51st ICCA Congress
International Congress and Convention Association.
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Models for Structuring CityConvention Bureaux and
Other Marketing Organizations
International Congress and Convention Association.
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• Introduction
• Case studies
– VisitOslo, Norway
– Tourism Toronto, Canada
– Malaysia Convention & Exhibition Bureau
• Round table discussions
• Closing
Agenda
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• A public-private partnership
• Established as not-for-profit, foundation or trust
• Annual income of less than 5 million Euro
• Derive 56% of income from public sector and 44% from private sector
• Have approx. 50 staff
• Have modest capital reserves
The ‘typical’ European CVB
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• Spend 45% of budget on marketing/communications and 39% on staff
• Have enjoyed increased funding over past 5 years
• Expect a more or less standstill budget in next financial year
• Expect to face reduced public sector funding in future
• Expect challenges to maintain private sector income stream in future, e.g. membership fees
The ‘typical’ European CVB
51st ICCA Congress
International Congress and Convention Association.
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Session sponsored by:
Models for Structuring CityConvention Bureaux and Other Marketing Organizations
Anne Wallin RødvenConvention DirectorVisitOslo
International Congress and Convention Association.
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• Capital of Norway
• 600.000 inhabitants (Norway almost 5 mill)
• 11.000 hotel rooms
• Congress centre can host 6.000 people
• 68 intl congresses in 2011 (UIA)
About Oslo
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• Established 1929 as «The Travel and Tourist Association for Oslo and its region»
– NOK 5000 from the city(€ 625/$ 1000)
• Changed to «Oslo Promotion» in 1988 – a semi-municipal foundation
– In 1990 we had NOK 13 mill from the city (€ 1,6 mill/$ 2,6 mill)
– In 1991 the municipal contribution dropped to NOK 3 mill!
• New change from 1992: Oslo Promotion Ltd with share-holders from the industry, and no municipal involvement– Name changed to VisitOSLO in 2005
History
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• 150 shareholders from the industry– NOK 10 000 per share (€ 1250/$ 2000)
• They pay an annual marketing fee depending on their category– Hotels per room– Congress centres per seat– All other categories fixed rate
• City council not involved in the formal structure– Pays an annual contribution for Tourist Information
Centres and different projects i.e. convention bureau. Subject to application every year
Structure
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Governance
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• Municipality (48%)– NOK 17,6 mill (€ 2,2 mill/$ 3,5 mill)
• Industry (22%)– NOK 8,3 mill (€ 1 mill/$ 1,7 mill)
– Annual marketing fee
• Profit from own activities (30%) – NOK 11 mill (€1,4 mill/$ 2,2 mill)
– Hotel booking, sale of Oslo Pass, sightseeing, transport etc
– Management of regional project for route development (marketing campaigns for new routes/airlines))
Our funding in 2012
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• Pro’s:– No need to chase project money from industry
• Easy to budget industry contributions
– A business-like relationship with the municipality• Not political
Pro’s and con’s
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• Con’s– Municipal money subject to change
• Elections, new bureaucrats etc
• No municipal «ownership» – others can get «our» money
• City budget proposal for 2013 - 40% !
– Industry share holders can sell their share with 3 months notice (Oct 1st)
Pro’s and con’s
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• Constant flow of information– Close cooperation with industry
• Leads, feed back, reporting
– Close relations with city officials and politicians• Reporting, common projects, constant follow up
Conditions for success
51st ICCA Congress
International Congress and Convention Association.
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Session sponsored by:
Thank you!
51st ICCA Congress
International Congress and Convention Association.
Twitter: #ICCA12
Session sponsored by:
Models for Structuring CityConvention Bureaux and Other Marketing Organizations
Alice AuDirector of Sales, International Meetings & EventsTourism Toronto – Toronto Convention and Visitors Association
International Congress and Convention Association.
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Alice AuDirector of Sales,
International Meetings & Events
Tourism Toronto – Toronto Convention and Visitors Association
International Congress and Convention Association.
