EIBTM INDUSTRY TRENDS REPORT 2011                  Rob Davidson             EIBTM Industry Analyst     Senior Lecturer, Un...
2011          overviewAn increasingly uneven anduncertain economic recoveryBut the prevailing mood in themeetings and even...
The global economic contextA year of two halves: beginning with high levelsof business confidence.Then a loss of momentum ...
The global economic context   Key Markets – The USStubbornly high unemployment rateBut some positive key performanceindica...
The global economic context   Key Markets – EuropeBusiness confidence here lower than theworld averageConcern over the Eur...
The global economic contextKey Markets – Emerging EconomiesMuscular economic growth – even ifgrowth rates have moderated a...
Key client sectors -         pharmaceuticalIncreasing demand, to fulfil the healthneeds of ageing populationsBut a trend t...
Key client sectors - automotiveRadical shift in the location of productionfacilities towards lower-cost regionsBut a recov...
Key client sectors –         financial servicesNon-traditional entrants creating acompetitive environmentMore consolidatio...
Corporate meetings trendsImproved business results More meetings,especially to BRIC and between BRICBut delegate numbers s...
Association meetings trendsOngoing creation of new associations
Association meetings trendsDelegate numbers upRevenue from exhibitions remains stableMarginal increases in revenue fromhou...
Incentive travelStabilising - but still sensitive to programextravagance(64%)Choice of destination: 25+% moved frominterna...
Regional variations – the USEarly 2011 optimism: expectations of fewerbudget cuts; greater interest in overseasdestination...
Regional variations – the USBut economic unrest in the US became themain concern for meetings industryprofessionals over t...
Regional variations – EuropeA strong performance for ALL travel, inearly 2011: airlines, hotels …But tapering off towards ...
Regional variations – ChinaCIBTM Report: growth of inbound anddomestic events. But also outbound.Mood among meeting planne...
Regional variations – ChinaSite International Conference in Beijing in2012ICCA Congress in Shanghai in 2013
Regional variations –          Middle EastMore business events than at any time inthe past 5 years. High expectation ofgro...
Regional variations –           AustraliaThe business events sector has recapturedsome of its post-2008 losses: internatio...
OUTLOOK FOR 2012       ?
OUTLOOK FOR 2012Only weak growth predicted for theadvanced economiesRisk of a return to recession from:An escalation of th...
OUTLOOK FOR 2012But within the meetings and events industry,there is a greater degree of optimism: predictionsof growing d...
OUTLOOK FOR 2012‘How would you describe your companys2012 budget for meetings & events?’46% ‘About the same’33% ‘Higher th...
OUTLOOK FOR 2012‘How would you describe your companys2012 budget for meetings & events?’46% ‘About the same’33% ‘Higher th...
OUTLOOK FOR 2012Almost 80% of incentive planners werelooking toward a positive 201241% expecting an increase in budgetInce...
OUTLOOK FOR 2012The meetings and events industry will learn moreabout operating within volatile marketsInnovation, coopera...
THANK YOUR.Davidson@greenwich.ac.uk
Rob Davidson presentation at the Tri-City Academy of Business Meeting Organizers in Gdansk, 8 December, 2011 - EIBTM 2011,...
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Rob Davidson presentation at the Tri-City Academy of Business Meeting Organizers in Gdansk, 8 December, 2011 - EIBTM 2011, trends in meeting industry

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Rob Davidson presentation at the Tri-City Academy of Business Meeting Organizers in Gdansk, 8 December, 2011 - EIBTM 2011, trends in meeting industry

