1. Southeast Asia & Mainland China: An Emerging Meetings Market David L Jones, PhD. Associate Professor Hong Kong Polytechnic University School of Hotel and Tourism Management 1

2. What Ever It Was That Got You To Where You Are Today, Is Not Sufficient to Keep You There

3. What Do We Need to Know About SE Asia and Mainland China? MICE industry growth Hardware & software Outbound – Mainland China Your attendee Inbound Holding a convention or event

4. MICE INDUSTRY GROWTH

5. Background Historical Perspective Comparing Western and Asian Meetings Why is China changing what we thought we knew? China’s new convention centers People !!!! My Perspective

6. Historical Perspective Personal experience – since early 90s Large meetings and conventions North American and European organizations coming to SE Asia, but not really Mainland China Exhibitions and tradeshows Focus on attracting Westerners to Asia Small Meetings Local offices of North American, European and Japanese companies What does this mean?

7. Western Meeting Specifications Typical meeting set-ups General sessions Breakout rooms Size of the meeting sessions Exhibits are associated with meetings 54% of tradeshows managed by associations Basis of how Western hotel meeting rooms are built

8. Typical Meeting Set-ups – North America Breakout Session General Session

9. Differences in Size of Various Types of Meetings

10. Size of meeting rooms for conferences – North America

11. Differences in Asian Meetings Meeting room set-up Requirement of head table at all sessions Formality of meetings Simultaneous interpretation Size?

12. Asian Meeting Set-ups Forum General Session Head Table Photo to be Added Breakout Session

13. Today’s Perspective - Meetings Intra-Asia meetings and forums Ease and cost of travel have led to increases in regional meetings Mainland China’s high-speed trains Associations are growing in Asia APac CHRIE 2011 – Hong Kong Mainland China’s Alliance of China Conference Hotels

14. Mainland China Perspective “The government has recently begun to realize the value of the meetings industry” Haiyin Lieu, CEO of the China National Convention Center

15. Size!!

16. What Size Should Meeting Space Be? China USA UK POPULATION

17. Are We Prepared? Financial industry employees per institution Hotel ballroom sizes – Hyatt Hotels

18. Are We Prepared? Financial industry employees per institution Hotel ballroom sizes – Hyatt Hotels Grand Hyatt Macau – 20,742 Sq. Ft. – 2,500 Theater Style

19. Future Convention Center Venues in Mainland China Anticipating the trend? Two Case Studies

20. Convention Venue Landscape Still about exhibitions 150 exhibition halls of 10,000 m2 3,500 official exhibition worth CNY 16.2 billion (USD 2.63 billion) China National Convention Center Changing the landscape 690 events in first year Corporate – 38% Associations – 24% Exhibitions – 12% China Research & Intelligence 2010 CNCC

21. China National Convention Center - Beijing

22. Shanghai Expo Center

23. Size Specification Highlights Convention Hall – 6,400 m2 (5,700 people) Ballroom – 4,860 m2 (3,000 for banquets) Shanghai – Auditorium seating 2,500 Shanghai – 106 meeting rooms 11 can seat more than 200 people each Beijing nearly 100 meeting rooms 3 can seat more than 540 people each

24. Wal-Mart – China - 2011

25. Wal-Mart - China CNCC – January 2011 4,000 attendees from 329 stores in China 79 suppliers – 13,000 m2 of exhibits

26. People!!!! What about the “peopleware”?

27. War for Talent By 2025 Mainland China will have 23 cities with 5 million or more population No shortage of people Getting best and brightest, then keeping them 60% of college grads don’t find jobs Yet, they well change jobs for RMB 500 extra per mos. (less than USD 86) Expat or Local? Salaries in Mainland MICE industry almost equal to those in Singapore Biggest issue – Lack of Middle Management

28. What About Service Quality and Industry Knowledge? Change in past 20 years Spoken English – Very Good! International brands versus domestic brands Commitment to training Ability to develop and retain Middle Managers Service is part of the culture

29. Understanding The Lifetime Value of the Customer Lifetime value view, not transaction view – Chinese guanxi Revenue and profits by average customer over a lifetime by segment Increase average purchase, frequency of visit, life

30. Development of Service Culture Business Educational Institutions Home Society

31. Shangri-la Philosophy Has It Changed? BEFORE NOW Shangri-La Hospitality from Caring People 殷勤好客 香格里拉情

32. Shangri-la Signature Events - Example Super Value Dates to enable a quick search for the best available room rate across Shangri-La hotels, resorts and Traders hotels A written basic proposal and quotation for the event within six working hours of initial enquiry Group Online Reservations to save the trouble of consolidating bookings and rooming lists Central Credit Administration to facilitate a credit line with multiple properties Complimentary guestroom Internet service and function room wireless Internet access Total hotel experience with dedicated events specialists in key departments to provide seamless service throughout the hotel Streamlined planning with appointed events management professional to handle all event arrangements On-site service management with appointed meeting specialist to oversee all event requirements and service delivery On-site technical support with dedicated AV technician on hand throughout the event to ensure the smooth operation and functionality of equipment

34. Questions for You Has anyone had success with attracting attendees from Asia? Who is interested in increasing the number of attendees from Mainland China?

35. OUTBOUND CHINESE –YOUR FUTURE ATTENDEE

36. 100 million outbound Chinese tourists by 2015!! How do you reach them for meeting attendance?

