ANNUAL REPORT 2014 / 2015
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1 ANNUAL REPORT 2014 / 2015
2 CONTENTS 03. HIGHLIGHTS 2014 / CHAIRMAN S REVIEW 05. CHIEF EXECUTIVE OFFICER S REPORT 06. SALES & MARKETING 08. EVENT SERVICES 09. CORPORATE SERVICES 10. MEMBERSHIP 12. BOARD OF DIRECTORS 13. BUREAU TEAM 14. FINANCIAL REPORTS
3 OPERATIONAL OVERVIEW HIGHLIGHTS 2014 / events secured for the year attracting 180,231 bed nights. $150.6 million of future business generated at a return on investment on total budget of 79:1. This result generates and supports 1,372 industry jobs. 32% of events won will be held in the low tourism months. Completed 8 successful Conventions Adelaide bids, which will generate a forecast $39 million in economic benefit and 50,000 bed nights. $260 million of pipeline activity is currently being developed. Membership contributed $1.069 million in support of business development activities. Launched a new award winning interactive pre/ post touring booking portal. $398 million of future business is held on the books.
4 CHAIRMAN S REVIEW PHIL BAKER The Bureau s 41 st year has set new records across the board. The Board commenced the year developing a new three year strategic plan. The plan is simple and effective focussing on maintaining an efficient and high performing Bureau, delivering an increase in economic benefit to stakeholders and members and to promote the benefits of business events and the visitor economy. A particular focus of the Board has been the investigation of a sustainable revenue model to strengthen the future of the Bureau and members. The process is critical due to the trend of declining public revenue. Many options are being investigated. The Board is delighted to announce the Bureau is tracking strongly against the plan and is delivering on key indicators. The high performing Bureau Team has taken bid activity to another level this year increasing activity by an incredible 44%, resulting in 137 submissions. Through this activity 119 events were secured that will underpin an impressive 180,000 bed nights and generate a record $150 million of future business for members and the destination. This is an outstanding result by the Bureau in collaboration with stakeholders and members and pleasingly will deliver 1,372 jobs to the visitor economy during challenging economic conditions for the state. One factor behind this success is that Adelaide is experiencing a surge of interest due to the vibrant city agenda through the investment in public and private infrastructure across the City and particularly the Riverbank. In addition, the State Government is to be commended on growing the convention bid fund that is enabling the destination to bid and win events where once it couldn t compete. This is a great story and pleasing to see the perception of Adelaide changing in the eyes of event decision makers. However, more can and must be done to drive business events to the destination, corporate and association events. Asia is a key opportunity and is one of the reasons why Tourism Australia s global Dreamtime event in December 2015 is so important for the destination. For industry, there is also the simple equation that more demand must be generated to compliment the new accommodation and venue supply. This year is one for the record books and the Bureau greatly appreciates the support and collaboration of the South Australian Tourism Commission and Adelaide City Council. The strength of the Bureau is its members and again we thank them all for their support and contribution to this record breaking year. The return on investment to stakeholders and members is equally impressive. The Bureau s high performance in 2014/15 generates a return to Government of 188:1 and Adelaide City Council 500:1. The return on investment to members on total budget/operations was 79:1. Phil Baker Chairman 4
5 CHIEF EXECUTIVE OFFICER S REPORT DAMIEN KITTO 2014/15 has been a very successful year for the Bureau and industry. The Bureau increased bidding volume to secure 119 events that will attract a forecast 43,990 delegates and generate $150.6 million for the city and state economy. This result is testament to the productivity of the Bureau team along with the collaboration with members and stakeholders, the South Australian Tourism Commission and Adelaide City Council. Key factors contributing to the economic result include: The number of bids submitted is up 44% on target The number of delegates secured is 46% up on target A forecast 180,231 room nights were secured, which is 28% up on target 32% of events won will be held in the low tourism months This level of activity could not be undertaken without the commitment and support of industry members who contributed $1.069 million toward collaborative business development activity. The Government s further commitment to a 2-year $5 million bid fund to