Commercial Members Meeting

30th October 2013

marketingbirmingham.com

Agenda

9.00am Welcome

Ian Taylor, Commercial Director, Marketing Birmingham

9.05am The NEC Group developments

Paul Thandi, Chief Executive, The NEC Group

9.25am Marketing Birmingham Operational Briefing

Ian Taylor, Commercial Director, Marketing Birmingham

9.50am Questions

10.00am Meeting concludes

Operational BriefingIan Taylor

Commercial Director

marketingbirmingham.com

Economic outlook

UK economic output

- rose by 0.8% in July - Sept

- rose by 0.7% in April - June

UK Hotel sector

- av hotel at occupancy up 1% on 2012

- av RevPAR up 6.25%

Birmingham & Solihull Hotel sector

- av hotel occupancy up 4% on 2012

- av RevPAR up 5.7%

80 potential projects in completion pipeline for 2013/14

Attracting overnight visitors

Hotel RevPAR* comparison 2012 v 2013

* Revenue per available room

Business Catalyst

Breeze Social Media Award

Lead Generation

Agents

Trade engagement

Scale of opportunity: China,

USA, India, Europe

Developing relationships with

global travel trade

Trade access: understanding

market requirements

Connectivity: supporting route

development Birmingham

Airport

Business development

Meet Birmingham Showcase 2013

- 30 qualified buyers

Best of Britain & Ireland 2014

- engage travel trade buyers

BCB: nine bids for national conferences in

2013 

- 7,500 room nights

- 5,000 attendees

Meet Birmingham Guide 2014

The Birmingham Chef’s Table

3rd February 2014

visitbirmingham.com/thechefstable

#birmingyum

Tourism strategy 2014-2020

Commissioning a tourism strategy for the

Greater Birmingham region

Will consider market positioning, target

markets, spend priorities, product development

and investment requirements

Consultative process, reporting in March 2014

Creating a TBID for Birmingham & Solihull

CONSULTATION

This is a draft proposal. It is part of an iterative process and will evolve during the consultation process.

Birmingham & Solihull

We’re making progress...

Visitor numbers at an all time high - 39 million in 2012

Average hotel occupancy 2013 at 70% - 4% higher than 2012

Perceptions as a visitor destination up by 22% since 2005

Tourism now accounts for 10% of the region’s GVA

Making a £5.9 billion contribution to the local economy

The fourth most visited city region in the UK by overseas visitors

£600m re-development of New Street Station – John Lewis, Grand Central

Birmingham Airport runway extension increases global connectivity

Creating more private sector jobs than any other UK region

More FDI investment than any other city outside the capital

Economic Zones, City Centre Enterprise zone

Resorts World, Paradise Circus, Library of Birmingham, Eastside Development

HS2 increases national connectivity

£10 billion of investment in infrastructure over next 15 years

There’s going to be a lot to talk about!

Bright future...

Challenges

Increased competition locally, regionally and nationally

- 10 UK destinations have created new or significantly added to their

existing conference and exhibition facilities since 2005

- net gain of some 5300 hotel bedrooms since 2005 in Birmingham &

Solihull

- further 33 hotel projects in development pipeline

Economic climate and continued pressure on consumer/business spending

Increasing pressure on public sources of funding for tourism promotion

Whilst our city region is set to benefit from the greatest levels of investment in a generation...

...its marketing and promotion as a visitor destination is not.

RevPAR challenge

Average RevPar in Birmingham & Solihull continues to lag behind other UK

cities

Funding the future

Birmingham & Solihull needs to competitively promote its offer

Requires a new partnership

Needs to leverage new financial resources

Private sector needs a new vehicle to create financial resources

Proposing creation of an industry led, independent body...

Tourism Business Improvement District for Birmingham & Solihull

What is a TBID?

