SE Asia and Mainland China emerging meeting market


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  • Perspective of a Professional
  • China has 25% more employees per institution
  • China has 25% more employees per institution
  • Haouse of dancing water
  • 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.
  • SE Asia and Mainland China emerging meeting market

    1. 1. Southeast Asia & Mainland China: An Emerging Meetings Market<br />David L Jones, PhD.<br />Associate Professor<br />Hong Kong Polytechnic University<br />School of Hotel and Tourism Management<br />1<br />
    2. 2. What Ever It Was That Got You To Where You Are Today, Is Not Sufficient to Keep You There<br />
    3. 3. What Do We Need to Know About SE Asia and Mainland China?<br />MICE industry growth <br />Hardware & software<br />Outbound – Mainland China<br />Your attendee<br />Inbound <br />Holding a convention or event<br />
    4. 4. MICE INDUSTRY GROWTH<br />
    5. 5. Background<br />Historical Perspective <br />Comparing Western and Asian Meetings<br />Why is China changing what we thought we knew?<br />China’s new convention centers<br />People !!!!<br />My Perspective<br />
    6. 6. Historical Perspective<br />Personal experience – since early 90s<br />Large meetings and conventions<br />North American and European organizations coming to SE Asia, but not really Mainland China<br />Exhibitions and tradeshows<br />Focus on attracting Westerners to Asia<br />Small Meetings<br />Local offices of North American, European and Japanese companies<br />What does this mean?<br />
    7. 7. Western Meeting Specifications<br />Typical meeting set-ups<br />General sessions<br />Breakout rooms<br />Size of the meeting sessions<br />Exhibits are associated with meetings<br />54% of tradeshows managed by associations<br />Basis of how Western hotel meeting rooms are built<br />
    8. 8. Typical Meeting Set-ups – North America<br />Breakout Session<br />General Session<br />
    9. 9. Differences in Size of Various Types of Meetings<br />
    10. 10. Size of meeting rooms for conferences – North America<br />
    11. 11. Differences in Asian Meetings<br />Meeting room set-up<br />Requirement of head table at all sessions<br />Formality of meetings<br />Simultaneous interpretation<br />Size?<br />
    12. 12. Asian Meeting Set-ups<br />Forum General Session Head Table<br />Photo to be Added<br />Breakout Session<br />
    13. 13. Today’s Perspective - Meetings<br />Intra-Asia meetings and forums<br />Ease and cost of travel have led to increases in regional meetings<br />Mainland China’s high-speed trains<br />Associations are growing in Asia<br />APac CHRIE 2011 – Hong Kong<br />Mainland China’s Alliance of China Conference Hotels <br />
    14. 14. Mainland China Perspective<br />“The government has recently begun to realize the value of the meetings industry”<br />Haiyin Lieu, CEO of the China National Convention Center <br />
    15. 15. Size!!<br />
    16. 16. What Size Should Meeting Space Be?<br />China<br />USA<br />UK<br />POPULATION<br />
    17. 17. Are We Prepared?<br />Financial industry employees per institution<br />Hotel ballroom sizes – Hyatt Hotels<br />
    18. 18. Are We Prepared?<br />Financial industry employees per institution<br />Hotel ballroom sizes – Hyatt Hotels<br />Grand Hyatt Macau – 20,742 Sq. Ft. – 2,500 Theater Style<br />
    19. 19. Future Convention Center Venues in Mainland China<br />Anticipating the trend?<br />Two Case Studies<br />
    20. 20. Convention Venue Landscape<br />Still about exhibitions<br />150 exhibition halls of 10,000 m2<br />3,500 official exhibition worth CNY 16.2 billion (USD 2.63 billion)<br />China National Convention Center<br />Changing the landscape<br />690 events in first year<br />Corporate – 38%<br />Associations – 24%<br />Exhibitions – 12%<br />China Research & Intelligence 2010<br />CNCC<br />
    21. 21. China National Convention Center - Beijing<br />
    22. 22. Shanghai Expo Center<br />
    23. 23. Size Specification Highlights<br />Convention Hall – 6,400 m2 (5,700 people)<br />Ballroom – 4,860 m2 (3,000 for banquets)<br />Shanghai – Auditorium seating 2,500<br />Shanghai – 106 meeting rooms<br />11 can seat more than 200 people each<br />Beijing nearly 100 meeting rooms<br />3 can seat more than 540 people each<br />
