Bridget Baker Consulting CONFERENCE MARKET DEMAND STUDY PLYMOUTH JUNE 2020 1 Bridget Baker Consulting Ltd Plymouth City Council – Conference Demand Study Bridget Baker Consulting Ltd 30 Southdown Avenue Brighton BN1 6EG Phone +44(0) 1273 560655 Mobile +44 (0)7941 461 180 [email protected] Table of Contents 1. Introduction 3 2. Executive Summary 4 3. Supply & Pricing of Conference and Events Facilities in and around Plymouth 8 4. Conference & Events Demand in Plymouth 11 5. Regionally Competitive Destination in the UK now and in the Future 24 6. Overview of the Demand Trends in the Conference & Events Market in the UK & South West of England 27 Appendices A – Plymouth Organisations contacted & Conference Plymouth members B – Events Bookers Interviewed in Telephone Research C – Local Conference Venue Survey D - Recent/Booked Large Events at Venues in the South West www.bridgebaker.co.uk 2 Plymouth City Council – Conference Demand Study 1.0 Introduction 1.1 Background Plymouth City Council (PCC) are keen to understand the current situation regarding the conference and events market in Plymouth. The study is also be used to identify opportunities and strategies to support ‘MICE’ activity and subsequent economic growth in the city. A summary of the key aims are: • An overview of the current volume and value of ‘MICE’ (Meetings, Incentive, Conference and Events) activity within the city; • Identification of gaps in provision within the city and its immediate environment; • An overview of the current national and international ‘MICE’ sector; • Identification of key market opportunities both short and longer term. This report responds to your brief. 1.2 Methodology In order to meet your objectives we undertook the following research. • A start-up meeting with you both to understand your rationale and aspirations regarding the study. • Meeting with the Chief Executive of Destination Plymouth to understand recent trends, developments and the future strategies for tourism in the city. • An audit from various published sources to understand the range of event venues in the Plymouth area. • Discussions with your team to understand potential new hotels and event venues that are in the planning stage, or already under development. • From weddings data provided by your registration officers we identified the number of weddings that are taking place in Plymouth. • Attended a meeting of Conference Plymouth to meet local venues and seek their support in providing performance data to us via a short survey, and also held short interviews. • Meetings with selected venue management in the Plymouth area to understand local trends. • Conducted telephone interviews with regional and national conference buyers - this included corporate associations buyers and agencies – to explore what the drivers might be to encourage corporate, association and agency event buyers to place their annual conferences in Plymouth. • An assessment of relevant recent trends of the UK conference & events market based on published data. This included identification of competitive destinations/venues, now and in the future, within the UK and the South West of England in particular. • From our local venue survey research, we assessed the sources of the events business, and volume, value, type and seasonality of demand. • Recommendations as to MICE Marketing activities going forward. Our findings are set out in this report. www.bridgebaker.co.uk 3 Plymouth City Council – Conference Demand Study 2.0 Executive Summary 2.1 The UK Events Market • Prior to the current COVID-19 crisis the number of conference events held in the UK was buoyant and 2018 was a record year with almost 1.5m events held throughout the country. This was significantly higher than the average number of events for the last decade, at £1.33m. Table 2.1 - Volume of business events in the UK 2008 - 2019 Source: UKCAMS 2019 • Most events in the UK are for fewer than 200 delegates with only around 5% for 200+, and one percent for more than 500 participants. The latter group however are important for major venues in leading UK destinations in terms of economic impact. Table 2.2 – Size of Events 2016 - 2018 Source: UKCAMS 2019 • Based on our extensive knowledge of the UK MICE market, smaller meeting rooms generally have higher occupancy levels than the largest rooms due to the higher demand for small scale events. Large conference rooms at major venues in the provinces frequently achieve www.bridgebaker.co.uk 4 Plymouth City Council – Conference Demand Study occupancy levels in the range 30% - 40%, particularly if they are not multi-purpose and able to host different types of events. • London is used by more than 70% of UK event organisers, and Birmingham and Manchester are the next most used. The nearest destinations in the South West/West that feature in the top 20 most popular UK conference destinations are Cardiff (7th) and Bristol (8th). Plymouth is not ranked. (BMEIS 2019). • Leading South West venues that host national conferences are the Riviera Centre in Torquay, Sandy Park in Exeter and various venues in Bristol. The new Wales International Conference Centre (WICC) opened in Newport last year and is already attracting large events. It is located at the Celtic Manor resort which is already an established hotel, leisure and conference destination. 