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Background and Summary of results

The last few years have seen the economies in China and Asia buck the worldwide recession with

double digit growth, which has now reduced to single figures for 2013. As this research is published

economies worldwide are reporting growth for the first time since the Global economic crisis began.

Forecast growth for last quarter 2013 and 2014 is shown in the table below. Asian economies

continue to show much higher figures than elsewhere in the world. This is certainly reflected in the

research results outlined here which shows growth of the meetings industry in Asia, and China in

particular, despite the recent effects felt in the market from reduced government spending.

Region Predicted output growth 2013/14

World 3.9%

China 9.3%

India 6.3%

ASEAN 5 4.5%

USA 1.8%

Eurozone 1.5%

Source: IMF July 2013

The healthy growth forecast for economies in Asia is sustaining development plans with new

convention centres throughout China for Ningxia, Qingdao, Tianjin, Baiyun and Shijiazhuong city

among others. The July 2013 STR Global Construction Pipeline Report shows the Asia Pacific hotel

development pipeline comprises 1,831 hotels totalling 399,950 rooms. This states that within the

region forecast growth in hotel rooms is highest in China with 147,721 rooms under construction,

followed by India with 33,760 rooms, Indonesia 15,419 rooms, Malaysia 7,646 rooms and the

Philippines 7,623 rooms. Singapore, Japan and Hong Kong are also attracting continued investment.

Singapore has seen phenomenal success as a meetings destination with the latest UIA (Union of

International Associations) International Meeting Statistics Report for 2012, showing the top three

countries from Asia taking 23.7% of the world's total international meetings and Singapore at

number one position with 10% of the world share.

Top five countries international meetings 2012 Number of meetings Percentage of world

1 Singapore 1055 10.0

2 Japan 776 7.4

3 Korea Republic 662 6.3

4 USA 658 6.2

5 Belgium 608 5.8

Source: UIA International Meetings Statistics Report for 2012



Other Asian countries in the top twenty countries for international association meetings include

China at 19th position with 158 meetings and Malaysia at number 20 with 154 meetings. The number

of meetings held in China has reduced from 277 in 2008 and a peak of 282 in 2010, coinciding with

the Olympics in 2008 and Expo 2010 in Shanghai. Of the international association meetings held in

China in 2012, 83 were in Beijing (down from 98 in Beijing in 2008), 18 in Shanghai (down from 77 in

2010) plus 70 in Hong Kong. (Source: UIA international Meetings Statistics Report for 2012).

It should be noted that, due to different qualification criteria, the ICCA international meetings

statistics for 2012 show different results, although they remain high figures for Asian countries. The

number of meetings for the top ten Asian countries is as follows:

Country Number of international meetings 2012

Japan 341

China 311

Korea, South 229

India/Singapore /Thailand 150

Taipei 117

Malaysia 109

Hong Kong 96

Indonesia 73

Source: ICCA International Meetings Statistics for 2012

Many associations are keen to expand membership in China and the collaboration needed to enable

cities to bid for more international association meetings in future is now developing well, yet the

rapid growth of the domestic meetings market means there is now more competition for availability

of venues and hotel rooms. It remains to be seen whether China will further erode Singapore's

market share of international meetings in future.

The move by the government in China to steer away from strong reliance on manufacturing to a

service based economy certainly seems to be providing a solid base for growth in the meetings

industry even though high end hotels have seen lower demand in recent months due to reduced

government spending. 68% of buyers from this research sample had organised 6,106 events in

China in the last twelve months, an average of 44 events each, a much higher figure than last year.

The average spend per buyer on events in China was $818,038 with overall spend on events in Asia

by all buyers in the sample $207,075,000. Mean spend per country per buyer throughout Asia was

$224,453 and mean budget per event $48,798, up from $45,877 last year.



60% of buyers had seen increased volume of events over the last 12 months and 55% predicted

continued growth over the next twelve months. 55% had seen increased budgets and 53% expect

continued increases. 57% said meetings and events business in Asia will increase in the next twelve

months and, 27% said it would stay the same.

The top issues affecting the meetings industry are business development and expansion, market

changes and increased demand, enviable concerns for many other parts of the world, yet these are

experienced alongside rising costs. Technology changes also feature highly and 66% say new

technology is shaping event content, 55% are using virtual meetings to extend audience reach and

62% use social media before, during and after meetings. The rapid development of many new cities

in China and increasing outbound event business make it unsurprising that 73% predict increasing

use of new destinations. Despite lower levels of government spending, the marketplace for meetings

& events in China and Asia is enjoying rapid levels of growth that exceed other regions of the world.



Research respondents

The key characteristics of the 455 respondents for this survey (300 buyers and 155 suppliers) are

shown below. The results from buyers holding events in Asia and suppliers active in Asia form the

main focus of the analysis outlined here.

