London’s 2012 Games were hailed as an unqualified success, but what about the much-touted knock-on effect for business in the capital?
IT TAKES A RARE DISPLAY of excellence to unite the famously cynical British public, but the 2012 Olympic Games managed just that. Prior fears of transport disruption, logistical issues and even the weather were silenced as London hosted arguably the greatest Games of all time. Building on this momentum, however, is potentially a bigger task still – and the meetings, incentives, conferences and exhibitions (MICE) industry has a significant role to play.
So what happens after the five-ring circus has left town? East London, in particular, is all too familiar with white elephant projects, after several well-meaning rejuvenation schemes have gone awry in past years. However, the hope is the Olympic legacy will be an exception, with innovative openings popping up across the capital, combined with a marketing campaign, serious financial investment and a push from the government.
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Business goes east
Initial problems for the capital come from adapting purpose-built sporting arenas into workable event platforms. “The Olympic venues themselves are extremely impressive, but there’s only a finite number of events that will suit a velodrome or a giant swimming pool,” says BCD M&I director Matthew Wall.
AOK Events managing director Alex Hewitt adds that the demand is there, but delays are holding the area back. “It’s disappointing at how few Olympic venues are open for business. Corporates are keen, but there’s very little to sell. If more Olympic sites were open, I think more clients would want to hold their London events in the east of the city instead of more centrally.”
Some corporates, however, have been quick on the draw. ATP Event Experts’ Neil Pace says his company is looking at an event in east London for a client at the moment. “I’m not sure whether this is as a direct result of the 2012 Olympics, but there’s no question that the excitement of last summer has helped raise awareness of an area that clients may not have considered in the past,” he says.
BCD’s Wall adds that he is interested in seeing how the area as a whole develops, rather than having a particular attraction to any specific venues. “In addition to hotel properties in the area we’ll be looking at how to utilise the Olympic connection to enhance the format and content of our events, as well as looking at transport links, accessibility and local amenities.”
Others are more pointed in their post-Games targets. Charlotte Saynor, director of Saynor Events, which works closely with Fremantle Media, singles out Grade I-listed 19th-century warehouse Tobacco Dock. “I’m itching to take a look at Tobacco Dock – it looks like a really interesting space and it’s always good to see unique, flexible venues with large capacities,” she says. The venue opened shortly after the Games, and was quick to attract the MICE market with a series of tailored events.
Meanwhile, ME London (Melia’s property in Covent Garden) and London’s tallest tower, The Shard, (which features a viewing area called The View from the Shard) have ranked high on event planners’ radar, including Hewitt’s and Saynor’s.
Pace says that London’s exposure during the Games has caused a global enthusiasm for recreating the Olympic buzz for delegates. “Using London venues means that although millions of people weren’t able to attend the Games themselves, the locations that we all saw on TV can inspire guests and help them to relive the buzz and excitement of last summer,” he says.
Follow the money
Government commitment to regeneration of the east looks set to bring the area a facelift to make it more appealing to the events market. The Greater London Authority’s draft budget is expected to be £267 million in 2013/14, before dropping to £117 million, then £83 million in the following two years. The opening and operations of the Queen Elizabeth Olympic Park is paramount in the government’s spending priority list, which is good news for the outdoor events market.
A number of new hotels are also under development, including the Art’otel London Hoxton and the Shangri-La in the Shard, as well as Citizen M at both the Tower of London and St Paul’s, and a Tokyo-style ‘pod’ hotel at the Trocadero in Piccadilly. In the East End there are plans for two new hotels at the site of the Excel, and the Sunborn Yacht hotel will sail back to Docklands in 2013.
A more unplanned boon for east London could come from the variety of creative ways in which its venues were used during the Games. BCD’s Matthew Wall says: “The various unusual corporate theming and usage has gone a long way in terms of getting people to take a second look at east London as a potential location for their event. History and heritage venues, such as Greenwich Park and the Old Royal Naval College, although always popular, have also received greater awareness against high-profile competitors such as the British Museum.”
