Insider Media Limited

Business tourism is huge in the Midlands. I mean huge. It contributes more than £10bn a year to the region’s economy and employs more than 200,000 people. Yet its profile is just a fraction of other sectors such as automotive and financial services.

But with many companies looking to cut marketing spend this year, how is the industry reacting, and how can it drag big events away from rival cities such as London?

There has been real encouragement for Birmingham over the past five years. The main political parties have been ready to jettison the tired seaside towns as venues, and with Labour and the Conservatives holding annual conferences in Birmingham last year, the city has become the place to be to pick up on political gossip.

The events industry in Birmingham, and the West Midlands in general, is vitally important to the economy, generating £6.6bn per year and supporting almost 100,000 jobs.

But tough times mean hard work to maintain the momentum, says Ian Taylor, commercial director at Marketing Birmingham.

“As a city we must aggressively target event organisers to hold their events in Birmingham over any other city,” he says. “That means continuing with the partnership approach that has proved so effective in 2008 between Marketing Birmingham, Birmingham City Council, The NEC Group, West Midlands Police and other key organisations, attracting and successfully hosting the Conservative Party Conference and Labour Party Spring Conference.”

Following on from these successes, Birmingham will host the British Chamber of Commerce Annual Convention in April 2008 and the 100th Rotary International Convention at The NEC in June, attracting up to 20,000 visitors from around the world.

But the bigger cities in our region are not keeping the region buoyant by themselves. Take Pera in Melton Mowbray, for example. Rachel Spencer, Pera’s conference and events manager, says: “It’s estimated that Pera’s Conference and Exhibition Centre will attract 20,000 visitors to Melton Mowbray in 2009. If we multiply figures like this across the conference and exhibition centres in the region, then the number of visitors is huge.”

And she is right, of course, because there are benefits across the board. Local caterers, taxi drivers, restaurants and hotels are all winners.

Recognising the importance of the facility to the region, during 2008 the facilities at Pera underwent a programme of refurbishment, upgrading the 450 sq m conference and exhibition hall and creating a suite of 13 meeting rooms around a large exhibition space.

Spencer adds: “What brings 20,000 conference delegates and exhibition visitors to Melton is the standard of the facilities and the service we provide. We work with clients to develop the concept and theme for conferences and events, provide promotional materials and utilise extensive marketing skills and support services to help make everything a success.”

Telford and Shropshire is another destination outside the major cities pushing for a share of the market. The county pulls in more than 1.6 million visitors a year to more than 5,000 events.

This year the £28m Theatre Severn will be launched and Blists Hill Victorian Town attraction expanded, as well as announcements on a number of multimillion-pound developments in Telford, including a new Convention Quarter.

The year also has the “celebration of imagination” – a year-long programme of events marking the bi-centenaries of the births of Shrewsbury’s great scientist Charles Darwin and Much Wenlock’s Dr William Penny Brookes, credited with inspiring the modern Olympic Games.

Sarah Bird is business tourism manager for Transforming Telford, which operates Telford & Shropshire Conferences, the convention bureau.

She says: “The level of investment will ensure we continue to provide world-class facilities for visiting business. We’re already seeing more interest from certain business sectors, such as polymers, innovation and food and drink, simply because of the quality, relevant facilities we already have.”

In Nottingham, too, there is a push to make the city a conference destination. It is aiming to be one of the top three UK cities for conferencing by 2010, according to the Nottinghamshire Convention Bureau – the organisation that promotes conferencing and business tourism in the county.

Nottingham achieved sixth place as a leading national conferencing destination in the latest UK Conference Market Survey. And the city has ambitions to make its offer a first choice for organisations seeking locations for events – especially those in the medical and bio-science arenas. It is one of six designated UK Science Cities.

Helen Sisson, tourism leader at Experience Nottinghamshire, the official tourist board that oversees the Nottinghamshire Convention Bureau says: “The conferencing and association market is a large, profitable sector Nottingham is well placed to dominate.

“Scientific and medical associations, with their links through the universities and hospitals, hold many events here. The city recently played host to the British Society of Haematosis and Thrombosis and The British Association of Sexual Health and HIV.

“We intend to capitalise on the fact that associations rank Nottingham sixth as the city they most often select for conferencing, with Nottingham residing above other core cities such as Liverpool and Cardiff.”

The first step in trying to bump Nottingham up the rankings was the Nottingham Familiarisation Trip 2009 held in late January. The event was organised by the Nottingham Hotelier’s Association (NHA) and Experience Nottinghamshire. City hoteliers organised the trip to raise awareness of Nottingham as a capital for conferences, events, exhibitions and tourism.

Rather than work independently during the downturn, Nottingham hoteliers have united to win new business and share the benefits collectively.

Paul Fearon, chairman of the NHA, is proud to be showcasing Nottingham. He says: “The interest and support for this initiative has been staggering. Everyone agrees the future benefits and success of a united sales pitch to the UK booking agents is inevitable.”

There has been a marked increase in the number of academic venues providing providing conference and event facilities. The University of Leicester has been at the forefront of this. Trevor Miller, conference & hospitality sales and marketing manager, says: “Our message is clear – helping customers recognise the benefits of choosing Leicester Conferences as a venue that provides competitive packages offering comparable facilities, equipment, catering and service to conventional conference centres and hotels.

“Recognising the importance of business tourism is central to our business as a conference venue. We have been working closely with local partners through Leicester Shire Promotions and focusing on ways to increase business tourism to the region.”

In July Leicester will host the Special Olympics GB 2009 Summer Games, which will bring a significant level of tourism to the region, starting with a pre-games residential conference for 200 delegates at the University’s Oadby site in April.

Miller adds: “I’m sure venues outside London are looking on with interest at what the 2012 Olympic event will bring with regard to the increased occupancy of London venues.

“Since Leicester is central in the UK, the opportunities to get the maximum out of displaced business income streams are being considered. Opportunities will arise from the Games, but also from events looking elsewhere because of capacity issues.”

Yet the downturn hangs heavy over the industry, so how is it going to stimulate business when money is short?

Miller says: “We remain optimistic. Customers are still looking to book venues; but the clear message is that value for money is essential as budgets are being squeezed.”

Spencer points out that many companies will not bother with expensive overseas trips this year. She says: “We face serious challenges, simply because fewer companies will be spending less on their event. On the plus side, overseas conference venues have become expensive for companies and we can offer a more cost-effective solution than the major cities of the UK.”

Emma Boynton, head of sales and marketing at Imago, Loughborough University’s conferencing arm, is realistic about the effect the downturn may have on business levels.

“The results of this trading climate are just starting to affect our business,” she says. “Some of our larger clients have announced redundancies, which have a knock-on effect on spend. Others are taking longer to review budgets, resulting in shorter lead times in placing requirements. We are being flexible to accommodate them.”

Taylor is also looking to future. He adds: “These events encourage growth in the region and improve perceptions of Birmingham as an events destination, so that when the economy bounces back, the city will be top of mind for those planning an event.”