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Spring is in the air

It must be because it is spring and spring always brings forth positive thoughts but I have a feeling

that 2012 is going to be a momentous year for the New Zealand convention industry for a variety of reasons.

Most of these reasons concern announcements around infrastructure for New Zealand, which will take the destination to the next level in terms of its international and domestic offering. Obviously, the proposed international convention centre (ICC), which was announced by the Prime Minister some months ago, will need to have further detailed negotiations between the proposer SkyCity and the New Zealand Government. Assuming there is no change of government in the November election these negotiations hopefully will be brought to a successful conclusion some time in 2012.

I am very much aware of the worries around problem gambling that have been aired by many opponents of the proposal and I fully concede there are a small proportion of people engaged in gambling who are, in fact, addicted to it. However, my understanding after some research is that these figures are not that high, especially when compared to alcohol addiction, and whilst I don't wish to make light of the problem I think we need to put it in context. The interesting thing that I have picked up from all the discussions around this issue is that all the opponents of SkyCity being involved in the ICC because of problem gambling, agree that there is a need in New Zealand for an international convention centre, which is fit for purpose, located in Auckland. However, the problem has always been that just wishing something to happen and agreeing that it is a good thing is not enough. Unfortunately, someone has to pay for it! In the current economic climate it is simply not feasible to expect the New Zealand tax payer or the rate payers of Auckland to pick up the tab for an infrastructural development that could easily cost half a billion dollars including land acquisition, construction, and fit out.

What we have on the table is a proposal from a public-listed company to provide the facility for New Zealand at no cost to either the New Zealand tax payer or the rate payers of Auckland.

I am not naïve and I fully concede there are sound business reasons for SkyCity to undertake this development and they are not doing this for altruistic reasons. However, the opportunity is simply too good to pass up. I sincerely hope the negotiations are concluded to the satisfaction of all parties and any issues around problem gambling are mitigated and managed. This will mean we can all move on towards a great outcome in terms of a fit-for- purpose international convention centre that will enable New Zealand to foot it with the "big boys" in the Australasian region in terms of hosting large to medium sized international conventions.

The other good news I would like to see in 2012 is the announcement that Christchurch will rebuild its convention centre that was unfortunately very badly damaged in the February 22 earthquake, and not only rebuild the facility but considerably enlarge the footprint to accommodate up to 3000-plus delegates.

There was a plan by the previous VBase Management to undertake an expansion of the facility, which was based on very sound business reasons as Christchurch was enjoying significant patronage from both domestic and international convention organisers and was punching well above its weight in the market. The tragic events of February 2011 mean the city has a fantastic opportunity now to literally rebuild itself and I understand the plans for an expanded new convention centre are part of the plan for the CBD. Coupled with all the other exciting developments that are planned in terms of hotels, shops, restaurants and other infrastructure, I would suggest that Christchurch when it finally does complete the rebuild of its CBD will be a serious competitor for all cities in our region.

I understand that the proposed timeframe for the completion of the rebuild would be 2016 and given the fact that the ICC should be up and running hopefully in 2015, New Zealand will have two superb, internationally competitive convention facilities that will really take the country to the next level in terms of its international competitiveness for medium to large-scale international conventions.

Now I can hear you all say that's great, but who is going to fill these facilities and that indeed is the $64 million question! The last thing New Zealand wants is a trend where infrastructure development roars ahead and virtually more than doubles the amount of space currently available, and precisely when this infrastructural development is on a upward trajectory, the international marketing is going the other way. CINZ, in conjunction with its industry partners Tourism New Zealand and Air New Zealand, is in the process of finalising a refresh of its international convention marketing strategy and the parties are very cognisant of the fact that there is possibly a huge increase in infrastructural development imminent. All the parties recognise that the international marketing of New Zealand as a convention destination must also accelerate with the infrastructural development. However, this is easier said than done, and the strategy refresh will be presented to the industry at the CINZ Annual Conference to be held in Wellington on November 16 and 17, where not only will CINZ speak on the subject but also Tourism New Zealand. These presentations will be followed by a Q & A session attended by myself, senior management from Tourism New Zealand and Air New Zealand.

New Zealand has a fantastic opportunity in front of it to really go to the next level in terms of its convention offering, particularly in the international market. But it is essential that the development of infrastructure is accompanied by increased international marketing efforts to ensure that any new facility will be well utilised, especially by incremental new international convention business.

The economic benefits accruing from this incremental business have been well documented and are considerable, and given the challenges that New Zealand faces in the export arena, any increase in foreign exchange earnings being generated as a result of increased convention activity will be most welcome.