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DRAFT
James E. RooneyExecutive DirectorMassachusetts Convention Center Authority
Massachusetts Office of Travel and Tourism T5 Presentation
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DRAFTMCCA Overview
Economic Impact: Economic Impact: (in millions)(in millions)
FY 2009FY 2009 $525.4$525.4FY 2008FY 2008 $586.9$586.9FY 2007FY 2007 $515.0$515.0FY 2006FY 2006 $439.9$439.9FY 2005FY 2005 $337.4$337.4
TotalTotal $2.4 Billion$2.4 Billion
Facilities:Facilities: Boston Convention & Exhibition CenterBoston Convention & Exhibition Center
Hynes Convention CenterHynes Convention Center
Boston Common GarageBoston Common Garage
MassMutual CenterMassMutual Center
The Massachusetts Convention Center Authority's (MCCA) mission
is to generate significant regional economic activity by
attracting conventions, tradeshows, and other events to its world-
class facilities while maximizing the investment return for the
residents and businesses in the Commonwealth of Massachusetts.
MCCA MissionMCCA Mission
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MCCA: Demonstrated Success
Over the last five years the BCEC and the Hynes have more than doubled their return on investments:
Initial BCEC investment $850.0 Million Operating & capital investments $118.7 Million Tax Benefits $129.3 Million
Economic Impact $ 2.4 Billion
Demonstrated Success (FY2005 – 2009)
Key Event Indicators
BCEC HYNES
Events 634 609
Room Nights 1,349,602 1,280,705
Attendees 1,838,449 1,736,878
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Demonstrated Success
Over the past five years, the BCEC and the Hynes have generated over $2.4 billion$2.4 billion in economic impact (2004-2009). More conventions are coming to Boston in next three yearsnext three years than at any time in history (2010-2012).
Total Economic Impact in Massachusetts
$0
$100
$200
$300
$400
$500
$600
$700
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10Proj.
FY11Proj.
FY12Proj.
FY13Proj.
$ in
Mill
ion
s
Hynes
BCEC
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Boston will become a “Top 5” destination for conventions and meetings, substantially increasing its market share among North American competitors and enhancing the economic benefit to the City of Boston and the Commonwealth and be identified as the #1 destination in North America for international corporations and associations to hold meetings, conferences and exhibitions.
Statement of Purpose
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DRAFTA Shared Vision for a Top 5 Boston
Have Boston be continually recognized as the “BEST” convention and meetings destination in North America
Make Boston a consistent “TOP 5” destination among North American convention and meetings cities
Make Boston the leading international meetings destination in the US
Build on the direct economic benefit we currently create here at the BCEC
Host key events that support Massachusetts’ core industries
Generate 5,000 construction related jobs
Create 1,200 new hospitality and associated positions
(CSL International Estimate)
Cause creation of 3,500 – 4,500 new spinoff jobs in associated Massachusetts businesses
Support workforce development across the destination
A campaign to:
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DRAFTLeading Cities
Rank CityTotal Number
of Shows
1 Las Vegas 232
2 Chicago 118
3 New York 116 (tie)
4 Toronto 116 (tie)
5 Orlando 100
6 Atlanta 88
7 San Diego 80
8 Denver 78
9 Boston 69
10 New Orleans 66Source: 2009 Tradeshow Week
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DRAFTHow we will get there:
MarketShare
MCCAMission
EconomicImpact
1
BCEC Strategic
Development Plan
8
DestinationHospitalityCulture &
Brand
2
HotelRooms
3
SouthBoston & theWaterfront
4
MobilityInfrastructure
5
BostonCommonGarage
6
Hynesas a
CongressCenter
7
InternationalMarket
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Principles and ObjectivesPrinciples and Objectives
Components of potential BCEC growth (hotel, ballroom, exhibit hall, auditorium, and other uses) shall be:
Massed to respect existing neighborhoods and BCEC building
Designed based on feedback and survey data from meeting planner community to meet needs of users
Sized to match projected market and program (including flexibility for expansion) and functionality
Separate to allow phasing
Planned as a “campus” rather than a “mega-building”
Constructible and cost feasible
Sustainable design (LEED) and energy efficient
Continued focus on technological innovation & capabilities
BCEC Strategic Development Plan
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DRAFTExpansion AnalysisFull-build scenario with BRA vision for waterfront
1. Existing BCEC
2. Proposed Hotel Sites
3. New Ballroom
4. New Exhibit Halls
5. New Lobby and Meeting Rooms
6. Auditorium
7. Park and Event Lawn
8. Westin Boston Waterfront Hotel
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DRAFTPotential Buildout Option
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DRAFTDestination Challenges
Destination ChallengesDestination Challenges
Hotel Room Supply
Transportation / Mobility
Inherent Cost
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DRAFTOpportunities Lost
Over the past 3 years, a total of 143 shows were lost due to Space, Dates or Rates at BCEC (Event dates ranged from 2007 – 2029)
Total Room Nights Lost: 2.07 M Total Economic Impact Lost: $1.50 B Total Tax Benefits Lost: $92.3 M
Over the same 3 years, 228 shows were lost at the Hynes, of which 69 shows were due to conflicts with BCEC business.
