December 8 marked AEG Facilities and the City of Los Angeles four-year anniversary of a successful partnership. The private and public entities have worked together to refresh the Los Angeles Convention Center (LACC), turning the facility into an economic driver for Downtown Los Angeles. The City’s original goals for AEG Facilities in taking over LACC management were to: generate an operational surplus each year, build a 10% budget reserve within 5 years, increase revenues, book more events – particularly citywide conventions. Since assuming management in December of 2013, AEG Facilities has exceeded all of the City’s goals and expectations with an operating surplus year after year, a healthy reserve of $7.1 million, reinvesting more than $40 million in building improvement and alteration projects, increasing citywide conventions, and the reimbursement of $7.7 million to the City of Los Angeles for the Department of Convention & Tourism Development (CTD) overhead since privatization, all while elevating LACC brand recognition, sustainability metrics, and community involvement projects.

“AEG Facilities’ best business practices along with the strategic planning and collaboration between the City of Los Angeles and the CTD have solidified the convention center as an important economic driver for Downtown Los Angeles. The past four years of partnership are commemorated with headline achievements and record-breaking years for the LACC,” said Doane Liu, Executive Director of the Los Angeles Department of Convention & Tourism Development (CTD).

Highlights of the four-year partnership include:
• Operational surplus year after year. Since taking over management in December 2013, AEG Facilities has generated a total operating profit of over $26.6 million.
• AEG Facilities has surpassed the City’s initial goal of building a financial reserve of $2.1 million in five years with $7.1 million at the conclusion of 2017.
• Reimbursed $7.7 million to the City of Los Angeles for the Department of Convention & Tourism Development (CTD) overhead.
• The improvement to the parking program by rethinking operational policies and procedures to improve efficiency, upgrading equipment in addition to establishing competitive rates. Results: an increase of over $3 million in annual revenue.
• Reinvested more than $40 million into the building completing over 50 capital and alteration projects including: 314 security cameras installed throughout the facility along with a modernized security command center, LED lighting retrofits, purchasing Energy Star appliances, adding water bottle filling stations, carpet replacement, upgraded landscaping and interior florals and furniture, and more.
• Establishing the Food and Beverage program “Taste of LA” with Levy Restaurants which features fresh, in-house prepared and baked products, strategic buying, increasing gross sales and flow through by $2.9 million annually.
• Revitalized relationship between the LACC and the LATCB for a unified goal of booking more citywide conventions, resulting in an increase in building occupancy every year and citywide bookings by 30 percent.
• Improved the sales and marketing strategy to develop fresh approach to sales (booking) and branding, which increased occupancy to 75 percent and client satisfaction rate to 94 percent.
• AEG Facilities increased LACC Security and employed a Guest Services department which has led to the improved safety of attendees and employees while increasing customer service.
• Enhancing the environmental sustainable practices by focusing on waste diversion, water reduction, and energy reduction. Achieving a 75 percent waste diversion rate this past calendar year 2016-2017 and becoming the first convention center of its size to receive LEED Gold recertification.
• As a Downtown stakeholder and the LACC values giving back to the community through internal community involvement programs such as the annual LACC Service Day at the Downtown Women’s Shelter, Earth Day, E-Waste Fair, and participation through other AEG sponsored programs such as the Read-to-a-Child program at 10th Street Elementary School in Downtown Los Angeles.

“We are very proud of what we’ve been able to accomplish as a collaborative team with the City and the CTD. As 2017 comes to a close, the LACC welcomes 2018, with a booked facility, more building improvement projects, and two large sustainable projects; the LACC rooftop garden and LACC solar panels,” said Brad Gessner, General Manager of the Los Angeles Convention Center and Senior Vice President for AEG Facilities.

The Professional Convention Management Association (PCMA) announced that Chief Operating Officer Sherrif Karamat will become the new CEO following the resignation of 12-year President and CEO Deborah Sexton, who has decided to move on and will step down after the upcoming Convening Leaders event in Nashville this January.

Sexton shared her decision with the Board of Directors at the September meeting. The Board voted unanimously to approve Karamat as the new CEO. This follows careful succession planning at PCMA, where Sexton and Karamat have worked closely together since 2005.