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Located on the shores of Lake OntarioMajor air travel hub to Canada & the US
Population:5.5 million in Greater Toronto Region
Annual visitors:26 million
Economic Impact: $4.4 Billion
TORONTO, ONTARIO, CANADA
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• 1926 – Toronto Convention & Tourist Bureau was formed as a not-for-profit co-operative marketing/sales & visitor services organization by the Hotel Association of Toronto and the Toronto Board of Trade
• Initial Funding Model – Public/Private • City provided grants to TT for destination
marketing services ($600,000) • TT staff of (3)
History and Funding
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• 1986 – TT incorporated as a non-profit association as the Metro Toronto Convention & Visitors Association (known as Tourism Toronto) representing 750 member organizations
• 1988 - City of Toronto grant reached a high of $10M
• 1995-2000, grant level diminished from $6.17M to $4.50M
History and Funding
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• 1998 – Amalgamation of the City of Toronto with 5 boroughs resulted in MTCVA’s name change to the Toronto Convention & Visitors Association (TVCA or Tourism Toronto)
• TT charged to market the entire Greater Toronto region
Tourism Toronto Name Change
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Tourism Toronto reconfirmed our mandate:•Destination Marketing Services •Advertising, promotion & media service•Visitor information•Market Research
Role of Tourism Toronto
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• Report to 42 member Board of Directors, including 7 members of City Council / Mayor served as Honorary Chair
• Performance measures determine funding commitments each year
• Annual Marketing & Business Plan submission to City Council
• Semi-annual briefing by TT’s President to Council on the state of tourism industry
• Annual audited statement by chartered accountant to City’s standards & practices
Former Governance
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• Early 2003 - Due to the SARS pandemic that spread from HK to 37 countries, Toronto’s business & tourism industry badly affected with massive layoffs in hotel sector
• End of 2003, the City ceased to provide financial grants to Tourism Toronto
• Tourism Toronto and the GTHA rallied support of the hotel community – agreed to establish the DMF – destination marketing fee (3% room levy) collected by the GTHA
Disaster Management
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• DMF agreement renewable every 3 years• TT became 100% funded by industry
(private sector) 90% of which comes from DMF / Balance from fixed rate membership dues per category
• TT’s budget increased to $25M - Major restructuring & increased staff to 55
• TT maximized financial contributions from & partnerships with private sector to cover cost of co-operative marketing activities
Private Sector Funding Support
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• By end of 2004, TT had a staff of 70 focusing on business development from all markets and worked towards recovery for the damage done to the convention and tourism industry
• Much effort put into marketing and media relations to manage desired outcome of an enhanced public perspective of our multicultural city
Deployment of Marketing Efforts
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• In July 2010, the Provincial Government amalgamated the tax system to Harmonized Sales Tax (HST 13%)
• DMF ceased to exist as the Province took ownership of the DMF and controlled the funding to TT
• TT’s funding returned to (Public/Private) Government (92% - $28.5M out of a budget of $31M) / Industry (8% or $2.5M)
Return to Public / Private Funding
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• Tourism Toronto has a membership of over 1200 members from the hospitality & tourism-related organizations
• HQ’d in Toronto with offices in Mississauga, Ottawa, Chicago & Washington DC
• TT’s Partners include the Greater Toronto Hotel Association, City of Toronto, Ontario Ministry of Tourism & Culture, Canadian Tourism Commission, City of Mississauga, City of Brampton, Air Canada & Via Rail
Public/Private Sector Partnership
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• Staff of 80 reports to a 22 member Board of Directors drawn from broad spectrum of Greater Toronto’s tourism industry, Municipal & Provincial Government
• Focus on driving business tourism, conventions, special events and leisure trade sales
• Extensive consumer marketing campaigns and media relations program in key cities
to drive visitors to our urban escape
Tourism Toronto’s Current Structure
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Organizational Chart Tourism Toronto Team Deployment 2012
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• Quarterly sales advisory committee meetings with our hotels and convention centres help us assess the need periods and in turn direct our sales focus to meet the targeted needs
• In 2011, the MC&IT sales team secured 526,554 total room-nights in future bookings, with a projected direct visitor spend of approximately $326 million which will support 242,000 jobs in our hospitality & related industry
MC&IT Sales & Measurement
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CON’s •Unpredictable funding support from the Government impedes long term planningPRO’s •Creates ongoing communication channel between the bureau and the hospitality community and encourage partnership to build towards mutual success
Pro’s & Con’s with our funding model
51st ICCA Congress
International Congress and Convention Association.
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Session sponsored by:
Thank you!
51st ICCA Congress
International Congress and Convention Association.
