1. 52nd ICCA Congress 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 International Congress and Convention Association . Twitter: #ICCA13

2. Our Agenda: 1. 2. 3. 4. 5. Who we are Aim, Research Thesis, Methodologies An Analysis of China MICE Industry/ Meeting Market Online survey: What Chinese and Non-Chinese ICCA members think about Chinese outbound event business Summary International Congress and Convention Association . Twitter: #ICCA13

3. 1. International Event Management Shanghai (IEMS) Since 2004 Hochschule Osnabrck 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 International Congress and Convention Association . Twitter: #ICCA13

4. The Research Team Prof. Helmut Schwgermann, Hochschule Osnabrck, ICCA-member since 1986, German Programme Director of IEMS since 2004 Dr. Ding Yi, SUIBE, researcher with an international background/ education International Congress and Convention Association . Twitter: #ICCA13

5. 2. Research Aim and Methodology 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) International Congress and Convention Association . Twitter: #ICCA13

6. Our Research Statements: We expected that. 1. 2. 3. 4. 5. 6. Chinese Event Business is dierent due to specic governmental inuence Chinese Event Business will aect the International Meeting Industry soon. More individual or group of delegates will take part at international meetings/ business events worldwide More Chinese decision makers (e.g. Board members in Intl. Associations or Corporations) will be inuencing international meetings and the selection of destination More China-based business events will go abroad, starting with incentive travel to Asian countries Few ICCA members/destination have already a China Strategy International Congress and Convention Association . Twitter: #ICCA13

7. Introduction Figure 1 The Chinese Mee$ng Market Mee$ngs Non-Prot Organisa$ons Corporate High Govern- mental Inuence Middle Govern- mental Inuence Government/ Low Govern- mental Inuence State- run ins$tu$ons/ Government funded associa$ons International Congress and Convention Association . Twitter: #ICCA13 Associa$ons in transit- process Grass Root Associa$ons

8. 3.1. The major groups of MICE industry in China International Congress and Convention Association . Twitter: #ICCA13

9. 3.2. Consumption Capacity & Patterns Figure 3 Consump$on Capacity State-run Ins,tu,on Mee,ngs Government Mee,ngs Associa,on Mee,ngs Source: Adapted from CTHA, CATS & ACCA (2013, p. 30) International Congress and Convention Association . Twitter: #ICCA13

10. Figure 4 Consump$on PaMerns State-run Government Associa,on Ins,tu,on Mee,ngs Mee,ngs Mee,ngs Source : Adapted from CTHA, CATS & ACCA (2013, P. 31) International Congress and Convention Association . Twitter: #ICCA13

11. 3.3. When do they organise the meetings? Figure 5 Mee$ng Trend Source: Adapted from CTHA, CATS & ACCA (2013, P. 24) International Congress and Convention Association . Twitter: #ICCA13

12. 3.4. Lead Time Figure 6 Mee$ng Lead Time Source: Adapted from Davidson (2013, p6) International Congress and Convention Association . Twitter: #ICCA13

13. 3.5. Destinations Figure 7 Des$na$on Breakdown for Chinese Outbound Tourists International Congress and Convention Association . Twitter: #ICCA13 Source: CTA (2012, P39)

14. Which destinations do the four groups go to for their meetings? Table 1 Corporate State-run Institution Government Association Asia Developed countries mainly Europe and North America Developed countries mainly Europe and North America Where are the headquarters located International Congress and Convention Association . Twitter: #ICCA13 Developed countries mainly Europe and North America

15. 3.6. How often do they use a third party for their meetings? Figure 8 Who Are the Event Organisers International Congress and Convention Association . Twitter: #ICCA13 Source: CTHA, CATS & ACCA (2013, P. 12)

16. 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. International Congress and Convention Association . Twitter: #ICCA13

17. 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. International Congress and Convention Association . Twitter: #ICCA13

18. 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. International Congress and Convention Association . Twitter: #ICCA13

