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Meeting, Incentive, Convention,

and Exhibition (MICE)

Industry:Analysis & Investment

Opportunities

Department of Investment Services,

Ministry of Economic Affairs


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Table of Contents

I. Global Trends in MICE Industry Development .................... 1

(I) A 21 st Century Goldmine................................................................1

(II) The Asian MICE Industry Boom...................................................2

II. The Status of MICE Industry Development in Taiwan ........ 5

(I) Supply & Demand..........................................................................5

(II) An Analysis of Existing Gaps in the Industry Supply Chain,

Investment Niches, and Prospective Foreign Investors................7

(III) Major Suppliers in Taiwan .........................................................11

III. Optimum Investment Items for Foreign Investors ............. 12

(I) Investment Advantages ................................................................12

(II) Investment Niches and Suitable Investment Categories..............17

IV. Successful Examples of Cross-Border Strategic Alliances and

Foreign Investment in Taiwan ................................................ 19

(I) Uniplan (Germany) ......................................................................19

(II) Messe Frankfurt (H.K.) Ltd. Taiwan............................................19

V. Industrial Investment Incentives............................................ 21

VI. Industry-Academia Collaboration in Taiwan .......................... 25


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I. Global Trends in MICE Industry Development

The meeting, incentive, convention, and exhibition (MICE) industry a service

industry combining trade, transportation, finance, and travel has been active in

Europe and America for over a century. The MICE industry is characterized by the

Three Highs high growth potential, high added-values, and highly beneficial

innovations; the Three Larges large output, large opportunities for employment,

and large industry associations; and the Three Advantages advantage over other

industries in human resources, technological know-how, and the efficient utilization of

assets. Today, countries all over the world are putting their best foot forward to

develop the MICE industry as a means to enliven national economic development.

(I) A 21 st Century Goldmine

1. The MICE Industry is Booming

International Congress & Convention Association (ICCA) statistics show, that a

total of 400,000 conferences and exhibitions are held worldwide every year at the total

outlay of US$280 billion. The Global Association of the Exhibition Industry (UFI)

points out that as annual MICE industry output value has already reached US$1.16trillion (including US$400 billion for conferences and US$760 billion for exhibitions),

MICE could be counted on to bring enormous economic benefit to the countries and

cities that host them.

2. Continuous Expansion of MICE Industry Venues Worldwide

In its October 2007 report World Map of Exhibition Venues UFI notes that

in 2006, there were a total of 1,062 exhibition halls around the world with indoor

exhibition space exceeding 5,000m 2, meaning that there is approximately 27.6 million

m2 in total indoor space primarily located in Europe, North America, and Asia. More

specifically, exhibition halls in the U.S., Germany, China, Italy, and France assume

58% of the worldwide capacity. Total construction costs for 2007-2010 is estimated at

a minimum of US$18.7 trillion for building and expansion. By 2010, the world will

have a total of 1,104 exhibition halls with over 5,000 m 2 in indoor exhibition space,


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providing a combined total of approximately 31.1 million m 2 in indoor exhibition

space.

Available Floor Space in Indoor Exhibition Halls Worldwide (2006 2010)

No. of Exhibition HallsExhibition Space

(Million m 2)Regions

2006 2010 (F) Growth 2006 2010(F) Growth

North America 359 370 3% 7.1 7.7 8%

Europe 465 477 3% 14.3 16.2 13%

Asia 127 143 13% 3.9 4.6 20%

Oceania 16 17 6% 0.3 0.3 6%

Middle East 32 33 3% 0.6 0.9 38%Africa 25 24 -4% 0.5 0.6 7%

Latin America 38 40 5% 0.9 0.9 4%

Source: UFI; compiled for the present study, 2008/2

(II) The Pan-Asian MICE Industry Boom

As nations around the world are optimistic about MICE industry development,

exhibition space will continue to grow in the years ahead. This is particularly evident

in Asia, where exhibition space is expected to grow to 4.6 million m2 by 2010 a 20%

increase on 2006. UFI points out in its June 2007 report The Trade Fair Industry in

Asia - 3rd Edition that, spurred by the momentum of production relocation to Asia

from the rest of the world, the Asian MICE industry made over US$2.4 billion in

revenues in 2006. There was a 7.6% growth in the quantity of exhibitions and a 17.4%

growth in available floor space. China, Hong Kong, India, Taiwan, and Thailand

demonstrated the most remarkable growth in both respects.

Analysis of International Exhibitions Held in Asia


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Source: UFI, Business Strategies Group; compiled for the present study, 2008/2

In terms of international conventions, ICCA statistics show that there were a total

of 5,838 international conventions held in 2006, 555 more than in 2005; Asian

countries are responsible for 17.4% of that total, notably Singapore and Seoul, which

ranked 3 rd and 7 th in the world in terms of the number of conventions held in 2006.

