Pennsylvania Convention Center Expansion 23 and Hotel Development
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THE r OF PHILADELPHIAPowe AS AN EVENT HOST DESTINATION SPECIAL REPORT DEVELOPED BY 1 2 TABLE OF CONTENTS 4 INTRODUCTION 6 EVENT PRODUCER TESTIMONIALS 8 EXECUTIVE SUMMARY 12 PHILADELPHIA EVENT INDUSTRY PROFILE GREATER PHILADELPHIA AREA PROFESSIONAL 16 AND ECONOMIC DEMOGRAPHICS 20 PHILADELPHIA ACCESSIBILITY 22 NEW PROGRAMS FOR EVENT PRODUCERS PENNSYLVANIA CONVENTION CENTER EXPANSION 23 AND HOTEL DEVELOPMENT 33 SITE-SELECTION TRENDS SURVEY ABOUT THE PHILADELPHIA CONVENTION & VISITORS BUREAU 37 & PENNSYLVANIA CONVENTION CENTER AUTHORITY 3 1 INTRODUCTION Philadelphia is one of the most exciting, urban chic cities in the world and thriving as a smart place to live, work, visit and prosper. The City is situated in the middle of the nation’s Northeast power corridor between New York City and Washington D.C., and 40% of the U.S. population is within a one-day drive. Philadelphia is also an accessible city. Center City, Philadelphia’s downtown, is one of the most compact and walk-able tourism and convention districts in the nation, with 8,500 hotel rooms within a fifteen-minute walk to the Pennsylvania Convention Center. Philadelphia’s economy is highly educational and knowledge-based. It is one of the leading regions for the Life Sci- ences, Energy and Financial Services industries. Within a 200-mile radius of Greater Philadelphia is a GDP equivalent to the world’s 5th largest economy. The city has invested significantly in the convention, exhibition and meetings industry. In March 2011, the $787 mil- lion expansion of the Pennsylvania Convention Center was unveiled. The Convention Center’s expansion increases total meeting and exhibit space by more than 60 percent. The expanded Pennsylvania Convention Center located in the heart of downtown, is now the 14th largest convention center in the U.S., with the largest contiguous exhibit space in the Northeast (528,000 square feet), the largest convention center ballroom on the East Coast (55,400 square feet), and 79 meeting rooms. This special report THE POWER OF PHILADELPHIA has been developed by EXPO Magazine to highlight the strength and value of Philadelphia as a major convention, exhibition and meeting host city and provide event producers with analysis of current site-selection trends and best practices. The report covers the following: The size & scope of Information on new How convention, Philadelphia’s venue expansion, exhibition and professional & hotel & other meeting planners economic developments in are selecting demographics.1 the city.2 cities today.3 The report highlights Philadelphia’s leadership in various industry sectors and place as a top-tier event host city in North America. 4 INTRODUCTION 3 5 2 EVENT PRODUCER TESTIMONIALS The strategic location of Philadelphia, in the heart of the Northeast corridor, coupled with the City’s affordability and accessibility, allowed us to grow show attendance, conference attendance, booth space sales, exhibitor participation, renewal rates, and overall customer satisfaction in our event. Kerry Gumas President & CEO Questex The city of Philadelphia is an ideal destination for any type of meeting or convention. The American College of Physicians has planned numerous Annual Conventions in the Pennsylvania Convention Center. Philadelphia has a winning combination to offer planners, in terms of location, accessibility, history, culture, dining, hotels and convention services, not to mention the wonderful facilities at the Pennsylvania Convention Center. Philadelphia truly has the whole package. Bobbie Turner Director Convention and Meeting Services American College of Physicians 6 EVENT PRODUCER TESTIMONIALS Nothing says innovation more than Philadelphia! The professionalism and partnership we’ve found in the Philadelphia hospitality community makes it a real pleasure to bring our annual conference to the City of Brotherly Love again and again. From world-class restaurants and nightlife to great hotels and iconic history, our attendees have a great time discovering (and rediscovering) everything that Philly has to offer. Donella Evoniuk Senior Director, Conference Services International Society for Technology in Education (ISTE) From the planning process to on-site execution, our meeting was an all-around success! The Philadelphia team really stepped up to the plate for our staff and our delegates to make this Summit work. Ron Mickey General Manager, Marketing Programs SunGuard Higher Education 7 3 Philadelphia is one of the leading cities in the world. Located in between New York City and Washington D.C., 40% of the U.S. population is within a day’s drive. Philadelphia’s downtown, known as Center City, is one of the most accessible, compact tourism and convention areas in the nation with the following number of hotel rooms close to the Pennsylvania Convention Center: hotel rooms within a 3,600 two-minute walk. 6,400 hotel rooms within a 10-minute walk. hotel rooms within 8,500 a 15-minute walk. hotel rooms within 10,700 a 10-minute drive. 