He adds that anything in the Olympic Park area is extremely interesting for planners. “The Orbit structure, with the restaurant at the top, is an exciting venue, as is Forman’s Fish Island, which was used a lot for hospitality during the Games and has the Olympic Park itself as a backdrop. It would be amazing to hold an event in the Aquatic Centre or the Velodrome, but whether we can or not remains to be seen.”
Price matters
For event planners, visible investment in an area certainly helps place it on their radar, but pricing is still a vital consideration. “I’m not sure that the prestige of the Games will justify any premium on prices,” says Charlotte Saynor. “It’s a competitive market at the moment, and venues need to think long-term and keep their prices in line in order to attract and retain business.”
Wall says pricing can be a hindrance, but adds that higher rates in London compared to other European cities are to be expected. “London is – and always will be – a prestige destination that offers potential visitors so much more than they’ll get elsewhere, and there is definitely an afterglow for the east following the incredible success of the Games,” he says. “But economic conditions remain what they were before the Games, and it’s important for the area’s future that its prices remain competitive.”
This Olympic “afterglow” is leading venues to inflate prices slightly in the short term, according to ATP’s Pace. “There is a kind of ‘halo’ effect in London at the moment, which means that there is a high demand, so rates are staying fairly high – everyone wants a piece of the city. It will be interesting to see what happens when the Olympic Park opens again and what kind of rates they will be looking for,” he says.
Transport links
Of course, convenience is of vital importance for event delegates, many of whom have criticised venues in the east for not being easily accessible. Michael Hirst, chairman of trade association Business Visits & Events Partnership, says he wants business events to play a vital part in the legacy plans for east London and London as a whole, with transport being a crucial piece of the jigsaw.
Several schemes are in advanced stages, including Crossrail, a joint venture between Transport for London and the Department for Transport to build a new railway linking Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east, carrying 78,000 passengers per hour at peak times. Services are due to start in 2018 and the scheme is billed to create £10 billion of economic benefits to the country.
Around £6.5 billion has been invested in upgrading transport links, particularly for east London. On the London Underground, extra capacity has been introduced on the Jubilee and Central lines, with additional trains and signalling upgrades. There has been a 50 per cent increase in DLR capacity with line extensions to Woolwich and Stratford International, and the introduction of three-car trains.
The London Overground is also being transformed, with extended services on the East London and North London lines. The introduction of Emirates Air Line, the UK’s first ever urban cable car, is also providing a much-needed river crossing in east London, benefiting venues including the Excel.
Case study:Coca-Cola global retail gala
Guests: 200 international delegates attending the Olympics, hosted by the Coca-Cola Company
Agency: EC Travel
Event: Global Retail Gala dinner at the Banqueting House, Whitehall, August 2012
The brief: Coca-Cola invited its global key clients to London to attend the Olympics. EC Travel’s role was not only to look after all 5,000 Coca-Cola delegates during the Olympic period, but also to organise a gala dinner for 200 at Banqueting House.
EC travel’s solution: EC Travel set out to create an idyllic garden atmosphere, in keeping with the neo-classical style of the Banqueting House, designed by Inigo Jones. As guests walked through into the main entrance of the building’s Crypt, they were greeted with an ‘organic embankment’ rising from the floor, dressed with moss, bark, ivy, trees and seasonal plantings. When dinner was called, guests were led through ivy-dressed wrought-iron fencing and two large gates, creating the impression of walking into an estate garden. Stone plinths and urns with elaborate floral arrangements were positioned around the room. During dinner, singers performed arias from well-known operas, including La Bohème and Turandot.
Client’s verdict: “All of our guests thoroughly enjoyed the Olympic experience and left with a wonderful impression of London, the Games and Coca-Cola,” said Heather Puglisi, hospitality director for the global soft-drink brand. “This is in part due to the work that EC Travel did with us and the experiences they helped us create.”
Legacy impact: Coca-Cola’s event drew on London’s historic heritage and creative industries, according to EC Travel’s managing director Esme Cook. “The Games were a wonderful showcase for London that did us proud, and the Coca-Cola event was in keeping with this level of professionalism,” she said. “I’ve noticed that global clients have since expressed an increased interest in the capital.”