New Zealand: Lacking Exhibit Space

Like Sydney and Melbourne in neighboring Australia, New Zealand needs more exhibition venues, according to those in the country's tradeshow business.

Gary Fitz-Roy, CEO of Australia-based Expertise Events, said New Zealand is behind Australia in its industry's size and scope (as well as in display materials and approach), but its growth has accelerated in the last few years. Despite the expansion of Auckland's ASB Showgrounds, he said, New Zealand venues generally are neither big enough nor in the right location.

Jo-Anne Kelleway, CEO of Australia-based Info Salons, added that New Zealand's exhibition industry may be small, but it's healthy. If this is to continue, she said, it has to improve its venues.

There are three main venues in Auckland, the country's largest city:

• ASB Showgrounds, with 10,300 square meters (110,800 square feet) of exhibit space
• Auckland Convention Centre at The Edge, 4,927 sq. m. (53,000 sq. ft.)
• Skycity Auckland Convention Centre, 4,550 sq. m. (49,000 sq. ft.)

The city of Christchurch offers two more:

• Christchurch Convention Centre, 6,849 sq. m. (73,700 sq. ft.)
• Westpac Centre, with 4,000 sq. m. (43,000 sq. ft.)

Rotorua, a tourist destination, recently opened the 5,000 sq. m. (53,800 sq. ft.) Energy Events Centre, and other venues are found in Hamilton and Wellington, the country's capital.

Dona White, president of the New Zealand Chapter of the Exhibition and Event Assn. of Australasia, and CEO of consumer show organizer North Port Events, said there's growing demand for venues. Particularly for larger events, the demand currently exceeds supply.

During the past five years, New Zealand has been building venues at a greater rate per capita than the United States or Australia, but most have been entertainment venues with capacity for small exhibitions, not multi-purpose facilities or exclusively exhibition venues, White said.

"The most noticeable lack is in Auckland," she added, pointing out that New Zealand's largest city and commercial hub, with a population of nearly 1.5 million, hosts 43 percent of the exhibition business.

With 4 million people in a country the size of Colorado, New Zealand has a reputation for early adoption of new, international trends. According to White, this contributes to flexible and innovative exhibitions that frequently set benchmarks for the wider Australasian and Pacific Rim industry.

Still, she said, even the most successful New Zealand exhibitions tend to be small: The average gross area for New Zealand consumer shows is 10,243 sq. m. (110,250 sq. ft.); for tradeshows, 4,752 sq. m. (51,100 sq. ft.); and for hybrids, 15,553 sq. m. (167,400 sq. ft.). Consumer shows represent nearly 70 percent of all exhibitions.

New Zealand tradeshows have stabilized — not grown — but existing events are holding their own, White said. Gifts, hospitality, engineering, building and design, and packaging are major tradeshow industries, with gift shows generally considered the largest, she added.

So, if this healthy industry is to grow, where will it go?

The ASB Showgrounds is the only venue able to cater to large shows, and it's already almost fully booked. The facility is undergoing a $20.9 million renovation and expansion that will increase its exhibit space to 17,000 sq. m. (183,000 sq. ft.). Stage 2, now complete, added a new building of 5,500 sq. m. (59,200 sq. ft.). Stage 3, starting in November, will bring the total space up to 18,000 sq. m. (193,700 sq. ft). The main exhibit hall will be 11,500 sq. m. (123,800 sq. ft.) when stage 3 is completed.

"There is a groundswell of interest to create a mega, multipurpose venue in Auckland's downtown, and the industry is hopeful that a new venue will be confirmed and constructed within the next five years," White said.

That idea in principle has the support of the Auckland City Council, but with many expensive projects and rising taxes, the council told supporters to look elsewhere for most of the $237.7 million cost. The council only has $79.2 million for international facilities, including a convention center.

Stu Freeman publishes Meeting Newz, and owns and produces Convene Auckland for the meetings business in the city. Freeman said, "Ironically, I struggle to put it on a flat floorspace in the city it promotes. It falls into a difficult mid-size category that is hard to place in the city."

He said a report commissioned by the Auckland City Council found that a national convention center would generate about $51.4 million, create thousands of jobs and attract a large number of international events.

"There is general agreement among the industry and politicians that we really need a dedicated convention center and that 2010 would be a good time to have it by," Freeman said. "But the ongoing issue is funding, and I still reckon it's 50-50 whether anything significant goes ahead."

The council did approve a 17,000 sq. m. (183,000 sq. ft.) marine events venue in Auckland's downtown waterfront area, but Freeman said it would not be suitable for large conferences needing breakout space, banquet facilities, kitchens and exhibit space in the same location.

With such small venues, New Zealand's exhibition industry is seeing the development of niche-focused events, White said. She added that it's also due to the growing sophistication of audiences and an overall drive for improved direct and targeted communication with customers.

New Zealand's only multinational player, dmg world media (N.Z.), runs about 60 percent of the country's exhibitions, including such flagship brands as the Home Show, Big Boys Toys and Gift Fairs.

However, the large number of small companies and single-show organizations is reflective of New Zealand, which has many cottage industries and companies employing less than 10 people, White said.

Medium to niche operators include North Port Events, with 12 permanent staff and consumer specialty shows such as The Food Show, Parent and Child and Health and Fitness. Single-show operators include the Tourism Industry Assn., with its annual travel shows, and the Marine Industry Assn., which produces boat shows. Fitz-Roy organizes a craft and quilt event in Hamilton that has been a consistent performer.

"I feel New Zealand has great potential," he said. "At this stage dmg is dominant, but more and more events are popping up which are probably thorns in their side."

As an example of the industry's health, White pointed to New Zealand's premier agribusiness event, Fieldays. Reflecting the country's rural and agricultural origins, it's the largest farm show in the Southern Hemisphere and in the top three in the world in size, she said. It's held in the Waikato region (90 minutes from Auckland), but similar, smaller events are held throughout New Zealand annually.

New Zealand was an affiliated member of EEAA for four years, but this year became an autonomous division of it. Kelleway said the EEAA changed its name from the Exhibition Assn. of Australia to reflect the participation of the New Zealand members.

It's an exciting time for the country's exhibition industry, White said, and with the refurbishment of the largest venue and hopes for a new facility in Auckland's central business district, things are looking up in New Zealand.