2005/06 Annual Report - Trade Centre Limited

DELIVERING great events
CREATING great impacts
SUPPORTING a great community
T R A D E
C E N T R E
L I M I T E D
A N N U A L
R E P O R T
05/06
Chairman’s message
A
few decades ago, people weren’t even thinking about
events-hosting as an industry or as an economic generator
for Nova Scotians. But in its two decades of existence,
Trade Centre Limited has built events-hosting into big business.
Naturally complementing our famous hospitality, our province
now welcomes the world—for sports, rock concerts with
international stars, professional conferences and more.
When the Halifax Metro Centre hosts a star like Hilary Duff,
when the World Trade and Convention Centre welcomes hundreds
of medical professionals for a major conference, when consumers
flock to Exhibition Park for the Ideal Home Show or when World
Trade Centre Atlantic Canada leads a group of Nova Scotian businesses on a trade mission, our whole province benefits. From tax
revenues to employment to pre- and post-event venue spending,
Trade Centre Limited’s activities leave an economic legacy. They
also leave a legacy of pride in our community and recognition that
the future holds promise, if we have the courage to seize our
opportunities. Our partners hail our ability to get the job done and
deliver what we promise. Thanks to the professionalism and
expertise of the team at Trade Centre Limited, we’re recognized as
one of Canada’s top events hosts.
But we can take nothing for granted. If we don’t commit
ourselves to staying in the
lead, we’ll fall behind.
That’s why Trade Centre
Limited and our stakeholders
must continue to grow. We
need new and expanded
facilities and we need them
now. Improved infrastructure will give us the means
to host more and bigger
events—be they in the
sports, cultural, business or
hospitality sectors—and to
correspondingly increase
our economic impacts.
Trade Centre Limited
HON. STEWART MCINNES, P.C., Q.C.
CHAIR OF THE TRADE CENTRE LIMITED BOARD
was created to benefit Nova
Scotians and with the right
tools, it will continue as an industry leader. We, the Board of
Directors of Trade Centre Limited, are very excited about the
potential this industry holds. Moreover, we’re confident that now is
the time to move together to a new level of events-hosting.
Board of Directors:
Front L–R: Frederick R. MacGillivray, President and CEO, Trade Centre Limited; Heather Foley Melvin, District Manager, Atlantic Canada, Mazda Canada Inc.; Peter Bryson, Q.C., Senior Partner,
McInnes Cooper Law Firm; Honourable Stewart McInnes, P.C., Q.C.; Sheila Fougere, Councillor, Halifax Regional Municipality; George Moody, Co-owner, Bargain Harleys; President/Owner,
Berwick Heights Golf Course; Russell Walker, Councillor, Halifax Regional Municipality
Back L–R: Gordon D. Gillis, Barrister and Solicitor; Wayne Crawley, Vice President, Corporate Strategy and Development, Emera; Len Goucher, Deputy Mayor, Halifax Regional Municipality;
His Worship Peter Kelly, Mayor, Halifax Regional Municipality; Kelliann Dean, Deputy Minister, Nova Scotia Department of Tourism, Culture and Heritage; Dave Chisholm, President,
Dave Chisholm Insurance & Consulting
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President ’s message
T
hese are turbulent times in the events-hosting industry, as
changing trends increase competition. And I am pleased to
report that Trade Centre Limited continues to rise to the
challenge. While looking to future opportunities, we’ve ensured
that our business is viable, serving the needs of stakeholders today
and for decades to come. In the past year, our facilities—the
World Trade and Convention Centre, Halifax Metro Centre and
Exhibition Park—welcomed 874,000 visitors for 673 events.
We maintain mutually beneficial relationships with partners
like the Halifax Mooseheads hockey team and the Royal Nova
Scotia International Tattoo—and we’re pleased to see the hard
work of the Tattoo team rewarded this year with the “Royal” designation, reflecting its prestige and international draw. We’ve also
built new relationships with bodies like the Gillett Entertainment
Group and the Canadian Football League, bringing exciting
opportunities to Nova Scotia.
We must keep our eyes on the horizon because our industry
is evolving. North American cities see the economic potential of
events hosting. TCL’s activities generated $165.8 million in user
expenditures and spin-off impacts this year. Our national
competitors want a slice of that business and they’re aggressively
pursuing it, with state-of-the-art facilities and bold marketing
campaigns. Our partners affirm that we’re industry leaders but
they also tell us that to host the biggest international conferences
and world-class events we need to increase our capabilities.
