AIPC, the International Association of Congress Centres, and Red 7 Media worked together to conduct a study of the association’s members which consist of approximately 170 major global convention centers around the world. Nearly half of AIPC’s membership is European, although a number of leading facilities in the U.S. and Canada, Asia and other regions of the world are members.

A key survey finding is that despite the uneven economic recovery around the world, the global convention and congress center industry experienced 6.8 percent total gross revenue growth in 2010, according to the survey respondents. Growth rates differed significantly by major region of the world. Asian venues experienced substantial 26 percent growth in 2010, and Australia saw strong top-line growth of 9 percent. Europe and North America were more subdued with 4 percent and 2 percent gross revenue growth, respectively, last year.

For 2011 worldwide, AIPC members are collectively forecasting 3.1 percent revenue growth. A solid rebound is expected in 2011 for most regions, except for Europe which is forecasting only 0.1 percent revenue growth. Asian venues see growth slowing to a rate of 6.9 percent. North American members are expecting 3.3 percent top-line expansion, and Australia is the most robust major market in the world with 7.9 percent gross revenue growth expected in 2011.

In 2010 attendance at member venues worldwide collectively grew by only 1 percent. Of the major regions represented by the survey, Asia experienced strong 15 percent attendance growth. North America saw attendance decline by over 6 percent and Europe’s attendance dropped by just under 1 percent.

For 2011, AIPC members are forecasting a more solid 3.6 percent growth rate for overall attendance worldwide. The North America economy has many concerns and headwinds, but the member venues in the region are optimistic about attendance growth, forecasting over 8 percent growth for the entire year, a significant one-year change.

Sixty-three percent of members around the world see a moderate to strong economic recovery, and 37 percent are experiencing a weak recovery, or no recovery at all. But in North America only 10 percent of venues say they are seeing a strong recovery.

The survey asked for the perceived risks to the economic recovery and impact on venue activity and business. There are two main risks for convention centers worldwide—growing competition and economy. There are also secondary concerns about high oil prices and government restrictions on meetings and other policies. Compared to the rest of the world, the North American venues are most concerned about high oil and gas prices increasing transportation costs.

There are also considerable policy differences in various regions of the world that impact the industry. For example, 43 percent of North American venues, and the U.S. facilities in particular, have identified immigration or visa requirements limiting access as a key concern, significantly higher than any other region.

The survey asked how this economic recovery has been different from past recoveries. Around the world 78 percent of venue executives say event clients are negotiating more. The next most common difference is that event management booking windows are shrinking, according to 68 percent of the respondents. These two trends are most pronounced in North America.

Association events are seen as the strongest with the best near-term growth prospects around the world, followed by corporate meetings.

New facility building and expansion activity is slowing overall worldwide, while renovation activity is increasing. Still, 60 percent of member venues are planning a new development project or have one under way. In North America, only 6 percent of the responding member venues are planning or currently developing a new building, while 35 percent are pursuing an expansion and 18 percent are renovating their facility.

Along with this growth are challenges for the industry. The convention, exhibition and events industry is global, but the cities and countries where venues are based define their performance and outlook. Geography is destiny for convention centers.

Some of the key trends uncovered in the survey have long-term implications for venue management. For example, many of the leading venues in the world and most AIPC members are government-owned facilities. Convention centers regularly need significant investments to stay current with technology, make repairs, expand or build new facilities, and add equipment and services. Today, nearly half of European and North American venue managers feel government is less inclined to invest in convention venues.

With governments grappling with lower tax revenues and higher expenditures and commitments, how will convention centers fare in terms of public investment? Governments will still need to invest. Venues experience significant wear and tear and governments are in need of real economic development initiatives around the world, the type that successful convention venues provide. As suggested in the survey results, the venue industry will simply have to develop more robust arguments and possibly longer-term efforts to secure required government investment and support.

The leading venues in the world have never faced more competition and most have not seen a more uneven and unpredictable economic and political environment. On the bright side, they have also never been as integrated with their local institutions and the event and meetings industry has never been so diverse or important to their industries.

Expected Revenue and Attendance Growth 2011 vs. 2010

Source: AIPC & Red 7 Media