Appendix 2: Text of the document requesting expressions of interest

Request for Expressions of Interest for Growing New Zealand’s share of the International Business Events Market and Strengthening the National Network of Convention Venues

This Expression of Interest (EOI) has three parts:

• Part A relates to:
  • growing New Zealand’s share of the international business events market
  • strengthening the national network of convention venues

This part of the EOI seeks your views on generally what needs to be done to increase the number of business events held in New Zealand.

• Part B relates to the establishment of an international-standard national convention and exhibition centre.

This part of the EOI is to identify sites of suitable size in an appropriate location that could be developed into an international-standard convention and exhibition centre.

• Part C relates to the expansion of existing convention and exhibition centre(s).

The purpose of Part C of this EOI is to identify other locations in New Zealand that have existing centres with expansion plans that might be considering seeking government support (financial or otherwise).

Background

New Zealand has a low share of the international conference market. There are approximately 15,000 non-government international association conferences that are held in a variety of venues around the world on a regular basis. Over 7,400 of these conferences were held in 2008. Only 38 of them occurred in New Zealand. This market is growing considerably – particularly in Asia.

New Zealand’s current weakness arises from a combination of venue scale, quality and functionality as well as sub-optimal international marketing and promotion of ourselves overseas as a conference destination.

New Zealand does however, have strengths such as a strong national brand and we are seen as a safe and unique destination. Therefore the government believes that New Zealand should be able to hold more business events than it does currently.

Business events, which include meetings, incentives, conferences, conventions and exhibitions, bring more dollars to New Zealand. It is estimated that a conference delegate will spend five times more than the average visitor to New Zealand. Their visits often include pre and post conference travel to all parts of the country, they will also often bring their partners with them, and some return at a later date for additional leisure travel. Business events have the potential to deliver a number of other benefits to the economy, such as increased knowledge transfer, increased inward investment and the fostering of commercial linkages between international and New Zealand companies, and increasing shoulder and off-season visitor arrivals.

Therefore Ministry of Economic Development (MED) is very interested in hearing a wide range of views about how to increase the number and size of business events that take place in New Zealand, including what elements of current arrangements need to improve in order for the country to be more competitive on the world stage.

Instructions

Respondents may choose to address:

• Part A only or
• Part A and Part B or
• Part A and Part C.

Part A

All responses to Part A can be submitted via email to: [email protected]

Please have the following in the subject line of the email “Feedback on Growing New Zealand’s share of the international business events market and strengthening the national network if conventions venues.”

Please ensure that your comments are emailed on or before 5pm on the 18 June 2010

Parts B & C

Information supplied in Parts B and C of the EOI may be used to compile a short-list of respondents from whom further information (such as a Request for Proposal) may be sought. Those who are not included on the short-list will be advised of that fact. MED also reserves the right to enter into direct negotiations with a respondent to PART B and/or one or more respondents to PART C based solely on the information provided in their EOI.

Two hard copies and one electronic copy of the completed responses to Part B or Part C are to be enclosed in a sealed envelope marked “Expression of Interest – Growing New Zealand’s share of the international business events market and strengthening the national network of convention venues” and is to be delivered to:

[name],
Ministry of Economic Development
Level 6, Tower Building,
45 Queen St
Auckland

by 5pm on the closing date of Friday 18 June 2010. EOIs received after the closing time may not be considered.

Please provide with your EOI a nominated contact person, with phone, postal and email contact details.

Responses are to be in the English language and are to be signed by your duly authorised representative. As a guide your EOI should not be more than 10 A4 pages plus relevant appendices.

Please note that the documents attached to this request for EOI are confidential and are covered by copyright, but may be copied to the extent necessary to prepare a response to this request for EOI. The information contained in your response will be treated similarly.

The issue of and response to this EOI does not create any obligation on MED to enter into any commitment to purchase any particular goods or services or enter into any other process or arrangement with any respondent.

Any questions on this EOI are to be in writing and sent to [name] either by facsimile (09) 985 4849, Attention: [name] or e-mail [name]@med.govt.nz

Questions of interest and importance will be documented, together with a reply on the GETS web-site. This will include notification of any errors and omissions identified and any new information provided.

[signature]

[name]
Director

Attachment: Appendix 1: International Convention and Exhibition Centre: Feasibility study summary and supplementary research report

PART A –

Growing New Zealand’s share of the international business events market and strengthening the national network of convention venues

MED recognises that significantly increasing New Zealand’s reputation as a destination of choice for business events means doing more than building additional physical infrastructure. This part of the EOI seeks your views on generally what needs to be done to increase the number of business events held in New Zealand. MED are particularly interested in the effectiveness and collaborative nature of the existing network(s).

Your responses should address at least, the questions below. We would welcome also any other views you wish to express that may not be covered by the following questions.