attract large conventions aligned to state key economic sectors is a great boost in the ability to attract large conventions to the City. The Bureau works in collaboration with the South Australian Tourism Commission and the Adelaide Convention Centre and already this fund is delivering strong results for industry. The bio-medical precinct is a key focus and already the Medical Conveners Destination Showcase held in April 2015 is generating many opportunities for the future. For this reason 2016 and 2017 is looking promising for industry. Infrastructure developments along the Riverbank and across the City have generated significant interest, the Spotlight is on Adelaide. To this end, Adelaide is hosting three key trade events the second half of 2015 with each having the ability to deliver future events and delegates to the City. The National Associations Forum Conference was held in July and the Professional Conference Organisers Convention in December will see hundreds of the most influential business events decision makers in the country visit Adelaide to meet, network with local industry and tour facilities. Furthermore, Adelaide was named as the host city for Dreamtime 2015, Tourism Australia s premier showcase event that will attract around 140 international corporate event and incentive travel buyers and trade media. These events will further assist in the need to drive demand at a time that a supply of meeting space and hotel rooms continues to increase. The year has also been one where long term staff have been presented with opportunities to advance their careers. We thank and wish Martin Radcliffe, Daniel Porter and Ketrah Eaton after their exceptional service to the Bureau. 2014/15 had delivered fantastic results, everyone is to be commended on this record year! The Bureau is currently working on a pipeline of activity worth $260 million. The Conventions Adelaide Ambassadors continue to be the key drivers of large conference opportunities, the 2017 International Astronautical Congress will attract 3,000+ delegates and generate $18 million for the economy. It is the largest international conference that Adelaide has secured to date. Damien Kitto Chief Executive Officer 5
6 SALES & MARKETING IN-MARKET ACTIVITY In 2014 / 15 the Adelaide Convention Bureau sales team conducted 19 sales missions into key national and international markets, maintaining a high level of activity during an exciting period in the destination s development. Targeted dialogue took place with decision makers and high level influencers from a range of associations, corporations, PCO s and incentive houses served to build relationships, identify and develop bid opportunities, and ultimately convert bid submissions. On a tight budget the Bureau structured the team and its output so as to ensure the highest possible level of bidding activity. As such a record 137 event bids were submitted, up 44% on budget and 28% on the previous year. The Conventions Adelaide program developed further as the state s key strategic initiative, with 11 new leaders added to its official group of high-level Ambassadors. The Bureau worked closely with Ambassadors and industry partners to drive a high level of business development activity. Furthermore the program delivered the inaugural Medical Convenors Showcase, engaging 40 heads of medical associations from across Australia connected to a pipeline of opportunity of over $100 million. Results wise 8 international bid wins and a further 5 major strategic national wins (all connected to the state s economic and strategic priorities) reinforce the ongoing importance of the Conventions Adelaide program. The associated sales pipeline is also healthy for the period ahead at $260 million. The efforts of the Bureau and key partners to secure major conventions were also boosted further by the announcement by the Government of South Australia of a further $5 million toward a 2-year destination bidding fund. The Bureau was successful in securing strong engagement from key industry partners (e.g. Tourism Australia and SATC) to help drive the continued development of the Incentives Adelaide program. This was underpinned by familiarisation activity, along with targeted marketing and sales activity. During 2014 / 15 a number of national and international decision makers were hosted by the Bureau for targeted site inspections and activities which were also strengthened by the contribution of member operators, stakeholders and political influencers. Delegate boosting activity continued, with the Bureau working with key industry partners to support the event materialisation efforts of clientele. This included application of marketing resources, and direct promotion at related conferences and exhibitions, both in Australia and overseas. Such work was greatly assisted by the strong support of key industry partner Business Events Australia (a subsidiary of Tourism Australia). Activity 5 sales missions to Sydney. 