Expanding Calgary s Convention Capacity

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1 Expanding Calgary s Convention Capacity Six Key Questions and Answers Winter/Spring 2014

2 1. Why Build a (Bigger) Convention Centre? Convention activity supports city-building on several fronts Widespread Economic Benefits Direct spending by delegates and convention organizers has an immediate impact on local businesses Provides business, academic and institutional linkages Strengthen/ Benefit from local industry Community Benefits Creates a focal point for community celebrations. Provides business, academic and institutional linkages Local access to national and international expertise Reputation and Awareness Benefits Reinforces Calgary s reputation as an international energy city. Builds greater awareness and longer-term tourism potential.

3 2. How Do Calgary s Convention Facilities Compare? Calgary s convention centre is the ninth largest in Canada. That ranking will drop to tenth following completion of the new Halifax venue in Calgary is competing, based on available space, with the likes of Saskatoon, Spokane and Victoria. As the fourth largest city in Canada, Calgary s convention capability is inadequate.

4 3. Isn t there Already Too Much Convention Centre Space? Yes but too much space in the wrong place is no justification for impeding Calgary s potential. (An oversupply of office space in Vancouver or Dallas is no reason to forgo office construction in Calgary.) Calgary addresses meeting planners key needs: Air Access Business Base Industry Focus Academic Base Destination Appeal/ Theme Fourth busiest airport in Canada with excellent access from across the country and very good U.S. and international access. Canada s second largest head office centre, after Toronto, with some 40% more head offices than either Montreal or Vancouver. The energy capital of Canada and a leading international energy centre. Leading education and research centre. Calgary s western heritage reinforced by the annual Stampede is a known, positive and appealing advantage.

5 4. How does the Calgary TELUS Convention Centre Perform? The Calgary TELUS Convention Centre is the leading convention venue in Canada measured by dollars/square feet of space. $250.0 Event Revenue per Square Foot 2012 Average ( ) Event Revenue per Square Foot $200.0 $150.0 $100.0 $50.0 $- Calgary Group 2 Average (Excluding Calgary) Group 3 Average Source: HLT Advisory Inc. based on Convention Centres of Canada 2013 report. Note: Group 2 includes Edmonton, Halifax, Quebec City, Saskatoon, Victoria, and Winnipeg. Group 3 includes Montreal, Toronto and Vancouver.

6 5. Can Calgary Fill More Convention Space? Yes. Based on events that have been turned away from Calgary for lack of space and an even wider universe of events simply too large to fit into the existing centre. Turnaways Lost Business due to Convention Centre Availability Description Event Days Daily Attendance Attendee Region Canadian Public Health Association National NDP National Convention National Gemini Awards National Alberta Shock Trauma Air Rescue Service Local Alberta Motion Picture Industry Association Provincial Kids Cancer Care Foundation of Alberta Local Canadian Produce Marketing Association National The 2012 Canadian Water Summit National Hospitals Moving Forward Conference United States Source: Calgary Telus Convention Centre Destination Marketing Association Int. Event Database

7 6. How Much More and What are the Benefits? HLT Advisory projects 56 convention events by the third year of expanded convention centre operations. The number of events is not dissimilar to what Calgary achieved in 2007, but because the events are larger the economic impact is much greater. Economic Impact $100 Million $53.5 Million Source: HLT Advisory

8 Expand or Contract The Status Quo is NOT an Option! Failure to expand Calgary s convention capacity will not only result in an erosion of existing business (as past customers continue to outgrow the building) but will also prevent Calgary from realizing $100 million in economic impact.