chinas outbound meeting_business_131106

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52 nd ICCA Congress International Congress and Convention Association . Twitter: #ICCA13 How China`s Meeting Market will affect the international Event Industry with a focus on ICCA members A joint research project Hochschule Osnabrueck, University of Applied Sciences and Shanghai University of International Business and Economics (SUIBE) Shanghai, November 2013

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This presentation was held at the ICCA Congress 2013 in Shanghai. It highlights the future of Chinas outbound meeting business and shows, how international meeting service suppliers (= ICCA members) are alraedy preparing for this new market

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Page 1: Chinas outbound meeting_business_131106

52nd ICCA Congress

International Congress and Convention Association . Twitter: #ICCA13  

How China`s Meeting Market will affect the international Event Industry with a focus on ICCA members

A joint research project Hochschule Osnabrueck, University of Applied Sciences and Shanghai University of International Business and Economics (SUIBE) Shanghai, November 2013  

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International Congress and Convention Association . Twitter: #ICCA13  

1.  Who  we  are  2.  Aim,  Research  Thesis,  Methodologies  3.  An  Analysis  of  China  MICE  Industry/  Meeting  Market  4.  Online  survey:  What  Chinese  and  Non-­‐Chinese  ICCA  members  think  

about  Chinese  outbound  event  business    5.  Summary  

Our Agenda:

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International Congress and Convention Association . Twitter: #ICCA13  

1. International Event Management Shanghai (IEMS)

Since 2004 Hochschule Osnabrück and Shanghai University of Business and

Economics (SUIBE) offer the double-degree Bachelor Programme

International Event Management Shanghai (IEMS) to Chines students in

Shanghai as a joint venture.

We are the only Sino-Foreign

Event Management Programme in China with

• More than 450 Graduates so far

• 50 % of curriculum taught by German lecturers

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International Congress and Convention Association . Twitter: #ICCA13  

•  Prof.  Helmut  Schwägermann,  Hochschule  Osnabrück,  •  ICCA-­‐member  since  1986,    

German  Programme  Director  of  IEMS  since  2004    •  Dr.  Ding  Yi,  SUIBE,  researcher  with  an  international  background/

education    

The Research Team

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International Congress and Convention Association . Twitter: #ICCA13  

Research Question: How will the development of China`s Market for Business Events affect the international Event Industry with a focus on ICCA members? Methodology: 1.  Desk research 2.  Interviews with Chinese event experts 3.  Online research with ICCA-members (October 2013)

2. Research Aim and Methodology

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1.  Chinese  Event  Business  is  different  due  to  specific  governmental  influence  2.  Chinese  Event  Business  will  affect  the  International  Meeting  Industry  soon.  3.  More  individual  or  group  of  delegates  will  take  part  at  international  meetings/

business  events  worldwide  4.  More  Chinese  decision  makers  (e.g.  Board  members  in  Intl.  Associations  or  

Corporations)  will  be  influencing  international  meetings  and  the  selection  of  destination  

5.  More  China-­‐based  business  events  will  go  abroad,  starting  with  incentive  travel  to  Asian  countries  

6.  Few  ICCA  members/destination  have  already  a  “China  Strategy”  

Our Research Statements: We expected that….

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Mee$ngs  

Corporate  

High  Govern-­‐mental  Influence  

Middle    Govern-­‐mental    Influence  

Low  Govern-­‐mental    Influence  

Non-­‐Profit  Organisa$ons  

Government/  State-­‐  run  

ins$tu$ons/  Government  

funded  associa$ons  

Associa$ons  in  transit-­‐process  

Grass  Root  Associa$ons  

Introduction Figure  1  The  Chinese  Mee$ng  Market  

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International Congress and Convention Association . Twitter: #ICCA13  

3.1. The major groups of MICE industry in China

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International Congress and Convention Association . Twitter: #ICCA13  

3.2. Consumption Capacity & Patterns

State-­‐run    Ins,tu,on  Mee,ngs

Government  Mee,ngs

Associa,on  Mee,ngs

Figure  3  Consump$on  Capacity

Source:    Adapted  from  CTHA,  CATS  &  ACCA  (2013,  p.  30)

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International Congress and Convention Association . Twitter: #ICCA13  

Figure  4  Consump$on  PaMerns

Source  :  Adapted  from  CTHA,  CATS  &  ACCA  (2013,  P.  31)

State-­‐run    Ins,tu,on  Mee,ngs

Government  Mee,ngs

Associa,on  Mee,ngs

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3.3. When do they organise the meetings?

