meeting industry in the eumeeting industry in the...

Meeting industry in the EUMeeting industry in the EU -the role played by destinations

Magda Antonioli CoriglianoMilan - Italy

12th European Tourism Forum

Magda Antonioli Corigliano

Vilnius, 17th – 18th October 2013

agenda:gEvents and the MICE industry: what are we talking about?g

Facts and figures: an issue of concernFacts and figures: an issue of concern

The MICE industryThe MICE industry main trends

The MICE industrya driver of economic, social and cultural development

The MICE industrytips for the future


tips for the future

Events and the MICE industry: h t t lki b t?what are we talking about?


Events?Events?Unique and transient occurrences,

f d iseparate from everyday experience.

Every event is a unique blending of its duration, setting, management and people.

for organizers for attendees

one-time or infrequently occurring event outside normal

programs or activities of the

an opportunity for a leisure, social and cultural experience

programs or activities of the sponsoring or organizing body

outside the normal range of choices or beyond every day

experience [Getz 1997]


[Getz, 1997]

Events - MICE Industryy

ConferencesEvents can be segmented

di t th f ll i f tConferencesCongressesConventions

according to the following features:

focus purpose

Exhibitions ExpositionsEvents

initiator of the event timing location Events

FairsFestivalsH ll k

audience size stakeholders

HallmarksIncentivesMeetings MICE IndustrySeminarsWorkshops

(business events)


…

“The Meetings, Incentives, Conventions and Exhibitions (MICE) industry is one of the key drivers of tourism ( ) y y

destination development and an important generator of income, employment and foreign investment.

Beyond economic benefits, the MICE industry presents opportunities for knowledge sharing, networking and capacity building making it an important driver forcapacity building, making it an important driver for intellectual development and regional cooperation.”

[T l b Rif i UNWTO]


[Taleb Rifai, UNWTO]

Business travel and the MICE industrywhy is it important?why is it important?

Business purposes14

7

Leisure recreation and holidays Business purposes generated 14% of worldinternational tourist arrivals (2012)

52

14 Leisure, recreation and holidays

VFR, health, religion, other

Business arrivals (2012)27

Business

Not specified

[UNWTO] Business travel

spending generatedspending generated 24% of world travel and tourism GDP (2012)

24

Leisure spending

Expected growth: 3,2% in 2013 4,6% in 202376

Business spending


[WTTC]4,6% in 2023

Business travel and the MICE industrywhat is the relationship?what is the relationship?

74% of business travel is dedicated to meetings:

29% h31

To work on-site at a customerofficeInternal meetings/trainings

29% meetings with suppliers/partners/customers

20% i t l ti

23

13

1131

Meetings with suppliers/partners

Meetings with customers

20% internal meetings

25% external meetings (conferences/conventions/

2014

External conferences/conventions

External trade exhibitions

(conferences/conventions/trade exhibitions and incentives)

15 To manage internal offices

Incentive


[WTTC]

Business travel and the MICE industrywhy is it important?why is it important?

… business travel:

improves global corporate productivity yielding -on average- an investment of 10:1

1 unit of business travel spending = incremental industry sales of 10 units

…but 7,9:1 in Europe11,9:1 in Americas9 4 1 i A i /P ifi9,4:1 in Asia/Pacific

drove 1/3 of global trade growth over the last 10 years

created over 400 mln jobs from 2000 to 2007 (= 20% of global employment growth)


[WTTC]

MICE travellers and the destinationhow do MICE travellershow do MICE travellers

impact on the destination?

extendingattending the

event and Stay extension and partners’ their stay

before/after the event

making expenses connected/not

connected to the event

y pattendance generate additional income for the destination in terms of expenditure in:

b i returning to

event

hospitality (40%) cafés and restaurants (10 - 20%)

being accompanied

by partner before/during/

returning to the destination (also with their family/friends)

f l i

transports (6 - 8%) arts and culture (8 - 10%) shopping (30%)

before/during/after the event for leisure

purposes


The MICE Industry key factors in choosing the destinationkey factors in choosing the destination