We must work with
our existing partners and
continue seeking new ones,
like-minded organizations
with whom we can strive for
a strong future. This year’s
International Microcredit
Summit is one such example.
It will have a major impact
on world poverty. And the
importance of the trade
facilitation done by World
Trade Centre Atlantic
Canada will have a positive
impact on Nova Scotian
businesses for years. The
FREDERICK R. MACGILLIVRAY
PRESIDENT AND CEO, TRADE CENTRE LIMITED
bid to host the 2014
Commonwealth Games is
another such opportunity. The 2008 World Senior Hockey
Championship, which will put the eyes of the sports world on
Nova Scotia, is another. Through these events, we can show the
world what we can do now and the heights we can reach with
renewed investment. By delivering great events, we truly do
create great impacts and build our community—for the betterment of all Nova Scotians.
TRADE CENTRE LIMITED – ATTENDANCE AND
ECONOMIC IMPACTS
Since 1995
Attendance
World Trade & Convention Centre
Halifax Metro Centre
Exhibition Park
Total Attendance
1,497,396
6,014,625
1,000,295
8,512,316
TRADE CENTRE LIMITED
ECONOMIC IMPACT HIGHLIGHTS 2005/06
(millions)
120
100
Direct Expenditures
(millions)
World Trade & Convention Centre
Halifax Metro Centre
Exhibition Park
$
$
$
465.2
340.4
94.9
80
Total Users Expenditures
$ 900.5
60
Incremental Expenditures
(millions)
World Trade & Convention Centre
Halifax Metro Centre
Exhibition Park
$
$
$
415.2
313.5
87.2
40
Total Value of Spin-off Expenditures
$ 815.9
20
14,285
$ 308.8
$
33.2
0
$100.2
$65.6
Total Economic Impacts
Employment (PY’s)
Additions to Household Income (millions)
Government Revenue (millions)
Direct
Expenditures
Incremental
Expenditures
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 3
Great events
“Halifax demonstrated the
requisite plans, vision and
strategy to successfully
represent Canada and to bring
the Commonwealth Games
home again. A key element was
their unique athlete-centred
approach and the strength of the
bid team itself.”
— Thomas Jones,
Commonwealth Games
Association of Canada
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S
ince our inception in 1984, Trade
Our in-house expertise and professional-
Centre Limited has had one over-
ism, matched with the variety of offerings
from our various business units,
arching goal: power-
allows a unique made-in-
ing growth in Nova
Scotia. Everything we do,
Nova Scotia approach to
all the events we host and
events hosting. It starts
all the spin-offs that come
with Events Halifax, a
from them are born of that
best-practice model now
mandate. Whether we’re
emulated
hosting a cultural event like
across the country. Events
the
Halifax coordinates and
Royal
Nova
Scotia
in
markets
International Tattoo, provid-
leads the efforts when we
ing home ice for the Halifax
bid to host major events.
We bid on nine major
Mooseheads, welcoming an
international
business
event
like
events this year, including the 2007
the
World Lacrosse Championship. And we
Convention Centre or seeing consumers
continue to support the bid for the 2014
gather for the Spring Home Show at
Commonwealth
Exhibition Park, we’re always focusing
opportunity for Halifax to reach the next
on growth. Economic growth—that’s the
level in events hosting.
Microcredit
Summit
2006
to
Games—an
exciting
Events Halifax also forged new part-
service we bring to Nova Scotia.
To that end, our mission is to become
nerships in 2005, working with the
the country’s best events destination and
Canadian Football League to bring the
we’re well on our way. This year, our
city’s first pro-football game to Huskies
facilities hosted 673 events, welcoming
Stadium in June. Touchdown Atlantic,
upwards of 874,000 attendees and gener-
featuring the Toronto Argonauts and
ating $165.8 million in economic activity
Hamilton Tiger-Cats, was a success, put-
for
ting Halifax and our capabilities in front
Nova
Scotians.
