models for structuring city convention bureaux and other marketing organizations (part 5) #icca12...

51st ICCA Congress

International Congress and Convention Association.

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Session sponsored by:

Models for Structuring CityConvention Bureaux and

Other Marketing Organizations


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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


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Models for Structuring CityConvention Bureaux and Other Marketing Organizations

Anne Wallin RødvenConvention DirectorVisitOslo


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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


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Thank you!

51st ICCA Congress


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Alice AuDirector of Sales, International Meetings & EventsTourism Toronto – Toronto Convention and Visitors Association


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Alice AuDirector of Sales,

International Meetings & Events

Tourism Toronto – Toronto Convention and Visitors 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

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Thank you!

51st ICCA Congress


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Ho Yoke PingGeneral Manager Sales & MarketingMalaysia Convention & Exhibition Bureau (MyCEB)


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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


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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

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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

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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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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

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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

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Thank you!


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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


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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


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• Thank you for attending!

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models for structuring city convention bureaux and other marketing organizations (part 5) #icca12...

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