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Best Practices for Convention andVisitors Bureau

Georgetown University: McDonough School of Business

Cristina Beauchamp, Jill Burkholder, Chrissy Kousin,Hyeong Bok Lee, Jon Loewenstern

Business Issue and Objectives

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Agenda

I. Tourism industry I. Stakeholder Relations II. Marketing & SalesIII. Revenue and Budget

I. Stakeholder RelationsII. Marketing & SalesIII. Revenue & BudgetIV. Going Forward

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Overview of Tourism Industry inVietnam

Tourism business in Vietnam has seen extraordinarygrowth, but has slowed down due to the global economicdownturn.

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Source: General Statistics Office of Vietnam (2008)

Number of Foreign Visitors to Vietnam

95 96 97 98 99 00 01 02 03 04 05 06 07 08

13511607

17151520

1781

21402330

26282429

2927

34773583

4229 4235

CAGR(1995-2006) = 10.3%

“In 2009, growth rate in visitor numbers is expected to fall for the first time since2003”

Unit::1,000

Vietnam tourism industry is driven by tourists fromNortheast Asia. Demand for multi-purpose travel willincrease in the future.

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Malaysia

15%

China

11%

S.Korea

10%

USAJapan

9%

Taiwan

7%

Australia

6%

ThailandFrance

SingaporeCambodia

Others*

4%4%4%

22%

Visitors by Country

Total Visitors in 2008: 4,235,800

Visitors by Purpose

* Others comprise over 20 countries which have less than 2% share

Tourism

61%Business20%

Visitingrelatives

12%

Others

7%

Total Visitors in 2008: 4,235,800

Global average for tourism purpose is 52%, and 16% for business

Source: General Statistics Office of Vietnam (2008)

The convention industry has a significant impact on localand regional economies, benefiting stakeholders andstrengthening buying power.

Hotel

$645

Retail Store

$355

Restaurant

$226

Entertainment

$182

PersonalService

$163

Bizconsumption

$163

Travel

$156

Transportation*

$79

Who benefits?

Ex: Korean Convention AttendeeAverage Expenditure: $1969

Source: Convention Industry in South Korea: Economic Impact Analysis * Local transportation only

Economic Impact

Direct Spending: $79.8Million

Indirect Spending: $19.5Million

Induced Spending: 19.2Million

Source: HVC CCTC Market Study (2009)

Ex: Macomb Convention Center(US-Michigan)

Spending: $118.5 Million

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Other countries have recognized the benefits of theconvention industry and have made many efforts to attractbusiness to their respective cities.

Rank City# of

meetings% of all

meetings

1 Singapore 637 5.75%

2 Paris 419 3.78%

3 Brussels 299 2.70%

4 Vienna 249 2.25%

5 Barcelona 193 1.74%

6 Tokyo 150 1.35%

7 Seoul 125 1.13%

8 Budapest 116 1.05%

9 Copenhagen 104 0.94%

10 London 103 0.93%

Top Intl. Meeting City in 2008*

Source: UIA, Intl. Meeting Statistics for Year 2008

Trends in Competition for Convention Hub

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! Focus on Asian convention marketwith aggressive investment

! Thailand: $78 million in tourismpromotion

! Malaysia: $80 million in tourismpromotion

! Develop Tour-Convention product

! Utilize natural tourist attractions toattract business conventions

! Establish exclusive organizationpromoting convention industry

! Government organization + Privateorganization

Established Northeast players are facing competition forthe Asian convention market from Southeast players, whoare making aggressive investments.

Singapore

• SE Asian market focusedmarketing

• Huge investment in infrastructureincl. airport, hotel

• Strength in air transportation

China

• Macao: Casino + Convention• Hainan: - Positioning as Eco-friendly site - Intl. org meeting focused

Malaysia

• Established “MyCEB”, specialorganization for MICE industry

• 5% of all visitors are for MICE• Target 50% growth until 2011

Hong Kong

• Established “MEHK”• NE Asian market focused

marketing

• TCEB: Private-Publiccooperative planning inconvention industry

• Allocate $30 million into TCEB• 7-year strategic plan for

convention

Thailand

Indonesia

• Designate MICE industry asfuture growth driver

• Successfully completed mega-intl. meetings ex) APEC

Asian Countries Competition for Convention

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Best Practices of San FranciscoConvention & Visitors Bureau

San Francisco’s Marketing Campaign: Video advertising the city

Only in San Francisco

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The SF CVB aims to make San Francisco the leadingdestination for business and leisure travelers.

