2014

Conference Value & Volume Reporting on 2013 sector activity

CONFERENCE VALUE & VOLUME 2014

Marketing Manchester Accompanying Quote Rationale The Conference Value & Volume study has been undertaken to report on Greater Manchester’s conference and business event activity for 2009, 2011 and 2013. The purpose of the project is to establish the value of the sector to the destination and the volume of business hosted. It also aims to provide intelligence on the activity in the market; areas of growth, areas showing signs of decline, and any other market trends to inform policy and workstream priorities.

Methodology Andrew Stokes, chief executive at Marketing Manchester, said:

“The value of conference and business events to Greater Manchester remains significant at £823 million. We are now attracting higher spending delegates, increasingly from overseas markets and this has made up the shortfall where fewer events have been held.” “The steady growth of the association market is particularly significant because in recent years the ‘Team Manchester’ partnership has increasingly targeted the sector as a central part of Greater Manchester’s overall economic development strategy. Not only do association meetings have a higher economic value, but they are also intrinsically linked to our academic and industry strengths, creating invaluable opportunities for the transfer of knowledge and allowing Greater Manchester to truly stand out on the global stage. “We have laid solid foundations to grow our target market and looking ahead Marketing Manchester will continue to work with partners to focus on associations and those opportunities which offer most synergy with our academic community whilst adding value to Greater Manchester as a whole.”

The Conference Value & Volume 2014 study was undertaken by Team Tourism Consulting who also undertook the previous studies. The methodology for the project included the following key stages: 1. Review of the hosting venues of such activity across Greater Manchester to include venue facilities, capacities and delegate rates. • In 2013 105 principal venues were included (compared to 102 in 2011 and 80 in 2009). The variance in the number of venues identified as principal venues for the study is due to new venues opening, venues expanding their provision for this activity and mixed-purpose venues extending their product into the conference and business events market. 2. A venue survey to capture activity levels and type per venue. • 42 venues provided activity data (40%), compared to 49 venues in 2011 (48%) and 39 in 2009 (49%). 3. Data is then sourced from nationally available datasets to inform the GVA and employment supported outputs.

Venue Supply The number of businesses with conference facilities, and identified as a principal venue, increased by 3% in Greater Manchester from 2011 to 2013, compared to the 28% increase reported from 2009 to 2011. This highlights the increased capacity Greater Manchester now has to hold conference and business events when compared to when the study was originally undertaken in 2009.

CONFERENCE VALUE & VOLUME 2014

Delegate Profile Below shows the average delegate rates and delegate value for each of the geographic remits stated: Fig.1 Delegate rates and values (per day) Greater Manchester

Per Day Average value of a day delegate (per day) Average value of a staying delegate – residential and non-residential (per day)

Manchester District

Manchester City Centre

£49

£52

£53

£161

£177

£180

Average delegate day rate (to venue)

£34

£36

£38

Average delegate 24hr rate (to venue)

£133

£146

£145

Average value of a day delegate to the wider destination*

£15

£15

£15

Average value of a staying delegate (residential and non-residential) to the wider destination*

£67

£68

£71

Greater Manchester

Manchester District

Manchester City Centre

Fig.2 Delegate rates and values (per trip) Per Trip Average value of a day delegate (per trip) Average value of a staying delegate – residential and non-residential (per trip) Average delegate day rate (to venue and could be multiple days) Average delegate 24hr rate (to venue) Average value of a day delegate to the wider destination* Average value of a staying delegate (residential and non-residential) to the wider destination*

£77

£78

£75

£289

£307

£309

£53

£53

£54

£266

£280

£276

£24

£22

£21

£120

£117

£122

*To include; off-site accommodation, eating establishments, shops and entertainment/leisure venues.

Sector Profile The following shows the latest statistics for the top-line value and volume indicators of the study. The first chart shows the percentage of economic impact that is generated from each location and the second demonstrates the share of delegates that each location hosted. Fig.3 Value to Greater Manchester The conference and business events that are held within Manchester district account for 69% of the economic impact generated by Greater Manchester’s conference and business events sector. Of the 69% identified within the Manchester district, 82% comes from the city centre and 18% from outside the city centre

Rest of Greater Manchester 31%

City Centre

82% Manchester district 69%

18% Rest of Manchester district

CONFERENCE VALUE & VOLUME 2014

Fig.4 Volume in Greater Manchester The conference and business events that are held within Manchester district account for 65% of the economic impact generated in Greater Manchester. Of the 65% identified within the Manchester district, 81% of the number of delegates are hosted in the city centre and 19% from outside the city centre. 77% of the delegate days hosted in Manchester district are hosted within the city centre.

