Defining the “Ask”What Centres Are (and should be) Getting

from their Government(s)

Dirk Elzinga

Convention Centres contribute significantly to the local and regional economy. They create jobs and generate substantial direct and indirect tax revenues. This is widely recognized by governments, who provide a variety of concessions to convention centres in order to make them more successful.In this interactive session we will try to learn from our fellow AIPC members, uncovering how various governments are supporting the convention centres in their municipalities and regions.

Introduction

2

3

• Facilitated by IML• Use the interactive keypads to vote, one per delegate• Your opinion will be captured and translated it into

meaningful data. Instantaneous feedback• Intelligent voting but also expression of opinions!

Your participation required!

keypad each person receive will look like this…

2.4” OLED Colour Display

Microphone

Light Sensor

Headphone Volume

Dedicated PTT Button

Trackball

Soft Keys

Full QWERTY Keyboard

Backlit Keys

iPod Style Connector LanyardSpeaker

Rumbler

Accelerometer

Lithium Ion Battery

Battery Cover

Label

1GB Memory

RGB Tally Light

Headphone/Mic SocketStatus LED Wrist Strap

Universal Smartcard Reader

8%

13%

8%

8%

38%

8%

17%

North America

South or Middle America

Europe

Middle East

Africa

Asia

Australia

Simulated data

Simulated data

5

Where are you located?

25%

21%

21%

33%

100% owned by the government?

In majority owned by the government?

Less than 50% government ownership?

No government ownership?

Simulated data

Simulated data

6

Is your convention centre:

17%

21%

25%

29%

8%

No, not at all

Yes, by making land available at reduced or no cost

Yes, by guaranteeing/underwriting a commercial loan

Yes, by providing both the land as well as part of the required capital investment

Yes, by providing the land and 100% of the required capital investment

Simulated data

Simulated data

7

Did your government contribute to the original funding of your centre?

25%

8%

17%

21%

29%

No, not at all

Yes, by making land available at reduced or no cost

Yes, by guaranteeing/underwriting a commercial loan

Yes, by providing both the land as well as part of the required capital investment

Yes, by providing the land and 100% of the required capital investment

Simulated data

Simulated data

8

Did your government contribute to the capex of your most recent expansion/refurbishment? (Or will they?)

49%17%17%17%

50%0%0%

50%

25%25%

0%50%

20%20%20%

40%

0%29%

42%29%

No, not at all

Yes, by making land availableat reduced or no cost

Yes, by guaranteeing/underwritinga commercial loan

Yes, by providing both the land aswell as part of the required capital investment

Yes, by providing the land and100% of the required capital investment

100% owned by the government?

In majority owned by the government?

Less than 50% government ownership?

No government ownership?

Simulated data

Simulated data

9

Did your government contribute to the capex of your most recent expansion/refurbishment? (Or will they?)

54%

46%

Yes

No

Simulated data

Simulated data

10

Have you been endowed with possibilities to create additional revenue streams?

21%

45%

13%

21%

No, not at all

Yes, but first we have to use our accumulated funds

Partially

Yes, for 100%

Simulated data

Simulated data

11

If you would experience a non-profitable year, would the loss be compensated by your government?

40%20%

0%0%0%0%

40%

0%9%9%

0%55%

9%18%

0%0%

34%33%33%

0%0%

0%20%

0%20%

40%20%

0%

No, not at all

Yes, but first we have to use our accumulated funds

Partially

Yes, for 100%

North America

South or Middle America

Europe

Middle East

Africa

Asia

Australia

Simulated data

Simulated data

12

If you would experience a non-profitable year, would the loss be compensated by your government?

Yes

For foreign clients only

No

13

Are you VAT (or city sales tax) exempt?

We pay no rates and taxes

We receive a discount on rates and taxes

Our venue has been undervalued, resulting in lower rates and taxes

We pay rates and taxes just like any other commercial company in town

14

What is the situation regarding local rates and taxes?

0%34%

0%50%

0%0%0%

50%0%0%

50%56%

0%50%

50%33%

50%0%

11%50%

25%

0%33%

50%0%

33%50%

25%

We pay no rates and taxes

We receive a discount on rates and taxes

Our venue has been undervalued, resulting in lower rates and taxes

We pay rates and taxes just like any other commercial company in town

North America

South or Middle America

Europe

Middle East

Africa

Asia

Australia

Simulated data

Simulated data

15

What is the situation regarding local rates and taxes?

42%

29%

29%

We don’t make a profit

We don’t have to pay company tax

Yes, we pay company tax like any other company

Simulated data

Simulated data

16

Do you pay any company tax over your profits?

13%

13%

13%

9%

12%

11%

11%

10%

8%

Traffic Police

VIP Protection

Fire brigade controls and approvals

Stand construction and floor plan controls and approvals

Event permits

First Aid or other medical services

Electricity

Water

Other

Simulated data

Simulated data

17

Which of the following services are provided to you free or at reduced rates?

33%

13%

54%

Don’t irritate with all sorts of requests for cost reductions;just show the operational loss and let the shareholder cover it

Much better for the image of the centre if an operationalprofit can be realized. Do everything to reduce cost

Not so sure, both approaches can work

Simulated data

Simulated data

18

In your opinion: would it be better to run an operating deficit and ask the government owner to pick this up or to request relief from cost charges in the first place?

34%

33%

33%

Yes, completely

Yes, to a large extent

No, or at least not significantly

Simulated data

Simulated data

19

Does your municipal government finance a local convention bureau?

50%34%

50%0%

45%50%

0%

50%33%

0%100%

11%50%50%

0%33%

50%0%

44%0%

50%

Yes, completely

Yes, to a large extent

No, or at least not significantly

North America

South or Middle America

Europe

Middle East

Africa

Asia

Australia

Simulated data

Simulated data

20

Does your municipal government finance a local convention bureau?

42%

25%

33%

No, or only in very exceptional cases

Yes, but only in-kind support

Yes, a financial support arrangement is available

Simulated data

Simulated data

21

Does your government (local or national) provide your international clients with subventions?

37%

38%

25%

Yes, practically always

Regularly but we would like to see them more often

We frequently fail to convince them of the importance

Simulated data

Simulated data

22

Are your senior government officials responding positively when invited for a congress opening etc.

0%34%

0%50%

22%50%

100%

50%33%

100%50%

45%0%0%

50%33%

0%0%

33%50%

0%

Yes, practically always

Regularly but we would like to see them more often

We frequently fail to convince them of the importance

North America

South or Middle America

Europe

Middle East

Africa

Asia

Australia

Simulated data

Simulated data

23

Are your senior government officials responding positively when invited for a congress opening etc.

Conclusionsand

Recommendations

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Many thanks for your cooperation