Tourism Strategy Based on the 2012 Olympics - Research Paper Example

A Tourism Commentary Tourism Strategy based on the Olympics Contents Particulars Page # Introduction 3 The Business Tourism Industry 4 The Industry: Characteristics and Nature of Business Tourism 5 An International Convention Centre in London 6 Further Opportunities in Tourism 7 Infrastructure to support 2012 Olympic Games 9 Conclusion 10 Recommendations 11 References 12 Bibliography 13 Introduction The day was 5th of July 2005, when the whole of Britain, well… the whole United Kingdom, was celebrating because of an announcement that whispered that London will host the 2012 Olympics and Paralympics games. The moment of joy is finally here, even though it’s been over a couple of years since the announcement, the news is still vigorous and enthusiastic. Although the largest beneficiary of this news (the Olympics in 2012) will be the Britain’s tourism industry, which estimates a £ 2 billion business based on the data pertaining to the Olympics that were held in Sydney. (Parliament, Great Britain, Media and Sport Committee Culture, and House of Commons, 2005) Although the Business tourism in Britain is well over £ 20 Billion currently, still the tourism industry is eagerly anticipating Olympics, because that is supposed to bring some good omen after the last decision by the government to cut the funding for tourism by nearly one fifth, some economists had discovered that this decision was made on completely inaccurate data which stated an over anticipated growth in the industry. (Connor, Ashling, 2008) Here in this report we have discussed all the above and have also stated the future prospects of the tourism industry and the effects of 2012 Olympics on it. We have also provided a strong conclusion and recommendations as to the best options and growth opportunities in Britain. The Business Tourism Industry The £ 20 Billion revenues do not include the value of business transacted at trade events, which is estimated to generate in excess of £ 100 billion a year. Specifically, business tourism included 1. Conferences and meetings which generates: £ 11.7 billion a year. 2. Exhibitions and trade fairs: £ 1.69 billion annually 3. Incentive travel: £ 165 million plus 4. Corporate events: £ 1 billion per annum and finally 5. Outdoor events: £ 1 billion per annum. (Bowdin, Glenn, 2006) The non-discretionary business tourism is composed of the individual or corporate travel garners £ 7 billion of revenues per annum. There has been a 53% growth in all business trips to the UK in the span of more than a decade. Approximately, 7 million visits are made to the UK each year for business purposes. (Rogers, Tony, 2003) The decision made by the government to cut the revenues and expenditures by a fifth was not justified and the opposition as well as the tourism promotion NGO’s realize that and some have even protested against that decision, after all, we wouldn’t want to ruin England’s name by not being prepared or rather not being able to organize a breathtaking Olympics, we have to at least show a better performance than most of the first or third world countries, being one of the most supreme and developed nation. (Great Britain: National Audit Office, 2007) The Industry: Characteristics & Nature One of the most alluring characters of the business tourism industry is that it creates a lot of job as well as business opportunities as well as it sustains the workforce as it is an industry that’s growing at a constant and stable growth rate. As a matter of fact, the tourism industry in Britain has always been one of the most supreme commerce in terms of economic revenues. (Brent W. Ritchie, Neil Carr, Christopher P. Cooper, 2003) Secondly, the capital expenditure investments in this sector lead to social regeneration inner city and poor neighbourhoods. It has been a committed trend by all the preceding governments to invest the money earned via business tourism (or any sort of tourism as a matter of fact) to develop the revenue generation region in a more advanced comportment. Not only that, but the growth of the industry (particularly the business tourism segment) phenomenal: around one and a half million meetings and conferences held in the UK each year, 80 million people attend conferences and meetings in the UK every year. (Davidson Rob, Cope Beulah, 2003) An International Convention Centre in London? The LDA or the London Development Agency had set up a Mayoral commission in London in the year 2004; this mayoral commission was the London ICC (International Convention Centre). The sole purpose of the London ICC was to unearth and prove the viability and practicability of a Convention Centre in London. (Available from WWW: What is ICC?) The Mayoral commission of London ICC had many supporters as well as critics. Although the critics had only one strong central theme in support of their actions, which states that London already has many superb convention centres and thus there is no need to spend millions of pounds from the country’s treasury to built yet another one. These critiques were then silenced by the ICC stating the counter argument that whispered that internationally the business of convention centre has a wide scope