Business back but challenges remain

There’s new, high level recognition of the value of conferencing and incentives to the economy, and business is returning following the economic recession. However, the Rugby World Cup presents specific challenges and more consistency is needed on the environmental front.

These were the key points raised in a wide ranging debate at the inaugural SKYCITY Convene Auckland Breakfast Forum late April. Seven panelists representing various industry sectors spoke on current issues and developments.

Convention & Incentives New Zealand (CINZ) chairman Alan Trotter was upbeat, promising positive news before the year’s end regarding a national convention centre and expanded Christchurch Convention Centre.

He said CINZ has been talking to the Ministry of Economic Development regarding the need for increased convention centre capacity.

‘We have learned from the debacle around the cruise centre at the (Auckland) wharf. That debate was driven through the pages of the Herald, marked by uninformed comment, most of it politically driven. Our debate is taking place exactly where it should be.’

He said discussions were currently at a very sensitive stage focusing around where the developments should be and who should pay the likely $400 or $500 million investment required.

Also exciting Trotter was a joint marketing initiative between CINZ, Tourism New Zealand and Air New Zealand into the North American market. He said ‘Project Eagle’ would tour three cities in May aiming to drive outbound tourism from the United States and one of the targeted components was incentives.

‘We think the North American incentive market has come back and this (campaign) is probably one of the most exciting new initiatives we’ve seen in New Zealand for some time.

‘We are at the cusp of a new level of recognition of the conference and incentives industry in New Zealand,’ he said. ‘There is realisation now from a very senior cabinet level that we have to invest money into the industry, that there’s more out there than picking the low hanging fruit that is the summer leisure tourism market.’

Stu Robertson, The Orange Group	Alex O’Connor, Air New Zealand	Paul Walker, Convention Management New Zealand

Value

Conference business is coming back and while there is less concern about visibility corporates are looking for value for money, according to Air New Zealand’s Alex O’Connor.

Speaking from the floor Tania Adolphe, Tourism Marketing Solutions, called for a more creative approach for offering value. ‘Often venues come up with packages themselves, I think it would be good for venues to ask clients what they can do, every organisation is different.’

Also speaking from the floor Wayne Harris, GO Conference & Incentive Management, urged people to offer added value rather than the lowest price.

‘People are still looking for unique experiences and New Zealand fits that model absolutely impeccably. I have three clients in Australia and they come here for things New Zealanders take for granted. Have confidence in your product. We keep going for the cost angle, we need to look for the value angle.’

However a call for hotels and venues to offer free broadband met a negative response from Alison Rogers of Millennium Hotels. ‘Broadband is managed by an external company, we actually pay an extra cost for broadband, whereas giving away free canapés is an internal cost the hotel can afford.’

SKYCITY’s Richard Dodds agreed it was an increased cost but said the hotel was always willing to negotiate a broadband deal.

Green

Contentious debate focused around the industry’s environmental performance. CarbonNZero’s Sam Bridgeman said venues could save costs, offer more competitive rates and be more competitive internationally by taking measures to reduce the environmental impact of events.

He said New Zealand lagged behind countries such as Australia and Germany who provided website advice as to how an event can reduce its carbon footprint.

‘For New Zealand to remain competitive and to draw those international events, particularly as we promote ourselves as 100% Pure, we need to be doing more.’

Paul Walker, Convention Management Services and chair of the CINZ PCO group, was scathing about some venues who claimed to be ‘green’.

‘We ran a very large event out of one of Auckland’s larger venues. We took the trouble of separating bottles, plastic etc and that venue took those bins outside and crushed everything together.’

CarbonNZero’s Josephine Rudkin-Binks made a plea for venues to do the right thing, and not to risk damaging the reputation of the industry as a whole.

Alison Rogers felt people were looking for value for money first, and the carbon zero factor was running second.

Wayne Harris contended no potential client had asked him if there was a windmill on top of the hotel or whether they recycled rubbish. His main issue was the inability to get any quote from any airline more than 12 months ahead.

Paul Walker called for hotels to have better understanding of the industry’s needs. He said, ironically, 60% of registrations for this year’s New Zealand Hotel Conference, on May 13, had come in the last three weeks – and these from hoteliers.

‘The venues and hotels need to understand what PCOs are doing. Regularly we’ll book an event three years out, all the cancellation clauses are out there. The hotels need to understand things are being done, bookings being finalised, at the last minute. It’s a major challenge and I think we should start to work much closer together.’

