1978-79 annual report [1979]

GEORGE L. SMITH, I1 GEORGIA WORLD CONGRESS CENTER
ANNUAL REPORT
FISCAL YEAR 1978-79

a o m L. SMr'ifI, I1
GEORGIA WORLD mGRESs cEm!m
ANNUAI; HEPOKr FISCAL YEAR 1978-1979

PAGE (S)

Introduction ....................................................... 1-2

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Financial Synopsis .F i r s t Three Years............................. 18-20

Event Attendance Andlysis .......................................... 21-25

S

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26-27 28-29

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30 30-31

=ST OF EXHIBITS:

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4 6 8 10 12-13 17 19
20 22-23 24-25
27 29

F i s c a l year 1978-79 nlarked carrpletia? of the second f u l l f i s c a l year of operation of the Georgia World Congress Center. M r e s i g n i f i c a n t l y , t h e f a c i l i t y operated during this, its second f u l l year, with NO APPROPRIATION OF STATE FUND!3 f o r operations. I n f a c t , we believe it p e r t i n a n t to note, an operating appropriation of $350,000 had previously been approved but w a s n o t expended and was returned t o the State treasury. This i s p a r t i c u l a r l y noteworthy i n view of o r i g i n a l projections which predicted five f u l l years of operation before financial s t a b i l i t y could
be anticipated.

Entering f i s c a l year 1978-79 a s a r e l a t i v e l y new and s t i l l sawwhat unproven f a c i l i t y in t h e national and i n t e r n a t i o n a l convention and trade show market, a primary objective operationally was t o s o l i d i f y a high position i n the marketplace and t o extend the c r e d i b i l i t y of our i n i t i a l reputation f o r providing f a c i l i t i e s and services unsurpassed in the industry. I t continues to be our b e l i e f t h e long range success of the f a c i l i t y w i l l ultimately depend upon repeat ccmmitrrrents by m j o r users. Thus, establishing a high l e v e l of c r e d i b i l i t y within the industry during t h e e a r l y years is of p a r m u n t importance. We believe the f i s c a l year has been most successful i n m e t i n g t h i s objective.

Financially, f i s c a l year 1978-79 imst a l s o be considered an ex-

ceptional year. State funds appropriated f o r operation of the f a c i l i t y

during its opening period i n f i s c a l year 1976-77 t o t a l e d $1,6811451.

F i s c a l year 1977-78, t h e f i r s t f u l l f i s c a l year of operation, required

an appropriation of $500,000 f o r operations. F i s c a l year 1978-79 required

- iJO APPRLlPRIATION of funds and t h e f a c i l i t y closed t h e year with a N- ET-PR3-
F - = ~ O N S OF $219,547. These operational p r o f i t s w i l l be c a r r i e d

forward t o f i s c a l year 1979-80 operations, c o n s e u u e n t l ~NO APPWPRIATION

for operating

was recpesteh f o r f i s c a l

1979~80.

Of g r e a t e r importance than operating p r o f i t o r l o s s is t h e economic

impact r e s u l t i n g f r a n a c t i v i t i e s generated by t h e Congress Center. A s t h i s

is the ultimate purpose f o r t h e f a c i l i t y , we are extrerrely pleased with t h e

r e s u l t s of f i s c a l 1978-79. Legitimate OW-OF-TOWN v i s i t o r s nmbered 393,585

f o r t h e year. These v i s i t o r s spent over 127 l!IL;LICSf NEW DOLLARS r e s u l t i n g

i n an ECONOpUC IMPACT of n e a r l y 287 M I L L I ~ D O ~ C. onsequently, t h e

S t a t e of Georgia r e a l i z e d w e l l O ~ ~ I- ~ I L ; L I -C-DXO- J

I N NEM TAX REVENUES.

We are much more pleased with econamic impact r e s u l t s than we are with

operational p r o f i t s as they are of f a r g r e a t e r significance.

The future of t h e Georgia World Congress Center continues t o look e x t r m l y brignt. Long range convention and t r a d e s h m camnitrents r e g o t i a t -
ed during f i s c a l year 1978-79 extend over t h e next f i f t e e n years. The events calendar through 1987 is nearing capacity f o r major event bookings. Current bwkings include an average of w e l l over 250 days per year of major events
f o r t h e next t e n years. By t h e very nature of t h e industry, s u r m r months of July and A u q s t p l u s t h e month of December have open periods. However, during tlle remaining m n t h s of the year in excess of 1 0 0 m o r events over
----the next ten years have been unable t o secure d a t e s i n &e congress Center
due t o e x i s t i n- g camnitmnts.