City Centre

Rest of Greater Manchester 35%

81% Manchester district 65%

19% Rest of Manchester district

Fig.5 Value in Greater Manchester Greater Manchester

Manchester District

Manchester City Centre

Economic impact

£823m

£565m

£466m

Direct spend to hosting venues

£516m

£363m

£295m

Direct spend to non-hosting businesses in the wider destination*

£307m

£202m

£172m

Direct GVA within GM

£294m

£206m

£172m

Total impact GVA (inc. supply chain)

£543m

£380m

£316m

FTEs supported – direct within GM

22,500

15,900

13,100

FTEs supported – total (inc. supply chain)

41,100

28,900

23,900

Value Indicators

*To include; off-site accommodation, eating establishments, shops and entertainment/leisure venues. Fig.6 Volume in Greater Manchester Greater Manchester

Manchester District

Manchester City Centre

Number of delegates

4.9m

3.2mm

2.6m

Number of delegate days

7.9m

5.1m

4.0m

Volume Indicators

CONFERENCE VALUE & VOLUME 2014

Market Activity – Ten Key Messages The ten key messages coming from the findings of the Conference Value & Volume 2014 study are provided here and the accompanying data is provided for reference.

1. Growth in the association market (both international and national associations) Fig.7 Growth in the volume of delegates from the association markets 1,400,000

1,185,000

1,200,000 1,000,000 800,000

780,000 625,000

600,000

350,000

400,000 200,000 0

132,000

202,000

2009

2011

2013 International association delegates

National association delegates

• The association market grew its economic impact by 76% from £185m in 2011 to £325m in 2013. • The association market represents 31% of the delegate market compared to 18% in 2009. • The national association market in 2013 represented just under a quarter (24%) of all delegates attending conferences showing substantial growth from 15% in previous years.

• The economic impact generated by international association business in 2013 doubled from 2011 to just under the £100m mark (12% of the economic impact generated compared to 4% in 2009). • For each international association that selects Manchester as its hosting destination it will bring an average of 152 delegates, a large proportion of who will be from outside the area and will be staying delegates requiring accommodation.

Fig.8 Growth in the association markets – supporting data 2013

2011

2009

£325m

£185m

£119m

% of conference delegates generated by the association market

31%

23%

18%

% of conference delegates generated by national associations

24%

15%

15%

7%

4%

3%

Economic impact attributable to international associations

£99m

£46m

£25m

% of economic impact attributable to international associations

12%

6%

4%

The economic impact of the association market

% of conference delegates generated by international associations

Average number of delegates per each international association event

152 delegates 117 delegates 98 delegates

CONFERENCE VALUE & VOLUME 2014

2. Increase in the number of overseas delegates hosted Fig.9 Increase in the number of delegates hosted 600,000

495,000

500,000 400,000

293,000

300,000

231,000

200,000

136,000

Number of delegate days in Greater Manchester by overseas delegates

281,000

171,000 Number of delegate hosted by Greater Manchester with an overseas origin

100,000 0

2009

2011

• The number of overseas delegates hosted by Greater Manchester increased by 64% on 2011.

2013

• The proportion of delegates attending an international association event has also increased, from 4% in 2011 to 7% in 2013.

• The proportion of total economic impact generated by overseas delegates simultaneously increased to 11% (from 6% in 2011). Fig.10 Increase in the number of delegates hosted – supporting data 2013

2011

2009

Number of delegates hosted by GM with an overseas origin

281,000

171,000

136,000

Number of delegate days in GM by overseas delegates

495,000

293,000

231,000

Economic impact generated by delegates of an overseas origin

£88m

£47m

£39m

The economic impact proportion attributable to the overseas market

11%

6%

7%

7%

4%

2%

The proportion of delegates attending an international association event

3. Increase in the number of delegates attracted per event Fig.11 The average number of delegates hosted per event 160

152

140 120 100

98 104

117 112

122

79

83

Average number of delegates attending an international association event.

40

Average number of delegates attending a national association event.

20

Average event size

80 60

0

75

2009

2011

2013

CONFERENCE VALUE & VOLUME 2014

• The average size of a business event hosted in Greater Manchester in 2013 was 83 delegates, a 5% growth on 2011.

