MEEC Chapter Eleven Convention and Visitors Bureaus

Role and Functions of CVBs A CVB is a not-for-profit organization supported by transient room tax, government funds and private membership in order to: Encourage groups to hold meetings, conventions and tradeshows in the city or area it represents; Assist those groups with meeting preparations while their meeting is in progress; and Encourage tourists to visit and enjoy the historic, cultural and recreational opportunities the destination offers.

Role and Functions of CVBs The Purpose of CVBs: Help the long term economic development of communities through the travel and tourism business; Bring together businesses that rely on tourism and meetings for revenue; Serve as official contact points between their destination and meting professionals, tour operators and individual tourists.

Role and Functions of CVBs The Value of CVBs: Offer unbiased information about a destination’s services and facilities; Act as “one stop shop” for meeting professionals; Provide full range of information about a destination; Do not charge for most of their services

How CVBs are Organized Organizational Structure 63% of CVB’s are independent organizations 24% are some form of government agency 7% are a division of a chamber of commerce Average CVB has 14 employees and a Board of Directors of 16 voting members with 6 people serving on an Executive Committee 53% of CVBs are membership organizations averaging 663 members representing 24% convention services and suppliers 20% lodging establishments 15% restaurants 10% retail

How CVBs are Funded Funding mechanisms include: Average tax rates: 11.6 % hotel room tax – 56% of which goes to the CVB 8.7 % car rental tax 7.1% general sales tax 7.5% restaurant tax 82% of CVBs budgets are funded by hotel room taxes 18% of the budget comes from membership dues, advertising, merchandise sales, etc.

CVBs Expenditures On average CVBs spend their income as follows 27% Convention Sales and Marketing 25% Tourism Marketing 20% Administration 9% Communications 6% Visitor services 4% Membership 3% Convention services/housing 6% Other

Convention Marketing & Sales CVB Sales manager assigned to assist in the process: Gathers relevant information about dates, guest room and meeting requirements, and appropriate properties and convention center, if needed Produces sales leads Specifications about the particular meeting Distributed to members of the CVB as appropriate

Convention Marketing & Sales CVB Sales manager assigned to assist in the process: Monitors the process Assures that client receives information from members May relate prices but MAY NOT negotiate prices on behalf of properties Sets up site visits Develop itinerary, establish schedule, set up appointments Informs client about local laws, union issues, taxes, etc.

CVB Services for Meeting Professionals Encourage groups to hold meetings in the city Locate and check space availability in hotels, convention centers and other facilities Arrange for site visit and familiarization tours Provide detailed information on all venues

CVB Services for Meeting Professionals Assist groups with meeting preparations Give planners access to a range of services from supplier members Act as information database and one-stop-shop for facilities and services Develop transportation network – shuttle services, ground transportation, airline information Assist with on-site logistics and registration Suggest local speakers and educational opportunities Help to secure auxiliary services

CVB Services for Meeting Professionals Help to market the destination Provide promotional materials to encourage attendance Suggest pre-post conference tours Highlight cultural attractions, events and activities Establish and monitor room blocks Provide housing bureau if required Serve as official point of contact Act as liaison between community officials and planners Arrange for special permits Provide access to special venues

IACVB Services International Association of Convention and Visitors Bureaus Over 1200 professional members representing over 500 CVBs Purpose: to enhance the professionalism, effectiveness and image of destination management organizations worldwide Promotes bureaus worldwide Links CVBs with consumers and planners Conducts a variety of educational programs

IACVB Services MINT (Meetings Industry Network) A database that contains historical meeting data of over 25,000 events and future bookings Aids the supplier and planner in negotiations and RFP process RFP Bid Proposal Program Electronic Request for Proposal program is available at Destinations Showcase Annual one-day exhibit of CVBs and their exhibit facilities Held in Washington DC, New York and Chicago

IACVB Services ExPact Study Convention Expenditure and Impact Study Demonstrates the value of of the convention and trade show industry to the overall economy IACVB Professional Development A variety of educational opportunities for CVBs and their employees Certified Destination Management Executive (CDME) a global recognition for CVB executives

IACVB Services IACVB Foundation Sponsors research and resources Compensation and Benefits Survey CVB Organizational & Financial Profiles ExPact Study IACVB Resource Center

Review Role and Functions of CVBs How CVBs are Organized How CVBs are Funded CVBs Expenditures Convention Marketing & Sales CVB Services for Meeting Professionals IACVB Services