A Study on the Development Features and Countermeasures of MICE Industry in China: A Case of Changning Areas in Shanghai A Study on the Development Features and Countermeasures of MICE Industry in China:
Background Recently MICE industry in China has grown in 20 % annually. MICE industry in Yangtse River Area is a leading one in China. MICE industry in Shanghai is a dragon one in Yangtse River Area. There is an un-substitute position for Shanghai among MICE industry because of its central positions in trade and finance in China.
Background There are six urban areas in Shanghai such as Xuhui, Changning, Putuo, Zhabei, Hongkou, and Pudong new area. Changning area is one part of central urban areas in Shanghai It is meaningful for Changning area to develop its MICE industry To advance the competitive advantages in local urban development To drive the third and service industry in local area
Background Purposes
Purposes To analyze the current features of MICE industry in Changning area To study the SWOT of MICE industry in Changning area To put forward countermeasures of MICE industry in Changning area
Background Purposes Data Sources
Data Sources Shanghai Municipal Tourism Administrative Commission Second-hand Data Yearbook of Shanghai Economy Questionnaires & Interviews from January 1 to April 30, 2005 First-hand Data Local Star-level Hotels & Travel Agencies
Background Purposes Data Sources Analysis
Analysis The current development of MICE industry in Shanghai
Number of International Meeting in Shanghai 350 Number 300 250 292 312 200 150 100 50 0 210 2002 2003 2004 There were 312 international conferences in 2004 with increase of 53% comparing to those in 2003, and 10% to those in 2002.
The Current Development of International Conferences in Shanghai International Conferences Company Conferences Association Conferences Special Forum Items Number +% Number +% Ratio Number +% Ratio Nu mb er +% Rati o The number of company conferences showed the increasing tendency while association and special workshops decreasing in Shanghai. 2002 292-83 - 28.4 63-21.6 127-43.5 2003 210-28.1 42-49.4 20.0 45-28.6 21.4 104-18.1 49.5 2004 312 52.9 135 221 43.2 55 22.2 17.6 117 1.3 37.5
The Development Scales of International Conferences in Shanghai (Unit: attendees) Over 1000 501-1000 301-500 101-300 51-100 Below 50 Item s Number % Number % Number % Number % Number % Nu mbe r % 2002 6 2. 0 2003 3 1. 4 2004 9 2. 9 14 4. 8 7 3. 3 23 7. 3 21 7.2 103 35. 3 11 5.2 69 32. 9 34 10. 9 40.1 40. 1 49 16. 8 In 2004 there were 2.9% of international conference for over 1000 attendees, 7.3% for 500-1000 44 21. 0 attendees, 51% for 100-500 attendees, 17.7% for 50-100 attendees, and 21.5% for below 50 attendees 54 17. 3 72 24.7 48 22.9 67 21.5
The Duration of International Conferences in Shanghai (Unit: Days) Over 6 days 3-5 days Below 3 days Items Number % Number % Number % 2002 41 14.0 101 34.6 150 51.4 2003 21 10.0 109 The duration of three to five-day 52.0 conferences 73 showed the rising tendency while up 35.0 six-day and down three-day conferences had been decreased. A Study on the Development Features and Countermeasures of MICE Industry in China:
The Current Development of Exhibition Industry in Shanghai Year 2001 2002 2003 Number 278 314 348 Areas (10,000 M 2 ) 162.07 321.23 224.35 The number and areas of exhibitions in Shanghai had been 1 st position in all cities of China.
Analysis The current development of MICE industry in Shanghai The current development of MICE industry in Changning area
The Number and Attendees of Meetings in Changning Area of Shanghai Year 2000 2001 2002 2003 2004 Number 1895 2164 3303 4678 6425 Attendees In 2004 there were over 931046,400 various 107750 types of 123856 170794 261216 meetings in Changning area with over 260 thousand attendees.
The Reception Establishment of MICE Industry in Changning Area of Shanghai Year 2000 2001 2002 2003 2004 Items No. % No. % No. % No. % No. % MICE Centers 3-3 - 3-3 50 4 Hotels Five-star hotel 3 23.1 3 20.0 4 20.0 5 25.0 6 Four-star hotel 5 20.0 5 18.5 5 18.5 6 20.0 6 Three-star hotel 7 7.9 8 7.3 9 7.8 12 9.8 13 Travel Agencies International 4 4 4 9.8 6 14.6 6 Domestic 31 32 37 6.8 35 5.7 38 Reception Conferences Reception Exhibitions The MICE establishment in Changning Area tended to be top and middle-top level in Shanghai. - - - - - - - - - - - - 114 41.0 117 40.6 90 25.9 - - A Study on the Development Features and Countermeasures of MICE Industry in China:
Segmentation of MICE Establishment of Changning Area in Shanghai Functions Number of Enterprises for Survey Number of Enterprises for Functions Putting as theatre style Capacity for over 1000 attendees 26 1 3.8 Capacity for 701-1000 attendees 26 1 3.8 Capacity for 501-700 attendees 26 5 19.2 Capacity for 301-500 attendees 26 2 7.7 Capacity for 201-300 attendees 26 9 34.6 Capacity for 101-200 attendees 26 11 42.3 Capacity for below 100 attendees 26 2 7.7 Putting as teaching style Capacity for 701-1000 attendees 26 1 3.8 Capacity for 501-700 attendees 26 1 3.8 Capacity for 301-500 attendees 26 80.8% had big screen 4 and hightime projections, 11 15.4% had 42.3 15.4 Capacity for 201-300 attendees 26 6 23.1 Capacity for 101-200 attendees 26 Capacity for below 100 attendees 26 establishment 2 such as 7.7 Ladder Style 26 simultaneous interpretation, 0 - Cutting off 26 10 38.5 Big Screen 26 voting implement, 21 and longdistance video frequency, 21 which 80.8 80.8 High-time Projection 26 Simultaneous Interpretation 26 4 15.4 could be rent for clients. 50% had Implement for Voting 26 0 - Long-distance Video Frequency 26 internet pages. 0 - Internet Stations 26 13 50.0 A Study on the Development Features and Countermeasures of MICE Industry in China: Ratio (%)
