VENUE OUTLOOK ’08

1. VENUE OUTLOOK ’08 Facilities to Facilitators International Convention Center Conference 2007 • Boston, MA

2. Themes • Convention Centers • Marketing • Technology • Exhibitors • Las Vegas • Airports & Convention Centers • Outlook Q&A

3. Convention Centers

4. Venue Supply vs. Demand Annual Growth Source: TSW

5. Total Convention Center Space MIL Sq Ft 7.8 million square feet in pipeline Source: Tradeshow Week

6. U.S. & Canadian Convention Centers, Exhibit Halls Source: Tradeshow Week

7. Average U.S. & Canadian Convention Center Average Number of Meeting Rooms 2007: 27 Source: Tradeshow Week

8. Average U.S. Hotel Exhibit Hall Average Number of Meeting Rooms 2007: 40 Source: Tradeshow Week

9. Convention Center Size Breakout Square Feet Source: Tradeshow Week

10. New Builds and Expansions August 2006 to July 2007 2.5 million square feet of new exhibit space Source: Tradeshow Week

11. New Venues and Expansions in Development Source: Tradeshow Week

12. Number of U.S. Venues by Location Source: Tradeshow Week

13. Number of U.S. Venues by City Source: Tradeshow Week

14. New Convention Centers & Expansions • 22 new venues in-process • 40 expansions • 16 major renovations in process • 7.8 million square feet of exhibit space in pipeline – up 3% for total projects reported in 2006. • Pipeline meeting space is up 4.7%. Source: Tradeshow Week

15. 2006 vs. 2007 Exhibit & Meeting Space Pipeline Forecast Increase (Projects 2007 to 2010+) Source: Tradeshow Week

16. New Convention Centers in Development Average Exhibit Space: 148,896 square feet Source: Tradeshow Week

17. Timeline for Projected Added Exhibit Space EXPANSIONSNEW BUILDS Source: Tradeshow Week

18. Marketing

19. How is Convention Center Success Measured? • Total number of booked hotel rooms 79% • Total economic impact 68% • Hotel community occupancy levels 38% • Total number of visitors 36% • Convention center profit/loss 45% • Visitor-related tax revenues 30% • Public relations 21% • Bureau profit/loss 2% • Hotel community gross sales/profit 7% • Do not measure 11% • Other 16% Source: Tradeshow Week, ACME

20. Re-Branding? • Are you undergoing a re-branding? • Yes, we conducted this in 2006 31% • Yes, this is underway for 2007 18% • Planned for 2008 13% • No 38% • When was previous re-branding? • Before 1999 36% • 2000 to 2001 23% • 2002 to 2006 41% Source: Tradeshow Week, ACME

21. Do You Maintain Incentive Funds? Source: Tradeshow Week, ACME

22. How are Incentive Funds Allocated? • To only select event producers with a certain combination of a high level of historical economic impact and total hotel room nights (65%) • To all event producers with a certain level of historical total hotel room nights (29%) • To event producers that will sign long term agreements to anchor to our city or to add the city to a set rotation pattern (23%) • To event producers that ask for discounts and incentives from the bureau or venue (19%) • To all event producers with a certain level of historical economic impact (16%) • To all event producers with a certain level of historical attendance (10%) Source: Tradeshow Week, ACME

23. What is the Source of the Incentive Funding • CVB budget item (42%) • Tax revenues (32%) • A special fund allocated by the hotel and hospitality (23%) • Municipal (or other) governmental general fund (13%) • Convention Center operating income or reserves (10%) • Other (16%) Source: Tradeshow Week, ACME

24. Do You Provide Attendance Marketing Support Source: Tradeshow Week, ACME

25. Venue Attendance Marketing Support • Public relations support: 87% • Adding event information to the venue web site(s): 71% • Enhanced signage in airport(s), around the city before the event: 58% • Liaison with city, state, regional affiliated groups or government agencies: 52% • Emails to potential local attendees: 45% • Venue discounts/rebates: 42% • Mailings to potential local attendees: 39% • Hotel discounts/rebates: 29% • Entertainment, sports, cultural event or facility discounts: 29% • Assistance securing event speakers, keynoters: 19% • Advertisements for the event paid for by the CVB or venue: 16% • Marketing to international attendees: 16% • Travel and/or lodging incentives, discounts: 16% • Cash payments/rebates/marketing support fees: 13% • Telemarketing to potential attendees: 3% Source: Tradeshow Week, ACME

26. New Services Being Offered by Venues • Attendance promotion • Adding or enhancing business centers • Expanding greeter, concierge and VIP desk programs • Offering a single point of contact for all services • Expanding special taxi and bus departure areas • Valet parking at the venue • Video conferencing services • Wireless internet • Streaming video for attendance building Source: Tradeshow Week, ACME

