Subvention
Business enabler, or bribery?
WHAT ARE GOVERNMENTS AROUND THE WORLD DOING TO HARNESS
THE ECONOMIC POWER OF THE MICE INDUSTRY – AND IS IT ALL LEGAL?
he meetings industry is an
increasingly competitive
market.
As the number of viable
venues and destinations goes up, so too
does the need to stand out from the
crowd. Many governments around the
world are beginning to recognise the
power of MICE as an economic
catalyst, bringing key industries and
people together. But what are
politicians and policy makers doing to
help harness this power, and attract
international meetings business?
In this article, CMW takes a look at
Subvention
has a bit of a
bad reputation.
It has been
compared to
bribery by
some industry
professionals.”
two very different methods. Firstly, we
break down the United Kingdom’s
recently announced Tourism Sector
Deal, which proposes to maintain the
country’s position as a top business
tourism destination through a
widespread overhaul of venues and
infrastructure.
Then, we examine the controversial
practice of subvention – in which
governments provide direct financial
incentives to organisers to bring their
events to a destination. Some call it
bribery, while others say it is a
legitimate sales tool that enables
business. There is surely much in
between.
Down Funder
The Australian Government
recently outlined changes to its
A$12m Business Events Bid Fund
Programme, to make smaller,
regional destinations also eligible
for federal funding.
Federal Tourism Minister
Simon Birmingham commented:
“Since its launch last year, the
fund has received 88 event bid
applications, with 23 of these
having been converted as new
business, worth more than
A$270m to the economy.
“The changes we have made
mean that the programme will
now offer greater assistance to
regional destinations, which often
bid for smaller international
events. We recognise these events
provide far-reaching economic
benefits to their local
communities, by filling hotel
rooms, restaurants and venues.”
Kind of a big deal
The UK’s Tourism Sector Deal was
announced by former Prime Minister
Theresa May in June, shortly before
she resigned and was replaced by Boris
Johnson.
The Deal outlines a long-term plan
to make the UK more attractive to
international business, with a
three-pronged course of action. Firstly,
it will add an additional 130,000 hotel
rooms across the UK by 2025, in order
to meet rising demands. Secondly, it
will support the creation of 10,000
tourism and hospitality
apprenticeships, in order to ensure
these facilities can be staffed. And
lastly, it outlines the creation of a new
Tourism Data Hub, which will allow
venues and businesses to pool their
digital resources, in order to better
target overseas visitors.
The UK Government also
announced a competition for venues to
apply for £250,000 of funding, in
order to improve their broadband
ISSUE 102
infrastructure. On top of this,
VisitBritain’s Business Events Growth
Programme received funding for
another year. The Programme
provides funding of up to £20,000 to
organisers and venues in the UK, to
help them support and bid for
international business events.
The UK’s first ever Tourism Sector
Deal, Mrs May said, was designed to
ensure that the UK continues to
innovate, boost connectivity and
economic productivity, and expand
career pathways.
“This deal recognises the important
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CONFERENCE & MEETINGS WORLD
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