  1. 1. EIBTM INDUSTRY TRENDS REPORT 2011 Rob Davidson EIBTM Industry Analyst Senior Lecturer, University of Greenwich
  2. 2. 2011 overviewAn increasingly uneven anduncertain economic recoveryBut the prevailing mood in themeetings and events industry is stillone of confidence and steady growthtowards 2008 levels of demand.
  3. 3. The global economic contextA year of two halves: beginning with high levelsof business confidence.Then a loss of momentum across a wide rangeof national economiesNow, the advanced economies may be headinginto another downturn in economic activity …
  4. 4. The global economic context Key Markets – The USStubbornly high unemployment rateBut some positive key performanceindicators in early 2011: profit levels up asa share of GDP
  5. 5. The global economic context Key Markets – EuropeBusiness confidence here lower than theworld averageConcern over the Eurozone sovereigndebt crisis – and the threat of financialmarket contagionRisk of a return to recession
  6. 6. The global economic contextKey Markets – Emerging EconomiesMuscular economic growth – even ifgrowth rates have moderated a littleBrazil to become the world’s sixth biggesteconomyA booming trade relationship with China
  7. 7. Key client sectors - pharmaceuticalIncreasing demand, to fulfil the healthneeds of ageing populationsBut a trend towards generics and drugdiscounting could limit growth in EuropeBRIC countries seeing fastest growth
  8. 8. Key client sectors - automotiveRadical shift in the location of productionfacilities towards lower-cost regionsBut a recovery in vehicle sales in the USIndia (14.7%) and China (8.3%) to accountfor greatest growth over the next 5 years
  9. 9. Key client sectors – financial servicesNon-traditional entrants creating acompetitive environmentMore consolidations and mergersTraditional players seeking expansion inthe BRIC countries
  10. 10. Corporate meetings trendsImproved business results More meetings,especially to BRIC and between BRICBut delegate numbers still below pre-recessionary levelsShorter meetings
  11. 11. Association meetings trendsOngoing creation of new associations
  12. 12. Association meetings trendsDelegate numbers upRevenue from exhibitions remains stableMarginal increases in revenue fromhousing and sponsorships
  13. 13. Incentive travelStabilising - but still sensitive to programextravagance(64%)Choice of destination: 25+% moved frominternational to domestic; 10%+ fromdomestic to international; rest - no change
  14. 14. Regional variations – the USEarly 2011 optimism: expectations of fewerbudget cuts; greater interest in overseasdestinations: Western Europe 40% Caribbean 27% United Kingdom 37% Eastern Europe 26% Asia 36% South America 25% Mexico 34% Australia/Pacific Rim 25% Bermuda 13%
  15. 15. Regional variations – the USBut economic unrest in the US became themain concern for meetings industryprofessionals over the summer months69% said the US Congress, US economyand the global economy were seen to bethe most influential trend on meetings (MPI)
  16. 16. Regional variations – EuropeA strong performance for ALL travel, inearly 2011: airlines, hotels …But tapering off towards the year-endBut continuing dominance of ICCA/UIA lists
  17. 17. Regional variations – ChinaCIBTM Report: growth of inbound anddomestic events. But also outbound.Mood among meeting planners is buoyantHeavy investment in hotels, conventionand exhibition centres
  18. 18. Regional variations – ChinaSite International Conference in Beijing in2012ICCA Congress in Shanghai in 2013
  19. 19. Regional variations – Middle EastMore business events than at any time inthe past 5 years. High expectation ofgrowth. Slight drop in average duration.Extensive growth in meetings-relatedinvestment: During 2012, 131 new hotelsare planned to open, with 36,205 rooms
  20. 20. Regional variations – AustraliaThe business events sector has recapturedsome of its post-2008 losses: internationalevents up by 16%Moderate growth in spending (+5%)But incentive travel spending down (-19%)
  21. 21. OUTLOOK FOR 2012 ?
  22. 22. OUTLOOK FOR 2012Only weak growth predicted for theadvanced economiesRisk of a return to recession from:An escalation of the Eurozone debt crisis - financial contagionThe possibility that the US falls back into recessionA hard landing in the emerging economies
  23. 23. OUTLOOK FOR 2012But within the meetings and events industry,there is a greater degree of optimism: predictionsof growing demand and rising rates on thestrength of forward bookings.Increasing differentials between 1st and 2nd tiercities
  24. 24. OUTLOOK FOR 2012‘How would you describe your companys2012 budget for meetings & events?’46% ‘About the same’33% ‘Higher than 2011’21% ‘Lower than 2011’ACTE Survey October 2011
  25. 25. OUTLOOK FOR 2012‘How would you describe your companys2012 budget for meetings & events?’46% ‘About the same’33% ‘Higher than 2011’21% ‘Lower than 2011’ACTE Survey October 2011
  26. 26. OUTLOOK FOR 2012Almost 80% of incentive planners werelooking toward a positive 201241% expecting an increase in budgetIncentive Research Foundation, Spring 2011
  27. 27. OUTLOOK FOR 2012The meetings and events industry will learn moreabout operating within volatile marketsInnovation, cooperation, collaborationWe will position ourselves as part of the solution
  28. 28. THANK YOUR.Davidson@greenwich.ac.uk

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