6 sales missions to Melbourne. 3 sales missions to Brisbane. 3 sales missions to Canberra. 1 sales mission to New Zealand. 1 sales mission to China 137 bid submissions. Destination SA - Adelaide (trade event and associated familiarisation program), March Inaugural Medical Convenors Showcase - Adelaide, April AIME (Asia Pacific Incentives & Meetings Expo) - Melbourne, February IMEX (International Meetings Events & Incentive Expo - Frankfurt, May Business Events Australia North Asia Showcase, Shanghai, April 2015 PAICE (Pacific Area Incentives & Conference Expo) - Auckland, 19 November Associations Forum - Canberra, July Hosted a familiarisation for the China market in conjunction with Tourism Australia and incorporated as part of Destination SA. The 11th edition of Destination SA was delivered, with this key showcase serving as the focal point of in-market activity to profile the destination and convert bid opportunities. 53 handpicked event buyers and 4 media representatives were hosted across an interactive program showcasing the city and regional locations. 70 State based event organisers were also engaged within the program. $21.5 million in economic benefit (10 events) has already been confirmed in connection to hosted buyers, with a further $13 million (8 events) in the pending pipeline. 6
7 SALES & MARKETING DEVELOPMENT OF KEY INITIATIVES Conventions Adelaide The Conventions Adelaide Program continues to increase Adelaide and South Australia s ability to attract major national, Asia Pacific, and international association conventions that are aligned with the state s primary areas of industry and research (e.g. health and medical research, advanced manufacturing, environmental management, education and agriculture). This is achieved via a highly targeted and strategic state-wide cooperative approach from key industry contributors and beneficiaries. The Program continues to attract high level support from across industry including Government Ministers and executive level Government officials, the three universities and state industry leaders. Currently, 80 Conventions Adelaide Ambassadors contribute to the Program and assist in the development of sales leads and bid submissions to win conferences for the State. Key activities undertaken by the Ambassador group during the year include: Inaugural Medical Convenors Showcase engaging 40 heads of medical associations from across Australia in connection to $100 million of major international convention opportunities. Completed 8 international successful bids, that will generate a forecast 50,423 hotel bed nights and $39 million in economic benefit for the state. 11 new Ambassadors welcomed to the program. Industry Sector presentations. Examples of events secured through the Conventions Adelaide Program in 2014 / 15 include: 68th International Astronautical Congress delegates. International Council on Systems Engineering Symposium delegates. World Rose Convention delegates. World Hapkido Seminar and Championships delegates. Digital Marketing Platform To ensure the best engagement and capture of current and prospective clients, along with industry partners, the Bureau continued a strong focus across its digital marketing platform. Key initiatives included : Launched at AIME 2015, an interactive pre/post touring booking portal, facilitating direct to member booking by delegates and organisers. This is an Australian first and winner of the inaugural Australian Association of Convention Bureaux (AACB) Innovation Award. Development of an enhanced website design and structure, with a focus on stronger user engagement, new content and ease of use. This was launched in August Average website traffic of 600 visitors per week. (up 20% on the previous year). Visitors are spending longer on the site and viewing more pages. Development of a new client digital newsletter to launch in conjunction with the enhanced website. Growth of the Bureau s social media platform, with introduction of Instagram and a designated strategy and champions for key channels of Twitter and Facebook. Developed a base of 631 twitter followers, up 57% on the previous year. New Now is the Time publication showcasing the state s latest infrastructure developments. Launched at Associations Forum in July New digital Adelaide Planners Guide, with more interactive and rich media features than ever before. Across all initiatives there has been significant scope to profile and engage members. As mentioned the Government of South Australia s move to commit a further $5 million toward a 2-year destination bidding fund will greatly support the Conventions Adelaide program s objectives and outcomes going forward. This is of course driven by the significant infrastructure investment across the state, and in particular the multi-billion dollar investment to Australia s best connected business, events and entertainment precinct on Adelaide s Riverbank. 7