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San Francisco Convention & Visitors Bureau offersstakeholders significant tangible membership benefits.

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SFCVB’s has a three pronged marketing and salesapproach to capture tourism market share.

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ComprehensiveWebsite

! Online booking

services

for hotels

! Attraction and

sightseeing

companies

! Online maps

! Information about local

member businesses

! Information on San

Francisco and

surrounding areas

! Calendar of Events

! Information for

convention, meeting

planners, travel

industry and media

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SFCVB promotes the long term development of SanFrancisco through brand strategy and advocacy.

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The San Francisco Convention Center, The MosconeCenter, is a main driver for hotel room bookings.

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Apple hosts their annual Worldwide DevelopmentConference at Moscone West every year.

! Steve Jobs uses WWDCto introduce new Appleproducts: MacBook, iPod,iPhone, iPad

! Over 5000 attendees

Steve Jobs announcesiPhone 3G at the 2008

WWDC

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San Francisco Convention & Visitors Bureau RevenueSources.

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San Francisco Convention & Visitors BureauRevenue Sources.

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San Francisco Convention & Visitors BureauMembership Dues Formula.

! Members pay dues to receive tangible benefitsoutside of general San Francisco tourism marketing

! Dues schedule is broken down by business type

! Accommodations/Lodging

! Restaurants

! Retail Shops/Complexes

! Ground Transportation/Tour Operators

! Annual dues based on members general reliance onthe tourism industry

! Hotels account for 28% of total members but pay45% of total CVB membership dues

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Recommendations for Convention &Visitors Bureau

Why create a Convention & Visitors Bureau?

The stakeholders should not compete against each other due tothese forces, instead they should work together toward a common

purpose….

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The purpose & mission of the CVB is ….

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Why should Stakeholders join the CVB?

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By joining the CVB, you can help to promote the city,increase tourism, and ultimately increase your bottom line.

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CVB should target the following stakeholders to join andcontribute to the organization.

Travel Planning Transportation AccommodationConference

Facility

Food

Entertainment

Shopping

AirlinesAirlines

• Delta Airlines

• American Airlines

• Other InternationalAirlines

• Vietnam Airlines

HotelsHotels

• Sheraton Hotel

• Park Hyatt Hotel

• IntercontinentalHotel

• Caravelle Hotel

• New World Hotel

• Renaissance Hotel

• Rex Hotel

• Majestic Hotel

• Continental Hotel

Travel AgenciesTravel Agencies

• Saigon Tourist

• Binh Thanh Tourist

• East Sea Travel

• HG Travel

• Mekong Delta Tour

• Cu Chi Tunnels Tour

• Phan Thiet

• Vung Tau • Budget Car

• Driver Rental

Convention CentersConvention Centers

• Ho Chi Minh CityInternationalExhibition andConvention Center(HIECC)

• Saigon InternationalExhibition andConvention Center(SIEC)

ResortsResorts

Tour GuidesTour Guides

Online bookingservice providers

Online bookingservice providers

Rental CarsRental Cars

TaxiTaxi

AirportsAirports

• Southern AirportAuthority

• TSN Intl Airport

• Long Thanh Airport

RestaurantsRestaurants

Shopping mallShopping mall

Duty Free ShopsDuty Free Shops

Local MarketsLocal Markets

Golf CoursesGolf Courses

PortsPorts

• Diamond Plaza

• Paragon Center

• Parkson

Business CenterBusiness Center

• Saigon Trade Center

Movie TheatersMovie Theaters

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CVB needs to decide how to brand the city and maintainconsistent campaigning and messaging.

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Identify key events and ensure involvement, promotion andadvertising at marquee functions.

http://eventful.com/hochiminhcity/events/categories/festivals_parades

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Convention & Visitors Bureau: Possible Sources ofRevenue.

! Membership Dues

! Hotel Tax/Lodging Assessment

! Tax on Other Tourism related businesses

! Contributions

! Donations

! Website Advertising

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There is a strong business need to promote tourism withinHCM City and stakeholders would benefit from a CVB.

! San Francisco is a strong model to build off;however, the CVB will encounter different obstaclesand challenges.

! As you consider creating a CVB, focus on thefollowing initial steps:

! Set up the necessary organization legally.

! Attain buy-in from key stakeholders.

! Initiate a targeted marketing campaign.

! Generate a comprehensive website.

! Determine revenue generation possibilities.

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