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Adelaide struggling to compete for conferences

Oct 01, 2013
An illustration of the redeveloped Adelaide Oval.

An illustration of the redeveloped Adelaide Oval.

The Adelaide Convention Bureau says international “low destination perception of Adelaide” is one of the reasons why South Australia struggles to attract major conferences.

The bureau says it is difficult to compete against eastern states and Asia for major conferences and it is calling for more money to make competitive bids.

Bookings for 2015 and 2016 are trending low, and the bureau says investment is needed in order to cash in on the opportunities offered by Adelaide’s Riverbank infrastructure investment.

“If additional bidding resources were available this would certainly assist to overcome the significant cash incentives offered by competing destinations and decision makers’ low destination perception of Adelaide and South Australia,” ACB chairman Phil Baker said in the bureau’s annual report.

With an “infrastructure supply boom” set to hit Adelaide, including the Adelaide Oval and Riverbank precinct redevelopments, Baker said the board was focussed on securing more resources for the ACB – with a projected return of 100:1 on investment.

The forecast for 2013 is lower than 2012, despite a successful 2012-13 year, in which the bureau achieved $23 million more than the targeted annual total economic benefit of $103 million.

ACB chief executive Damien Kitto said a higher level of investment would immediately entice clients away from the safe haven of the eastern seaboard and allow Adelaide to compete with Asian destinations.

“As reported last year the large conventions (800+) are still proving difficult to secure due to economic conditions, with the biggest challenge being the ability to present an attractive and well-funded bid to convention organisers,” Kitto said in a report to the Adelaide City Council.

“Such is the value of these highly sought after conventions, competing destinations are increasingly presenting highly resourced and well-funded bids.”

The bureau says it has won $180 million worth of business for the 2012 calendar year, with 2013 lower at $135 million and 2014 predicted to be $140 million.

However, it says estimates for 2015 ($24 million) and 2016 ($18 million) are trending low.

Kitto said competition to attract conferences was “fierce”, mainly due to the lucrative nature of business visitors to the state.

“This is in the context that we are a high yielding industry where the average daily expenditure is $632 dollars a day versus a leisure visitor at $179 a day.”

While the ACB is meeting its targets, Kitto believes it could be missing out on the great opportunity afforded by the upcoming infrastructure boom, with greater resources needed.

He said SA could not compete with the cash and in-kind incentives offered by other cities and countries.

The ACB has been creative in targeting clients using ambassadors. As an example the ACB has a Multinational Association of Supportive Care in Cancer conference locked in for 2016 with 1500 delegates forecast to bring more than $5.7 million economic impact to the state.

“We had the world president based in Adelaide and through her support, she was able to sell Adelaide’s case,” Kitto said.

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