Lost bag totals fall sharply

CHECKED baggage delivery targets reached 99.1 per cent in 2011, the highest rate of successful delivery since the report was first produced and saving the industry US$650 million more than 2010.

The baggage report, produced by travel industry IT specialist SITA, shows the mishandled rate has more than halved since 2007, down 52.4 per cent from 18.88 bags per thousand passengers in 2007 to 8.99 bags per thousand last year.

Francesco Violante, chief executive of SITA said: "During 2011, even though we saw a rise in the number of passengers travelling to 2.87 billion passengers, the industry achieved a reduction in mishandled bags to 25.8 million. This is 6.5 million fewer bags mishandled than 2010’s figure of 32.3 million.

“Of course, 2011 was less challenging than 2010 when adverse weather and volcanic ash clouds caused major disruption, but the fact that the industry has halved the mishandled rate over the past five years is an enormous achievement which has benefited millions of passengers and directly delivered improvements to airline earnings.

“These results are due to concerted efforts by airlines, airports and ground handlers through the IATA Baggage Improvement Program; increased focus on standards and best practices by the Airports Council International and the implementation of sophisticated baggage management solutions.”

Despite the great strides made by the air transport industry to improve mishandling over the last few years, the main – and growing – contributor to the problem is ‘transfer bags’. Typically, these bags go astray when passengers and their luggage are moving from one aircraft to another or from one carrier to another en route to their final destination. In total, transfer bags account for 53 per cent of all delayed luggage and cost the industry at least US$1.36 billion per annum.

Violante said: “Our report highlights various initiatives to address the transfer bag problem and if the industry is able to focus on improving the transfer bag performance, the savings in penalty costs for airlines and the passenger experience could improve even faster. SITA will continue to work with the community to ensure that the best processes and technologies are used to conquer this challenge.”

Over the past year, as well as a drop in the overall mishandling rate, the number of bags lost or stolen (ie, not returned to the passenger) also plummeted by 45 per cent from 1.15 million to 640,000, a welcome improvement for both passengers and airlines.

The vast majority of mishandled bags are reunited with their owners in less than 48 hours and in 2011 only a small fraction, just 2.47 per cent of the mishandled bags, or 640,000 bags, failed to show up at all compared with 3.56 per cent or 1.15 million bags in 2010.

The SITA Baggage Report 2012 describes how the rapid adoption of mobile devices, and the evolution of the “me-centric” passenger, has created demand for real-time information to be delivered to hand-held devices. At the same time, self-service bag check-in and tracing are also expected. For airlines and airports to meet these passenger expectations, an improvement in the quality, accuracy and sharing of data in relation to baggage movements is required. All the stakeholders – ground handlers, airlines, and airports – have to be part of the collaborative process ensuring synchronicity of data flow behind the scenes.

Qatar PER readies to challenge Emirates

WESTRALIAN Airports Corporation's (WAC’s) policy of providing 'incentives' to encourage new airlines to fly to Perth will be under the spotlight from 03 July, when Qatar Airways adds a three-times-weekly service from Perth to Doha.

While the industry welcomes new competition in the WA market, the question is being asked: Is Qatar Airways doing much more than diluting rival Emirates Airline’s long-haul through business to and from Europe and elsewhere?

‘Incentives’ offered by airports are designed to grow new inbound markets, but the reality is that where competitors already service the same or similar source markets, the newcomers have little choice but to engage in predatory pricing to win custom – inbound and outbound.

In this case, Emirates has a thriving hub city – Dubai – with its own leisure business and commercial centre plus one of the world’s biggest route networks for long-haul travel. Many WA companies already have set up operations in Dubai and see the emirate as the regional hub for commerce.

Doha, Qatar Airways’ home base, has a strong economy dominated by petro-chemical industries, which tie in with the WA economy, but it is hard to see Doha challenging Dubai’s appeal as a commercial centre or holiday destination - the city is much more likely to be used as a hub for inbound travel and ex-Perth outbound traffic to Qatar's more than 100 destinations (and 70 more planned) world wide.

Emirates was a beneficiary of financial incentives when it began Perth daily services in 2002 and has flourished. It operates double-daily services from Perth to Dubai and beyond. It is poised to add more services in line with market demand. Adding a hungry competitor to the mix could well affect those plans. With sky-high jet fuel costs and emissions and other taxes, these days no-one adds air services in the hope that demand will grow to fill available capacity.

Every successful airline today is trimming capacity, downsizing aircraft, and adding routes only where demand outstrips supply and reasonable yield can be expected.

So are these ‘incentives’ value for money for WA taxpayers or any others involved in funding them? The dollars involved are a tightly-held secret, with both the WAC* and Tourism WA in this case citing 'commercial confidentiality'.

However, it is widely believed that China Southern, for example, was offered a multi-million dollar ‘carrot’ to begin services much earlier than the airline originally planned. The industry believes Qatar, too, will be ‘looked after’.

Ironically, it is Australia’s national carrier, Qantas Airways that has most to lose when its home airports or states offer incentives to foreign airlines. Qantas’ market share internationally has fallen in recent years from a dominant 32 per cent to 18 per cent, in part due to foreign airlines being given state and airport incentives to fly to Australia.

Key travel agencies contacted in a straw poll on the impact of Qatar starting Perth services believe there is a likelihood - especially in the start-up phase - of a price war as Qatar bids for outbound long-haul business via Doha to Europe and possibly even east coast USA.

Russell Brown, managing director of Perth’s Travel Associates, said he welcomed new airlines to the WA market, especially if they offered services or routes not currently available.

"We have been associated with Emirates from the beginning and enjoy a strong working relationship. Feedback from our customers is very positive on Emirates’ services and the double-daily flights are very popular. It will be interesting to see how Qatar Airways - which is not well-known here in WA - performs via Doha."

Kerry Coupar, general manager of Consolidated Travel in Perth expects most Qatar Airways sales to be for services to London and other points in Europe. "It's always good to have new airlines flying from Perth. A competitive market is welcomed by the consumer. I expect Qatar to do reasonably well out of Perth as it won the Skytrax award in 2011 for Best Airline. Ticket sales are reported to be going well, which shows the West Australian consumer's willingness to try something new. I also think Doha would be an interesting place to visit. It is not as commercialised as Dubai."

BUT HOW DOES QATAR STACK UP AGAINST EMIRATES?

Qatar Airways (QR) commenced operations in 1994. Relaunched in 1997, it now flies to more than 100 destinations world wide. Winning ‘Airline of the Year’ in 2011, the carrier boasts a fleet of 101 aircraft with seven more on order. The fleet is dominated by A320s (28) A330s (29) and B777s (26). It has deferred its order for three A380s due to wing cracks, ordered another B777 and three more A320s.