Trade
Centre
Limited’s role in this lucrative industry is
of a national television audience.
multi-layered. We host these events, but
Halifax Metro Centre is a hub of
long before a puck is dropped or a singer
events activity in the province and posted
takes the stage, we work hand-in-hand
another strong year. In the past year, it
with stakeholders at the local, national
hosted 149 event days and recorded
and international levels to make it all
$8.92 million in operating revenues,
happen and ultimately maximize the
exceeding budgets by 22%. This success
benefits for all of Nova Scotia.
springs from a renewed focus on concerts
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
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Great impacts
“As the largest show producer in
Atlantic Canada, we value our
relationship with Trade Centre
Limited. Its facilities and the
expertise of its team complement
what we do very well. And there’s
great potential for us both to
grow, to our mutual benefit.”
— Catherine MacNutt,
Master Promotions
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and live events. Last year, the
capabilities through the launch of
Metro
a new distinct business unit: Ticket
Centre
hosted
16
concerts, including sold-out
Atlantic. This expands Trade
concerts by Pearl Jam, 50 Cent
Centre’s ticketing capabilities by
and Hilary Duff.
Continuing Halifax’s love affair
with curling, Halifax Metro
allowing customers online purchasing
and the ability to print their own tickets.
The technology means easier
Centre hosted the Roar of the
access for customers, while
Rings Olympic Curling Trials
enabling our events to sell faster
in December 2005. Once
again, Halifax’s volunteers
played their part. The city’s deep pool
of dedicated volunteers exemplifies our
and more efficiently. It also
allows us to provide ticketing
services to other organizations and facilities across the province.
community spirit and shows Halifax’s
Exhibition Park is another established
commitment to hosting world-class events.
and successful events venue. Our long-
Our partnerships with organizations
standing partnership with industry
like the Gillett Entertainment Group
leader Master Promotions includes the
provide unprecedented opportunities.
Nova Scotia Ideal Homeshow, the Golf
Gillett enjoys the flexibility of the space
Atlantic Expo and the Halifax RV Show.
and the professionalism of our staff. In
This versatile venue continues to draw
return, it gets a venue where its events
new events business as well, for the first
can be economically successful. And we,
time hosting the We Love Our Children
in turn, are able to provide audiences
Family Expo, the Saltscapes Expo and
with the calibre of event that they
the PacaFiesta Show. The Maritime Fall
demand. Concert business will remain
Fair remains a signature event as well.
strong in the coming year, with Hilary
Overall, the venue notched 5% growth
Duff and new acts like the Dixie Chicks
in major-event attendance last year.
making their Halifax debut.
Meetings and conventions remain one
Although the building is almost 30
of our most critical area of focus. Halifax
years old, Halifax Metro Centre remains
is one of the country’s most highly sought
a world-class venue. In the last year, it
conference venues, thanks to the legacy of
saw various upgrades, including a reno-
Maritime hospitality, our history and
vated and modernized mezzanine area
culture, the size and safety of the city, the
and the new home of the Nova Scotia
ease of doing business here and the com-
Sport Hall of Fame.
pactness of the downtown. Conventions
We’ve also expanded our Box Office
held in Halifax attract higher attendance.
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 7
A great
community
“Halifax has been an extraordinary location for Hockey
Canada by hosting World Juniors
and Women’s Worlds. Both
events brought World
Championships to a new level.
Hockey Canada will continue to
look at Halifax as a prime
location for future international
events with the 2008 Men’s World
Championships being the next
major event in the IIHF 100th
anniversary.”
— Bob Nicholson,
Hockey Canada
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Halifax offers value, with the Convention
for even the largest events. Thanks to
Centre’s costs in line or better than the
their talent, food and beverage accounts
industry standard.
for about 70% of the Convention
We
know
that
reonvations
and
Centre’s revenues.
planned expansions will create an 82.4%
Every event we host is a marketing
increase in rentable exhibit space across
opportunity. Consider the Motion Picture
Canada from 1996 to 2008.
Theatres Association of Canada, which
That’s the fastest growth in the indus-
brought 700 delegates here in April 2005.
try’s history, and it presents us with both
That particular event dovetails nicely with
a challenge and an opportunity. For many
Nova Scotia’s ambition to grow its motion
months of the year, Halifax’s events host-
picture industry. Other highlights included
ing venues already function at peak
the 4th World Conference on Breast
capacity. We are faced with more oppor-
Cancer in June (1,000 attendees) and the
tunities than we can accommodate—by
expanding our convention facilities, we
could welcome even more convention
business, bringing more spin-offs to Nova
Scotia. Our research shows that meeting
attendees spend time in Nova Scotia
pre- and post-event, when they eat at our
restaurants, visit villages around the
province, shop, tour and travel. From
kayaking companies on the South Shore
to bed and breakfasts in rural Cape
Breton, the whole province benefits.
