1. Making Sense of Today’s Meetings Industry: Impacts and Outlook Presentation to AOCA Congress Buenos Aires, August 2009

2. Today’s Presentation: How have we been impacted? How have we been impacted? The convention centre perspectiveThe convention centre perspective The planner perspectiveThe planner perspective The exhibition perspectiveThe exhibition perspective The longer term view: The longer term view: What’s the business outlook?What’s the business outlook? What have we learned?What have we learned? How is the industry evolving?How is the industry evolving? Four issues to watchFour issues to watch

3. Impacts and Outlook: The Facility Perspective: AIPC Member Survey 2009

4. Has your business increased or decreased over the past year ?

5. More or less confident of business prospects in 2009 than 2008 at this time?

6. Changes in business attributed to the global economic crisis?

7. Types of business expected to increase / decrease:

8. Impacts and Outlook: The Client Perspective:

9. PCMA Planner Survey: Impacts Revenue lost from cancelled/ postponed meetings in 2009/2010: Revenue lost from cancelled/ postponed meetings in 2009/2010: $781,000,000 in room revenue $781,000,000 in room revenue $2,500,000,000 in total revenue $2,500,000,000 in total revenue Reasons: Reasons: negative media coverage : 41% negative media coverage : 41% current economic conditions: 37% current economic conditions: 37% corporate downsizing: 22% corporate downsizing: 22%

10. Meetings “Image” a Major New Factor in the US: 50% of US corporations surveyed by Maritz said they saw “significant non- financial risks” to holding events in current economic / political climate 50% of US corporations surveyed by Maritz said they saw “significant non- financial risks” to holding events in current economic / political climate Meetings cancelled, downscaled in response to media attention Meetings cancelled, downscaled in response to media attention Devastating to those with luxury or non- business image (i.e. Las Vegas) Devastating to those with luxury or non- business image (i.e. Las Vegas)

11. PCMA Planner Survey: Outlook 56% expect attendance in 2009/10 to fall below comparable levels recorded in 2008 56% expect attendance in 2009/10 to fall below comparable levels recorded in 2008 67% expect total 2009 meetings budget to decrease compared to 2008 (average cut 23%) 67% expect total 2009 meetings budget to decrease compared to 2008 (average cut 23%) 41% will postpone, cancel or rebook meetings already booked in 2009/2010 41% will postpone, cancel or rebook meetings already booked in 2009/2010

12. PCMA Planner Survey: Outlook Upscale and luxury accommodations likely to see 50% reduction in use in 2009/2010 Upscale and luxury accommodations likely to see 50% reduction in use in 2009/2010 Planners intend to make greater use of alternative meeting methods, including webinars, teleconferencing Planners intend to make greater use of alternative meeting methods, including webinars, teleconferencing 53% of surveyed planners expect impacts to carry over into 2010 53% of surveyed planners expect impacts to carry over into 2010

13. Impacts and Outlook: The Exhibitor Perspective

14. Tradeshow Week Survey: Exhibitors are negative: 81% have cut events from their 2009 show schedule 81% have cut events from their 2009 show schedule 55% anticipate continuing to cut events over the next two years 55% anticipate continuing to cut events over the next two years 74% would reduce exhibit space to conserve costs 74% would reduce exhibit space to conserve costs 65% have trimmed costs in the last year 65% have trimmed costs in the last year

15. But Attendees are Still Positive……

16. Source: Tradeshow Week Research Attendee Survey June 2009 (309 responses) Survey Question: “Do you expect to participate in more, fewer or the same number of conventions, tradeshows and conferences in the next two years?” Outlook: 84% of Attendees will Participate in More or the Same Number of Events Over the Next Two Years

17. Source: Tradeshow Week Research Attendee Survey June 2009 (319 responses) Survey Question: “Do you agree that conventions, tradeshows and conferences will continue to be a critical part of the business-to-business product sourcing and buying process over the next five years?” Outlook: 88% of Attendees and Buyers Believe Events will Continue to Be Critical for Product Sourcing and Buying Over the Next Five Years

18. Impacts and Outlook: The Government Perspective

19. Government Reactions Typically Counterproductive: “Politics of fear” instead of logic “Politics of fear” instead of logic Few understand the role of meetings in economic development / recovery Few understand the role of meetings in economic development / recovery Meeting cancellations, travel restrictions imposed in many areas Meeting cancellations, travel restrictions imposed in many areas Promotional budgets cut at worst time Promotional budgets cut at worst time Capital projects cancelled although the time is right for construction Capital projects cancelled although the time is right for construction

20. The Good News: Significant impacts – but coming from “best years ever” Significant impacts – but coming from “best years ever” Signs of economic recovery already appearing in many areas Signs of economic recovery already appearing in many areas Few association meetings cancelled Few association meetings cancelled Majority of delegates expect their attendance to be stable or increase Majority of delegates expect their attendance to be stable or increase No real momentum for “virtual meetings” No real momentum for “virtual meetings”

