canberra convention bureau final... · being opportunistic, canberra can benefit from temporary...

Canberra Convention Bureau

ACT pre-election policy position paper 20 April 2012

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Canberra Convention Bureau ACT pre-election policy position paper

Contents

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2 Investing in the Business Events Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.1 Market Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 Issues and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.1 Increasing Canberra’s capacity to host large-scale business events . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.2 Increasing the number of business and sporting events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3 Improve the visitor experience and enhance Canberra’s image . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

4 Summary of Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

5 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

6 Attachments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

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1 Introduction

The Canberra Convention Bureau (the Bureau) was formed in 1982 as a not-for-profit association. It was established as a joint funding initiative between industry and government and has a charter to promote the Canberra region as a business events1 destination.

In line with this charter, the Bureau is focussed on showing the world how great our city is in the best way it knows how: by increasing the number of national and international business events held in the capital.

To achieve this goal, we use our talents, knowledge, networks and enthusiasm to invite organisations from around the nation – and the world – to Australia’s “meeting place”. We encourage great minds to join Canberra’s own remarkable intellectual capacity to form new partnerships, exchange ideas and culture, and advance the knowledge economy. We strive to change perceptions and raise expectations of Canberra by showcasing the city and leveraging success to help it reach its potential as one of the world’s great capitals.

Unfortunately, despite all that our great city has to offer, Canberra is faced with a number of obstacles that impact on the city reaching its potential as Australia’s national capital and a city that is liveable, sustainable and economically robust.

This document outlines the Bureau’s recommendations to address obstacles and barriers. It also highlights opportunities to enhance Canberra’s image, improve the visitor economy and experience, and manage risks in the business events sector.

1 Business events are defined as any public or private activity consisting of a minimum of 15 persons with a common

interest or vocation, held in a specific venue or venues, and hosted by an organisation (or organisations). This may

include (but not limited to): conferences, conventions, symposia, congresses, incentive group events, marketing

events, special celebrations, seminar, courses, public or trade shows, product launches, exhibitions, company general

meetings, corporate retreats, study tours or training programs. (Business Events Council of Australia)

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2 Investing in the Business Events Sector

Business events are worth investing in, with the sector being one of the highest yielding sectors of the visitor economy. Business visitors spend more per night than leisure visitors; they often extend their travel; and they are likely to return for a holiday2. Furthermore, while leisure tourism remains flat, international business travel has recently increased by 6% – with further growth forecast – and the potential for overnight expenditure of visitor delegates is set to double by 20203.

The business events sector offers considerable flow-on benefits beyond the direct measureable economic impact. Benefits for the host destination include knowledge transfer, access to leaders in global research and innovation, plus opportunities for business growth and the showcasing of expertise4. By bringing great minds and world-renowned leaders to the national capital, the city enhances its profile as a research and knowledge hub; by bringing in business visitors and their guests Canberra enhances its reputation as a tourist destination; and by being opportunistic, Canberra can benefit from temporary gaps in the market to its long-term advantage.

Another benefit of business events, specifically for Canberra, is that they highlight that many of the large and small decisions about Australia’s future are made by political leaders and officals, in the national capital. In other words Canberra is effectively the head office of Australia.

In addition, the business events sector is less susceptible to short-term changes in economic conditions. This is due to the long-term nature of business events and the ongoing need for businesses and organisations to maintain meetings to create competitive advantage, foster open innovation and use as a revenue-generating form of member communication.

2 Australian Associations Project, “2012–2017 Strategic Plan for growing the Australian association convention

market”, p.6.

3 Business Events Australia, “2020 Tourism Industry Potential…. The Business Events Sector”; Tourism Research

Australia, National Visitor Survey and International Visitor Survey, March Quarter 2012.

4 Australian Associations Project, “2012–2017 Strategic Plan for growing the Australian association convention

market”, p.6.

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2.1 Market Update

The National Visitor Survey (NVS) figures released on 14 March 2012 shows a decline in Holiday and Visiting Friends and Relatives (VFR) overnight visitors and visitor nights for the ACT.

Although leisure travel figures are down in the ACT, business figures are up in line with an increase in the average size conference won for Canberra by the Canberra Convention Bureau.

