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2 Introduction and Methodology Welcome to the IBTM Global Meetings Industry research China and Asia focus. This provides exhibitors, visitors and all those involved in the meetings industry with valuable information on buying trends, destination choice, budgets and volume of events in Asia. This summary of trends focuses on the SE Asia region and China in particular. Research into the meetings market in China was undertaken every year since However in 2011 this was widened into the IBTM GLOBAL Meetings Industry research for the Asia region to explore the trends and characteristics of the regional meetings market, tracking where business is coming from and which regions are most popular for meetings, conferences and events. An online survey was launched for buyers and suppliers in July 2013 with invitations to participate ed to the IBTM Global event planner (buyer) and supplier databases. Surveys were available in English for international buyers holding events in Asia and in Chinesee for the national market. The link to the online survey was also promoted via social media. It should be noted that the participating respondents are not identical from year to year and caution has therefore been applied in drawing conclusions on trends. In total there were 455 respondents made up of 300 buyers and 155 suppliers. 278 buyers were actively holding events in Asia. 214 buyers also provided volume and value figures for their events and they form the main focus of analysis outlined here. The results show a burgeoning meetings industry in China and Asia enjoying strong growth, offering great opportunities for everyonee working in the region. The findings should provide you with useful information and evidence to support your business strategy for developing business in China and Asia. Further information on the region can be found at com. Sally Greenhill Managingg Director, The Right Solution & Analyst of IBTM Global Meetings industry research The Right Solution/cibtm.com 28th August

3 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 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 Japan Korea Republic USA Belgium Source: UIA International Meetings Statistics Report for 2012 The Right Solution/cibtm.com 28th August

4 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. The Right Solution/cibtm.com 28th August

5 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. The Right Solution/cibtm.com 28th August

6 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% The Right Solution/cibtm.com 28th August

7 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% The Right Solution/cibtm.com 28th August

8 Full Research Results 1. 68% of buyer respondents active in Asia had organised events in China in the last twelve months, resulting in a total of 6,106 events in China, an average of 44 events each, a much higher figure than last year. 71% said they will hold events in China in the next twelve months. 2. The total spend in Asia by the buyer sample used (210 buyers) was $207,075,000. This excludes four buyers who reported budgets in excess of $10 million. The average spend per country was $224,453 and mean spend per event $48, The types of events being organised throughout Asia are as follows. Meeting types for buyers doing business in Asia 82.2% 73.4% 61.7% 54.7% 39.7% 32.7% 28.0% Meetings Incentive Travel Business Travel Conventions/ congresses Exhibitions Entertainment/ sporting/ special Product launches 4. Top countries for events in Asia, last twelve months The top countries for events for the buyers active in Asia in the last twelve months by overalll volume are shown in the chart overleaf. The table then outlines individual volume and budget per country. The Right Solution/cibtm.com 28th August

9 Buyers top countries in Asia, LAST 12 months 67.8% Percentage of all buyers active in Asia 36.0% 30.4% 28.5% 25..2% 21.0% 20.6% 19.2% China Hong Kong Thailand Singapore Korea, South Taiwan Japan Malaysia Country China Average number of events per buyer in country 44 Average annual spend per country US$ $818,038 Average annual spend per country RMB 5,007,783 Japan 6 $492,143 3,012,752 Indonesia 10 $417,241 2,554,224 Macao 6 $404,630 2,477,023 Hong Kong 7 $361,017 2,210,038 South Korea 6 $348,125 2,131,117 Singapore 10 $308,889 1,890,926 Malaysia 5 $290,909 1,780,858 Thailand 11 $261,161 1,598,749 Taiwan 8 $246,324 1,507,922 Exchange rate correct as at The Right Solution/cibtm.com 28th August

10 The chart below shows which outbound destinations are being used most by Chinese groups. Please note Hong Kong is included as a visa is required for entry. Outbound Asian destinations for Chinese buyers Hong Kong 41.7% Korea, South Thailand 35..4% 34.4% Singapore Taiwan Japan 30.2% 28.1% 27.1% Vietnam 22.9% Malaysia 22.9% Macao Indonesia 17..7% 21.9% Buyers Based in Asia 5. The mean spend per country in Asia is $224,453 and mean budget per event in Asia $48,798. The highest budget per event was in Sri Lanka at $113,580 and the lowest budget per event was for an event in Thailand at $23,158. The charts thatt follow show the differences between budgets per events for buyers based in Asia and the buyers based elsewhere bringing in events. The Right Solution/cibtm.com 28th August

11 Mean budget per event for Asian destinations (1 of 2) Macao Indonesia Japan Korea, South Hong Kong Sri Lanka China Nepal Taiwan $81,3911 $79,757 $43,317 $72,505 $61,968 $67,4066 $60,837 $57,142 $49,909 $53,924 $113,580 $51,613 $49,313 $51,468 $41,143 Global buyers $43,561 Buyers based in Asia $41, 927 $41,277 Mean budget per event for Asian destinations (2 of 2) Phillipines India Cambodia Singapore Malaysia Vietnam Maldives Thailand $40,385 $40,052 $45,423 $34,646 $43, 668 $30,276 $32,686 $30,,100 $31,838 $28,268 $20,333 $24,313 $26,3422 $23,158 $59,694 $66,586 Global buyers Buyers based in Asia The Right Solution/cibtm.com 28th August