There have been 1,000 international conventions held in Asia each year since 2004.

While this is still a far cry from the 3,000 conventions annually held in Europe the

worlds largest MICE industry market Asia did outperform North America in this

past decade, and a trend seems to be emerging, whereby MICE industry activity is

shifting from Europe and America into Asia.

No. of Exhibitions Held Total Floor Space Leased ( )

Anticipated

Revenues

(US$ Million)Country

2006 2005Year-on-

year

Difference

2006 2005Year-on-

year

Difference

2006 %

China 587 564 4.1% 5,089,000 4,065,000 25.2% 759.8 31.5%

Japan 475 473 0.4% 2,174,000 2,273,000 -4.4% 648.1 26.9%

India 158 128 23.4% 526,000 462,000 13.9% 128.4 5.3%

South Korea 140 139 0.7% 528,000 522,000 1.1% 131.8 5.5%

Hong Kong 82 56 46.4% 776,000 501,000 54.9% 323.4 13.4%

Thailand 69 57 21.1% 381,000 274,000 39.1% 110.7 4.6%Taiwan 60 58 3.4% 410,000 329,000 24.6% 85.9 3.6%

Singapore 59 52 13.5% 202,000 175,000 15.4% 64.0 2.7%

The Philippines 59 62 -4.8% 114,000 125,000 -8.8% 18.6 0.8%

Malaysia 57 52 9.6% 246,000 166,000 48.2% 70.9 2.9%

Vietnam 56 41 36.6% 109,000 62,000 75.8% 28.3 1.2%

Indonesia 54 56 -3.6% 170,000 192,000 -11.5% 25.5 1.1%

Pakistan 32 17 88.2% 62,000 41,000 51.2% 17.3 0.7%

Total 1,888 1,755 7.6% 10,787,000 9,187,000 17.4% 2,412.7 100%


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International Meeting Rankings by City (2006)

Ranking CityNo. of

Meetings

1 Vienna 1472 Paris 130

3 Singapore 127

4 Barcelona 103

5 Berlin 91

6 Budapest 86

7 Seoul 85

8 Prague 82

9 Copenhagen 6910 Lisbon 69

Source: ICCA, 2007/6


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II. The Status of MICE Industry Development in Taiwan

( ) Supply & Demand

MICE industry development is an important index for evaluating regional

prosperity and level of internationalization. As an emerging globalized service industry,

MICE is especially valued by national governments for its three highs high growth

potential, high added-value, and highly beneficial innovations; three larges large

output, large opportunities for employment, and large industry associations; and three

advantages the advantage over other industries in human resources, technological

know-how, and the efficient utilization of assets. Many cities are even utilizing the

MICE industry as a development strategy for the new era. Taiwans MICE industry hasbeen around for only a quarter century, and is a much younger industry than its more

mature counterparts in Hong Kong, Japan, and Singapore, though not without its own

competitive edge. There is no disputing the fact that the MICE industry in Asia is

currently experiencing a period of great expansion and growth, and regional

competition has only just begun.

MICE employs an industry model based on service, emphasizing resourceintegration, with the objective of developing satellite industries around its main

focus that of meetings and exhibitions. Every US$1 spent on this industry will lead

to US$7-10 of peripheral economic benefits. That is why the Taiwanese government

has designated the MICE industry as an important service industry for development,

and estimate that industry output value will reach US$ 100 million in 2008. In addition,

Taiwan is striving to host more international exhibitions, pledging to double the

amount of international exhibitions held on the island in 2008 and a 10% increase in

international visitors. The government designated 2008 as an exhibiting activity

year, as the opening of the Taipei World Trade Center Nangang International

Exhibition Hall (TWTC Nangang) in 2008 effectively increases the international

competitiveness of the local industry. The industry will see further resource integration

during 2008, culminating in 2009s exhibition expansion year, when the

developmental focus will be on the expansion of industry depth and scope.


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According to the UFI industry report, the Taiwan External Trade Development

Council (TAITRA) is among the top 10 convention organizations in Asia, just behind

the China Foreign Trade Guangzhou Exhibition Corporation, Singapore International

Convention & Exhibition Centre, and Hong Kong Trade Development Council. In2006, Taiwan ranked 9 th in the region for the number of international conventions held

(47), while Taipei ranked 8 th among all Asian cities with 29 international conventions

held. ICCA statistics further indicate that in 2006, international conventions in Taiwan

were joined by a total of 33,589 participants, which is a 46.7% increase on the 22,902

participants in 2005. Statistical data disclosed by Taiwans Tourism Bureau (TBROC)

indicates that of the 3,716,063 total visitors to Taiwan, 57,800 came for the purpose of

attending meetings and conventions. In the area of international exhibitions, UFIs

June 2007 data shows that Taiwan ranked 7 th in Asia for sponsoring a total of 60

international exhibitions in 2006. Taiwan also ranked 6 th in Asia for the total area

leased for exhibitions, which came to 410,000 m2, or a 24.6% increase on 2005. With

all these advantages in mind, it is imperative that Taiwan do more to develop unique

local MICE industry features to increase overall global competitiveness for all

domestic industries.

