Michael Blackley: City must show it means business

Published on Monday 22 June 2009 10:04

NO-ONE could have failed to notice that many of the world's biggest companies and industries have taken something of a knock in recent times. Whether it's banking, insurance, aviation, property or retail, few have been able to shelter themselves from the downpour of economic bad news.

However, those who travel on business remain the creme de la creme of the tourist sector. A business tourist spends 2.5 times more than a leisure tourist when they visit a city. That is crucial to the city's hotels, bars, restaurants, attractions and shops.

All of that amounts to almost 300 million being pumped into the Capital's economy every year, nearly a quarter of total tourism spending.

For that reason, any reduction in business events and conferences can seriously damage a range of different sectors and make life a whole lot more difficult for firms that are already feeling the pinch, especially since a lot of that spending comes in the "off-peak" months such as January, February and March, when the city is generally quieter.

So the latest figures on the association meetings market by the International Congress and Convention Association have provided comfort for Edinburgh.

The city has strengthened its position as the second most popular choice for organisers of these types of events. Indeed, it has also climbed up the world rankings, from 36th place in 2007 to 28th now.

In 2008, the Capital held 57 events that qualify for the ICCA rankings, compared with 41 a year earlier.

Among the diverse events that were brought to the city last year were the 22nd Congress of the International Primatological Society, which was attended by 1,200 people and was said to have brought in 1.7m. Others included the 11th International Conference on Urban Drainage, worth 1.3m, and the International Congress for the Study of Child Language, worth 1.5m.

The success the city has had means it is now attracting more of these types of events than much bigger cities, including Shanghai, Geneva, Munich, Melbourne and Rio de Janeiro.

Sue Stuart, chief executive of the Edinburgh Convention Bureau, which brought in 201 events, including the 57 that had more than 50 delegates and qualified for the ICCA rankings, said: "Moving up the ICCA rankings in the current economic climate is an excellent achievement for Edinburgh.

"It demonstrates the importance of business tourism, not only in economic terms, but also for its value in promoting the city worldwide as a top international conference destination."

She added: "Edinburgh's world-class reputation as a centre of excellence in various fields of research is hugely important in attracting the growing number of specialist conferences in areas such as stem cell development."

Behind Edinburgh, Glasgow was ranked 42nd in the world, while Manchester was 69th and Liverpool 86th. Paris and Vienna topped the table, while Barcelona moved up two places to third.

What makes these international events particularly lucrative is that spend per night per overseas trip is 1.75 times that of UK business trips.

Caroline Packman, head of VisitScotland's business tourism unit, said: "Edinburgh's rise in the ICCA rankings reflects the strong proposition that Edinburgh and Scotland have to offer for international association conferences, with its wide diversity of venues for conferences, receptions and dinners, strong traditions in medical and scientific research, and distinctive culture and heritage."

However, that is not to say the city should rest on its laurels. It has to promote what it can offer – whether through VisitScotland or by other approaches as decided by the Destination Edinburgh Marketing Alliance (DEMA).

It is also essential that improvements are made to the facilities that Edinburgh has to host these events. The expansion of the Edinburgh International Conference Centre (EICC) has hit a number of stumbling blocks but if it can get going it can make a big difference.

New hotel investment is also critical to allowing the city to host these events, because at peak times there aren't enough rooms. August, for example, is practically written off as an option for a conference because there just aren't the facilities.

It would be a positive step as well if another venue was improved to allow it to hold major conferences. The Royal Highland Centre at Ingliston would be an option, as would the Corn Exchange.

"Continued investment in the business tourism product, such as three major new hotel openings in recent weeks: the Apex Waterloo Place, the Hotel du Vin and the Hotel Missoni – and the planned expansion of the EICC – will ensure Edinburgh continues to attract high-profile conferences and hold its own in an increasingly competitive marketplace," said Ms Packman.

Edinburgh has done well to climb back up the rankings, but if it is to retain the top 20 place it held until only a few years ago, more investment has to happen.

Managing to get these big-spending tourists into the city would be welcome relief for a lot of hotels, shops, bars, restaurants and attractions in the city.