Case Study - Malaysia

Case Study - Malaysia

History Malaysia s is a relatively new player in the international business events sector 1998 KLIA international airport opened 2005 Opening of Kuala Lumpur Convention Centre Sarawak Convention Bureau established 2006 Low Cost Carrier Terminal opened 2009 Opening of Borneo Convention Centre 2009 MyCEB established 2010 MyCEB commences operations Malaysia Major Events established 2011 10 Year Economic Transformation Programme established 2013 MyCEB exhibition unit established

Malaysia s Events Strategy Achieve developed nation status by 2020 Business & Major Events recognised as high yield and high profile market segments RM18 Billion (US5.6 billion) economic value Business event visitors spend 3.2 times more than average tourist per trip

Malaysia s Event Strategy Benefits Beyond Tourism Knowledge exchange Attraction of world leaders, decision makers & experts in their field to Malaysia Export promotion Enhances international profile & reputation Creates ongoing legacy for the destination in research & education Optimization of infrastructure usage

Malaysia s Events Strategy Goals EPP#10: Business Events- RM3.9b incremental GNI and provide 16,700 jobs EPP#7: Major Events - RM0.4 b incremental GNI providing 8,000 jobs

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Organisational Structure Ministry of Tourism & Culture Board CEO Government Relations Finance & Admin Corporate Industry Development Marketing & Communications Malaysia Major Events Sports, Arts, Lifestyle & Entertainment Business Events Meetings, Conventions, Incentives, Exhibitions Product Development Market Research Representation: Europe, North America, Australia/NZ & China 61 fulltime staff

Scope International meetings, incentives, conventions, exhibitions B2B only International sports, arts, lifestyle and entertainment events B2B only Business Events Major Events

Case Study Malaysia BUSINESS EVENTS

Business Events Goals To secure regional and international business events (meetings, incentives, conventions and exhibitions) business for Malaysia. Established Malaysia as one of the most preferred meetings destinations in the world Increase international business tourism visitors from 5% (1.9M) to 8% (2.9M) To position Malaysia as Top 5 Asia Pacific destinations for international meetings Contribute RM3.9B incremental GNI & 16,700 jobs

MyCEB Model Role Model Convention Bureau for Asia region Semi autonomous Not for profit company limited by guarantee Shift from market and event services focus to SALES >> results focussed Recruit private sector expertise Financial model: government & private sector revenues

MyCEB Roles BUSINESS DEVELOPMENT Research, identify, qualify and prioritise new business leads & potential CONVENTION BIDDING Identify, assess and bid for regional & international conventions CORPORATE & INCENTIVE Secure regional & international incentive travel groups and corporate meetings TRADE EXHIBITIONS Attract, anchor, create & support growth of regional & international exhibitions

MyCEB Roles EVENT SUPPORT Maximise yields and success of international business events held in Malaysia INDUSTRY & GOVERNMENT RELATIONS Create cooperation sales & marketing platforms for the industry. Facilitate requests for support with government & industry MARKET RESEARCH Determine market profile, value and opportunities PR & MARKETING Develop Malaysia Business Event s brand & position in the international market

Major Bids Secured 2013 2016 Year Event Name Delegates 2013 Int'l Aids Society Conference on HIV Pathogenesis, Treatment & Prevention 5,000 2013 2013 IDA Annual Meeting 5,000 2013 Women Deliver Conference 4,500 2013 Global Women Summit 2013 1,000 2013 8th International Symposium on Digital Earth 1,000 2013 Wounds International Conference 2013 1,000 2013 Asian and Oceanic Society of Regional Anesthesia and Pain Medicine 1,000 2014 14th International Congress on Obesity 3,000 2014 Western Pacific Congress on Chemotherapy & Infectious Diseases 3,000 2014 Offshore Technology Conference Asia 6,600 2014 International Convention of Toastmasters International 2014 2,000

Major Bids Secured 2013 2016 Year Event Name Delegates 2015 Congress of the Asian Pacific Society of Respirology 2015 2,000 2015 Asia Pacific Conference of the Junior Chamber International 2015 5,000 2015 Asia Oceanic Congress of Obstetrics & Gynecology (AOCOG) 1,500 2015 127th International Olympic Council Session 2015 1,500 2015 Training and Development Organisations World Conference 2015 3,000 2015 Annual Meeting of the Asia Pacific Association of Cataract & Retractive Surgeons 1,500 2015 18th Human Genome Meeting 1,000 2016 Asia Pacific Congress of Allergy, Asthma and Clinical Immunology 1,500 2016 IEEE International Conference on Communications 2016 1,500 2016 ICCA Congress 2016 1,000 2016 Spine Week 2016 4,000