As of the end of 2007, there were a total of six exhibition halls in Taiwan for

regular exhibitions, providing a total of 58,254 m2 in available floor space. The TWTC

database also reveals that nearly 100 international exhititions are held annually at the

TWTC exhibition halls in Taipei, its 310-day annual occupancy rate virtually

unsurpassed. In fact, TWTC exhibition halls are very often overbooked. Opened in

March 2008, TWTC Nangang is expected to alleviate this space problem.

The Taiwanese government has invested heavily in the MICE industry. A total

US$680 million was invested into the construction of large-scale exhibition halls

including the TWTC Nangang, TWTC Nangang expansion, and Kaohsiung Exhibition

& Convention Center. Upon the completion of these projects, Taiwan will advance

from 7 th to 5 th-place in Asia in terms of the amount of available exhibition floor space,

and from 36th

to 32nd

in the world in terms of the number of international conventionsheld.


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Exhibition Halls in Taiwan by 2012 (by Floor Space and Booths)

Regions Exhibition Halls ServiceSince:Available Floor

Space ( m2)No. of Booths

Taipei World Trade Center (TWTC)

Exhibition Hall 11986 28,239 1,554

Taipei Show Hall 2 (formerly TWTCExhibition Hall 2) 1999 5,543 331

TWTC Exhibition Hall 3 2003 7,481 365TWTC Nangang Exhibition Hall 2008 4,536 2,465TWTC Nangang Exhibition Hall 2 2013 (F) 47,255 2,650

Northern

Taiwan

Taipei County Exhibiton Hall 1999 4,235 238Taichung World Trade Center 2000 4,851 250Central

Taiwan Taichung International Conference &Exhibition Center 2008 (F) 4,300 500~1,000

Kaohsiung Business Exhibition Center 2000 7,716 422SouthernTaiwan Kaohsiung Exhibition & Convention

Center 2011 (F) N/A 1,500Source: Exhibition hall websites; compiled for the present study, 2008/2

(II) An Analysis of Existing Gaps in the Industry Supply Chain, InvestmentNiches, and Prospective Foreign Investors

The MICE industry incorporates a wide range of expertise that can be roughly

divided into three categories, including exhibition facilities, organizers, and peripheral

subcontractors. Putting an international exhibition together requires professionals from

a variety of fields, and those professionals are lead by Professional Convention

Organizers (PCO) and Professional Exhibition Organizers (PEO).

The MICE industry incorporates a wide range of services. Required hardware

includes onsite audiovisual equipment accomodating Internet connections, overhead

projection, exhibition design and decoration, stage design, audio construction, light

efficiency, and simulataneous interpretation. Non-facility-related services include

exhibition arrangement, public relations, marketing, planning, advertising media,

graphic design, tourism, insurance, and transportation.

MICE Industry Supply Chains in Taiwan

Convention Venues Exhibition Venues

Exhibition

Halls

Taipei International

Convention Center (TICC),

Civil Service DevelopmentInstitute, National Taiwan

Taipei World Trade Center (TWTC) Exhibition Halls 1 & 3,

Taipei Show Hall 2, TWTC Nangang Exhibition Hall, Taipei

County Exhibiton Hall, Taichung World Trade Center,Kaohsiung Business Exhibition Center


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University Hospita l (NTUH)

International Convention

Center, GIS Convention

Center, National Taiwan

Science Education Center

Professional Convention

Organizers (PCO) Professional Exhibition Organizers (PEO)

International

Professional

Exhibitions

International

Exhibition

Agents

Foreign

Organizers

Domestic-sale

Exhibitions

Exhibition

Organizers

Elite, GIS, K&A, API,

WILLY, Intercon , IECMC ,

Round Table, We Plan,

Achieving Professional

Conference Organizer, TCM

TAITRA, Taiwan

Textile

Federation,TEEMA, Taipei

Computer

Association,

TPCA, Taiepi

Book Fair

Foundation,

PIDA, Chan

Chao ExhibitionHall, New Era

International Inc.

ACE Forum,

Chieh Feng,

WES ExpoCo., KAIGO,

Golden Seal

CMP Asia,

Messe

Frankfurt,SEMI

Top Link,

KJE, KTS,

Chia YiInternational,

Economic

Daily News,

United Daily

New, ttnet.net,

Trans Electric

Co.