21. The Good News: Exhibitors still see meetings and exhibitions as key tactic Exhibitors still see meetings and exhibitions as key tactic Meetings, exhibitions will play key role in economic growth and restructuring Meetings, exhibitions will play key role in economic growth and restructuring Government policy changes could have a big impact Government policy changes could have a big impact We have an opportunity to demonstrate the value of the industry We have an opportunity to demonstrate the value of the industry

22. The Longer Term View:

23. What Have We Learned? There are important regional and sector differences There are important regional and sector differences Business diversity is the best defence Business diversity is the best defence We're resilient – but vulnerable We're resilient – but vulnerable Our owners and communities don’t really understand what we do Our owners and communities don’t really understand what we do Need greater understanding, support for the economic role of meetings, but…. Need greater understanding, support for the economic role of meetings, but…. We don’t have ability to measure value We don’t have ability to measure value

24. Meetings are Evolving Anyway: Increasing complexity Increasing complexity Structural changes (reduced length, attendance etc.) Structural changes (reduced length, attendance etc.) Increasing need to demonstrate value; growing emphasis on measurement Increasing need to demonstrate value; growing emphasis on measurement Growing role for Internet; technology Growing role for Internet; technology More professional approach to meeting management More professional approach to meeting management

25. Looking Ahead: Four issues to keep an eye on: The attendance factor The attendance factor The client relations imperative The client relations imperative Evolving destination roles Evolving destination roles Our new “image problem” Our new “image problem”

26. The Attendance Factor: Attendance threatened by economic, time, sustainability factors Attendance threatened by economic, time, sustainability factors Obscures the real impact of downturn Obscures the real impact of downturn A shared concern / opportunity with clients A shared concern / opportunity with clients Calls for action, including: Calls for action, including: Attendance buildingAttendance building More pre / post promo / packagingMore pre / post promo / packaging Enhanced content and perceived valueEnhanced content and perceived value Measurability of meeting outcomesMeasurability of meeting outcomes

27. The Industry Relations Imperative: Organizers are challenged by attendance, financial, resource issues Organizers are challenged by attendance, financial, resource issues Tougher negotiations, renegotiations Tougher negotiations, renegotiations Price, contract, payment issues at stake Price, contract, payment issues at stake A new “partnership attitude” needed A new “partnership attitude” needed Opportunity to build stronger relationships for the future Opportunity to build stronger relationships for the future Flexibility, transparency are key Flexibility, transparency are key

28. Destination Relations are Evolving: Hotel equation has shifted Hotel equation has shifted Centre owner’s expectations need adjustment Centre owner’s expectations need adjustment Need to emphasize industry’s broad economic impacts, role in recovery Need to emphasize industry’s broad economic impacts, role in recovery CVB relations need re-examination CVB relations need re-examination May have to distance centres from leisure messaging May have to distance centres from leisure messaging

29. The Image Issue: Pharma-codes started the process Pharma-codes started the process Bailout funding accelerated it Bailout funding accelerated it Negative image resonated with public Negative image resonated with public We contributed by using leisure messaging We contributed by using leisure messaging 70% of planners concerned about “current image of meetings” (PCMA) 70% of planners concerned about “current image of meetings” (PCMA) Need to re-image meetings Need to re-image meetings Also requires enhanced content, better value, measurable outcomes Also requires enhanced content, better value, measurable outcomes

30. In Conclusion: We’ve seen lots of recessions – this one was different in some key areas: Government policy played a big role (bailout regulations, travel restrictions)Government policy played a big role (bailout regulations, travel restrictions) Meetings image called into question, creating a new issueMeetings image called into question, creating a new issue The industry was already evolving in a number of waysThe industry was already evolving in a number of ways Better technological alternatives were availableBetter technological alternatives were available

31. How Will Next 12 Months Look? A lot depends on recovery – but many budgets are already set A lot depends on recovery – but many budgets are already set Association events will outperform corporate; provide stability Association events will outperform corporate; provide stability Attendance will be the big issue Attendance will be the big issue Exhibition, services spending down Exhibition, services spending down Booking, contracting likely delayed Booking, contracting likely delayed There will be a lot of renegotiation! There will be a lot of renegotiation! New opportunities will emerge New opportunities will emerge

32. How Can the Industry Respond? Diversify business Diversify business Work together on attendance building Work together on attendance building Take a more flexible approach to negotiations Take a more flexible approach to negotiations Innovate; create value – added services Innovate; create value – added services Help delegates document value Help delegates document value Support your industry organizations Support your industry organizations

33. Making Sense of Today’s Meetings Industry: Impacts and Outlook Presentation to AOCA Congress Buenos Aires, August 2009