Growth in travel for the purpose of business in overnight visitors is 1% and growth in visitor nights is 13%. This suggests a significant increase in multiple night stays, with a significant proportion likely to be conference and meeting related.

Domestic visitors year ending 31 December 2011

Purpose of visit

Holiday VFR Business Other

ACT o/night Visitors (people) 28% 34% 31% 7%

ACT visitor nights (room nights)

26% 38% 31% 5%

Day visitors (day only) 39% 24% 18% 19%

Source: National Visitor Survey, Tourism Research Australia, YE December 2011

Change in tourism year ending 31 December 2011 compared to 2009 and 2010

Purpose of visit

Year ending December

2009


2010


2011

% change

2009–10

% change

2010–11

Overnight visitors

Holiday 534 761 509 43% –33%

VFR 506 634 616 5% –3%

Business 493 540 545 10% 1%

Other 103 126 121 22% –4%

Total 1728 2064 1786 19% –16%

Visitor Nights

Holiday 1475 1799 1296 22% –28%

VFR 1836 2062 1902 12% –8%

Business 1036 1350 1523 30% 13%

Other 295 345 252 17% –27%

Total 4649 5574 4974 20% –11%

Source: National Visitor Survey, Tourism Research Australia, YE December 2011

Note: The figures for business travel do not distinguish between delegates attending business events (defined as events of 15 people or more) and independent business travellers .

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3 Issues and Recommendations

With the aim of putting Canberra in the best possible position to reach its full potential as the national capital, the Canberra Convention Bureau calls for the development of a comprehensive strategy for Canberra to grow its visitor economy and enhance Canberra’s image. The Bureau is naturally willing to contribute to the development and coordinated achievement of this strategy through its own work and through ongoing collaboration with Australian Capital Tourism.

This strategy would encompass a wide range of issues and activities, and needs to be reflected in any future development of Canberra’s brand and infrastructure. Resourcing for delivery of this strategy is also critical. We have limited this submission to those areas that are of most relevance to the Bureau and its stakeholders. As part of the larger umbrella strategy, the Bureau recommends a focus on:

» Increasing Canberra’s capacity to host large-scale international business and government events;

» Increasing the number of business and sporting events hosted in Canberra; and

» Improving the visitor experience and enhancing Canberra’s image.

RECOMMENDATION 1: The development of a comprehensive strategy for Canberra to grow the visitor economy and enhance Canberra’s image and capacity; and the allocation of appropriate resourcing to deliver this strategy.

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3.1 Increasing Canberra’s capacity to host large-scale business events

When it was announced that Australia will be hosting the G20 in 2014 Canberra’s deficiencies in hosting large-scale events were highlighted. While a number of state capitals are vying to host the prestigious G20 Leaders’ Summit, the Canberra By Comparison Report5 (commissioned by the ACT Government and prepared by the Canberra Convention Bureau) found that Canberra only has the capacity to host smaller associated events. Compared to other international host destinations of a similar population size, Canberra falls well short of the infrastructure investment needed to be considered for any large-scale events.

A second report, Major Australian Convention Centres: Comparison Report6, provided an overview of the major Australian Convention Centres compared to the National Convention Centre Canberra and highlighted that a greater level of investment and development has been made by Canberra’s competitors.

The Australia Forum

The Australia Forum’s vision is to be “a world-class institution that caters for significant meetings, dialogue, cultural events, and other occasions of national importance appropriately held in Australia’s capital”. This will include Government events requiring a high level of security.

Canberra’s inability to host the G20 Leaders’ Summit and the investment in high-level convention facilities in other cities around Australia stresses the need to accelerate the Australia Forum project. The Bureau urges that the planned investigation into financing options for the project be undertaken simultaneously with the West Basin planning and development currently being commissioned. Finances and ownership options should take into consideration the role that the new facility could have for hosting important events for the Australian Government. Postponing the investigation into the Australia Forum financing options will unnecessarily slow the progress of this infrastructure imperative.

RECOMMENDATION 2: Accelerate the progress of the Australia Forum planning and development and simultaneously investigate options for financing and ownership of this development.

Accommodation Supply

While the ongoing development of low cost tourist accommodation in Canberra is both necessary and commendable, there is also an urgent need for additional upscale accommodation required by many conference delegates. Such an investment is crucial if Canberra is to be in a position to host large-scale international business and government events.