Figure  5  Mee$ng  Trend

Source:    Adapted  from  CTHA,  CATS  &  ACCA  (2013,  P.  24)

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International Congress and Convention Association . Twitter: #ICCA13  

Figure  6  Mee$ng  Lead  Time

Source:    Adapted  from  Davidson  (2013,  p6)

3.4. Lead Time

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Figure  7  Des$na$on  Breakdown  for  Chinese  Outbound  Tourists

Source:    CTA  (2012,  P39)

3.5. Destinations

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Which destinations do the four groups go to for their meetings?

Corporate State-run Institution

Government Association

Asia Where are the headquarters located

Developed countries—mainly Europe and North America

Developed countries—mainly Europe and North America

Developed countries—mainly Europe and North America

Table  1

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Figure  8  Who  Are  the  Event  Organisers

3.6. How often do they use a third party for their meetings?

Source:  CTHA,  CATS  &  ACCA  (2013,  P.  12)

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Summary 1

   1.  Chinese  market  is  s,ll  a  mixture  of  command  economy  

and  market  economy  with  a  trend  moving  towards  a  market  economy.    

         All  the  government  based  organiza,on  mee,ngs  will  respond  sensi,vely  to  the  government  regula,ons.  

         All  the  market-­‐oriented  organiza,on  mee,ngs  will  follow  

the  market  rules,  this  part  of  the  MICE  market  will  grow.  

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Summary 2

   2.        Private  companies  are  growing  very  fast,  which  will    

increase  the  share  of  the  whole  mee,ngs.  Also,  following  the  Chinese  investment  in  overseas  countries,  we  can  predict  that  the  overseas  corporate  mee,ngs  will  grow  accordingly.  

               State-­‐run  companies  respond  sensi,vely  to  Chinese  

regula,ons,  its  mee,ngs  will  follow  the  governmental  regula,ons.  

 

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Summary 3

3.        State-­‐run  ins$tu$ons  have  the  need  to  exchange                  knowledge  with  overseas  countries,  so  state-­‐run  

ins,tu,ons  will  be  an  important  part  for  outbound  business  travel.  

               On  the  other  hand,  its  top-­‐down  mee,ngs  will  shrink                  because  of  the  new  regula,ons  from  the  government.  

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Summary 4

4.        Government  mee$ngs  are  currently  under  the  pressure                  of  the  new  regula,ons  on  cuGng  costs  on  mee,ngs,  

which  will  cause  the  downsize  of  its  share  of  the  whole  mee,ng  industry  in  China.  

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Summary 5

5.        Associa$ons  mee,ngs  is  s,ll  a  rela,vely  small  part  of                  the  industry,  which  has  a  poten,al  to  grow.  However,  

the  future  trend  is  not  clear  so  far.                  Some  grass-­‐roots  associa,ons  are  growing  fast,  this                  could  be  a  future  opportunity  for  outbound  business                        mee,ngs.  

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Reference

China  Tourism  Academy  (CTA),  2013,  Annual  Report  of  China  Outbound  Tourism  Development  2012,  Tourism  Educa,on  Press,  Beijing  China  Tourist  Hotel  Associa,on  (CTHA),  China  Associa,on  of  Travel  Services  (CATS)  &  The  Associa,on  of  China  Conference  Hotels  (ACCA),  2013,  Annual  Sta,s,cal  and  Analy,cal  Report  of  Chinese  Mee,ng  Industry  2011,  Tourism  Educa,on  Press,  Beijing   Davidson,  R.  2013,  China  MICE  Buyers  Report  (Chinese  Mee,ng  Planners’  Site  Selec,on  Survey),  CIBTM,  Beijing   Hofstede,  G.  2013,  Dimensions  of  Na,onal  Culture (hWp://www.geerthofstede.nl/dimensions-­‐of-­‐na,onal-­‐cultures)

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Aims:    • to  find  out  the  attitude  and  assessments  of  ICCA  members  towards  the  development  of  the  meeting  market  in  China  • To  find  out,  how  well  ICCA-­‐members  are  prepared  for  Chinas  meeting  market  :    • „Do  they  have  a  China  strategy?“  • Online  questionnaire  with  9  questions  • Time:    October  2013  • Respondents:  196    • Representative  according  to  ICCA-­‐Sectors  and  Chapters  • Results  are  shown  without  Mainland    China-­‐ICCA-­‐members!  