• Both international and national association events saw an increase in the average size. • The international association business in 2013 brought in 30% more delegates, per event, on

• The largest average was from international association business with each event bringing an average of 152 delegates, followed by national association at 122 delegates, 72 delegates from corporate and 71 delegates from public/government.

average, than in 2011.

Fig.12 Increase in the number of delegates hosted – supporting data

Average event size – all types

2013

2011

83 delegates

79 delegates

2009 75 delegates

Average no. of delegates attending an international association event

152 delegates 117 delegates

98 delegates

Average no. of delegates attending a national association event

122 delegates 112 delegates 104 delegates

4. Increasing value of an average delegate hosted by Greater Manchester Fig.13 Value of an average delegate

£168

2013

£158

2011

£135

2009 £0

£20

£40

£60

£80

£100

£120

£140

£160

£180

Average delegate value

• The average value of a delegate in 2013 increased by 6% on 2011 to £168 when looking at the total economic impact and the total number of delegates. • The average conference length has increased and therefore leading to a longer dwell time in the destination that consequently increases spend at businesses in the destination, and crucially, increases demand for accommodation (on-site or off-site). • The number of delegates attending conferences from national association and international association markets has significantly increased, consequently leading to higher demand for accommodation due to the delegate base being national and international (rather than local or regional).

• The extended length of conferences has led to an increase of delegate days from those sourcing accommodation off-site and within the wider destination. The length of conference at venues without accommodation is extending and this is over-riding the decrease in delegates generally (due to lower numbers of events). These delegates are therefore requiring accommodation that is not discounted within a 24hr delegate rate. However, although the level is higher than 2011 it is still below 2009 levels.

CONFERENCE VALUE & VOLUME 2014

Fig.14 Increasing value of an average delegate – supporting data 2013

2011

2009

£168

£158

£135

Average conference length - all

1.7 days

1.6 days

1.6 days

Average conference length - non-residential

1.6 days

1.5 days

1.4 days

Average conference length - residential

2.1 days

1.9 days

1.8 days

Delegate volume – national association

1.2m

780,000

625,000

350,000

202,000

132,000

1.8m

1.4m

1.4m

281,000

171,000

136,000

1.2m

982,000

1.4m

1.6 days

1.5 days

1.4 days

The average delegate value (economic impact by delegate volume)

Delegate volume – international association Delegate volume – from outside the Northwest (all conference markets) Delegate volume – from overseas (all conference markets) Delegate days for delegates staying in the wider destination Average conference length - non-residential

5. Increasing importance of the sector to Manchester’s economy Fig.15 Economic Impact generated by the conference and business event sector in Manchester

£484m

Economic impact (£m) in 2011

£565m

Economic impact (£m) in 2013

£440

£460

£480

• The value of the conference and business event activity within just Manchester is calculated to be £565m, a 17% increase on 2011’s activity. • The venues within Manchester accounted for 69% of the total economic impact from conferences and business events in Greater Manchester, compared to 59% in 2011.

£500

£520

£540

£560

£580

• The activity generated in the sector by Manchester venues has also led to an increase in the number of jobs supported by the sector in the district, up 18% since 2011. • Venues in Manchester have generated a 9% increase in spend to other businesses within the wider destination* from £186m in 2011 to £202m in 2012.

• The number of delegates hosted by Manchester venues increased by 19% on 2011. Fig.16 Increasing role of the sector to Manchester’s economy – supporting data

Economic impact from venues in Manchester district Economic impact % from venues in Manchester district of Greater Manchester total Number of delegates hosted by venues in Manchester district

2013

2011

2009

£565m

£484m

Not available

69%

59%

Not available

3.2m

2.7m

Not available

Jobs supported by the sector in Manchester district

15,900

13,500

Not available

Spend in the wider destination* generated by Manchester venues hosting business events

£202m

£186m

Not available

*To include; off-site accommodation, eating establishments, shops and entertainment/leisure venues.

CONFERENCE VALUE & VOLUME 2014

6. Increasing importance of conference and business events to locations Fig.17 Key conference and business event locations within Greater Manchester

60%

57%

50% 40% 30%

18%

20%

9%

10% 0% City centre

Petersfield

• Manchester city centre generates £466m, which represents 57% of the economic impact of Greater Manchester and 82% of the economic impact of Manchester district and in terms of volume hosts 2.6m delegates (53% of those hosted in Greater Manchester). o Petersfield, a location within the city centre recognised as Manchester’s conference quarter, and contributing to the city centre figures, hosts 569,000 delegates (12% of the delegates hosted by Greater Manchester). o Venues based in Petersfield are generating £150m economic impact for the area which is 18% of the economic impact for Greater Manchester and 32% of the economic impact generated by the city centre.