5 Canberra Convention Bureau, “Canberra by Comparison: The capital’s ability to host the G20 and other major

international events”, November 2011.

6 Canberra Convention Bureau, “Major Australian Convention Centres: Comparison Report”, February 2012.

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Cities vying to host the G20 Leaders’ Summit in 2014 are required by the Department of Prime Minister and Cabinet to undertake a facilities audit to demonstrate their capacity to host the event. Although Canberra is not bidding to host the Leaders’ Summit, the Bureau believes it would be worthwhile to undertake a similar audit so that gaps in our current infrastructure and facilities can be identified and addressed.

RECOMMENDATION 3: Conduct an inventory and gap analysis on Canberra’s capacity to host high-level international government meetings, like the G20 Leaders’ Summit, and use the findings to plan for increased capacity in the future.

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3.2 Increasing the number of business and sporting events

With Australia hosting the G20 in 2014 and the uncertainty surrounding details of the Sydney International Convention, Entertainment and Exhibition Precinct development (including the forecast closure of the current Sydney facility from November 2013), it is vital that Canberra leverages the opportunities presented by these developments to increase its international and national visibility.

Competing with new convention centres

In recognition of the increasing competition and value of the business events sector, Sydney and Adelaide (two of Canberra’s main event competitors) are investing significantly in their convention infrastructure. Once complete, these new developments will provide additional challenges for Canberra in attracting business events, but with strategic planning and appropriate resourcing, it may be possible to take advantage of those city’s convention downtimes in the short to medium terms, and in doing so limit the negative impacts in the longer term

Sydney: The NSW Government is supporting Sydney’s business events industry by investing $2 billion – $3 billion to develop a new convention, entertainment and exhibition precinct for the city. Due for completion in late 2016, the project will likely involve the decommissioning of the current centre so the new centre can take advantage of the existing Darling Harbour site.

The current Sydney facility has been instructed not to take new bookings beyond 2013 and uncertainty associated with the new facility will likely preclude some conference organisers from committing to holding their event in an as yet unfinished venue. These circumstances provide an opportunity for Canberra to attract events that may have otherwise gone to Sydney.

As a result of the new precinct opening for business it is likely that Canberra will see a drop in business in 2016–2018. To insure against this, the Bureau again emphasises the need for greater investment in Canberra’s infrastructure now – particularly the Australia Forum and high-level accommodation – and the establishment of a stronger market-base. If these are prioritised while Sydney has limited capacity, Canberra is more likely to limit the negative impacts associated with competing with the new Sydney exhibition precinct beyond 2016.

Adelaide: The South Australian Government has committed $350 million for the re-development of the Adelaide Convention Centre. On completion of the re-vamped facility, Adelaide will have an extremely attractive and competitive facility. However, constraints on recurrent government expenditure precluded it from committing to increased marketing funds to support the investment.

Adelaide will also face uncertainty and disruptions associated with the construction of the new venue. So, while the new facility in Adelaide will no doubt be an attractive option for conference organisers once complete, if we are strategic in our marketing and business development activities during Adelaide’s development, Canberra is more likely to attract a greater share of the business events market during Adelaide’s downtime and beyond.

Sporting Events

The Bureau has demonstrated that its bidding strategies work well for sporting events, as evidenced by producing recent successful bids for the Hockey Masters Games 2011, Pan Hellenic Games 2013, the Australian Masters Rowing Championships 2013 and more.

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Sporting tournaments regularly include social programs such as cocktail parties, gala dinners and visits to attractions. They also utilise a range of accommodation options and existing sporting facilities, and may overlap with the business events industry via related conferences, seminars or coaching clinics.

Canberra is well placed to attract even more sporting tournaments to the city. There is currently an upward trend in organised sports participation7 to be taken advantage of, and bringing more sport to the capital is in line with the goals set out in ACTIVE 2020. Canberra already has excellent facilities across a wide range of sports and putting them to greater, higher profile use would help create Canberra’s image as the ‘National Sporting Capital’8.