Notable Public Relations, Decoration, Utilities, and Transportation Firms; Travel Agencies

Foreign Firms Local Firms Peripheral-

Industry

Firms

Uniplan, Olily Exhibition

Design, Sta Translation

The Gleaner Inc., Hsing Li An, Sun Pro Intl Travel Service,

China Economic News Service, SSXC International

Audio-Visual Co., Congress Rental, etc.

Source: Compiled for the present study, 2008/2

The Taiwanese MICE industry has the advantage of having a number of venues

that can accommodate events hosting under 500 participants, including the Taipei

International Convention Center (TICC), GIS Convention Center, TWTC exhibition

halls, and Kaohsiung Business Exhibition Center. In contrast, the gap in the industrial

supply chain is limited space for exhibitions, a problem that the opening of the TWTC

Nangang will help to remedy. The low floor space concentration remains an issue.

Compared with other Asian countries, which have 80,000-100,000 m2 of concentrated


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available floor space, the local industry is lacking (TWTC exhibition halls have

approx. 26,000 m2, and TWTC Nangang has approx. 45,0 00m2). Secondly, of the

nearly 100 professional and consumer exhibitions held at the TWTC each year, 20

international shows are hosted by TAITRA this inability of local PEOs to put oninternational exhibitions is another weak point in the industry. The third gap is in

international competitiveness. While other countries invest heavily to attract buyers to

their domestic markets, Taiwanese companies are spurred by the lack of exhibition

space on the island to participate in foreign exhibitions, as the scale of domestic

exhibtions is limited. Fourthly, development is unequal between the northern and

southern parts of the island. Exhibiters like to join exhibitions in Taipei because there

is a lack of proper exhibition space down south.

As exhibitions in Taiwan begin to transform into a service-lead industry, the

market stands to profit from know-how from European and American exhibition

companies, as well as collaboration with government and associations for the

immediate development of new shows. As there are very few foreign compaies

involved in the local market, there is still a room for peripheral industries such as the

public relations, interpretation, decoration, utilities, transportation, and travel agency

industries to flourish alongside. As for complimentary facilities, there is currently an

insufficient number of hotel rooms and venues that can accommodate international

meetings of over 500. The tourism and MICE industries can reap mutual benefits from

the establishment of international convention centers and hotels in scenic locations.

In order to promote MICE industry competitiveness and trade collaborations

between Taiwan and Korea, KINTEX chairman Mr. In-Shik Kim signed a cooperation

agreement with TAITRA in March 2008. KINTEX is the biggest exhibition center in

Korea and a joint public and private venture. Opened in April 2005, KINTEX resolved

the lack of exhibition space in Seoul, and greatly enhanced the Korean MICE

industrys level of internationalization. Taiwan can learn from the experience of others

to develop its own domestic MICE industry.


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In addition, foreign firms CMP Asia, Messe Frankfurt, and SEMI have set up

offices in Taiwan to recruit exhibitors for international exhibitions. Potential industry

suppliers include Uniplan and Olily of Germany, and well as STAR translation.

Uniplan has an outstanding international reputation and 40-years of experience indisplay design and construction. Olily is expert at combining innovative construction

and materials with exhibition design to create a practical aesthetic.


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(III) Major Suppliers in Taiwan

The MOEA wants to expand the domestic exhibition market and promote the

international status of the local MICE industry through the integration of private

investments and government resources. They also wish to establish local exhibition

and convention companies that can compete with existing international firms.

Many internationally-renowned exhibition firms have subsidiaries in Taiwan.

Taiwanese exhibitors have always attended overseas exhibitions in the past, but we

now hope that said subsidiaries will not only invite their vendors or buyers to visit the

island, but also benefit the local economy by increasing employment opportunities.

Taiwanese PEOs can currently be divided into three categories exhibition companies,

associations, and government. TAITRA, TEMA, Chan Chao Exhibition Hall, and New

Era International Inc. are all local firms in charge of professional international

exhibitions. ACE Forum, Wes Expo Co., and Kaigo are international exhibition agents.

United Daily News and Trans Electric Co. are responsible for domestic-sales

exhibitions.

In Taiwan, the first and largest private professional exhibition company is Chan

Chao Exhibition. It not only holds foreign and domestic international exhibitions and

conventions, but also publishes an industry magazine. In addition, they are responsible

for promoting world-renowned exhibitions and building digital exhibitions via the

Internet. The next largest, TAITRA, is an organization under the MOEA that promotes

Taiwanese MICE industry growth by holding 20-plus international exhibitions

annually.


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III. Optimum Investment Items for Foreign Investors

(I) Investment Advantages

1. Key Government Support

In the area of marketing for international exhibition hosting rights, the

government has spared no effort in upgrading high-potential exhibition halls. In

addition, the government offers generous subsidies to international exhibition

organizers who sponsor exhibitions in Taiwan. During the 2005-2007 period alone, the

government dealt out approximately US$2.6 million in subsidies to as many as 250

foreign exhibition organizers. To date, the government has successfully won hosting

rights for many significant events, including the World Games, Deaflympic Games,WASBE, and IDA Taipei Congress, to be held in Taiwan.