Quays

• Venues based at The Quays, recognised as Greater Manchester’s waterfront destination and covering Salford and Trafford district councils, generate £73m economic impact from the sector which represents 9% of the economic impact generated across Greater Manchester. In terms of volume, 542,000 delegates are hosted by the Quays (11% of the delegates hosted by Greater Manchester). • The national association sector is of particular prominence within the Petersfield venues and represents 25% of their business profile, compared to 16% in Greater Manchester. • The corporate sector is of particular prominence within the venues at The Quays, representing 69% of their business profile, compared to 57% in Greater Manchester.

Fig.18 Key conference and business event locations in Greater Manchester – supporting data Greater Manchester

Manchester district

Manchester city centre

Petersfield

Quays

Economic impact generated in 2013

£823m

£565m

£466m

£150m

£73m

% of economic impact of GM

100%

69%

57%

18%

9%

Number of delegates hosted

4.9m

3.2m

2.6m

569,000

542,000

International Association

National Association

Corporate

Public Government

% of business hosted in Petersfield

5%

25%

53%

17%

% of business hosted in Quays

2%

8%

69%

20%

% of business hosted in Manchester city centre

5%

19%

54%

22%

% of business hosted in Greater Manchester

4%

16%

57%

23%

CONFERENCE VALUE & VOLUME 2014

7. Increasing average length of a conference • The average length of a conference has increased by 6% since 2009 and now stands at 1.7 days (from 1.6 days previously).

• The increase in the average length of a conference is particularly driven by residential conferences. The increased stays for residential delegates is leading to increased spend to hosting venues but also potential for increased spend within the wider destination.

Fig.19 Average conference length – supporting data 2013

2011

2009

Average conference length – all conferences

1.7 days

1.6 days

1.6 days

Average conference length – residential conferences

2.1 days

1.9 days

1.8 days

Average conference length – non-residential conferences

1.6 days

1.5 days

1.4 days

8. Decreasing number of conference and business events hosted • The number of events held in Greater Manchester decreased overall by 10% from 65,600 in 2011 to 59,200 in 2013.

• This is highlighted by lower levels within the corporate and government/not-for-profit conference markets.

Fig.20 Conference & business events hosted – supporting data

Number of events hosted by Greater Manchester % of events hosted that are from public/government business No. of delegates from public/government business

2013

2011

2009

59,200

65,600

56,900

23%

28%

32%

969,000

1.2m

1.3m

% of events hosted that are from corporate business

57%

59%

55%

No. of delegates from corporate business

2.4m

3.0m

2.2m

9. Shorter lead times for majority of conference sectors • Shorter lead times are now evident for three sectors; international association, public/government and corporate.

• However national association business lead time bucks this trend by becoming significantly longer.

Fig.21 Conference lead times – supporting data 2013

2011

2009

9 weeks

10 weeks

9 weeks

Lead time for public/government business

10 weeks

13 weeks

11 weeks

Lead time for international association business

51 weeks

54 weeks

40 weeks

Lead time for national association business

36 weeks

31 weeks

30 weeks

Lead time for corporate business

CONFERENCE VALUE & VOLUME 2014

10. Greater Manchester: A year-round conference and business events destination • The conference and business events activity is spread fairly evenly across the four quarters. • However, there are peaks in the amount of sector activity hosted, with April to June (hosting 26% of the annual business) and October to December (hosting 32% of the annual business) being the busiest quarters.

• September, October and November, are the months generating the highest number of business events. The three months account for 35% of the annual events hosted by venues in Greater Manchester and 38% in the city centre. • August & January are Greater Manchester’s lowest level of activity in the industry.

Fig.22 Profile of sector activity over the year

14%

13%

12%

11% 10% 10%

10%

9%

9% 9% 8%

8% 6%

13% 12% 12% 12%

8%

8%

8% 7%

7%

7% 5% 5%

7% 5%

4%

3% 3%

2% 0%

Jan

Feb

Mar

Apr

May

Jun

Greater Manchester

Jul

Aug

City Centre

Sep

Oct

Nov

Dec

CONFERENCE VALUE & VOLUME 2014

Geographic Definitions

Glossary

Greater Manchester: The ten districts of Greater Manchester; Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford and Wigan.

