1. The GFC. How We’ve Been Impacted - An Australian Perspective Alec Gilbert

2. Australia - So how bloody bad is it?

3. Recent Studies Indicate... Not technically in recession, but close to it; Unemployment on the rise – but only slightly; Downturn in tourism spending – inbound, outbound and domestic; Tourism demand downturn. Overseas arrivals: by 1.1%

4. No. Convention Visitors to Australia by Country of Residence -2% -32% -2% -11% -6%-27%-26%-20%18% -21% Thousands

5. Convention Visitors by 7% for year ending April; by 28% for last 3 months Why....?

6. Number of Meetings Grown Slightly Source: ICCA

7. International Meetings in Australia between 2007 and 2008 16% Source: UIA

8. GFC Induced? Less meetings mean less visitors No evidence of cancellations in associations sector Wash factor may contribute to recent slump.

9. A Closer Look

10. Business Segments Association Business – holding its own –Associations need to meet –Associations do well in tough times –Little or no cancellations –Beware a second dip! –Numbers vary (-40% to +10%)

11. Projected Attendance Numbers at 2009 Events Compared to 2008 Source: incon

12. Corporate Business – the worst hit – 70% Corporate training –Cut back in travel, especially smaller end of market, virtual conferencing Exhibition Business – 15-20% in terms of space take up –Consumer shows: as much as 30% in terms of attendance Reduction in floor space Cancellations Business Segments

13. Client Reaction Bid calls and announcements delayed Later confirmation of all types of events Payment variations requested Cut the frills Less add on costs, more inclusive pricing Choice of destination more economic than rotation driven Recognition of increased buying power

14. Buying Power with Suppliers in 2009 Compared to 2008 Source: incon

15. Centre Responses Remove the financial pressure –Reduce cancellation penalties –Flexible approach to payment –Discounts –Subventions Assistance in maintaining numbers Reduced yields

16. The ACC Experience

17. Adelaide Regional capital, 1.4 million people International Airport Not an iconic destination but competitive and convenient A very good Convention Centre!

18. Revenue by Type

19. GFC Impact 1.5% on last year’s record performance No cancellation in association sector Cancellation of 1 small consumer exhibition and reduction in floor area of another A few charity banquet/auctions cancelled (but others have grown) Little growth expected next year An opportunity to rationalise and increase efficiencies

20. Australia – The Lucky Country! Generally yields are lower but a sense of optimism prevails Impact greater in larger destinations due to business mix Second tier cities relatively unscathed The ‘cocooning’ phenomena is underway – regions losing out to population centres

21. Future Challenges GFC: –Postponement of ACC Extension –The impact of a second dip Other Factors: –Increasing competition –Subventions and their impact on regional centres