GUEST EDITORIAL by Max Mason

Conference centre could add $17m a year to city economy
The need for a conference centre in Tauranga has long been debated. Plans and negotiations to secure a deal with external partners have reached an advanced stage in the past but have been thwarted.
But why do we need one and how will it benefit our regional economy?
A big hotel and conference centre would primarily target the corporate conference market, which accounts for 44 per cent of the overall conference market. In the conference market, size is important. Conferences of up to 100 delegates are the most common and our city now can, and does, easily handle meetings and conferences this size, but can't accommodate most of the delegates in one place.
The next size of conference, of up to 500 delegates, generates nearly the same number of delegate days as those of up to 100. Typically these delegates stay longer and spend more. On average, a conference delegate is worth about $280 per day, hence the longer they stay, the better.
Conference organisers always look for new and innovative ways to make their conferences more memorable. A great new venue in a go-ahead new region would be of interest to the market. Our region has the appeal of a beautiful landscape that has not been over-used or over-visited and has reasonably good air and road access to the bigger cities.
Conferences need three main components. The first is flexible flat floor space with small breakout rooms and/or exhibition space. The second component is accommodation for the delegates within or near the conference space. Last is accessibility, and we are fortunate to be located close to Auckland with its large population, and with adequate air services to Wellington and Christchurch.
The economic impact is two-fold. Firstly is the obvious direct conference-activity income to the hotel, restaurants, transport operators, and conference support businesses. Delegates will also spend money in the retail sector, engage in tourist activities, and often end up staying over for weekends. As with the tourism industry, there is a significant trickle-down effect which benefits the local economy. The economic impact really starts looking impressive when one considers, say, a 500-person, three-day conference per week, at 40 weeks of the year. That's roughly $17 million per annum of additional income to our city generated from outside our region. And there are many other streams of revenue from such an operation.
A side benefit is the revenue impact in the low or shoulder season when accommodation providers are seeking bed nights.
The second economic impact lies in downstream activity. If the delegates have enjoyed their stay, our reputation is enhanced and they will often return with their families as holiday makers.
We need to encourage and support those in the City Centre Action Group and the Tauranga City Council who are working to secure partners, investors and resources to build a conference centre.