Conference and business event: for the purpose of this study this is ‘an out-of-office conference, meeting or other business event of at least four hours’ duration involving a minimum of ten people’. Please note that this is a change to the previous studies of ‘eight people’ and is aligned with the definition recognised by the United Nations World Tourism Organisation (UNWTO) and consequently adopted by the Meeting Professionals International Foundation (MPI). This is also a generic term to cover; conventions, congresses, conferences, meetings, training courses, sales briefings, product launches etc. Please note that it excludes exhibitions.

Manchester district: This is the geographic remit of Manchester City Council and therefore includes the areas to the north of the city and the areas of south Manchester and Manchester Airport. Manchester city centre: For the purpose of this study the city centre is defined as the area provided in the Manchester map at: http://www.visitmanchester.com/media/718221/city_ map_2012_reprint_2_-_lisa_map.pdf Petersfield: This is also referred to as the conference quarter and is the area including and surrounding Manchester Central Convention Complex that extends to a number of venues with conference facilities. Quays: For the purpose of this study this is referred to as the venues that report to the Quays Visitor Destination Group including businesses with conference facilities based in Salford and Trafford.

Day delegate: A delegate paying a day delegate rate to the hosting venue and commuting from home so not requiring overnight accommodation (this could be for a single day or a multiple-day business event). FTEs: The number of full-time equivalent roles supported. GVA direct or GVA output: The difference between the income generated by the activity and the cost of inputs of its delivery/production (inputs to include wages, facility costs and maintenance). This is the GVA contribution to the Greater Manchester economy. GVA impact: The GVA direct (as explained above) + GVA indirect (bought goods and services from the supply chain to deliver the activity – both within and outside the areas) + Induced GVA (GVA of firms outside the sector or supply chain, as a result of the expenditure of the employees supported in Greater Manchester and within the extended supply chain on household goods etc). This is the GVA total contribution to the UK economy (within and outside Greater Manchester). Residential staying delegate: a delegate staying overnight in accommodation at the hosting venue. Staying delegate in the wider destination: a delegate staying overnight in accommodation outside the hosting venue but within Greater Manchester.

CONFERENCE VALUE & VOLUME 2014

References to Other Sector Studies The UK’s conference and business events sector that has the highest volume of delegates is the corporate sector and the MPI Foundation’s study (UKEIS – UK Economic Impact Study) found that this sector represented 81% of the events held in the UK, with the association sector representing 6%. This compares to 57% corporate in Greater Manchester and 20% association and therefore Greater Manchester hosts a considerably larger proportion of the association market than the UK on average. The UKEIS also reported the average conference length in the UK being 2 days, that compares to the Greater Manchester average of 1.7 days (resulting from 1.6 average for non-residential and 2.1 for residential). Also reported within this study was that the UK hosted the highest proportion of conference and business events in the months of March and April. This is also a key time for Greater Manchester but with a more significant peak in business during the months of September to November. Source: UKEIS released in 2013 - reporting on 2011 – MPI Foundation & ICRETH (International Centre for Research in Events Tourism & Hospitality), Leeds Metropolitan University.

The ICCA rankings for 2013, released May 2014, showed a 13% increase of the number of ICCA-ranked events hosted by Manchester in 2013, further supporting the increase in the international association sector highlighted in this Conference Value & Volume study. This places Manchester third in the UK rankings, behind the capitals of London and Edinburgh, 33rd in Europe and 68th globally. Please note that an ICCA-ranked event must be held in at least three rotating countries as recognised by the International Congress & Convention Association. Source: ICCA – International Congress & Convention Association.

EVCOM (Event & Visual Communication Association) published their UK Events Market Trends Survey research (also reporting on 2013) and reported the trend of a decreased number of events hosted in the UK but higher value from the events hosted, echoing the trend in Greater Manchester. The research was undertaken on behalf of EVCOM by Tony Rogers Conference & Event Services and TEAM Tourism Consulting. Source: UK Events Market Trends Survey, EVCOM - Event & Visual Communication Association.

For further information on this project or other intelligence for the tourism sector in Greater Manchester please contact Jo Cuff, Tourism Analyst for New Economy and Visit Manchester at [email protected]