Agenda item

            The Committee considered the undernoted report:

 

“Relevant Background Information

 

      Conference Subvention

 

      Members will be aware that Belfast City Council has a Conference Subvention policy which is utilised to secure and support national and international conferences to Belfast and to build the City’s profile as a conference destination. It was agreed at Development Committee of 10 March 2010 that the existing scheme would close on 31 May 2010 and that current commitments under this scheme would be honoured.

 

      Members will also be aware that officers have been liaising with Northern Ireland Tourism Board (NITB) and Belfast Visitor and Convention Bureau (BVCB) to develop a new Conference Subvention Scheme for Belfast.

 

      Aligned to priorities in the draft Integrated Strategic Tourism Framework, NITB, BVCB and Belfast City Council have developed a new Conference Subvention Scheme with a total funding budget of £435,000 over three years. Belfast City Council will contribute £70,000 per annum and NITB will contribute £75,000 per annum.  Funding of £70,000 is available in the current 2010/2011 Tourism, Culture and Arts budget and additional details of the new subvention scheme are in Appendix 1.

 

      The Conference Subvention Scheme has been revised and the main objectives are;

 

-     To raise the profile of Belfast and Northern Ireland as a leading business and conference destination

-     To consolidate existing investment in Belfast and Northern Ireland hotel and conference infrastructure

-     To increase the contribution of Business and Conference Tourism to Belfast and Northern Ireland economy

-     To change the international perception of Belfast and Northern Ireland

-     To encourage inward investment to Belfast and Northern Ireland

-     To grow the number of leisure visitors by encouraging conferences to run partner and extender programmes

-     To develop a partnership approach to promoting Northern Ireland as a business and conference destination

 

      Belfast City Council commissioned a Report on a new Conference Subvention Scheme for Belfast in November 2008. Prepared by Sally Greenhill Associates, this report outlines that all major cities throughout the UK operate subvention schemes. For example, Birmingham - £650,000 per annum, Manchester - £6million over 3 years, Glasgow – £1 million and Liverpool, Blackpool, Bournemouth and Brighton all have pots of £1million each. The majority of subvention schemes are funded by respective City Councils.

 

      In terms of total impact of a new Conference Subvention Scheme for the city, it is estimated that an International Association Delegate spends £386.06 per day and a multi-day Domestic Association spends £488.94 per day. In 2003/4 NITB established a similar scheme with the International Fund for Ireland worth £663,000 over 3 years. The total value of conferences secured with this fund was £6.8million in economic benefit producing a return on subvention funding of over 12:1. It is estimated that this new scheme will produce similar economic benefits to the City. 

 

Key Issues

 

      Criteria

 

      The main eligibility criteria for Conference Subvention are summarised below;

 

-     The conference should be based in Belfast and include use of overnight accommodation in the Belfast area.

-     The conference should preferably have a minimum of 300 out of state delegates and accompanying partners staying for two nights in the Belfast area. However a conference with a smaller number of out of state delegates staying for multiple nights will be considered if there is evidence that this conference will lead to a larger associated conference coming to Belfast within the next 8 years. The level of subvention being sought against the potential economic benefit will be taken into consideration

-     The conference should have an impact on and/or a potential for local businesses and organisations by providing opportunities for developing industry/sector links or to showcase local products, cultural, sporting or intellectual fields.

-     The subject areas of the conference should relate to local economic and tourism strategies or specific priority areas for Belfast or Northern Ireland.

-     The event, by locating in Belfast should enhance the areas international profile and as such the prestige value of the event will be taken into account i.e. media coverage, speaker profile

-     Conferences must demonstrate strict financial project management, cash flows and projected income and expenditure account.

 

      Delivery

 

      NITB, BVCB and Belfast City Council have assessed the options for delivery of the new scheme and agreed that the most appropriate vehicle is BVCB however, a separate panel including representatives from NITB and Belfast City Council will approve all applications. Quarterly reports will be presented to Development Committee on progress of the scheme and BVCB will be required to administer the scheme within current administrative budgets.  BVCB will establish clear governance arrangements to be agreed by NITB and BCC to ensure transparent and effective delivery of the scheme on behalf of both funders.

 

      Whilst approaches were made to Invest Northern Ireland to contribute to the scheme, they have agreed to consider individual requests to support subvention against those conferences that best support the economic priorities for Northern Ireland as opposed to contributing to the wider pot.  This position will be reviewed once the scheme is fully established.

 

Resource Implications

 

      Funding of £70,000 is available in the current 2010/2011 Tourism Culture and Arts Budget and commitment of £70,000 in 2011/2012 and £70,000 in 2012/2013.