    24. 24. Wal-Mart – China - 2011<br />
    25. 25. Wal-Mart - China<br />CNCC – January 2011<br />4,000 attendees from 329 stores in China<br />79 suppliers – 13,000 m2 of exhibits<br />
    26. 26. People!!!!<br />What about the “peopleware”?<br />
    27. 27. War for Talent<br />By 2025 Mainland China will have 23 cities with 5 million or more population<br />No shortage of people<br />Getting best and brightest, then keeping them<br />60% of college grads don’t find jobs<br />Yet, they well change jobs for RMB 500 extra per mos. (less than USD 86)<br />Expat or Local?<br />Salaries in Mainland MICE industry almost equal to those in Singapore<br />Biggest issue – Lack of Middle Management<br />
    28. 28. What About Service Quality and Industry Knowledge?<br />Change in past 20 years<br />Spoken English – Very Good!<br />International brands versus domestic brands<br />Commitment to training<br />Ability to develop and retain Middle Managers<br />Service is part of the culture<br />
    29. 29. Understanding The Lifetime Value of the Customer<br />Lifetime value view, not transaction view – Chinese guanxi<br />Revenue and profits by average customer over a lifetime by segment<br />Increase average purchase, frequency of visit, life <br />
    30. 30. Development of Service Culture<br />Business<br />Educational<br />Institutions<br />Home<br />Society<br />
    31. 31. Shangri-la Philosophy Has It Changed? <br />BEFORE<br />NOW <br />Shangri-La <br />Hospitality <br />from <br />Caring <br />People<br />殷勤好客<br />香格里拉情<br />
    32. 32. Shangri-la Signature Events - Example<br />Super Value Dates to enable a quick search for the best available room rate across Shangri-La hotels, resorts and Traders hotels<br />A written basic proposal and quotation for the event within six working hours of initial enquiry<br />Group Online Reservations to save the trouble of consolidating bookings and rooming lists<br />Central Credit Administration to facilitate a credit line with multiple properties<br />Complimentary guestroom Internet service and function room wireless Internet access<br />Total hotel experience with dedicated events specialists in key departments to provide seamless service throughout the hotel<br />Streamlined planning with appointed events management professional to handle all event arrangements<br />On-site service management with appointed meeting specialist to oversee all event requirements and service delivery<br />On-site technical support with dedicated AV technician on hand throughout the event to ensure the smooth operation and functionality of equipment<br />
    33. 33.
    34. 34. Questions for You<br />Has anyone had success with attracting attendees from Asia?<br />Who is interested in increasing the number of attendees from Mainland China?<br />
    36. 36. 100 million outbound Chinese tourists by 2015!!<br />How do you reach them for meeting attendance?<br />
    37. 37. Mainland China Travel<br />Spending by outbound Chinese tourists ranked fourth-largest worldwide in 2010.<br />Up 20.4% year on year<br />Top outbound market by 2020 – UNWTO<br />
    38. 38. Approved Destination Status (ADS)<br />Visa approval for leisure travel <br />Approved travel agents and wholesalers<br />Selected countries<br />Canada and USA are ADS countries<br />Biggest issue is USA Visa, not China<br />
    39. 39. Mainland Chinese Attendee Profile<br />
    40. 40. eLong – Hotel Guest Decision Making<br />Prices<br />Location<br />Description of facilities<br />Review of other users<br />
    41. 41. Chinese Luxury Tourist (CLT) – Regions to be visited <br />Market Probe Travel & Tourism Group, 2011<br />
    42. 42. CLT – Best Hotel/Airline Brands<br />Market Probe Travel & Tourism Group, 2011<br />
    43. 43. CLT – Class of Service<br />Market Probe Travel & Tourism Group, 2011<br />
    44. 44. Reaching the Mainland Chinese Attendee<br />
    45. 45. Internet & Social Media<br />Number of Chinese Internet users has grown by 1500% since 2000<br />Currently<br />456 million Internet users<br />32% penetration compared to 80% in USA<br />800 million mobile users<br />Most engaged country online – 92%<br />More bloggers than Europe and USA combined<br />
    46. 46. Social Media in Marketing<br />Social Networking Sites<br />Review Networking Sites<br />
    47. 47.
    48. 48.
    49. 49.
    50. 50.