Emirates (EK) is one of the most-awarded airlines in history. Its fleet comprises 172 wide-bodied aircraft (plus 111 on order including 68 A380s and 43 B777s) and is one of the youngest fleets in the skies. The fleet mainly comprises A330-200 (27) A340 (18) A380 (21) B747 (five) and B777 (102). Emirates operates a global network of 121 destinations in 70 countries. Since the beginning of the year the carrier has added Dublin (January) and will add Barcelona, Spain (03 July) and Lisbon, Portugal (09 July.

THE PLANS

Qatar Airways plans to operate a B777-200ER in two-class configuration on Perth services initially three times a week from 03 July increasing to daily by November. Emirates operates a B777-300LR in three class configuration twice daily.

HOW THEY COMPARE

Qatar Airways Economy
Luggage allowance: 23kgs of checked baggage plus one carry-on piece not to exceed 7kgs. Seating configuration 3-3-3. Seat pitch 81.28 cms to 86.36cms. Seat width 48 cms. Entertainment touch screen TV. No laptop power. No wi-fi: In-flight magazine Oryx.

Emirates Economy
Luggage allowance 30kgs plus one carry on piece of 7kgs. Seating configuration 3-4-3. Seat pitch 86.36 cms. Seat width 43.18 cms. Entertainment personal TV. Laptop power in some seats. No wi-fi; In-flight magazine Open Skies.

Qatar Airways Business Class
Luggage allowance 30kgs plus two pieces of carry on not exceeding 15 kgs. Seating configuration 2-2-2. Seat pitch 198cms. Seat width 56 cms. Entertainment personal TV. Laptop power in all seats. No wi-fi; In-flight magazine Oryx.

Emirates Business Class
Complimentary chauffeur to airport (kilometre limits may apply). Invitation to lounge; Luggage allowance: 40kgs of checked baggage plus two pieces of carry-on baggage with 12 kgs maximum weight. Seating configuration 2-3-2. Seat pitch 137cms-183 cms reclining to full-flat bed. Entertainment: Personal digital screen with 1,200 channels on demand. Laptop power. Satellite phone in-seat. No wi-fi; In-flight magazine Open Skies

Emirates First Class
Complimentary chauffeur to airport; Invitation to lounge; Luggage allowance 50kgs plus two pieces of carry on not exceeding 12kgs; Seating configuration 2-2-2. Seat pitch 175 cms for lie-flat bed. Seat width 52 cms. Entertainment: Personal TV with ICE entertainment digital screen and 1,200 channels on demand; Laptop Power - all seats, no wi-fi; In-flight magazine Open Skies.

Best available fares on Qatar and Emirateswebsites including taxes and charges:

Qatar Airways. Perth-Doha departing 03 July returning 03 August (sample only) - economy A$2795.61, business class A$9249.61.
Emirates Airline. Perth -Dubai departing 03 July returning 03 August (sample only) - economy A$2560.76, business class A$8061.56, first class A$11,711.56.

The market could become even more competitive in November this year if – as is rumoured - Abu Dhabi-based rival Etihad Airlines launches daily Perth flights.
• MICEBTN tried to contact Scott Norris, commercial manager for Perth Airport for comment but he did not respond.

IA opens membership section of website

INCENTIVE Association (IA) membership is now open via its website.

Association general secretary Peter Gray said he already had given about 200 prospective members the URL www.incentiveassociation.com and prizes and reduced membership rates will be offered to those who join before May 31.
Fees for personal membership are A$198 (A$176 if paid before May 31).

Corporate memberships for an organisation with four to 15 full time employees costs A$660.00 (A$550.00 before May 31) and 16-plus employees A$1,320.00 (A$1,133.00).
Airline memberships cost A$4840 (A$4114), hotel groups for corporate head office or regional sales offices A$660 (A$550) and independent hotels not part of a group A$440 (A$374).

To further encourage early memberships, Maui Jim Sunglasses has donated a 50 per cent discount voucher for the first 50 applicants, Shangri-La Hotels has donated a bottle ofchampagne for one draw and in another Frampton Concepts had donated a Jag watch (ladies or gents) to the value of A$199.00.

The membership application web site is provided and sponsored by Cvent, which also is offering a 30 per cent discount to all IA members who sign up for its event management software.
Membership is only open to suppliers and practitioners and not end users, but Gray said there would be a great deal of information on the website for everyone.

“Work is continuing on the website and once completed it will be very interactive,” he said.
Gray also said another priority for the IA, research into the value, benefits and contribution of the incentive industry in Australia and New Zealand, was progressing well.

Professor Steve Worthington and his team from Monash University are conducting the study - the most in-depth ever done into the incentive industry - and the first results are expected in about a year. Sponsors are being sought to assist with the study. As part of their benefits the sponsors will receive the full results of the study, which will cover areas including the value and impact of incentives and look at why organisations do and don’t use incentives.

Meanwhile, the association has finalised office bearers of the committee of management until the membership is in place and elections can be held.
They are: Sue Jackson, executive chairman of Solterbeck as chair, David Hughes as deputy chair, Geraldine Hunt treasurer and Peter Gray general secretary. Other committee members are Nick Berry, Les Frampton, Richard Froggat, Lyn Lewis Smith, Rebecca Smith, Kirsten Strand and Mercedes Trautwein. - Jenny Burns.

Carriers move to international precinct at Perth Airport

WORK has begun on the first stage of the long-awaited and much-needed expansion of Perth airport’s international terminal, a A$750 million transformation of the domestic and international terminals to take place during the next three years.

The project will include:
• A major expansion of the international terminal costing A$300 million, with a new arrivals area, check-in hall and expanded departures lounge;
• Upgraded road transport comprising seven proposed major road infrastructure projects to ease traffic congestion;
• Expanded car parking and
• Increased capacity for future growth.

“These major investments are part of our plan to consolidate all commercial air services to the current international precinct over the next decade,” said the airport’s chief executive, Brad Geatches. “This must happen in stages, with the first stage seeing all domestic airlines except those in the Qantas Group re-locating to the consolidated precinct over the next three years.

“We have worked closely with the many airlines servicing Western Australia to design new airfield, terminal and transport facilities that will provide high levels of reliability and a great airport experience.”
The new dedicated domestic terminal - situated next to the current international complex — will be home to Skywest, Alliance Airlines and Tiger Airways’ domestic operations from 2013. It has been designed to incorporate environmental features to maximise energy and carbon efficiencies.

It’s claimed check-in will be faster and easier with 16 counters, self-service and bag drop technology, a spacious lounge, three large baggage reclaim belts - minimising waiting times - plus dedicated drop-off and pick-up lanes and parking at the front of the terminal.

Due for completion in 2014, the international terminal will double the size of all existing areas and separate Immigration and Biosecurity (Quarantine) over two levels.
Passengers will board and disembark through aircraft gates and aerobridges capable of servicing new aircraft types, including the super-jumbo Airbus A380.