Large-scale International Conventions and Events to be held in Taiwan (2009-2012)

Duration Activity titles City

2009.07.16-.26 World Games Kaohsiung City

2009.09.05-15 Deaflympic Games Taipei City

2009 The 3 rd IWA-ASPIRE Conference & Exhibition Taipei City

2010 Asia Pacific Orthopaedic Association (APOA), XVI Congress Taipei City

2010.11.06-

2011.04.25

Taipei Internationl Gardening and Horticulture Exposition Taipei City

2011 World Band Music Convention (WASBE) Chiayi City

2011 Taiwan Crafts Expo Undetermined

2011 IDA Taipei Congress Taipei City

2011 The Asia and Oceania Federation of Obstetrics and

Gynaecology (AOFOG), XXII Congress

Taipei City

2011 Global Circuit Board Association Convention Taipei City

2012 Federation of the International Societies for Pediatric

Gastroenterology, Hepatology and Nutrition (FISPGHAN), IV

World Congress

Taipei City



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2. Expert Taipei Exhibitions Featuring International Competitive Rdge

Thanks to elaborate efforts on the part of TAITRA a long-time sponsor of

international professional exhibitions, Taiwan currently hosts 10 globally competitive

exhibitions, including Computex Taipei, the Taipei International Cycle Show, and

Taipei Int'l Auto/Motorcycle Parts & Accessories Show ranked top three in the world

in their categories; the Taipei International Electronics Autumn Show, Taipei

International Machine Tool Show, and Taipei Int'l Plastics & Rubber Industry

Show all ranked top three in Asia. These MICE industry events translate into

tremendous economic benefit for peripheral industries.

Take the world-renowned Computex Taipei for instance. Since its inception,Computex Taipei has expanded by leaps and bounds. Held at the TWTC Nangang this

year, it hosted 1,500 industry heavyweights and lured over 35,000 expert international

buyers and many purchase orders to the island, greatly benefiting the local ICT

industry.

Ten Competitive Professional International Exhibitions in Taipei

2007International

RankingExhibition

No. of

Booths

No. of Foreign

Buyers

No. of Local

VisitorsGlobal Asia

Computex Taipei 2,926 33,027 96,624 2 1

Taipei International Machine Tool

Show (TIMTOS)2,778 4,180 71,140 6 3

Taipei Int'l Auto Parts &Accessories Show (AMPA) (a joint

exhibition with the Taipei

International Automobile

Electronics Show)

2,301 4,214 39,197 3 1

Taipei International Cycle Show 2,299 3,939 41,710 2 1

Taipei International Electronics

Autumn Show

(Renamed the Taipei InternationalElectronics Show in 2008)

2,058 4,185 67,318 -- 1


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Taipei Int'l Plastics & Rubber

Industry Show (Held every other

year)

2,028

(2006)

2,242

(2006)11,582 -- 3

Taipei International Book

Exhibition 2,009 (2005)

1,831

(Professionals)

Approx.

320,000 -- 1

TPCA Show 1,612 20,821 -- 2

Taipei Int'l Food Show 1,583 2,992 29,074 -- 2

Taipei International Sporting Goods

Show1,560 1,943 11,323 -- 2

Source: TAITRA, 2008/2

3. World Leader in Industry Cluster Development

As the government puts forth its maximum effort for the promotion of the two

innovations technological innovation, brand innovation and two highs High

technology-concentration, high added-value strategies, Taiwans industry clusters will

continue to grow more competitive. In both 2007 and 2008, Taiwan was ranked No. 1

in the world by the World Economic Forum (WEF) in terms of industrial cluster

development, making it a role model for the entire world. In addition to brilliant

performance in the hi-tech industry, Taiwan has also successfully developed local

clusters of indigenous cultures, crafts, aesthetics, and other such conventional

industries, including the digital contents and ceramic clusters in Taipei; the CD-ROMs,

automobile, and glass clusters in Hsinchu; the bicycles, precision machinery and

musical instrument clusters in Taichung; socks and bicycle clusters at Changhua; and

TFT-LCD, IC, and sweaters clusters in Tainan.

In addition to remarkable exhibition halls, high-caliber human resources, and

professional facilities, teamwork and development efforts from affiliated industries are

also a key to successful MICE industry development. Taiwan has long been

praiseworthy for its brilliant performance in the communications industry. In other

fields including machine tools, bicycles, auto parts, sporting goods, and plastic

processing machinery & equipment, Taiwans performance has been equally

remarkable. To Taiwan, industry has become an important tool for boosting the

momentum of MICE industry growth.