    51. 51. Questions for You<br />Who has held a meeting in SE Asia or Mainland China? What were your experiences?<br />Who is considering SE Asia or Mainland China?<br />
    53. 53. International Arrivals<br />International arrivals staying at least one night reached 55.66 million in 2010, up 9.4 percent on 2009<br />China's appearance in the top three was its first, according to the UNWTO<br />
    54. 54. Where did they come from?Where did they go?<br />
    55. 55. China Meetings<br />ICCA – China jumped from #19 to #9 on the list of countries drawing the most association business<br />PCOs<br />MCI<br />Kellen<br />
    56. 56. USA Corporate Presences in Greater China<br />Yum Brands (KFC, Pizza Hut) <br />2011 China overtaken USA as top profit maker<br />GM<br />China exceeds USA in 2010<br />Las Vegas Sands and Wynn<br />Revenues are 3 times more in Macao than LV<br />Dell Computer<br />China is 2nd<br />Coach<br />China is fastest growing market<br />Starwood & Marriott<br />Mainland China largest market outside USA<br />
    57. 57. Holding an Association Meeting in Mainland China<br />Government policy on attendance and exhibit size - 300 international attendees<br />Other issues<br />Political issues<br />Visa<br />Registration costs<br />Venue cost<br />Security (copyright and patent)<br />
    58. 58. Application Process for ApprovalChina Medical Society Example<br />
    59. 59. Criteria for Support from CMA<br />Support by China Medical Association & Specialty Society<br />Background, scientific benefits, financial benefits<br />
    60. 60. China Medical Association Meetings<br />30 annual meetings of 1000+<br />Orthopedics is largest<br />Preferred locations<br />Suzhou<br />Xiamen<br />2 most popular then Beijing and Shanghai<br />Months – May then September<br />
    61. 61. Key Points You Should Know about Mainland China<br />Experienced conference management staff at international brand hotels<br />Not at lot of depth, however<br />Willingness to serve<br />Local infrastructure is inbound operators <br />Transitioning from wholesale and incentive markets<br />Detailed contracts are a new experience<br />PCO’s very common<br />No CVBs yet, but Tourist Boards are evolving to MICE<br />Beijing Tourism Administration (BTA)<br />Shanghai Municipal Tourism Administration & Shanghai International Conference Management<br />Key players for association meetings approval<br />GCMBE – Beijing in December<br />
    62. 62. Where Do You Hold It?<br />Beijing<br />Shanghai and Yangtze River Delta<br />Hangzhou, Suzhou, Nanjing, Ningbo<br />Pearl River Delta<br />Guangzhou, Shenzhen<br />Second Tier Cities<br />Chengdu, Xi’an, Wuhan, Xiamen, Dalin, Qingdao, Kunming, Chongqing<br />SARs – Hong Kong & Macau<br />
    63. 63. Secondary City in Mainland ChinaChongqing Example<br />50 – 4 & 5 Star hotels by 2015<br />International brands – Marriott and IHG<br />Advantages:<br />Convenient transportation<br />Cheaper than other big cities<br />Abundant tourism products<br />Different itineraries<br />
    64. 64. Greater China and SE Asia<br />
    65. 65. Hong Kong SAR<br />Cosmopolitan city<br />Global mindset<br />Experienced<br />Exhibitions<br />Incentives<br />Great convention and exhibition venues<br />
    66. 66. Hong Kong Convention and Exhibition Center (HKCEC)<br />Asia-World Expo (AWE)<br />
    67. 67. MICE in Hong Kong<br />Meetings & Exhibitions Hong Kong (MEHK) <br />Launched November 2008 <br />offer one-stop professional support to MICE organizers<br />2008-09 Hong Kong Budget<br />earmarked HK$150 million (US$19.2 million) over 5 years to strengthen promotion on Hong Kong as a MICE destination. <br />
    68. 68. Macau SAR<br />Sleepy fishing village to mega gaming center<br />Themed integrated resorts <br />Cotai Strip<br />Venetian<br />City of Dreams<br />Sheraton/St. Regis<br />Galaxy<br />City<br />MGM<br />Wynn/Encore<br />
    69. 69. Different business concept<br />All inclusivethemed resorts<br />Privately owned & managed<br />Extremely rapid development<br />Issues, with changes seen every month<br />transportation<br />infrastructure<br />HR<br />
    70. 70.
    71. 71.
    72. 72. Singapore<br />Largest MICE destination in SE Asia<br />Theme integrated resorts<br />Marina Bay Sands<br />Resorts World Sentosa<br />Convention hotels<br />7 surrounding SUNTEC<br />Experienced<br />Easy transportation<br />Chinese/Indian/Malay cultures<br />
    73. 73. Singapore<br />SUNTEC<br />
    74. 74. Other SE Asia MICE Destinations<br />Thailand – Bangkok<br />Political issues <br />Malaysia – KL<br />Muslim country<br />Taiwan – Taipei<br />User friendly for Americans<br />Philippines – Manila<br />Best American English<br />Viet Nam – Ho Chi Minh City/Saigon<br />Not ready yet<br />
    75. 75. UNDERSTANDING ASIA<br />Cross-cultural Negotiation<br />
    76. 76. Key Points<br />Decision process<br />Collective versus individual<br />Trust factor – guanxi<br />Role of the Players<br />PCO’s<br />International brand versus domestic hotels<br />Understanding the lifetime value of the customer<br />Relationship versus transactional<br />Negotiations not done over the phone<br />
    77. 77. Asian Principles“3 Plus 1 Factor”<br />Respect for Elders<br />“Face”<br />Giving It <br />Work Before Self<br />Importance of the Status of Working for a Hotel<br />Plus Factor: Educational Sponges<br />
    78. 78.
    79. 79.
    80. 80. The Possession of Facts is Knowledge, the Use of Them is Wisdom Thomas Jefferson<br />
    81. 81. To Be Fond Of Learning <br />Is Near To Wisdom<br />智者乐学<br />Confucius<br />孔子 <br />
    82. 82. Thank You<br />Xie Xie<br />谢谢!<br />