Other features will include:
• Expanded departure lounge with improved airline customer lounges;
• Expanded check-in hall with 16 additional counters, new check-in and bag drop technology and an increased border and security screening area;
• Larger baggage reclaim belts aimed at minimising waiting times and
• More dining choice and retail outlets, including an expanded and improved duty free store.

A new, large pier — at the western end of the existing international terminal — will be the new home for Virgin Australia. The pier will feature departure lounges and aircraft gates for domestic and international flights, together with a wide range of retail outlets. - John Newton

Comment: Perception can harm - a return to balance is due

ONE clichés with a dose of truth is the saying that perception is everything. It’s often unfair or irrational, but a poor perception can hurt, damage, distort or even destroy a company, Kelvin King writes.

It's a phenomenon that increasingly is being seen in the travel industry as travellers pass judgment on everything from flights to hotels and attractions.

When websites first began to offer more mechanisms permitting comments on journeys, the functionality was welcomed by thousands who saw it as an effective way to learn what a hotel, airline, attraction or destination might have in store for them, all drawn from the real-life experiences of fellow travellers.

What was at first an almost entirely instructive initiative — including the benefits to any industry operator smart enough to monitor comments and learn from them — now is under a cloud of doubt as the thousands of users grew to millions.

In the past year alone, this magazine has been told of several instances of deliberate badmouthing, more than once merely because a client wasn’t given an upgrade or other hoped-for bonus. There have been allegations of organised denigration campaigns. Just as worrying are the services offered by murky specialists to boost site-visitor perceptions with posts of effusive praise.

Some of this manipulation can be countered but the perceptions remain.
While this might seem to impact more on the more fickle, less-experienced leisure market, indications now are that it is having serious effects in the corporate travel sector and encroaching on conferences, incentives and events.

Another manipulation of perception is through seemingly scientific polls and competitions for the best hotel, the airport with most services, the most welcoming destination. Behind the glitzy gala awards ceremonies are, too often, massive lobbying, data ‘massaging’ and other devices that skew the votes. Those voting for such awards need not even have experienced the service or be credibly placed to weigh them against competing product.

Then there is the power of television. Japan has suffered a crisis of perception from last year’s earthquake and tsunami. Regions such as Kyoto have, with the help of government funding, undertaken innovative marketing programs to explain they were not affected and that all is cherry blossoms.

Our industry isn’t the only victim of mistaken perceptions, of course. In both Australia and New Zealand at present, convoluted political situations revolve as much around public perceptions - largely formed on the basis of a fleeting evening TV news report - as on substance.

This isn’t ‘just life’ as some say. Balance and fair play are essential.

Australian government eases Bali travel advisory

THE AUSTRALIAN government's decision to downgrade its travel warning on Bali has been welcomed by the Indonesian island's MICE sector.

The government downgraded its travel advisory to Bali on 04 May, the first easing since 2002.

Previously, the Australian government advised citizens to “reconsider the need to travel.” It is now advising them to “exercise a high degree of caution,” putting the island at the same level as Thailand and the Philippines.
Australian ambassador to Indonesia Greg Moriarty said the decision was based on a carefully considered assessment of the level of threat to Australian travellers.

Bali Hotels Association (BHA) chairman Jean-Charles Le Coz said: “I'm happy that our efforts in maintaining safety and security have been recognised internationally, especially by Australia, our biggest market.”
He cited specific security efforts including its 2011 workshops to train staff at its more-than-100 member hotels on surveillance, as well as founding the Integrated Police Radio Community Bali program that connects BHA members and other tourism stakeholders directly to the police via UHF radio.

BHA also held workshops on counter terrorism, disaster risk reduction and health issues.

Australia leads the market in inbound travel to Bali, with a market share of more than 26 per cent.
Meanwhile, arrivals in March 2012 saw a 24 per cent year-on-year increase over March 2011. The renewed confidence in the island’s security is sure to boost both leisure and MICE business, said Le Coz.

Tony Steven (AMA Tasmania) and newly elected president of the Australasian Society of Association Executives said he would be discussing the changed travel advisory to Bali with members and they would decide what action if any to take on future travel arrangements. Steven replaced ASAC president Simon Pryor who stepped down from the role as part of a succession move.

Speaking personally, Steven said he welcomed the improved security situation in Bali and the government decision that improved choices for ASAE members on where they could hold meetings.

NZ’s convention centre at risk from political wrangling

AUCKLAND pressingly needs a new international convention centre, but the project could yet be scrapped, the victim of intensifying politicisation.

Alan Trotter, chief executive of Conventions Incentives New Zealand (CINZ) summed up the high stakes when talking with MICEBTN managing editor Chris Hurd earlier this year: “We really need this new facility, especially after losing the one in Christchurch that handled 25 per cent of all meetings of more than 250 people.

“Our hopes are pinned on the SkyCity facility getting the final okay.”

The government has agreed to consider a SkyCity proposal which offered a new centre alongside the group’s existing casino, conference centre and hotels complex in mid-town Auckland.
The company said it would pay all costs in return for a green light to install further gaming machines and perhaps get an early renewal of its licence to give it more certainty in long-term investment calculations.
But as we reported at the time, the idea of more pokies was anathema to many.

Some of the criticism was based on genuine concern - like most other countries, New Zealand has problem gamblers - but a lot of the flak was political and opportunistic.
That flak has not let up, despite evidence that pokie machine numbers have been dropping steadily in Auckland and throughout most of New Zealand.

But it gets worse

In recent months, the politicisation has become markedly more intense.
First there was the allegation that the previous mayor, John Banks, had accepted a NZ$15,000 donation from SkyCity for his mayoral campaign. So had his opponent, Len Brown, who won what were the high stakes of commanding the newly integrated ‘super city’.

Banks, however, had listed the donation as anonymous, while Brown had identified it, causing considerable concern.
Elsewhere, Air New Zealand senior executive and TIA chairman Norm Thompson said that “development of a world-class convention centre will enable the industry to target a whole new market that can’t be accommodated by existing conference facilities. This is a completely untapped market segment for New Zealand, and will help us boost shoulder and low season travel.”

The project’s importance goes beyond the benefits to Auckland and even to New Zealand. Australasia needs another major convention venue to bolster the region’s bidding credibility on the global scene.
NZ has been lagging behind other major international destinations, including most Australian cities, in not having a national convention centre, Thompson lamented.

“This will raise our profile in the valuable business conference market and increase the visitor industry’s contribution to New Zealand’s economy,” he said.
Len Brown, a left-leaning leader who has earned a lot of praise for his efforts to take a sensible middle course, is very keen to see the convention centre get under way, and soon.

“The national convention centre is an important development for Auckland because it will bring in more jobs and economic development. The current lack of detail about what is being proposed isn’t doing that cause any good.

“Right now we are getting asked our opinion on something we don’t know enough about. The government needs to explain clearly and as soon as possible what is being proposed so it can be properly assessed.

“I am very concerned about the negative impacts of problem gambling. If the government decides to go ahead with the SkyCity proposal, I would expect it to include strong measures to minimise harm.”