37. Mainland China Travel Spending by outbound Chinese tourists ranked fourth-largest worldwide in 2010. Up 20.4% year on year Top outbound market by 2020 – UNWTO

38. Approved Destination Status (ADS) Visa approval for leisure travel Approved travel agents and wholesalers Selected countries Canada and USA are ADS countries Biggest issue is USA Visa, not China

39. Mainland Chinese Attendee Profile

40. eLong – Hotel Guest Decision Making Prices Location Description of facilities Review of other users

41. Chinese Luxury Tourist (CLT) – Regions to be visited Market Probe Travel & Tourism Group, 2011

42. CLT – Best Hotel/Airline Brands Market Probe Travel & Tourism Group, 2011

43. CLT – Class of Service Market Probe Travel & Tourism Group, 2011

44. Reaching the Mainland Chinese Attendee

45. Internet & Social Media Number of Chinese Internet users has grown by 1500% since 2000 Currently 456 million Internet users 32% penetration compared to 80% in USA 800 million mobile users Most engaged country online – 92% More bloggers than Europe and USA combined

46. Social Media in Marketing Social Networking Sites Review Networking Sites

51. Questions for You Who has held a meeting in SE Asia or Mainland China? What were your experiences? Who is considering SE Asia or Mainland China?

52. INBOUND – HOLDING AN INTERNATIONAL MEETING IN MAINLAND CHINA

53. International Arrivals International arrivals staying at least one night reached 55.66 million in 2010, up 9.4 percent on 2009 China's appearance in the top three was its first, according to the UNWTO

54. Where did they come from?Where did they go?

55. China Meetings ICCA – China jumped from #19 to #9 on the list of countries drawing the most association business PCOs MCI Kellen

56. USA Corporate Presences in Greater China Yum Brands (KFC, Pizza Hut) 2011 China overtaken USA as top profit maker GM China exceeds USA in 2010 Las Vegas Sands and Wynn Revenues are 3 times more in Macao than LV Dell Computer China is 2nd Coach China is fastest growing market Starwood & Marriott Mainland China largest market outside USA

57. Holding an Association Meeting in Mainland China Government policy on attendance and exhibit size - 300 international attendees Other issues Political issues Visa Registration costs Venue cost Security (copyright and patent)

58. Application Process for ApprovalChina Medical Society Example

59. Criteria for Support from CMA Support by China Medical Association & Specialty Society Background, scientific benefits, financial benefits

60. China Medical Association Meetings 30 annual meetings of 1000+ Orthopedics is largest Preferred locations Suzhou Xiamen 2 most popular then Beijing and Shanghai Months – May then September

61. Key Points You Should Know about Mainland China Experienced conference management staff at international brand hotels Not at lot of depth, however Willingness to serve Local infrastructure is inbound operators Transitioning from wholesale and incentive markets Detailed contracts are a new experience PCO’s very common No CVBs yet, but Tourist Boards are evolving to MICE Beijing Tourism Administration (BTA) Shanghai Municipal Tourism Administration & Shanghai International Conference Management Key players for association meetings approval GCMBE – Beijing in December

62. Where Do You Hold It? Beijing Shanghai and Yangtze River Delta Hangzhou, Suzhou, Nanjing, Ningbo Pearl River Delta Guangzhou, Shenzhen Second Tier Cities Chengdu, Xi’an, Wuhan, Xiamen, Dalin, Qingdao, Kunming, Chongqing SARs – Hong Kong & Macau

63. Secondary City in Mainland ChinaChongqing Example 50 – 4 & 5 Star hotels by 2015 International brands – Marriott and IHG Advantages: Convenient transportation Cheaper than other big cities Abundant tourism products Different itineraries

64. Greater China and SE Asia

65. Hong Kong SAR Cosmopolitan city Global mindset Experienced Exhibitions Incentives Great convention and exhibition venues

66. Hong Kong Convention and Exhibition Center (HKCEC) Asia-World Expo (AWE)

67. MICE in Hong Kong Meetings & Exhibitions Hong Kong (MEHK) Launched November 2008 offer one-stop professional support to MICE organizers 2008-09 Hong Kong Budget earmarked HK$150 million (US$19.2 million) over 5 years to strengthen promotion on Hong Kong as a MICE destination.

68. Macau SAR Sleepy fishing village to mega gaming center Themed integrated resorts Cotai Strip Venetian City of Dreams Sheraton/St. Regis Galaxy City MGM Wynn/Encore

69. Different business concept All inclusivethemed resorts Privately owned & managed Extremely rapid development Issues, with changes seen every month transportation infrastructure HR

72. Singapore Largest MICE destination in SE Asia Theme integrated resorts Marina Bay Sands Resorts World Sentosa Convention hotels 7 surrounding SUNTEC Experienced Easy transportation Chinese/Indian/Malay cultures

73. Singapore SUNTEC

74. Other SE Asia MICE Destinations Thailand – Bangkok Political issues Malaysia – KL Muslim country Taiwan – Taipei User friendly for Americans Philippines – Manila Best American English Viet Nam – Ho Chi Minh City/Saigon Not ready yet

75. UNDERSTANDING ASIA Cross-cultural Negotiation

76. Key Points Decision process Collective versus individual Trust factor – guanxi Role of the Players PCO’s International brand versus domestic hotels Understanding the lifetime value of the customer Relationship versus transactional Negotiations not done over the phone

77. Asian Principles“3 Plus 1 Factor” Respect for Elders “Face” Giving It Work Before Self Importance of the Status of Working for a Hotel Plus Factor: Educational Sponges

80. The Possession of Facts is Knowledge, the Use of Them is Wisdom Thomas Jefferson

81. To Be Fond Of Learning Is Near To Wisdom 智者乐学 Confucius 孔子

82. Thank You Xie Xie 谢谢！