Agenda item

The Committee considered the undernoted report:

 

 “1Relevant Background Information

 

1.1       Members at Development Committee agreed to contribute £1,842,465 towards Belfast Visitor and Convention Bureau’s (BVCB) marketing and visitor servicing plans in 2012/2013.  BVCB was established in 1999 by Belfast City Council and has continued to receive financial support on an annual basis, using this support to lever funds from Northern Ireland Tourist Board (NITB) and the private sector.  Financial support goes towards the following activities:

 

            Marketing and Communications         £1,313,000

            Visitor Servicing                                 £529,465

 

1.2       In summary, BVCB are responsible for:

 

-       Attracting conferences to the city;

-       Delivering co-operative campaigns in key markets e.g. working with the retailers to target the ROI market and working with air and sea carriers to target the GB market ;

-       Attracting cruise visits;

-       Servicing visitor enquiries;

-       Booking facility for accommodation providers, venues, festivals and events;

-       Producing a range of marketing materials including destination guides and the gotobelfast.com website;

-       Advising members on opportunities;

-       Promoting Belfast as a day trip destination via above the line and tactical advertising

 

1.3       The key activities above are grouped under Marketing and Communications, Conference Bureau/Business Tourism and Visitor Servicing.

 

1.4       The BVCB Board is representative of the sector and includes both private sector and 8 elected representatives from Belfast City Council.  NITB sits as an observer, as do a range of interests including retail sector representatives.

 

1.5       The Development Committee on 24 January 2012 received a presentation from BVCB on their proposed targets for 2012/2013.  After a significant period of review using international expertise of John Heeley, the Chair of European Cities Marketing, BVCB has identified 20 key performance indicators which will be monitored during the period 2012–2013.  Committee endorsed this approach and Council’s funding is dependent on satisfactory performance against these targets.  Quarterly reports are provided to both the Board of BVCB and Belfast City Council; Quarter 1 (April–June 2012) is attached as appendix 1.

 

2    Key Issues

 

2.1       Quarter 1 Monitoring Report

 

            Officers have reviewed performance at Quarter 1 and completed a monitoring review with BVCB’s senior meeting.

 

2.2       Overall, BVCB’s performance is on target as shown in Appendix 1.

 

2.3       Business Tourism and Cruise Visits

 

            In summary, after a restructuring exercise, the conference team is now in place and BVCB are confident that they will exceed the number of conference wins in 2012/13 period.  The number of cruises secured for 2013 has already exceeded targets and work continues to secure cruise ships beyond 2013/14 period.

 

2.4       Visitor Servicing

 

            Between January and June 2012 Belfast Welcome Centre (BWC) welcomed 141,000 visitors through its doors, up 32% compared to the same period in 2011.  BWC has handled 201,433 enquiries, up 41% compared to same period 2011 reflecting on-going strong interest in Belfast through positive media coverage and the Titanic effect.  Visitor and enquiry figures for March and April were at a level that surpassed previous monthly highs recorded in 2007/08.

 

2.5       Marketing & Communications

 

            There have been 2 campaigns in Quarter 1 and remaining campaigns for 2012/13 period are aimed at the Autumn 2012 and Spring 2013 period.  Performance of Q1 campaigns are now subject to a new evaluation process which BVCB has introduced for the first time and results will be available for Q2.  Good levels of partner income have been secured and 85% of sponsorship targets have been achieved.  BVCB are reviewing sponsorship in line with the relocation of the BWC and are hopeful that this will present additional opportunities.  Only 7% has been achieved against equivalent advertising spend generated via PR, however this is due to the lag time in the press publishing stories after a visit and the time required to evaluate these. The level of journalist visits and media attention has been extremely high in Quarter 1 due to Titanic Belfast and the City’s events programme; BVCB are confident that this target will be met.

 

2.6       At a city wide level, BVCB also tracks hotel performance in the city which provides an indicator of how the city is performing.  Members will note that the Belfast Tourism Monitor figures presented last month for 2011 showed a decline in visitor numbers. However at their August board meeting, BVCB reported that Jan–June 2012 room occupancy is 70% (61.8% J-J 2011) which is up 13.2% percentage on last year; Jan–June 2012 room demand is up 14.2% compared to June 2011; Jan–June 2012 RevPar up 17.3% and Revenue up 18.3%.  In conclusion, it is anticipated that 2012 tourism figures will be substantially up compared to 2011 and officers are working with Millward Brown Ulster who conduct the Belfast Tourism Monitor to develop an interim report for Committee before December 2012.

 

2.7       Audit Recommendations

 

            Belfast City Council’s Internal Audit Plan for 2011/12 provided for an audit of the Belfast Visitor & Convention Bureau (BVCB).  The audit was undertaken by the Council’s Audit, Governance and Risk Services (AGRS) section.  AGRS sought to ascertain the progress that BVCB had made as regards the development of effective governance arrangements, taking into account recommendations arising from previous audit reviews.  A summary of AGRS report is available on the modern.gov website.  A number of recommendations have been detailed within an agreed Action Plan with BVCB, including:

 

-       The Policy relating to the Code of Conduct for employees;

-       Guidance over potential conflicts of interest and gifts and hospitality;

-       Audit and Finance sub-committee;

-       Development of a Risk Management Strategy and embedding Risk Management across the organisation;

-       The development of a comprehensive Fraud Policy/Fraud Response Plan;

-       Development of  a protocol document around the Election of Board Members/

 

2.8       Internal audit will carry out a follow up exercise in 6 months to ascertain the progress that has been made on implementing the recommendations.

 

2.9       Relocation of Belfast Welcome Centre

 

            Development Committee will be aware that the Relocation of the Belfast Welcome Centre is a priority project within the Council’s Investment Programme.  Progress reports are made to SP&R committee.  To date, funding has been secured from NITB and Council is awaiting a formal letter of offer for circa £750,000, a Project Board and Project Team has been established led by the Development Department and the design team is in the process of being appointed by Property and Projects.  The aim is to relocate the Belfast Welcome Centre by June 2013 into ground floor premises on Donegall Square North.

 

3    Resource Implications

 

3.1       Financial

 

            Committee has agreed to an annual contribution of £1,842,465 in 2012/2013 and is included in the Department’s budget.  Based on satisfactory performance in Q1, it is recommended that the second tranche of payments worth £804,732.50 is released in October 2012.

 

4    Equality and Good Relations Considerations

 

4.1       There are no specific equality or good relations considerations attached to this report.

 

5    Recommendations

 

5.1       Based on satisfactory performance in Q1, it is recommended that the second tranche of payments worth £804,732.50 is released in October 2012.”

 

Appendix 1

 

BVCB – Quarter 1 Performance against Targets 2012/2013

 

 

            During discussion, a Member raised concern in respect of the extent of the Council’s financial contribution to the Belfast Visitor and Convention Bureau. The Director informed the Committee that the Belfast Visitor and Convention Bureau was one of three key players in delivering tourism to Belfast and he suggested that, in order to receive a collective viewpoint, the other two organisations viz., the Northern Ireland Tourist Board and Tourism Ireland Limited, be invited to attend a future meeting to provide an overview of their work and the challenges faced and to outline how the Belfast Visitor and Convention Bureau could support their marketing activities.

 

            The Committee adopted the recommendations and agreed also to invite representatives from the Northern Ireland Tourist Board and Tourism Ireland to attend a future meeting.