MICE LECTURE: INDUSTRY IN THE ASIA PACIFIC
The Size of the MICE Industry Globally and Regionally
The International Congress & Convention Association (ICCA) DATA Statistics Report
for the association market, presents a comprehensive analysis of trends in international
meetings. Every year, the new ICCA figures are anxiously awaited by destinations
around the world, all competing for a larger share of this lucrative market.
ICCA 2007 Report
The ICCA Data researchers have identified 6500 events that took place in 2007, a rise of
800 over 2006. The top two countries measured by the number of international
meetings organized in 2007 is exactly the same as in 2005 and 2006. USA still holds
more international association meetings than any other country with 467 meetings,
followed by Germany with 429 meetings. Spain is now third with 303 meetings while the
UK and France rank 4th and 5th respectively.
Vienna again tops the chart as the most popular city with 154 meeting as in 2007.
Singapore retains its 3rd position after Berlin; while Paris and Barcelona rank 4th and 5th
respetively.
62 % of the meetings took place in Europe, which is not surprising as 65% of the
International Associations are in Europe. Asia comes next with 16 % of the meeting.
Most of the meetings (39%) have an attendance of between 50 to 250.
Asia Pacific Region: Strengths & Weaknesses as a MICE Destination
Compared to the rest of the world, the Asia Pacific region has the following strengths as
MICE destinations.
The Asia Pacific countries:
are closer economies geographically, economically and culturally;
are competitively priced;
have the necessary infrastructure;
have service - the Asian hospitality
have new destination appeal such as Cambodia, Vietnam
have strong government support as government are now increasing becoming
more aware of the economic impact of marketing their countries
The weaknesses are:
overemphasis on infrastructure, the thinking is that all you need to get the
business is to have convention centres and over the past few years there
has been a proliferation of these in Hong Kong, Thailand, Malaysia etc.;
over-emphasis on mega events which may not be suitable to host;
relationship with international associations which are mostly based in Europe is
not well developed;
lack of research marketing; the development and management of a well
structured database is one essential tool for sales success.
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Key Advantages of Singapore as a MICE Destination
Singapore has certain advantages which makes it a desirable MICE destination.
Check out the visitsingapore.com website and list these advantages that makes it
an attractive place for meeting planners.
Singapore Track Records and Achievements
Singapore is the top Asian convention city for the past 20 over years. It is the only Asian
city aside from Seoul that holds 7th positions respectively, to be listed among ICCA's top
ten preferred convention cities for international association meetings. Based on the
ICCA's criteria, the association listed Singapore as having hosted 127 out of the more
than 5,000 conventions that the association tracked worldwide in 2006.
Some of Singapores other achievements as Business and MICE Destination found in
visitsingapore.com website. Log on and complete the blanks below.
The ________ _______________ city in the world for seven consecutive years
(Business Traveller Asia-Pacific 2007)
Asias _________ convention city (Union of International Associations 2006)
Most ___________ nation in the world. (A.T. Kearney/FOREIGN POLICY Magazine
Globalization Index 2005).
Best _________ city (TTG Travel Awards 2005).
Favourite
__________
city
for
5
consecutive
years
&
favourite
meeting/convention/exhibition _________ (TIME Readers Travel Choice 2005)
Worlds _______ top convention city & top convention city in Asia
(International Congress and Convention Association 2005)
The number of Association Meetings held in Singapore is more than 250 per year and
the average meeting size is 300 participants. The most type of meetings by subject
matter ranked from most to least are:
Medical most profitable
Engineering
Technology
Others
In 2003, Singapore hosted more than 500 conventions which generated an estimated
S$615 million in economic spin-offs. In 2004 its business visitor made up 26% of the
total visitors. Earnings from business travel have been more than S$2 billion and more
than S$3 billion.
Singapore ranks high in terms of vantage position, a pro-business environment and a
skilled workforce. Singapore is continually reinventing herself. Already equipped with
world-class convention and exhibition facilities and accommodation, event organisers
will have even more choices with the completion of the Marina Bay Sands by 2009 one
of two Integrated Resorts in Singapore. In addition Singapore is building a third terminal.
