Well, there is definitely something in the air in New Zealand which happens every three years, and it is called an election! Now, normally I would not comment on politics but, as in all election years, nothing is sacred.
Recently, the New Zealand convention sector got dragged into a political debate around a government department which used an up-market lodge in the Central North Island as the venue for its conference, at a total cost of NZ$65,000 for 94 people over two days. The furore that raged in the media in New Zealand would have to be seen to be believed. The Opposition were ranting and raving that this was a waste of money and how dare this department meet in a “luxury lodge” whilst the poor people who were state housing tenants of the Housing Corporation of New Zealand could barely heat their houses. The incumbent government at first denied that there was a problem, and then eventually our Prime Minister had to concede that the decision to meet at this particular venue was inappropriate. The chief executive of the government department had to issue a public mea culpa and everybody got their hand smacked, and the poor old venue was left holding the baby.
I would have thought the bigger question for everybody would be what the outcome was for the $65,000 invested in this particular conference, and where the delegates actually slept or what they ate is largely irrelevant, as long as it conformed to the agreed budget before-hand which, to my understanding, it did. New Zealand sometimes shows a lack of maturity around a lot of things, and I think this is another case of the politics of envy and also a basic misunderstanding of what the convention industry both in New Zealand and Australia is all about.
Basically these retreat-type meetings have specific objectives in mind, and the manager of the organisation has made a decision that the outcomes are better achieved off-site than in the normal office environment. If the setting for the conference can be inspirational without being too over the top, depending on the organisation’s budget, then as long as the desired outcomes are achieved, the return on investment is valid. The whole essence of the convention industry is creating a tactile environment where people can meet and engage with each other, listen to invited speakers, and come up with innovative solutions to challenging problems that possibly could not be arrived at in their office environment. Further to this, as we all know, some of the best deals and bonding sessions are achieved over morning or afternoon tea, and in an increasingly sterile electronic communications environment, relationships and understanding of each other’s work colleagues, and the issues that challenge all of us, are more easily accommodated.
However, as I mentioned at the beginning of this column, it is election year and nothing is immune! I guess we should all expect a little bit of politics to intervene when normally these things would pass without comment.
The economic downturn that is taking place in many of the markets around the world is also having its effect on New Zealand. Projected GDP growth for the next 12 months is substantially lower than it has been in the past which is starting to have a little bit of an impact on corporate meetings, and anecdotal evidence from our members indicates that the corporate meeting market is slowing down somewhat. However, the association market is relatively “recession proof” as many associations, including our own, has to have a conference around the AGM. It is the one time that they can get together as an organisation to explore topics of mutual interest and re-energise ideas, as well as reaffirm the relationships between the membership of the organisation.
CINZ has recently finalised its new strategy which has taken into account current conditions, as well as putting greater emphasis on bidding for international association business and intends to build on the success of the Conference Assistance Programme, carried out in partnership with the New Zealand Government, to increase New Zealand’s market share of the lucrative international association convention market.
CINZ is also continuing its efforts in trying to secure the development of an international standard convention facility in Auckland, and being an eternal optimist, I am sure that in the not-too-distant future we will get sign-off on this. Although once again, being an election year we may have to wait until the end of the year before any concrete signals are given. However, indications to date have been very positive at both Central and Local Government levels. I must give  acknowledgment to the efforts of CINZ Chairman John Duncan, who has been tireless in his efforts in walking the corridors of power in both Auckland and Wellington to get this dream off the ground. If we eventually do get the convention centre, my recommendation is that it is called the “John Duncan International Convention Centre”!
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