defining the “ask” what centres are (and should be) getting from their government(s) dirk...
TRANSCRIPT
Defining the “Ask”What Centres Are (and should be) Getting
from their Government(s)
Dirk Elzinga
Convention Centres contribute significantly to the local and regional economy. They create jobs and generate substantial direct and indirect tax revenues. This is widely recognized by governments, who provide a variety of concessions to convention centres in order to make them more successful.In this interactive session we will try to learn from our fellow AIPC members, uncovering how various governments are supporting the convention centres in their municipalities and regions.
Introduction
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3
• Facilitated by IML• Use the interactive keypads to vote, one per delegate• Your opinion will be captured and translated it into
meaningful data. Instantaneous feedback• Intelligent voting but also expression of opinions!
Your participation required!
keypad each person receive will look like this…
2.4” OLED Colour Display
Microphone
Light Sensor
Headphone Volume
Dedicated PTT Button
Trackball
Soft Keys
Full QWERTY Keyboard
Backlit Keys
iPod Style Connector LanyardSpeaker
Rumbler
Accelerometer
Lithium Ion Battery
Battery Cover
Label
1GB Memory
RGB Tally Light
Headphone/Mic SocketStatus LED Wrist Strap
Universal Smartcard Reader
8%
13%
8%
8%
38%
8%
17%
North America
South or Middle America
Europe
Middle East
Africa
Asia
Australia
Simulated data
Simulated data
5
Where are you located?
25%
21%
21%
33%
100% owned by the government?
In majority owned by the government?
Less than 50% government ownership?
No government ownership?
Simulated data
Simulated data
6
Is your convention centre:
17%
21%
25%
29%
8%
No, not at all
Yes, by making land available at reduced or no cost
Yes, by guaranteeing/underwriting a commercial loan
Yes, by providing both the land as well as part of the required capital investment
Yes, by providing the land and 100% of the required capital investment
Simulated data
Simulated data
7
Did your government contribute to the original funding of your centre?
25%
8%
17%
21%
29%
No, not at all
Yes, by making land available at reduced or no cost
Yes, by guaranteeing/underwriting a commercial loan
Yes, by providing both the land as well as part of the required capital investment
Yes, by providing the land and 100% of the required capital investment
Simulated data
Simulated data
8
Did your government contribute to the capex of your most recent expansion/refurbishment? (Or will they?)
49%17%17%17%
50%0%0%
50%
25%25%
0%50%
20%20%20%
40%
0%29%
42%29%
No, not at all
Yes, by making land availableat reduced or no cost
Yes, by guaranteeing/underwritinga commercial loan
Yes, by providing both the land aswell as part of the required capital investment
Yes, by providing the land and100% of the required capital investment
100% owned by the government?
In majority owned by the government?
Less than 50% government ownership?
No government ownership?
Simulated data
Simulated data
9
Did your government contribute to the capex of your most recent expansion/refurbishment? (Or will they?)
54%
46%
Yes
No
Simulated data
Simulated data
10
Have you been endowed with possibilities to create additional revenue streams?
21%
45%
13%
21%
No, not at all
Yes, but first we have to use our accumulated funds
Partially
Yes, for 100%
Simulated data
Simulated data
11
If you would experience a non-profitable year, would the loss be compensated by your government?
40%20%
0%0%0%0%
40%
0%9%9%
0%55%
9%18%
0%0%
34%33%33%
0%0%
0%20%
0%20%
40%20%
0%
No, not at all
Yes, but first we have to use our accumulated funds
Partially
Yes, for 100%
North America
South or Middle America
Europe
Middle East
Africa
Asia
Australia
Simulated data
Simulated data
12
If you would experience a non-profitable year, would the loss be compensated by your government?
Yes
For foreign clients only
No
13
Are you VAT (or city sales tax) exempt?
We pay no rates and taxes
We receive a discount on rates and taxes
Our venue has been undervalued, resulting in lower rates and taxes
We pay rates and taxes just like any other commercial company in town
14
What is the situation regarding local rates and taxes?
0%34%
0%50%
0%0%0%
50%0%0%
50%56%
0%50%
50%33%
50%0%
11%50%
25%
0%33%
50%0%
33%50%
25%
We pay no rates and taxes
We receive a discount on rates and taxes
Our venue has been undervalued, resulting in lower rates and taxes
We pay rates and taxes just like any other commercial company in town
North America
South or Middle America
Europe
Middle East
Africa
Asia
Australia
Simulated data
Simulated data
15
What is the situation regarding local rates and taxes?
42%
29%
29%
We don’t make a profit
We don’t have to pay company tax
Yes, we pay company tax like any other company
Simulated data
Simulated data
16
Do you pay any company tax over your profits?
13%
13%
13%
9%
12%
11%
11%
10%
8%
Traffic Police
VIP Protection
Fire brigade controls and approvals
Stand construction and floor plan controls and approvals
Event permits
First Aid or other medical services
Electricity
Water
Other
Simulated data
Simulated data
17
Which of the following services are provided to you free or at reduced rates?
33%
13%
54%
Don’t irritate with all sorts of requests for cost reductions;just show the operational loss and let the shareholder cover it
Much better for the image of the centre if an operationalprofit can be realized. Do everything to reduce cost
Not so sure, both approaches can work
Simulated data
Simulated data
18
In your opinion: would it be better to run an operating deficit and ask the government owner to pick this up or to request relief from cost charges in the first place?
34%
33%
33%
Yes, completely
Yes, to a large extent
No, or at least not significantly
Simulated data
Simulated data
19
Does your municipal government finance a local convention bureau?
50%34%
50%0%
45%50%
0%
50%33%
0%100%
11%50%50%
0%33%
50%0%
44%0%
50%
Yes, completely
Yes, to a large extent
No, or at least not significantly
North America
South or Middle America
Europe
Middle East
Africa
Asia
Australia
Simulated data
Simulated data
20
Does your municipal government finance a local convention bureau?
42%
25%
33%
No, or only in very exceptional cases
Yes, but only in-kind support
Yes, a financial support arrangement is available
Simulated data
Simulated data
21
Does your government (local or national) provide your international clients with subventions?
37%
38%
25%
Yes, practically always
Regularly but we would like to see them more often
We frequently fail to convince them of the importance
Simulated data
Simulated data
22
Are your senior government officials responding positively when invited for a congress opening etc.
0%34%
0%50%
22%50%
100%
50%33%
100%50%
45%0%0%
50%33%
0%0%
33%50%
0%
Yes, practically always
Regularly but we would like to see them more often
We frequently fail to convince them of the importance
North America
South or Middle America
Europe
Middle East
Africa
Asia
Australia
Simulated data
Simulated data
23
Are your senior government officials responding positively when invited for a congress opening etc.
Conclusionsand
Recommendations
24
Many thanks for your cooperation