Canberra has the capacity to host a range of sporting events, including:

» One-off events: single sport events that run nationally on a cyclical basis, and are unlikely to be repeated in Canberra over consecutive years;

» Annual events: single sport events with the potential to be held every year in Canberra;

» National major events: multi-sport events that cater for approximately 2,000 to 20,000 participants, and that are generally bid for on a National basis e.g. University Games, Pan Hellenic Games, Australian Masters Games; and

» Locally generated major events: events that are devised, run, administered, unique to, and permanently based in Canberra e.g. a biennial ‘National Capital Masters Challenge’ (bidding for local events is not required and would be replaced by event scoping and planning).

The benefits of bringing more sporting events to Canberra include:

» Increased occupancy of hotels in traditional low occupancy periods, such as Friday – Sunday nights and, importantly, supporting new midscale accommodation being developed in Canberra;

» Greater utilisation and leveraging of Canberra’s existing, high-quality sports venues; and

» Increased visitor numbers and associated inbound revenue, positively impacting on the ACT economy and local sporting organisations through increased revenue.

To facilitate more sporting events, the Bureau recommends that a comprehensive listing of all government and private sporting facilities be undertaken.

RECOMMENDATION 4: Conduct an inventory analysis for sporting facilities in the ACT and surrounds with the potential for use of external sporting tournaments.

Bid Support Fund

While the Bureau promotes Canberra as a business events destination and works to attract business and sporting events to Canberra, there is increasing competition from other destinations through government incentives to attract events (often referred to as subvention).

7 Australian Sports Commission, ‘Participation in Exercise, Recreation and Sport: 2010 Annual Report’

8 ACTIVE 2020: A Strategic Plan for Sport and Active Recreation in the ACT & Region 2011–2020

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The Bureau recommends the establishment of a Bid Support Fund to assist in attracting business and sporting events to Canberra. It is suggested that this fund, guided by specified criteria, would provide up to $30,000 per selected event for three events per year.

RECOMMENDATION 5: Establish a Bid Fund to support bids for business and sporting events of up to $90,000 p.a. with a maximum of $30,000 per event.

Increase Bureau Funding

To address the issues above and increase the number of business and sporting events coming to Canberra, government funding of the Canberra Convention Bureau should be increased. Further details on the benefits of attracting events to Canberra, as well as details of the funding required is set out in the Bureau’s 2012–2013 Budget Submission (Attachment 1).

RECOMMENDATION 6: Increase Bureau funding in response to increasing competition, increasing potential for business visitation compared to leisure travel and to leverage new opportunities through the attraction of sporting events in line with the Bureau’s funding submission.

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3.3 Improve the visitor experience and enhance Canberra’s image

One of Canberra’s greatest challenges is addressing the perception that Canberra is a boring and lifeless city. The Bureau believes there is much we can do to ensure that visitor experiences are optimal and that Canberra is portrayed more than simply the home for political decisions.

Increase visible recreational and commerical activity around Lake Burley Griffin

Visitors to a national capital expect a vibrant and active city. While Lake Burley Griffin is an attraction we are proud of, when visitors see it underutilised it confirms their expectation of a boring and lifeless city.

The Bureau recommends that more commercial and recreational activities around the lake’s forshore be encouraged to add life and colour to the area. For example, seeing groups of people zipping around the lake on Segways has been a welcome and positive addition, and for this reason the Bureau has recommended the use of Segways be extended. (Please see the Bureau’s response to the Segway Discussion Paper for more details - Attachment 2).

RECOMMENDATION 7: Increase visible recreational and commercial activity around Lake Burley Griffin.

Conduct familiarisation tours for politicians, the diplomatic corps and members of the

Parliamentary Press Gallery

In an effort to improve Canberra’s image, it is important to influence those who are part of that image-making. Media reports generally refer to political decisions as decisions made by Canberra. We are proud that federal politicians meet here and that Canberra is a place where big decisions are made. However, when these decisions are seen as negative or controversial, it has a negative impact on Canberra’s image and the way people perceive our city.

The Bureau recommends that regular familiarisations for politicians, diplomats and members of the Parliamentary Press Gallery be undertaken. These image-makers are then less likely to convey only negative messages and may even become ambassadors for the national capital.

RECOMMENDATION 8: Fund and conduct familiarisation tours for politicians, the diplomatic corps and members of the Parliamentary Press Gallery.