17,200-plus hotel rooms within a 30-minute drive. 8 Traveling to Philadelphia is only one hour and 20 minutes from New York City and 1 hour and 45 minutes from Washington, D.C. via Amtrak’s Acela Express line. Thirty airlines serve Philadelphia International Airport providing 625 daily nonstop flights to and from 121 domestic and 36 international destinations. The region is particularly strong in a number of knowledge-based industry sectors, including Life Sciences, Chemicals, Financial Services and Information Technology. In fact, the region’s Life Sciences sector was ranked #2 in the nation by the Milken Institute in 2009. QUICK PHILADELPHIA STATS 1,547,297 population. 3rd most populous downtown in the U.S. 46 million people live in a 200-mile radius of the City. hotel rooms within a 10-minute walk. 12th most international-visited city in the nation. 101 colleges & universities in the region. Within a 200-mile radius of Greater Philadelphia is a GDP hotel rooms within equivalent to the world’s 5th largest economy. a 10-minute drive. The Greater Philadelphia region is the BASE FOR OVER 100 FORTUNE 500 COMPANIES located within a 200-mile radius of the City. In 2009, the City drew 36.6 MILLION VISITORS and was the FASTEST-GROWING DESTINATION FOR INTERNATIONAL TRAVELERS among the top 20 U.S. markets. 9 SITE-SELECTION TRENDS SURVEY Key findings from the EXPO Magazine and Philadelphia CVB survey of convention, exhibition and meeting planners on site-selection trends are provided here. Importance of Affordability, Accessibility and Demographics to Site-Selection Decisions1 90% 84% 80% 80% 70% 60% 50% 38% 40% 30% 20% 10% 0% Affordability Travel/Transportation Business Access Demographics Source: EXPO Research THE TOP FACTORS TO EVENT PRODUCERS WHEN SELECTING HOST CITIES INCLUDE: Hotel room prices: according to 90% of event producers Availability of open dates: 79% Hotel room quality: 79% Hotel room availability: 74% Convention center and exhibition hall size/quality: 72% Airport capacity and airfares: 69% Hotel block attrition policies: 66% Quality of area near the venue/HQ hotel: 64% Proximity of HQ hotel(s) to the convention center: 64% Accessibility and walkability: 57% 1 Event producers that selected “Extremely important, critical/Very important”. 10 11 PHILADELPHIA EVENT INDUSTRY 4 PROFILE Overall, the Philadelphia Convention & Visitors Bureau (PCVB) currently has booked $2.7 Billion in expansion business. Convention and Meeting Market Segments PHILADELPHIA’S CONVENTION AND MEETING SECTOR IS A LEADER IN HOST- ING LIFE SCIENCES AND MEDICAL EVENTS, ALONG WITH TRADESHOWS. THE CITY’S SHARE OF MARKET BY NUMBER OF EVENTS IS PROVIDED BELOW. 50% 48% 45% 40% 35% 30% 25% 20% 16% 16% 15% 12% 10% 5% 5% 3% 0% Life Trade Government Religious Corporate Other Sciences Association Source: Philadelphia Convention & Visitors Bureau 12 Strong Attendance at Recent Philadelphia Conventions In October 2009, the American College of Rheumatology (ACR) and Infectious Disease Society of America (IDSA) conventions were both held at the Pennsylvania Convention Center and the events tied or set attendance records. The ACR, celebrating its 75th anniversary, tied the record it set in 2008 with 14,900 attendees from around the world. This show was followed by IDSA which experienced larger-than-expected international attendees and record attendance. These events were followed by the American Public Health Association, which held its 137th Annual Meeting at the Pennsylvania Convention Center, with 10,500 attendees. In June 2010, the National Athletic Trainers Association (NATA) drew a record number of attendees – 11,666 – to their annual convention held in Philadelphia. In late June and early July, the Barbershop Harmony Society, also held at the Pennsylvania Convention Center, saw an increase of more than 20 percent over the 2009 convention in Anaheim, CA. Philadelphia’s 2011 Major Citywide Conventions CONVENTION ATTENDANCE American Bus Association 3,000 Buyers Market of American Craft 8,000 National Association of Student Personnel Administrators 3,000 Association of periOperative Registered Nurses 14,000 Association of College & Research Libraries 4,200 Office of Brownfields and Land Revitalization 5,000 Council On Foundations 2,200 American Occupational Therapy Association 5,000 World Spirit Federation 5,000 American Transplant Congress 5,000 American Association for Thoracic Surgery 4,800 LIGHTFAIR INTERNATIONAL 23,000 Special Libraries Association 8,000 International Society for Technology in Education 10,000 Jesus Awakening