Twitter: #ICCA12
Session sponsored by:
Models for Structuring CityConvention Bureaux and Other Marketing Organizations
Ho Yoke PingGeneral Manager Sales & MarketingMalaysia Convention & Exhibition Bureau (MyCEB)
International Congress and Convention Association.
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Presented by:Ho Yoke PingGeneral Manager Sales & Marketing
Malaysia Convention & Exhibition Bureau (MyCEB)
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Malaysia Events Strategy
Achieve developed nation status by 2020Business & Major Events recognised as high yield and high profile market segmentsBusiness Events: RM3.9 billion incremental GNI and provide 16,700 jobsMajor Events: RM0.4 billion incremental GNI providing 8,000 jobs
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MyCEB
Not for profit company limited by guarantee
Established 2009 under Ministry of Tourism
International Events Unit established in January 2011
Conduit between government and industry
Focus on high yield international business events
sector currently worth RM17 billion to Malaysian economy.
36
International Congress and Convention Association.
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Measurement Tools
Percentage of business tourism arrivals
Value of Business Secured: no. events, delegates, delegate days, visitor expenditure, economic impact
Value of Assisted Business
Business conversion rates
Client and stakeholder satisfaction
Benchmarking : ICCA, UIA, UFI, DMAI
Delegate Surveys: expenditure, satisfaction, profile, length of stay
37
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Our KPIs
Business Events (meetings, conventions, incentives, exhibitions)
Increase international business tourists from 5% to 8% of total number of tourists (from 1.2m to 2.9m) by 2020
International Events (sports, arts, culture and lifestyle events)
210,000 spectators by 2020 70,000 overseas spectators by 20203 international events per annum by 2020
38
International Congress and Convention Association.
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MyCEB Structure
Board
CEO
Corporate Business Events
Employees (45)Industry Partners (200)
Business Development Event Marketing Event Support
Meetings, Conventions, Incentives, Exhibitions
International Events Sports, Arts
Culture, Lifestyle
Business Development Sales (bids) Event Support
Government & Industry Relations Industry Services Marketing Services Media Relations Finance & Admin
Government Industry
39
Ministry of Tourism
Prime Ministers Office [Pemandu]
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Vision, Mission & Goals
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Vision, Mission & Goals
To maximise yield from Business EventsOnce Malaysia has secured events we want to
MAXIMISE …
– Delegate attendance
– Length of stay
– Local expenditure
– International profile & publicity
– B2B opportunities (promotion of local innovation & expertise)
– Legacy (ongoing benefits)
– Dispersal of business across Malaysia
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Roles & Functions
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Roles & Functions
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Roles & Functions
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Subvention
Provision of financial & non financial support to attract international business & major events that generate high ROI for Malaysia.
Home grown events with potential to attract international attendees and publicity
Based on economic assessment: direct and indirect benefits
Subject to MOU outlining mutual obligations, conditions of support and support schedule
MOU
•Performance
outcomes
• Mutual
obligations
•Support
Schedule
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Industry Partner Progamme
To foster industry support and collaboration in the promotion of Malaysia as a business events destination internationally
Over 200 Industry Partners
Membership fees to be introduced
Cooperative Sales and Marketing Opportunities Trade shows, roadshows Marketing collaterals Media programme Online sales leads / RFPs / referrals
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International Events
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Malaysia’s Events Strategy
48
PROS CONS
Business & major events specialists & focus Dependence on government support
Direct link to Government Economic Growth Strategy
Some overlap of roles between National and State
Semi autonomous > able to use private sector models
Focus on medium to long term business development
Common skill set between Business Events and International Events – shared resources
National body (unbiased) – client centric, national continuity
Conduit btw Government & Industry
Direct report/access to senior Minister
51st ICCA Congress
International Congress and Convention Association.
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Session sponsored by:
Thank you!
International Congress and Convention Association.
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How to attract (more) business
when funding from public and
private stakeholders are being
reduced?
Discussion: Funding
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How to manage interests and
inputs from various local
stakeholders (public and private)
with different agendas and
opinions?
Discussion: Partnership models
International Congress and Convention Association.
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How to measure, document and
communicate ‘Return On
Investment’ to local stakeholders
(public and private) to create
support and buy-in?
Discussion: Proving ROI
51st ICCA Congress
International Congress and Convention Association.
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