The destination is usually the location of the company’s: headquarters / major installation significant number of buyers / key suppliers

h i l i

meetings

other commercial interestsSince these meetings occur in a specific place for a specific reason, destinations’ selling policies do not really influence the choice of one destination with respect to another

competitive 4/5 hotels (price drives decisions!) competitive 4/5 hotels (price drives decisions!) quality service and food attractiveness (fashionable, cultural and exotic appeal)

incentivesappeal) unique experiences at reasonable costs accessibility and safety experience with the incentive market (DMCs)


experience with the incentive market (DMCs)

[Advito, Benchmark Hospitality International, SITE International Foundation, UNWTO]

The MICE Industry key factors in choosing the destinationkey factors in choosing the destination

quality hotels (3–5 star) quality convention centre with large capacity and space flexibility air accessibility

li d i

conventions

quality ground transportation quality services (including PCOs and DMCs) destination appeal (image)

t l l t (l l h t d t) strong local support (local host and government) safety and security

close proximity to major markets close proximity to major markets strong attendance by buyers absence of similar event air accessibility

exhibitions air accessibility hospitality capacity near the venue sponsor support efficient staging


efficient staging space rental cost[ICCA, UFI, UNWTO]

Facts and figures: an issue of concernFacts and figures: an issue of concern


International Associations’ Conventionsnumber of meetingsnumber of meetings

+ 63% in 10 years8000

10000

+ 63% in 10 years

market growth increase in research

6000

8000

increase in research investments

2000

4000

02002 2003 2004 2005 2006 2007 2008 2009 2010 2011

…however ICCA collects data on meetings: organized by international associations taking place on a regular basis

Incomplete picture!


[ICCA] rotating between at least 3 countries

International Associations’ Conventionsannual percentage growth rate (last 10 years)

8.9

8.6

7.7

The industry keeps growing despite economic and other crises

5.4

2 6

Different results according to geographic areas

2.6

1.4 BRICS countries lead the growth in Asia/Pacific and S th A i i

rope

a/P

acif

ic

th eric

a

th eric

a

ca erSouth America regions

Eur

Asi

a

Nor

tA

me

Sou

Am

e

Afr

ic

Oth


[ICCA]

International Associations’ Conventionsregions’ market share by number of meetingsregions’ market share by number of meetings

Europe: first world Europe: first world region for number of association meetings hosted3,13hosted

First 10 countries:USA, Germany, Spain,

10,9

10 Europe

Asia/Middle East

North America USA, Germany, Spain, UK, France, Italy, Japan, China, Brazil, Switzerland

54

19

South America

Africa

Oceania

First 10 cities:Vienna, Barcelona, Paris,

[% value, ICCA, 2010] Berlin, Singapore, Madrid, Istanbul, Lisbon, Amsterdam, Sydney


International Associations’ Conventionssize of meetings by number of participantssize of meetings by number of participants

50% of association meetings have 26,6

8,45,1

50-149

between 150 and 449 participants

28% f i ti

,

14,7150-249

250-449

500-999 28% of associations

meetings have more than 500 participants

19,625,6

1000-1999

>2000

[% value ICCA 2010][% value, ICCA, 2010]


Exhibitionsindoor exhibition capacity: regional trendsindoor exhibition capacity: regional trends

+7% 15 countries = 80% space:USA Chin Ge m n It l

12

14

16 USA, China, Germany, Italy, France, Spain, Netherlands, Brazil, UK, Canada, Russia, Switzerland Belgium Turkey

6

8

10

12+5%

+38%

Switzerland, Belgium, Turkey, Mexico

mil2

4

6

+7% +16% -6%

mil. sq.m. 0

Europe NorthAmerica

Asia/Pacific SouthAmerica

Middle East Africa

[UFI]

50% 26% 16% 4% 2% 2%

48% 24% 20% 4% 2% 2%

Market shares

2006 2011


[UFI] 48% 24% 20% 4% 2% 2%

Exhibitionsexhibition space rented: regional trendsexhibition space rented: regional trends

-10%

40

50 - 6% in 2 years

20

30

40-7%

+4%

mil

10

20

+10% +4% +1%

mil. sq.m. 0

Europe NorthAmerica

Asia/Pacific SouthAmerica

Middle East Africa

[UFI]

49% 26% 18% 4% 2% 1%

47% 26% 20% 4% 25 1%

Market shares

2008 2010


[UFI] 47% 26% 20% 4% 25 1%

The MICE industryi t dmain trends


The MICE Industry – main trendsbudget constraintsbudget constraints

The MICE industry reflects worldwide and regional economic trends. How do y glower available budgets for both events’ organizers and attendants affect the MICE industry?

preference short haul/domestic destinations (from global to national, from national to regional meetings);

From the organizers’ g );

shorter booking windows; shorter length of events (not in Asia!); reduction of side events;

perspective

price-cut strategies: attention on prices rather on quality; risk for congress destinations competing on global attractiveness rather than only on economic factors.


