Marketing Birmingham Commercial Partners Meeting 30.04.13

marketingbirmingham.com

Commercial Partners Meeting

30 April 2013

Paul KehoeChairman

Neil RamiChief Executive

Document HeadlineDocument Sub-headline

Group travel – market increase by 35.9% coaches and 37.3% visitors

Hotel occupancy - +80%, peaking at 85% in mid December – 4% increase

Hotel revenues - up by 11% on 2011 to more than £7.7 million

Christmas market footfall - 4.3 m delivering an economic impact of £85m

An integrated international campaign

Attracting more visitors

Winning new conferences & events

Securing inward investment

Integrated programmes

Programme Results

2012/13 marketingbirmingham.com

Account JobsADI Group 60Codemasters 25

Dana Spicer Europe Limited 150

Deutsche Bank 150

NAC 600Franklin and Andrews 40

Ishida 20Large automotive OEM 370

Expansions

Account JobsAcuity ETS Ltd 8Adam Stokes 20ASG Immigration Limited 10ASOS 20Auctus 30Ayogo 15Halal food company 40Business Growth Fund Plc 50CT Dent 5Dotted Eyes 50UK Medical Svs Co 100US BPO 120Hotel La Tour 100India Business Hub 3Linalis 10Lulu Group International 30Mechel services 30

Investments

Investment projects 2011-13

Nervecentrix 10One Point Three 10Owned IT 15Pata AB 10Pure Mobile 15

Sanguine Hospitality Management Company Ltd 150Skanska 32Solicitors Regulation Authority 600Waste Company 40Synapse Information Ltd 15Tinyme 1Toyota Tsusho UK 25Trowers and Hamlin LLP 25Unipres 20Vocam 5Willmott Dixon Partnerships Limited 10Yomik 10

Account Jobs

Account Jobs

NVC Lighting Technology Corporation 230Office of the Public Guardian 300Sertec Group Holdings Ltd 150ReachLocal 8Metal Pressings 150Virgin Media 150

Wesleyan Assurance Society 400

US Metallics Co 40

FDI projects 2012/13

businessbirmingham.com

Visit Birmingham achievements

Christmas campaigns

- delivered 3m visitors in 2011

- delivered 4.3m visitors in 2012 & 4%

increase in hotel occupancy

TV commercial viewed by 29m people in 2012

New York Times recognition as top 20

destination in 2012

Supported more than 20 independent cultural

festivals

Welcomed 2.5m visitors through dedicated

information service

International 2012

Domestic2012

Birmingham

Number of visitors30.9m 104m 33.5m

Visitor value £18.5bn £16.2bn £4.9bn

Average stay7.6 nights 5 nights 4.6 nights

Attracting national & international visitors

Birmingham’s visitor economy

Delivered - 10% growth since 2006

Supports - 60,000+ jobs from entry level - senior management

Generated - significant capital investment 10 new hotels in last 18 months

Case study: Christmas campaign 2012

Group travel increased by 35.9% coaches and 37.3% visitors

Hotel occupancy +80%, peaking at 85% in December (4% increase on 2011)

Hotel revenues up by 11% on 2011 to more than £7.7 million  

Christmas market 4.3 m footfall, delivering £85m economic impact

Developing inbound traffic:IrelandItaly (Rome)Sweden (Stockholm)Germany (Munich)

Digital traffic

- Ireland up by 30%

- Italy up by 1314%

- Sweden up by 487%

- Germany up by 561%

Page views increased by 15%

Growing global connectivity

City region collaboration

MIPIM 2013£540,000 of global media coverage, 30% online increase

12 capital investment enquiries

15 FDI enquiries

Site Selectors 201212 senior advisors to corporate end users

20+ commercial partners involved

Where the world meets

Sales missions - 30 national & international

Ambassador programme - generated 5

events in collaboration with Universities

2012/13 International National Total impact

New events secured

6 8 14

Bed nights generated

11,200 22,100 33,300

Est. impact £5.1m £8.2m £13.3m

Recent media coverage

Programme Highlights

2013/14marketingbirmingham.com

Business Birmingham – FDI pipeline

Business Birmingham active projects in pipeline as per March 2013

14%

7%

5%

5%

3%

5%

4%

For the first 15 companies the ROI consideration over a 10 year period from an investment value of £7.25m in grants and an administration burden of £250k is as follows:

Potential Create 3,900 jobs for Birmingham A grant per job rate of £1860 per job Increased economic activity of £843 million Generate £45 million of rates income For a £26.58m investment this project has the potential to: Create 14,286 jobs for Birmingham Increase economic activity from salaries alone by £2,500m Generate £184million of rates income

Mobile Investment Fund

Birmingham is the fastest growing city in terms of FDI attraction in the UK. WM has grown FDI levels by 21% year on year since 2007 compared to the NW at 8%

Proposal to UKTI that Business Birmingham leads on sector based strategic relationship management initiative for Automotive, BPFS and Medtech

Match funding from UKTI to resource increased account management team on its behalf and in conjunction with PA Consulting

UKTI Strategic Relationship Management

Source: FDI Markets, Financial Times, 2012

Destination Country 2009 2010 2011 2012

UK 34% 35% 32% 42%

France 15% 9% 9% 12%

Germany 15% 19% 17% 9%

Spain 7% 10% 8% 11%

Ireland 8% 9% 13% 12%

Site Specific Propositions

Key component of business development strategy to secure anchor tenants for major schemes

Detailed business cases built around specific market opportunities, i.e. LPO, JLR Supply Chain, Third Sector relocation

Specific business development strategies wrapped around each proposition, utilising own and partnernetworks and contacts

Cost model based on future developments to demonstrate high quality, low cost credentials and detailed cost savings.