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Industry Providest Momentum to boost MICE Industry Growth in Taiwan

Source: TAITRA, 2008/2

4. Abundant Human Resources for the Service Industry

Taiwan is well-known for its highly educated populace, turning out more than

50,000 new masters degree and Ph.D. recipients each year, which is vital to its

information & communications, optoelectronics, semiconductors, and medical care

industries that win local hosting rights for numerous international conventions each

year. In order to facilitate MICE industry personnnel needs, the MOEA Department of Commerce (DOC) has introduced the High-caliber Service Professionals and Experts

Accreditation Project as a means to support the nurturing of such personnel. In

addition to providing education & training programs for such professionals, the DOC

has tried hard to match the right professionals to the right trades, giving MICE

industry human resources the maximum level of upgrading and utilization.


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5. Abundant Cultural and Tourism Resources

A survey conducted by the Tourism Bureau (TBROC), Ministry of Transportation

& Communications (MOTC) aimed at foreign visitors to Taiwan showed that fine

foods, scenic attractions, and friendly people are the key to attracting foreign

visitors. Night markets, Taipei 101, and the National Palace Museum are rated as the

islands foremost attractions. Government tourism policy implementation and tourism

promotions are currently in full swing, and the total number of visitors to Taiwan is

expected to reach five million in 2008.

6. Optimal Location in Asias Transportation Hub

Taiwan is located at the hub of the East Asian and Pacific regions, where all

major cities in the Asia-Pacific Region can be reached by air in an average of 2 hours

and 55 minutes. Taipei has the advantage of close proximity to these major cities, and

enjoys excellent access to both domestic and foreign destinations. You can reach 56

major cities worldwide through international routes, and domestic routes are operated

by no less than three airlines. In adddition, since service began on the Taiwan High

Speed Rail in 2007, inter-city travel has become extremely convenient, making a dailycommute between the northern capital of Taipei and the southern city of Kaohsiung

possible.


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(II) Investment Niches and Optimal Investment Items

The race to grasp exhibition related equipment and facilities by leading Asian

countries in recent years has lead to cutthroat industry competition. While Taiwans

MICE industry has only existed for a quarter century, it is the proud owner of such

leading brand names as Computex Taipei, TIMTOS, AMPA, Taipei Cycle, Taitronics,

and Taipei Book Exhibition (TIBE). In future, the government will continue to support

the construction of new exhibition halls for an ever stronger MICE industry.

OptimalForeign Investment Opportunities


In terms of hardware, commercial building design, international convention

centers, shopping malls, and hotels all make good investments for foreigners. Ridingthe wave of the industry boom, we should be holding bigger exhibitions in better

convention centers. MICE industry success depends on both available facilities and

expertise, and this makes both public facilities at hotels and marketing specialists

important assets. Taipei City currently lacks adequate hotel rooms (with approx.

12,000 hotel rooms in total) and venues to accommodate large-scale international

conventions of over 500. The government is advised to boost constructions of

international convention centers and world-class hotels while taking advantage of local

Categories Investment ItemsCommercial Building Design

International Convention Centers

Shopping Malls

Facilities

Hotels

Meeting & Conference OrganizersMICE Organizers

Exhibition Organizers

Public Relations Consultants

Translation ServicesMedia

Travel Agencies

Transportation Industry

Peripheral Firms

Decoration & Design


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scenic charms so that the tourism and MICE industries will closely complement each

other for their mutual benefit.

After winning the World Trade Centers Association (WTCA) Best Practice title,the TICC is hoping to diversify their function from provider to organizer. Of the

nearly 100 professional and consumers-oriented exhibitions held each year at the

TWTC, over 20 international exhibitions are hosted by TAITRA, as private organizers

in Taiwan tend to lack the competence to sponsor international exhibitions. As

exhibitions in Taiwan are being gradually transformed into a service-oriented industry,

the market stands to profit from know-how from European and American exhibition

companies, as well as from collaboration with government or association for the

immediate development of new exhibitions.

Peripheral industries are the real winners when it comes to local exhibitions and

conventions. In addition to buyers and other visitors, international conventions bring in

tickets and hotel sales, as well as consumer and professional knowledge. In terms of

peripheral support industries, public relations consulting companies, translation firms,

media, decoration, utility services, transportation, and travel agencies all make for

good investments. At present, most Taiwanese enterprises fall into the

small-and-medium enterprises category and there are not many foreign enterprises

involoved in the MICE industry. As MICE in Taiwan is privy to many industry

advantages, such as plentiful high-grade human resources and ithe islands location at

the heart of the Asia-Pacific region, peripheral industries are expected to thrive

alongisde the MICE industry as it continues to strengthen. In addition, Taiwans

information and communications, electronic components, semiconductor, conventional

machinery, and textile industries hold an immutable global position in their respective

industries, and their infinite development potential, in combination with local tourism

resources, makes for perfect conditions for foreign investment in the development of

an international MICE industry.