However, panellists agreed one of the biggest, immediate challenges facing the industry was the Rugby World Cup.

The country is going to take off, but people should remember it’s only going to be in Auckland for two weeks and will affect future business, said panellist Stu Robertson, from The Orange Group. ‘Clients are focusing events around the Rugby World Cup and that’s going to mean a quieter Christmas.’

Paul Walker said the Rugby World Cup was creating more challenges than benefits. ‘Some venues are empty around those two weeks because they can’t get accommodation. I’d ask (hotels) to think about this, the Rugby World Cup is coming for one year and conference business is ongoing, year after year.’

‘Tis the season to go to trade shows and this year’s conference and incentive industry events look set to generate plenty of business. The ‘big one’ from a New Zealand stand point is MEETINGS 2010, being held in Auckland on June 23 and 24. Readers will find a full preview of the event, distributed with this copy of Meeting Newz.

Judging by events that have already been held, it would appear that New Zealand based conference, incentive and function organisers are ready to stage events again – rather than just think and talk about them. Convene Auckland 2010 had an increase in buyer numbers this year when compared to 2009, but the real change was that these visitors were (in many cases) keen to confirm bookings on the floor or just a few days later. The eXplore event held by Lake Taupo, Ruapehu and Hawke’s Bay was also deemed a big success and events such as the Canterbury Conferences and Events Expo to be held in August are starting to take shape.

What this means is that the industry at large needs to resist the temptation of thinking in recessionary mode and avoid cutting promotional activity ‘because it didn’t work last year.’ Sure, we’re not out of the woods yet and there are challenges ahead, but making negative rather than positive decisions will hand business to competitors on a platter.

 

Stu Freeman

Editor

Cocktails at Convene Auckland

Showcasing Best Spas

 

Best Spas of New Zealand held a function for media and industry partners at The Langham, Auckland recently. The four current members of Best Spas are Chuan Spa at The Langham, Auckland; the Spa at Millbrook, Queenstown; Polynesian Spa, Rotorua and Hanmer Springs, Hanmer. At the function (from left) Barbara Lobb and Laura Watcher, Polynesian Spa; and Sanna McCulloch, Magnetic Sout

Breaking ground at waterfront

Construction of Auckland’s latest waterfront landmark, the Viaduct Events Centre on the Halsey Wharf extension, commenced mid April with ‘the breaking of the ground’ by Auckland city councillor Greg Moyle.

With a construction budget of over $25million and an economic benefits value of $128million, the centre is due for completion in time for next year’s Rugby World Cup.

Bookings have already been accepted for pre-game functions through Rugby Travel & Hospitality. The centre will also host events presently held at the adjacent Alinghi Sheds such as Fashion Week and the Boat Show. The first confirmed booking was for the Auckland Art Fair in 2011.

‘The events centre bridges a gap for a period of time until a dedicated convention centre can be built,’ says Moyle.

‘It is the first project to start construction in the Wynyard Quarter area. This part of the waterfront will soon be a buzz of activity with Gateway Plaza, North Wharf and the interim pedestrian and cycle bridge, all to be completed in the next year or two.’

Hawkins Construction, which was awarded the contract to build the 6000m2 events centre, officially took over the site at the end of March to prepare for construction. The company is working to a fixed schedule to ensure that the building is completed by July next year.

The multi-purpose facility will offer flexible exhibition, meeting and hospitality space. It will have 6000 sqm of event space and will be able to accommodate 3600 people.

 

Artist’s impression of the Viaduct Events Centre, opening in Auckland next year

 

From left, Auckland city councillor Greg Moyle, Craig Furlong, Viaduct Events Centre and Gordon Moller, Moller Architects

 

Councillor Greg Moyle ‘breaks the ground’ for the new Viaduct Events Centre

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Latest results CAP off success

The programme designed to assist New Zealand associations and other organisations to bid for international conferences continues to pay big dividends. In the financial year commencing July 1 2009 a total of 24 bids with an assessed economic value of $133 million has been processed.

The initiative is marketed as the Conventions & Incentives New Zealand (CINZ) Conference Assistance Programme and is run by CINZ with funding provided directly from the Ministry of Economic Development, via the Major Events Programme.

‘To say it has been a highly successful campaign is probably somewhat of an understatement,’ says CINZ international bids manager Richard Buchanan.

