Marketing Birmingham Commercial Members Meeting - 30.10.13 (Ian Taylor)


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    We’re reflecting on a strong performance across our business areas. In the first full year of operation, Business Birmingham has not only refined its strategy into one of the keenest inward investment strategies of any UK city, it has also delivered where it matters: in the securing of projects that create jobs.
    We’ve continued our positive trajectory in attracting more visitors to the city, not only has the number of people coming here increased, the value of their spend to the economy also grew.
    In an exceptionally competitive market, we’ve worked in partnership with The NEC Group, our Universities and a host of other venues to develop a strong pipeline of national and international event bids.
    We’re also using the intelligence capabilities of the Observatory to ensure our strategies and propositions are powered buythe most up to date and insightful data possible – helping us make the business case for Birmingham in all of our programme areas.
  • Between 2010 and 2012 (latest available data) private sector firms in the Greater Birmingham and Solihull LEP area created nearly 40,000 jobs – 10% of the national total and more than any other LEP area outside London.
  • What impact is this activity having on the performance of our hotels?
    RevPAR – widely accepted metric to measure the performance of hotels and whilst there’s been a welcome uplift on the performance of the city’s hotels in 2013 compared to the previous 12 months, the reality is we still lag behind most other UK cities when we compare RevPAR figures.
    Number of reasons for this, not least of all the increased supply we’ve seen from new hotels coming into the market in the last few years. Arguably still over reliant on business visitors and conference and event visitors and there’s an increasing recognition that to achieve a step change in RevPAR and hotel performance will take a different way of doing things.
  • The visitor economy remains a key driver of the city’s wider economy
    The Champions Trophy cricket has helped our profile in India for example, putting Birmingham in front of around 1 billion potential visitors
    Our profile as a food destination continues to grow, cemented by a raft of events and marketing opportunities over the summer months, not least of all through our Birmingyum campaign
    Also seen the Discovery Festival, which is still in full swing and the 4 Squares Festival a few weeks ago, all helping drive visitors into the city, staying in our hotels and spending money in our economy.
    Mentioned earlier our success in group travel awards, important section of the market, we’ve been focused on engaging trade effectively and helping them package the Birmingham offer, not just at a national level but also in China, Australia, the US and Japan.
    The city is also well placed this week to pick up an international accolade for its floral expertise and use of public spaces from Entente Florale, an international competition - we understand the results of which will be announced in the next couple of days.
  • Fitting that today we are in this fantastic building, the new Library of Birmingham.
    The media coverage from the opening of these magnificent facilities has placed the national and international spotlight firmly on the city and created a debate not just about the role of libraries in the twenty first century, but also a dialogue that is helping once again to position Birmingham as a confident city, that is forging it s own path in economic and cultural regeneration terms.
    There’s no doubt this is a facility we can be proud of as Brummies and it also one that will attract people from far afield to experience it for themselves.
    You may wish to reference the reaction of the site selectors recently to this building and their impressions of Birmingham. George Pretty said:
    “Although I have visited Birmingham several times on business, before taking part in the tour last week, I was surprised to see the scale and pace of change playing out across the city. These are exciting times for Birmingham, driven by the passion, commitment and determination of its civic and business leadership. I have no doubt that Birmingham will continue to thrive as a world-class investment destination, affording expanded economic growth for its people.”
  • Recent announcement of Air India route, which is already performing strongly, was a very positive step. They to long term economic growth remains in establishing greater connectivity, not just in the UK, where HS2 is so important, but right across the globe.
    Opportunity presented by runway extension and longer term development potential is significant but it is not a sliver bullet. In a competitive market place we need to demonstrate that Birmingham is a sound investment.
    Supporting the airport team in making business cases to secure new routes, working hard to position our product with business and travel trade and exploring opportunities to utilise Birmingham as a key gateway for the UK and international visitors.
    Working in key territories with Visit Britain, Visit England and UKTI to ensure Birmingham is seen as a viable alternative to London.
    Sales missions
    Asian Pacific region, specifically China, Japan
    North America,
    International exhibitions
    Routes development
    Group travel
    Fam trips
    Nordic media and buyers
    American group buyers
    Chinese delegation
  • Collaborative campaign = 15 partner
    The 'Now Trending in Birmingham' aims to move away from traditional Christmas tourism campaigns that ‘talks at’ visitors, instead it will uses the words of visitors to inspire tourists to Birmingham, the Black Country and Solihull.
    Strong digital camapign the actual sentiment of visitors based on social media channels, as we believe that by celebrating the actual views of visitors and using their voice (‘work of mouth’) will provide increased engagement with prospective visitors. Furthermore, we considering that this approach will make the campaign more believable, human and authentic – which is aligned to our destination brand model.
