Melbourne Convention + Visitors Bureau Representative Office Europe Janet Sealy Partnership

1. Melbourne Convention + Visitors BureauRepresentative Office EuropeJanet Sealy Partnership September 2008

2. European Market • Geography lesson • EU and Non EU • Macro Trends • Economic Trends • Market Segments • Activities

3. Europe • Population – 731 million • Around 50 Countries • High concentration of International NGOs / IGOs & multinational corporations • Major financial centres – Switzerland • Links with Australia

4. Markets EU and Non EU • European Union • 23 Official Languages • Traditional markets – Western Europe • Emerging markets – Russia, Accession states (A8) • Switzerland not members • Turkey and Serbia applying

6. Macro / Global trends • Credit Crunch • Green issues • Oil price – Flights • Security / Political issues

7. Economic Trends • Economical downturn in Europe with the British economy closely following the US. • Brits are living beyond their means, no savings and falling houses prices. • GBP weak against the Euro but predicted to strengthen 7% as the rest of Europe goes into recession.

8. Economic Trends • UK is predicted to hit recession last quarter of 2008 and will last all of 2009 and possibly longer. • Germany is still doing fairly well, but is set to slow down next year. • Spain is close to a recession. • Russia, Poland and the Czech Republic are all emerging markets.

9. Market Segmentsof the Business Events Sector • International Associations / NGO’s • IGO’s • Corporate Meeting Planners • Intermediaries • Incentives • Exhibition & other Business Events

10. International Association Market

11. Target Market - Associations Sales approach – • Relationship-building essential – gain trust of the international association executive in order to obtain all possible information as early as possible, in order to gain competitive advantage • Soft-sell approach – this market sector often reacts negatively to approaches from commercial entities • Twin-track sales approach – critically importance of establishing relationships with local counterparts to foster interest in bidding to host international meetings e.g. Ambassador Programme.

12. IGO’s • UN Convention on Climate Change • World Forestry • Need for state and federal support

13. Market Profile – Associations • Meeting sizes 50 - 7000+ delegates • 14% <100 delegates • 70% 100-1000 delegates • 17% 1000+ delegates • Average stay 4 nights • Long planning cycle • Preferred meeting dates – • March-May, July, September-November

14. Statistics • Statistics on the International Association market as those published by the UIA – Union of International Associations for 2007 • 100 year old research and academic organisation based in Brussels • Trends on international meetings for 50 years

15. Distribution of NGO Headquarters • Europe is home to around 60% of the world’s NGOs Source: UIA as at 01/02/2007

16. International Associations - Market Trends • Increasing competition from Europe, Middle East, Asia and Latin America • Associations merging/reorganising meeting patterns – more smaller meetings • CSR and environmental concerns • Increasing role of intermediaries – core PCOs, venue finding agencies etc

17. 2006 International Meetings by Continent Of 8,953 international meetings held in 2006: • Very slow continuing trend towards destinations outside Europe and the USA, e.g. Asia and South America Source: UIA Statistics 2007

18. Market Trends - Association

19. Major Core PCOs

20. Bid involvement JSP has played a role in developing, bidding and delegate boosting for the following international meetings recently booked for Melbourne:- 2010 International Congress of Internal Medicine International Congress of Applied Psychology International Congress of Parasitology International Union of Biochemistry & Molecular Biology 2011 International Botanical Congress General Assembly of the International Union of Geodesy and Geophysics 2012 Congress of the International Federation of Home Economics 2013 International Congress of Pediatrics IEEE International Geoscience and Remote Sensing Symposium International Council of Nurses 25th Quadrennial Congress 2014 International Conference on Low Vision 20

21. Corporate Meetings Market Trends • Influence of procurement departments • CSR • Brand loyalty: Preferred venues and suppliers • Shorter lead times – many now less than 3 months • Increasing involvement of agents/intermediaries • Decision makers – CEO etc on recommendation

