The document provides an overview of industry trends in the meetings and events industry in 2011 and an outlook for 2012. In 2011, the global economic recovery was uneven and uncertain, but the industry remained confident and saw steady growth. Key markets like the US, Europe, and emerging economies were analyzed. Client sectors like pharmaceuticals, automotive, and financial services were also discussed. Regional variations in the industry across the US, Europe, China, the Middle East, and Australia were covered. For 2012, weak growth was predicted for advanced economies, but the industry expected growing demand and rates based on forward bookings, with increasing differentials between first and second tier cities. Surveys showed 46% of companies expected budgets to stay the same in

1. EIBTM INDUSTRY TRENDS REPORT 2011
Rob Davidson
EIBTM Industry Analyst
Senior Lecturer, University of Greenwich

2. 2011
overview
An increasingly uneven and
uncertain economic recovery
But the prevailing mood in the
meetings and events industry is still
one of confidence and steady growth
towards 2008 levels of demand.

3. The global economic context
A year of two halves: beginning with high levels
of business confidence.
Then a loss of momentum across a wide range
of national economies
Now, the advanced economies may be heading
into another downturn in economic activity …

4. The global economic context
Key Markets – The US
Stubbornly high unemployment rate
But some positive key performance
indicators in early 2011: profit levels up as
a share of GDP

5. The global economic context
Key Markets – Europe
Business confidence here lower than the
world average
Concern over the Eurozone sovereign
debt crisis – and the threat of financial
market contagion
Risk of a return to recession

6. The global economic context
Key Markets – Emerging Economies
Muscular economic growth – even if
growth rates have moderated a little
Brazil to become the world’s sixth biggest
economy
A booming trade relationship with China

7. Key client sectors -
pharmaceutical
Increasing demand, to fulfil the health
needs of ageing populations
But a trend towards generics and drug
discounting could limit growth in Europe
BRIC countries seeing fastest growth

8. Key client sectors - automotive
Radical shift in the location of production
facilities towards lower-cost regions
But a recovery in vehicle sales in the US
India (14.7%) and China (8.3%) to account
for greatest growth over the next 5 years

9. Key client sectors –
financial services
Non-traditional entrants creating a
competitive environment
More consolidations and mergers
Traditional players seeking expansion in
the BRIC countries

10. Corporate meetings trends
Improved business results More meetings,
especially to BRIC and between BRIC
But delegate numbers still below pre-
recessionary levels
Shorter meetings

12. Association meetings trends
Ongoing creation of new associations

13. Association meetings trends
Delegate numbers up
Revenue from exhibitions remains stable
Marginal increases in revenue from
housing and sponsorships

14. Incentive travel
Stabilising - but still sensitive to program
extravagance
(64%)
Choice of destination: 25+% moved from
international to domestic; 10%+ from
domestic to international; rest - no change

15. Regional variations – the US
Early 2011 optimism: expectations of fewer
budget cuts; greater interest in overseas
destinations:
Western Europe 40% Caribbean 27%
United Kingdom 37% Eastern Europe 26%
Asia 36% South America 25%
Mexico 34% Australia/Pacific Rim 25%
Bermuda 13%

16. Regional variations – the US
But economic unrest in the US became the
main concern for meetings industry
professionals over the summer months
69% said the US Congress, US economy
and the global economy were seen to be
the most influential trend on meetings
(MPI)

17. Regional variations – Europe
A strong performance for ALL travel, in
early 2011: airlines, hotels …
But tapering off towards the year-end
But continuing dominance of ICCA/UIA lists

18. Regional variations – China
CIBTM Report: growth of inbound and
domestic events. But also outbound.
Mood among meeting planners is buoyant
Heavy investment in hotels, convention
and exhibition centres

19. Regional variations – China
Site International Conference in Beijing in
2012
ICCA Congress in Shanghai in 2013

20. Regional variations –
Middle East
More business events than at any time in
the past 5 years. High expectation of
growth. Slight drop in average duration.
Extensive growth in meetings-related
investment: During 2012, 131 new hotels
are planned to open, with 36,205 rooms

21. Regional variations –
Australia
The business events sector has recaptured
some of its post-2008 losses: international
events up by 16%
Moderate growth in spending (+5%)
But incentive travel spending down (-19%)

22. OUTLOOK FOR 2012
?

23. OUTLOOK FOR 2012
Only weak growth predicted for the
advanced economies
Risk of a return to recession from:
An escalation of the Eurozone debt crisis - financial contagion
The possibility that the US falls back into recession
A hard landing in the emerging economies

24. OUTLOOK FOR 2012
But within the meetings and events industry,
there is a greater degree of optimism: predictions
of growing demand and rising rates on the
strength of forward bookings.
Increasing differentials between 1st and 2nd tier
cities

25. OUTLOOK FOR 2012
‘How would you describe your company's
2012 budget for meetings & events?’
46% ‘About the same’
33% ‘Higher than 2011’
21% ‘Lower than 2011’
ACTE Survey October 2011

26. OUTLOOK FOR 2012
‘How would you describe your company's
2012 budget for meetings & events?’
46% ‘About the same’
33% ‘Higher than 2011’
21% ‘Lower than 2011’
ACTE Survey October 2011

27. OUTLOOK FOR 2012
Almost 80% of incentive planners were
looking toward a positive 2012
41% expecting an increase in budget
Incentive Research Foundation, Spring 2011

28. OUTLOOK FOR 2012
The meetings and events industry will learn more
about operating within volatile markets
Innovation, cooperation, collaboration
We will position ourselves as part of the solution

29. THANK YOU
R.Davidson@greenwich.ac.uk