1
Best Practices for Convention andVisitors Bureau
Georgetown University: McDonough School of Business
Cristina Beauchamp, Jill Burkholder, Chrissy Kousin,Hyeong Bok Lee, Jon Loewenstern
Business Issue and Objectives
2
Agenda
I. Tourism industry I. Stakeholder Relations II. Marketing & SalesIII. Revenue and Budget
I. Stakeholder RelationsII. Marketing & SalesIII. Revenue & BudgetIV. Going Forward
3
4
Overview of Tourism Industry inVietnam
Tourism business in Vietnam has seen extraordinarygrowth, but has slowed down due to the global economicdownturn.
5
Source: General Statistics Office of Vietnam (2008)
Number of Foreign Visitors to Vietnam
95 96 97 98 99 00 01 02 03 04 05 06 07 08
13511607
17151520
1781
21402330
26282429
2927
34773583
4229 4235
CAGR(1995-2006) = 10.3%
“In 2009, growth rate in visitor numbers is expected to fall for the first time since2003”
Unit::1,000
Vietnam tourism industry is driven by tourists fromNortheast Asia. Demand for multi-purpose travel willincrease in the future.
6
Malaysia
15%
China
11%
S.Korea
10%
USAJapan
9%
Taiwan
7%
Australia
6%
ThailandFrance
SingaporeCambodia
Others*
4%4%4%
22%
Visitors by Country
Total Visitors in 2008: 4,235,800
Visitors by Purpose
* Others comprise over 20 countries which have less than 2% share
Tourism
61%Business20%
Visitingrelatives
12%
Others
7%
Total Visitors in 2008: 4,235,800
Global average for tourism purpose is 52%, and 16% for business
Source: General Statistics Office of Vietnam (2008)
The convention industry has a significant impact on localand regional economies, benefiting stakeholders andstrengthening buying power.
Hotel
$645
Retail Store
$355
Restaurant
$226
Entertainment
$182
PersonalService
$163
Bizconsumption
$163
Travel
$156
Transportation*
$79
Who benefits?
Ex: Korean Convention AttendeeAverage Expenditure: $1969
Source: Convention Industry in South Korea: Economic Impact Analysis * Local transportation only
Economic Impact
Direct Spending: $79.8Million
Indirect Spending: $19.5Million
Induced Spending: 19.2Million
Source: HVC CCTC Market Study (2009)
Ex: Macomb Convention Center(US-Michigan)
Spending: $118.5 Million
7
Other countries have recognized the benefits of theconvention industry and have made many efforts to attractbusiness to their respective cities.
Rank City# of
meetings% of all
meetings
1 Singapore 637 5.75%
2 Paris 419 3.78%
3 Brussels 299 2.70%
4 Vienna 249 2.25%
5 Barcelona 193 1.74%
6 Tokyo 150 1.35%
7 Seoul 125 1.13%
8 Budapest 116 1.05%
9 Copenhagen 104 0.94%
10 London 103 0.93%
Top Intl. Meeting City in 2008*
Source: UIA, Intl. Meeting Statistics for Year 2008
Trends in Competition for Convention Hub
8
! Focus on Asian convention marketwith aggressive investment
! Thailand: $78 million in tourismpromotion
! Malaysia: $80 million in tourismpromotion
! Develop Tour-Convention product
! Utilize natural tourist attractions toattract business conventions
! Establish exclusive organizationpromoting convention industry
! Government organization + Privateorganization
Established Northeast players are facing competition forthe Asian convention market from Southeast players, whoare making aggressive investments.
Singapore
• SE Asian market focusedmarketing
• Huge investment in infrastructureincl. airport, hotel
• Strength in air transportation
China
• Macao: Casino + Convention• Hainan: - Positioning as Eco-friendly site - Intl. org meeting focused
Malaysia
• Established “MyCEB”, specialorganization for MICE industry
• 5% of all visitors are for MICE• Target 50% growth until 2011
Hong Kong
• Established “MEHK”• NE Asian market focused
marketing
• TCEB: Private-Publiccooperative planning inconvention industry
• Allocate $30 million into TCEB• 7-year strategic plan for
convention
Thailand
Indonesia
• Designate MICE industry asfuture growth driver
• Successfully completed mega-intl. meetings ex) APEC
Asian Countries Competition for Convention
9
10
Best Practices of San FranciscoConvention & Visitors Bureau
San Francisco’s Marketing Campaign: Video advertising the city
Only in San Francisco
11
The SF CVB aims to make San Francisco the leadingdestination for business and leisure travelers.