and a great turnover which is somewhat higher than £ 100 billion. And since the market for convention centre has been growing at tremendous and stable rates, London being one of the most preferred tourist destinations should have a great convention centre to boost the business travel industry. This proposed convention centre should be built to comfortably hold and sustain anywhere from 400 people to 10,000 people at any moment of time. It is for sure that the convention centre will definitely boost the business tourism revenues in London and this is not a matter to just linger, instead such a decision should be immediately be implemented looking at the thriving business opportunities. (Available from WWW: Mayoral Commission) Finally, the Olympics of 2012 are not to be forgotten before planning for this convention centre. The Olympics will prove to be a great opportunity for London to prove itself worthy of holding business conferences and an ideal business development location. The convention centre should be built and functional before the Olympics take place so that those massive crowds get to view the superlative advantages of holding business conferences in London. Further Opportunities in Tourism and the Use of Convention Centre Being an industry worth more than a £ 100 billion, the convention industry is not something that’s to be neglected. The trends of business meetings have changed in times since the past decade due to the emergence of the technology and the communications boom. Decades ago people had to travel thousands of miles (a journey worth days or months even) to conduct or participate in business meetings, whereas now with the tremendous growth in the communications segment and the emergence of internet and e-commerce, meetings can easily be held on the computer via advanced technologies such as audio / video conferencing. Business meetings in the UK now require internet communications technologies, text messaging and internet messaging. This emerging preference has increased the value and importance of face-to-face communication. Interactive conferences have become the popular vehicle for the effective delivery and retention of key messages. Theatre productions and audience participation techniques have created a specific worldwide audience. Interesting fun games such team challenges, quizzes and group musical performances are all being integrated to encourage real involvement and assist with message retention. Advances in technology have positively helped the business tourism segment in terms of the use of presentation technology. (UK Conference Market Survey 2002) About 86% of conference organisers used PC-linked data projection for presentations. Expectations of venues are high in terms of their ability to keep up with advances in presentation technology. Corporate conference organisers have high expectations for all aspects of their meeting experience, demanding high quality meeting facilities and service, as justification for use of their valuable time in holding meetings. The recruitment and consistent training programs for the staff to meet these services requirements is a perennial effort for those providing facilities and services for conferences. Infrastructure to support 2012 Olympic Games The superb infrastructure in London for the London Olympic Games can be used as venues for business tourism events after the Games. The physical facilities were constructed using a world-class design and architectural expertise. For instance, the Olympic Stadium can be used to host an international business gathering of a British or a European multinational organization. (Thornley, A., 1992) The Olympic Stadium has state-of-the art presentation facilities and audio-visual facilities which can be helpful during national conferences for businesses. The Eton Manor can be utilized by a company which sets their yearly outing rugby matches among the corporate employees and their families. The Aquatics Centre can host a Strategic Planning Seminar for sales managers of a company which provides a swimming competition among various company departments. The bonding sessions between company employees can be done through swimming events. The Olympic Village can be used to host an international business conference of a multinational corporation. The village can provide accommodation for the company delegates who can be housed in separate housing units. The basketball arena can host invitational basketball tournaments from companies which hold annual outings for the families of the employees. The Velo Park can hold open air exhibits of products and services. Another positive benefit for business tourism is that the road networks around the Olympic venues are all new. Not only London, but the rest of Britain is also prepared for the Olympics with their own infrastructure, like for example the Millennium sport center in Cardiff Birmingham-Jefferson Convention Complex in Birmingham. Millions of people appear as audience in the Olympics from all over the world and they cannot be expected to leave Britain immediately after the Olympics as the majority choice of people is always a whole packaged tour for all the famous parts of the country in which the Olympics have been held. Thus