4. Online-survey ICCA membership

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41 % had already experience with events from China yet. (Not only meetings, but all ind of events!

I  do  not  know    0%  

No  Answer    3%  

Yes,  once    9%  

Yes,  quite  o^en/regularly    13%  

Yes,  from  ,me  to  ,me,  seldom    19%  

No,  not  yet    56%  

Do  you/does  your  organisa$on  already  have  experience  with  events  which  have  been  organised  by  an  organisa$on  from  Mainland  

China  ?    

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2/3 had already experience with delegates from mainland China

No  Answer    3%  

I  do  not  know    4%  

Yes,  once    6%   Yes,  quite  o^en/

regularly    21%  

No,  not  yet    26%  

Yes,  from  ,me  to  ,me    40%  

Do  you/does  your  organisa$on  already  have  experience  with  delegates  from  Mainland  China?  

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For nearly 30 % the Chinese delegation has been the biggest foreign delegation at least once

Once    

Quite  o^en/regularly    

No  Answer/do  not  know  

From  ,me  to  ,me/seldom    

Not  yet/  never    

6  

6  

25  

17  

46  

How  o[en  was  the  delega$on  from  Mainland  China  the  biggest  foreign  delega$on  at  your  event?  

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ICCA members think, that.... (1=strongly disagree, 7= strongly agree)

3,7  

4,1  

4,2  

4,4  

4,6  

5,0  

5,0  

5,0  

5,2  

5,4  

5,4  

5,5  

5,6  

5,8  

Chinese  decision  makers  need  no  special  treatment.  

Will  be  strongest  Asian  source  market.  

ICCA’s  top  5  country  ranking  within  5  years  ,me.  

Taken  over  from  Japan  as  sourcemarket  for  leisure  tourism.  

Mul,at.  Companise  are  already  relevant  even  for  us.  

Take  more  influence  on  the  des,na,on  selec,on.  

ICCA’s  top    5  country  ranking  within  10  years.  

Is  the  strongest  Asian  event  market.    

CEB  s,ll  has  to  learn  how  to  organise  interna,onal  events.  

CEB  will  s,ll  be  mainly  driven  by  government  in  ten  years.  

China’s  FDI  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  trade  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  mul,na,onal  companies  will  play  an  important  role  

Interna,onal  des,na,ons  need  special  China  strategies  

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China-experienced ICCA-members advise: you need a special China strategy! (agree stronger to all statements)

4,0  

4,5  

4,5  

4,9  

5,0  

5,4  

5,4  

5,5  

5,5  

5,6  

5,6  

5,8  

6,0  

6,4  

Ch.  decision  makers  do  not  need  any  special  treatment.  

Will  be  ICCA’s  top  5  country  ranking  within  5  years  ,me.  

Ch.  event  industry  will  be  mainly  driven  by  government  in  ten  years.  

Ch.  taken    over  from  Japan  as  leading  source  country  for  leisure  tourism.  

Ch.  Even,ndustry  be  the  strongest  Asian  source  market  for  our  

Chinese  mul,n.  companies  are  already  relevant  even  for  us.  

Ch.  decision  makers  will  take  more  influence  

Will  beICCA’s  top    5  country  ranking  within  10  years.  

Ch.  even,ndustry  has  to  learn  how  to  organise  interna,onal  events.  

The  Chinese  event  market  is  the  strongest  Asian  event  market.    

China’s  trade  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  FDI  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  mul,na,onal  companies  will  play  an  important  role  in  the  

 Interna,onal  des,na,ons  need  special  China  strategies  

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Chinese Eventindustry (Online Survey October 2013, 55 respondents, not representative) is very optimistic about development!

4,3  

6,8  

5,6  

5,7  

5,9  

6,1  

6,8  

6,5  

3,2  

5,8  

6,0  

6,3  

6,0  

Chinese  decision  makers  need  no  special  treatment.  