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IV. Successful Examples of Cross-Border Strategic Alliances andForeign Investment in Taiwan

(I) Uniplan (Germany)

Uniplan was established in Germany in 1960. Headquartered in Cologne, Uniplan

operates numerous branches in Paris (France), Basel (Switzerland), Budapest

(Hungary), Shanghai, Beijing, Hong Kong, and Taipei. Uniplan primarily offers expert

services in planning exhibition and public relations events, exhibition display planning

and design, visual image design, as well as museum planning and design.

In 1982, the Uniplan Group established Uniplan Taiwan in Taipei. In order to

provide its clients with integrated marketing services, Uniplan then established

Intercon Convention Management and Indeed Marketing Communications to meet

client needs for exhibition curators, brand planning, strategy analysis, innovative

design, project management, and on-site services. Uniplan currently organizes more

than 100 exhibitions and conventions worldwide.

Uniplan employs 80 full-time professionals in Taiwan. Long-term clients include

key enterprises and government institutions such as Far EasTone Telecommunications,

Gigabyte, EVA Air, China Motors Group (CMC), Unilever Taiwan, the TBROC,

Taiwan Visitors Association, TAITRA, Taiwan Textile Federation, Taiwan Association

of Machinery Industry (TAMI), and Taipei Electrical and Electronic Manufacturers

Association (TEEMA).

(II) Messe Frankfurt (H.K.) Ltd. Taiwan

Germany is the most successful country in the world in terms of MICE industry

development, and Messe Frankfurt Ltd., with a EUR400 million turnover in 2006, is

the worlds second largest industry company after Hanover-based Duetsche Exhibition

Corporation. Of the 17,000-plus exhibitors in Frankfurt-based exhibitions in 2005,

four of its ten top exhibitor-origin area are in Asia; among them, China ranked 2 nd,

India and Taiwan 3 rd, and Hong Kong 8 th. A key to Messe Frankfurts continuous

growth is the revenues earned by its overseas subsidiaries. Messe Frankfurts totalturnover in Asia in 2006 was approximately EUR50 million, which accounted for


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nearly half of its total overseas turnover. Its brand names in Asia include

Automechanika, Ambiente, Heimtextil, Interstoff, ISH, Techtextile, Beautyworld,

Light + Building, Musikmesse, Prolight + Sound, and Paperworld.

Since its establishment in 1994, Messe Frankfurt (H.K.) Ltd. Taiwan has been

responsible for attracting Taiwan-based firms to participate in European exhibitions. In

2006, more than 1,000 Taiwanese companies participated in exhibitions in Frankfurt.


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V. Industry Investment Incentives

In view of its global development poential, the Executive Yuan has

designated the MICE industry as a focal point in the Challenge 2008 National

Development Plan, and approved the MICE Industry Development Project on

July 8 th, 2004. The Executive Yuan Tourism Development & Promotion Committee

MICE Task Force was established in November 2004, and is currently working on

integrating government resources.

As the supervisor of MICE industry development, the MOEA established the

MICE Industry Development Promotion Task Force as a single service-window to

map out MICE industry operating mechanisms , nurture industry development, attract

international MICE industry shows to the island, and elevate the international

competitiveness of Taiwans MICE industry.

Government Policies for MICE Industry Promotion

Year.month Highlights

2002.05 The Executive Yuan highlighted the MICE industry as a focus for its Challenge

2008 National Development Projects.

2004.07 The Executive Yuan approved the MICE Industry Development Project as a key

project for national development, to be implemented during 2005~2008.

2004.11 The Executive Yuan Tourism Development & Promotion Committee MICE Task

Force was established for the coordination and integration of agency resources.

2004.11 As a part of the Guidelines and Action Projects for Service Development, the

government made the MICE Industry Development Project a flagship project for

tourism, sports, and recreational services.

2006.05 A single service-window was established for the MOEA MICE IndustryDevelopment Promotion Task Force to establish MICE industry operating

mechanisms.

2007

~2008

The MOEA plans approximately US$18 million in investments for MICE promotions

and marketing. An estimated 30,000 local firms are expected to benefit from this

plan, which will attract 800,000 visitors to domestic exhibitions and 22,000 foreign

buyers to do business in Taiwan, thus creating a trade throughput of up to US$1.6

billion, with US$123 million in fringe benefits for peripheral industries.

2008~ Scheduled to begin construction in November 2008, the Kaohsiung Exhibition &Convention Center is expected to commence operation in 2011.


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Build up TWTC Nangang as a second-generation exhibition facility.

Source: Organized for the present study, 2008/2

In a bid to facilitate the rapid development of the MICE industry, the

Taiwanese government offers a variety of investment incentive measures,

including tax incentives, R&D subsidies, low-interest loans, personnel training and

meeting & exhibition assistance, as well as flexible immigration entry mechanisms

for participants, to assist MICE industry players and attract foreign investments.


