WHERE MISSISSIPPI MEETS THE WORLD FY 2012 ANNUAL REPORT

Transcription

1 WHERE MISSISSIPPI MEETS THE WORLD FY 2012 ANNUAL REPORT

2 Message from the Chairman On behalf of the Capital City Convention Center Commission, I am pleased to report that the SMG managed Jackson Convention Complex had an outstanding year in FY The JCC achieved a Customer Satisfaction Rating of 95.5% thanks to an outstanding staff. We also achieved the highest gross event income and net event income in the facility s history at $3.4 million and $2.2 million respectively and improved the net operating performance by 17% over FY The estimated economic impact of our operation was $27.4 million. From the beginning of the Convention Center project, the Commission has been proud of the Jackson Convention Complex s achievements in promoting diversity and sustainability. Hiring and procurement of over $277,000 was spent directly with MBE/WBE enterprises totaling over 27% of all operational purchases of goods and services in FY SMG has worked diligently on energy conservation programs and equipment updates which resulted in a $55,000 (10.7%) reduction in total utility costs. Through the recycling program, the Jackson Convention Complex recycled 60 tons of recyclable materials. The successes of FY 2012 landed the Jackson Convention Complex, a LEED certified facility, its fourth consecutive ConventionSouth Readers Choice Award. This award is a result of a vote by top meeting professionals in the U.S., who book events held in the South. As a Commission, we are proud of the financial strides the Jackson Convention Complex has made as well as the increased community involvement. We thank our community partners for their continued support as we strive for continued success. Fred L. Banks, Jr. Chairman, Capital City Convention Center Commission 2

3 Message from the General Manager Fiscal Year 2012 was a year of transition for the Jackson Convention Complex, and I am proud to report that it was also a year of many successes! We achieved record financial results, generating more than $3.4 million in gross event income and over $2.2 million in net event income. Also, we were able to reduce the operating subsidy by 17% from the previous year, and this resulted in the smallest subsidy in the Complex s four year history. In addition to earning record financial results, we received our fourth consecutive ConventionSouth Readers Choice Award, played host to 141,000 visitors in 295 events days and generated an estimated $27.4 million in economic impact for the local economy. Throughout FY 2012 we systematically and proactively recalibrated our business operation. By updating our booking policies and modifying our rate structure, we made significant progress in customizing our sales approach to better meet the needs of meeting planners and event organizers. We also implemented new expense management programs, resulting in decreased event expenses and increased event profitability. More fundamentally, we instituted a mindset focused on customer service, team work, accountability and the overall pursuit of excellence. With this new attitude we earned our highest average annual customer satisfaction ratings ever at 95.5%. Throughout the fiscal year, the Complex hosted a wide variety of events including the Fine Point Circuit Breaker Conference, Governor Phil Bryant s Inaugural Ball, the Southern Hospitality Jr. Girls Volleyball Tournament, Jackson Conventions and Visitors Bureau s Hometown Heroes, and performances by the Mississippi Symphony Orchestra. We also held first time events such as Discover the Dinosaurs as well as numerous concerts, comedy shows, banquets and corporate meetings. As part of our effort to support local causes, the Complex sponsored several local events, including Toys for Tots, the City of Jackson Back to School Book Bag Give Away, Senior Health & Wellness Fair and Rock the Runway: Divas against Domestic Violence. At the end of the year, we formalized our community outreach efforts through the implementation of our program, The Heart of SMG. This program is designed to focus our efforts on targeted partnerships where we can have the greatest impact. The women and men that make up our SMG team at the Jackson Convention Complex have worked diligently over the past year, and I am very proud of each and every one of them. It is their hard work and dedication that yielded these great results and it will be their continued commitment and focus on our customers that will allow us to grow and achieve future successes. Kelvin D. Moore, CMP General Manager 3

4 Summary of Accomplishments Record Setting Year: Highest Gross Event Income $3.4 million Highest Gross Food & Beverage Income $2.3 million Highest Net Event Income $2.2 million Best Net Operating Performance ($1.15 million) 17% improvement over FY11 Highest Single Month Gross Income $598,865 October 2011 Best Average Customer Satisfaction Rating 95.5% Economic Impact Fueled by the strength of convention and city wide event attendance, JCC event activity generated an estimated economic impact of over $27.4 million. Event Type Avg. Attendee Spending Per Day Avg. Event Days Total Attendees Est. Total Spending - Direct Convention $ ,905 $17,828,443 City-wide Event $ ,200 $1,280,352 Sporting Event $ ,135 $1,541,638 Trade Show $ ,950 $1,083,651 Banquet $ ,301 $889,239 Consumer Show $ ,030 $2,176,227 Special Event $ ,604 $572,048 Meeting $ ,914 $1,508,833 Entertainment $ ,425 $586,336 Total 141,464 $27,466,768 MBE/WBE Participation The Jackson Convention Complex spent over $277,000 directly with MBE/WBE enterprises, totaling over 27% of all operational purchases of goods and services in FY12. New Website The new was launched in FY 2012 and features a modern, clean and user friendly layout, making it easy for all users to obtain information about the Complex. Industry Recognition The Jackson Convention Complex received its fourth consecutive ConventionSouth Readers Choice Award! The Readers Choice Award is voted on by readers of Convention South, who are the top meeting professionals in the US who book events held in the South. Green Practices Through our recycling program, the JCC recycled 60 tons of recyclable materials. Despite an increase in event attendance over FY11, SMG s energy conservation programs and equipment updates resulted in a $55,000 (10.7%) reduction in total utility costs. 4

