51st ICCA Congress       Models for Structuring City        Convention Bureaux and           Other Marketing             O...
Agenda• Introduction• Case studies    – VisitOslo, Norway    – Tourism Toronto, Canada    – Malaysia Convention & Exhibiti...
The ‘typical’ European CVB• A public-private partnership• Established as not-for-profit, foundation or trust• Annual incom...
The ‘typical’ European CVB• Spend 45% of budget on  marketing/communications and 39% on staff• Have enjoyed increased fund...
51st ICCA Congress    Models for Structuring City    Convention Bureaux and Other    Marketing Organizations    Anne Walli...
About Oslo• Capital of Norway• 600.000 inhabitants (Norway almost 5 mill)• 11.000 hotel rooms• Congress centre can host 6....
History• Established 1929 as «The Travel and Tourist Association for  Oslo and its region»    – NOK 5000 from the city(€ 6...
Structure• 150 shareholders from the industry    – NOK 10 000 per share (€ 1250/$ 2000)• They pay an annual marketing fee ...
GovernanceInternational Congress and Convention Association.Twitter: #ICCA12
Our funding in 2012• Municipality (48%)    – NOK 17,6 mill (€ 2,2 mill/$ 3,5 mill)• Industry (22%)    – NOK 8,3 mill (€ 1 ...
Pro’s and con’s• Pro’s:    – No need to chase project money from industry         • Easy to budget industry contributions ...
Pro’s and con’s• Con’s    – Municipal money subject to change         • Elections, new bureaucrats etc         • No munici...
Conditions for success• Constant flow of information    – Close cooperation with industry         • Leads, feed back, repo...
51st ICCA Congress    Thank you!International Congress and Convention Association.                                        ...
51st ICCA Congress    Models for Structuring City    Convention Bureaux and Other    Marketing Organizations    Alice Au  ...
Tourism Toronto              –Toronto Convention and Visitors Association                             Alice Au            ...
TORONTO, ONTARIO, CANADA                                                    Located on the shores                         ...
History and Funding• 1926 – Toronto Convention & Tourist Bureau  was formed as a not-for-profit co-operative  marketing/sa...
History and Funding• 1986 – TT incorporated as a non-profit  association as the Metro Toronto  Convention & Visitors Assoc...
Tourism Toronto Name Change• 1998 – Amalgamation of the City of Toronto  with 5 boroughs resulted in MTCVA’s name  change ...
Role of Tourism TorontoTourism Toronto reconfirmed our mandate:•Destination Marketing Services•Advertising, promotion & me...
Former Governance• Report to 42 member Board of Directors, including  7 members of City Council / Mayor served as  Honorar...
Disaster Management• Early 2003 - Due to the SARS pandemic that  spread from HK to 37 countries, Toronto’s  business & tou...
Private Sector Funding Support• DMF agreement renewable every 3 years• TT became 100% funded by industry  (private sector)...
Deployment of Marketing Efforts• By end of 2004, TT had a staff of 70  focusing on business development from all  markets ...
Return to Public / Private Funding• In July 2010, the Provincial Government  amalgamated the tax system to Harmonized  Sal...
Public/Private Sector Partnership• Tourism Toronto has a membership of over  1200 members from the hospitality &  tourism-...
Tourism Toronto’s Current Structure• Staff of 80 reports to a 22 member Board  of Directors drawn from broad spectrum of  ...
Tourism Toronto TeamOrganizational Chart                                Deployment 2012International Congress and Conventi...
MC&IT Sales & Measurement• Quarterly sales advisory committee  meetings with our hotels and convention  centres help us as...
Pro’s & Con’s with our funding modelCON’s•Unpredictable funding support from theGovernment impedes long term planningPRO’s...
51st ICCA Congress    Thank    you!International Congress and Convention Association.                                     ...
51st ICCA Congress    Models for Structuring City    Convention Bureaux and Other    Marketing Organizations    Ho Yoke Pi...
Malaysia Convention & ExhibitionBureau (MyCEB)Presented by:Ho Yoke PingGeneral Manager Sales & MarketingInternational Cong...
Malaysia Events Strategy    Achieve developed nation    status by 2020    Business & Major Events    recognised as high yi...
MyCEB    Not for profit company limited by guarantee    Established 2009 under Ministry of Tourism    International Events...
Measurement Tools    Percentage of business tourism arrivals    Value of Business Secured: no. events, delegates,    deleg...
Our KPIsBusiness Events(meetings, conventions, incentives, exhibitions)  Increase international business tourists from 5% ...
MyCEB Structure                                   Ministry of Tourism                                                     ...
Vision, Mission & GoalsInternational Congress and Convention Association.Twitter: #ICCA12
Vision, Mission & Goals    To maximise yield from Business Events    Once Malaysia has secured events we want to    MAXIMI...
Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
Subvention    Provision of financial & non financial    support to attract international    business & major events that g...
Industry Partner Progamme    To foster industry support and    collaboration in the promotion of    Malaysia as a business...
International EventsInternational Congress and Convention Association.Twitter: #ICCA12
Malaysia’s Events Strategy                         PROS                                       CONS    Business & major eve...
51st ICCA Congress    Thank you!International Congress and Convention Association.                                        ...
Discussion: Funding    How to attract (more) business      when funding from public and      private stakeholders are bein...
Discussion: Partnership models       How to manage interests and             inputs from various local    stakeholders (pu...
Discussion: Proving ROI    How to measure, document and             communicate ‘Return On    Investment’ to local stakeho...
51st ICCA Congress    • Thank you for      attending!    • Please remember      to evaluate the      session on      SPOTM...
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Models For Structuring City Convention Bureaux And Other Marketing Organizations (Part 5) #ICCA12 TUESDAY 23/10/2012

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Presentation held at the 51st ICCA Congress which took place in San Juan, Puerto Rico from 20 - 24 October 2012. For more information on ICCA please visit www.iccaworld.com.

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  • Models For Structuring City Convention Bureaux And Other Marketing Organizations (Part 5) #ICCA12 TUESDAY 23/10/2012

    1. 1. 51st ICCA Congress Models for Structuring City Convention Bureaux and Other Marketing OrganizationsInternational Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    2. 2. Agenda• Introduction• Case studies – VisitOslo, Norway – Tourism Toronto, Canada – Malaysia Convention & Exhibition Bureau• Round table discussions• ClosingInternational Congress and Convention Association.Twitter: #ICCA12
    3. 3. The ‘typical’ European CVB• 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 reservesInternational Congress and Convention Association.Twitter: #ICCA12
    4. 4. The ‘typical’ European CVB• 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 feesInternational Congress and Convention Association.Twitter: #ICCA12
    5. 5. 51st ICCA Congress Models for Structuring City Convention Bureaux and Other Marketing Organizations Anne Wallin Rødven Convention Director VisitOsloInternational Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    6. 6. About Oslo• 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)International Congress and Convention Association.Twitter: #ICCA12
    7. 7. History• 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 2005International Congress and Convention Association.Twitter: #ICCA12
    8. 8. Structure• 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 yearInternational Congress and Convention Association.Twitter: #ICCA12
    9. 9. GovernanceInternational Congress and Convention Association.Twitter: #ICCA12
    10. 10. Our funding in 2012• 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))International Congress and Convention Association.Twitter: #ICCA12
    11. 11. Pro’s and con’s• Pro’s: – No need to chase project money from industry • Easy to budget industry contributions – A business-like relationship with the municipality • Not politicalInternational Congress and Convention Association.Twitter: #ICCA12
    12. 12. Pro’s and con’s• 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)International Congress and Convention Association.Twitter: #ICCA12
    13. 13. Conditions for success• Constant flow of information – Close cooperation with industry • Leads, feed back, reporting – Close relations with city officials and politicians • Reporting, common projects, constant follow upInternational Congress and Convention Association.Twitter: #ICCA12
    14. 14. 51st ICCA Congress Thank you!International Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    15. 15. 51st ICCA Congress Models for Structuring City Convention Bureaux and Other Marketing Organizations Alice Au Director of Sales, International Meetings & Events Tourism Toronto – Toronto Convention and Visitors AssociationInternational Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    16. 16. Tourism Toronto –Toronto Convention and Visitors Association Alice Au Director of Sales, International Meetings & EventsInternational Congress and Convention Association.Twitter: #ICCA12
    17. 17. TORONTO, ONTARIO, CANADA Located on the shores of Lake Ontario Major air travel hub to Canada & the US Population: 5.5 million in Greater Toronto Region Annual visitors: 26 million Economic Impact: $4.4 BillionInternational Congress and Convention Association.Twitter: #ICCA12
    18. 18. History and Funding• 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)International Congress and Convention Association.Twitter: #ICCA12
    19. 19. History and Funding• 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 $4.50MInternational Congress and Convention Association.Twitter: #ICCA12
    20. 20. Tourism Toronto Name Change• 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 regionInternational Congress and Convention Association.Twitter: #ICCA12
    21. 21. Role of Tourism TorontoTourism Toronto reconfirmed our mandate:•Destination Marketing Services•Advertising, promotion & media service•Visitor information•Market ResearchInternational Congress and Convention Association.Twitter: #ICCA12
    22. 22. Former Governance• 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 International Congress and Convention Association . Twitter: #ICCA12
    23. 23. Disaster Management• 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 International Congress and Convention Association . Twitter: #ICCA12
