

draft principles

draft opportunities

bcec building