THE BUSINESS OF MEETINGS

BATTLING BACK: THE BUSINESS OF MEETINGS

AS THE REGIONAL MEETINGS MARKET HITS A PIT STOP, MARKETERS GET DOWN TO BUSINESS. LUKE CLARK REPORTS

The relative health of the Meetings and Events (M&E) market in Asia Pacific is a clear sign of the industry’s newfound resilience. Despite recent upheavals, there remains tempered optimism from M&E players unwilling to shake off the confidence from five solid years of growth. Their task is now to persuade clients that the downturn actually represents an opportunity to enjoy meetings and events at exceptional value for money.

DOWN BUT NOT OUT

The depth and intensity of the current crisis may be unprecedented. Messe Berlin, organiser of the ITB Berlin travel exhibition since Cold War days, launched its ITB Asia spin-off last year. But now, even seasoned campaigners are travelling blind.

“With the current economic crisis, the situation has changed fundamentally. The effects of the global economic and financial crisis mean that no reliable forecasts can currently be made,” says Whey Whey Ng, general manager of Messe Berlin in Singapore.

“There has been a softening of demand for M&E in all major source markets, such as the US, Europe, Japan, Australia, Hong Kong and Singapore.” However, ITB Asia expects a small increase in its October event numbers, down from the expected double-digit growth.

Yeoh Siew Hoon, an experienced industry journalist and organiser of ITB Asia’s partner conference, Web In Travel, says M&E traffic has dropped in many Asian cities. “Anecdotal evidence from hoteliers I speak to suggests a 30 to 50 per cent drop in corporate events in their hotels. Business hotels in cities like Hong Kong, Singapore and Shanghai have been most affected, while Bangkok’s situation has been aggravated by the political uncertainties there.”

Having flown so close to the sun on rates for five years, hoteliers are now watching Newton’s Law in action. “We’re a cyclical business. The pace at which things change is greater, but the hope is that the upturn will come rapidly too,” says Andrew Flack, Hilton Hotels Asia Pacific’s vice-president, sales and marketing.

RAPID RESPONSE

Fortunately, technology makes for rapid response. Flack adds: “This is the first region-wide recession of the internet era – customers are more educated that the internet is the place to get a deal.” Hilton’s response was a ‘Meetings for Free’ promotion for bookings until 30 June, offering complimentary meetings with residential bookings, typically equating to savings of 25 per cent.

“It needed to be substantial and easy to communicate, both from us to the customer and within our organisation,” says Flack. In the first nine days, Hilton received 541 enquiries, exceeding early expectations.

The market needed help. In February, US-based Meetings & Conventions magazine surveyed 135 meeting planners, with 52 per cent saying the mass media backlash against meetings was influencing their decision making, with 41 per cent having changed destination or venues to appear more economical.

Monica Lee-Müller, deputy managing director of the Hong Kong Convention and Exhibition Centre, says while the centre has seen a 10 per cent drop in visitors, exhibition traffic remains positive. “Conferences and exhibitions are more business-centric. People have to do more face-to-face business now.” Catering was harder hit. “The financial institutions and banks are the big spenders who party a lot. Now they’re really controlling perceptions.”

Such perception management is evident in Australia too. “With such an air of uncertainty, I don’t believe over-the-top, lavish events are the right message for any business to be sending,” says Brooke Ravenscroft, senior associate for Congress and Events at Amgen Australia. With the focus on efficiencies, she said special offers gave M&E planners the ammunition to defend their spending.

“There is huge opportunity for savings in the marketplace right now, and pressure on meeting planners to generate savings. I would much rather choose a venue offering venue space at a steal, as opposed to cutting the number of invitees.”

One reassuring sign for Asia has been the pace with which its destinations have responded. CEI Asia magazine reports that Hong Kong, Malaysia and Singapore have already moved to offer direct sweeteners to potential buyers.

Singapore Tourism Board (STB) recently launched a “2009 Reasons to enjoy Singapore” global marketing campaign, including M&E promotions and pledges to defray a higher proportion of event project costs. “Governments are acutely aware of how much indirect cash M&E visitors inject into their local economies throughout the year,” CEI Asia editor Shannon Sweeney was quoted as saying at the time.