He suggested a range of options that could be included in any proposal, should the government proceed.
These include on-site harm minimisation officers, pre-paid commitment cards designed as a tool to manage expenditure, harm minimisation screen savers with a multiple button sequence to activate the machine, post-win screen saver and cash in/ticket out operational system.

“I am also concerned about the amount of money that goes back into community initiatives and believe that will also need to be looked at,” said Brown.

“The national convention centre is an important development for Auckland because it will bring in more jobs and economic development. The current lack of detail about what is being proposed isn’t doing that cause any good.”

SCEC closure an opportunity for rivals

SYDNEY's decision to completely close the Sydney Convention and Exhibition Centre (SCEC) for three years while a new convention facility is built will have a major impact on the meetings and events industry in Australia - and could see significant business moving interstate to Melbourne, Brisbane and Adelaide.

All of those rival cities have seen significant investments in MICE facilities and are expected to ramp up their domestic and international marketing to capture large size meetings.
The SCEC will close late in 2013 and reopen in 2016, effectively giving rival cities up to a four-year window to challenge for meetings business that otherwise would have gone to Sydney.

BESydney will still be active in the market, but will be restricted by available space to bid only for tier 2 and smaller meetings.
The SCEC has been operating in its present buildings for 25 years and needs a complete overhaul to enable Sydney to compete more effectively in the market. However, many in the industry had expected it keep operating during the new build, to take advantage of a relatively strong business events market.

According to Melbourne Convention and Visitors Bureau (MCVB) chief executive Karen Bolinger, the closing of the SCEC will have an enormous impact on the business events industry in Australia.

“The closure will have an immediate negative effect on businesses in the area, particularly the hotels and restaurants located in Darling Harbour,” she said.

“This also provides an opportunity for some research to be undertaken during the closure to ascertain the real impact it has on jobs, not just in the direct businesses surrounding Darling Harbour, but the flow-on to their suppliers. By conducting such a study the “real” economic contribution to the destination can be determined.

“This will provide some sound results to ensure governments recognise the benefits of business events in their local economy.”
Bolinger said she had no doubt there would be opportunities for Melbourne to pick up new business from the SCEC closure.

“We already have received a number of enquiries, however whether we can take some of the larger conferences will be dependent on the availability of the Melbourne Convention and Exhibition Centre,” she said.

“I believe it’s important to work together within Australia so we can maintain our reputation as a country that supports business events no matter what.”

In other news, she said MCVB will launch its new, three-year strategy at IMEX, announcing the latest updates to the Melbourne IQ campaign which is being ramped up to drive association business to Melbourne.
Martin Radcliffe, director of sales and marketing at the Adelaide Convention Bureau (ACB) said the ACB planned to increase the profile of Adelaide and South Australia as a business events destination long before the planned SCEC closure was confirmed.

"What they plan to do with SCEC infrastructure is very important for Australia as a country. However, I also believe it is important to keep Australia in the eyes of domestic and international meetings and conference planners to make sure that all our clients still have successful events.

“Many business events and meetings are long-term projects taking years to come to fruition from the initial pitch to hosting the event. It could be three years before Sydney is back in the mix for the bigger meetings and events. From our perspective, now is an ideal time for PCOs and event planners to look to Adelaide and South Australia. We have had massive investment in our infrastructure, particularly on the medical side, with new institutes and hospitals. Add to these developments the expansion of Adelaide Oval facilities and it means that Adelaide is really ticking.

“We scheduled our expansion so that it would not interrupt existing plans for meetings and events. There was a time when our infrastructure and MICE facilities were too small. Adelaide now has exceptional facilities following the completion of the recent expansion and is competing on a level playing field.

“The next move is to integrate some of the medical research findings data created through the expansion of medical facilities into our databases.”
Lyn Lewis-Smith, chief executive for BESydney, is fairly confident Sydney will be able to cope without the SCEC for three years. The organisation charged with promoting business tourism for NSW declined an editorial opportunity to let MICEBTN readers know what alternatives would be available during the closure.

"The NSW government decision to close SCEC for three years gives the industry welcome certainty about timelines and the government plans to fast track the project," said Lewis-Smith. "Our focus will now be on winning business that is suited to the available facilities we have in Sydney until the new centre is completed."
Brisbane Convention and Exhibition Centre was too busy to respond.

Lack of space threatens business events growth

A NEW survey covering Australia's business events space shows a strong and vibrant industry that injects hundreds of millions of dollars into the economy and says NSW beats Victoria by a margin of more than 100 per cent, hosting 36 per cent of events and exhibitions against Victoria’s 17 per cent.

The report by the Exhibition and Event Association of Australasia (EEAA) also revealed that 12 new shows expect to launch in 2012.
The EEAA Market Monitor found that almost one million visitors attended events organised by EEAA members, with 11,278 exhibitors participating.

EEAA general manager Joyce DiMascio said the bi-annual Market Monitor captured previously undocumented insights into the health and performance of the Australian exhibition and event industry and would be an invaluable resource providing data “that puts us on a strong footing in our representations to stakeholders, including government, international industry associations, the media, universities, training institutions and investors”.

“More than half the organisers surveyed are presenting new events this year and 59 per cent of suppliers have reported an increase in turnover,” said Warren Liackman, chief executive of Micromex Research, the Monitor’s producer.
“The survey also showed that NSW is the biggest events and exhibitions destination, hosting 36 per cent of events against Victoria’s 17 per cent.
"Trade events had the largest exhibitor base, with 6,621 participating in the six-month survey period, attracting 202,688 visitors. Consumer events drew a larger number of visitors, 699,170 with a total of 4,309 exhibitors.
"In addition, 49 per cent of trade events had a paid conference or seminar program alongside them, compared with 16 per cent at consumer events.”



Key findings from the survey included:
• EEAA Members organised 69 events, with 11,278 exhibitors participating and approximately 940,000 individuals attending.
• Sold approximately 270,000m2 of exhibition space, whilst utilising almost 660,000m2 of venue space
• EEAA Member venues hosted 316 events.
• Employed 2,654 full time staff, 5,390 casual/part time staff and 2,002 contractors.
• 50 per cent of organisers believe the sectors they are operating in are growing, while 18 per cent believe they are declining.
• Over half of all organisers surveyed indicated that they are presenting new events in 2012.
• Suppliers to the industry were more likely to report an increase in turnover than a decrease, compared with the previous calendar year (59 per cent vs 22 per cent).
• Suppliers’ annual average turnover for the 2011 calendar year was A$4.8 million, for an approximate total of A$382 million.
• The exhibition industry accounted for 66 per cent of suppliers’ annual turnover.
• Venues hosted 92 new events, representing 29 per cent of shows hosted.
• 53 per cent of venues cited venue capacity as inhibiting business growth in the past, while 73 per cent expect decreasing exhibitor budgets to inhibit growth in the future.

