Why does a destination need a CVB?

Convention Bureau

Why does a destination need a convention bureau?

August 2012

Why destinations want to host meetings?

Destinations want to host international meetings because:

Business travelers tend to spend more money (3 times) Conventions are usually out of high season Convention participants are potential tourists

Promote their economy and business potentials Attract international associations and leading experts Improve international integration of local experts Create knowledge-based economy and society

Networks Builds business contacts, trade and research links

Exports Stimulates international markets for their produced goods and services

Infrastructure

Access Delivers access to new technologies and exchange of ideas

Profile Generates media attention for their country as a place to do business

Knowledge Strengthens their professional expertise

Induces business service and development (e.g. accommodation supply)

Growth Provides a world stage – “if they see it, they will invest.”

Platform

Focus

Showcases countries innovation, products and expertise

Attracts the world’s industry and thought leaders to their country

Capital Increases property values

Business Economic stimulus, jobs

Why governments invest inMeeting Industry ?

What is a convention bureau?

Convention bureau is official, non-for profit organization formed to represent a destination:

To promote destination as an attractive place for international meetings and conventions

To organize local convention industry and to be representative of the whole destination

To attract and support local experts (doctors, professors, scientists) to bid for international conventions

Establishing a Bureau

Convention bureau can be established as:

A part of the public sector (as an independent public institution or as a department of some institution)

A part of the private sector (as association of private companies from convention and hospitality industry)

Public-private partnership (as association of private sector recognized and co-financed by the governmental institutions)

Why destinations needconvention bureaus?

Destinations form convention bureaus because:

MICE clients expect thisConvention bureau provides all information that clients needConvention bureau represents whole destination, not particular interests of some companiesConvention bureau does bid and supports bidding process Convention bureau has communication with private and public sector and key stakeholders

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How Convention Bureau representsthe entire destination to MICE clients?

Key Actors in Convention Marketing

Convention Bureau

Convention Bureau

Local and National Governments: Supports the convention market through

investment in facilities Financial support for convention bureau Protocol Logistical and security support Special events permits

Unique Roles of the convention bureau: One stop shop Represent the entire destination to convention

buyers Researches potential congresses, organizes site

visits and prepares bids Supports development of exhibitions Attendance promotion at events Industry development and coordination

HotelsHotels

Convention Centres

Convention Centres

Destination Management

Companies (DMCs)

Destination Management

Companies (DMCs)

Local Host CommitteesLocal Host

Committees

GovernmentGovernment

Professional Conference

Organizers (PCOs)

Professional Conference

Organizers (PCOs)

Local Host Committee: Issues a formal invitation to the

group organizing the meeting Works with the convention bureau

during the bid Plans social programs during the

event

PCOs: Contracts with the meeting planner Handles on-site logistics – hotel

rooms, registration, housing, local transportation, sponsorship, meeting preparation, social program arrangements, entertainment, etc.

DMCs: Ground transportation Logistics Organises pre- and post- tours

and incentive trips

Hotels: Provide room blocks for bid Banquets and catering

Convention Centres: Cooperative sales

effort with convention bureau

Primary meeting facilities

Event catering

Client surveys consistently say that they will select destinations

where they can work with convention bureaus over those

that don’t have convention bureaus.

Convention bureau activities

Convention bureau organizes convention industry and has to:

Establish partnership with convention industry representatives Organize educational programs for convention industry Establish procedures in bidding processesOrganize regular meetings with industry representativesOrganize networking meetings with industry representativesEstablish advisory body and include industry representatives

GOLDEN RULE: Convention bureau has to have equal relations with all industry partners

Convention bureau activities

Convention bureau does promotional activities and should:

Create catalog of conference facilities (Meeting Planners Guide) Create web site just for the MICE clients Create presentations of conference facilities (ppt, pdf, photo) Create promotional materials (stationary, postcards, usb) Create advertising materials Create video, mobile applications …

Create unique and attractive promotional materials about

destination to attract MICE clients

Convention bureau activities

Convention bureau approaches MICE clients and should:

Participate at convention trade shows Organize sales missions to penetrate main markets Organize familiarization trips for the main clients Organize supplier-client workshops Create request for proposals Inform and help clients in all their needs

Create one stop shop system for MICE clients

Convention bureau does bidding to host international conventions:

Research possible leads and events Help local contacts to create bid document Help in the process of destination presentation and bid promotion Organize site inspections for important clients Organize local industry in bidding procedures Support congress organizers and does additional promotion

Encourage local contacts to bid for international conventions and help them organize events

Convention bureau activities

Convention bureau activities

Convention bureau represents destination in the international convention industry associations:

ICCA (International Congress and Convention Association) MPI (Meeting Planners International) DMAI (Destination Marketing Association International) SITE (Society of Incentive Travel Executives) …

International recognition in convention business, in front of clients and colleagues

Convention bureau activities

Convention bureaus care about destination development:

Create database of all contacts and communication Do statistics and promotion of results Communication with local associations and experts Communication with local media Communication with public sector representatives Initiatives about future developments

Create friendly environment that understands importance and benefits from convention business

The Convention and Exhibition Industrieshave Almost Nothing in Common with Tourism

Participant Motivations

Experienced

Participants Tourists Professionals / Business People

Tourism Convention business

Customer Needs

Buyers

Buyer Service Needs

Supply Chain

Buyer Motivations

Market Approach

Distribution Channels

Securing the Business

Size of Groups

Fun / Self Actualization Business / Networking / Learning

Tour wholesalers / Travel agents Meeting Planners / AMCs / PEOs

Reservations / Itineraries Housing / Registration / Event Services

Hospitality Industry PCOs / DMCs / Venues / Event Suppliers

Fees & Commissions Successful Meetings / Profitable Shows

Bargains High Level of Service and Product

Advertising / Marketing / Packaging Direct Sales

Travel Agents / Tour Wholesalers Corp and Association HQs / AMCs / PEOs

Strategic / Marketing Oriented Tactical / Sales Oriented

Individuals or small groups 300 – 10,000 delegates

Decision Criteria Destination Appeal Facilities / Business Links / Market Issues

Purpose of Visit Leisure Work Related

Main Economic Impact Direct Spending Trade and Investment

Tourism institutions

Not Experienced

How to establishconvention bureau?

These are the main factors necessary in the process of establishing a convention bureau:

Create a study for convention bureau establishing Educate people who will work in the convention bureau Create educational programs for convention industry Secure budget for the first five years

ICCA Rankings of International Conventions Occurring

* Serbia Convention Bureau was established in 2007

Meetings World Ranking

European Ranking

2007 * 11 64th Unranked

2010 46 43rd 23rd

2011 55 42nd 24th

Serbia

Meetings World Ranking

European Ranking

2007 * 8 168th 92nd

2010 33 55th 28th

2011 46 49th 26th

Belgrade

Source: International Convention & Congress Association (ICCA) - 2011

European Fastest GrowingMeeting Destination

Thank you!

Milos Milovanovic