Will  be  strongest  Asian  source  market.  

ICCA’s  top  5  country  ranking  within  5  years  ,me.  

Taken  over  from  Japan  as  sourcemarket  for  leisure  tourism.  

Mul,at.  Companies  are  already  relevant  even  for  us.  

Take  more  influence  on  the  des,na,on  selec,on.  

ICCA’s  top    5  country  ranking  within  10  years.  

Is  the  strongest  Asian  event  market.    

CEB  s,ll  has  to  learn  how  to  organise  interna,onal  events.  

CEB  will  s,ll  be  mainly  driven  by  government  in  ten  years.  

China’s  FDI  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  trade  will  influence  China’s  outbound  event  ac,vi,es.  

China’s  mul,na,onal  companies  will  play  an  important  role  

Interna,onal  des,na,ons  need  special  China  strategies  

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China-strategy: What do ICCA members already offer, plan or find relevant?

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Complete  travel  services  including  visa  issues  

Chinese/Mandarin  version  of  our  website  

Special  representa,ve  in  China  for  mee,ngs  and  events  

Special  market  surveys  on  the  Chinese  event  market  

Chinese  contact  person  in  our  office  

Visits  of  local  enterprises  and  organisa,ons    

Interpreta,on  services  

Chinese  speaking  contact  person  in  our  office  

Special  touris,c  pre-­‐  and  post-­‐conven,on  tours  

Par,cipa,ng  at  Chinese  trade  shows  

Chinese  delega,ons/site  inspec,ons  

Train  our  staff  in  special  cross-­‐cultural  competence  

Travel  agent  specialised  on  China  

Chinese  food  

21%  

29%  

30%  

31%  

32%  

35%  

36%  

37%  

38%  

41%  

41%  

43%  

46%  

55%  

Which  of  the  following  measures  for  Chinese  events  and/or  delegates    do  you  already  apply  or  are  in  planning?  

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Complete  travel  services  including  visa  issues  

Chinese  contact  person  in  our  office  

Special  representa,ve  in  China  for  mee,ngs  and  events  

Interpreta,on  services  

Chinese  speaking  contact  person  in  our  office  

Chinese/Mandarin  version  of  our  website  

Special  touris,c  pre-­‐  and  post-­‐conven,on  tours  

Visits  of  local  enterprises  and  organisa,ons    

Par,cipa,ng  at  Chinese  trade  shows  

Travel  agent  specialised  on  China  

Chinese  food  

Train  our  staff  in  special  cross-­‐cultural  competence  

Special  market  surveys  on  the  Chinese  event  market  

Chinese  delega,ons/site  inspec,ons  

59%  

61%  

63%  

65%  

67%  

67%  

68%  

75%  

77%  

78%  

80%  

81%  

82%  

83%  

Which  of  the  following  measures  for  Chinese  events  and/or  delegates  do  you  already  apply  or  do  you  think  are  relevant  for  your  future  business?  

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•  Many ICCA member are aware of the potential of the Chinese Event market

•  Some members have already special China- related offers.

•  Definitely the ICCA-Congress 2013 Shanghai will have some further impact on many ICCA-members-

Summary ICCA-survey on China

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52nd ICCA Congress

International Congress and Convention Association . Twitter: #ICCA13  

Thank you! Prof. Helmut Schwägermann Dr. Ding Yi International Event Management Shanghai (IEMS)

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Reference

China  Tourism  Academy  (CTA),  2013,  Annual  Report  of  China  Outbound  Tourism  Development  2012,  Tourism  Educa,on  Press,  Beijing  China  Tourist  Hotel  Associa,on  (CTHA),  China  Associa,on  of  Travel  Services  (CATS)  &  The  Associa,on  of  China  Conference  Hotels  (ACCA),  2013,  Annual  Sta,s,cal  and  Analy,cal  Report  of  Chinese  Mee,ng  Industry  2011,  Tourism  Educa,on  Press,  Beijing   Davidson,  R.  2013,  China  MICE  Buyers  Report  (Chinese  Mee,ng  Planners’  Site  Selec,on  Survey),  CIBTM,  Beijing   Hofstede,  G.  2013,  Dimensions  of  Na,onal  Culture (hWp://www.geerthofstede.nl/dimensions-­‐of-­‐na,onal-­‐cultures)