    24. 24. Private Sector Funding Support• 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 activitiesInternational Congress and Convention Association.Twitter: #ICCA12
    25. 25. Deployment of Marketing Efforts• 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 cityInternational Congress and Convention Association.Twitter: #ICCA12
    26. 26. Return to Public / Private Funding• 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)International Congress and Convention Association.Twitter: #ICCA12
    27. 27. Public/Private Sector Partnership• 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 International Congress and Convention Association . Twitter: #ICCA12
    28. 28. Tourism Toronto’s Current Structure• 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 escapeInternational Congress and Convention Association.Twitter: #ICCA12
    29. 29. Tourism Toronto TeamOrganizational Chart Deployment 2012International Congress and Convention Association.Twitter: #ICCA12
    30. 30. MC&IT Sales & Measurement• 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 industryInternational Congress and Convention Association.Twitter: #ICCA12
    31. 31. Pro’s & Con’s with our funding modelCON’s•Unpredictable funding support from theGovernment impedes long term planningPRO’s•Creates ongoing communication channelbetween the bureau and the hospitalitycommunity and encourage partnership tobuild towards mutual successInternational Congress and Convention Association.Twitter: #ICCA12
    32. 32. 51st ICCA Congress Thank you!International Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    33. 33. 51st ICCA Congress Models for Structuring City Convention Bureaux and Other Marketing Organizations Ho Yoke Ping General Manager Sales & Marketing Malaysia Convention & Exhibition Bureau (MyCEB)International Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    34. 34. Malaysia Convention & ExhibitionBureau (MyCEB)Presented by:Ho Yoke PingGeneral Manager Sales & MarketingInternational Congress and Convention Association.Twitter: #ICCA12
    35. 35. Malaysia Events Strategy Achieve developed nation status by 2020 Business & Major Events recognised as high yield and high profile market segments Business Events: RM3.9 billion incremental GNI and provide 16,700 jobs Major Events: RM0.4 billion incremental GNI providing 8,000 jobsInternational Congress and Convention Association.Twitter: #ICCA12
    36. 36. 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.International Congress and Convention Association.Twitter: #ICCA12 36
    37. 37. 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 stayInternational Congress and Convention Association.Twitter: #ICCA12 37
    38. 38. Our KPIsBusiness 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 2020International Events(sports, arts, culture and lifestyle events) 210,000 spectators by 2020 70,000 overseas spectators by 2020 3 international events per annum by 2020International Congress and Convention Association.Twitter: #ICCA12 38
    39. 39. MyCEB Structure Ministry of Tourism  Government Prime Ministers Office Board  Industry [Pemandu] CEO International Events Business Events Corporate Sports, Arts Meetings, Conventions, Culture, Lifestyle Incentives, Exhibitions  Government & Industry Relations  Business Development  Business Development  Industry Services  Event Marketing  Sales (bids)  Marketing Services  Event Support  Event Support  Media Relations Finance & Admin Employees (45) Industry Partners (200) International Congress and Convention Association . Twitter: #ICCA12
    40. 40. Vision, Mission & GoalsInternational Congress and Convention Association.Twitter: #ICCA12
    41. 41. Vision, Mission & Goals To maximise yield from Business Events Once 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 MalaysiaInternational Congress and Convention Association.Twitter: #ICCA12
    42. 42. Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
    43. 43. Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
    44. 44. Roles & FunctionsInternational Congress and Convention Association.Twitter: #ICCA12
    45. 45. 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 MOU nce attract international attendees and •Pe rforma es publicity outcom al • Mutu s Based on economic assessment: direct ion obligat and indirect benefits •Suppo rt le Subject to MOU outlining mutual Schedu obligations, conditions of support and support scheduleInternational Congress and Convention Association.Twitter: #ICCA12
    46. 46. 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 / referralsInternational Congress and Convention Association.Twitter: #ICCA12
    47. 47. International EventsInternational Congress and Convention Association.Twitter: #ICCA12
    48. 48. Malaysia’s Events Strategy PROS CONS Business & major events specialists & focus Dependence on government support Direct link to Government Economic Growth Some overlap of roles between National Strategy 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 MinisterInternational Congress and Convention Association.Twitter: #ICCA12 48
    49. 49. 51st ICCA Congress Thank you!International Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
    50. 50. Discussion: Funding How to attract (more) business when funding from public and private stakeholders are being reduced?International Congress and Convention Association.Twitter: #ICCA12
    51. 51. Discussion: Partnership models How to manage interests and inputs from various local stakeholders (public and private) with different agendas and opinions?International Congress and Convention Association.Twitter: #ICCA12
    52. 52. Discussion: Proving ROI How to measure, document and communicate ‘Return On Investment’ to local stakeholders (public and private) to create support and buy-in?International Congress and Convention Association.Twitter: #ICCA12
    53. 53. 51st ICCA Congress • Thank you for attending! • Please remember to evaluate the session on SPOTME!International Congress and Convention Association. Session sponsored by:Twitter: #ICCA12
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