Our primary s h o r t range concern continues t o be i n f l a t i o n . Operating and personnel costs continue t o escalate a t twelve t o f i f t e e n percent per year. Y e t , our r a t e s t r u c t u r e s can not be increased accordingly i f w e are t o m i n t a i n our l e v e l of marketability. The Georgia World Congress Center Authority has approved an increase in r e n t a l r a t e s e f f e c t i v e January, 1980. This w i l l be t h e f i r s t increase in r e n t a l r a t e s since our opening in September, 1976. Even s o , by v i r t u e of major users predminantly making m m i m n t s years i n advance, our revised r a t e s w i l l take e f f e c t over an extended period of a t l e a s t one f u l l year.
Complete f a c t s and figures regarding the operations and a c t i v i t i e s of the Georgia PJorld Congress Center are offered i n t h i s annual report. We are e x t r a l y proud of t h e f a c i l i t y and look forward t o continued success in the future.

A s discussed b r i e f l y i n t h e i n t r d u c t i o n , t h e Georgia World Congress Center r e a l i z e d a n e t p r o f i t f r m o p e-r a t i o n s of $219,547.
I n c m p r o j e c t i o n s f o r the year were exceeded significantly rn the
c a t e g o r i e s of food service and e x h i b i t u t i l i t y services. H m v e r , there were short f a l l s , notably i n m projections f o r parking and Georgia Hall were not realized a s anticipated.
I n c m increases over projections w e r e due primarily t o inc r e a s e d b u s i n e s s , of which t l ~ eQ w y s l e r C o w r a t i o n new car introduct i o n show in August, 1978 w a s most s i g n i f i c a n t . This unusual and unanti-cipated event generated t r e n d o u s c a t e r i n g and r e n t a l revenues during the normally slm s m r period.
Parking f a c i l i t i e s were not constnicted a s quickly a s anticip a t e d , n o r have they r e s u l t e d i n t h e use a n t i c i p a t e d . The primary goals of providing exhibitor parking and truck marshalling f a c i l i t i e s f o r u s e r s of t h e Congress C ~ n t e rw e r e acccmplished s u c c e s s f u l l y . Howe v e r , q e n e r a l p u b l i c parking has k e n a d i s a p p i n m n t . LJe b e l i e v e
~~~~~~~~~~~~~ty f r m parkincj =eas t o entrance a r e a s i s t h e m j o r
deterrent.
Gcorgia H a l l i n c m was less t h a n p r o j e c t e d . Never-the-less, even though Georgia Hall has been s a w w h a t slow i n developing, we b e l i e v e major s t r i d e s were made d u r i n g t h e y e a r . We have re-organized our marketing s t a f f s t r u c t u r e and r e s p o n s i b i l i t i e s t o incorporate Georgia H a l l as an i n t e g r a l marketing f u n c t i o n r a t h e r than a s e p a r a t e f u n c t i o n a s was o r i g i n a l l y t h e case. R e s u l t s l a t e i n the f i s c a l y e a r have been encouraqing and we a n t i c i p a t e new p r o g r e s s i n t h i s a r z a .
Expenditures i n major c a t e g o r i e s were reasonably c l o s e t o p r o j e c t i o n s . The mst s i g n i f i c a n t v a r i a t i o n was i n t h e a r e a of kxrsonal s e r v i c e s . A savings o f saw $140,000 was r e a l i z e d i n pers o n a l s e r v i c e s . This m y be a t t r i b u t F c primarily t o extendinq unf i l l e d . p o s i t i o n s a s l o n g a s p o s s i b l e . &ant p o i i t i o n s were f i l l e d only a s needs b e c m critical.
E k h i b i t "A'' s m i z e s p r o j e c t e d incorI.le and exjjenditures canpared with a c t u a l i n m and e q e n d i t u r e s . You w i l l n o t e an o f f s e t t i n g income and expenditure iter;l of $362,000 f o r " r a i l r o a d option." The 1978-79 s u p p l e m n t a l budget included an a p p r o p r i a t i o n of t l ~ i s m u n t f o r t h e purpose of exercising an existing option t o purchase and remove t h e "Spring Track" r a i l s p u r which runs W d i a t e l y a c r o s s t h e entrace t o the Congress Center loadinq dock.