Further enhancing our product is the
quality of our food and beverage offerings. Award-winning Chef Christophe
Luzeux and his team are noted for their
talent, producing four-star quality meals
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 9
Great events
“We have held multiple trade
missions and created a real
synergy between our operations.
The great benefit that will come
from this process is an accurate
understanding of business
opportunities for traders and
investors. I know that WTCAC
is making the world aware of
Halifax today and its openness to
the globe.”
– Mark Condon, South Carolina
World Trade Center
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NED
Competition
for
SPEBSQSA
“Barbershoppers” in September (2,000
attendees).
If we are to make the most of those
opportunities, we must continue growing
with the industry. We’ve made wise
investments to maximize the space we
have. Continuing to offer clients the level
of service they require, the Convention
Centre benefited from seven major
upgrade and renovation projects.
They ranged from new lighting and
audio systems to a complete revamping
of the Highland Level and significant
improvements to the ceiling in the Port
Royal Room, increasing the space’s technological capabilities. These proactive
changes all reflect our commitment to
making the best use of our infrastructure. Underscoring it all is the fact that
ultimately, Halifax will need to offer
Atlantic Canada. It connects its members
more space or risk falling behind in this
to a network of 276 World Trade Centres
dynamic industry. We have the people
in 80 countries around the globe. Its activ-
and the know-how but without the
ities include organizing trade missions—
space our customers demand, we’ll lose
most recently leading Nova Scotia compa-
business to other markets. Now is the
nies on successful forays to Chicago and
time for Trade Centre Limited and our
Cologne, Germany. It provides trade
stakeholders to lay the groundwork for
research and matchmaking services, while
new event space, so this industry can
the FITT Skills program gives members
continue to power Halifax’s growth for
the intelligence they need to thrive in inter-
decades to come.
national markets. The World Trade
Just as conventions bring the world to
Centre’s role could best be described as
Halifax, so too does World Trade Centre
“people who know people”—the people
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 11
Great impacts
“The success of TCL lies in its
ability to inspire stakeholders to
work together to execute largescale events in a smaller city
setting. We live in a most
proactive world and having an
idea is wonderful but assembling
and working with a team to bring
it to fruition is most important.”
— Donald K. Tarlton,
Donald K. Donald Entertainment
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who can help Nova Scotia companies
improve their knowledge about employee
succeed internationally.
rewards and recognition. To further
A downtown icon, the Office Tower
boost efficiencies, we reviewed job
remains one of the city’s most prestigious
responsibilities and launched a new
business addresses. It recorded $2.3
management structure for Trade Centre
million in revenues last year.
Limited.
As noted many times, people are the
At Trade Centre Limited, we’re very
soul of Trade Centre Limited’s activities.
aware of the need to cultivate and coop-
Our organization is very fortunate to
erate with partners—from the local to
enjoy low turn-over and a wealth of in-
international levels—as we demonstrate
house expertise, from senior management
how we all can reap the benefits of
through to our frontline staff. To continue
events-hosting. With a renewed focus on
that legacy, the Human Resources depart-
marketing, we have revised and updated
ment developed a new training program
the TCL brand, based on our strategic
to help supervisors and managers
intent and mandate, and crafted by
collaborative team vision. It’s all part of
the effort to educate the general public
and our stakeholders, ensuring they
understand the role we play in building
our shared community.
We work closely with many community
stakeholders, such as the Halifax Port
Authority, Destination Halifax, the Halifax
International
Airport
Authority,
the
Greater Halifax Partnership, the Halifax
Chamber
of
Commerce,
the
Hotel
Association of Nova Scotia, the Tourism
Industry Association of Nova Scotia and
Nova Scotia Business Inc. Consulting with
our stakeholders and reviewing our accomplishments in the past few years makes one
thing very clear: Trade Centre Limited,
and indeed, the entire events industry, has
reached a critical point. Halifax has a
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 13
“I’ve worked in venues all over
North America—I’ve had dealings
with every arena in Canada—and
I’ve never worked with people as
competent or professional. Our
mission is to produce a worldclass event and TCL and its staff
reputation as a high-calibre host, and
Events-hosting is a dynamic industry.
