3. AGENDA
WELCOME
Paul Kehoe - Chairman, West Midlands Growth Company
COMPANY UPDATE
Neil Rami – Chief Executive, West Midlands Growth Company
AN AUDIENCE WITH THE WEST MIDLANDS MAYOR
Andy Street, CBE
6. WEST MIDLANDS GROWTH COMPANY
Attracting investment, jobs, visitors and businesses to the West
Midlands
“The West Midlands Growth Company (WMGC) will help to create new jobs, expand existing
businesses and attract new businesses and investment to the region, aligned to the ambitions set
out in the West Midlands Combined Authority (WMCA) Strategic EconomicPlan.”
Partners include:
▪ WMCA
▪ Local Authorities
▪ Local Enterprise Partnerships
▪ Universities
8. INTERNATIONAL CONTEXT
Performance overview
- Tumultuous year – Brexit, Trump,
European elections, China slow down
- UK performed strongly in the first half of
the year but Brexit had immediate effect on
FDI for greenfield investment
- 2016 - UK down 42% in greenfield capital
investment and 9% down in jobs*
Future forecasting
- impact of Brexit/Trump to gather pace,
nationally greenfield investment into the
UK is expected to decline*
- China – outbound investment, both FDI
and capital, may become increasingly
restrictive * Global Greenfield Investment trends,
fDi Intelligence Report 2017
9. 2016 - WM FDI PERFORMANCE
Increased jobs - Momentum in first half of the year
carried through, upward trend in job creation, up 16% on
2015 **
Top performance - West Midlands 2nd highest
performing region, SE leading
Key investments trends
– Distribution driven by Amazon (3/5 largest projects), largest
in Coventry
– IT driven by investment in cyber security and investment by
large US firms Google and Apple in London.
** Deloitte, 2016 Location Trends
Top 5 national sectors:
– Distribution
– IT
– Business Services
– Energy & Utilities
– Travel & Leisure
10. GREATER BIRMINGHAM PERFORMANCE
Strong interest in the region for capital
investment
– Qatar conference
– China mission
– MIPIM 2017
Challenging year for FDi
– Leading European markets impacted by Brexit,
projects put on hold
– Global uncertainty creating slower pace of
investment
– Key sectors Automotive, BPFS, Food and
Drink, Life Sciences
Three- year trend
– Past 3 years up vs previous 3 years
– 53% number of projects, 27% number of jobs
11. HIGHLIGHTS
Life Sciences - continued expansion of The
Binding Site
Automotive – Changan expansion, JLR at
Castle Bromwich, Tenneco Automotive,
continued growth of OEMs and supply chain,
IT and Creative Services – vibrancy of local
clusters enabling attraction of growing number
of companies – Lombard Risk, Advanced
Software and BBC
Tourism and Leisure – vital investment to the
city, key for employment and quality of life -
Bierkeller Entertainment Complex, on-going
growth of BHX and Jet2, launch of BCEC
12. FUTURE OUTLOOK
Targeting key geo markets – US, Canada,
Australia, India
Europe – seeds of growth, private sector moving at
a faster pace than politicians
HS2 – unique opportunity, working to maximise
opportunity
Sectoral targeting – BPFS, IT, Creative and
Digital, Life Sciences, Automotive
Continuing the media momentum - positive
national PR coverage on Greater Birmingham as an
investment destination. Leverage leading regional
spokespeople to target London based firms
14. RECORD BREAKING PERFORMANCE
33.5 33.8 34.0
37.2
38.1
39.1
30.0
31.0
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
2011 2012 2013 2014 2015 2016
Visitornumbers(millions)
Visitor numbers to Birmingham over the past 5
years (2011-2016)
15. SEGMENT GROWTH
11.9%
15.7%
23.5%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
SFR
Day visitors
Staying visitors
Percentage growth in types of visitors to
Birmingham over the past 5 years (2011-2016)
17. UK VISITOR PERCEPTIONS
74% 74%
66%
62%
58%
54%
51%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Percentage of respondents who agree each core city is a great
place to visit
51%
64%
60%
58%
51%
74% 74%
66%
62%
58%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Birmingham Manchester Liverpool Newcastle Leeds
Percentage of respondents who agree selected cities are a
great place to visit – 12 month comparison
2015 2016
Source: Perceptions survey 2016
18. MAXIMISING OUR OPPORTUNITIES
The WMCA area welcomed 72 million visitors in 2015 - more than double that of Greater Birmingham alone
48%
61%
83%
28%
7%
4%
25%
32%
13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Day visits Domestic staying visits International visits
Visits to the WMCA area in 2015
Greater Birmingham Black Country Coventry & Warwickshire
Greater
Birmingham
Black Country
Coventry &
Warwickshire
Total
Day visits
(millions)
31 18 16 65
Domestic staying
visits (millions)
3.3 0.4 1.7 5.4
International visits
(millions)
1.5 0.1 0.3 1.9
Total 35.8 18.5 18.0 72.2
19. 2017 PROMOTIONAL HIGHLIGHTS
Campaign competition entry - Over
17,000 entries over 4 week period
Easter Bank holiday hotel occupancy – Sunday
most popular with majority above 70% occupancy .
Digital metrics
- Direct traffic up 12% (compared to previous period)
- Page views increased by 10%
- Social media reach of 2.5 million
International exposure – TV Ad broadcast and
pitch branding coverage across more than 200
territories, across five continents with a potential
global reach of 2.1 billion
In stadium – LED advertising, replay screen and
programme advertising, expecting a reach of
120,000 spectators
22. COMMONWEALTH GAMES 2022
IN NUMBERS
• 1930 first of 20 Games
• 52 Commonwealth
members & 70 competing
nations
• 9 countries and 18 cities
have hosted
• England hosted twice
• 18 sports & 20 venues
• 11 days of competition
• 4300 athletes
• One billion TV audience
• 12,500 volunteers
23. SCOPE
• Host selection process
• Choosing our sports & venues
• Athletes Village & accommodation
• Transportation & security
• Culture & added value
• Vision & legacy
• Positioning & PR
• Costs and economic impact
24. “Through hosting the 2022 Commonwealth Games, we are
aiming to demonstrate the very best of Global Britain to the
world. We want to deliver a low cost, low risk but high quality
major multi-sport event that showcases the UK’s world-class
event hosting abilities and as a destination for business,
education and tourism. In addition to promoting elite and
grassroots sport, we want to bring a modern and innovative
approach to the hosting of these historic Games, that helps
redefine how multi-sport events can be delivered in a more
sustainable way. We will draw on: the infrastructure; people;
and the experience gained from hosting previous sports events;
and combine that with a broader set of ambitions aimed at
redefining the UK’s position on the world stage and the future
role of the Commonwealth. We also want to see the Games have
a lasting impact on its host city and the people that live there.”
Global
Low cost
Low risk
High quality
Hosting
Destination (Business,
Education & Tourism)
Modern
Innovative
Sustainable
Experience
UK positioning
Local impact
GOVERNMENT POSITION
25. OUR VISION
Birmingham: heart of the UK, soul of the
Commonwealth
Sitting at the heart of the UK, and standing for the diversity of
the Commonwealth, Birmingham is well positioned to attract
people to the Games and to ensure the benefits extend from the
city and region to the UK and the Commonwealth. Our vision is
‘Birmingham: heart of the UK, soul of the Commonwealth’.
35. To: Much improved economic performance
9,416
7,845
17,473
Birmingham Manchester Glasgow
Most startups outside
London
Fast productivity
growth
2.4%
6.8%
West Midlands UK
New businesses registered,
2016
GVA per head growth, 2016 vs.
2013
Tenneco Automotive Ltd Success 2016 - 2017 Q4 120.00
Changan UK R&D Centre Ltd - Birmingham Success 2016 - 2017 Q4 90.00
Jaguar Land Rover Success 2016 - 2017 Q4 263.00 India
Lombard risk 140 jobs, Advanced further 100, BBC,
The Bierkeller Entertainment Complex Success 2016 - 2017 Q3 300.00
Neil – point on Europe is that German companies are now re-energising projects as they see the UK as stepping stone to US, Commonwealth
We are commissioning external lead generation for foreign markets, but need to stress that partners are key referral point. Need this to continue
Birmingham’s visitor economy attracted a record 39.1 million visitors in 2016 - an increase of 950,000 visitors to the city on 2015. This represents a 2.4% increase over the last 12 months and a 16.6% increase over the last 5 years.
Over the last 5 years Birmingham has attracted growing numbers of overnight visitors. The total number of staying visitors has increased by 1 million since 2011 - a 23.5% increase. The additional overnight stays have helped to boost hotel occupancy and increase economic impact, and demonstrates that Birmingham is strengthening its role as a leisure and business tourism destination.