Independent benchmarking and partners intelligence and research

Document Sub-headlinemarketingbirmingham.com

Barriers

Post-2012 Olympics

Aviation developments

- Birmingham Airport

Strong destination offer

culture, heritage + food

Investment in

infrastructure, retail +

public realm

Opportunities

Economic performance

issues

Policy changes by

competitors to attract

visitors

New markets opening

BRIC as inbound

sources

Limited awareness of

anything outside London

Small share of voice in a

crowded marketplace

Deterrent effect of the

visa regime

Domestic perceptions

Product + packaging

gaps

Cost

Global trends

Volume and value – to drive overnight visitors using culture as a motivator

Celebrating the next generation – 11 organisations and 70 individuals

Multi-channel campaign – Spring 2013 targeting national visitors 

Putting a spotlight on culture

Culinary summer 2013 National tourism campaign – May – July profiling Birmingham’s culinary offer and drive overnight leisure visitors

Partnership opportunities – hotels, restaurants, bars, markets, producers and festivals

Regional celebration – collaboration with the chef community and University College Birmingham to put a spotlight on the next generation

ICC Champions Trophy 2013: 5 key games, including the final, at Edgbaston

Rights package with ICC to promote Birmingham to one fifth of the world’s population

Strategic Marketing Opportunities

  Significant input to the Greater Birmingham Project

MB Board Agreement to align with GB&SLEP

LEP Board 14 march 2012 agreed MB a strategic delivery partner

Developing a Greater Birmingham positioning

SLA to be operational from April 2014

Greater Birmingham Strategy

Neil RamiChief Executive

Marketing Birmingham Commercial Partners Meeting

Andy Street, Chair of the GBS LEP

30th April 2013

A busy few months…

• Signed City Deal - Sep 12• White Paper Consultation - Oct 12• No Stone Unturned - Oct 12• Offer to ‘pilot’ NSU - Nov 12• Prime Minister’s Blessing - Dec 13• Greater B’ham Project - Mar 13• Govt Response to NSU - Mar 13• Strategy for Growth - May 13• Spending Review - June 13

Plus delivering the LEP’s wider agenda…..

No Stone Unturned

• Launched at the Town Hall• 89 recommendations • Big ideas:

• Single Pot of funding

• Localise EU funding

• Legal status for Chambers

• Unitary local govt

• Conurbation Mayors

• Local Growth Teams

• LEP role in skills

Opportunity for real change.....

So we stepped forward…

Greater Birmingham Project

• Intense Review• Weekly visits by Lord

Heseltine • 8 workstreams• Engagement from across

private, public and voluntary sectors

• Local and national input

Current complexity exposed…

Single Pot opportunities

• Fit for purpose business support• Deliver growth plan for the M42 Economic Gateway• Grow Birmingham Airport• Create Sector Acceleration Zones

– Life Sciences, Advanced Manufacturing, Digital & Creative, Enterprise Belt

• Build world-class skills system • Expand collaborative & innovative procurement• Pilot ‘Gainshare’ scheme (earn-back)• Establish a Neighbourhood Economic Growth Project• Accelerate roll-out digital infrastructure

Media Launch

Government Response

• Agreed 81 of 89 recommendations • Establish a ‘Single Local Growth

Fund’• Streamline management of EU

funding• Set up Local Growth Teams • Ease regulatory enforcement• Reform planning • Establish 11 Industrial Strategy

Partnership Councils• LEPs to work out business support • LEPs responsible for setting local

skills strategies

Our work is not yet done…

Decisions still to influence…..

• Scale of the Single Local Growth Fund (SLGF)• Proportion of SLGF that is open to competition (vs

proportion allocated notionally to each LEP)• How process will work in overlapping areas• Format of the LEP Growth Plan• Assessment of plans • Amount of strings attached to funding• Monitoring process

Strong building blocks…

• Strategy for Growth has wide support• Sets out our Strategic Enablers:

1. Growing the number of successful businesses

2. Building on our sector strengths and opportunities

3. Stimulating innovation in products, processes, services and business structures

4. Improving our skills talent pool

5. Improving physical and digital connectivity

6. Optimising the economic value of the region’s assets

Next stage

• Develop Strategy into a “strategic growth plan” for accessing the SLGF, showing:• Level of ambition• Clarity of prioritisation• Evidence of deliverability and capacity• Support and commitment of partners• Leverage of resources• Strength of governance

• Align to EU Investment Strategy

Rallying call….

• We are at the forefront of this agenda but need to maintain momentum

• Real opportunity for devolution but still arguments to be won and doubters to convince

• Overwhelmed by support for Gr B’ham Project – need to build on this to develop our SLGF bid

• Welcome ideas, input, expertise to help make the best case for Greater Birmingham

Questions & Answers