12 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 Average budget spent Average budget spent events per buyer in city US$ 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 $151, , Outbound destinations for events organised by buyers based in Asia The countries outside Asia attracting the most events and highest spend from buyers based in Asia are shown in the tables below: Country, North Number of events per Mean buyer spend per Mean buyer spend per America country country US$ country RMB USA 637 $621,078 3,802,053 Canada 177 $253,000 1,548,790 Country, Europe Number of events per Mean buyer spend per Mean buyer spend per country country US$ country RMB 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, ,764 Germany 170 $500,000 3,060,850 Country, Africa and Number of events per Mean buyer spend per Mean buyer spend per GMENA country country US$ country RMB UAE, Dubai 101 $203,750 1,247,296 Israel 46 $162, ,776 South Africa 34 $206,818 1,266,078 UAE, Abu Dhabi 31 $104, ,679 Egypt 19 $95, ,661 Country, Australasia Number of events per Mean buyer spend per Mean buyer spend per country country US$ country RMB Australia 380 $480,469 2,941,287 New Zealand 186 $217,647 1,332,370 Exchange rate as at The Right Solution/cibtm.com 28th August

13 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 China Hong Kong Thailand Singapore South Korea Japan Macao Malaysia Taiwan Vietnam Buyers top countries Rest of World for events next 12 months USA Australia France United Kingdom Germany Italy Canada New Zealand UAE, Dubai 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 Volume of events Volume of events Change LAST 12 months NEXT 12 months Increase 59.2% 55.5% Same 29.6% 36.5% Decrease 11.3% 8.1% Buyers reported Budget Budget Change LAST twelve months NEXT 12 months Increase 54.5% 53.3% Same 34.0% 36.2% Decrease 11.5% 10.5% The Right Solution/cibtm.com 28th August

14 10. The average number of attendees at events in Asia is 250 with most popular sizes of events shown in the chart below: Average number of attendees at Asian events % 6.9% 6.4% 12.4% Buyers active in Asia 24.8% 27.7% % % % When asked if more delegates had attended their events in the last twelve months responses were as follows: Did you have more/fewer delegates attending your events in the previous 12 months? The same, 38.6% Fewer, 16.3% More, 45.0% The Right Solution/cibtm.com 28th August

15 The origin of attendees at events in Asia over the last twelve months is as follows: Asia North America Other Europe Australasia / Pacific UK Germany France Russia South / Central America Gulf / Middle East Other South Africa Africa ( ex. South Africa) Caribbean 21.2% 20.7% 20.2% 18..2% 17.7% 15.8% 9.4% 8.9% 6.4% 4..9% 4.4% 3.9% 1.5% 81.3% 11. Buyers and suppliers made many comments on the issues having most impact on their event businesss in the next twelve months. They can be summarised as follows: Business development and expansion Market changes and increased demand Rising costs air fares, hotels, venues Technology The economy in China and globally New event styles and new destinations Government policy Global political stability These vary from the comments made in other regions of the world where the economy is still dominating their concerns and technology is the next most important issue. The increase in demand as the market grows places very different pressures on organisers and suppliers in China and Asia. The laws of supply and demand are clearly affecting costs along with inflation. It will be interesting to see how the increased supply affects prices as all the new hotels open in the next few years. The Right Solution/cibtm.com 28th August

16 CIBTM research report Buyer expectations for next twelve months The chart below shows the high percentages of buyers active in Asia forecasting increasing use of new destinations and new technology shaping their events. 54% predict increased marketing and promotional budgets, a much higher figure than any other IBTM research region. The percentage predicting increased attendees reduces to 54% and those seeing increased attendees from outside the host country drops down to 43%. 53.9% 54.3% 43.2% Increase 66.1% 73. 1% Stay the same Decrease 32.2% 28.3% 41.4% 13.9% Marketing and promotional budgets 30.5% 3.4% New technology shaping event content 17.3% 15.4% Attendance Percentage of numbers at your attendees from events outside the host country 25. 7% 1.1% Increasing use of new destinations for events The Right Solution/cibtm.com 28th August

17 CIBTM research report Use of new technologies It is interesting to see from the chart below the differences between use of new technologies between buyers and suppliers with 62% of buyers using social media to communicate before, during and after meetings yet only 24% of suppliers doing so. Virtual meetings show significant use at 55% as the hybrid meeting uses virtual elements to extend audience levels. It is interesting to see 32% are using audience response systems, a lower figure than 41% last year, perhaps due to increased use of social media at the meeting to provide similar information. 30% of suppliers are using 'apps' which has pushed QR codes use down to 5%. Smartphones' capabilities may have overtaken use of location aware software with just 8.5 of buyers and 9% of suppliers using it. Crowdsourcing wasn t quoted last year yet already 30% of suppliers are using it. Use of new technologies Asian based respondents Social media to communicate before/ during/ after the meeting Virtual meetings Audience response systems Cloud computing to assist with event management Apps for providing delegate information Holograms QR codes (specific matrix barcodes) for meetings management Location aware software e.g. Foursquare Crowdsourcing 24.4% 10.3% 16.7% 21.3% 17.0% 12.8% 17.0% 5.1% 15.6% 9.0% 8.5% 7.8% 31.9% 29.5% 29.5% 55.3% 61.7% 69.2% Suppliers Buyers The Right Solution/cibtm.com 28th August

18 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. In the last 12 months did the number of events you host/accommodate increase or decrease from the previous 12 months? Do you expect the number of events you host/accommodate to increase or decrease in the next 12 months? How do your clients' event budgets compare with their budgets for the previous 12 months? Increase Stay the Decrease same 44.8% 31.4% 23.8% 46.6% 36.9% 16.5% 31.5% 30.6% 38.0% Clients' events budgets for the next 12 months 30.8% 40.4% 28.8% The Right Solution/cibtm.com 28th August

19 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. The Right Solution/cibtm.com 28th August

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