REPORT FROM ITALY—For all its magnetism, Italy is far from being a leading European magnet for meetings, incentives, conventions and exhibitions business, according to a recent report.
The International Congress and Convention Association ranked Italy sixth in the top 10 MICE countries after the United States, Germany, Spain, the United Kingdom and France based on the number of meetings in 2012.
That means, according to Mario Buscema, the new president of national events association FederCongressi & Eventi, that Germany hosted 66% more international events than Italy, Spain 41% more meetings, the U.K. 22% and France 20%. Rome came in just 21st place in the city rankings compared to top performers Vienna, Paris, Berlin, Madrid, Barcelona and London. Milan, with less than half of Rome’s 98 meetings, ranked 59.
“This data is unfortunately not unexpected considering a study by Rome’s University Tor Vergata (commissioned by Ega) shows the Vienna Convention Bureau has a budget of almost €20 million ($27 million),” Buscema said. “Copenhagen, Brussels, Lisbon and Paris have annual budgets exceeding €10 million ($13 million) and Amsterdam, Barcelona, Geneva, Lyon and Stockholm between €5 million ($6.5 million) and €10 million ($13 million). … Italy has none of this.”
Emma Aru, president and co-founder of leading Italian congress organizer Ega, said she was not surprised by the figures. The other MICE-strong European capitals know what they are about, she said, and have the necessary infrastructure.
She said hotels, conference venues and transportation in Italy all need a major lift.
“The meetings network is very simple—appropriate hotels in the right place, large convention centers adaptable to any type of event, and efficient transportation. Without all of these in place, we cannot host large events,” Aru said.
On top of that, she said, state support is critical.
For Daniela Baldelli, director of sales and marketing at Meliá Roma Aurelia Antica, local and national authorities are doing little to bolster the MICE potential—even if hotels are well equipped for such events. Baldelli’s hotel, for instance, has its own convention center and 16 meeting and banquet rooms, catering to up to 700 people.
“There are serious shortfalls with funding, infrastructure and promotion to equip Rome with the right infrastructure to capture the important MICE potential,” she said. “In addition, there is a big problem with organization. At a national level too, there is a lack of a coordinated effort or convention bureau to promote Italy’s events industry and assist operators.”
Within less than two years of its launch in early 2011, the much-needed state Convention Bureau Italia was liquidated. Without such a structure and appropriate funding, Baldelli said Italy cannot expect to get a better foothold in the global events market.
Cutting through red tape
Despite declarations from former Prime Minister Enrico Letta in December that Italy was out of the “emergency room,” the country’s two-year recession continues. In terms of economic competitiveness, Italy reportedly lags behind Spain, which is slowly recovering from its debt crisis.
According to STR Global, sister company of Hotel News Now, Italy’s average revenue per available room for 2013 was €77.74 ($104.85) compared to Spain’s €57.06 ($76.96). Average daily rate followed a similar pattern. Italy’s ADR for 2013 was at €127.11 ($171.43) compared to Spain’s €87.28 ($117.71). Italy’s 61.2% occupancy rate for the same time period lagged behind Spain (65.4%).
For many players, the Italian MICE industry is at a vital crossroads, between rampant disorganization and underfunding, and the will to realizing the huge potential that exists.
The long-delayed opening of Rome’s new congress center, “La Nuvola” (the cloud), is a symbol of that. Under construction since 2007, in the Mussolini-era “EUR” zone south of the city, it was due for completion last year.
Hit by constant setbacks in the form of bureaucratic obstacles, spiraling costs and budget problems, the new forecast opening date of 2015 for the center and its 5-star, 439-room hotel is looking slim, with €170 million ($230 million) still required to finish the remaining 24% of the project.
Municipal and federal government support for the MICE industry is a critical issue, especially amid economic woes, sources said.
At a forum in Rome in December, titled “Congress tourism as an engine for Rome,” Stefano Fiori, president of the tourism industry sector at industry confederation Unindustria, said MICE events in Italy are being undercut by economic conditions and government obstacles.
“It is true that we are living an internal crisis of the Italian system,” he said, “a crisis that has led to a decrease of major events in vital sectors such as the automotive and pharmaceutical industries.”
Congress tourism in Rome, Fiori said, is decreasing in favor of international leisure arrivals—which rose more than 5% in in 2013 to more than 12 million, according to Turismo Italia News—blaming a lack of organization, coordination and infrastructure.
“For years, there has been little coordination between Rome city and regional authorities,” Fiori said.
Buscema said budget allocation and commitment from public and private bodies is a big part of the dilemma. The potential goldmine that congress tourism represents requires heavy investment.
“If adequately supported, the meetings industry offers huge potential in terms of (gross domestic product) and employment,” he said.
Italy desperately needs those jobs, with its record jobless rates in December of 12.7% and youth unemployment of 41.6%, according to the National Institute of Statistics.
Making a commitment
“The EUR has a high concentration of conference locations and a wide range of quality hotels,” said Plinio Malucchi, director of Roma Convention Group, which manages the neighborhood’s existing convention center, the Palazzo dei Congressi. “It is well connected to two airports, high-speed rail networks, the historic center and served by three metro stops and many bus lines.”
EUR is also an historic area in its own right, he added, with many tourist attractions, shops and green spaces.
Still, the clear message from the meeting industry is that until Italy’s commitment matches or at least edges toward the nationally allocated budgets of leading MICE markets, it cannot expect great results.
Buscema is hoping to change that in coming months, with the gradual move toward re-launching a national convention bureau. A new MICE business coordination table, which will participate with Italy’s national tourism office ENIT, is a key first step. Regional tourism and industry bodies also will help a system in place.
“We definitely want this organization to get off the ground, because a true synergy between operators, public bodies and associations is the only possible way to concretely boost sector employment,” Buscema said.