Group of businesses who, through a ballot process, agree to pay a levy

Levy determined by an agreed formula and paid to an agreed delivery body in order to sell, promote and develop local tourism sector

Governed by an elected and independent board of representatives made up of levy payers

Board appoints a delivery body to implement an agreed programme of activities, funded by the levy

All funds are 100% invested in the programme

The board is responsible for evaluating the impact and success of the programme

Steering groupThe Steering Group currently consists of:

 Chair: Paul Thandi, Chief Executive, The NEC Group

Deputy Chair: Michael Mason, General Manager, Crowne Plaza Hotel

Ronan McGovern, Area Manager, Accor Hotels

David Lane, General Manager, Millennium Copthorne Hotel

Derek McDonagh, General Manager, Burlington Hotel

Andrew Cole, General Manager, Touchwood Shopping Centre

Stephen Maddock, Chief Executive, CBSO

Anne Brererton, Director for Places, Solihull MBC

A new approach, not a new idea

TBIDs first piloted in the US over 30 years ago

100 geographic BID’s have been formed in the UK focussed on retail, industrial, business partners, town and city centres

15 UK cities/towns/destinations currently considering development of TBID’s in their areas but only Birmingham & Solihull has the scale to make a real difference

Currently over 1,000 TBIDs in the US alone

A new model for a new future

FOCUS

INVEST

GROW

Industry ledCommon goals

Intelligent customers

Sales & marketingSecure further funding

New visitor product

Overnight visitorsInternational visitors

Events

18% RevPAR increase by

2019

How is it funded?

The principal source of TBID funding will be an annual levy which will be applied to all hotels and serviced accommodation providers with 30 or more bedrooms in Birmingham and Solihull. A REVPAR based formula is proposed; based on the formula below:

Total number of bedrooms for a particular hotel x 365 x average annual RevPAR per day per bedroom = Y   (n.b., ‘RevPAR’ is calculated by multiplying ‘Bedroom Occupancy’ by ‘Average Achieved Room Rate’). The levy is then calculated by multiplying Y by the relevant geographic % levy

Proposed levy %

Location % Levy

Birmingham Inner Ring Road 1%

Birmingham Outer 0.5%

Solihull (NEC/Airport) 1%

Solihull 0.5%

What happens next?

Industry consultation

Oct 13 – March 14

Dedicated consultation process to gain views and develop proposals

Ballot process April 2014

Requires majority yes vote based on voting businesses and rateable value

Operational set up October 2014

Consultation scheduleOctober 13Outer Birmingham Hotels, 16th October, 3.00pm, Baskerville House, BirminghamSolihull & NEC Hotels, 23rd October, 3.00pm, Touchwood Centre, SolihullDrop in Session, 25th October, 1.30pm - 4.30pm, Baskerville House, Birmingham

November 13Inner Birmingham Hotels, 6th November, 3.00pm, Baskerville House, BirminghamOuter Birmingham Hotels, 20th November, 3.00pm, Baskerville House, BirminghamSolihull & NEC Hotels, 27th November, 3.00pm, Touchwood Centre, Solihull

December 13

Drop in Session, 3rd December, 1.30pm - 4.30pm, Baskerville House, Birmingham

Drop in Session,12th December, 1.30pm - 4.30pm, Baskerville House, Birmingham

January 14

Inner Birmingham Hotels, 9th January, 3.00pm, Baskerville House, Birmingham

Outer Birmingham Hotels, 15th January, 3.00pm, Baskerville House, Birmingham

Solihull & NEC Hotels, 29th January, 3.00pm, Touchwood Centre, Solihull

Drop in Session, 31st January, 1.30pm - 4.30pm, Baskerville House, Birmingham

February 14Inner Birmingham Hotels, 5th February, 3.00pm, Baskerville House, BirminghamOuter Birmingham Hotels, 12th February, 3.00pm, Baskerville House, BirminghamSolihull & NEC Hotels, 19th February, 3.00pm, Touchwood Centre, SolihullDrop in Session, 26th February, 1.30pm - 4.30pm, Baskerville House, Birmingham

March 14Inner Birmingham Hotels, 5th March, 3.00pm, Baskerville House, BirminghamOuter Birmingham Hotels, 12th March, 3.00pm, Baskerville House, BirminghamSolihull & NEC Hotels, 19th March, 3.00pm, Touchwood Centre, SolihullDrop in Session, 26th March, 1.30pm - 4.30pm, Baskerville House, Birmingham

Consultation schedule

SummaryTo continue current growth trajectory and maximise impact of huge investment in infrastructure will require a new approach to promoting the visitor economy

Public sector funding will likely diminish in next 5 years

It’s an increasingly competitive market nationally & internationally

We can’t keep doing what we’ve always done...

We need to FOCUS and work together. We need to INVEST in our future, so we can GROW our markets.

The creation of a TBID for Birmingham & Solihull is an opportunity for you to shape the development and promotion of Birmingham and

Solihull as a visitor destination. It is your chance to work with partners to bring more custom to the region, build your business and boost the

area’s reputation.

Questions

marketingbirmingham.com