1. Political Support for the Conference Industry in Hamburg, Germany Florence, 12 November 2013 Dr. Rolf-Barnim Foth Free and Hanseatic City of Hamburg Ministry for Economy, Transport and Innovation Head of Task Force Northern German Cooperation, Hamburg Metropolitan Region, Marketing & Tourism Alter Steinweg 1-3 20459 Hamburg phone +49 40 428412618 rolf-barnim.foth@bwvi.hamburg.de

2. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Agenda  International competitiveness and regional politics  A few facts about Hamburg  Hamburg as a location for the meeting industry  Institution building – the convention and meeting industry as a pillar in Hamburg‘s marketing strategy  Conclusions 2

3. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. 3 European visibility from U.S. or China National states lose importance Most European cities or regions are too small to reach or to maintain global visibility on their own. Metropolitan Region building: Urban + urban/urban + rural = one answer to globalisation Joint efforts of local and regional players and improved marketing become essential !

4. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. 4 4 Federal States, 17 counties, 2 major cities, 26.000 km², 5,1 million inhabitants = 1% of EU-population joint labour market: 340.000 inbound 150.000 outbound Hamburg has run a comprehensive growth strategy since 2001 – together with the region 12 metro-regions in Germany; European megatrend Hamburg Metropolitan Region

5. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. 5 Hamburg: Who we are …  Germany’s 2nd largest city with a population of 1.800.000 – largest non-capital of EU; > 20% international population  City State with law making powers  business capital of Germany; European Green Capital 2011  foreign trade hub for 800 years and turntable between Northern Europe and Asia, Latin America and Africa  first European logistic hub

6. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. 6 Hamburg: Who we are …  second largest port in Europe  third aviation technology centre world wide  regional cluster policies in aviation, logistics, life science, maritime industry, new energies, media & IT, creative industries, healthcare  oldest German metro-region; cooperation dates back to pre-war times  region of growth - highly attractive region to live and work between the Baltic and the North Seas

7. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Hamburg: Who we are … 7 Tourism: European „Champions League“: overnight stays 2012

8. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Hamburg: Who we are … 8 beds available in 2001: 28.000 2012: 53.500 2014: > 60.000 overnight stays in 2001: 4,7 million 2012: 10,6 million (+ 11,6 %/2011) 25% = business 108.000 jobs in Hamburg turnover 2011: 7,4 billion Euro Hotel and restaurant industry 36,0% Retail industry 45,6% Services 18,4% Source: dwif 2011

9. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Congress Center Hamburg (CCH)  second center by size in Germany, among Europe‘s leading CC  12.500 seats, 10.000 m² exhibition fascilities  since opening 1973 130 world congresses - last „96th. Lions Clubs International Convention Hamburg 2013“ with 23.000 participants  situated in a park in Hamburg‘s city center, in walking distance to high speed train station, hotels, shopping etc.  20 mins drive from airport  CCH designed for meetings and events >1000 participants; others take place in hotels and special locations  CCH 100% state owned

10. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben.  200.000 participants in national and international congresses/meetings (2012)  estimated 100.000 participants stay 1-4 days in Hamburg  purchasing power of 107,5 mil. Euro (100.000 participants x 2,5 overnight stays x 430 Euro average expenditure per day); 80% directly in Hamburg  securing 1.800 jobs, 1.400 in Hamburg itself  indirect advantage: access of Hamburg‘s clusters, universities etc. to knowledge and international exchange CCH – value for Hamburg

11. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. CCH – City commitment CCH - meeting facility outdated; estimated investment < 200 mil. Euro. Alternatives: phasing out + close down or revitalise  market 2011 in Germany + 3,5 % growth (2,25 mil. meetings with 101,5 mil. participants; turnover 66 billion Euro); stagnation of small meetings < 50 participants; increase of larger meetings  closing down has negative effects on industry: No national or international visibility without congress center; all well known congress cities have at least one big center seating 5.000 to 10.000. Top destinations like Vienna, Berlin or Barcelona dispose of several centers.  internet will not replace face to face networking and presentation of products or rearch results: Increasing global division of labour leads to a rising demand for platforms for personal exchange, dissemination of information, knowledge and business contacts. Acquisition of qualified workforce and companies. Interaction with own clusters.

12. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Meeting industry – City commitment  majority of meetings takes place in hotels. German congress centers have a market share of 5,5 %, however, 60 % of all participants.  Congress Center Hamburg has 80 % turnover with TOP 30 meetings.  Therefore all meetings < 500 participants and most < 1000 taken over by meeting industry in and (next step) around Hamburg.  City gives support to all (potential) clients via first stop office: Hamburg Convention Bureau (HCB)

13. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Hamburg Convention Bureau GmbH (HCB)  established in 2009; 100 % daughter of Hamburg Marketing GmbH  funded by Hamburg and the new “Hamburg Culture and Tourism tax” (1.000.000 Euro p.a.) and partners (hotels, caterers, PCOs)  (neutral) first-stop-office for meeting planners considering Hamburg as a destination for their business-event  first port of call for all service providers of the meeting industry in Hamburg Metropolitan Region  marketing Hamburg Metropolitan Region as a congress destination - domestically and globally  acquiring corporate and association business

14. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Cooperation agreements with further marketing actors from Hamburg Business Promotion Tourism Marketing budget & IT budget & IT strategic controlling personal & organisation Hamburg marketing brand management PR communication Internat. relations fair participation grafics market research Structure of Hamburg Marketing First stop office for meeting planners Leading role within city‘s bidding process Convention Marketing (Events) Shareholders 75,5% Hamburg 9,5% 17 counties and 2 major cities of Metropolian Region 15,0% Chamber of Commerce

15. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Competences and tasks of the HCB  research and acquisition of conventions and meetings  bid process management  recommending hotels, venues, accompanying events and incentives, service providers etc. in Hamburg Metropolitan Region  obtaining hotel allocations and arranging contacts to competent service providers such as catering firms, PCOs, agencies or logistics suppliers  client support before, during and after the convention  involving all relevant municipal organisations  planning and execution of site inspections  continuous monitoring and evaluation of meeting industry market data  (events)

16. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. HCB - selected marketing measures  trade shows – IMEX, IMEX America, EIBTM  fora – M&I, The Meetings Space, Successful Meetings University  educational tours – national and international  roadshows and Hamburg related events abroad  “Hamburg Special” – for meeting planners of Hamburg Metropolitan Region  bi-annual meeting guide on Hamburg Metropolitan Region  homepage & newsletters

17. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Conclusion  Convention and meeting industry is of major economic and social importance to Hamburg  a convention bureau is vital, as a congress center will not be able to market a destination with its meeting portfolio in total  a large congress center has a lighthouse role and contributes to the marketing of the City itself and to the success of the meetings industry  a congress center is a vital platform for economic (cluster) or scientific ambitions and a source of know-how transfer to the region  however, there is no need to run everything 100% on public funds; ppp is a realistic alternative  Inevitably there will be a deficit for the city budget, but an overall advantage for the industry, retail, jobs etc.

18. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Questions ? Rimini by architects from Hamburg:

19. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Success factors for meetings industry  good accessibility by air, train and car  meeting facilities according to demand  enough hotels and restaurants in all categories  shopping facilities and leisure/touristic facilities play a role  attractiveness of location and state in terms of size, business relevance …  successful meeting locations dispose of „first-stop office“ and „convention bureau“ (Vienna since 1969)  quality of services/welcome culture

20. Oberthema... (weiß) Bitte überschreiben. Unterthema... (blau) Bitte überschreiben. Market potential for Hamburg Many international meetings have not yet taken place in Hamburg:  845 congresses with average 1.000 to 3.000 participants 495 took place in Germany, incl. 107 in Hamburg  220 congresses with average more than 3.000 participants 160 took place in Germany, incl. 41 in Hamburg