Transport

Efficient and effective transport options are crucial for Canberra’s ongoing development, its economy, and to support the activities of both residents and visitors. Transport options need to provide for movement in and out of Canberra, as well as around the city, particularly in allowing people to move between meetings, venues, hotels, attractions, the city and airport.

International air services: The Bureau looks forward to the introduction of international air services to Canberra and sees this as critical to Canberra’s role as the national capital, and as

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an events destination. It is also important for Canberra to continue to operate in a curfew free environment.

High-speed rail: Research indicates that high-speed rail is a viable option for Australia’s eastern seaboard. Connecting Canberra to the major state capitals will increase access and no doubt boost business and leisure tourism.

Public transport: Public transport within Canberra continues to need improvement so that residents and visitors can use the service more effectively and comfortably. The Bureau encourages the ongoing investigations into the introduction of the rapid public transport with the completion of a feasibility study and proposal.

Private transport: Not only do taxis need to be reliable and in sufficient supply, but the service provided by taxi drivers is also important. Taxi drivers are often the first people a visitor meets when they arrive in Canberra. Working with taxi drivers to improve customer service levels and empower them to act as Ambassadors for Canberra will improve the transport experience and enhance Canberra’s image.

RECOMMENDATION 9: Improve transport services to and within Canberra by:

» supporting the introduction of international air services and maintaining a curfew free airport operation;

» advocating for high-speed rail between Sydney, Canberra and Melbourne;

» investigating the feasibility of a rapid public transport corridor; and

» working with taxi drivers to improve customer service and provide them with a greater knowledge of Canberra’s attributes.

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4 Summary of Recommendations

RECOMMENDATION 1: The development of a comprehensive strategy for Canberra to grow the visitor economy and enhance Canberra’s image and capacity; and the allocation of appropriate resourcing to deliver this strategy.

RECOMMENDATION 2: Accelerate the progress of the Australia Forum planning and development and simultaneously investigate options for financing and ownership of this development.

RECOMMENDATION 3: Conduct an inventory and gap analysis on Canberra’s capacity to host high-level international government meetings, like the G20 Leaders’ Summit, and use the findings to plan for increased capacity in the future.

RECOMMENDATION 4: Conduct an inventory analysis for sporting facilities in the ACT and surrounds with the potential for use of external sporting tournaments.

RECOMMENDATION 5: Establish a Bid Fund to support bids for business and sporting events of up to $90,000 p.a. with a maximum of $30,000 per event.

RECOMMENDATION 6: Increase Bureau funding in response to increasing competition, increasing potential for business visitation compared to leisure travel and to leverage new opportunities through the attraction of sporting events in line with the Bureau’s funding submission.

RECOMMENDATION 7: Increase visible recreational and commercial activity around lake Burley Griffin.

RECOMMENDATION 8: Fund and conduct familiarisation tours for politicians, the diplomatic corps and members of the Press Gallery.

RECOMMENDATION 9: Improve transport services to and within Canberra by:

» supporting the introduction of international air services and maintaining a curfew free airport operation;

» advocating for high-speed rail between Sydney, Canberra and Melbourne;

» investigating the feasibility of a rapid public transport corridor; and

» working with taxi drivers to improve customer service and provide them with a greater knowledge of Canberra’s attributes.

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5 References

ACTIVE 2020: A Strategic Plan for Sport and Active Recreation in the ACT & Region 2011–2020

Australian Associations Project, “2012–2017 Strategic Plan for growing the Australian association convention market”.

Australian Sports Commission, “Participation in Exercise, Recreation and Sport: 2010 Annual Report”.

Business Events Australia, “2020 Tourism Industry Potential…. The Business Events Sector”.

Canberra Convention Bureau, “Canberra by Comparison: The capital’s ability to host the G20 and other major international events”, November 2011.

Canberra Convention Bureau, “Major Australian Convention Centres: Comparison Report”, February 2012.

Tourism Reseach Australia, National Visitor Survey and International Visitor Survey, March Quarter 2012.

6 Attachments

1 . “Leveraging Opportunities to attract Business and Sport Events: A funding Submission to ACT Government by Canberra Convention Bureau”, February 2012

2 . Canberra Convention Bureau’s to a review of segway use and commercialisation in the Australian Capital Territory

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www.canberraconvention.com.au

[email protected]

+61 6247 7500

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