SE Asia and Mainland China emerging meeting market
1. Southeast Asia & Mainland China: An Emerging Meetings Market David L Jones, PhD. Associate Professor Hong Kong Polytechnic University School of Hotel and Tourism Management 1
2. What Ever It Was That Got You To Where You Are Today, Is Not Sufficient to Keep You There
3. What Do We Need to Know About SE Asia and Mainland China? MICE industry growth Hardware & software Outbound – Mainland China Your attendee Inbound Holding a convention or event
5. Background Historical Perspective Comparing Western and Asian Meetings Why is China changing what we thought we knew? China’s new convention centers People !!!! My Perspective
6. Historical Perspective Personal experience – since early 90s Large meetings and conventions North American and European organizations coming to SE Asia, but not really Mainland China Exhibitions and tradeshows Focus on attracting Westerners to Asia Small Meetings Local offices of North American, European and Japanese companies What does this mean?
7. Western Meeting Specifications Typical meeting set-ups General sessions Breakout rooms Size of the meeting sessions Exhibits are associated with meetings 54% of tradeshows managed by associations Basis of how Western hotel meeting rooms are built
11. Differences in Asian Meetings Meeting room set-up Requirement of head table at all sessions Formality of meetings Simultaneous interpretation Size?
12. Asian Meeting Set-ups Forum General Session Head Table Photo to be Added Breakout Session
13. Today’s Perspective - Meetings Intra-Asia meetings and forums Ease and cost of travel have led to increases in regional meetings Mainland China’s high-speed trains Associations are growing in Asia APac CHRIE 2011 – Hong Kong Mainland China’s Alliance of China Conference Hotels
14. Mainland China Perspective “The government has recently begun to realize the value of the meetings industry” Haiyin Lieu, CEO of the China National Convention Center
17. Are We Prepared? Financial industry employees per institution Hotel ballroom sizes – Hyatt Hotels
18. Are We Prepared? Financial industry employees per institution Hotel ballroom sizes – Hyatt Hotels Grand Hyatt Macau – 20,742 Sq. Ft. – 2,500 Theater Style
20. Convention Venue Landscape Still about exhibitions 150 exhibition halls of 10,000 m2 3,500 official exhibition worth CNY 16.2 billion (USD 2.63 billion) China National Convention Center Changing the landscape 690 events in first year Corporate – 38% Associations – 24% Exhibitions – 12% China Research & Intelligence 2010 CNCC
23. Size Specification Highlights Convention Hall – 6,400 m2 (5,700 people) Ballroom – 4,860 m2 (3,000 for banquets) Shanghai – Auditorium seating 2,500 Shanghai – 106 meeting rooms 11 can seat more than 200 people each Beijing nearly 100 meeting rooms 3 can seat more than 540 people each
27. War for Talent By 2025 Mainland China will have 23 cities with 5 million or more population No shortage of people Getting best and brightest, then keeping them 60% of college grads don’t find jobs Yet, they well change jobs for RMB 500 extra per mos. (less than USD 86) Expat or Local? Salaries in Mainland MICE industry almost equal to those in Singapore Biggest issue – Lack of Middle Management
28. What About Service Quality and Industry Knowledge? Change in past 20 years Spoken English – Very Good! International brands versus domestic brands Commitment to training Ability to develop and retain Middle Managers Service is part of the culture
29. Understanding The Lifetime Value of the Customer Lifetime value view, not transaction view – Chinese guanxi Revenue and profits by average customer over a lifetime by segment Increase average purchase, frequency of visit, life
31. Shangri-la Philosophy Has It Changed? BEFORE NOW Shangri-La Hospitality from Caring People 殷勤好客 香格里拉情
32. Shangri-la Signature Events - Example Super Value Dates to enable a quick search for the best available room rate across Shangri-La hotels, resorts and Traders hotels A written basic proposal and quotation for the event within six working hours of initial enquiry Group Online Reservations to save the trouble of consolidating bookings and rooming lists Central Credit Administration to facilitate a credit line with multiple properties Complimentary guestroom Internet service and function room wireless Internet access Total hotel experience with dedicated events specialists in key departments to provide seamless service throughout the hotel Streamlined planning with appointed events management professional to handle all event arrangements On-site service management with appointed meeting specialist to oversee all event requirements and service delivery On-site technical support with dedicated AV technician on hand throughout the event to ensure the smooth operation and functionality of equipment
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34. Questions for You Has anyone had success with attracting attendees from Asia? Who is interested in increasing the number of attendees from Mainland China?
36. 100 million outbound Chinese tourists by 2015!! How do you reach them for meeting attendance?