Case Study Malaysia COMPETITIVE POSITION

Competitive Position ICCA International Convention Rankings 2013 ICCA UIA MALAYSIA World Ranking 35 19 Asia Pacific Ranking 9 5 No. International Association Meetings 119 137 KUALA LUMPUR World Ranking 33 - Asia Pacific Ranking 10 - No. International Association Meetings 68 - ICCA International Congress & Convention Association

Competitive Position ICCA International Convention Rankings 2012 No. Meetings Average Size Total Participants 1 Japan 341 1 Hong Kong 1,146 1 Korea 192,589 2 China 311 2 Thailand 931 2 Japan 191,983 3 Australia 253 3 Korea 841 3 China 146,792 4 Korea 229 4 Malaysia 832 4 Australia 145,222 5 India 150 5 India 807 5 Thailand 139,650 6 Singapore 150 6 Chinese Taipei 665 6 India 121,050 7 Thailand 150 7 Australia 574 7 Hong Kong 110,016 8 Chinese Taipei 117 8 Japan 563 8 Malaysia 90,688 9 Malaysia 109 9 China 472 9 Chinese Taipei 77,805 10 Hong Kong 96 10 Singapore 436 10 Singapore 65,400 ICCA International Congress & Convention Association

Competitive Position UFI Trade Exhibition Rankings by Country 2012 Country Number of Trade Fairs Estimated Annual Size (Net SQM) 1 China 542 8,996,000 2 Japan 332 1,932,750 3 Hong Kong 113 876,500 4 Korea 156 826,750 5 India 138 810,750 6 Taiwan 74 629,250 7 Australia 176 536,750 8 Thailand 83 464,250 9 Singapore 86 308,250 10 Malaysia 64 296,000 11 Indonesia 49 189,750 12 Vietnam 55 150,250 13 Philippines 43 145,000 14 Macau 9 72,500 15 Pakistan 28 72,500 Total 1,948 16,307,250 UFI - The Global Association of the Exhibition Industry

Competitive Position Trade Exhibitions Strongest growth in SE Asia Malaysia has been restrained by lack of capacity Largely domestic focus International organisers looking for opportunities & partners in SE Asia Marketplace of 620,000 million Trade Fair Markets by Estimated net SQM sold 2012 (UFI) Thailand 464,250 Australia 536,750 Taiwan 629,250 India 810,750 Korea 826,750 Hong Kong 876,500 Singapore 308,250 Indonesia 189,750 Vietnam 150,250 Malaysia 296,000 Philippines 145,000 Macau 72,500 Pakistan 72,500 Japan 1,932,750 China 8,996,000 10% 8% 8% 7% 5% 0% -5% 5% 4% 3% 3% 3% 3% 2% 2% 1% 0% 0% -10% -15% -20% Estimated Size 2011 versus 2012 in % change (UFI) -14%

Case Study Malaysia KEY INITIATIVES

Association Development To strengthen Malaysia s national associations so that they may compete more effectively for international business and major events Launched 2013 Association Dialogue professional development programme 80 plus participants International engagement

Kesatria Malaysia Kesatria Malaysia aims to identify and secure local organisations to bid for and host international business events Launched January 2012 Now 35 Kesatria representing variety of industry sectors Association leaders/champions to share their knowledge & experience with potential local hosts. Goal : to secure 2 conference each, of average 800 delegates, which would contribute an estimated RM689 million in economic impact. Achievement: In 2012, generated 23 leads with estimated 46,939 delegates and RM561M in economic impact.

Industry Partner Programme IPP was designed to consolidate the industry into one voice and one collective resource to position and promote Malaysia internationally as a business events destination 300+ Industry Partners Co-operative sales and marketing programmes Industry dialogue groups Product development - Industry training & education - Industry networking - Innovation workshops - New product development

rawr Awards rawr Awards >>> to promote continuous improvement in business practices within the business events industry A joint initiative by MyCEB and Malaysia Association of Convention and Exhibition Organisers and Suppliers (MACEOS). Recognises outstanding achievements in various disciplines across the business events industry Over 80 submissions in first year

Results 2010 31 business events 39,600 delegates US$144m eco impact business is growing 2013 118 business events 70,578 delegates US$248m eco impact Government ROI 200: 1 Bid Conversion Rate: 70%+ Business event visitors have grown by 133% since 2003 to 1.3 million in 2012

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Our Scope MAJOR EVENT BIDDING Identify, assess and bid for new major international events HOME GROWN & HOME HOSTED - Identify and develop international potential CLUSTER EVENTS Develop cluster events around major international events REGULATION Identify and address issues which limit the attraction of major events

Malaysia Major Events Established 2011 Major Event Bidding Business Development Home Grown & Home Hosted Events Event Support Event Marketing Bid for and secure international sports, arts, cultural and entertainment events Sales missions & trade events to identify & develop major event opportunities Support the development of home grown and home hosted events for the international market Position Malaysia as a premier major events destination Maximise international visitor attendance to events held in Malaysia

