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MAYORAL COMMISSION GIVES GO AHEAD FOR LONDON ICC

www.meetpie.com, 21 October 2005
Capital centre 'feasible, justified, necessary and overdue'

The independent Commission set up by Mayor of London Ken Livingstone on whether London should have an International Convention Centre (ICC) has concluded its findings with an unequivocal "yes".

The report's main conclusions are that:

• There is a strong business case for an ICC in London
• That it should be in central London, within the central tourist district

The issue remains now for a central London site to be found for the new centre and for the necessary funding to be raised. Importantly the Commission has acknowledged that any centre would not be able to re-pay the initial capital cost of building the centre but should operate at a profit once open.

The Commission's report finds that creating a London ICC would cost some £250-£300 million to build, but would boost the UK economy by roughly £400 million a year and create at least 5,500 new jobs in London and elsewhere in the country.

As it will not be possible to fund the development entirely from the private sector, the development would need to be a partnership of some sort between public and private sectors. Once built it would not be a drain on public finance. Fully operational, if located in central London, the Commission says it would achieve a significant annual operating profit on the back of mature annual revenues exceeding £30 million.

Speaking after the Board of the London Development Agency, which has funded the Commission's study, gave its backing to the Commission's report, the chair of the Commission, Gerry Acher said: "There is no doubt in the Commission's view that an International Convention Centre for London is feasible, justified, necessary and overdue. This is the best opportunity that London has ever had to develop a world-beating International Convention Centre that will restore London to the top of the tree as a destination for major international events - the position it last held in the 1970s - with all the consequent benefits - financial, economic, employment and reputational - that will follow."

The subject of an International Convention Centre (ICC) for London is not new; there have been three feasibility studies in the last 15 years supported by the business groups London Chamber of Commerce and London First, and by the scientific and medical professions. These each found in favour of a centre but the projects never came to fruition.

When asked why this time would be any different, Acher replied: "In the past, the importance of the business tourism market has not been fully understood and previous projects lacked effective city leadership. Following this current study, the public sector has given its endorsement of the findings and the private sector is now expressing serious interest in participating in the development of a future London ICC and I hope this project will be come a reality. The Commission is of the unanimous view that the business case for developing an ICC in central London is clear and unambiguous. The next stages of the work will see the Commission being reconstituted to reflect the tasks of finalising the location options and the funding package and engaging the private sector in the project."

Acher added: "I would like to have a shortlist of two possible sites in six months' time and a decision in nine months. I see no reason why a London ICC shouldn't be fully operational in five years and certainly before the 2012 Olympics."

Mayor of London, Ken Livingstone, said: "As this report makes clear London needs an ICC which would further enhance our role as a global centre for business, bring thousands of new jobs to the capital and provide a lasting stimulus to our economy. An ICC would consolidate London's position as the best European city for business and one of the world's greatest financial and business capitals."

Gerry Acher added: "We have received very clear feedback from the world's leading professional conference organisers that a venue outside the central tourist area, whilst still attracting the same convention business, would not have anything like the attraction of a venue within the central area. The numbers involved highlight London's true potential. An ICC in London's central tourist district should be able to attract some 325,000 delegate-days each year, giving a similar performance to the Palais de Congres in Paris, which is ten minutes' walk from the Arc de Triomphe. These visitors would be a major boost to London's hotel, restaurant, theatre, shopping and tourism service industries." The Commission thought it unlikely that there would be any significant displacement to a new London ICC from other venues in London and the UK, and the little which does occur is likely to be only temporary. The increased marketing offered by a new London ICC should quickly grow the market in London and the UK to the extent that over the next 20 years additional facilities will be need, although pricing will remain extremely competitive worldwide.

The Commission's research concludes that the new ICC would host over 330 meetings and about 70 major banquets each year and should have a main auditorium capacity of between 3,000 and 5,000 people. www.londonicc.co.uk Meetpie.com is brought to you by CAT Publications, publishers of Meetings & Incentive Travel, Association Meetings International and The Worldwide Convention Centres Directory and organisers of The Meetings & Incentive Travel Show. Copyright Conference and Travel Publications Ltd. All rights reserved.