Business Plan Summary

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1 Owner: Business Plan Summary Program Economic Prosperity Service grouping Economic Development Service Conventions, Meetings and Events Attraction (LCC) Type Public Service Lori Da Silva, General Manager, Strategic Priority Economic Prosperity Purpose Incorporated in 1993, the London Convention Centre is a multi-purpose convention facility that is owned by the City of London and managed by the Corporation which is governed by a Board of Directors appointed by Municipal Council. The mandate of the is to maximize economic benefit for the community by attracting delegates to attend conferences, conventions and multi-day meetings at the facility. The goal of the LCC is to be the preferred venue for customized knowledge transfer and entertainment experience by delighting guests with every act. Key processes Corporate Services Financial & Staffing In $000s Operating budget 2010 Actual 2011 Revised Budget Expenditure: 5,254 5,362 Non-tax revenue: 4,644 4,762 Net (tax supported): Capital budget Expenditure: Non-tax revenue: Net (tax supported): 2010 Revised Budget Revised Budget 0 0 Staffing FTEs: Percentage of expenditures budget (all rate sources): Annual per household cost of net budget ($): Corporate Management: general management and co-ordination of all corporate aspects; Board leadership; Board administration and co -ordination; liaison with the City of London; development and implementation of corporate policies and procedures; community and partner liaison; Finance: budgets; accounting; payroll; cash control; banking services; financial planning and management, including building/capital reserves; financial reporting; auditing. Human Resources: staff relations; employment policies and recruitment; training and development. Risk Management: insurance; development and application of risk management policy; client, guest and staff security; property stewardship; staff emergency and risk training program. Purchasing/Inventory: purchasing services; inventory program. Technology: technology strategy; client services Page 1 of 7

2 Business Development: Sales & Marketing Sales: direct sales; industry promotions and tradeshows. Marketing: brand development and enhancement; advertising; collateral and promotional material development and distribution; ambassador awards program management; social media management; communications and public relations. Industry Partnerships: Tourism London participation; convention hotels; industry associations. Research: client identification and qualification; competitive analysis; client services and/or products; customer surveys. 0 Event planning: Direct sales activities for social food and beverage events; Event Detail coordination with clients for all events; menu selection; floor plan details and other logistics; departmental coordination and interdepartmental communication of event details; industry partner liaison. Reception: Management of LCC reception desk Event Services LCC Events: Execution of all events Event Coordination: physical set up of all floor plans; all set up logistics; technical coordination for events. Banquet Services: food service; bar service; coat check; Event Risk Management: event security; risk management program; alcohol policy; health and safety; training. Culinary Management and Services: menu planning; pricing; preparation; cost controls; product innovation and quality; sourcing; purchasing, inventory. 0 Custodial Services: Daily management and coordination of all cleaning services activities for the LCC and events. Trade Show Services: trade show co-ordination; client contractor liaison; logistics. Facility Services Asset Management: overall stewardship of property and contents for long term benefit of the City of London. 20 Year Building Plan: development and annual updating of 20 year capital restoration and refurbishing plan and budget. Building Systems & Equipment Maintenance: preventive maintenance program; life safety program. 25 Energy Management: energy conservation program; system enhancements; energy purchasing and contracts. Technical Client Services: in-house electrical, telephone, data etc. Security Services: building security; client, guest, and staff security. Page 2 of 7

3 Parking Parking Operation: operation of 312 underground spaces and 72 surface spaces. Regulatory/Policy landscape Service Delivery method Discretionary Non-legislative New council direction, new regulations, legislative changes 95 Current state of this service Challenges: Increased Ontario convention centre competition and beyond will be more challenging with the opening of the new Ottawa Convention Centre and Niagara Falls Convention Centre in mid 2011; anticipated opening of a new facility in Chatham in late 2011; and future opening of a new facility in Waterloo, Ontario. The LCC is now a 16 year old building and will require additional capital investment in upcoming years to maintain quality of finishes and fixtures and remain competitive with new products. Lack of brand awareness of London, Ontario as a preferred destination for conventions. Successes: The LCC is recognized by clients for quality, first class convention services with a dedicated team of professionals which have contributed annually between $13 -$18 million in economic benefit for the City of London in the past 5 years while generating an operational surplus for the past 4 years with any surpluses being directed to the LCC reserves. Strengths of Service Delivery: The provides an exceptional guest experience for attendees and event planners as measured through the increase in guest comment scores. The LCC provides a strong value proposition compared to other centres by striving to be the preferred venue for customized knowledge transfer and entertainment experience by focusing on the individuality of each customer. Opportunities: The LCC Board of Directors is a dedicated group of professionals with a vision and commitment for continued success resulting in stronger growth and ultimate expansion of the LCC long term. The LCC is recognized for strong community partnerships and in a position to leverage many of these partnerships for stronger returns. The LCC is on a path of continuous improvement and will be launching a new brand logo and website in Development of new website, logo and communications strategy to drive increased brand awareness and foster new business opportunities through creativity and customization of event delivery. Page 3 of 7