New assistant chief executive for the STB group covering business travel and MICE, Melissa Ow, says destinations can help organisers upscale the attractiveness of events, including helping bring in top speakers for seminars on weathering the downturn.

Rachael Peedom, director of meetings and events for CWT Asia Pacific, says clients want better visibility of M&E spending and potential savings.

“We’re seeing a very big shift. Clients are now realising they need to gain better control over their M&E spend to help identify the potential for savings, which is huge, particularly in the current environment.”

MARKETING AND M&E

Essential for marketers meantime will be positioning meetings as integral to a company’s profitability. In its April annual survey of US corporate sales and marketing executives, Meeting Professionals International’s EventView 2009, found that of all marketing choices, event marketing provided respondents the greatest return on investment. The survey showed 52 per cent of respondents chose event marketing as the discipline that best accelerates and deepens relationships, while also being seen as the marketing discipline providing the greatest ROI (according to 31 per cent of respondents).

“At a time when the business community and non-profits need to shore up their existing customer base and open new revenue streams, meetings and events play a crucial role in creating those opportunities,” says Bruce MacMillan, president and CEO of Meeting Professionals International.

Yeoh Siew Hoon agrees and says Asia needs similar research. “It’s a good example of an industry fighting back to prove its worth.” She is clear about the message the region needs to send meeting planners.

“Meetings are an essential must-have in good or bad times. They deliver return on investment and return on objectives – and they demonstrate accountability and deliver profitability.”

Longer term, the outlook remains bright. CWT’s Rachael Peedom estimates that prior to its current pit stop, the M&E market in the Asia Pacific was growing at an average of 30 per cent annually for five years. She still sees the region as a world leader for its products and potential in the M&E arena.

“Asia is inexpensive, the service levels are very high, and there are plenty of carrier options and leisure add-ons. And every city is growing exponentially to cater for big groups.”

The opportunity clearly beckons for the region. If additional research and training can be injected during this rest period, when the M&E race resumes, Asia-Pacific’s battle-hardened industry should return refreshed and well up to speed.

FAST FACTS

• An April survey of corporate travel managers by the Association of Corporate Travel Executives found that the greatest potential for M&E cost savings came from venues, both hotels and non-hotel sites
• Australia, Singapore and China are among the M&E destinations in the Asia Pacific with the strongest growth potential for CWT
• The Hong Kong Convention and Exhibition Centre (HKCEC) finished its expansion in April, with 19,400m2 of new space, bringing its total rentable space to 92,000m2
• The Global Association of the Exhibition Industry (UFI) will be holding the 77th UFI Congress in Singapore in November 2010. The event will welcome members from more than 50 countries to Singapore’s new integrated resort, the Marina Bay Sands
• ITB Asia is set to offer those participating in the 21–23 October event an economical fixed cost payment option, in relation to the volume of business created
• Grand Hyatt Erawan in Bangkok recently launched a new meeting and events venue, The Campus, an 89m2 venue replicating a university, including a lecture hall, university flags and a university rowing boat
• Web in Travel 2009 said it is anticipating between 300 and 350 participants, in line with last year’s figures

Meet Me There

The Empire Hotel & Country Club is one of the finest beach, golf and spa resorts in the Asia Pacific, providing a truly unique experience in a tropical garden estate and an 18-hole Jack Nicklaus signature golf course and well-established, world-class country club. With 532 rooms – two-bedroom villas and suites – and accessible meeting venues within minutes, the hotel is the perfect venue for any meetings, conferences and incentive events in the region.

This August, The Empire will open the doors to its new Conference Centre. Situated within the 180-hectare property, with unparalleled views of the South China Sea, the centre will add approximately 5,270sq m to the hotel’s existing 3,210sq m of meeting and function space.

The Conference Centre reveals a Grand Ballroom (which can be divided into four smaller ballrooms), meeting rooms and open-roof deck areas. Two thousand guests can be seated here for a formal dinner, and 3,200 people for a cocktail reception or theatre-style seating – positioning the ballroom as Brunei’s premier venue for banquets and conferences.

The Empire Hotel & Country Club
events@theempirehotel.com, www.theempirehotel.com