Download Industry Issues and Prospects: A Global Perspective

Industry Issues and Prospects:
A Convention Centre Perspective
Rod Cameron
Executive Director,
International Association of Convention
Centres (AIPC)
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AIPC is the pre-eminent
international association
of convention centres
Our Mission: To
encourage, support and
recognize excellence in
convention centre
management
A global network:
• 175 member centres in 57
countries
• 900 active management-level
professionals deliver diverse
experience, knowledge
• Exclusive focus: convention
centre issues and opportunities
• Advancing recognition of our
member’s role in global
economic development
The Big Picture:
How is Our Industry Doing
Today?
A Convention Centre Perspective
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Recovery Has Been a Long Process –
and Many Impacts Remain:
Globally:
•Economic conditions highly variable
•Financially challenged governments must focus
on most urgent priorities
•Investments must deliver real value
In our world:
•Business still feeling the effects
•Our clients looking for more value, incentives,
subsidies
•Rapid change demands adaptation, investment
The Good News:

Performance, projections both up!
Business Growth has Consistently Beat GDP!
AIPC members increased total revenue at a faster rate than worldwide GDP
Source: AIPC-R7M, IMF
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The Good News:

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Performance, projections both up!
Association events were stable
throughout the recession
Corporate events rebounding strongly
Virtual meetings largely enhancing, not
competing with live events
A greater awareness of meetings as
business, knowledge, economic drivers
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Key Factors Driving Industry Change:
Competition
Adaptation
Relevance
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Competition Increasing Worldwide:
• Many governments realizing the broader
benefits of attracting convention business
• 71% of AIPC member centres “planning or
building” expansions, renovations
AIPC Members Planning or Currently
Developing/Constructing a New Build,
Expansion or Renovation Project (2015)
New build
Expansion
All
Regions
Europe
North
America
Asia
Australia
Africa
20%
20%
21%
0%
30%
20%
28%
18%
36%
40%
40%
40%
39%
54%
21%
20%
20%
20%
29%
28%
29%
40%
20%
40%
Renovation
No development
plans currently
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Competition Increasing Worldwide:
• Many governments realizing the broader
benefits of attracting convention business
• 71% of AIPC member centres “planning or
building” expansions, renovations
• Whole new regions emerging to compete in the
international market (Africa, Middle East)
•Convergence means more venue types are now
competing (exhibition halls, hotels, event spaces)
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Growing Competition Has Implications:
• It is a “buyer’s market” in most parts of the
world
• Clients have lots of choices, high expectations
• Centres are working to increase and diversify
markets, business revenues
• Less competitive facilities are losing business
• Incentives, rate reductions and subventions are
now routine
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% of Events Offered and Receiving Subventions /
Incentives / Discounts
Body Bullets
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Constant Adaptation is Required:
Events Are Evolving:
• Increasing complexity (formats / technology)
• Overall reduced length creates compression
• Delegates are driving change;
• have less time to commit
• want input to shaping content and format
• increasingly break into sub-components
• put importance on experiences, networking
• need to justify attendance
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Business Practices Have Changed:
• Shorter booking “windows”
• Negotiations tougher, ongoing
• Added-value expectations have become a
permanent feature in many areas
• Outsourcing, downsizing put more pressure
on centres, destinations
•Have been long term policy impacts (i.e. on
corporate, government meetings attendance)
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Technology is Reshaping Events:
• Today’s delegates have higher expectations
• E–communication fully integrated into meetings,
emerging on PDAs via conference apps
• Social web sites are creating new pre, post and
even on-site event components
• New (virtual) presentation options more realistic
• Free WIFI a near-universal demand; bandwidth
expectations unlimited
Relevance: Today’s Imperative!
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Real competition is with the many other forms
of communication and interaction
Both organizers and participants are demanding
more value for their investment
ROI measurement more important than ever
Our critical role in overall economic /
professional development needs to be
advanced, recognized
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Accountability an Increasing Factor:
•Self-regulation in the medical, pharma areas
led the way
•Tough new anti-corruption laws have followed
behind
• More formal procurement policies reshaping
the marketing environment
• International standards are increasingly
important
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What Clients are Telling Us:
•Many are still challenged by attendance,
financial, resource issues
•They want a better understanding of their
needs, objectives
•They are looking for new ideas and insights
•They increasingly want help with community
interface, local attendance building
•They are prepared to look at new models (i.e.,
sharing risk / reward)
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Centre Development, Financing, Management
• A process, not a formula
• No single “ideal” model; approach must be
based on local conditions / opportunities, but…
• Lots of examples, lessons available
• Must respond to market realities;
•Rigorous market assessment needed
•Design must respond to market potential
•Individual standards apply to various aspects
(sustainability, management)
•Flexibility is essential for future adaptation
Today, Success Means….
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Responding to evolving organizer and
delegate expectations
Delivering more support to clients (planning,
logistical, promotional)
Visibly addressing broader community
priorities (economic, social, professional)
Presenting a business and professional vs
leisure image
Flexibility, adaptability, clarity in all respects
Industry Issues and Prospects:
A Convention Centre Perspective
Rod Cameron
Executive Director,
International Association of Convention
Centres (AIPC)