After the Crisis: Global Industry Status and ProspectsNorth America

James E. RooneyExecutive Director

MCCA

Business Recovery – Uncertainty

Economic Growth U.S. Economy had strong momentum coming into

2011, but has slowed down through the first quarter.

U.S. Bureau of Economic Analysis June 21, 2011

Business Recovery – Uncertainty

Watch List Oil Prices Housing Market Lack of Corporate Spending City & State Financial Struggles Continue Federal Debt and Spending Debate

Double-Dip discussion returns

Current Situation

As government entities, meeting facilities feel the pressure of budget cuts 40% of AIPC survey respondents feel that currently the government is

less inclined to invest in the convention and congress centre industry, especially in terms of facilities and infrastructure.

In North America, this figure jumps to 47.1%

When operating funds are exhausted, capital projects are postponed New supply growth was tremendous through the 80’s and 90’s 41.2% of facilities in North America have “No development plans

currently”, with only 17.6% planning a renovation

Clients whispering concerns about building’s physical conditions Operating budgets cut or level for 3 years

North America is a mature market No organic growth Total Gross Revenues

increased by 2.2% from 2009 to 2010

The growth rate in 2011 is expected to continue at an industry average of 3.3%

Evaluation of Overall Business Model

Current conditions lend to additional pressures on convention center managers.

Investment and the Future

Technology Competitive advantage Providing enough flexible infrastructure Free WiFi Is free wired next?

Re-thinking business model U.S. Cities quietly looking at European model Show production/partnership Equity position in show creation

Re-use of real estate assets to maximize revenue Cities/Convention Center operators as hotel developers

Industry Response

Industry organizations collaborating to demonstrate value of face-to-face meetings

Benefits of meetings & conferences "beyond tourism" being discussed