Data from Jan 1, 2007 – Feb 2, 2010
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Cost Constraints
Am Society for Therapeutic Radiology & Oncology (ASTRO)
September 16-26, 2008 Attendance: 12,000 persons Room Nights: 34,200 (as of cut-off) Shuttle cost: $750K
Am College of Rheumatology November 5-11, 2007 Attendance: 14,000 persons Room Nights: 30,500 Shuttle cost: Between $500-$550K
International Association of Chiefs of Police
October 14-18, 2006 Attendance: 17,000 persons Room Nights: 28,900 Shuttle cost: $506K
Lack of hotels near BCEC results in significant transportation cost to our customers
Heart Rhythm Society May 17-20, 2006 Attendance: 14,000 persons Room Nights: 22,900 Shuttle cost: $214K
American Association of Orthodontists
May 1-5, 2009 Attendance: 20,000 Room Nights: 23,000 (approximate) Shuttle cost: $245K
(approximate) Biotechnology Industry Organization May 7-9, 2007 Attendance: 20,000 Room Nights: 31,100 (approximate) Shuttle cost: >$1million
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1,100
1,700
1,700
1,700
6,000
6,100
6,600
6,850
7,600
8,300
8,400
8,200
8,600
10,800
9,350
19,100
16,600
0 5,000 10,000 15,000 20,000 25,000
Chicago, IL
Los Angeles, CA
Boston, MA - BCEC
New York, NY
Boston, MA - Hynes
Baltimore, MD
Denver, CO
Miami Beach, FL
Washington, DC
San Diego, CA
Atlanta, GA
Philadelphia, PA
New Orleans, LA
San Antonio, TX
Orlando, FL
Las Vegas, NV
San Francisco, CA
Number of Rooms
Average = 7,570 RoomsMedian = 7,600 Rooms
Lack of hotel inventory is the number one constraint to BCEC Convention Business
DRAFT COPYFor Policy Discussion Only
* Chicago has dedicated transportation infrastructure from downtown hotels to McCormick Place
Comparison of Hotel Rooms Within ½ Mile of the Convention Center
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DRAFTBoston Hotel Development
Boston Convention andExhibition Center
½ Mile Radius
1 – Waterside Crossing (300)
2 – Waterside Place (300)
3 – Congress Street Hotel (505)
4A – Seaport Square (300)
4B – Seaport Square (400)
5 – Fan Pier (175)
6 – Pier Four (200-250)
1
5
6
23
4A
Existing Hotels– 0 hotels with more than 1,000 rooms.
– 1 hotel with 500 to 999 rooms.
– 2 hotels with 100 to 499 rooms.
4B
+ 1,700 existing+ 2,300 to meet current needs+ 2,000 to meet expansion needs
= 6,000 total rooms
Still does not meet hotel demand
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DRAFTHotel Rooms Within ½ Mile ofSan Diego & Orlando convention centers
San DiegoConvention Center
21
4
3
57
689
½ Mile Radius
San Diego Convention Center
– 3 hotels with more than 1,000 rooms.
– 1 hotels with 500 to 999 rooms.
– 5 hotels with 100 to 499 rooms.
½ Mile Radius
5
6
Orange CountyConvention Center
12
34
7
11
8
910
1213
14
15
17
16
– 4 hotels with more than 1,000 rooms.
– 1 hotel with 500 to 999 rooms.
– 12 hotels with 100 to 499 rooms.
Orange County Convention Center
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DRAFT
International Shows in Boston
Boston ranked top destination Boston ranked top destination in the United States in the United States for international association meetings, yet no for international association meetings, yet no single U.S. city ranks in top 20 (Boston is #45)single U.S. city ranks in top 20 (Boston is #45)
Source: International Congress & Convention Association, country & city rankings (2008)
Broaden international exhibitor and attendee base by enhancing international appeal
Capacity exists to strengthen market position Expand destination sales and marketing Emphasize European feel and proximity Direct flights: at peak there are 160 direct flights from
Europe to Logan weekly; growth with Grand China Airlines Strengthen hospitality culture across destination to be
more welcoming to international visitors
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DRAFTNext Steps
Public Outreach and Dialogue
The Convention Partnership: 27-member group to steward public study and analysis of feasibility of BCEC expansion
– Membership: Appointments by Governor, Mayor, Senate President, Speaker of the House; Includes South Boston Elected Officials, South Boston Community Development Foundation, Hotels and Tourism Groups, Watchdog Organizations, MCCA Board, Labor, Massport
– Analyze need for expansion, state of industry, potential expansion program, financing options, impact of expansion
– Conduct public meetings as needed
– Files a report to Governor, Mayor, Speaker and Senate President by December 31, 2010