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Among some of the initiatives set up to boost business travel and the MICE industry are:
International Enterprise Hub initiative, which aims to facilitate and help foreign
government, trade and industrial bodies to set up their regional centres in Singapore.
Working together with the Singapore Workforce Development Agency, STB has set
up the Industry Skills & Training Council and SACEOS together with University of
Nevada, L.V. works is offering Workforce Skills Qualification Certificates.
Among the major conventions held in Singapore in the past were:
Ministerial Conference of the World Trade Organisation 1996 (3,500 pax)
Rotary International Convention 1999 (18,000 pax)
25th Societe Internationale dUrologie Congress 2000 (6000 pax)
SWIFT International Banking Operations Seminar 2003 (4,000 delegates)
7th Asia Pacific Life Insurance Congress 2003 (10,000 delegates)
Global Entrepolis 2003 (10,000 delegates)
In 2004 Singapore attracted 40 events including the Asia Pacific Low Cost Airline
Symposium. In all 60,000 visitors came and helped pump about S$50 million into the
economy.
In 2005 and 2006, Singapore saw three mega meetings with 40,000 visitors and
which gave the economy a boost of S$280 million. (extracted from The Straits Times
19 June 2005)
International Olympic Committees session - a four day event (5-9 July 2005)
with 5,000 dignitaries, delegates and journalists to see which of the five cities
Paris, London, Madrid, Moscow or New York will win the race to host the 2012
Olympics. It will pump S$40 million into the economy.
- a t wo-day charity concert to raise money for needy
Listen Live Concert
children worldwide with 20,000 tourists and 80 international stars spending about
S$30 million. The live concert will also be watched by 500 million viewers
worldwide giving Singapore invaluable media exposure.
IMF-World Bank meeting in 12-20 September 2006 a prestigious meeting
drawing top figures in world government and finance group of seven, group of
10 and group of 24 finance ministers. It will draw 16,000 delegates and visitors
including 1,800 journalists from 184 countries. 15,000 hotel rooms or 40% of total
hotel rooms be will occupied. It will pump in about S$40 million or about S$2500/in spending by each delegate. 8,000 local staff and volunteers will be involved,
some as tour guides to take VIP such as Georgre Soros for a meal of char kway
teow at a hawker centre. It will be bigger in scale than the WTO meeting in 1996
and will promote the city and hence its official billing Singapore 2006 Global
City World of Opportunities.
These three mega events are the direct result of its S$15 million Make It Singapore
campaign launched in 2003.
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Singapores Competitors
Singapores competitors are
Shanghai for major conventions & exhibitions
Seoul - for major conventions & exhibitions
Hong Kong - for major trade shows
Bangkok - for corporate meetings & incentive travels
Kuala Lumpur -- for corporate meetings & incentive travels
Australia
India up and coming
Our strength (forte) is that we:
have the software facilities
are efficient and professional service providers
speak the English Language
Our Competitors forte is that they
are cheaper
are strategically located too
have the hardware facilities too
Malaysia
Malaysia has no convention bureau. Parliament has approved the setting up of one in
1990 in and the first one will be set up in Sabah. It is home to ICCA (International
Congress & Convention Association). Has a professional organization MACEOS (the
counterpart of SACEOS Singapore Association of Convention and Exhibition
Organisers and Suppliers.) It has the infrastructure for example the Bukit Jalil Sports
Complex built for the 1998 Commonwealth Games, Sepang circuit for the Formula One
Races, the newly opened (June 2005) Kuala Lumpur Convention Centre (KLCC)
besides its Petronas Towers. The KLCC that costs S$240 million to built has already
lined up 160 major events up until 2010. Although not widely known as a convention
destination, Malaysia hopes to turn its newcomer status into selling point to attract jaded
organisers. Currently MICE contributes eight per cent of total tourism revenue estimated
at RM30 billion for 2004. Interestingly, about half of the foreign conference delegates
come from Singapore.
Hong Kong
Hong Kong is a leader in trade shows. Its key advantages are infrastructure,
international access, language and professional skills. Its closest competitors are the
Chinese cities where the manufacturing factories are located. With the signing of an
economic agreement, the government has eased the entry of Chinese businesses into
Hong Kong.