37. Mainland China Travel Spending by outbound Chinese tourists ranked fourth-largest worldwide in 2010. Up 20.4% year on year Top outbound market by 2020 – UNWTO
38. Approved Destination Status (ADS) Visa approval for leisure travel Approved travel agents and wholesalers Selected countries Canada and USA are ADS countries Biggest issue is USA Visa, not China
45. Internet & Social Media Number of Chinese Internet users has grown by 1500% since 2000 Currently 456 million Internet users 32% penetration compared to 80% in USA 800 million mobile users Most engaged country online – 92% More bloggers than Europe and USA combined
46. Social Media in Marketing Social Networking Sites Review Networking Sites
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51. Questions for You Who has held a meeting in SE Asia or Mainland China? What were your experiences? Who is considering SE Asia or Mainland China?
53. International Arrivals International arrivals staying at least one night reached 55.66 million in 2010, up 9.4 percent on 2009 China's appearance in the top three was its first, according to the UNWTO
55. China Meetings ICCA – China jumped from #19 to #9 on the list of countries drawing the most association business PCOs MCI Kellen
56. USA Corporate Presences in Greater China Yum Brands (KFC, Pizza Hut) 2011 China overtaken USA as top profit maker GM China exceeds USA in 2010 Las Vegas Sands and Wynn Revenues are 3 times more in Macao than LV Dell Computer China is 2nd Coach China is fastest growing market Starwood & Marriott Mainland China largest market outside USA
57. Holding an Association Meeting in Mainland China Government policy on attendance and exhibit size - 300 international attendees Other issues Political issues Visa Registration costs Venue cost Security (copyright and patent)
59. Criteria for Support from CMA Support by China Medical Association & Specialty Society Background, scientific benefits, financial benefits
60. China Medical Association Meetings 30 annual meetings of 1000+ Orthopedics is largest Preferred locations Suzhou Xiamen 2 most popular then Beijing and Shanghai Months – May then September
61. Key Points You Should Know about Mainland China Experienced conference management staff at international brand hotels Not at lot of depth, however Willingness to serve Local infrastructure is inbound operators Transitioning from wholesale and incentive markets Detailed contracts are a new experience PCO’s very common No CVBs yet, but Tourist Boards are evolving to MICE Beijing Tourism Administration (BTA) Shanghai Municipal Tourism Administration & Shanghai International Conference Management Key players for association meetings approval GCMBE – Beijing in December
62. Where Do You Hold It? Beijing Shanghai and Yangtze River Delta Hangzhou, Suzhou, Nanjing, Ningbo Pearl River Delta Guangzhou, Shenzhen Second Tier Cities Chengdu, Xi’an, Wuhan, Xiamen, Dalin, Qingdao, Kunming, Chongqing SARs – Hong Kong & Macau
63. Secondary City in Mainland ChinaChongqing Example 50 – 4 & 5 Star hotels by 2015 International brands – Marriott and IHG Advantages: Convenient transportation Cheaper than other big cities Abundant tourism products Different itineraries
67. MICE in Hong Kong Meetings & Exhibitions Hong Kong (MEHK) Launched November 2008 offer one-stop professional support to MICE organizers 2008-09 Hong Kong Budget earmarked HK$150 million (US$19.2 million) over 5 years to strengthen promotion on Hong Kong as a MICE destination.
68. Macau SAR Sleepy fishing village to mega gaming center Themed integrated resorts Cotai Strip Venetian City of Dreams Sheraton/St. Regis Galaxy City MGM Wynn/Encore
69. Different business concept All inclusivethemed resorts Privately owned & managed Extremely rapid development Issues, with changes seen every month transportation infrastructure HR
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72. Singapore Largest MICE destination in SE Asia Theme integrated resorts Marina Bay Sands Resorts World Sentosa Convention hotels 7 surrounding SUNTEC Experienced Easy transportation Chinese/Indian/Malay cultures
74. Other SE Asia MICE Destinations Thailand – Bangkok Political issues Malaysia – KL Muslim country Taiwan – Taipei User friendly for Americans Philippines – Manila Best American English Viet Nam – Ho Chi Minh City/Saigon Not ready yet
76. Key Points Decision process Collective versus individual Trust factor – guanxi Role of the Players PCO’s International brand versus domestic hotels Understanding the lifetime value of the customer Relationship versus transactional Negotiations not done over the phone
77. Asian Principles“3 Plus 1 Factor” Respect for Elders “Face” Giving It Work Before Self Importance of the Status of Working for a Hotel Plus Factor: Educational Sponges
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80. The Possession of Facts is Knowledge, the Use of Them is Wisdom Thomas Jefferson
81. To Be Fond Of Learning Is Near To Wisdom 智者乐学 Confucius 孔子
The second US President and I share the same birthday, not the same year however. So, I’m particular fond of this statement in relationship to what we discussed today.