Increasing Business Events

1. What in your view is currently working well in the business events sector?

2. What in your view are the main barriers to growing the business events sector in New Zealand now?

3. What, in priority order, are the changes you consider are needed to enhance New Zealand’s attractiveness as a destination for business events? For each proposed change please indicate who should take the lead.

Strengthening Existing Events Networks

1. How well does the current network of convention venues in New Zealand operate collaboratively to attract international events to New Zealand?

2. How might the current or any future network of convention venues enhance and grow the industry and increase the number of business events being attracted to New Zealand?

3. What national and international venue and marketing networks are you a member of currently?

The purpose of Part A is to inform the first stage of development of a national business events strategy. This strategy would clearly articulate a vision for growing business events in New Zealand and would include an agreed set of actions that can be taken on collaboratively by industry, local and central government and others in the sector. As this is only the first stage, MED will be consulting more broadly with industry during the ongoing development of the strategy.

Please email your responses to Part A to [email protected] with the following in the subject line: “Feedback on Growing New Zealand’s share of the international business events market and strengthening the national network if conventions venues” on or before 5pm on the 18 June 2010.

PART B - Specifications

Establishment of an International- Standard National Convention and Exhibition Centre for New Zealand

Request for Expressions of Interest

Overview

MED is seeking EOIs from interested parties for establishing an international-standard national convention and exhibition centre for New Zealand. As well as providing high-level descriptions of locations suitable for such a centre, the EOI should address alternative and creative funding options for the development and operation of the centre and how such a centre could enhance, and fit into, the national network of convention centres.

Intellectual Property

The Ministry of Economic Development has reserved a number of potential domain names for “New Zealand’s national convention and exhibition centre”. We have also taken steps to trademark a logo for use by such a venue.

2009 Feasibility Study

In 2009 a feasibility study was commissioned for the development of a new international-standard convention and exhibition centre by the Government and Auckland City Council. The general findings of that study (which assumed an Auckland location for the Centre) are relevant for locations throughout New Zealand, and are enclosed with this document (Appendix 1).

The feasibility study established that the international meetings market is large and growing and that New Zealand is losing valuable international conferences – and hence economic benefits –because of a lack of suitable facilities.

Conferences and conventions (and other business events) are also a source of high-yield shoulder and off-season visitor demand.

New Zealand has some capability for hosting small to medium sized international conferences. However, New Zealand faces increasingly significant constraints and disadvantages when compared to international facilities and locations, especially when compared to our closest competitor – Australia.

New Zealand is not currently competitive in international conferences of over 1000 delegates, which was the area of strongest growth in this market over the last 10 years. So, while organisers are eager to bring their conference to Australasia and the Asia-Pacific region, New Zealand is often passed by because it lacks an international standard facility of an appropriate scale.

An international-standard convention and exhibition centre is one that is purpose-built to provide high-class facilities for conferences, exhibitions and events. In order for the convention centre to maximise its economic impact and be competitive with the expanding capacities and capabilities of Australian and Asian venues, it must be capable of hosting conferences of 3500-5000 delegates, including associated activities such as exhibitions.

The feasibility study is clear about the factors that are needed to ensure such a venue is successful. Proximity to a critical mass of appropriate standard hotel rooms (predominantly four and five star) is the single most important attribute because of the convenience this provides conference organisers and delegates. Other success factors include the ease and frequency of international flight connections with the location, site access/egress, proximity to car parking, public transport and entertainment facilities (retail, hospitality). The report suggests that a CBD location is the most likely option for an international-standard convention centre.

When fully operational the feasibility study estimated a convention centre could attract almost 22,000 additional international visitors and more than 200,000 extra visitor days annually. This is likely to generate tourism-related expenditure of over $80 million per annum. There will also be other benefits such as improving shoulder and off-peak tourism, fostering commercial links between international and New Zealand businesses, and supporting innovation and knowledge transfer between international delegates and New Zealanders.

As a consequence of the positive results from the feasibility study process, the Government has decided to see what possibilities exist to establish an international convention and exhibition centre in New Zealand.

Information Required

Expressions of interest must address the following.

1. City information

Why you are recommending your suggested city as the best location for New Zealand’s international-standard convention and exhibition centre. Included with this should be information regarding the international reputation of the city and contextual information on what the city has to offer for business events attendees and international tourists, e.g. restaurants, retail and entertainment options plus other amenities and activities on offer.

Please provide specific information on the following:

• A list of hotels (3 to 5 star) and the number of hotel rooms within 10 minutes walk to the proposed site/location of a Centre.
• The retail, entertainment and restaurants that are within a 10 minute walk from any proposed site.
• The number of international airlines servicing the city’s airport. Plus the number of destinations these fly to and from and some information on the frequency of flights to international destinations.
• The number and frequency of domestic flights from around New Zealand to the city’s airport.
• Transport available from the nearest airport.
• The public transport options at the location.

2. Centre size and building attributes

To cater for large-scale conferences and events, the Centre must have a gross floor area (GFA) of approximately 27,000m2.