Lost bag totals fall sharply

CHECKED baggage delivery targets reached 99.1 per cent in 2011, the highest rate of successful delivery since the report was first produced and saving the industry US$650 million more than 2010.

The baggage report, produced by travel industry IT specialist SITA, shows the mishandled rate has more than halved since 2007, down 52.4 per cent from 18.88 bags per thousand passengers in 2007 to 8.99 bags per thousand last year.

Francesco Violante, chief executive of SITA said: "During 2011, even though we saw a rise in the number of passengers travelling to 2.87 billion passengers, the industry achieved a reduction in mishandled bags to 25.8 million. This is 6.5 million fewer bags mishandled than 2010’s figure of 32.3 million.

“Of course, 2011 was less challenging than 2010 when adverse weather and volcanic ash clouds caused major disruption, but the fact that the industry has halved the mishandled rate over the past five years is an enormous achievement which has benefited millions of passengers and directly delivered improvements to airline earnings.

“These results are due to concerted efforts by airlines, airports and ground handlers through the IATA Baggage Improvement Program; increased focus on standards and best practices by the Airports Council International and the implementation of sophisticated baggage management solutions.”

Despite the great strides made by the air transport industry to improve mishandling over the last few years, the main – and growing – contributor to the problem is ‘transfer bags’. Typically, these bags go astray when passengers and their luggage are moving from one aircraft to another or from one carrier to another en route to their final destination. In total, transfer bags account for 53 per cent of all delayed luggage and cost the industry at least US$1.36 billion per annum.

Violante said: “Our report highlights various initiatives to address the transfer bag problem and if the industry is able to focus on improving the transfer bag performance, the savings in penalty costs for airlines and the passenger experience could improve even faster. SITA will continue to work with the community to ensure that the best processes and technologies are used to conquer this challenge.”

Over the past year, as well as a drop in the overall mishandling rate, the number of bags lost or stolen (ie, not returned to the passenger) also plummeted by 45 per cent from 1.15 million to 640,000, a welcome improvement for both passengers and airlines.

The vast majority of mishandled bags are reunited with their owners in less than 48 hours and in 2011 only a small fraction, just 2.47 per cent of the mishandled bags, or 640,000 bags, failed to show up at all compared with 3.56 per cent or 1.15 million bags in 2010.

The SITA Baggage Report 2012 describes how the rapid adoption of mobile devices, and the evolution of the “me-centric” passenger, has created demand for real-time information to be delivered to hand-held devices. At the same time, self-service bag check-in and tracing are also expected. For airlines and airports to meet these passenger expectations, an improvement in the quality, accuracy and sharing of data in relation to baggage movements is required. All the stakeholders – ground handlers, airlines, and airports – have to be part of the collaborative process ensuring synchronicity of data flow behind the scenes.

Qatar PER readies to challenge Emirates

WESTRALIAN Airports Corporation's (WAC’s) policy of providing 'incentives' to encourage new airlines to fly to Perth will be under the spotlight from 03 July, when Qatar Airways adds a three-times-weekly service from Perth to Doha.

While the industry welcomes new competition in the WA market, the question is being asked: Is Qatar Airways doing much more than diluting rival Emirates Airline’s long-haul through business to and from Europe and elsewhere?

‘Incentives’ offered by airports are designed to grow new inbound markets, but the reality is that where competitors already service the same or similar source markets, the newcomers have little choice but to engage in predatory pricing to win custom – inbound and outbound.

In this case, Emirates has a thriving hub city – Dubai – with its own leisure business and commercial centre plus one of the world’s biggest route networks for long-haul travel. Many WA companies already have set up operations in Dubai and see the emirate as the regional hub for commerce.

Doha, Qatar Airways’ home base, has a strong economy dominated by petro-chemical industries, which tie in with the WA economy, but it is hard to see Doha challenging Dubai’s appeal as a commercial centre or holiday destination - the city is much more likely to be used as a hub for inbound travel and ex-Perth outbound traffic to Qatar's more than 100 destinations (and 70 more planned) world wide.

Emirates was a beneficiary of financial incentives when it began Perth daily services in 2002 and has flourished. It operates double-daily services from Perth to Dubai and beyond. It is poised to add more services in line with market demand. Adding a hungry competitor to the mix could well affect those plans. With sky-high jet fuel costs and emissions and other taxes, these days no-one adds air services in the hope that demand will grow to fill available capacity.

Every successful airline today is trimming capacity, downsizing aircraft, and adding routes only where demand outstrips supply and reasonable yield can be expected.

So are these ‘incentives’ value for money for WA taxpayers or any others involved in funding them? The dollars involved are a tightly-held secret, with both the WAC* and Tourism WA in this case citing 'commercial confidentiality'.

However, it is widely believed that China Southern, for example, was offered a multi-million dollar ‘carrot’ to begin services much earlier than the airline originally planned. The industry believes Qatar, too, will be ‘looked after’.

Ironically, it is Australia’s national carrier, Qantas Airways that has most to lose when its home airports or states offer incentives to foreign airlines. Qantas’ market share internationally has fallen in recent years from a dominant 32 per cent to 18 per cent, in part due to foreign airlines being given state and airport incentives to fly to Australia.

Key travel agencies contacted in a straw poll on the impact of Qatar starting Perth services believe there is a likelihood - especially in the start-up phase - of a price war as Qatar bids for outbound long-haul business via Doha to Europe and possibly even east coast USA.

Russell Brown, managing director of Perth’s Travel Associates, said he welcomed new airlines to the WA market, especially if they offered services or routes not currently available.

"We have been associated with Emirates from the beginning and enjoy a strong working relationship. Feedback from our customers is very positive on Emirates’ services and the double-daily flights are very popular. It will be interesting to see how Qatar Airways - which is not well-known here in WA - performs via Doha."

Kerry Coupar, general manager of Consolidated Travel in Perth expects most Qatar Airways sales to be for services to London and other points in Europe. "It's always good to have new airlines flying from Perth. A competitive market is welcomed by the consumer. I expect Qatar to do reasonably well out of Perth as it won the Skytrax award in 2011 for Best Airline. Ticket sales are reported to be going well, which shows the West Australian consumer's willingness to try something new. I also think Doha would be an interesting place to visit. It is not as commercialised as Dubai."

BUT HOW DOES QATAR STACK UP AGAINST EMIRATES?

Qatar Airways (QR) commenced operations in 1994. Relaunched in 1997, it now flies to more than 100 destinations world wide. Winning ‘Airline of the Year’ in 2011, the carrier boasts a fleet of 101 aircraft with seven more on order. The fleet is dominated by A320s (28) A330s (29) and B777s (26). It has deferred its order for three A380s due to wing cracks, ordered another B777 and three more A320s.

Emirates (EK) is one of the most-awarded airlines in history. Its fleet comprises 172 wide-bodied aircraft (plus 111 on order including 68 A380s and 43 B777s) and is one of the youngest fleets in the skies. The fleet mainly comprises A330-200 (27) A340 (18) A380 (21) B747 (five) and B777 (102). Emirates operates a global network of 121 destinations in 70 countries. Since the beginning of the year the carrier has added Dublin (January) and will add Barcelona, Spain (03 July) and Lisbon, Portugal (09 July.

THE PLANS

Qatar Airways plans to operate a B777-200ER in two-class configuration on Perth services initially three times a week from 03 July increasing to daily by November. Emirates operates a B777-300LR in three class configuration twice daily.

HOW THEY COMPARE

Qatar Airways Economy
Luggage allowance: 23kgs of checked baggage plus one carry-on piece not to exceed 7kgs. Seating configuration 3-3-3. Seat pitch 81.28 cms to 86.36cms. Seat width 48 cms. Entertainment touch screen TV. No laptop power. No wi-fi: In-flight magazine Oryx.

Emirates Economy
Luggage allowance 30kgs plus one carry on piece of 7kgs. Seating configuration 3-4-3. Seat pitch 86.36 cms. Seat width 43.18 cms. Entertainment personal TV. Laptop power in some seats. No wi-fi; In-flight magazine Open Skies.

Qatar Airways Business Class
Luggage allowance 30kgs plus two pieces of carry on not exceeding 15 kgs. Seating configuration 2-2-2. Seat pitch 198cms. Seat width 56 cms. Entertainment personal TV. Laptop power in all seats. No wi-fi; In-flight magazine Oryx.

Emirates Business Class
Complimentary chauffeur to airport (kilometre limits may apply). Invitation to lounge; Luggage allowance: 40kgs of checked baggage plus two pieces of carry-on baggage with 12 kgs maximum weight. Seating configuration 2-3-2. Seat pitch 137cms-183 cms reclining to full-flat bed. Entertainment: Personal digital screen with 1,200 channels on demand. Laptop power. Satellite phone in-seat. No wi-fi; In-flight magazine Open Skies

Emirates First Class
Complimentary chauffeur to airport; Invitation to lounge; Luggage allowance 50kgs plus two pieces of carry on not exceeding 12kgs; Seating configuration 2-2-2. Seat pitch 175 cms for lie-flat bed. Seat width 52 cms. Entertainment: Personal TV with ICE entertainment digital screen and 1,200 channels on demand; Laptop Power - all seats, no wi-fi; In-flight magazine Open Skies.

Best available fares on Qatar and Emirateswebsites including taxes and charges:

Qatar Airways. Perth-Doha departing 03 July returning 03 August (sample only) - economy A$2795.61, business class A$9249.61.
Emirates Airline. Perth -Dubai departing 03 July returning 03 August (sample only) - economy A$2560.76, business class A$8061.56, first class A$11,711.56.

The market could become even more competitive in November this year if – as is rumoured - Abu Dhabi-based rival Etihad Airlines launches daily Perth flights.
• MICEBTN tried to contact Scott Norris, commercial manager for Perth Airport for comment but he did not respond.

IA opens membership section of website

INCENTIVE Association (IA) membership is now open via its website.

Association general secretary Peter Gray said he already had given about 200 prospective members the URL www.incentiveassociation.com and prizes and reduced membership rates will be offered to those who join before May 31.
Fees for personal membership are A$198 (A$176 if paid before May 31).

Corporate memberships for an organisation with four to 15 full time employees costs A$660.00 (A$550.00 before May 31) and 16-plus employees A$1,320.00 (A$1,133.00).
Airline memberships cost A$4840 (A$4114), hotel groups for corporate head office or regional sales offices A$660 (A$550) and independent hotels not part of a group A$440 (A$374).

To further encourage early memberships, Maui Jim Sunglasses has donated a 50 per cent discount voucher for the first 50 applicants, Shangri-La Hotels has donated a bottle ofchampagne for one draw and in another Frampton Concepts had donated a Jag watch (ladies or gents) to the value of A$199.00.

The membership application web site is provided and sponsored by Cvent, which also is offering a 30 per cent discount to all IA members who sign up for its event management software.
Membership is only open to suppliers and practitioners and not end users, but Gray said there would be a great deal of information on the website for everyone.

“Work is continuing on the website and once completed it will be very interactive,” he said.
Gray also said another priority for the IA, research into the value, benefits and contribution of the incentive industry in Australia and New Zealand, was progressing well.

Professor Steve Worthington and his team from Monash University are conducting the study - the most in-depth ever done into the incentive industry - and the first results are expected in about a year. Sponsors are being sought to assist with the study. As part of their benefits the sponsors will receive the full results of the study, which will cover areas including the value and impact of incentives and look at why organisations do and don’t use incentives.

Meanwhile, the association has finalised office bearers of the committee of management until the membership is in place and elections can be held.
They are: Sue Jackson, executive chairman of Solterbeck as chair, David Hughes as deputy chair, Geraldine Hunt treasurer and Peter Gray general secretary. Other committee members are Nick Berry, Les Frampton, Richard Froggat, Lyn Lewis Smith, Rebecca Smith, Kirsten Strand and Mercedes Trautwein. - Jenny Burns.

Carriers move to international precinct at Perth Airport

WORK has begun on the first stage of the long-awaited and much-needed expansion of Perth airport’s international terminal, a A$750 million transformation of the domestic and international terminals to take place during the next three years.

The project will include:
• A major expansion of the international terminal costing A$300 million, with a new arrivals area, check-in hall and expanded departures lounge;
• Upgraded road transport comprising seven proposed major road infrastructure projects to ease traffic congestion;
• Expanded car parking and
• Increased capacity for future growth.

“These major investments are part of our plan to consolidate all commercial air services to the current international precinct over the next decade,” said the airport’s chief executive, Brad Geatches. “This must happen in stages, with the first stage seeing all domestic airlines except those in the Qantas Group re-locating to the consolidated precinct over the next three years.

“We have worked closely with the many airlines servicing Western Australia to design new airfield, terminal and transport facilities that will provide high levels of reliability and a great airport experience.”
The new dedicated domestic terminal - situated next to the current international complex — will be home to Skywest, Alliance Airlines and Tiger Airways’ domestic operations from 2013. It has been designed to incorporate environmental features to maximise energy and carbon efficiencies.

It’s claimed check-in will be faster and easier with 16 counters, self-service and bag drop technology, a spacious lounge, three large baggage reclaim belts - minimising waiting times - plus dedicated drop-off and pick-up lanes and parking at the front of the terminal.

Due for completion in 2014, the international terminal will double the size of all existing areas and separate Immigration and Biosecurity (Quarantine) over two levels.
Passengers will board and disembark through aircraft gates and aerobridges capable of servicing new aircraft types, including the super-jumbo Airbus A380.

Other features will include:
• Expanded departure lounge with improved airline customer lounges;
• Expanded check-in hall with 16 additional counters, new check-in and bag drop technology and an increased border and security screening area;
• Larger baggage reclaim belts aimed at minimising waiting times and
• More dining choice and retail outlets, including an expanded and improved duty free store.

A new, large pier — at the western end of the existing international terminal — will be the new home for Virgin Australia. The pier will feature departure lounges and aircraft gates for domestic and international flights, together with a wide range of retail outlets. - John Newton

Comment: Perception can harm - a return to balance is due

ONE clichés with a dose of truth is the saying that perception is everything. It’s often unfair or irrational, but a poor perception can hurt, damage, distort or even destroy a company, Kelvin King writes.

It's a phenomenon that increasingly is being seen in the travel industry as travellers pass judgment on everything from flights to hotels and attractions.

When websites first began to offer more mechanisms permitting comments on journeys, the functionality was welcomed by thousands who saw it as an effective way to learn what a hotel, airline, attraction or destination might have in store for them, all drawn from the real-life experiences of fellow travellers.

What was at first an almost entirely instructive initiative — including the benefits to any industry operator smart enough to monitor comments and learn from them — now is under a cloud of doubt as the thousands of users grew to millions.

In the past year alone, this magazine has been told of several instances of deliberate badmouthing, more than once merely because a client wasn’t given an upgrade or other hoped-for bonus. There have been allegations of organised denigration campaigns. Just as worrying are the services offered by murky specialists to boost site-visitor perceptions with posts of effusive praise.

Some of this manipulation can be countered but the perceptions remain.
While this might seem to impact more on the more fickle, less-experienced leisure market, indications now are that it is having serious effects in the corporate travel sector and encroaching on conferences, incentives and events.

Another manipulation of perception is through seemingly scientific polls and competitions for the best hotel, the airport with most services, the most welcoming destination. Behind the glitzy gala awards ceremonies are, too often, massive lobbying, data ‘massaging’ and other devices that skew the votes. Those voting for such awards need not even have experienced the service or be credibly placed to weigh them against competing product.

Then there is the power of television. Japan has suffered a crisis of perception from last year’s earthquake and tsunami. Regions such as Kyoto have, with the help of government funding, undertaken innovative marketing programs to explain they were not affected and that all is cherry blossoms.

Our industry isn’t the only victim of mistaken perceptions, of course. In both Australia and New Zealand at present, convoluted political situations revolve as much around public perceptions - largely formed on the basis of a fleeting evening TV news report - as on substance.

This isn’t ‘just life’ as some say. Balance and fair play are essential.

Australian government eases Bali travel advisory

THE AUSTRALIAN government's decision to downgrade its travel warning on Bali has been welcomed by the Indonesian island's MICE sector.

The government downgraded its travel advisory to Bali on 04 May, the first easing since 2002.

Previously, the Australian government advised citizens to “reconsider the need to travel.” It is now advising them to “exercise a high degree of caution,” putting the island at the same level as Thailand and the Philippines.
Australian ambassador to Indonesia Greg Moriarty said the decision was based on a carefully considered assessment of the level of threat to Australian travellers.

Bali Hotels Association (BHA) chairman Jean-Charles Le Coz said: “I'm happy that our efforts in maintaining safety and security have been recognised internationally, especially by Australia, our biggest market.”
He cited specific security efforts including its 2011 workshops to train staff at its more-than-100 member hotels on surveillance, as well as founding the Integrated Police Radio Community Bali program that connects BHA members and other tourism stakeholders directly to the police via UHF radio.

BHA also held workshops on counter terrorism, disaster risk reduction and health issues.

Australia leads the market in inbound travel to Bali, with a market share of more than 26 per cent.
Meanwhile, arrivals in March 2012 saw a 24 per cent year-on-year increase over March 2011. The renewed confidence in the island’s security is sure to boost both leisure and MICE business, said Le Coz.

Tony Steven (AMA Tasmania) and newly elected president of the Australasian Society of Association Executives said he would be discussing the changed travel advisory to Bali with members and they would decide what action if any to take on future travel arrangements. Steven replaced ASAC president Simon Pryor who stepped down from the role as part of a succession move.

Speaking personally, Steven said he welcomed the improved security situation in Bali and the government decision that improved choices for ASAE members on where they could hold meetings.

NZ’s convention centre at risk from political wrangling

AUCKLAND pressingly needs a new international convention centre, but the project could yet be scrapped, the victim of intensifying politicisation.

Alan Trotter, chief executive of Conventions Incentives New Zealand (CINZ) summed up the high stakes when talking with MICEBTN managing editor Chris Hurd earlier this year: “We really need this new facility, especially after losing the one in Christchurch that handled 25 per cent of all meetings of more than 250 people.

“Our hopes are pinned on the SkyCity facility getting the final okay.”

The government has agreed to consider a SkyCity proposal which offered a new centre alongside the group’s existing casino, conference centre and hotels complex in mid-town Auckland.
The company said it would pay all costs in return for a green light to install further gaming machines and perhaps get an early renewal of its licence to give it more certainty in long-term investment calculations.
But as we reported at the time, the idea of more pokies was anathema to many.

Some of the criticism was based on genuine concern - like most other countries, New Zealand has problem gamblers - but a lot of the flak was political and opportunistic.
That flak has not let up, despite evidence that pokie machine numbers have been dropping steadily in Auckland and throughout most of New Zealand.

But it gets worse

In recent months, the politicisation has become markedly more intense.
First there was the allegation that the previous mayor, John Banks, had accepted a NZ$15,000 donation from SkyCity for his mayoral campaign. So had his opponent, Len Brown, who won what were the high stakes of commanding the newly integrated ‘super city’.

Banks, however, had listed the donation as anonymous, while Brown had identified it, causing considerable concern.
Elsewhere, Air New Zealand senior executive and TIA chairman Norm Thompson said that “development of a world-class convention centre will enable the industry to target a whole new market that can’t be accommodated by existing conference facilities. This is a completely untapped market segment for New Zealand, and will help us boost shoulder and low season travel.”

The project’s importance goes beyond the benefits to Auckland and even to New Zealand. Australasia needs another major convention venue to bolster the region’s bidding credibility on the global scene.
NZ has been lagging behind other major international destinations, including most Australian cities, in not having a national convention centre, Thompson lamented.

“This will raise our profile in the valuable business conference market and increase the visitor industry’s contribution to New Zealand’s economy,” he said.
Len Brown, a left-leaning leader who has earned a lot of praise for his efforts to take a sensible middle course, is very keen to see the convention centre get under way, and soon.

“The national convention centre is an important development for Auckland because it will bring in more jobs and economic development. The current lack of detail about what is being proposed isn’t doing that cause any good.

“Right now we are getting asked our opinion on something we don’t know enough about. The government needs to explain clearly and as soon as possible what is being proposed so it can be properly assessed.

“I am very concerned about the negative impacts of problem gambling. If the government decides to go ahead with the SkyCity proposal, I would expect it to include strong measures to minimise harm.”

