PwC Sports, Convention

1
PwCSports, Convention Tourism Services

• Trends in Convention Center
• Performance Development
• FACVB Destination Marketing Industry Summit 2006
• Robert V. Canton

June 22, 2006
2
Discussion Outline

• Convention Center Industry Trends
• Convention Center Performance Trends
• Performance Measurements
• Options for Future Development
• Q A

PwC
3
According to Dr. Sanders, author of the
infamous Brookings Institution Report

• Industry in permanent state of decline due to
  fundamental changes in how business is done
• Convention centers do not deliver economic
  impacts as promised
• Investment in convention center headquarters
  hotels is throwing good money after bad

4
According to Dr. Sanders, author of the
infamous Brookings Institution Report

• Industry in permanent state of decline due to
  fundamental changes in how business is done
• Convention centers do not deliver economic
  impacts as promised
• Investment in convention center headquarters
  hotels is throwing good money after bad

Your reports should be tailored to address these
issues head-on. Effective performance measurement
is critical.
5
Convention/Trade Show Exhibit Space and GDP
Growth RatesSource Tradeshow Week, U.S.
Department of Commerce
6
Convention/Trade Show Exhibit Space and GDP
Growth RatesSource Tradeshow Week, U.S.
Department of Commerce
Gap closes in 2004 and 2005
7
Convention Trade Show Growth Rates
Attendance and GDP
PwC
8
Convention Center development is long process
PwC
9
Convention Center development is long process
?
PwC
10
Convention Center development is long process
Many Began Development Process in 1997
PwC
11
Convention Center development is long process
SignificantDevelopmentSlowdown Evident
PwC
12
Expansions will Far Outpace New Centers
PwC
13
New Exhibit Space Under Construction
PwC
14
New Exhibit Space Under Construction
PwC
15
2006 PwC ConventionCenter Report22nd
YearPerformanceBenchmarkingSurvey
16
Key Performance Metrics

• Exhibit Hall Event Volume
• Exhibit Hall Event Attendance
• Exhibit Hall Occupancy
• Ballroom Occupancy
• Space Rental Rates
• Food Beverage Revenues

PwC
17
Classifications by Size

• Large More than 500,000 Ft.2 Exhibit Space
• Medium 100,000 - 500,000 Ft.2 Exhibit Space
• Small Less than 100,000 Ft.2 Exhibit Space

PwC
18
Participant Distribution
By Exhibit Space
PwC
19
Classifications by Destination

• Gateway More than 30,000 hotel rooms in MSA
• (Las Vegas, Dallas, Orlando, Atlanta)
• National 15,000 30,000 hotel rooms in MSA
• (Charlotte, Memphis, Vancouver)
• Regional Less than 15,000 hotel rooms in MSA
• (Spokane, Madison, Bellevue)
• Or
• A Secondary Center in a Gateway Destination
• (Cobb Galleria in Atlanta Metro)

PwC
20
Participant Distribution
By Destination Type
PwC
21
Exhibit Hall Occupancy
Conventions Trade Shows
2005
2004
2003
PwC
22
Exhibit Hall Occupancy
Conventions Trade Shows
2003
2004
2005
PwC
23
Conv. Center Performance Measures
PWC
24
Conv. Center Performance Measures
PWC
25
Conv. Center Performance Measures
PWC
26
Conv. Center Performance Measures
PWC
27
Conv. Center Performance Measures
PWC
28
Conv. Center Performance Measures
PWC
29
Conv. Center Performance Measures
PWC
30
Alternatives to Convention Center
PWC
31
Exhibit Hall
PWC
32
Lester E. Palmer Events Center(Austin, TX)
33
Lester E. Palmer Events Center(Austin, TX)
34
Exhibit Hall Generalities

• 100,000 square feet of contiguous exhibit space
  with limited meeting space.
• Could host 10 trade shows, 20 consumer shows and
  50 other events.
• Attendance per year approximately 100,000.
• Room nights per year approximately 25,000.
• The development of an exhibition hall does not
  necessarily assume or require the development of
  a headquarters hotel.

PWC
35
Conference Center
PWC
36
Emory Conference Center (Atlanta, GA)
37
Conference Center Generalities

• 30,000 square feet of total leasable function
  space and 300 hotel rooms.
• 60 or more occupancy driven by single-property
  events.
• Up to 25 conventions (smaller than Convention
  Center) and 300 meetings annually. The events
  could attract 45,000 attendees and generate
  40,000 room nights.
• A private developer or institution (University)
  should be sought. Public investment may be
  needed.

PWC
38
Convention Hotel
PWC
39
Norfolk Marriott Waterside(Norfolk, VA)
40
Convention Hotel Generalities

• 40-50,000 square feet leasable and 400 rooms.
• Approximately 60 of occupancy could be expected
  to be driven by group events. Primarily
  single-property events.
• Could host up to 25 conventions (smaller than
  traditional Convention Center) and 300 meetings
  and events annually. Could attract 62,000 room
  nights from group events.
• Private investment should be sought, but likely
  would require significant public involvement.
• Significant opposition.

PWC
41
Multi-Purpose Center
PWC
42
Multi-Purpose Center Characteristics

• Flexible space used for a variety of exhibition,
  trade, convention and meeting events.
• Column-free spaces can be used for exhibitions,
  ballroom, or sporting events.
• Many include a variety of configurations and
  meeting options such as breakout space,
  auditoriums, theaters, sports arenas, etc.
• Quality of finishes could vary, depending on
  demand characteristics (meeting vs. sports focus)

PWC
43
South San Francisco Conference Center (South San
Francisco, CA)
Meeting-Focused
44
South San Francisco Conference Center (South San
Francisco, CA)
45
Alario Center (Jefferson Parish, LA)
Sports-Focused
46
Alario Center (Jefferson Parish, LA)
47
Multi-Purpose Center Generalities

• Maximum flexibility, featuring 70,000 to 75,000
  contiguous sq. ft. on ground level.
• Approximately 50,000 square feet of column-free
  exhibit space connected to a 20,000 square foot
  ballroom room by a movable air wall.
• To broaden scope of events, telescopic seating
  should be included. Seating capacity could total
  up to 7,000.
• Could host 15 conventions and trade shows, 15
  consumer shows, 15 assembly events, 15 sporting
  events and 200 meetings and other events.
• These events could attract approximately 200,000
  attendees and generate approximately 60,000 room
  nights.
• Does not necessarily assume a headquarters hotel
  but would increase room nights.

PWC
48
Be Realistic/Open About Your Expectations

• Is there demand for a convention center or is
  some other high-impact development best for your
  community? Keep options open during feasibility
  stage.
• What building program and other destination
  characteristics does your destination need to
  compete for and accommodate that demand?
• What are the realistic economic implications
  associated with the development and operation of
  such facilities?
• Beware of intention surveys.

PWC
49
PwCSports, Convention Tourism Services

• Thank You!
• Robert V. Canton, Director
• PwC Sports, Convention Tourism
• [phone]
• robert.canton_at_us.pwc.com

June 22, 2006
PwC