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Caterer & Hotelkeeper Magazine

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London builds support for conference centre project

Angela Frewin
Wednesday 14 May 2003 16:03

Plans are afoot to give London the large-scale world-class convention centre it lacks.

Leading business tourism operators have persuaded the London Development Agency to champion the project, which will develop London's burgeoning business tourism market, following a forum on business tourism organised by the LDA and the London Tourist Board (LTB).

The forum agreed initiatives that would fit into London mayor Ken Livingstone's three-year tourism strategy.

Although it was felt London had some of the best facilities in the world for smaller conventions and meetings, its capacity for larger events was seen as limited. The capital's biggest venue, the Queen Elizabeth II Centre, can seat up to 1,070 people but it has been suggested that London needs a venue that can accommodate 5,000.

An LTB spokesman said a feasibility study would determine by the end of the year what size and type of facilities were needed.

The new development, which is likely to be a public-private partnership, will be located on a central brownfield site such as Battersea Power Station or the area behind Kings Cross station. The centre will also need good transport links and access to sufficient bed spaces.

The forum also agreed that extra funding should be given to the LTB by the end of the year to promote business tourism to key markets in the USA, UK and Europe and to research emerging markets such as China, India and Russia.

Business tourism in the UK and london

*  Figures from the Business Tourism Partnership show domestic business trips accounted for 14% of UK tourism in 2002 and 21% of tourism spending.

*  There were 19.1 million domestic business trips last year, against 18.4 million in 2001, and business travellers spent £4.4b.

*  Figures for in-bound travel in 2002 show business spend dropping below that of leisure visitors after rising to 31.7% of total tourism earnings in 2001.

*  In-bound business visits grew to 7.1 million last year from 6.8 million in 2001. Spend rose to £3.58b, below the overseas leisure spend of £3.75b.

*  The BTP predicts business travellers could represent as much as 45% of the total in-bound tourism spend by 2010.

*  Tourism generated earnings of £8.8b for London in 2001 and business tourism accounted for £3.1b or 35% of the total.

*  In 2001 international business travellers spent £160 a day.

*  Domestic business travellers spent £135 a day; UK leisure travellers limited their spend to £70 a day.

*  Key business sectors are conferences, trade fairs and incentive travel.

Source: Caterer & Hotelkeeper magazine, 15 - 21 May 2003

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