4 Recent enhancements to economy, efficiency and effectiveness In 2010, the LCC updated the building automation system to improve efficiency and enhance the guest experience. The LCC implemented a new property management system in 2010, to improve client communications, data base and event space maximization, tracking of prospective business and lost business as well as more detailed financial information. Annually, the LCC contributes $16-18 million in economic benefit for the City of London while being operationally efficient with any operational surplus being directed to the capital reserve for future building investment. Future direction of this service The LCC is limited to attracting conventions of persons or large food and beverage events due to the limited physical size and space configuration of the building. In the long term the LCC will need to expand the square footage in order to attract larger events and alter the current space configuration to appeal to changing meeting needs. This will be addressed through the completion of a Physical Space Analysis. With the opening of several new Ontario convention facilities, competition for provincial association meetings will be much stronger. Local citizens who are members of provincial, national and international associations are an extremely important part of the convention sales process and are vital to the City successfully winning a convention bid. Local convention ambassadors are very often the only reason a City is selected. It is the convention bid strength and dedication of a local convention host committee that can be the deciding factor. The LCC continues to engage the general public to step forward as local convention ambassadors, encouraging them to bring their association conference to London. Even though there have been major advancements in meeting technology, the need for human to human connection will continue in the future and meetings and conferences will be held. Technology, however, needs to support these meetings and enhance the meeting by allowing international attendees to participate as well. Internet bandwidth for speed and multiple connections will be crucial for success in the meetings industry. The Provincial Government has indicated its desire to create a destination marketing tax on hotel rooms starting in Hoteliers in each of the 13 identified tourism regions in the Province will have the ability to vote on the implementation of this tax. London is located in Region 1. If this region does not implement this tax and all other regions move forward, Region 1 will be less than competitive to other Ontario regions. Objectives next 4 years Repositioning of the LCC through Brand Development Support LCC branding through marketing strategies, ongoing training and development program for staff, fostering a cultural shift with a focus on event customization, and strategic partnerships within London and surrounding region. Expected completion year 2012 Division responsible Cultural shift - enhancing the current service culture to be more of a creative culture with a focus on customization through training and development programs. Page 4 of 7

5 Focus on the customization of events through service delivery and through training and development. Ensure availability of appropriate technology to support customization of events. Redefine the LCC through branding with new website, launching a social media strategy and new LCC logo. Improvement in guest satisfaction scores. Increased revenue and attraction of events. Improvement in employee satisfaction scores. Grow LCC business by redefining the LCC experience Enhance current practices to grow the LCC business by redefining the LCC customer experience. Expected completion year Division responsible 2013 Build upon and enhance the great service culture by fostering a creative culture (new training programs, lunch and learn programs); Marketing and Communications: customization, review and redevelopment of LCC message, identify and create database of creative companion programs and London assets; assess quality of available guest rooms, raise awareness of accessibility and options to customize accessibility, develop internal tools/technology to customize communications to clients, develop enhanced tool for measuring client needs and satisfaction Increased client satisfaction, annual increase in number of bookings Evolve and build the business mix of LCC Evolve and build the percent of business from multi-day events by addressing barriers to sales. Expected completion year 2013 Division responsible Sales training, delegation selling, redefine LCC brand and be catalyst for a new brand initiative for London, utilize social marketing, customization of proposals, website and event execution, initiate partnerships with local businesses and institutions, conduct physical space study and future needs analysis of the LCC. Economic impact growth, increased lead generation for conventions, convention/conference revenue, increase in local convention ambassadors, of event revenue from multi-day events hosted annually. Increase awareness of Southwestern Ontario as a Gathering Place Initiate partnerships with regional partners (SWEA, SWOTC) and take leadership role with regional organizations. Identify historically successful business segments in SW Ontario, identifying regional champions and build on industry strengths; redefine LCC brand - building upon regional strengths; website to reflect regional strengths and attractions; continue "shop regional" promotions; represent LCC as a regional facility. Page 5 of 7

6 Expected completion year 2014 Division responsible Initiate partnerships with regional partners (SWEA, SWOTC) and take leadership role with regional organizations - identify historically successful business segments in SW Ontario, identify champions and build on strengths; redefine LCC brand - build upon regional aspects; website development to reflect region; "shop regional" promotion. Increase in regional convention ambassadors, increase in regional board representation, development of formal partnerships with regional organizations, increased booking pace, increased economic impact. Emerging issues and challenges Other New Ontario competition Service changes with financial impact (+/-) Statistics and performance measures A Activity measures Number of Conventions/Conferences booked B Efficiency measures Total revenue/square foot of function room space Page 6 of 7

7 C Effectiveness/Quality/Satisfaction measures Guest satisfaction scores above the 'meets expectation' category (ie not including meets) Annual Economic Impact (millions) Economic impact based on geographic origin of visitor: based on a study completed by Synovate Ltd in 2008/2009 for the LCC, Meeting Professionals International and the Ministry of Tourism and Culture we know that the direct spend in London of the average conference delegate is $301/day while day guests spend on average $ Ontario delegates spend $217/day, roughly half of those travelling from other provinces at $479/day. 20 Page 7 of 7

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