The Centre will need to meet current international expectations regarding structure, layout and technical facilities. Minimum approximate requirements relating to space include:

• Flexible flat floor exhibition space (6000m2)
• Plenary auditorium (4,500m2)
• Pre-function space (3,500m2)
• Additional flat floor space (6000m2)
• Break out rooms (2,600m2)
• Back of house (4,400m2)

To future proof a new Centre it would be ideal to have a site that can expand up to a GFA of approximately 33,000m2 as this would increase capacity to cater for conferences of up to 5000 delegates. The EOI must show whether or not the site suggested has this capacity.

3. Site information

Specific information on the proposed site for the Centre:

• Footprint – the size of the land available (if this is not same or bigger than the GFA above please include an explanation of how a new Centre could be accommodated within the footprint)
• Accessibility to the site, e.g. access for trucks for packing in and out of exhibitions; pedestrian access; disabled access, taxi / bus access etc.

4. Legal, regulatory, ownership

Please specify any legal, regulatory or ownership issues associated with the site that may affect feasibility of any future development. For example

• Is it an existing centre that can be expanded?
• Is the site clean i.e. ready for construction? If not what is required to clean the site?
• Are there any restrictions on using the land for a convention and exhibition centre?
• Who is the current owner of the site(s)?

5. Funding

Please provide creative ideas and suggestions on how the construction and operation of an international-standard national convention and exhibition centre could be funded. Options can include central government, local government and private sector funding options.

6. Additional information

As any new international convention and exhibition centre would be an addition to existing conference infrastructure in New Zealand, please provide your view on what role a new centre would play in the wider network of convention venues already operating in New Zealand, and how the existing network could be strengthened.

If you have undertaken any cost-benefit analysis relevant to the establishment of an international-standard convention and exhibition centre, please include that information.

Instruction

Two hard copies and one electronic copy of the completed responses to Part B are to be enclosed in a sealed envelope marked “Expression of Interest – Growing New Zealand’s share of the International business events market and strengthening the national network of convention venues” and is to be delivered to:

[name],
Ministry of Economic Development
Level 6, Tower Building,
45 Queen St
Auckland

by 5pm on the closing date of Friday 18 June 2010. EOIs received after the closing time may not be considered.

PART C - Specifications

Expansion of existing Convention and Exhibition Centre(s)

Request for Expressions of Interest

Overview

MED is seeking EOIs from parties who already have plans to expand their existing convention and exhibition facilities and who might be considering seeking government support (financial or otherwise). Specifically MED is interested in centres that do not propose to be New Zealand’s international-standard convention and exhibition centre but are significant venues in their own right with plans to expand in order to meet current and future demand.

Parties responding to Part C will also find the information contained in Appendix 1 useful.

Information Required

Expressions of interest must address the following.

1. Background

Information on the existing facilities and why the expansion is proposed. Please include any cost-benefit analysis that has been completed for the expanded facilities.

2. City information

Information regarding the international reputation of the city and contextual information on what the city has to offer for business events attendees and international tourists, e.g. restaurants, retail and entertainment options plus other amenities and activities on offer.

Please provide specific information on the following:

• A list of hotels (3 to 5 star) and the number of hotel rooms within 10 minutes walk to the proposed site/location of a Centre.
• The retail, and entertainment and restaurants that are within a 10 minute walk from any proposed site.
• The number of international airlines servicing the city’s airport. Plus the number of destinations these fly to and from and some information on the frequency of flights to international destinations.
• The number and frequency of domestic flights from around New Zealand to the city’s airport
• Transport available from the nearest airport

3. Outline of expansion plans

Information on the size, layout and building attributes of the expanded facilities, including Gross Floor Area (GFA) and size in metres squared of:

• Flexible flat floor exhibition space
• Plenary auditorium
• Pre-function space
• Any additional flat floor space
• Break out rooms
• Back of house

If plans have been developed for the expansion please include these. Please include the number of delegates the expanded facilities will be able to accommodate.

4. Legal, regulatory, ownership

Please specify any legal, regulatory or ownership issues associated with the site that may affect feasibility of any future expansion. For example

• Has the additional land required been secured?
• Are there any current restrictions on land use e.g. building height etc?

5. Funding

Please provide information on how the expansion will be funded. Include with this information if funding is likely to be requested from government.

6. Additional information

Include an explanation of how the expanded facilities will complement and enhance the national network of convention centres that already exist in New Zealand. Include with this how the expanded facility could complement an international-standard national convention and exhibition centre if it were to be developed.

Instruction

Two hard copies and one electronic copy of the completed responses to Part C are to be enclosed in a sealed envelope marked “Expression of Interest – Growing New Zealand’s share of the International business events market and strengthening the national network of convention venues” and is to be delivered to:

[name],
Ministry of Economic Development
Level 6, Tower Building,
45 Queen St
Auckland

by 5pm on the closing date of Friday 18 June 2010. EOIs received after the closing time may not be considered.