from new events like Touchdown
It’s growing fast, and “good enough” is
Atlantic to new technologies like those
not good enough. The reality is that if
utilized by Ticket Atlantic, we have con-
we’re not leading, we’re falling behind
clusively demonstrated our leadership
and not getting the most of the oppor-
and our willingness to stay at the fore-
tunities we’ve worked so hard to build.
front of the industry. Now, we must
We have the expertise, the reputation
commit to work together, invest in the
and the will to move forward. With the
future, rally support and make the
right resources, there is no limit to what
investments to expand and enhance what
we can achieve for our shareholders—
we can offer our customers.
the taxpayers of Nova Scotia.
buy into that.”
— Ian Fraser, Royal Nova Scotia
International Tattoo
TCL Management:
Front L–R: Frederick R. MacGillivray, President & CEO, TCL; Colette Curran, Vice President, Human Resources, TCL;
Dennis Mansour, General Manager, WTCC and Exhibition Park; Nina Kressler, Vice President, Sales and Marketing, TCL;
Monica Kennedy, Manager, Communications, TCL
Back L–R: Scott Ferguson, Executive Vice President, TCL; Darrell Hardy, Property Manager, TCL; Colin Mason,
Manager, Marketing Service, TCL; Don Larlee, Vice President, Finance and IT, TCL; Bill Aasvangen, Manager,
World Trade Centre Atlantic Canada
Back Missing: Ralph Williams, Manager, Operations, HMC; Frank Garner, Manager, Events Halifax
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FINANCIAL SUMMARY
TRADE CENTRE LIMITED
Five Year Highlights
Revenues
Income (Loss) before depreciation
and Provincial Subsidies
Convention Centre & Windows
Revenues
Meals served (cc)
Attendance (cc)
Event bookings (cc)
Office Tower
Rental Revenues
Average Occupancy
Rentable Sq. Ft.
World Trade Centre
Revenues
Members
Exhibition Park
Revenues
Attendance
Event days (2)
2006
Attendance
Event days
(1)
(2)
2005
2004
2003
2002
$
11,177,670
$
10,302,654
$
10,733,600
$
11,596,871
$
9,172,893
$
(702,002)
$
(456,025)
$
127,997
$
55,904
$
67,222
$
6,535,996
75,592
142,600
566
$
5,770,005
90,887
96,950
491
$
6,637,750
101,055
106,763
469
$
7,677,422
94,500
171,535
500
$
5,410,848
79,566
124,665
640
$
2,295,192
100.0%
116,190
$
2,275,780
99.8%
116,190
$
2,220,082
100%
116,190
$
2,177,787
99.8%
116,190
$
2,114,593
99.8%
116,190
$
703,279
225
$
523,429
225
$
325,303
225
$
128,088
225
$
92,418
225
$
1,610,473
131,168
267
$
1,713,427
178,208
288
$
1,550,465
240,168
275
$
1,613,574
286,907
193
$
1,558,984
118,063
142
HALIFAX METRO CENTRE
Five Year Highlights
Revenues
Income (loss) before
Special items and other
income (net)
Operating surplus (subsidy)
for the year
Year Ended March 31, 2006
2006
2005
2004
2003
2002
$
$
8,921,792
12,719
$
$
6,579,256
15,163
$
$
6,672,100
(114,175)
$
$
8,058,144
592,928
$
$
6,225,093
232,373
$
(10,000)
$
(10,676)
$
(10,162)
$
(290,073)
$
(229,660)
$
2,719
$
4,487
$
(124,337)
$
302,855
$
2,713
635,636
149
511,460
136
538,656
135
709,323
206
443,999
153
Note:(1) Does not include consumer/trade show attendance and non-paid admission events;
(2) Actual number of days facility in use by tenants, and/or does not include ice rentals
DELIVERING GREAT EVENTS | CREATING GREAT IMPACTS | SUPPORTING A GREAT COMMUNITY
PAGE 15
www.tradecentrelimited.com
P.O. Box 955, 1800 Argyle Street, Halifax, Nova Scotia B3J 2V9
Tel: 902.422.2020 • Fax: 902.422.2922
Divisions of Trade Centre Limited
www.wtcchalifax.com
www.halifaxmetrocentre.com
www.eventshalifax.com
www.wtcac.com
www.exhibitionpark.com
www.ticketatlantic.com