5 Financial Results FY2012 FY2011 Number of Events Number of Event Days Attendance 141, ,673 Gross Event Income $3,407,473 $3,171,637 Event Expenses $1,134,062 $1,316,128 Net Event Income $2,273,411 $1,855,508 Indirect Expenses $3,533,518 $3,405,913 Other Income $109,458 $156,889 Net Income ($1,150,649) ($1,393,515) 5

6 Event Mix Analysis As the data below illustrates, Conventions and City Wide events are the most profitable events for the JCC and yield the highest economic impact to the community. Conventions and City wide events accounted for only 10.8% of the events, but they yielded 25.5% of the total attendance, 40.9% of the net event income and 69.6% of the JCC s economic impact to the community. Event Types: # Events % Attendance % Net Event Income % Economic Impact % Banquet % 12, % $273, % $889, % Meeting % 22, % $574, % $1,508, % Consumer 6 2.6% 12, % $82, % $2,176, % Convention / City Wide % 36, % $930, % $19,108, % Tradeshows 8 3.5% 5, % $121, % $1,083, % Entertainment 8 3.5% 12, % $65, % $586, % Sporting % 26, % $153, % $1,540, % Special % 13, % $72, % $572, % Totals: ,464 $2,273,411 $27,465,767 Number of Events by Event Type Attendance by Event Type 3.5% 8.7% 3.5% 10.8% 2.6% 6.9% 14.3% 49.8% Banquet Meeting Consumer Convention / City Wide Tradeshow Entertainment Sporting 4.2% 18.5% 8.8% 9.6% 8.7% 25.5% 16.2% 8.5% Special Net Event Income by Event Type 2.9% 5.4% 6.8% 40.9% 3.2% 12.0% 25.3% 3.6% Banquet Meeting Consumer Convention / City Wide Tradeshow Entertainment Sporting Special Economic Impact by Event Type 2.1% 2.1% 3.9% 5.6% 69.6% 3.2% 5.5% 7.9% 6

7 Event Highlights Fine Point Circuit Breaker Conference, October 2011 MAIS Cheer Competition, November 2011 Rock The Runway: Divas Against domestic Violence, November

8 Event Highlights Governor s Inaugural Ball, January 2012 Hometown Heroes, July 2012 Discover the Dinosaurs, September

9 Customer Feedback In FY 2012, facility users gave SMG their highest customer service ratings ever, at 95.5%! FY2012 Customer Survey Ratings (95.5%) Sales Event Mgt Operations Exhibitor Services AV F&B - Service F&B - Menu & Quality Security Overall In Their Words Gwen and Heath were GREAT to work with! Lisa went out of her way to make sure we had all we need with food and beverage. I do a lot of events and have done many at the JCC and the staff s attitude and helpfulness were remarkable. Jason Dean, MS Broadband Connect Coalition Meeting Micah and Cherre are professional and great at what they do! The Complex did an excellent job from set-up to distribution to move-out of our event. Very little or anything can be done to make it better. Greg Grimes, City of Jackson Toys for Tots Heath and Zack were wonderful about all meeting and AV needs and everything went smoothly. The food and catering services were GREAT! Kaylea Crabbe, MS Insurance Department Patricia was the first person I met when venue shopping for my most important day she was personable and knowledgeable! Jackie was such a delight, a breath of fresh air! I also enjoyed working with Lisa in planning my menu and the food was great! Brandi Butler, Bride From the very beginning of my contact with Kelvin, Micah and the JCC Staff, the professionalism, knowledge, accessibility and responsiveness have all been exceptional. The service was personalized and I felt as if they wanted my business and that I was a special client at the JCC. OUTSTANDING!!! Juanita Sims-Doty, Who s Who Publishing Top notch team of experts thank you! Denise Dunchick, Lockheed Martin 9

10 The SMG Executive Team Kevin D. Moore, CMP General Manager Micah Allen Director of Sales & Marketing Courtney Brisby Director of Finance Kevin Korner Human Resources Manager Cherre Miller Director of Event Services Laura Reed-Orr Director of Food & Beverage About SMG: Founded in 1977, SMG provides management services to more than 230 public assembly facilities including convention and exhibition centers, arenas, stadiums, theatres, performing arts centers, equestrian facilities, science centers and a variety of other venues. With facilities across the globe, SMG manages more than 14.4 million square feet of exhibition space and over 1.75 million sports and entertainment seats. As the recognized global industry leader, SMG provides venue management, sales, marketing, event booking and programming, construction and design consulting, and pre-opening services for such landmark facilities as McCormick Place & Solider Field in Chicago, Moscone Convention Center in San Francisco, Houston s Reliant Park and the MercedesBenz Superdome in New Orleans. SMG also offers food and beverage operations through its concessions, catering and special events division, SAVOR, currently servicing more than 100 accounts worldwide. For more information visit 10

