A new global standard was set for convention centers when the ICC Sydney opened in December, bringing state-of-the-art construction, technology and diligent planning to the forefront of world-class venue designs. In the four months that the International Convention Center in Sydney has been operational, it’s already outpaced expectations and is on target to outgrow revenue projections, said ICC Sydney CEO Geoff Donaghy, who highlighted that the venue has bookings all the way out to 2026.
“The estimates were that the center would create $200 million per year,” he said. “Over 25 years, that equals $5 billion in Australian dollars. “The early indications are, and we measure this, that those numbers will be exceeded.”
The impressively large, $1.5 billion Aus. ($1.12 billion U.S.) convention center already has 170 events booked.
ICC Sydney officials and architects pride themselves that the venue can host three separated events at the same time, making the booking power of the facilities endless.
Three main buildings make up the ICC Sydney, which includes the ICC Sydney Theater, the exhibition space that has five exhibition halls and the convention center that hosts a number of events back to back or simultaneously.
In total, the ICC Sydney has 8,000 square meters (86,100 square feet) of meeting space, 35,000 sqm (114,829 sq. ft.) of exhibition space, a 5,000 sqm open air event deck, Australia’s largest grand ballroom and the 9,000-seat capacity ICC Sydney Theatre.
“I think the project exceeded all of our expectations,” said Bob Newman, president of AEG Facilities. “I think this project is going to redefine the industry in terms of functionality — the ability to accommodate exhibitions, conventions, corporate events and all varieties of public entertainment, all under one roof.”
ICC Sydney is managed by AEG Ogden, a division of AEG, which runs a variety of venues across Australia, Asia and the Middle East.
THE THREE YEAR DROUGHT
Imagine a major global hub without a convention center. That was Sydney’s reality for three years when the massive project that spans three blocks in the heart of downtown was being built.
“It took a very brave decision that Sydney would go without a convention center for three years,” Donaghy said. “Sydney had an existing convention center that had been operating for 30 years. There were a number of schemes to expand it.”
Ultimately, venue operators and the state government made the bold decision to construct a brand new facility that everyone hoped would become a global centerpiece and destination for the world’s top conferences.
Since the convention center opened in December, it’s hosted four international events, 17 exhibitions and 14 concerts.
“We’ve just finished two major medical conventions,” Donaghy said.
Accommodating attendees who fill that space is a priority for the venue, especially when it comes to connecting to the internet.
ICC Sydney’s technology was an important part of the entire project, and the expectation is that delegates and attendees will arrive with at least three devices that all require internet connections.
ECONOMIC IMPACT AND TIMELINESS
ICC Sydney is part of a larger $3.4 billion project to revitalize the Darling Harbour that includes a new 590-room hotel. The Sofitel Darling Harbour is currently being built adjacent to ICC Sydney and will open in October.
New residential and commercial development, along with a new pedestrian boulevard will connect the harbor waterfront to Sydney’s Central Station, which is a railway transit.
ICC Sydney is touted as smartly positioned within the epicenter.
“It’s location, in the heart of a vibrant capital market, in the heart of a growing hospitality district, steps from the waterfront, all make it unmatched on the global playing field,” Newman said.
Hotels surrounding ICC Sydney are running at peak levels, and another 2,000 hotel rooms currently are under construction, Donaghy said.
“That creates an enormous demand and success of room nights,” he added.
The spending power alone from conference guests has a huge economic footprint, and outpaces what tourists spend. Convention delegates spend four to five times more per day than the average tourist, Donaghy highlighted.
“The convention center sees only about eight to 10 percent of that spending. The rest is out in Sydney,” he said. “We like to point out that the convention center is the nexus between the visitor economy and the intel economy. We’re attracting very important events out of the city and out of Asia as well.”
In January, the venue hosted the Amway China Leadership Seminar 2017, bringing more than 2,000 attendees to the newly-opened convention center.
Another economic impact that can’t go overlooked is the number of jobs ICC Sydney has created — starting with the design and construction, all the way to the 1,500 people who currently work at the venue.
The facility has 300 full-time staff and roughly 1,200 part-time employees, and those figures will soon increase to 320 full-time and 1,800 part-time workers.
The food and beverage side benefits a different sector of the economy. The ICC Sydney buys the majority of its food and beverage directly from suppliers, not wholesalers. That means the convention center is buying seafood from local seafood suppliers, beef from local cattle farmers and wine from Australia’s robust wineries.
“We’re giving them surety of business and surety of payment,” Donaghy said. “We’ve ensured that 80 percent of our wine list comes from New South Wales.”
Food and beverage doesn’t just come from Sydney, but also from various regional areas across Australia.
Donaghy and other ICC Sydney officials have started the process of measuring the job creation with the help of local universities, he said.
COUNTRY COMETH
Global conventions are one thing, but high profile entertainment is another, and the ICC Sydney certainly caters to the glitz and glamour of the music industry.
Australia’s country heartthrob Keith Urban christened the ICC Sydney Theater on Dec. 15 to a sold-out crowd.
“Being a good Aussie boy, that was very exciting,” Donaghy said.
The Dixie Chicks played at the theater in March, and the Zac Brown Band is on April’s lineup. Family friendly entertainment events also are planned at ICC Sydney throughout the year, including a Nickelodeon’s “Paw Patrol” — a live account of the kids show acted out on stage.
K.D. Lang will host a concert this summer, and American comedian Jerry Seinfeld also will entertain guests in August. The list goes on and on.
Sydney’s business community and the state government couldn’t be more pleased with the venues ongoing success so early out of the gate.
“Having the opportunity to build something brand new and bring the experience we have of 25 years in convention center development to the table is exciting,” Donaghy said, adding that he’s extremely proud to be part of something “on the edge of one of the most beautiful cities in the world.”