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MEEC. Chapter Eleven Convention and Visitors Bureaus. Role and Functions of CVBs. A CVB is a not-for-profit organization supported by transient room tax, government funds and private membership in order to:
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MEEC Chapter Eleven Convention and Visitors Bureaus
Role and Functions of CVBs • A CVB is a not-for-profit organization supported by transient room tax, government funds and private membership in order to: • Encourage groups to hold meetings, conventions and tradeshows in the city or area it represents; • Assist those groups with meeting preparations while their meeting is in progress; and • Encourage tourists to visit and enjoy the historic, cultural and recreational opportunities the destination offers.
Role and Functions of CVBs • The Purpose of CVBs: • Help the long term economic development of communities through the travel and tourism business; • Bring together businesses that rely on tourism and meetings for revenue; • Serve as official contact points between their destination and meting professionals, tour operators and individual tourists.
Role and Functions of CVBs • The Value of CVBs: • Offer unbiased information about a destination’s services and facilities; • Act as “one stop shop” for meeting professionals; • Provide full range of information about a destination; • Do not charge for most of their services
How CVBs are Organized • Organizational Structure • 63% of CVB’s are independent organizations • 24% are some form of government agency • 7% are a division of a chamber of commerce • Average CVB has 14 employees and a Board of Directors of 16 voting members with 6 people serving on an Executive Committee • 53% of CVBs are membership organizations averaging 663 members representing • 24% convention services and suppliers • 20% lodging establishments • 15% restaurants • 10% retail
How CVBs are Funded • Funding mechanisms include: • Average tax rates: • 11.6 % hotel room tax – 56% of which goes to the CVB • 8.7 % car rental tax • 7.1% general sales tax • 7.5% restaurant tax • 82% of CVBs budgets are funded by hotel room taxes • 18% of the budget comes from membership dues, advertising, merchandise sales, etc.
CVBs Expenditures • On average CVBs spend their income as follows • 27% Convention Sales and Marketing • 25% Tourism Marketing • 20% Administration • 9% Communications • 6% Visitor services • 4% Membership • 3% Convention services/housing • 6% Other
Convention Marketing & Sales • CVB Sales manager assigned to assist in the process: • Gathers relevant information about dates, guest room and meeting requirements, and appropriate properties and convention center, if needed • Produces sales leads • Specifications about the particular meeting • Distributed to members of the CVB as appropriate
Convention Marketing & Sales • CVB Sales manager assigned to assist in the process: • Monitors the process • Assures that client receives information from members • May relate prices but MAY NOT negotiate prices on behalf of properties • Sets up site visits • Develop itinerary, establish schedule, set up appointments • Informs client about local laws, union issues, taxes, etc.
CVB Services for Meeting Professionals • Encourage groups to hold meetings in the city • Locate and check space availability in hotels, convention centers and other facilities • Arrange for site visit and familiarization tours • Provide detailed information on all venues
CVB Services for Meeting Professionals • Assist groups with meeting preparations • Give planners access to a range of services from supplier members • Act as information database and one-stop-shop for facilities and services • Develop transportation network – shuttle services, ground transportation, airline information • Assist with on-site logistics and registration • Suggest local speakers and educational opportunities • Help to secure auxiliary services
CVB Services for Meeting Professionals • Help to market the destination • Provide promotional materials to encourage attendance • Suggest pre-post conference tours • Highlight cultural attractions, events and activities • Establish and monitor room blocks • Provide housing bureau if required • Serve as official point of contact • Act as liaison between community officials and planners • Arrange for special permits • Provide access to special venues
IACVB Services • International Association of Convention and Visitors Bureaus • Over 1200 professional members representing over 500 CVBs • Purpose: to enhance the professionalism, effectiveness and image of destination management organizations worldwide • Promotes bureaus worldwide • Links CVBs with consumers and planners • http://www.officialtravelguide.com/ • Conducts a variety of educational programs
IACVB Services • MINT (Meetings Industry Network) • A database that contains historical meeting data of over 25,000 events and future bookings • Aids the supplier and planner in negotiations and RFP process • www.MINT.org • RFP Bid Proposal Program • Electronic Request for Proposal program is available at www.iacvb.org • Destinations Showcase • Annual one-day exhibit of CVBs and their exhibit facilities • Held in Washington DC, New York and Chicago
IACVB Services • ExPact Study • Convention Expenditure and Impact Study • Demonstrates the value of of the convention and trade show industry to the overall economy • IACVB Professional Development • A variety of educational opportunities for CVBs and their employees • Certified Destination Management Executive (CDME) a global recognition for CVB executives
IACVB Services • IACVB Foundation • Sponsors research and resources • Compensation and Benefits Survey • CVB Organizational & Financial Profiles • ExPact Study • IACVB Resource Center
Review • Role and Functions of CVBs • How CVBs are Organized • How CVBs are Funded • CVBs Expenditures • Convention Marketing & Sales • CVB Services for Meeting Professionals • IACVB Services