He suggested a range of options that could be included in any proposal, should the government proceed.
These include on-site harm minimisation officers, pre-paid commitment cards designed as a tool to manage expenditure, harm minimisation screen savers with a multiple button sequence to activate the machine, post-win screen saver and cash in/ticket out operational system.

“I am also concerned about the amount of money that goes back into community initiatives and believe that will also need to be looked at,” said Brown.

“The national convention centre is an important development for Auckland because it will bring in more jobs and economic development. The current lack of detail about what is being proposed isn’t doing that cause any good.”

SCEC closure an opportunity for rivals

SYDNEY's decision to completely close the Sydney Convention and Exhibition Centre (SCEC) for three years while a new convention facility is built will have a major impact on the meetings and events industry in Australia - and could see significant business moving interstate to Melbourne, Brisbane and Adelaide.

All of those rival cities have seen significant investments in MICE facilities and are expected to ramp up their domestic and international marketing to capture large size meetings.
The SCEC will close late in 2013 and reopen in 2016, effectively giving rival cities up to a four-year window to challenge for meetings business that otherwise would have gone to Sydney.

BESydney will still be active in the market, but will be restricted by available space to bid only for tier 2 and smaller meetings.
The SCEC has been operating in its present buildings for 25 years and needs a complete overhaul to enable Sydney to compete more effectively in the market. However, many in the industry had expected it keep operating during the new build, to take advantage of a relatively strong business events market.

According to Melbourne Convention and Visitors Bureau (MCVB) chief executive Karen Bolinger, the closing of the SCEC will have an enormous impact on the business events industry in Australia.

“The closure will have an immediate negative effect on businesses in the area, particularly the hotels and restaurants located in Darling Harbour,” she said.

“This also provides an opportunity for some research to be undertaken during the closure to ascertain the real impact it has on jobs, not just in the direct businesses surrounding Darling Harbour, but the flow-on to their suppliers. By conducting such a study the “real” economic contribution to the destination can be determined.

“This will provide some sound results to ensure governments recognise the benefits of business events in their local economy.”
Bolinger said she had no doubt there would be opportunities for Melbourne to pick up new business from the SCEC closure.

“We already have received a number of enquiries, however whether we can take some of the larger conferences will be dependent on the availability of the Melbourne Convention and Exhibition Centre,” she said.

“I believe it’s important to work together within Australia so we can maintain our reputation as a country that supports business events no matter what.”

In other news, she said MCVB will launch its new, three-year strategy at IMEX, announcing the latest updates to the Melbourne IQ campaign which is being ramped up to drive association business to Melbourne.
Martin Radcliffe, director of sales and marketing at the Adelaide Convention Bureau (ACB) said the ACB planned to increase the profile of Adelaide and South Australia as a business events destination long before the planned SCEC closure was confirmed.

"What they plan to do with SCEC infrastructure is very important for Australia as a country. However, I also believe it is important to keep Australia in the eyes of domestic and international meetings and conference planners to make sure that all our clients still have successful events.

“Many business events and meetings are long-term projects taking years to come to fruition from the initial pitch to hosting the event. It could be three years before Sydney is back in the mix for the bigger meetings and events. From our perspective, now is an ideal time for PCOs and event planners to look to Adelaide and South Australia. We have had massive investment in our infrastructure, particularly on the medical side, with new institutes and hospitals. Add to these developments the expansion of Adelaide Oval facilities and it means that Adelaide is really ticking.

“We scheduled our expansion so that it would not interrupt existing plans for meetings and events. There was a time when our infrastructure and MICE facilities were too small. Adelaide now has exceptional facilities following the completion of the recent expansion and is competing on a level playing field.

“The next move is to integrate some of the medical research findings data created through the expansion of medical facilities into our databases.”
Lyn Lewis-Smith, chief executive for BESydney, is fairly confident Sydney will be able to cope without the SCEC for three years. The organisation charged with promoting business tourism for NSW declined an editorial opportunity to let MICEBTN readers know what alternatives would be available during the closure.

"The NSW government decision to close SCEC for three years gives the industry welcome certainty about timelines and the government plans to fast track the project," said Lewis-Smith. "Our focus will now be on winning business that is suited to the available facilities we have in Sydney until the new centre is completed."
Brisbane Convention and Exhibition Centre was too busy to respond.

Lack of space threatens business events growth

A NEW survey covering Australia's business events space shows a strong and vibrant industry that injects hundreds of millions of dollars into the economy and says NSW beats Victoria by a margin of more than 100 per cent, hosting 36 per cent of events and exhibitions against Victoria’s 17 per cent.

The report by the Exhibition and Event Association of Australasia (EEAA) also revealed that 12 new shows expect to launch in 2012.
The EEAA Market Monitor found that almost one million visitors attended events organised by EEAA members, with 11,278 exhibitors participating.

EEAA general manager Joyce DiMascio said the bi-annual Market Monitor captured previously undocumented insights into the health and performance of the Australian exhibition and event industry and would be an invaluable resource providing data “that puts us on a strong footing in our representations to stakeholders, including government, international industry associations, the media, universities, training institutions and investors”.

“More than half the organisers surveyed are presenting new events this year and 59 per cent of suppliers have reported an increase in turnover,” said Warren Liackman, chief executive of Micromex Research, the Monitor’s producer.
“The survey also showed that NSW is the biggest events and exhibitions destination, hosting 36 per cent of events against Victoria’s 17 per cent.
"Trade events had the largest exhibitor base, with 6,621 participating in the six-month survey period, attracting 202,688 visitors. Consumer events drew a larger number of visitors, 699,170 with a total of 4,309 exhibitors.
"In addition, 49 per cent of trade events had a paid conference or seminar program alongside them, compared with 16 per cent at consumer events.”



Key findings from the survey included:
• EEAA Members organised 69 events, with 11,278 exhibitors participating and approximately 940,000 individuals attending.
• Sold approximately 270,000m2 of exhibition space, whilst utilising almost 660,000m2 of venue space
• EEAA Member venues hosted 316 events.
• Employed 2,654 full time staff, 5,390 casual/part time staff and 2,002 contractors.
• 50 per cent of organisers believe the sectors they are operating in are growing, while 18 per cent believe they are declining.
• Over half of all organisers surveyed indicated that they are presenting new events in 2012.
• Suppliers to the industry were more likely to report an increase in turnover than a decrease, compared with the previous calendar year (59 per cent vs 22 per cent).
• Suppliers’ annual average turnover for the 2011 calendar year was A$4.8 million, for an approximate total of A$382 million.
• The exhibition industry accounted for 66 per cent of suppliers’ annual turnover.
• Venues hosted 92 new events, representing 29 per cent of shows hosted.
• 53 per cent of venues cited venue capacity as inhibiting business growth in the past, while 73 per cent expect decreasing exhibitor budgets to inhibit growth in the future.