    Campaign call to action - ‘See what else is trending and book your stay at’
    Data sign up
    Web metrics – unique visitor, engagement, social sentiment
    Hotel occupancy and revpar
  • Marketing Birmingham Commercial Members Meeting - 30.10.13 (Ian Taylor)

    1. 1. Commercial Members Meeting 30th October 2013
    2. 2. Agenda 9.00am Welcome Ian Taylor, Commercial Director, Marketing Birmingham 9.05am The NEC Group developments Paul Thandi, Chief Executive, The NEC Group 9.25am Marketing Birmingham Operational Briefing Ian Taylor, Commercial Director, Marketing Birmingham 9.50am Questions 10.00am Meeting concludes
    3. 3. Operational Briefing Ian Taylor Commercial Director
    4. 4. Economic outlook  UK economic output -  rose by 0.8% in July - Sept rose by 0.7% in April - June UK Hotel sector - av hotel at occupancy up 1% on 2012 - av RevPAR up 6.25%  Birmingham & Solihull Hotel sector - av hotel occupancy up 4% on 2012 - av RevPAR up 5.7%
    5. 5. Attracting overnight visitors Hotel RevPAR* comparison 2012 v 2013 80 potential projects in completion pipeline for 2013/14 * Revenue per available room
    6. 6. Business Catalyst Lead Generation Agents Breeze Social Media Award
    7. 7. Trade engagement  Scale of opportunity: China, USA, India, Europe  Developing relationships with global travel trade  Trade access: understanding market requirements  Connectivity: supporting route development Birmingham Airport
    8. 8. Business development  Meet Birmingham Showcase 2013 -  Best of Britain & Ireland 2014 -  30 qualified buyers engage travel trade buyers BCB: nine bids for national conferences in 2013  -  7,500 room nights 5,000 attendees Meet Birmingham Guide 2014
    9. 9. The Birmingham Chef’s Table 3rd February 2014 #birmingyum
    10. 10. Tourism strategy 2014-2020  Commissioning a tourism strategy for the Greater Birmingham region  Will consider market positioning, target markets, spend priorities, product development and investment requirements  Consultative process, reporting in March 2014
    11. 11. CONSULTATION This is a draft proposal. It is part of an iterative process and will evolve during the consultation process. Creating a TBID for Birmingham & Solihull
    12. 12. Birmingham & Solihull We’re making progress... Visitor numbers at an all time high - 39 million in 2012 Average hotel occupancy 2013 at 70% - 4% higher than 2012  Perceptions as a visitor destination up by 22% since 2005  Tourism now accounts for 10% of the region’s GVA  Making a £5.9 billion contribution to the local economy  The fourth most visited city region in the UK by overseas visitors
    13. 13. Bright future...  £600m re-development of New Street Station – John Lewis, Grand Central  Birmingham Airport runway extension increases global connectivity  Creating more private sector jobs than any other UK region  More FDI investment than any other city outside the capital  Economic Zones, City Centre Enterprise zone  Resorts World, Paradise Circus, Library of Birmingham, Eastside Development  HS2 increases national connectivity  £10 billion of investment in infrastructure over next 15 years There’s going to be a lot to talk about!
    14. 14. Challenges  Increased competition locally, regionally and nationally - 10 UK destinations have created new or significantly added to their existing conference and exhibition facilities since 2005 - net gain of some 5300 hotel bedrooms since 2005 in Birmingham & Solihull - further 33 hotel projects in development pipeline  Economic climate and continued pressure on consumer/business spending  Increasing pressure on public sources of funding for tourism promotion Whilst our city region is set to benefit from the greatest levels of investment in a generation... ...its marketing and promotion as a visitor destination is not.
