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AIPC survey shows global growth in convention centre business

AIPC survey shows global growth in convention centre business
August 20, 2015

A newly released survey from the the International Association of Convention Centres (AIPC) shows that growth in congress centre business is outpacing that of the overall global economy.

AIPC’s conclusion comes from its annual Performance and Prospects Survey for 2015.

The newly published Survey shows member centres documented revenue increases for 2014 that are more than two percentage points higher than worldwide GDP as tracked by the International Monetary Fund, lending further strength to the idea that the industry is actually helping drive economic growth instead of simply responding to recovery.

The survey has been tracking industry performance and confidence levels for six years, and AIPC has built up one of the most extensive bodies of centre-related information in the industry.

AIPC says its survey has now evolved to a point where it supports regional comparisons as well as those relating to client expectations for the same time periods, making it a powerful vehicle for centre planning and performance benchmarking.

Commenting on the report, AIPC President Geoff Donaghy explains "our Annual Survey continues to be one of the most valuable means we have for tracking both actual and anticipated performance, and it has now been fine-tuned to a point where it enables both multi-year and regional comparisons.

“This kind of information is enabling members to plan and demonstrate performance more effectively than ever before in a time when rapidly changing conditions make this a necessity”.

Key findings of the Annual Survey of its member centres included:

• There was strong (5.8%) revenue growth worldwide in 2014 compared to 3.1% in 2013
• Europe experienced its strongest increase in revenue growth with a 7.7% increase versus 2.8% in 2013
• Last year also saw the strongest attendance growth since 2011, with a world-wide average of 4.5%
• At the same time, major capital investment projects are slowing, with 63% of members saying they had some type of major new development or expansion project underway or in planning stages compared to 71% the previous year.
• Africa continues to be the fastest growing region of the world, with African centre members expanding gross revenues by over 15% in 2014
• Confidence is slightly lower, with a total of 74% of members around the world considering the strength of the economic growth in their region to be moderate or strong, down from 79% of members in 2014. Asian members continue to anticipate the strongest economic relative to other regions.

The survey also explored what AIPC member centres regarded as the greatest threats to both continuing economic growth in their respective regions as well as to their own business. The top risks to sustained economic recovery were considered to be:

• Overall economic weakness (58% of members)
• Government policies, including reduced spending (47%)

In terms of ongoing risks specific to their centre’s business, centres identified:

• Hotel availability and pricing: 43%
• Growing competition from other centres/regions: 72%

The AIPC represents a global network of over 175 leading convention centres in 57 countries with the active involvement of more than 900 management-level professionals worldwide.

Click here to view a summary of the AIPC’s annual Performance and Prospects Survey for 2015.

Images: The Adelaide Convention Centre (top) and Geoff Donaghy (below).




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