27. Does the Venue have Green Initiatives? Source: Tradeshow Week, ACME

28. Have Green Initiatives Helped Win Business? Source: Tradeshow Week, ACME

29. Has Lack of Green Initiatives Lost Business? Source: Tradeshow Week, ACME

30. Are You Going for LEED Certification? Source: Tradeshow Week, ACME

31. Biggest Marketing Challenges • Besides concerns about being a second or third tier city, budgets, exhibition space size and quality, and number of hotel rooms, the main challenges are: • Available dates – “everyone wants the same window for dates” • Breaking through to reach decision makers • Building destination awareness or trying to change perception • Getting meeting planners to visit the market • Helping event planners to market the destination • Differentiating from competition – “having a unique message” • Third-parties that are between the client and the venue/destination/hotels • Venue and CVB relationships Source: Tradeshow Week, ACME

32. Biggest Marketing Opportunities • Marketing affordability and safety – especially in second tier markets • Continued economic development • New hotel development, new venues and expansions • Healthy hotel tax revenues • Enhancing customer service • Online marketing initiatives • Customized, customer-specific marketing • Strong face-to-face marketing and meetings industry Source: Tradeshow Week, ACME

33. Technology

34. “Every show is a tech show.” -- IT Director with one of the largest convention centers in the U.S.

35. Venue GMs on Technology Attributes that Will Become More Important Over the Next 10 Years Source: Tradeshow Week Research, HNTB

36. Exhibitors’ “Must Have” Booth Features • 50% of exhibitors say they’ll need “upgraded telecommunication and internet services” at shows in the next 2 to 3 years. Source: Tradeshow Week Research

37. Venue Users Want Two Technology Features Today • Faster, better, cheaper internet (especially wireless) • More and better qualified customer service staff and technicians

38. Top Show Producers: How Important Will Online Video be Over the Next Two to Three Years? • Only 8% of show producers live stream online content during their shows today. Source: Tradeshow Week Research

39. Implications for Convention Center Owners, Administrators and Stakeholders • Technology services, like F&B, have been an area where venues can hold rates. • Service levels and staffing will likely be more important than major technology upgrades in the near term. • A venue technology arms race in the mid- to long-term is likely – as online content explodes.

40. Technology Will Help Convention Centers Migrate from… Facilities to Facilitators

41. Exhibitors

42. Exhibitors on Improving Convention Centers Exhibitor Survey Question: In your opinion, how can convention centers and exhibition halls be improved from a design and functionality standpoint? • F&B • “More dining options within the halls.” • “More food courts and seating areas within exhibition area.” • “Better restaurants so that we do not have to leave the center to entertain a customer.” • “More seating areas and more places to get something to eat or drink. What good is finding food and drink if there's no place to sit down and enjoy it?”

43. Exhibitors on Improving Convention Centers Exhibitor Survey Question: In your opinion, how can convention centers and exhibition halls be improved from a design and functionality standpoint? • Services & Technology • “Have more than one service desk located in each hall.” • “Easier installs for electrical, internet and satellite/cable feeds.” • “More wireless internet, better cell phone access, ease of getting around in large halls, less prohibitive internet fees.” • “Specifically, I'd like to see Wifi available very inexpensively or for free in common areas. more access/entrance points.”

44. Exhibitors on Improving Convention Centers Exhibitor Survey Question: In your opinion, how can convention centers and exhibition halls be improved from a design and functionality standpoint? • Overall Design and Layout, Other • “Have more than one service desk located in each hall.” • “Better load in/load out docks, better storage areas.” • “Trucking and shipping continue to be the biggest headaches.” • “Get away from conventional layouts and do other things, all toward making attendance/participation a real ‘experience’.” • “Always improving directional signage, better cell reception, variety of food and beverage venues, additional networking areas.” • “Higher ceilings, larger freight doors.”

45. Shifted Event Funds • In 2006, 30% of exhibitors had some of their event marketing funds shifted to web sites and email marketing. • This percentage has held steady since 2003. Source: Tradeshow Week

46. Exhibitors on Today’s Attendees Source: Tradeshow Week Research

47. Challenges Facing Exhibitors Source: Tradeshow Week Research

48. Is there more pressure from corporate to prove ROI? Source: Tradeshow Week Research

49. How Many Exhibitors Track ROI? Source: Tradeshow Week Research

50. Must Have Booth Features • 50% of exhibitors say they’ll need “upgraded telecommunication and internet services” at shows in the next 2 to 3 years. Source: Tradeshow WeekResearch