CONFERENCE AND BUSINESS TOURISM:
SCOPE, VALUE, TRENDS, ISSUES AND
OPPORTUNITIES
Tony Rogers
TERMINOLOGY
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Business tourism
Business visits and (live) events
MICE
CI/CIT
www.keepbritaintalking.co.uk
• www.businessvisitsandeventspartnership.com
SEGMENTS AND VALUE
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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
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Hotels
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Conf./Training Centres 9%
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Academic
6%
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Multi Purpose Venues
12%
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Purpose Built
2%
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Unusual Venues
18%
(universe of 3,500 venues)
53%
MARKET SHARE
Market share - no. of events
C on/training
centre
12%
Purpose built
centre
1%
University
5%
Unusual
20%
Hotel
61%
Based on 3 year average (2006/08)
Source: UKEMTS 2009
WHO IS BUYING?
Type of organisation
Govt / public
sector
36%
Corporate
46%
Association
18%
Based on 3 year average
Source: UKEMTS 2009
CONFERENCE SIZE
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
Based on three year average (2006/8)
* = less than 0.5%
Source: UKEMTS 2009
RESIDENTIAL v. NON-RESIDENTIAL
Levels of residential / non-residential business
(All venues)
61
62
65
67
28
29
26
23
9
9
9
10
2005
2006
2007
2008
Overnight in the destination
Overnight at venue
Not overnight
Source: UKEMTS 2009
BILLION POUND INDUSTRY
Source:
UKEMTS 2009
ORIGIN OF BUSINESS
Origin of event business
Overseas
3%
UK
27%
Regional
70%
Source: UKEMTS 2009
The British Meetings and Events Industry Survey 2009
Number of events, Year from July 2008 to June 2009
70
61%
60
52%
50
40
30
20
Corporate
33%
Association
23%
15%
16%
10
0
More
Less
Same
The British Meetings and Events Industry Survey
2009
Mean budgeted delegate rates inc VAT
Associations
Corporates
Daily
£43
£54
24 hour
£123
£146
The British Meetings and Events Industry Survey
2009
Annual budget for events
Associations
Corporates
Last year
Change
Forecast
£180,466
£209,730
+0.5%
-1.9%
+0.1%
-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.
2.
3.
4.
5.
Reduced budgets/pressure to reduce costs
Venues’ cancellation policy
Producing interesting events relevant to audience
Economic climate affecting organisation
Terms and conditions for venues and suppliers
The British Meetings and Events Industry Survey 2009
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%
TRENDS & IMPLICATIONS
• Proliferation of e-communications
generating increased need for face-toface meetings
• Shorter, more intensive events
• Interactive meetings
• Need for dedicated facilities at venues –
continuous investment
TRENDS, CHALLENGES,
OPPORTUNITIES
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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…
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Conference and Business Tourism: Scope, Value, Trends, Issues