Hong Kong has launched an aggressive marketing campaign Hong Kong Meeting
Your Choice. In 2003 its MICE arrivals accounted for 5.9 percent of total arrivals and per
capita spending was S$2300 (HK11, 109), twice the amount spent by a tourist.
According to the Hong Kong Exhibition and Convention Industry Association, total
number of visitors in 2004 was just under 3.6 million a three percent rise over the 2002
figures. About 130,000 of these visitors were from Mainland China compared to just
85,000 in 2002 and 50,000 in 2000. Because of the industrys potential, the government
has approved a 20,000 sq metre extension to the Hong Kong Convention and Exhibition
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Centre, to be completed in 2009. The construction that will cost HK$1.3 billion, will boost
rental space by a third, pump into the economy an additional HK$40 billion and create
92,000 jobs between the year 2009 to 2025. Any delays to the plans would an
advantage to competitors such as Shanghai and Singapore.
Thailand
The quasi-government Thailand Convention and Exhibition Bureau was set up about
one and half years ago with S$15 million (350 million bhat). Thailand is doing well in
exhibitions. A new airport and a few convention centres are being built, including a huge
convention centre being built just north of Bangkok. It will boast the worlds largest
pillarless ballroom. Thailand received close to 90,000 MICE visitors in 2003, with almost
60,000 from East Asia and South-east Asia. The 2004 figures are likely to go up with a
few mega convention held including the International Aids Conference. This year
however, as a result of the post tsunami cancellations in the Phuket area, business
might have dropped.
Indonesia
Indonesia had a few setbacks because of terrorist attacks and its economic crisis, but it
is improving. Jakarta attracts conferences and Bali, incentive travels.
Philippines
Philippines tourist industry which started in 1976, has a longer history than any other
Asian cities . It had some setbacks and was felled by hungrier contenders like Hong
Kong and Singapore. It attracts mainly regional conference business.
Japan
Japan is doing very well and is the top Asia Pacific convention country after Australia
ICCA ranking for 2004.
Korea
Korea has four main top of the range convention centres with another three opening
and five more by 2010. It has hosted mega events such as the 1998 Olympics in Busan,
and the 2002 FIFA World Cup. It main competitor is China which is also its largest
trading partner so the threat can be turned into an opportunity.
Taiwan
Taiwan is serious about developing the MICE industry in North Asia and the government
gives its full support in promotion and training.
Australia
Has been very aggressive in its marketing with the incentive segment growing the
fastest.There is a convention centre in every major and regional city. The Australian
cities have specialist centres, for example Adeladie has an Arts Centre, a Basketball
Centre. The worlds best congress award was won by Cairns. Melbourne, a worlds
event city, will host the Commonwealth Games in 2006. In 2003, MICE gave 240,000
jobs, 360,000 events and 22.8 million delegates.
New Zealand
Made famous by the Hollywood adventure The Lords of the Ring. It went big on its
100% Pure campaign. There is one convention centre in Christchurch and Sky City in
Auckland.
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According to ICCA, Australasia hosted 4% of the worlds meetings.
The new players
China is building 150 convention centres, 23% of all arrivals are business
related.
o Beijing hosting Olympics 2008. Has strong heritage and good
infrastructure.
o Shanghai hosts international exhibitions and corporate meetings; has
world class exhibition centre. 58% of all arrivals are business related
India is the second fastest growing travel and tourism country for the next ten
years after China. Infrastructure development taking place in Delhi, Mumbai,
Hyderabad and Chennai. The growing middle class has powerful purchasing
power.
Macau - Asias Las Vegas . It has an advantageous location in a dynamic
economic region Pearl River Harbour. Relatively new facility the Venetian.
Sri Lanka new destination appeal
Vietnam new destination appeal, has capabilities. MICE club in Saigon.Hanoi
has participated in trade shows.
South Africa was isolated until 1994 but is now fastest growing destination
and will host the 2010 FIFA cup.
Dubai served by 70 airlines and nearby Qatar is an international tourist
destination
The End
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