London as a Business Tourism Destination - Coursework Example

London as a business tourism destination Contents Page Introduction 2. Infrastructures and Capacities 2 Road and train infrastructure 2.2. Airports 2.3. Key meeting venues 3. DMO London 4. Business Mix 5. Key Stakeholders and partners 6. Future Challenges 7. Future Opportunities 8. Conclusion and Recommendations 9. Appendix 10. References London as a business tourism destination Introduction Business travel industry is highly valued industry in the UK as is an important revenue generator for the UK treasury and makes significant contribution to the UK gross domestic products (Key Note 2014). London is recognized to be one of the most popular destinations within the UK for inbound business travel as many organizations and companies have representative offices in the city (Key Note 2014). Leading position of London as a political, business and financial centres of the world makes London one of the top international destinations in the world. Popularity of London as business tourism destination results in a continuous flow of outbound, inbound, and domestic visitors into the capital (Key Note 2014).Thus, for example, in 2013 the total number of visits to London exceeded the number of 3,2 million (Key Note 2014). In addition to the growing number of tourists, London is continuously improving its position in the international rankings. According to the ICCA rankings report for 2012, London took the 6th place by the number of meeting per city in Europe and in the world (International Association Meeting Market 2012). The aim of this research is to analyze the London’s infrastructures and capacities, Destination Management Organization, business mix, challenges and opportunities and to provide a critical overview of London as an international business destination location. Infrastructures and Capacities Road and train infrastructure According to the Mayor of the London, in order to be “the best big city in the world” the city should shift away from the car (Begg 2013, 35). It is assumed that “livability” is a key factor for entrepreneurs and workforce, and therefore it is the criteria which makes city more attractive in terms of business destination. The volumes of travel by road have declined over the past two decades, as about 30% of the road capacity in central London was given to bus users, pedestrians and cyclists (Begg 2013). Highway capacity in outer London also has decreased by 5% and in inner London by 17% (Begg 2013). Despite these aspects, road and train infrastructures are highly developed because of regularly updates and expansion (Key Note 2014). Airports In addition to strong train and road travel infrastructure, London has strong airport infrastructure. London has six airports, including: London Heathrow, London Stansted, Gatwick Airport, London Luton, London Southend and London City. Combined into the large airport system, these six airports differentiate the UK as one of the leading international transport hubs in the world (Key Note 2014). Moreover, London’s six airports are leading among other airport systems in the world in terms of the total passenger traffic (Key Note 2014). Key meeting venues In London there are some greatest venues in the world built purposefully for conferences. The spaces can be easily accessed from travel hubs of London, and offer flexible spaces (some spaces are planned for up to 30,000 delegates) (Conventionbureau.london, n.d.). The major conference venues for associations include the following: Hilton London Metropole; Novotel London West; Lancaster London; Novotel London ExCeL; Central Hall Westminster; The Queen Elizabeth II Conference Centre; ExCeL London (see Appendix, Table 1 for more details ion the total meeting space area, number of event spaces, and number of delegates) (Conventionbureau.london, n.d.). The London’s first ICC at ExCel London was opened in 2010 (Excel-london.co.uk 2012). The Exhibition and Convention Centre has significantly improved position of London in relation to the business destination and global events, strengthening city’s competitive position among major cities in Europe and the world (Excel-london.co.uk 2012). By opening of the ExCel London, the city is capable to attract more association events and large conferences. Destination Management Organization London & Partners is the official convention bureau for London and part of the Mayor of Londons promotional organization (Conventionbureau.london, n.d.). The bureau has partnership relations with more than 400 various organizations operating in a range of business tourism venues and services in London (Conventionbureau.london, n.d.). London & Partners acting as a Destination Management Organization of London provides support and assistance to organizations bringing their events to the UK’s capital (Excel-london.co.uk 2012). The major functions include: providing of free advice about hotels, venues, PCOs and DMCs; assisting with bid production; offering accommodation housing service; providing delegate offers and visitor information; providing group discounts on travel to/in London (Conventionbureau.london, n.d.). Thus, for example, London & Partners have helped major associations to visit such event held in London as International Downtown Association, the World Conference on Injury Prevention and Safety Promotion, Excellence in Paediatrics International Conference, etc. (Excel-london.co.uk 2012). Also, the London & Partners Associations team offers a range of bespoke tools, including a free London Associations Directory, a bi-annual association e-newsletter, and marketing toolkit (Excel-london.co.uk 2012). Business Mix An assessment of the destination’s business mix, and its competitors within the national and international marketplace. What is the global brand recognition of London as business tourism destination and how it is created. Which practical activities does the destination conduct to increase its profile in the industry a. Promotion: like advertising, word of mouth, press etc b. Promotional message: The message that the event delivers about the host