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After the Crisis: Global Industry
Status and Prospects
North America
James E. Rooney
Executive Director
MCCA
Business Recovery – Uncertainty
 Economic Growth
 U.S. Economy had strong momentum coming into
2011, but has slowed down through the first quarter.
U.S. Bureau of Economic Analysis June 21, 2011
Business Recovery – Uncertainty
 Watch List
 Oil Prices
 Housing Market
 Lack of Corporate Spending
 City & State Financial Struggles Continue
 Federal Debt and Spending Debate
 Double-Dip discussion returns
Current Situation
 As government entities, meeting facilities feel the pressure of
budget cuts
 40% of AIPC survey respondents feel that currently the government
is less inclined to invest in the convention and congress centre
industry, especially in terms of facilities and infrastructure.
 In North America, this figure jumps to 47.1%
 When operating funds are exhausted, capital projects are
postponed
 New supply growth was tremendous through the 80’s and 90’s
 41.2% of facilities in North America have “No development plans
currently”, with only 17.6% planning a renovation
 Clients whispering concerns about building’s physical
conditions
 Operating budgets cut or level for 3 years
Evaluation of Overall Business Model
 North America is a
mature market
 No organic growth
 Total Gross Revenues
increased by 2.2% from
2009 to 2010
 The growth rate in 2011
is expected to continue
at an industry average
of 3.3%
Current conditions lend to additional pressures
on convention center managers.
Investment and the Future
 Technology
 Competitive advantage
 Providing enough flexible infrastructure
 Free WiFi
Is free wired next?
 Re-thinking business model
 U.S. Cities quietly looking at European model
 Show production/partnership
 Equity position in show creation
 Re-use of real estate assets to maximize revenue
 Cities/Convention Center operators as hotel
developers
Industry Response
 Industry organizations collaborating to
demonstrate value of face-to-face meetings
 Benefits of meetings & conferences "beyond
tourism" being discussed