Slide1: EXSA – Annual Conference 2007 CENTRE STAGE GEARING UP FOR GROWTH Rick Taylor


EXSA - Gearing up for Growth: Tourism growth is unstoppable and will grow to 1.6 billion by the year 2020 Past 10 years – 53% growth in all business trips, exceeding overall tourism growth rate Conference, Exhibition and Incentive travel segments predicted to grow at a faster rate than any other tourism sector up to 2016 EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: Tourism - US$ 5 billion a day business by the year 2020 Revenues from international business tourism estimated at 45% of total international tourism income by 2020 Value estimated at US$ 672.5 billion (10.4%) annually Growth predicted at 4.2% per annum between 2007 and 2016 EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: Long haul travel predicted to grow from 18 – 24% by 2020 China – No 1 travel destination by 2020 China and Korea – new and serious players in business tourism UNWTO Governments globally are investing in infrastructure development and raising their game in the international conference market EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: 60% increase in International Association meetings over past 10 years World / International – most important rotation group (+50%) Europe lion’s market share – stable Asia growing – now second largest North America market share – declining Africa – 2.4% of world market share ICCA 2006 EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: GLOBAL TRENDS Increasing demand for exhibition space More breakout space required due to increasing emphasis on educational objectives of meetings Women Emphasis on relationships and safety ‘Green’ conferencing EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: GLOBAL TRENDS Integrated infra-structures ‘Headquarter hotels’ - next door An essential pre-requisite Food with a story – ‘African cuisine’ Technology RFID Virtual Trade Show – enhancement not replacement EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: GLOBAL TRENDS 2006 Typical Trade Show: Smaller, more targeted Vertical rather than horizontal Fewer mega-shows, more specialty EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: Trade Show Industry back to pre-2000 levels in all four sectors: Revenue Square Meterage No of exhibiting companies No of professional attendees EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: RECENT GLOBAL DEVELOPMENT US growth strategy: 93 new and upgraded facilities since 2001 Vancouver ICC: to triple in size by 2008 China: rumoured to be building 100 new convention centres by 2020 South East Asia: most advanced facilities, largest column free halls, most flexible meeting rooms, self-contained convention cities EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: CENTRE STAGE Europe’s largest: Frankfurt Germany 321,000m² exhibit halls, seating 10,000 USA’s largest: McCormick Place, Chicago 204,386m² exhibit halls, seating 10,000 Asia’s largest: Suntec Singapore 93,000m² exhibit halls, seating 12,000 EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: THE AFRICAN STAGE South Africa: The Big 6 Kenya: Kenyatta ICC 20,000 m², seating 5,500 Cairo: Cairo ICC 13,000m², seating 6,000 Zambia, Tanzania, Nigeria, Botswana, Namibia, Zimbabwe, Morocco, Ghana, Senegal, Tunisia EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: South Africa – 0.5% of world market share Ranked 32nd top convention country Leading Meetings destination in Africa > 40% of continents market share Business tourism worth ZAR 21 bn ICCA 2006 EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: CENTRE STAGE IN AFRICA – SOUTH AFRICA 1,272 Venues 100 Graded Venues ( 8% ) EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: CENTRE STAGE IN AFRICA – SOUTH AFRICA Convention Centres: Expansion: Durban, Cape Town, Expo Centre Johannesburg New: Tshwane, Port Elizabeth, Bloemfontein As is: Sandton, Gallagher, Emperors, Sun City EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: MPI 2006 FUTUREWATCH Demand for meeting space will outpace supply It is a question of not whether to, but how best to expand! Large and In Charge Small is the New Big 2nd and 3rd tier markets Boutique centres EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: Organisations are looking for: Greatest number of attendance Value conducive to budget EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: ‘Simply having a functional conference facility in an appealing destination is no longer enough to secure business.’ EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: TACTICS TO GENERATE NEW AND REPEAT BUSINESS Maximise use by having concurrent shows Expansion CBs and Centres join forces – representatives teaming up on marketing efforts Increased Regional focus – by CBs in smaller markets EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: TACTICS Great service = repeat business New business via word-of-mouth and referrals Desire of the area to create the infra-structure and destination brand The right messaging and the right marketing Ability to identify niche markets for new business EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: Getting Down to (Show) Business: Return on Investment Return on Objectives Return on Relationships EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: ‘Exhibition organising is a creative enterprise activity which, to survive, has to stay at the leading edge of marketing.’ EXSA - Gearing up for Growth


EXSA - Gearing up for Growth: THANK YOU Rick Taylor 082 820 2265 rick@thebusinesstourismcompany.co.za EXSA - Gearing up for Growth