Subvention
role tourism plays, and will continue to
play, in showcasing what our great
country has to offer,” the former PM
noted.
Subvention – business enabler, or
bribery?
The aim of the Tourism Sector Deal is
to make conference facilities across the
UK, and not just in London, more
attractive to international organisers.
It operates on a philosophy of ‘if you
build it, they will come’ – which is very
much the opposite of subvention.
Subvention is the practice of
governments providing direct financial
incentives to international event
organisers, in order to attract them to
a country. It can come in many forms,
such as venue hire discounts,
contributions toward event costs, or
the provision of things such as dinners
or receptions.
Some take issue and call subvention
funding bribery, while others say it is
just another tool to attract and develop
business. Emma Nolan, an associate
lecturer at the University of Chichester,
is currently researching a PhD on the
subject. She explains: “Subvention is
widely used, but isn’t widely talked
about.
“That’s partly because destinations
don’t want to give away their sales
strategy, but more than that, I think it
has a bit of a bad reputation. It has been
compared to bribery by some industry
professionals, and there is a distaste for
it in places.
“I don’t think that’s necessarily true
– there’s a very good business case for
using subvention. The amount that is
usually offered is tiny when compared
to the economic benefits of hosting an
association conference.”
Nolan says that associations are
usually the beneficiaries of subvention
funding – organisations that are often
not run for profit, and struggle to meet
the large up-front costs of hosting an
international event. Subvention, she
says, can break down some of those
initial barriers to entry, and allow all
involved to reap the mutual economic
benefits. It can also break down
barriers to entry for those smaller or
less established destinations, which
need to provide a USP when bidding
for an event.
Is subvention levelling the playing
field in an increasingly crowded
market, or is it normalising bribery
inside a moral grey area? We’d love
to hear your thoughts on the topic
– you can get in touch at swood@
mashmedia.net
Above:
Emma Nolan, an
associate lecturer
at the University of
Chichester
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