|October 10, 2013|
AIPC Survey: Competition, Government Policy Top Concerns for Global Convention Centres
|Convention Centres have identified growing international competition and government policies toward meetings and events participation as their top concerns heading into a period of only gradual economic recovery, according to the latest annual survey carried out by AIPC, the International Association of Convention Centres. The survey, carried out between April and June 2013, achieved a 65% response rate from centres in 54 countries with a heavy representation in Europe, and is now available to AIPC members at www.aipc.org.|
"Growing competition amongst centres worldwide has been an issue for some years, but this very real spike in concern about government attitudes toward business events is a disturbing new development" said AIPC President Geoff Donaghy. "At a time when economic growth and stabilization is a big priority amongst governments all over the world, we would have hoped they would have made the connection this has with business and professional interactions, but our member experiences are suggesting otherwise. This shows we need to work even harder on making sure our value proposition is better understood and appreciated by policy makers."
Other key survey findings included;
- While centres have seen 6-7% revenue growth in the past few years they are anticipating slower growth (1%) for 2013 in the face of ongoing stagnation in economic recovery. European centres are lagging other parts of the world due largely to economic conditions there.
- Recovering corporate event business is driving growth in many areas while conventions, exhibitions remain stagnant.
- Many centres are pursuing alternate revenue streams including event creation, sponsorship and advertising and enhanced services and are also engaging in increased risk sharing with clients to encourage more business.
- Centres are challenged by rapid change in event formats and explosive growth in technology and connectivity demands, both of which require greater facility investment in a time of only modest revenue growth.
- Challenges arising from hotel and airline capacity and pricing were also cited in many areas as factors potentially limiting centre business.
"Overall what this tells us is that there is no instant business upswing in the cards for centres in the near future", said Donaghy. "As in many other sectors in today's economy, success in ours will have to be based on innovation, flexibility and an ability to be competitive in a highly contested market".
AIPC represents a global network of over 170 leading centres in 54 countries with the active involvement of more than 900 management-level professionals worldwide. It is committed to encouraging and recognizing excellence in convention center management, based on the diverse experience and expertise of its international representation, and maintains a variety of educational, research, networking and standards programs to achieve this. AIPC also celebrates and promotes the essential role of the international meetings industry in supporting economic, academic and professional development and enhancing global relations amongst highly diverse business and cultural interests.
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AIPC Sales & Marketing Summit: Frankfurt, May 18, 2014
AIPC Annual Conference 2014: Berlin, June 29-July 2