With more than 6,000 members and 50,000 subscribers, PCMA is the world’s largest network of business events strategists. Sexton has led PCMA for more than 12 years, furthering the organization’s dedication to inspiring the business events community with unparalleled educational programs, senior-level networking opportunities and must-attend events on a global scale.

“Deborah’s passion, boundless energy and her hunger to continuously innovate have resulted in tremendous growth and progress both for the organization and the industry,” said PCMA Board Chair

Mary Pat Heftman. “We could not be more grateful for her dedicated leadership, driving strategic plans that make PCMA the leader in our industry.”

In addition to her role as CEO of PCMA, Sexton has also served as president of the PCMA Education Foundation and publisher of PCMA’s Convene magazine. Under her leadership, and working in partnership with Karamat, PCMA more than doubled its membership and revenue, as well as expanded its global reach and cultivated dynamic leadership at the Board and Foundation levels. During her tenure, the Foundation has more than tripled its support for scholarships, research and education programs.

“It has been a privilege to serve PCMA,” said Sexton. “This organization continues to lead the way in the business events industry due to the dedication of our staff, the leadership of our Board and wisdom of our membership. Having worked alongside Sherrif for more than a decade, I have great confidence in the future of PCMA under his leadership.”

Karamat joined PCMA in October 2003 as vice president of sales and became COO of the organization in April 2008. Prior to PCMA, Karamat was vice president of business sales and services for the Toronto Convention and Visitors Association (Tourism Toronto) – a role in which he was very active as a PCMA member and volunteer, serving as president of the Canada East chapter.

“I am honored to succeed such an inspiring leader, and I’m appreciative of the Board’s vote of confidence,” said Karamat. “Because of the strong foundation that has been established by Deborah’s leadership, I know we will build upon this great platform.”

Karamat is already a key member of PCMA’s executive team. Working with Sexton, he has led the development of future planning for the organization. These plans include the expansion of PCMA as a global organization, advancing the content platforms of PCMA and adapting delivery channels for education as technology evolves.

“Working with Deborah, Sherrif has been an integral leader in the development of our new strategic plan and has a clear vision for where we want to take PCMA,” said Heftman. “It will be a very smooth transition for him, even though he has some big shoes to fill.”

Sexton will continue as CEO through the January 2018 Convening Leaders meeting in Nashville, TN. She is looking forward to what’s next and plans to share her experience with those that have a thirst for advancing the industry and investing in innovative and creative solutions. Sexton will remain in a strategic advisory role with PCMA through March. Karamat’s first day as CEO will be Jan. 19, 2018.

The Hong Kong Exhibition & Convention Industry Association (‘HKECIA’) released findings from the latest biennial Economic Impact Study gauging the contribution of Hong Kong’s exhibition industry to the city’s economy today. The study, covering the calendar year 2016, reveals that the exhibition industry contributed HK$52.9 billion (US$6.8 billion) to the local economy in 2016 in expenditure effects, equivalent to 2.1% of Hong Kong’s total GDP for the period. The Study also reaffirms the significant economic benefits of the exhibition industry to the city, with international exhibitors spent on average 75% more than general overnight tourists in 2016. At the same time, the exhibition industry generated the equivalent of 77,000 full-time jobs for people in Hong Kong.

Total expenditure generated by the exhibition industry remained at the same level as that of 2014 despite continuing global economic uncertainty. Of the HK$52.9 billion (US$6.8 billion) in total expenditure effects generated by the industry, just over half – HK$26.5 billion (US$3.4 billion) – represented direct expenditure made by visitors, exhibitors and organizers.

International exhibitors and exhibition visitors are high-value groups by comparison with general overnight tourists, according to the study. It shows that international exhibitors and exhibition visitors continued to significantly outspend general overnight tourists, on average spending around 75% and 66% more respectively in 2016. In fact, the difference in spending between these two groups and general overnight tourists increased by comparison with the difference reported in the previous three editions of the study. That spending benefits Hong Kong’s important retail, hotel, and F&B sectors the most.