Analysis of MICE Establishment of Changning Area in Shanghai Items MICE Center (4) 5-star hotels (6) 4-star hotels (6) 3-star hotels (10) Ratio No. % No. % No. % No. % Putting as Theatre Style For over 1000 attendees 1 25 For 701-1000 attendees For 501-700 attendees 1 25 2 33 2 33 - - For 301-500 attendees 1 33 1 17 - - For 201-300 attendees 2 33 2 33 5 50 For 101-200 attendees 1 25 1 17 1 17 2 20 below 100 attendees 1 25 1 10 Putting as Teaching Style For 701-1000 attendees 1 25 For 501-700 attendees 1 17 - - For 301-500 attendees 2 33 2 33 - - For 201-300 attendees 1 25 1 17 3 50 1 10 For 101-200 attendees 1 25 3 50 1 17 6 60 For below 100 attendees 1 25 - - 1 10 Ladder Style - - - The - relative - large-capacity - - - Cutting off 1 25 4 conference 67 4 establishment 67 1 10 Big Screen 2 50 5 83 6 100 8 80 High-time Projection 3 75 5 were 83 mainly 5 in four-star 83 8 and 80 Simultaneous Interpretation 1 25 3 50 - - - - five-star hotels and Implement for Voting - - - - - - - - Long-distance Video Frequency - - - exhibitions. - 1 - - - Internet Stations 3 75 4 67 5 83 1 10 A Study on the Development Features and Countermeasures of MICE Industry in China:
Comparison of Areas for Some Exhibitions in Shanghai Name Commercial Town of World Trade International Exhibition Center Agriculture Exhibition Center Commercial Building of New Jinjiang Guangda Exhibition Center Shanghai Exhibition Center International Conference Center New International Exhibition Center Areas (10,000 M 2 ) 2.5 Floors Establishment Notes 1 st, 3 rd, 4 th floor 1.2 2 floors 0.76 0.35 2 exhibition halls 2 exhibition halls 8 conference room, 7-floor functional halls, For over 1000 attendees 3 conference room, For 200 attendees of maximum 1 conference room, For 90 attendees of maximum Many conference rooms, For 200 attendees of maximum Changning in Puxi of Shanghai, open in 1997 Changning in Puxi of Shanghai Changning in Puxi of Shanghai Changning in Puxi of Shanghai 3.5 3 floors - Puxi of Shanghai 2.0 2 floor - Puxi of Shanghai 0.3 1 floor 10 conference rooms The location of exhibitions in Changning area were relatively concentrated in the western Shanghai. Pudong of Shanghai, open in 1999 8.1 1 floor For 200 attendees Pudong of Shanghai
SWOT Advantages Weaknesses Opportunities Threats
Advantages critical node to connect Shanghai with other cities in Yangtse River with Hongqiao international airport inside it one of three economic development areas in Shanghai with unique features of the third industry in China the earliest one with MICE establishment in Shanghai
Uprising of MICE establishment in Pudong area Weaknesses The number MICE places in Changning area accounted for 50% in Shanghai with only 25.9% reception. There were differences between domestic& international in quality, capacity, and management of Changning area There were no certificated PCO and DMC in Changning area
Competitions from those of new MICE establishment in Pudong new area of Shanghai Threats Competitions from those of Hong Kong, Guangzhou, and Shenzhen in the areas of Pearl River Economic Circles Competitions from those of Jing-Jin-Tang in the areas of Surrounding Bo Sea Economic Circles
A lot of international high-level conferences brought by a lot of cross-national companies The established MICE cooperations between Shanghai and Hong Kong Opportunities A lot of domestic conferences annually held by civilian enterprises in Yangtse River Areas Chances brought by 2010 Shanghai World Expo
Countermeasures General Strategies To combine MICE industry in Changning area with total industrial structures in Shanghai To become one of regional commercial, MICE and service centers in Shanghai To be one of the most important nodes in the areas of Yangtse Rivers To develop MICE industry in special tourism ways
Countermeasures Market Positioning international conferences by international enterprises in Shanghai and in Yangtse River Areas domestic conference by those in Yangtse River Areas and China exhibitions with life-style and special ones
Countermeasures Integer Combination to combine conference with exhibition to combine exhibition with related industries to combine exhibition with environment to combine enterprise behavior with governmental guide
Countermeasures Incentive Tourism to combine incentive tourism with conference to combine incentive tourism with governmental guidance
Countermeasures Sales Promotion to actively join the famous special international exhibitions to have stable MICE professionals to be ready to have new information
Countermeasures Invitation Promotion Debouch Promotion Channel Promotion Settling Institutions
Further Discussion Further Case study about MICE industry in Changning Quantity study about MICE industry in Changning
Discussions (1). What are the features of Chinese MICE tourism industry according to materials and the discussion in your group? (2). If you are a CEO of Chinese MICE company, how could you make marketing policies according to different features on the base the tourism marketing theories you had learned before?
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