 

Recommendations

 

      It is recommended that the Committee approves:

 

-     the new Conference Subvention Scheme

 

Decision Tracking

 

      Timeline

 

-     A New Conference Subvention Scheme is to be in operation by October 2010

 

-     BVCB to produce quarterly reports

 

      Timeframe: October 2010     Reporting Officer:  Kerrie Sweeney

 

Key to Abbreviations

 

      BVCB   Belfast Visitor and Convention Bureau

      NITB     Northern Ireland Tourist Board

 

Documents Attached

 

      Appendix 1 – Additional details of the new subvention scheme

 

Appendix 1

 

Objectives of the Scheme:

 

-     To raise the profile of Belfast and Northern Ireland as a leading business and conference destination

-     To consolidate existing investment in Belfast and Northern Ireland hotel and conference infrastructure

-     To increase the contribution of Business and Conference Tourism to Belfast and Northern Ireland economy

-     To change the international perception of Belfast and Northern Ireland

-     To encourage inward investment to Belfast and Northern Ireland

-     To grow the number of leisure visitors by encouraging conferences to run partner and extender programmes

-     To develop a partnership approach to promoting Northern Ireland as a business and conference destination

 

Criteria for eligibility:

 

-     The conference should be based in Belfast and include use of overnight accommodation in the Belfast area.

-     The conference should preferably have a minimum of 300 out of state delegates and accompanying partners staying for two nights in the Belfast area. However a conference with a smaller number of out of state delegates staying for multiple nights will be considered if it relates to the Belfast Integrated Tourism Strategy or if there is evidence that this conference will lead to a larger associated conference coming to Belfast within the next 8 years. The level of subvention being sought against the potential economic benefit will be taken into consideration

-     Demonstrate that the conference would not come to Belfast or Northern Ireland unless support is provided

-     The conference should demonstrate that it will provide economic benefit to or be likely to have a positive impact on the local economy.

-     The applicant should demonstrate that it is not-for–profit organisation.

-     The conference should have an impact on and/or a potential for local businesses and organisations by providing opportunities for developing industry/sector links or to showcase local products, cultural, sporting or intellectual fields.

-     The subject areas of the conference should relate to local economic and tourism strategies or specific priority areas for Belfast or Northern Ireland.

-     The event, by locating in Belfast should enhance the areas international profile and as such the prestige value of the event will be taken into account i.e. media coverage, high profile speakers

-     As part of the agreement in accepting subvention Belfast City Council requires that if required, our tourism researchers will be allowed to interview the conference organiser and a sample of the conference delegates on the day(s) of the conference. This will allow the researchers to assess the economic value that the conference can contribute to tourism in Belfast and provide feedback on tourism products and services. 

-     A post conference report is required from the organiser to provide a further evaluation of the success and impact of this particular conference.  This information is published in our ‘Tourism facts and figures’ each year.

-     In addition the Belfast City Brand and NITB logo, are to be used on all literature / websites designed for the conference. The Brand guidelines can be found at www.belfastcity.gov.uk/brand and the NITB logo at www.nitb.com

-     An application for conference support cannot be considered without evidence of strict financial project management, cash flows and projected income and expenditure account.

-     At the time of submission of the application form, subvention will not be made available if the conference is taking place/confirmed within the following 6 months period.

 

Eligible Costs:

 

      The following costs will be deemed eligible for consideration for assistance;

 

-     Certain eligible conference organisation costs e.g. venue costs.

-     Pre conference marketing costs to ensure maximum delegate attendance.

 

Non Eligible Costs:

 

      The following areas will not be considered eligible for assistance;

 

-     Event Management Fees.

-     Food, beverage and entertainment (conference organisers can be encouraged to approach Belfast City Council for civic receptions and other support)

-     Loose fittings and fixtures i.e. items which can be used at future conferences.

-     Retrospective support cannot be given for activity undertaken before application is approved and Letter of Offer received.

 

Governance:

 

      Applications will be assessed against the Scheme criteria and only conferences deemed to most closely match the objectives of the Scheme will be considered for support. 

 

      The assessment panel, made up of representatives from NITB and Belfast City Council will approve all applications and make decisions on the percentage and timing of funding to be allocated. The panel will withhold 25% of funding until completion of a Post Project Evaluation by the conference organiser, whereupon the final funding will be released.

 

      A Service Level agreement will be established between Belfast City Council and BVCB and NITB to identify roles and expectations between each of the organisations.”

 

            The Committee approved the new Conference and Subvention Scheme.