With the meetings economy continuing its cautious post-meltdown recovery, the North American group market finds itself at a dynamic inflection point, as Canada and Mexico are promoting their group offerings like never before.
Principally through the Canadian Tourism Commission (CTC), Canada has long pioneered the strategic analysis of the impact of group business to its national economy, most recently in the CTC’s International Meetings, Conventions & Incentive Travel Strategic Plan 2011-2016 report.
Remarkably, perhaps, the rest of the world—the U.S. included—has traditionally lagged behind Canada in such in-depth self-review. That has all changed now, however, as both the U.S. and Mexico have recently completed landmark assessments of the significance of meetings and conventions to their economies. For U.S. planners, one outcome stands to be an enhanced awareness of the range of different planning options both at home and especially across the borders in Canada and Mexico, where they will discover an attractive mix of group assets, advantages and value-adds.
Canada
In 2010, leading image consultancy FutureBrand recognized Canada as the world’s No. 1 country brand. This is but one of several aces in Canada’s group appeal, as Robin Thompson, San Francisco-based director of Northwest MC&IT sales for the CTC, explains.
“With safety, security and ease of doing business among the top concerns for international groups, Canada’s hospitality industry breeds some of the friendliest people in the world, with multinational languages spoken throughout the country,” she says.
While accounting for over half of Canada’s $2.3 billion-plus meetings, conventions and incentives segment, the U.S. has thrown a wild card into the mix: the formation of the CTC-like Corporation for Travel Promotion (CTP), the nonprofit body created by Congress in 2010 for promoting foreign leisure, business and scholarly travel to the U.S.
“The CTP is expected to reach a budget of $200 million annually dedicated to the promotion and sales of the U.S. as both a leisure and a MC&IT Destination,” notes the CTC’s 2010 annual report. “This will most certainly have an impact on the global tourism market and Canada’s feeder markets, as they are quite similar to those of the U.S.”
Also taking stock of how a Canadian dollar that is roughly at par with its U.S. counterpart, Western Hemisphere Travel Initiative restrictions, a weak U.S. economy and a buy-American sentiment are slowing group business for Canada, the CTC modified its strategic approach accordingly. Leaving established stakeholder partners to maintain Canada’s well-established presence in the key association and nonprofit markets of Chicago and Washington, the CTC is leveraging Canada’s brand strength—and the power of digital and social media—to develop new opportunities in secondary and tertiary U.S. markets.
Offering endless options for planners, from breathtaking vistas to first-class hotels and resorts, Canada is also still “harvesting the afterglow” of the Vancouver 2010 Olympic & Paralympic Games. As detailed in the CTC’s 2010 annual report, Seizing Opportunities for New Growth, Canada’s “Behind the Scenes” hosting of senior meeting planning professionals and decision-makers during the Games continues to yield significant leads and bookings from mainly U.S.-based organizations.
“At more than double the yield of a leisure visitor, the MC&IT traveler is very important to Canada,” Thompson says, noting that U.S. group business is up 3 percent over 2010 for a total spend of $1.4 billion. “While there is not much we can do about the exchange rate right now, Canada remains less expensive than most other international locations.”
With other distinct advantages including ease of access and GST rebates on most convention expenses, Thompson points out the enduring tie between the nations.
“Canada is the biggest trading partner of the U.S., so there are always a number of good business reasons for American corporations to do their programs here,” she says.
Also boding well for increased business opportunities: direct air capacity to Canada increased in 2010 by 4.2 percent and is expected to grow by 2.3 percent in 2011.
Economic shifts aside, Canada’s trump card remains the proximity of all major meetings centers to the great outdoors, a signature attribute of the Canadian group experience. Both British Columbia, where principal group coordinates include Vancouver, Victoria, Whistler and Banff, and Alberta, home to Calgary and Edmonton, are exemplars in this regard.
With its breathtaking surroundings showcased for a global audience during the Olympics, Vancouver’s share of the afterglow includes its recent ranking as North America’s top destination for international meetings.
“Vancouver has time and again established its appeal among U.S. and international meeting planners and delegates who look for an exceptional meeting experience in a global destination,” says Wendy Surkan, manager of Eastern U.S. meetings and conventions sales for Tourism Vancouver. “Thanks in large part to the Olympics and the expansion of our award-winning convention center, 2011 has been our biggest convention year yet.”