a place like Birmingham could not be neglected as it might also expect a lot of tourists and foreigners. (Higham, James, 2005) Conclusion Business tourism holds many economic possibilities for the United Kingdom. This segment generates high revenues from visitor spending yearly. Furthermore, this segment is expected to post double digit growth rates in the next decade. Moreover, this sector supports some 530,000 jobs. Any business investment will lead to more jobs available to UK citizens. (Business Tourism Partnership, 2005) There are still weak areas that need improvement for this sector. The sheer volume and value of the business tourism necessitates a closer cooperation and interaction between the public and private sectors. The British government can link their marketing programs with the marketing programs of the private sector in order to avoid duplication of marketing materials. This sector needs a long-term development plan. Moreover, business tourism is a beneficiary of the 2012 Olympic Games in London. There are many new physical facilities and infrastructure that can provide venues for exhibits, sports competitions and conferences that will further enhance business tourism in London. The presence of new facilities will provide an opportunity for bids by UK associations to host the international conference of any international or national organization around the world. Recommendations The business tourism industry of London has observed that the visitor spending in London (or UK) is particularly higher than that of most countries. But still it has further growth prospects (in terms of attaining higher spending from tourists), therefore this sector should obtain higher levels of investment in marketing from the UK government. Second, the Department of Trade & Industry and UK Trade and Investment should put emphasis on trade development and export earnings offered by business tourism activity. Third, there should be better assistance from UK Government departments and agencies. Moreover, special attention can be paid to the bidding process for international conferences and events. (Lennon, John, 2003). The pertinent government officials can coordinate support by establishing linkages with senior Ministers, Ambassadors, Trade Consuls and Commercial Attachés. Fourth, there should be more economic research and consumer analysis to improve research and data collection for business tourism. A Standard Industrial Classification (SIC) for the Business Events Sector needs to be established to ensure careful reporting of economic and employment data. The world-class conference facilities are the 2012 London Olympic Facilities, the National Exhibition Centre, International Convention Centre, Ricoh Arena in Coventry and Telford International Centre. The combination of cultural, natural and historical assets has helped create a positive image for the UK in terms of business tourism (Daily Post. August 8, 2007). The UK offers world class business and leisure destinations on the basis of a world-class visitor experience. He/she wants to be able to eat, drink, shop and stay in tourist spots which offer consistent high quality and respectable value for money. Excellent facilities such as business venues, exhibition halls, good roads, clear signage, and a clean, safe and attractive environment enhance the quality of visitor experience. References Parliament, Great Britain, Media and Sport Committee Culture, and House of Commons. (2005). London 2012 Olympics: First Steps; Oral and written evidence. London. Pg: 29-30. Vol. iii Bowdin, Glenn. (2006). Events Management. Great Britain. Page xvii. Edition: ISBN0750665335 Rogers, Tony. (2003). Conferences and Conventions: A Global Industry. London. Pg: 165 - 178. Edtn: ISBN 0750657472 Lennon. John. (2003). Tourism Statistics: International Perspectives and current issues. Pg: 213 Available from WWW: London ICC Commission > The ICC Project > What is an ICC?. (2004). URL: http://www.londonicc.co.uk/iccproject/index.aspx?P=1. Daily Post. August 8, 2007. The Cultural Assets. Business Tourism Partnership. (2005). An Overview of UK’s Business Visits and Events Industry. London: Business Tourism Partnership. Thornley, A., (1992). The Crisis of London. London, Pg. 210 - 251 UK Conference Market Survey. (2002) Connor, A. (2008).Tourism cuts ‘waste Olympic opportunity’, viewed on 26th March 2008, available at WWW: http://www.timesonline.co.uk/tol/sport/london_2012/article3549391.ece Great Britain: National Audit Office. (2007). The Budget for London 2012 Olympic and Paralympic Games. Page 11. Brent, R.; Neil, C.; Cooper, C. (2003). Managing Educational Tourism. Page 179 - 180 Davidson, R.; Cope B. (2003). Business Travel: Conferences, Incentive Travel, Exhibitions, Corporate Hospitality, and Coroorate Travel. Pg: 56. Volume 5 Available from WWW: Home – London ICC – Mayoral Commission: London Development Agency. Available at: http://www.lda.gov.uk/server/show/ConWebDoc.442 Higham, J. (2005). Sport Tourism Destinations: Issues, Opportunities and Analysis. Page 33, vol. 1 Bibliography  Rogers, Tony. (2003). Conferences and Conventions: A Global Industry. London. Pg: 130 - 178. Swarbrooke J., Horner S. (2001). Business Travel and Tourism. Vol. 1 Read More