    15. 15. RevPAR challenge Average RevPar in Birmingham & Solihull continues to lag behind other UK cities
    16. 16. Funding the future  Birmingham & Solihull needs to competitively promote its offer  Requires a new partnership  Needs to leverage new financial resources  Private sector needs a new vehicle to create financial resources  Proposing creation of an industry led, independent body... Tourism Business Improvement District for Birmingham & Solihull
    17. 17. What is a TBID?  Group of businesses who, through a ballot process, agree to pay a levy  Levy determined by an agreed formula and paid to an agreed delivery body in order to sell, promote and develop local tourism sector  Governed by an elected and independent board of representatives made up of levy payers  Board appoints a delivery body to implement an agreed programme of activities, funded by the levy  All funds are 100% invested in the programme  The board is responsible for evaluating the impact and success of the programme
    18. 18. Steering group The Steering Group currently consists of: Chair: Paul Thandi, Chief Executive, The NEC Group Deputy Chair: Michael Mason, General Manager, Crowne Plaza Hotel Ronan McGovern, Area Manager, Accor Hotels David Lane, General Manager, Millennium Copthorne Hotel Derek McDonagh, General Manager, Burlington Hotel Andrew Cole, General Manager, Touchwood Shopping Centre Stephen Maddock, Chief Executive, CBSO Anne Brererton, Director for Places, Solihull MBC
    19. 19. A new approach, not a new idea  TBIDs first piloted in the US over 30 years ago  100 geographic BID’s have been formed in the UK focussed on retail, industrial, business partners, town and city centres  15 UK cities/towns/destinations currently considering development of TBID’s in their areas but only Birmingham & Solihull has the scale to make a real difference  Currently over 1,000 TBIDs in the US alone
    20. 20. A new model for a new future FOCUS INVEST GROW Industry led Common goals Intelligent customers Sales & marketing Secure further funding New visitor product Overnight visitors International visitors Events 18% RevPAR increase by 2019
    21. 21. How is it funded? The principal source of TBID funding will be an annual levy which will be applied to all hotels and serviced accommodation providers with 30 or more bedrooms in Birmingham and Solihull. A REVPAR based formula is proposed; based on the formula below: Total number of bedrooms for a particular hotel x 365 x average annual RevPAR per day per bedroom = Y   (n.b., ‘RevPAR’ is calculated by multiplying ‘Bedroom Occupancy’ by ‘Average  Achieved Room Rate’). The levy is then calculated by multiplying Y by the relevant geographic % levy
    22. 22. Proposed levy % Location % Levy Birmingham Inner Ring Road 1% Birmingham Outer 0.5% Solihull (NEC/Airport) 1% Solihull 0.5%
    23. 23. What happens next? Industry consultation Oct 13 – March 14  Dedicated consultation process to gain views and develop proposals Ballot process April 2014  Requires majority yes vote based on voting businesses and rateable value Operational set up October 2014
    24. 24. Consultation schedule October 13 Outer Birmingham Hotels, 16th October, 3.00pm, Baskerville House, Birmingham Solihull & NEC Hotels, 23rd October, 3.00pm, Touchwood Centre, Solihull Drop in Session, 25th October, 1.30pm - 4.30pm, Baskerville House, Birmingham November 13 Inner Birmingham Hotels, 6th November, 3.00pm, Baskerville House, Birmingham Outer Birmingham Hotels, 20th November, 3.00pm, Baskerville House, Birmingham Solihull & NEC Hotels, 27th November, 3.00pm, Touchwood Centre, Solihull December 13 Drop in Session, 3rd December, 1.30pm - 4.30pm, Baskerville House, Birmingham Drop in Session,12th December, 1.30pm - 4.30pm, Baskerville House, Birmingham January 14 Inner Birmingham Hotels, 9th January, 3.00pm, Baskerville House, Birmingham Outer Birmingham Hotels, 15th January, 3.00pm, Baskerville House, Birmingham Solihull & NEC Hotels, 29th January, 3.00pm, Touchwood Centre, Solihull Drop in Session, 31st January, 1.30pm - 4.30pm, Baskerville House, Birmingham
    25. 25. Consultation schedule February 14 Inner Birmingham Hotels, 5th February, 3.00pm, Baskerville House, Birmingham Outer Birmingham Hotels, 12th February, 3.00pm, Baskerville House, Birmingham Solihull & NEC Hotels, 19th February, 3.00pm, Touchwood Centre, Solihull Drop in Session, 26th February, 1.30pm - 4.30pm, Baskerville House, Birmingham March 14 Inner Birmingham Hotels, 5th March, 3.00pm, Baskerville House, Birmingham Outer Birmingham Hotels, 12th March, 3.00pm, Baskerville House, Birmingham Solihull & NEC Hotels, 19th March, 3.00pm, Touchwood Centre, Solihull Drop in Session, 26th March, 1.30pm - 4.30pm, Baskerville House, Birmingham
    26. 26. Summary To continue current growth trajectory and maximise impact of huge investment in infrastructure will require a new approach to promoting the visitor economy Public sector funding will likely diminish in next 5 years It’s an increasingly competitive market nationally & internationally We can’t keep doing what we’ve always done... We need to FOCUS and work together. We need to INVEST in our future, so we can GROW our markets. The creation of a TBID for Birmingham & Solihull is an opportunity for you to shape the development and promotion of Birmingham and Solihull as a visitor destination. It is your chance to work with partners to bring more custom to the region, build your business and boost the area’s reputation.
    27. 27. Questions