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Government Industrial Investment Incentives

Item Preference Contacts Statute for Promoting Private

Participation in Public Construction

Public Construction Commission,

Executive Yuanhttp://ppp.pcc.gov.tw/pcc_site

E-mail: [email protected]

Tel: +886-(0)2-8789-7500

Tax

Regulations Governing Application of

Profit-seeking Enterprise Income Tax

Exemption to Private Institutions

Participating in Public Construction

Projects

Taxation Agency, Ministry of

finance, R.O.C.

http://www.dot.gov.tw


Tel: +886-(0)2-23228421 Principles Governing Subsidies for

Meetings and Exhibitions Held in

Taiwan

MICE Program Office, DOC

http://www.meettaiwan.com


Tel: +886-(0)2-2392-0788#106 Commercial R&D Incentive Scheme Department of Commerce, MOEA

http://gcis.nat.gov.tw


Tel: +886-(0)2-412-1166 Principles Governing Trade Expansion

Subsidies

Bureau of Foreign Trade, MOEA

http://cweb.trade.gov.tw


Tel: +886-(0)2-2351-0271

Subsidy

Regulations Governing Tax

Deductions for International Tourism

Promotions Related Investments by

Tourism Industry Firms in

Conjunction with Government Policy Guidance Measures for International

Tourism Promotions and Marketing

Efforts on the Part of Private

Organizations and Profit-seeking

Enterprise

Tourism Bureau, R.O.C. (Taiwan)

http://www.taiwan.net.tw


Tel: +886-(0)2-2349-1500


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Implementation Rules for

International Convention Related

Incentives in Kaohsiung City

Research, Development and

Evaluation Commission,

Kaohsiung City Government

http://rdec.kcg.gov.tw


Tel: +886-(0)7-331-3942 International Experts Recruitment Department of Investment

Services, MOEA

http://hirecruit.nat.gov.tw


Tel: +886-(0)2-2370-9687 Military Training Service Application Military Training Project Office

http://rondi.mnd.gov.twE-mail [email protected]

Tel +886-2-2736-8088#3414

R&D Substitute Service R & D Substitute Service Program

Office, Ministry of t he Interior

http://rdss.nca.gov.tw


Tel: +886-(0)2-2736-6066#206

Personnel

Training

Meeting and Convention ServicePersonnel Nurturing and Certification

Plan Meeting and Convention Service

Professional Certification Exam

Taiwan External TradeDevelopment Council

http://mice.iti.org.tw


Tel: +886-(0)2-27255200#2570

Entry

Mechanism

Operational Procedures for the

Mechanism Allowing Flexible Entry

by Foreign Nationals (Including PRC

Nationals) Participating in

International Conventions in Taiwan

MICE Program Office, DOC

http://www.meettaiwan.com


Tel: +886-(0)2-2392-0788

Source: Compiled for the present study , 2007/12


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VI. Industry-Academia Collaboration in Taiwan

The MOEA planned to invest approximately US$18 million into MICE

industry promotions and marketing in 2007 and 2008, with the aims to implement

12 related measure such as providing impetus for industry development in central

and southern Taiwan, the nurturing and certification of meeting and exhibition

professionals, as well as the stimulation of export trade growth to further elevate

Taiwans international standing with reference to the MICE industry. An estimated

30,000 local firms are expected to benefit from this plan, which will attract some

800,000 visitors to domestic exhibitions and 22,000 foreign buyers to do business in

Taiwan, thus creating a trade throughput of up to US$1.6 billion, with US$123 million

in fringe benefits for peripheral industries.

Taiwan is actively promoting MICE industry development through the

integration of its government organizations, and corporate and industry

associations.

MICE Collaborating Promotional Institutions in Taiwan

Institution Website

Council for Economic Planning and Development www.cepd.gov.tw

Department of Commerce gcis.nat.gov.tw

Department of Investment Services www.dois.moea.gov.tw

Bureau of Foreign Trade www.trade.gov.tw

Meeting Exhibitions Events Travel www.meettaiwan.com

Tourism Bureau www.taiwan.net.tw

Research, Development and Evaluation Commission,Kaohsiung City Government

rdec.kcg.gov.tw

Taiwan External Trade Development Council www.taiwantrade.com.tw

Taipei Exhibition & Convention Association www.texco.org.tw

Taiwan Convention & Exhibition Association www.taiwanconvention.org.tw

I-Lan International Convention & Exhibitions Association www.icea.org.tw

Tainan Convention & Exhibition Development Association www.tceda.org.tw

Kaoshiung Convention & Exhibition Association www.kcea.org.tw

China Productivity Center cpc.twTaiwan Institute of Econonic Research www.tier.org.tw


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Source: Compiled for the present study , 2007/12

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