Total number of respondents 455

Number of Buyers providing volume and value of events in Asia 214

Number of suppliers active in Asia 129

Base region for Buyers holding events in Asia

Asia 80.6%

Africa, Southern 0.9%

Americas 4.7%

Australasia 5.7%

Europe 7.1%

Gulf Middle East North Africa 1.0%

Buyer respondent types active in Asia

Agency/Third Party 57.9%

Corporate 18.7%

Government/Education 9.8%

NGO/Not for Profit/Charity 3.7%

Trade/Association/Society 6.1%

Other 3.7%

Supplier respondent types

Airline 7.2%

Conference or events venue 5.9%

Convention & visitor bureau 12.5%

Cruise line/luxury train 3.9%

Hotel(s) 8.6%

Destination management company 11.8%

Incentive destination 3.3%

National tourist organisation 3.9%



Supplier respondent types

Technology provider 14.5%

Media 5.3%

Meetings industry trade association 5.3%

Attractions and entertainment 7.9%

Suppliers client types

Corporations 80.3%

Government owned enterprise 59.2%

Government/Not for profit sector 55.9%

NGO (Non governmental organisation) 49.3%

Association/Institute/Society 45.4%

Agency 32.2%

Consultant 25.0%

Suppliers client types The top ten industry sectors in order of generators of events are as follows:

Top ten industry sectors

1. Pharmaceuticals/healthcare 32.9%

2. Automotive 32.2%

3. Financial/banking/insurance 31.6%

4. Manufacturing/industrial 31.6%

5. Electronics/communications 27.6%

6. Agriculture 26.3%

7. Government/administration 25.0%

8. Oil & Gas, utilities 23.7%

9. Arts & leisure 22.4%

10. Cosmetics 21.7%

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6. It is noticeable how much the national/domestic market has grown since last year with the most

popular cities in China for events as follows:

City Average number of events per buyer

Average budget spent in city US$

Average budget spent in city RMB

Beijing 12 $192,045 1,175,642

Guangzhou 11 $227,564 1,393,078

Hainan 14 $244,565 1,497,153

Shanghai 9 $180,093 1,102,475

Xiamen 10 $151,136 925,209

7. Outbound destinations for events organised by buyers based in Asia

The countries outside Asia attracting the most events and highest spend from buyers based in Asia

are shown in the tables below:

Country, North America

Number of events per country

Mean buyer spend per country US$

Mean buyer spend per country RMB

USA 637 $621,078 3,802,053

Canada 177 $253,000 1,548,790

Country, Europe Number of events per country



United Kingdom 357 $239,130 1,463,882

Italy 301 $709,000 4,340,285

France 221 $490,179 3,000,729

Russia 202 $154,167 943,764

Germany 170 $500,000 3,060,850

Country, Africa and GMENA

Number of events per country



UAE, Dubai 101 $203,750 1,247,296

Israel 46 $162,500 994,776

South Africa 34 $206,818 1,266,078

UAE, Abu Dhabi 31 $104,167 637,679

Egypt 19 $95,833 586,661

Country, Australasia Number of events per country



Australia 380 $480,469 2,941,287

New Zealand 186 $217,647 1,332,370

Exchange rate as at 280813



8. Buyers' top 10 countries for the NEXT 12 months by number of events show a very similar pattern

to the last twelve months as shown below. The predicted volume for countries outside Asia shows

changes to the last twelve months with France overtaking Italy and Switzerland more popular than

last year.

Buyers top countries in Asia for events next 12 months

Buyers top countries Rest of World for events next 12 months

China USA

Hong Kong Australia

Thailand France

Singapore United Kingdom

South Korea Germany

Japan Italy

Macao Canada

Malaysia New Zealand

Taiwan UAE, Dubai

Vietnam Switzerland

9. The market conditions experienced for the last twelve months and those forecast for the next

twelve months are shown in the tables below. Clearly the meetings market continues to grow rapidly

in China and Asia. Nearly two thirds of buyers saw an increase in the volume of events they were

involved in over the last twelve months and a very similar percentage forecast increased volume for

the next twelve months. 55% also saw increased budgets and 53% expect increases for the next

twelve months.

Buyers reported Change

Volume of events LAST 12 months

Volume of events NEXT 12 months

Increase 59.2% 55.5%

Same 29.6% 36.5%

Decrease 11.3% 8.1%

Buyers reported Change

Budget LAST twelve months

Budget NEXT 12 months

Increase 54.5% 53.3%

Same 34.0% 36.2%

Decrease 11.5% 10.5%

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CIBTM research report


Suppliers results

129 respondents were actively hosting events in Asia. Due to the varied make up of the sample the

results will be affected by where suppliers have hotels, venues etc. and should be treated with

caution.

The top five markets for suppliers active in Asia are as follows:

Country Percentage of suppliers ranking it as no 1 market

China 55.0%

Japan 7.8%

Hong Kong 4.7%

Singapore 3.9%

Vietnam 3.9%

The 129 suppliers hosted 2,577 events in China, with top cities as follows:

City Number of events hosted

Beijing 808

Shanghai 695

Xiamen 334

Qingdao 163

Guangzhou 123

Change experienced

It is interesting to see that suppliers' views of the market are more reserved than the buyers with

lower levels of increase experienced in the last twelve months and lower increases predicted for the

future.

Increase Stay the same

Decrease

In the last 12 months did the number of events you host/accommodate increase or decrease from the previous 12 months?

44.8% 31.4% 23.8%

Do you expect the number of events you host/accommodate to increase or decrease in the next 12 months?

46.6% 36.9% 16.5%

How do your clients' event budgets compare with their budgets for the previous 12 months?

31.5% 30.6% 38.0%

Clients' events budgets for the next 12 months 30.8% 40.4% 28.8%

CIBTM research report


Suppliers views of how the following items will change meetings and incentives business over the next twelve months Issue for Change Increase Stay the same Reduce

The volume of events you host 51.0% 30.8% 18.3%

Budgets for individual events 30.7% 39.6% 29.7%

Marketing and promotional budgets 41.0% 39.0% 20.0%

Increasing use of new destinations for events 48.0% 42.0% 10.0%

Compared with the buyers' views outlined on page 15, suppliers agree that volume of events will

increase. However they are far more cautious about budget increases and use of new destinations. It

will be interesting to compare in next year's survey whose predictions are more accurate.

020913 cibtm research report final

Business

Transcript of 020913 cibtm research report final