12
San Francisco Convention & Visitors Bureau offersstakeholders significant tangible membership benefits.
13
SFCVB’s has a three pronged marketing and salesapproach to capture tourism market share.
14
ComprehensiveWebsite
! Online booking
services
for hotels
! Attraction and
sightseeing
companies
! Online maps
! Information about local
member businesses
! Information on San
Francisco and
surrounding areas
! Calendar of Events
! Information for
convention, meeting
planners, travel
industry and media
15
SFCVB promotes the long term development of SanFrancisco through brand strategy and advocacy.
16
The San Francisco Convention Center, The MosconeCenter, is a main driver for hotel room bookings.
17
Apple hosts their annual Worldwide DevelopmentConference at Moscone West every year.
! Steve Jobs uses WWDCto introduce new Appleproducts: MacBook, iPod,iPhone, iPad
! Over 5000 attendees
Steve Jobs announcesiPhone 3G at the 2008
WWDC
18
San Francisco Convention & Visitors Bureau RevenueSources.
19
San Francisco Convention & Visitors BureauRevenue Sources.
20
San Francisco Convention & Visitors BureauMembership Dues Formula.
! Members pay dues to receive tangible benefitsoutside of general San Francisco tourism marketing
! Dues schedule is broken down by business type
! Accommodations/Lodging
! Restaurants
! Retail Shops/Complexes
! Ground Transportation/Tour Operators
! Annual dues based on members general reliance onthe tourism industry
! Hotels account for 28% of total members but pay45% of total CVB membership dues
21
22
Recommendations for Convention &Visitors Bureau
Why create a Convention & Visitors Bureau?
The stakeholders should not compete against each other due tothese forces, instead they should work together toward a common
purpose….
23
The purpose & mission of the CVB is ….
24
Why should Stakeholders join the CVB?
25
By joining the CVB, you can help to promote the city,increase tourism, and ultimately increase your bottom line.
26
CVB should target the following stakeholders to join andcontribute to the organization.
Travel Planning Transportation AccommodationConference
Facility
Food
Entertainment
Shopping
AirlinesAirlines
• Delta Airlines
• American Airlines
• Other InternationalAirlines
• Vietnam Airlines
HotelsHotels
• Sheraton Hotel
• Park Hyatt Hotel
• IntercontinentalHotel
• Caravelle Hotel
• New World Hotel
• Renaissance Hotel
• Rex Hotel
• Majestic Hotel
• Continental Hotel
Travel AgenciesTravel Agencies
• Saigon Tourist
• Binh Thanh Tourist
• East Sea Travel
• HG Travel
• Mekong Delta Tour
• Cu Chi Tunnels Tour
• Phan Thiet
• Vung Tau • Budget Car
• Driver Rental
Convention CentersConvention Centers
• Ho Chi Minh CityInternationalExhibition andConvention Center(HIECC)
• Saigon InternationalExhibition andConvention Center(SIEC)
ResortsResorts
Tour GuidesTour Guides
Online bookingservice providers
Online bookingservice providers
Rental CarsRental Cars
TaxiTaxi
AirportsAirports
• Southern AirportAuthority
• TSN Intl Airport
• Long Thanh Airport
RestaurantsRestaurants
Shopping mallShopping mall
Duty Free ShopsDuty Free Shops
Local MarketsLocal Markets
Golf CoursesGolf Courses
PortsPorts
• Diamond Plaza
• Paragon Center
• Parkson
Business CenterBusiness Center
• Saigon Trade Center
Movie TheatersMovie Theaters
27
CVB needs to decide how to brand the city and maintainconsistent campaigning and messaging.
28
Identify key events and ensure involvement, promotion andadvertising at marquee functions.
http://eventful.com/hochiminhcity/events/categories/festivals_parades
29
Convention & Visitors Bureau: Possible Sources ofRevenue.
! Membership Dues
! Hotel Tax/Lodging Assessment
! Tax on Other Tourism related businesses
! Contributions
! Donations
! Website Advertising
30
There is a strong business need to promote tourism withinHCM City and stakeholders would benefit from a CVB.
! San Francisco is a strong model to build off;however, the CVB will encounter different obstaclesand challenges.
! As you consider creating a CVB, focus on thefollowing initial steps:
! Set up the necessary organization legally.
! Attain buy-in from key stakeholders.
! Initiate a targeted marketing campaign.
! Generate a comprehensive website.
! Determine revenue generation possibilities.
31