11 The Capital City Convention Center Commission Fred L. Banks, Jr. Chairman LeRoy Walker, Jr. Vice Chairman Jeff Good Commissioner John Hardy Commissioner Larry D. Hollingsworth Commissioner Duane A. O neil Commissioner Alan H. Walters Commissioner Rosemary Maxey Commission Administrator Charlene Priester Commission Legal Counsel 11

12 The Hear t of Born in 2007, The Heart of SMG was designed as an employee recognition program paying tribute to the men and women who make SMG special by making a difference in the 200 plus communities in which we manage public assembly facilities. Here in Jackson, we decided to take a different twist on the program. Rather than focus on the many individuals amongst us who freely give of their time to aid the community, we have decided to use The Heart of SMG as an umbrella brand and initiative for our team focus on community outreach programs and activities. Heading into 2013, we have developed four community outreach goals for our team. 1. Strive to meet or exceed the City of Jackson s targets for MBE/WBE participation in our contracted goods and services. 2. Develop an internship program that focuses on providing opportunities for Jackson area college students. 3. Adopt a local high school culinary or hospitality program. 4. As a team, develop or participate in community enhancement programs. Throughout the year we will report on our progress towards meeting these goals via our newsletters, press releases, website and social media pages. By signing up for alerts, you will receive these updates along with other news from the Jackson Convention Complex. Through The Heart of SMG program, we are committed to making a positive impact on Greater Jackson one heart at a time. The SMG Team out in the community City of Jackson s Senior Health Fair Team JCC at the Sweetness 5K 12

13 The Heart of SMG SMG has adopted the Hospitality and Culinary Programs at Jackson Public School s Career Development Center Friday Forum at Koinonia Coffee House Creative Place Making Panel at the MS Museum of Art Jackson State University Job & Internship Fair Tougaloo College Job & Internship Fair 13

14 Our Community Partners Our Sponsors 14

15 Future Outlook Across the country, convention centers are constructed for the broad purpose of delivering positive economic impacts for the local communities. They generate that impact by hosting a variety of events. Of those events, conventions and tradeshows yield the highest economic impact as their attendees tend to be from out of town and spend several days in a community, spending money in hotels, restaurants, golf courses, museums and night clubs. That money remains in the local economy once they leave. Over the last four years, events hosted at the Jackson Convention Complex have generated over $100 million in economic impact for the local economy. This is a significant number, but the potential impact of the JCC is even greater. To realize that potential, a few things will need to happen. First, it is important to understand the factors considered by convention and tradeshow organizers when deciding on event locations. Although convention centers are a part of their decision making process, they are not the main factor. Organizers make decisions based on the destinations as a whole. They select cities, not convention centers. Cities considered to be leading meetings and events based touristic destinations understand the importance of developing, cultivating and marketing the destination. They also all have four major things in common. 1. State of the art convention centers 2. Effective convention & visitors bureaus leading the efforts in selling the destination 3. High quality convention center headquarter hotels and a compliment of other nearby convention quality hotels 4. A density of activity (stuff to do) The Jackson Convention & Visitors Bureau has been leading the hospitality charge for the Jackson area for years. With the JCC now entering its 5th full year of operation, Jackson has the first two items on the list covered. However, to take that next step in becoming a true destination of choice for meetings and events based tourism, Jackson needs to check that third item off the list. Jackson needs a high quality headquarter hotel connected or adjacent to the Complex. In the eyes of many meeting planners, a two block walk from the Complex to a hotel may as well be two miles. Proximity matters. The JCVB estimates that Jackson has lost out on $18.2 million in economic impact and over 26,000 room nights in the last four years due to the lack of a headquarter hotel. So, we will continue to work with the Jackson Redevelopment Authority, the JCVB, City leaders and other industry stakeholders to move this project forward. By completing a successful RFP process and breaking ground on a new headquarter hotel, we will be well on our way to meeting our full potential. In the meantime, we will continue to work with the JCVB in aggressively seeking out city wide conventions and trade shows. We will also work to diversify our event mix by seeking out new consumer shows, social events, live entertainment and sporting events. Lastly, we aim to increase non-event revenue from our commercial rights marketing program by implementing a targeted advertising program for downtown businesses and by seeking out a corporate naming rights partner for the Complex. These combined efforts are designed to maximize the economic impact of the Complex on the local community while also ensuring the Complex s long term fiscal viability. We will do these things while ensuring that we maintain our laser focus on flexibility and customer service. 15

16 Jackson Convention Complex 105 E. Pascagoula Street, Jackson MS Phone: Toll free: MEET (6338) Fax: CONNECT WITH US SAVOR...Jackson