List of Events Won YEAR NAME OF EVENTS NO. OF EVENT DAYS NO. OF TOURIST INT. DOMESTIC SPORTING EVENTS Dec 2012 Kids Golf World Championship 2012 5 2,500 5,000 April 2013 XTERRA Malaysia World Tour Championship Race 3 1,000 3,000 May 2013 Sudirman Cup 5 3,000 3150 Aug 2013 Barcelona Asia Tour 2013 1 8,000 80,000 May 2014 MuayThai World Championship 7 10,000 20,000 2016 World Table Tennis World Championship 7 4,000 1,000

List of Events Won YEAR NAME OF EVENTS NO. OF EVENT DAYS NO. OF TOURIST INT. DOMESTIC ARTS, LIFESTYLE & ENTERTAINMENT Dec 2012 Jennifer Lopez Live 1 3,000 15,000 Jan 2013 th 27 Golden Disc Awards 2013 2 6,000 14,000 Jul 2013 Australasian Debating Championship 7 1,200 2,000 Aug 2013 Metallica Live in KL 1 4,000 21,000 Se 2013 Asia Harley Days 6 5,000 10,000 Nov 2013 th 17 APHAC Hair and Make-Up Olympics 2 250 150 Jan 2014 Tropfest SEA 6 2,500 5,000 2015 World Universities Debating Championship 8 1,600 1,800

Competitive Position Competitive Attributes Strategic location Ease of doing business (less regulatory) English speaking, yet multi lingual Role model economy Diversifying economy Ease of access Proactive Convention Bureau Value for money Government support Cooperative industry Growing capacity Popular leisure destination Political stability Invest in sustainable future

Market confidence has led to a surge in infrastructure investment New Developments Malaysia is expected to improve its ranking and performance as new infrastructure developments come on stream i.e. airports, hotels, venues. In some sectors such as exhibitions there is pent up demand due to lack of capacity. The KLIA2, opening in 2014 will be the largest low cost carrier terminal in the world with an annual capacity of 45 million passengers. The terminal is located near to the existing KLIA terminal in Kuala Lumpur. New venue infrastructure includes: Kuala Lumpur Convention Centre, Kuala Lumpur Kuala Lumpur Redevelopment plans to add an extra 12,500 sqm of space mainly dedicated to exhibitions. Existing exhibition space 9,700sqm. Estimated completion by 2017. KLCC has over 12,000 hotel rooms within close proximity. New enclosed pedestrian bridges link hotels, retail and entertainment districts. MITEC, Kuala Lumpur 47,300 sqm exhibition centre, 3,635 sqm meeting space, 16 meeting rooms, multi purpose auditorium. St Regis, Kuala Lumpur 18,580 sqm of meeting space, 208 rooms. Located at KL Sentral. Opens November 2015 Movenpick Hotel and Convention Centre KLIA International Airport 333 rooms, 26,000 sqm of meeting space, including 1,330sqm ballroom, exhibit hall, multifunction rooms and boardrooms. Located Opens 2016 33

Market confidence has led to a surge in infrastructure investment New Developments Regional Malaysia SPICE, Penang Penang Waterfront Convention Centre, Penang Sabah Convention Centre RM300 million redevelopment: 3,400 sqm arena,4,600 sqm concourse, 4,800 sqm meeting & exhibit hall (divisible by 4) 12 meeting rooms,9,000 seat arena and sports complex, retail and restaurants, aquatic centre and hotel. Developer SP Setia. Scheduled opening 2015. RM346 million development. Partnership between Suntec International and IJM Land. 10,000 sqm multi purpose hall than can convert to 9,000 seat arena. Part of mixed development including hotel, residential and commercial buildings. Scheduled opening 2017. Proposed 42,151 sqm of space, 5,000 seat convention hall, exhibition hall, auditorium, ballroom & meeting rooms. Puteri Harbour Convention Centre, Johor 10,000 sqm exhibit space divisible by 4, plenary 2,570 sqm, ballroom 2,520 sqm, 14 meeting rooms 1,497 sqm, retail and parking. Opens 2017. Traders Hotel, Puteri Harbour Opened 2013. 286 rooms, 515 sqm ballroom plus 5 smaller meeting rooms. Adjacent to Puteri Harbour Convention Centre development. Sheraton Desaru Resort & Convention Centre, Johor Thistle Johor Bahru Part of Desaru Coast resort development including 845 hotel rooms golf course, theme park and convention centre, 1,240 sqm ballroom and 4 meeting rooms. Opens 2016 Opened 2012, 650 theatre seat ballroom divisible x 3 plus 8 meeting rooms, 328 rooms 34

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