8 EVENT SERVICES EVENT SERVICES The Bureau s Event Services function directs and communicates opportunity to membership linked to events already destined for the state (i.e. those that do not require the services of a competitive bidding process). Results for 2014 / events were placed throughout membership representing a forecast economic benefit of $32.4 million to the state generating 54,695 bed nights. Examples of some of the business events directed through the business placed function include: Jobs Australia National Conference, Oct 2015, 350 delegates. Australasian Ornithological Conference, Nov 2015, 300 delegates. Australasian Society of Clinical Immunology and Allergy) 26th Annual Scientific Meeting, Sept 2015, 500 delegates. Initiatives in 2014 / 15 Event Solutions newsletter - a quarterly publication aimed at state based event organisers from the association, corporate, government and university sectors featuring member news and updates. Invitation for targeted state buyers to attend Destination SA 2015 SA Event Professionals Networking function held at the Mayfair Hotel for 50 local event organisers from the state s association, corporate, government and university sectors. Targeted promotion of the Business Event Services function via the business development activities of the Conventions Adelaide Program. 8
9 CORPORATE SERVICES Hello and Goodbye The Bureau welcomed an additional team member during the year. Lani Strathearn was appointed to the role of Business Development Executive in May 2015 and is responsible for Canberra, Brisbane and New Zealand markets. Helen Hobbins was appointed to a newly created role of Manager, Events and Sponsorship in late June Helen brings strong event management and sponsorship experience from her role at the Melbourne F1 GP. Helen is also familiar with Bureau operations having previously worked at Gold Coast Convention Bureau. Daniel Porter left the Bureau in April 2015 following 5 years of service to take up the role of SA Membership and Sponsorship Manager at the Property Council Australia - SA division. Ketrah Eaton left the Bureau after 5 years followed her heart and fiancé Rob Parsonage in May 2015 to the West as he pursues his career in the Air Force. Public Relations Bureau stories have been covered in newspapers, industry trade magazines, in news articles and destination feature spreads. Media partnerships have been formed with writers and journalists from Australia, New Zealand and Asia with a number attending and covering Destination SA. The Bureau would like to thank Sue Hill, Foster Hill PR for her ongoing support and fantastic contribution to our good news stories. Planner s Guide The Planner s Guide was uploaded onto the website and distributed to a database of 7,000 Australian and international business events professionals (qualified contacts) and via social media channels. The Planners Guide was also loaded to USBs and taken on all sales calls, trade shows and other in-market missions. After 7.5 years of excellent service Martin Radcliffe resigned in July 2015 to take up the role of General Manager Mayfair Hotel. Finance The Bureau delivered a surplus of $49,047 for 2014/15. Although always a challenge working within budget limitations the Bureau managed to work well with the resources at hand and delivered an excellent business activity level for members. The Bureau continues its strong relationship with key stakeholders, South Australian Tourism Commission and Adelaide City Council. Their funding contribution and ongoing support strengthens the Bureau s capabilities in securing events for the state and city. The 2014 grant year application for an Export Market Development Grant (EMDG) was approved receiving $30,665 from Austrade. Bid Development Funding Bid development funding amounting to $101,000 was received by relevant government departments. This additional funding was for specific bid opportunities, in particular the International Astronautical Congress. 9
10 MEMBERSHIP Results The Adelaide Convention Bureau has a strong membership base of 177 members who work in collaboration to showcase the destination to national and international event organisers and delegates. Membership subscription fees and in-kind support distributed across Destination SA, site inspections and familiarisation programs amounted to $1.069m of support from industry which highlights the exceptional support the Bureau receives from members. Contact Members were either visited or contacted during the year, including regional visits to the Barossa, Adelaide Hills and McLaren Vale. Throughout the year there were 6 member product presentations and 15 sales team site inspections. This ensured the Bureau team were kept up-to-date and educated on member products and