‘Of all bids processed the current hit rate for successful bids is around 70%, producing an economic value of around $285 million. During this period the total funding provided by The Ministry of Economic Development has been around $2 million, not a bad return in anyone’s money ($142 return for every $1.00 dollar invested by the Ministry).

‘If we are not successful the first time round, we will encourage the client to bid again, as the second effort more than likely will produce the result we are looking for.’

Buchanan says a prime example of this was the World Small Animal Veterinarian Conference, set to attract 2000 participants to Christchurch in 2013. This was a ‘re-bid’ after the first bid was made in 2006–7 for 2011.

Successful conferences recently bid for and won under the scheme include:

• The World Small Animal Veterinarian Conference (2000 participants) Christchurch 2013 (re-bid – first bid in the 2006/2007 year for 2011)

• Agricultural Biotechnology Congress (850 participants) Christchurch 2012

• American Travel Writers Conference (500 participants) Wellington 2011

• International Cardio Anaesthesiology Congress (450 participants) Auckland 2012

• International Conservation Biology Congress (1200 participants) Christchurch 2011

• IOPC Administration Professionals Conference (600 participants) Auckland 2011

• AACA Anaesthesiologists Congress (1500 participants) Auckland 2014

• AOORL Head and Neck Surgery Congress (1700 participants) Auckland 2011

• IRAC Reading Congress (800 participants) Auckland 2010

• Congress on Paediatric Oncology (1700 participants) Auckland 2011

‘Of significant interest is the recent approach to the CAP team by a New Zealand association wishing to bid for a world congress for year 2020,’ says Buchanan.

He says 8000 delegates are expected, plus partners, exhibitors, sponsors etc. ‘Without a larger national convention centre it could not be considered. However, with the on-going discussion concerning a new national convention centre, CINZ is assisting the client with a feasibility study to assess whether this congress could be hosted here if a new convention centre went ahead.

‘There are many pros and cons but it is an exciting challenge so we will not give up without a fight. Fortunately the bid itself does not have to be submitted until March 2012 which gives us time to carry out the necessary research and prepare the bid documents, in preparation for the presentation of the formal bid as soon as the go-ahead is given for the national convention centre, presuming of course that this go-ahead is finally forthcoming.

‘One could say we live in eternal hope.’

Buchanan says that in the meantime, CINZ continues to research the international market and work with regional convention bureaux, convention centres and professional conference organisers to identify New Zealand associations and organisations which are in a position to bid.

‘If any of you know of anyone like this looking for assistance, you know where to send them. We’ve got the money if they’ve got the time.’

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Stand for the occasion

Arriving in style… Leanne Fecser, VetLearn Wellington, was given a bird’s eye view of the new facilities at Vbase’s AMI Stadium when she flew in by helicopter to land on the hallowed turf. She is pictured (centre) with Leonie Ashford, Christchurch & Canterbury Convention Bureau; and Martin Shaw, Garden City Helicopters.

 

Canterbury Expo targets decision makers

Highly qualified buyers, both from the local market and further afield, will be the key to the success of this year’s Canterbury Conferences and Events Expo 2010.

Being held at the Hotel Grand Chancellor, Christchurch on August 17 the event will also have a pre-scheduled appointment programme for the first time. Buyers from Wellington, Auckland and other parts of New Zealand will be on appointments, as will a strong contingent of Australian buyers.

The Canterbury Expo will also have a wider range of exhibitors than ever before, increasing the interest for buyers.

Exhibition manager Tess Mason says Continental, Event Impressions, Displayworks, and Johnston’s Group were among the exhibitors to sign up early.

‘Of course we also have a strong representation from some of the larger and well known venues and hotels in Christchurch and the Canterbury region,’ she says. ‘On top of that we have corporate retreats and smaller function venues.’

A full list of exhibitors can be found at www.canterburyexpo.co.nz

The expo is owned by the Christchurch and Canterbury Convention Bureau and this year is being organised and managed by ProMag Publishing Ltd.

ProMag director Stu Freeman says the company realises that in business to business expos such as this, the key is to attract key decision makers as buyers.

‘Because of our other business interests, particularly Meeting Newz magazine, we are able to target the corporates and association executives who really intend doing business with Christchurch and Canterbury suppliers.’

Buyer registration is open now at www.canterburyexpo.co.nz

Canterbury suppliers interested in exhibiting should contact Tess Mason ph 09 818 7807 or email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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