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April 26, 2010 Hotels & Competitors James E. Rooney Executive Director Massachusetts Convention Center Authority.

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Presentation on theme: "April 26, 2010 Hotels & Competitors James E. Rooney Executive Director Massachusetts Convention Center Authority."— Presentation transcript:

1 April 26, 2010 Hotels & Competitors James E. Rooney Executive Director Massachusetts Convention Center Authority

2 1. Convention Partnership Recap – January through March 2010 2. Industry Updates – Philadelphia and San Diego – Chicago 4/26/2010 TOPICS OF DISCUSSION

3 We’re the best at what we do The MCCA offers a strong return on the Commonwealth’s investment Our loss leader status stimulates external spending in hotels, restaurants, shopping, taxis, etc. ($2.4 billion in five years) Boston is a premier convention destination, where demand outstrips supply for convention dates, space and hotel rooms, for both potential and existing customers We must consider what we got right as we consider expansion: Transparent legislative process with accountability Heavy neighborhood and meeting planner involvement Advocacy by Mayor, Governor and others Tradeshow marketplace continues to grow Headquarter hotel and second ballroom are critical to future success Development plan connects to broader Top 5 strategy JANUARY & FEBRUARY 2010 4/26/2010

4 The meeting and convention industry is bullish on Boston “We love the BCEC…Boston is one of our attendees’ favorite cities…I would like to bring our annual meeting for 25,000 people, but we just won’t fit.” – ALA “We need Boston because this is the hub of the bio industry.”– BIO International appeal of Boston “My meetings are about 45 percent international, and coming to Boston is huge.” - ASTRO “Fifty percent of my attendance is international, so it’s a big factor when we look at cities. It takes them longer to get here, so they stay longer.” – APA Drawbacks “Every dollar you add to the cost it is less likely that we would return to Boston.” – ACS “If (hotels are) not affordable for our board members, who travel on our taxpayer dollars, it is difficult. It is a huge concern for us moving forward with Boston.” _ NSBA “Every meeting planner has a tipping point when it comes to expenses, and Boston has already passed the tipping point.” - Diversified MARCH 2010 4/26/2010

5 “In 2007, we had record-breaking attendance. Thirty-five percent of that attendance was international. But, we had to spend $1 million on shuttle bus transportation…The shuttle bus rides were long and our attendees have tight schedules and can’t be late for sessions. We are coming back in 2012 and we are going to be spread out even more. It will be very challenging for our attendees.” - Robbi Lycett, BIO MARCH 2010 4/26/2010

6 San Diego Mayoral task force recommends expansion in Sept. ’09 Reaches land deal to pave the way for $753 mill expansion which includes: proposed 500-room headquarters hotel 200,000 sq. feet additional exhibit space 100,000 sq. feet additional meeting space a third ballroom Projected 2015 completion Philadelphia $786 million expansion of the center is 76% complete and includes: 125,000 sq feet of additional exhibit space 123,000 sq feet of additional meeting space 60,000 sq feet of additional ballroom space Expanded center will move to 14 th largest convention center in U.S. and holder of the largest contiguous exhibit space in the Northeast. More than $2 billion in convention business has already been booked for 2011 and beyond Philly CVB says expansion has created 1,800 construction-related jobs and will create 2,000 hospitality jobs, worth $150 million in economic impact Jack Ferguson of Philly CVB, said he recently traveled to Washington, D.C. “not to generate new business [but] to steal it from cities such as Boston and San Diego, often mentioned in the same breath as Philadelphia when big-time gatherings are planned.” Industry Update 4/26/2010

7 Chicago Trade show organizers meet with legislative panel and McCormick Place labor leaders to air their grievances regarding the “hassles” of hosting events in Chicago’s convention center including: high cost of doing business union work rules and intimidation tactics markups by show contractors Chicago has lost 2 major events and without significant change to center management, Chicago CVB warns as least 5 and many as 20 events could follow. Union blames contractor markup fees and, with support from Metropolitan Pier and Exposition Authority (MPEA), calls for elimination of the Chicago CVB. Legislative panel has implemented interim board for the MPEA and looks set to pass major reform legislation. The board is now considering a governance change that would give the city and the mayor of Chicago control of the MPEA, which is a joint state-city agency. Industry Update 4/26/2010

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