location. c. Audience: The nature and size of the event audience. d. Brand alignment: If the event is in keeping with the brand image of the destination, how it enhances or aligns with the desired image and values of the host location. e. Marketing alignment: How promotional strategies for the event support the marketing objectives of the host location. f. Areas of Expertise: How the event may raise or create awareness of NSW expertise e.g. agriculture, wine making g. Media Impact: The potential for domestic and international media coverage. the main concern of the event was to raise the brand awareness and increase the brand activity. Key Stakeholders and partners There can be identified three major categories of stakeholders in tourism destination, including: tourists, industries, and hosts (Anuar et al 2012). These categories can be referred to business sectors as well. Stakeholders in the tourism industry play an important role in the overall economy of the country as they create opportunities for employment, business, foreign currency exchange and income through provision of transportation, food and beverages, and accommodation services (Anuar et al 2012). Future Challenges One of the challenges that London is facing relates to the city’s roads. Demand for road usage significantly exceeds supply. The city will have to reduce demand for car usage or it will face increased congestion in the city in a result of London’s rising population (Begg 2013). Lack of road capacity in East London also can be a significant challenge in the future as the chronic lack of road capacity across the Thames is a hot spot for population growth and future employment (Begg 2013). Another challenge which London is facing relates to the increased competition in the sector of international business travel. Thus, for example, the Middle East international airports (especially Dubai, Doha) become more active on the international arena and are increasingly challenging London’s status of a global transportation hub (Key Note 2014). International destination such as Shanghai and Mumbai are also recognized as serious competitors to London in term of global services (Europe Economics 2008). Future Opportunities In the short-term perspective the Business Travel Show can bring significant opportunities for London as this event is the primary exhibition within Europe with approximately 6,000 of attendees (comprised of bookers and corporate travel buyers) and 200 suppliers from innovative start-ups and global travel brand from within the industry (Key Note 2014). The event will take place in the Grand Hall Olympia in London in February 2015. In the middle/long-term perspective London as business tourism destination faces some other significant opportunities. One of these opportunities refer to the construction of the high-speed railway line between London Euston, the English Midlands, North West England, Yorkshire, and potentially North East England and the central belt of Scotland (Key Note 2014, 62). The first phase of construction between London and Birmingham has been already approved and the opening date is planned for 2026 (Key Note 2014). This high-speed railway line will enable business travelers to reduce travel time and therefore money, as well as enable greater business and tourism opportunities within a Great Britain due to better connection of the regions in the country (Key Note 2014). Simplified Air Passenger Duty tax, which was enacted in March 2014, has resulted in removing of the two highest bands for long-distance air travelling. This policy is expected to bring some opportunities as it will encourage intercontinental business travel from and to the UK in result of reduced price of long-haul flights. London, being a central hub connecting final destinations should also benefit from this initiative (Key Note 2014). One more opportunity related to tax reduction is cut of corporation tax to 20% by 2015 also will contribute to business tourism development in London. The new tax rate will become more attractive for international companies, encouraging them to expand business in the UK, and London particularly (Key Note 2014). Conclusion and Recommendations In order to avoid increased congestion on the roads, it is recommended to introduce policies related to active traffic management and travel demand management (Begg 2013). Appendix Table 1. The major conference venues for associations in London Conference venue Total meeting space area Event spaces Max # of delegates Hilton London Metropole 4,873m² 13 1600 Novotel London West 6,442m² 18 3000 Lancaster London 3,176m² 15 1500 Novotel London ExCeL 482.9m² 14 80 Central Hall Westminster 3,109m² 20 2160 The Queen Elizabeth II Conference Centre 7,511m² 17 1300 ExCeL London 112,686m² 10 3000 References: Anuar, A., Ahmad, H., Jusoh, H. and Hussain, M. (2012). Understanding the role of stakeholder in the formation of tourist friendly destination concept. Journal of Management and Sustainability, 2(2), p.69. Begg, D. (2013). London’s transport: progress and future challenges (1st ed.). Siemens. Retrieved from http://www.siemens.co.uk/pool/about_us/cities/world-class-tfl-report.pdf City of London,. (2010). The City of London: a global destination 2010/13 (1st ed.). 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THE COMPETITIVENESS OF LONDON – FUTURE CHALLENGES FROM EMERGING CITIES (1st ed.). Retrieved from http://www.londonchamber.co.uk/DocImages/3493.pdf Future of London,. (2011). Future of London in 2014 Prospectus (1st ed.). Retrieved from http://www.futureoflondon.org.uk/futureoflondon/wp-content/uploads/downloads/2014/03/Propsectus-2014-web.pdf International Association Meeting Market. (2012) Country & city rankings 2012 (1st ed., p. 29). Retrieved from http://www.iccaworld.com/dcps/doc.cfm?docid=1604 Key Note,. (2014). Business Travel 2014. Market Report 2014, 8th ed. Londonandpartners.com,. (2013). London & Partners reveals new Travel Trade strategy. Retrieved 6 July 2014, from http://www.londonandpartners.com/media-centre/press-releases/2013/130510-london-partners-reveals-new-travel-trade-strategy Read More