22. Corporate Events • According to the 2007 MIA Survey, there has been a 27% increase in the volume of events for UK Corporates • Annual Budgets have reduced by 4.5% due to greater involvement of corporate procurement departments • 77% of corporates think CSR will influence their event planning over the next 10 years • UK and Germany are still strongest in this sector • Spain & Czech Republic are sending RFPs

23. Exhibitions • Market driven • Cost conscious • UK/German based organisers looking for specialist and niche events • The MEC is a great exhibition venue but with a very full diary

24. Incentives: Trends and figures • Heavy consolidation of agencies across Europe • Clients are still demanding more and more for their money • Need to demonstrate ROI and value • Budgets have stayed the same as last year • Average budget per person for conferences/meetings is AUD$1,560 • Average budget per person for incentive trips is AUD$3,219 • Average duration of a long haul trip from Europe is 4 nights – hence market much smaller than from Asia etc. Source: Tourism Australia

25. SITE Pan European Report • SITE Pan European Report on Incentive Market (Dec. 2007) in conjunction with IMEX • Covered 15 Countries across Europe incl Scandinavia and Russia • Annual survey • High level participants with decision making ability

26. Incentive – Major factors affecting destination selection

27. Relevance of Macro/Global Issues - Incentives • Climate change was not seen as likely to reduce incentive travel – yet… • Many incentives now include a CSR element eg a social action project such as tree planting or digging wells in Africa • Multiculturalism may result in avoidance of countries where cultural values are seen as “too rigid”.

28. Environmental / CSR Trends Source: Conference & Incentive Travel Magazine, Nov07 via Tourism Australia

29. Incentive Types by Popularity There has also been a significant increase in the number of “meet-centives” over the past year.

30. What we do • Tele-marketing, direct mail & personal visits • Liaison with DIIRD, Tourism Australia, ANZCC, TV, other industry partners e.g. QF, Emirates other airlines • Attendance at bids and Delegate boosting • Trade Shows and Industry Meetings • PR – Trade journals • BestCities promotions • Think Melbourne Luncheons and other promotions

31. Major Trade Shows and Events • MPI PEC London 18-20 April 2008 • UIA Associates Meeting October 2008 • AEO Conference UK October 2008 • EIBTM Barcelona 2-4 December 2008 • IMEX Frankfurt 22-24 May 2009

32. Working together for Melbourne • Team Effort – major international bids • All RFPs and enquiries channelled through the team in Melbourne • Online data base

33. The Future • Brilliant infrastructure • New Centre • Increased capacity • Air Access • Cyclical business • More competition • New Strategies 33

34. Melbourne Convention + Visitors Bureau North American Market Mondotels September 2008

35. Sales Team NYC ChicagoTampa, Florida

36. Marketing Team

37. $ 14 Trillion + 9.2% USA Economy

38. Value of US $ ?? USA Economy

39. Euro USA Economy Yen US$

40. US $ = AU $ USA Economy

41. John McCain BarackObama USA Economy Decision November 4th

42. Air Service to Australia 173 flights per week from USA A-380 Qantas Virgin Australia: December 15

43. Market Segments A C 3rd I Associations Corporate Incentives 3rd Party • specialisedneeds • decision style • varying spend customisedsales approach

44. North American Meeting Market 2007= $103 Billion Corporate + Incentive $30.2b billion Other Assoc. Meetings $38.1 billion Association Conventions $34.6 billion

45. North American Meeting Market Corporate + Incentives 1.1million events Other Assoc. Meetings 227,000 events Association Conventions 13,700 events

46. International Associations 6,435 events rotate Source: ICCA

47. Local support • CVB leadership • Facilities • Affordability • Safety • Accessibility Associations

48. Expand global membership • Less-affected by economic + political issues • Reliable • October November April September • Medical Technology Sciences Associations

49. How to Reach Association Buyers 24% of rotating have HQ in North America 22,000 members 48% are CEOs 2,500+ buyers 50% plan outside USA Association membership growing

50. Melbourne Activity in North America Daily Sales Solicitation Association Market