As British Columbia’s capital city, picturesque Victoria prides itself on its charming conference center, historic hotels and cultural off-site venues, while Whistler, North America’s perennial top ski resort, is also recognized as a global leader in sustainable resort management initiatives. One of the fastest-growing business centers in Canada, Calgary is equally attractive as a year-round leisure draw, while the Edmonton experience, says Ken Fiske, vice president of tourism and special events of Edmonton Economic Development Corporation, “offers inspiring, memorable settings to meet the needs of meeting and convention organizers.”
Mexico
In February 2011, the Washington, D.C.-based Convention Industry Council released The Economic Significance of Meetings to the U.S. Economy, the most in-depth study ever of the U.S. meetings industry. In September 2010, the Center for Higher Studies in Tourism presented the first-ever study of revenues generated by meetings, conventions, incentive groups and trade shows in Mexico.
The reports tell a story of profound economic benefit: Meetings contribute $106 billion to the U.S. GDP, while in Mexico, meetings represent 18 percent of total travel and tourism demand, contributing $18.1 billion in annual economic impact. With a large fiscal impact also in the areas of job creation, employment income and tax revenue, both nations see the vitality of the meetings dollar like never before, and as the U.S. mobilizes the Corporation for Travel Promotion, Mexico is raising its meeting game to new heights.
Speaking at the influential IMEX Politicians Forum in Frankfurt this year, Rodolfo Lopez Negrete, COO of the Mexico Tourism Board, presented a compelling view of the growth of Mexico’s meetings infrastructure. Among the highlights: The number of CVBs has doubled from 27 to 56 since 2000, while meeting space has tripled in the same period.
With 67 major convention and exhibit centers in dozens of cities, more than 495,000 hotel rooms available for meetings and more than 9 million square feet of meeting space, Mexico moved up from 27th place to 22nd place in ICCA’s global rankings after hosting 140 international congresses in 2010.
Led by corporate and business gatherings (66 percent) and followed by conventions and conferences (14 percent), Mexico hosted nearly 200,000 meetings in 2010. With major flags including Fairmont, InterContinental, Marriott, Meridien, Sheraton and Westin across the country, Mexico hosted 24.2 million overnight meetings-related stays last year.
Like Canada, Mexico fully understands the value of the delegate dollar.
“Total expenditure by an association meeting or convention attendee is between 1.5 to 4 times that of the average leisure traveler, which is helping to develop a support industry for meetings and events,” Negrete says.
With solid branding as a beach destination, Mexico is emphasizing its cultural assets—the country is home to 31 UNESCO World Heritage sites and 30,000 archeological areas—while promoting accessibility and affordability.
With 57 international airports and dozens of nonstop flights from major U.S. cities to the country’s leading destinations, all within three hours, Mexico is easily accessed from the U.S. (and Canada, too, thanks to a new cooperative air agreement announced this August).
Additionally, U.S. planners enjoy zero VAT for meetings, exhibitions and conventions, including sales tax and taxes on lodging, airports and transfers; event services such as set-up, registration, audiovisual equipment and decorations are tax-free; and the costs of conventions, seminars and meetings held in Mexico are fully deductible for federal income tax purposes.
“I saved $45,000 on a U.S. dental association meeting in Cancun using the VAT Exemption,” says Andrea Young, president and event director of Sacramento, Calif.-based Innovative Events in a Mexico Tourism release. “This was on top of the 10 percent I saved in service charges by meeting in Mexico.”
While ongoing drug-related violence may appear daunting, the many U.S. planners who have safely held successful meetings in Mexico point to astute planning and common sense as reliable guides: Know where you are going, know your whereabouts, and make smart decisions regarding off-property excursions.
Like Canada, Mexico is a vast country with a wealth of options for groups, from established congressional centers like Mexico City, Guadalajara, Monterrey and Cancun to emerging destinations such as Colima, near the dazzling beaches of Manzanillo, and Leon, Mexico’s fifth-largest city, as well as beach favorites such as Los Cabos and Puerto Vallarta, and Spanish Colonial gems such as Oaxaca, San Miguel de Allende and Guanajuato.
Jeff Heilman is a regular contributor to Meetings Focus publications.