2.2 Plymouth Venue Supply • Currently Plymouth has around 76 venues that offer space to hold conferences and other related events. Around a third of these are hotels, 14% academic, 12% entertainment, 12% country club/banquet, 6% sporting, 6% municipal venues, the rest are various types of venues. • The largest venue is the Pavilions which is mainly an entertainment venue, although it is used for some trade show style events. • The Guildhall is the second largest venue that can host theatre style events in its Great Hall of more than 700 delegates and has other smaller spaces for breakout sessions. The Great Hall is an attractive venue for gala dinners and weddings with many historic features. Since the venue re-opened in 1959 however, very little redecoration or modernisation has been undertaken, which makes it unappealing and not suitable for professional conference organisers. • Most of the venues in Plymouth have one large room but do not have the benefit of adjacent space for exhibition use, breakout sessions and catering. 2.3 Current Plymouth Conference and Events Demand • We conducted a survey of the current activity at the conference events venues in Plymouth and of potential bookers who place events in the South West, Plymouth and/or nationally. • All of the larger venues in the city centre responded to our venue survey. Our findings show that there were around 2,800 events in 2019 at these venues. As these are the largest venues locally this gives a good indication of the main events that take place in Plymouth. • The survey highlights the prevalence of local events; smaller meetings, board meetings, private parties and Christmas parties. All of these are also less likely to generate overnight stays and additional spend as they cater for a local audience. There are very few larger Corporate and Association Conferences, and only a limited number of larger residential conferences (over 200 delegates). The city is therefore not benefiting from the increased visitation, and expenditure, that larger conference events can bring to a destination. www.bridgebaker.co.uk 5 Plymouth City Council – Conference Demand Study Table 2.3 – Number of Events by Type at Plymouth Venues CC = Corporate Conferences Source: Bridget Baker Consulting analysis of survey data 2.4 South West England Events Supply & Demand • Unlike other destinations in the South West Plymouth does not have a dedicated non- residential conference venue. Key competitors regionally are the Riviera Centre in Torquay and Sandy Park in Exeter. Bristol is set to have two new venues in forthcoming years. • All of these destinations are able to attract large national and regional residential conferences and associated events. This includes National Association and Corporate conferences. These bring new visitors to the destination and the associated economic benefits. 2.5 Plymouth as a MICE (Meetings, Incentives, Conference, Exhibitions) Destination & Critical Success Factors • Aside from the attributes of the local venues, there are a number of critical success factors in order to attract large national, and international, conferences and the associated economic benefits. These are: Table 2.4 – Critical Success Factors of a MICE Destination Key Factor Plymouth Rating Suitable venues Lacking large non-residential venue Hotel Supply Good Range Marketing of the Destination Poor Other activities for Delegates Wide range of different activities Access / location Less attractive than some destinations Source: Bridget Baker Analysis www.bridgebaker.co.uk 6 Plymouth City Council – Conference Demand Study 2.6 Recommendations for MICE Marketing Moving Forward • On 1 April 2020 Destination Plymouth and Conference Plymouth merged. We were advised that going forward the merged organisation will be responsible for promoting venues across the city working with key local partners. The merger should assist in addressing the historic limited MICE promotional activities. • When the new organisation is fully functioning and funded we would expect more activity to promote and raise awareness of Plymouth as a conference destination. We would suggest that this would include, but is not limited to, the following initiatives: