Project Overview

1
Market Analysis for a Proposed New
Convention/Events/Civic Center Public Workshop
April 21, 2005
2
Overview

• Introduction of Project Team Members
• KPMG
• Bohannan Huston Inc (BHI)
• Research Polling Inc. (RPI)
• Phase 1 Market Demand Analysis
• Completed Tasks
• Discussion of Preliminary Survey Results
• Next Steps
• Timing
• Questions/Open Discussion Related to the Project

3
Two-Phased Approach To the Project
Does Market Demand Exist?
Study 2 Site and Financial Analysis
Study 1 Market Demand Analysis
Yes
No
Summary of Findings and Work Sessions
4
Phase 1 Market Demand Analysis Completed Work
Tasks

• Reviewed Previous Studies
• Conducted Meetings/Interviews with
  Representatives of Various Groups in the
  Community
• City, CVB, NMSU, Area Hotels, Area Restaurants,
  Las Cruces Chamber of Commerce, Hispano Chamber
  of Commerce, White Sands Missile Range, MVEDA,
  Las Cruces Public Schools, Local Performing and
  Visual Arts groups
• Conducted a Public Workshop in February
• Issued a Status Report in March
• Profiled Community Attributes and Meetings
  Infrastructure
• Profiled Area Facilities/Current Meeting Activity

5
Phase 1 Market Demand Analysis Completed Work
Tasks (contd)

• Summarized Convention/Meetings Industry Trends
• Conducted Surveys
• Area Businesses
• State and Regional Meeting Planners
• Citizens of the City of Las Cruces
• Profiled Competitive/Comparable Facilities

6
Summary of Survey Results - Area Businesses

• Representatives of area businesses who were
  members of the Hispano Chamber of Commerce and/or
  the Greater Las Cruces Chamber of Commerce were
  surveyed
• 69 of respondents have previously met in Las
  Cruces within the last five years
• Hilton Las Cruces
• Best Western Mesilla Valley Inn
• Holiday Inn de Las Cruces (now the Ramada Palms)
• Of those respondents who have not previously met
  in Las Cruces, nearly 70 do not require meeting
  facilities on a regular basis
• Approximately 48 of respondents stated their
  organization has in-house meeting facilities
• Only 15 of respondents stating they had not held
  a meeting in Las Cruces within the last five
  years indicated this was due to inadequate
  existing local facilities
• The likelihood of hosting an event at the
  proposed new facility was higher with the
  development of a headquarters hotel (48) than
  without a headquarters hotel (38)

7
Summary of Survey Results - Area Businesses

• Important features required when selecting a
  facility include on-site parking, ample breakout
  rooms, high-speed Internet access, exhibit and
  ballroom space, complete meeting package
• Crucial attributes considered when selecting a
  location include easy access for attendees,
  price/value and an attractive destination
• 90 of respondents support (76 strongly support)
  development of the proposed new facility
• The majority of respondents (93) feel the
  development of the proposed new facility would be
  beneficial to Las Cruces
• When asked to rate the importance of various
  features or design elements that may be included
  in the proposed facility, exhibit, meeting and
  ballroom space were all considered equally
  important followed by a small auditorium
• The majority of businesses (93) are supportive
  of the proposed project if the lodgers tax was
  used to fund the project
• More than half (55) of businesses indicated that
  if the proposed facility is built, it should be
  operated by a private company, while 24
  indicated either a private company or the City
  should manage the facility

8
Summary of Survey Results Meeting Planners

• Representatives of approximately 150 State and
  regional associations were contacted via phone,
  fax and/or email to assess
• Interest in using the proposed facility in Las
  Cruces
• Facility specific needs
• Destination related needs
• Received responses from 41 groups 27 response
  rate
• Approximately 44 of the groups had previously
  met in Las Cruces
• Some groups establish a rotational pattern
• Approximately 27 of the groups do not rotate
  their event
• Nearly 64 of these groups only meet in
  Albuquerque
• These groups were excluded from future analysis

9
Summary of Survey Results Meeting Planners

• Of those groups that do rotate their location
• 60 of groups had previously met in Las Cruces
• 72 held their event at the Hilton
• Several groups mentioned that while Las Cruces
  had historically hosted their event, existing
  facilities in the City are becoming increasingly
  difficult to accommodate their event
• Reasons given not to return to Las Cruces
  included
• Facilities no longer sufficient to meet needs
• Cost of facilities
• Location/accessibility issues relative to other
  destinations in the State
• Respondents were asked if they would consider
  hosting their event in Las Cruces in the future
  under three scenarios
• No change to the inventory of meeting space
• Development of the proposed facility without a
  headquarters hotel
• Development of the proposed facility with a
  headquarters hotel

10
Summary of Survey Results Meeting Planners

• Two-thirds of respondents who have previously met
  in Las Cruces indicated an interest in returning
  under a no change scenario
• All of these respondents indicated some level of
  interest at a new facility with a HQ hotel
• Approximately 17 of respondents who had not
  previously met in Las Cruces would consider
  meeting there given its current inventory
• Positive responses increased to 25 under the new
  facility/no HQ hotel scenario and 42 under the
  new facility/headquarters hotel scenario

Groups That Have Previously Met in Las Cruces
Groups That Have Not Met in Las Cruces Before
11
Summary of Survey Results Citizens

• Research Polling, Inc. Presentation

12
Phase 1 Market Demand Analysis Next Steps

• Develop Recommended Building Program
• Prepare Estimate of Potential Utilization
• Summarize Findings in a Report
• Anticipated Timing - End of May
• Conduct Work Session with City Council

13
Questions/Discussion