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…