Birmingham and Manchester are the most popular cities to visit outside London. In 2016 some 74% of UK consumers agree that Birmingham is a great place to visit – which compares with a figure of 86% for all visitors to the city from our 2016 Visitor Survey. This puts Birmingham, alongside Manchester, as the strongest performing English Core City.
Birmingham saw by far the biggest improvement between 2015 and 2016. The proportion of consumers who agreed that Birmingham is a great place to visit rose by some 23 percentage points between 2015 and 2016 – by far the biggest improvement of all the core cities.
We will be covering a wider and larger area - the WMCA area welcomed more than 72 million visitors in 2015 – more than double the number in Greater Birmingham alone
While Birmingham accounts for more than 80% of international visits 13% are to Warwickshire (notably to the Shakespeare attractions)
Nearly a third of domestic staying visits are to Coventry & Warwickshire
Both the Black Country and Coventry and Warwickshire attract substantial numbers of day visits
Birmingham’s visitor economy attracted a record 39.1 million visitors in 2016 - an increase of 950,000 visitors to the city on 2015. This represents a 2.4% increase over the last 12 months and a 16.6% increase over the last 5 years.
2017 is Bigger in Birmingham campaign (March – April 2017)
Visit Birmingham and Birmingham City Council ran a consumer promotional campaign during March and April, building on the highly successful Christmas campaign to promote the key event and attraction highlights during the 2017 summer period and attracting visitors to the region from across the West and East Midlands
Included digital advertising and radio on air promotion
Campaign included a ‘Big Birmingham experience’ competition which received over 17,000 entries from across the West and East Midlands – the expected target for similar competitions is around 3,000 – demonstrating a positive response to people wanting to visit Birmingham during 2017
Whilst visitor numbers are yet to be recorded for 2017, the initial campaign results were very positive
ICC Champions Trophy 2017
Tournament came to Edgbaston during 1st-18th June, including India vs Pakistan and Eng vs Aus
Visit Birmingham and Birmingham City Council sponsored the tournament locally at Edgbaston
Activity included international exposure; tv ad broadcast showcasing the regional offer and pitch branding was shown globally across more than 200 territories and 5 continents, with a potential reach of 2.1 billion
Activity also included in stadium local advertising; LED panels and programme advertising, seen by over 120,000 spectators, encouraging visitors to ‘Support the Birmingham 2022 Bid’
Included Fan Park on first weekend of Tournament in Victoria Square
Coverage of the matches at Edgbaston included BBC Sport, expecting 25 million users per week and over 6.5 million social media followers
Expecting a total economic impact (direct and indirect spend) of over £21 million during the tournament
Birmingham’s visitor economy attracted a record 39.1 million visitors in 2016 - an increase of 950,000 visitors to the city on 2015. This represents a 2.4% increase over the last 12 months and a 16.6% increase over the last 5 years.
Gateway Partnership Project
VisitBritain, Birmingham Airport, The West Midlands Growth Company (Visit Birmingham) supported by a number of regional destinations organisations, Marketing Peak District and Derbyshire, Shakespeare England, have agreed to form a long term partnership
The Gateway partnership will leverage the current and future international connectivity of BHX and the appeal of the city and the surrounding region to key international audiences to drive economic benefit through increased business and leisure visitor numbers and spend, trade and investment and overseas student
Following in-depth research and insight, key international markets have been established including America, Australia and China
Partners will be developing a creative proposition which will underpin the Gateway partnership and delivering a range of international campaign activity over the next 3 years
Birmingham’s visitor economy attracted a record 39.1 million visitors in 2016 - an increase of 950,000 visitors to the city on 2015. This represents a 2.4% increase over the last 12 months and a 16.6% increase over the last 5 years.
Open Jaw ticketing
Visit Birmingham is also working in partnership with Visit Britain and London & Partners on a open ticketing project (a key part of Visit Britain’s strategy is developing bookable product across the region, targeting international visitors)
This is a project aiming to create flexible and bookable products within a new ticketing system, which will allow visitors to book accommodation, attractions/activities and travel; between Birmingham and London all in one easy package
Expecting to see an increase in visitors and spend to the region from the key markets GCC, China and US. The product will be measurable by how many tickets are sold across DMO’s and partners
This supports the Discover England Funding projects, with the development of tangible products to create ease for visitors looking to explore outside the capital with minimal planning processes needed
In year 2 & 3 we will look to create a marketing campaign to promote this new product across the targeted markets.