services. Membership Events & Activities The Bureau s aim is to continually improve the quality and attendance of events, facilitate member to member networking opportunities, educate members on products available and provide numerous avenues for various business opportunities. In 2014/15, the following events and activities were held by the Bureau for members: 5 Business Hours - InterContinental Hotel, Glen Ewin Estate, Adelaide Oval, Adelaide Convention Centre (Cellar Door Wine Festival) and Rydges South Park 5 member training days held in the Bureau offices - including idss training and Digital Marketing Opportunities. Platinum Lunch - Mayfair Hotel Annual Breakfast - Sanctuary Adelaide Zoo Annual General Meeting - SAHMRI Highlights Through the Bureau s increased profile, successful results and various initiatives, 20 new organisations joined the Bureau in 2014/15. An online platform for members to register and pay for membership events has been well received. Attendance numbers increased at Bureau networking events. Organisations outside of membership were also invited to attend, which allowed further business promotion and opportunities for members. Destination SA - which included a Cocktail Reception at the Adelaide Convention Centre and Gala Dinner function at the Adelaide Oval. A familiarisation program saw delegates experience various regional products. Platinum and Gold members were provided the opportunity to co-exhibit at AIME (Asia Pacific Incentives & Meetings Expo) and PAICE (Pacific Area Incentives & Meetings Expo) in New Zealand. The early communication to members regarding Membership Renewal, Destination SA involvement, Planner s Guide advertising and Digital Marketing advertising (packaged information) resulted in a positive response and financial support for the Bureau. Outlook The Membership team is looking forward to an exciting and eventful year ahead. Key activities/initiatives taking place in 2015/16 include: Introduction of a new membership structure to replace the mineral levels (Platinum, Gold, Silver and Bronze) with categories and sector specific groups. Refreshed website and increased social media presence allowing members to gain additional exposure to the business events industry. Continual promotion of the Delegate Booking Portal allowing members greater exposure to delegates visiting Adelaide, South Australia. Adelaide, South Australia to host Dreamtime in December 2015 providing members the opportunity to be involved. 10
11 MEMBERSHIP The Bureau greatly appreciates the support of key stakeholders: PLATINUM MEMBERS 2014 / 15 Accommodation Hilton Adelaide Hotel Grand Chancellor Adelaide on Hindley InterContinental Adelaide Novotel Barossa Valley Resort Oaks Embassy Port Lincoln Hotel Stamford Grand Adelaide Stamford Plaza Adelaide The Playford Adelaide Airlines Emirates Malaysia Airlines Qantas Singapore Airlines Convention - Exhibition - Venue Adelaide Casino Adelaide Convention Centre Adelaide Oval Functions & Events Adelaide Town Hall National Wine Centre Products & Services Adelaide Expo Hire Big Screen Video Blanco Food & Events Epicure Catering MASE Pty Ltd Novatech Creative Event Technology Penfolds Barossa Valley Estate Penfolds Magill Estate Renniks Hire Staging Connections Woodstock Wine Estate Professional Conference Organisers All Occasions Group Arinex ICMS ICE (International Conferences & Events) Australia MCI Plevin and Associates 11
12 BOARD OF DIRECTORS Phil Baker Chairman Alec Gilbert Vice-Chairman Chief Executive Officer Adelaide Convention Centre Natasha Milani Councillor Adelaide City Council Proxy Anthony Williamson David Slama Jim Kouts Group Manager Executive and Non-Executive Director IPR GDF Suez Australia Anne-Marie Quinn Managing Director All Occasions Group John Culshaw Chairman Pentroth Group BUREAU TEAM Corporate Services Damien Kitto - Chief Executive Officer Mary White - General Manager Lisa Hodshon - Membership Manager Ketrah Eaton - Project Executive (resigned May 2015) Cindy Hynes Partner WBH Legal Ian Horne General Manager Australian Hotels Association (SA Branch) Sales & Marketing Martin Radcliffe - Director of Sales & Marketing (resigned July 2015) Kathryn Pullman - Manager - Business Development & Conventions Adelaide Gemma Nelson - Business Development Manager Daniel Porter - International Business Development Manager (resigned April 2015) Tim Boundy - Business Development Manager Lani Strathearn - Business Development Executive (commenced May 2015) Lavender Feng - Business Development Executive Marcella Visentin - Marketing Officer Nick Blight - Event Services Officer Tess Kidman - Sales Team Coordinator 12
13 BUREAU TEAM
14 FINANCIAL REPORTS
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38 Aston House Level 1, 15 Leigh Street Adelaide South Australia 5000 Tel +61 (0) Major Supporters
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