From 2014 to 2016 the average spending of overnight tourists coming to Hong Kong declined quite significantly, by 17%. By contrast, the Study shows that the average spending of international exhibitors and exhibition visitors, while also declining, fell by less than that for overnight tourists, at 10% and 14% respectively. This reinforces the fact that business travelers attracted to Hong Kong by the exhibition industry are high-value individuals who are important contributors to the economy.

Hong Kong’s government also benefits directly and to a high level from the exhibition industry, according to the study. In 2016, the fiscal benefits contributed by the exhibition industry (e.g. the various taxes imposed by the government on exhibition activities and participants) amounted to HK$1.9 billion (US$244.2 million).

Stuart Bailey, Chairman of the HKECIA which commissioned the study, said, “This latest data comes as a timely reminder of the importance of the exhibition industry to Hong Kong, at a time when decisions need to be made about the support it is given going ahead. We did expect to see a drop in some areas as the global economy has not yet fully rebounded. The findings clearly show the massive benefits delivered at the levels of cash spending, employment opportunities, and spin-off effects for related businesses and supporting industries, and for government income. We must do our best to secure international exhibitors and exhibition visitors who are proven high spenders, and to ensure that Hong Kong continues to have the capabilities to attract and host large and significant exhibitions in the years to come.”

This was the seventh in the Economic Impact Study series, which have been carried out biennially since 2004. It was conducted by KPMG Advisory (Hong Kong) Limited, a respected independent research consultancy.

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The U.S. Green Building Council (USGBC) has awarded LEED Gold certification to the 3.9-million-square-foot Georgia World Congress Center (GWCC), the largest convention center in the world to achieve this status. LEED, an acronym for Leadership in Energy and Environmental Design, is an internationally-recognized green building certification awarded to facilities that employ sustainability strategies, including indoor air quality, energy and atmosphere, sustainable sites, water efficiency, material, and resources.

The GWCC initially earned LEED Silver certification in 2014, becoming the largest LEED certified convention center in the world. “Improving our performance from LEED Silver to Gold reflects our commitment to having better buildings, being better neighbors, and hosting better events,” said Tim Trefzer, LEED Accredited Professional and the GWCCA’s Corporate Social Responsibility Manager. “It’s a testament to our leadership’s vision to anchor the greenest convention, sports, and entertainment destination in the world.”

The GWCCA’s 220-acre downtown Atlanta campus strategically integrates solar power, electric vehicle charging stations, sustainable procurement practices, green cleaning, and a comprehensive waste diversion focus that includes food donation, composting, and recycling. An industry leader in sustainability, the Authority’s campus is the ideal setting to host the USGBC’s annual Greenbuild International Conference and Expo in 2019.

The Savannah International Trade & Convention Center (SITCC), managed by the GWCCA, recently obtained LEED Gold certification; also Mercedes-Benz Stadium, located on the GWCCA campus, recently announced its LEED Platinum certification.

“Stewardship, for our team, our community and the environment, is central to our business’ success and why we targeted taking our LEED certification from Silver to Gold two years before recertification was required,” said GWCCA Chief Operating Officer Kevin Duvall. “LEED isn’t the end of our journey. The GWCCA will continue to strategically drive sustainability into all aspects of our business, not only to mitigate risk and demonstrate leadership, but because it creates value for our employees and clients.”

The Authority’s sustainability highlights include:

• The GWCCA campus has diverted more than 14 million pounds of material from landfills since 2010 through recycling, composting, donations, and reuse.

• Energy-efficiency upgrades to the campus have resulted in a minimum of 39 percent savings on utilities.

• Plumbing fixture upgrades have resulted in saving 32 percent more water than required by building code.

• The 1.6 megawatts of solar panels on the GWCCA campus generate enough electricity to power 160 homes in Georgia annually.

• GWCCA staff has experienced a 48 percent reduction in traditional commuting through options such as public transportation, carpooling, walking/biking, and driving low-emitting, fuel-efficient vehicles.

“The Georgia World Congress Center achieving LEED Gold certification is more than simply the culmination of implementing sustainable practices. It represents a commitment by GWCCA towards making Atlanta a more resilient place to live work and play,” said Stephanie Stuckey, Chief Resilience Officer for the City of Atlanta. “Given the extraordinary importance of climate protection and the major impact of the building industry in that effort, GWCCA is leading our city by example.”