The MICE Industry – main trendsbudget constraintsbudget constraints shorter length of stays (not in Asia!);

lo e n mbe of attendees (not in A i !)From the lower number of attendees (not in Asia!); shorter or less tourism-related activities/stays before/after events; less spending on attendee related services in

From the attendees’perspective

less spending on attendee-related services in venues (such as food concessions or business center).

From the venues’

search for new revenue streams: IT services (audiovisual equipment rental, internet and IT services), advertising, upgraded food and

perspective), g, pg

beverage, parking, security, cleaning services, hosting other types of events (i.e. cultural,...); investment in renovation rather than building gand expansion activities; growing competition with not specialized venues (i.e. hotel operators, aquariums, ...).


The MICE Industry – main trendsother issuesother issues

use of social media to increase the events’ value;IT and digital use of social media to increase the events value; increase of (face-to-face / virtual elements).

IT and digitalattendees

almost 80% of meeting planners and suppliers (in EU, Canada, USA) claim to be somewhat or very active in CSR;

environmentaland CSR issues ;

however price issues are still more relevant.and CSR issues

influence the choice of destinations (BUT it can be an advantage: major hotel brands located in regions with political instability are often chosen

security andstability

based on the perception amongst meeting planners that they offer a higher level of security)

y


The MICE industrya driver of economic, sociala driver of economic, social and cultural development


MICE as a driver of future developmentMICE as a driver of future development The MICE industry is recognised as a driver of economic, social and cultural development worldwide as it:

creates added value for tourism and enhance the tourism economy, mainly in the low season (i.e. business events’ visitors are not only among th t l ti t i t t b t th t d th i t d/the most lucrative tourist segments but they can extend their stay and/or return with family and friends / festivals and promotional events as showcase of excellence in the creative industries…)

creates jobs and retrains workforces increases trade through the promotion of international collaborations

and the support of business and professional networksand the support of business and professional networks attracts investments by promoting the profile of hosting cities/regions provides opportunity for destinations’ regeneration, expansion and growth

(i e infrastructure and services development)(i.e. infrastructure and services development) spreads knowledge and enhances innovation and creativity nurtures community cohesion

Magda Antonioli Corigliano[IMEX Politician Forum]

The MICE industryti f th f ttips for the future


The MICE Industry – Tips for the futurel k f t f i tit tilack of support from institutions

What to do? Need for:

a long-term (at least 10-year) strategy to support the financial investments in

a o do eed o

Long term support is

support the financial investments in infrastructures required for the industry growth (the potential of the meeting industry for employment and economicLong-term support is

needed to enable the growth of the MICE industry

industry for employment and economic growth should be made evident)

industryengagement with all level of government (regional, national and international)

[IMEX P li i i F ]

data collection and research to support the industry advocacy


[IMEX Politician Forum] industry advocacy

The MICE Industry – Tips for the futureibilit d th iaccessibility and other issues

What to do? Need for:

•Accessibility visa requirements*

open skies policies**

more efficient visas’ issuing procedures

open skies policies travel taxes and air

passenger duties**( ti ) t l

fees’ and taxes’ rationalization (need for governments to offer marketing support for attracting visitors and to recognize (negative) travel

advisoriesfor attracting visitors and to recognize potential damage of taxes on travelers)

Local community

lack involvement social activities connected to the event and sharing the event knowledge with local

* visa issues are perceived mainly in North America** air travel issues are perceived mainly in North America Africa

lack of understanding universities and educational establishments


[IMEX Politician Forum]** air travel issues are perceived mainly in North America, Africa and Australia (Source: AIPC)

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