More international conferences, exhibitions and incentive groups could be attracted to the UK if greater public investment was made in new facilities and marketing support, commensurate with practices in competitor destinations.

This was the central message expressed at the Business Tourism session during the 1^st National UK Tourism Conference held at the QEII Centre in London on the 16^th March 2005.

Michael Hirst, Chairman of the Business Tourism Partnership, told delegates that the sector, worth £18 billion and currently accounting for around 25% of all tourism expenditures and 30% of all inbound earnings, was predicted to grow at a faster rate than any other tourism sector over the next five years.

But he warned that these forecasts could be at risk if more support was not forthcoming and a number of adverse trends, including the reduction in numbers of conferences, the lack of truly international exhibitions and inward incentive groups, were not reversed.

He expressed concern with the level of resource allocated by VisitBritain to business tourism, said to be less than 5%, and the imminent closure of the DTI’s Business Service Unit, which co-ordinates activity for the sector.

Gerry Acher, Chairman of the Mayoral Commission for a London International Convention Centre, said that the lack of a world class facility in London meant lost business, estimated at £27 million, but there was the potential to earn millions more for the UK.

He pointed to examples of competitor destinations being more aggressive in bidding for international events, with full ministerial and civic backing and offering generous subvention packages.

Andrew Morris, Chief Executive of Birmingham’s National Exhibition Group, said that strong partnerships with local authorities and regional agencies, utilising a mixture of funding sources was the way forward. He outlined development plans for the NEC Group which included greater marketing pro-activity, more direct ownership of events and a stronger management approach.

Despite increased optimism by incentive operators, Roger Harvey, Chairman of the Incentive Travel and Marketing Association, urged a rethink on the punitive level of UK costs arising out of the tax treatment on travel benefits.

He cited levels of over 80% being added to costs. Increasing demands made by procurement processes looking for higher returns from incentive programmes, were also squeezing operator margins.

It was agreed that the UK could sustain its position as a world class venue for business events, if measures were taken to increase investment in service levels, provide more value added packages, increase promotional support and resource public/private partnership funding for additional convention and exhibition facilities.