19. 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. International Congress and Convention Association . Twitter: #ICCA13

20. 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. International Congress and Convention Association . Twitter: #ICCA13

21. 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) International Congress and Convention Association . Twitter: #ICCA13

22. 4. Online-survey ICCA membership Aims: to nd out the attitude and assessments of ICCA members towards the development of the meeting market in China To nd 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! International Congress and Convention Association . Twitter: #ICCA13

23. 41 % had already experience with events from China yet. (Not only meetings, but all ind of events! Do you/does your organisa$on already have experience with events which have been organised by an organisa$on from Mainland China ? I do not No Answer know 0% 3% Yes, once 9% Yes, quite o^en/regularly 13% No, not yet 56% International Congress and Convention Association . Twitter: #ICCA13 Yes, from ,me to ,me, seldom 19%

24. 2/3 had already experience with delegates from mainland China Do you/does your organisa$on already have experience with delegates from Mainland China? No Answer 3% I do not know 4% Yes, from ,me to ,me 40% No, not yet 26% International Congress and Convention Association . Twitter: #ICCA13 Yes, once 6% Yes, quite o^en/ regularly 21%

25. For nearly 30 % the Chinese delegation has been the biggest foreign delegation at least once How o[en was the delega$on from Mainland China the biggest foreign delega$on at your event? 46 Not yet/ never 17 From ,me to ,me/seldom 25 No Answer/do not know Quite o^en/regularly 6 Once 6 International Congress and Convention Association . Twitter: #ICCA13

26. ICCA members think, that.... (1=strongly disagree, 7= strongly agree) Interna,onal des,na,ons need special China strategies 5,8 Chinas mul,na,onal companies will play an important role 5,6 Chinas trade will inuence Chinas outbound event ac,vi,es. 5,5 Chinas FDI will inuence Chinas outbound event ac,vi,es. 5,4 CEB will s,ll be mainly driven by government in ten years. 5,4 CEB s,ll has to learn how to organise interna,onal events. 5,2 Is the strongest Asian event market. 5,0 ICCAs top 5 country ranking within 10 years. 5,0 Take more inuence on the des,na,on selec,on. 5,0 4,6 Mul,at. Companise are already relevant even for us. Taken over from Japan as sourcemarket for leisure tourism. 4,4 ICCAs top 5 country ranking within 5 years ,me. 4,2 Will be strongest Asian source market. Chinese decision makers need no special treatment. International Congress and Convention Association . Twitter: #ICCA13 4,1 3,7

27. China-experienced ICCA-members advise: you need a special China strategy! (agree stronger to all statements) 6,4 Interna,onal des,na,ons need special China strategies 6,0 Chinas mul,na,onal companies will play an important role in the 5,8 Chinas FDI will inuence Chinas outbound event ac,vi,es. Chinas trade will inuence Chinas outbound event ac,vi,es. 5,6 The Chinese event market is the strongest Asian event market. 5,6 Ch. even,ndustry has to learn how to organise interna,onal events. 5,5 Will beICCAs top 5 country ranking within 10 years. 5,5 Ch. decision makers will take more inuence 5,4 Chinese mul,n. companies are already relevant even for us. 5,4 Ch. Even,ndustry be the strongest Asian source market for our 5,0 Ch. taken over from Japan as leading source country for leisure tourism. 4,9 Ch. event industry will be mainly driven by government in ten years. 4,5 Will be ICCAs top 5 country ranking within 5 years ,me. 4,5 Ch. decision makers do not need any special treatment. International Congress and Convention Association . Twitter: #ICCA13 4,0

28. Chinese Eventindustry (Online Survey October 2013, 55 respondents, not representative) is very optimistic about development! Interna,onal des,na,ons need special China strategies 6,0 Chinas mul,na,onal companies will play an important role 6,3 Chinas trade will inuence Chinas outbound event ac,vi,es. 6,0 Chinas FDI will inuence Chinas outbound event ac,vi,es. CEB will s,ll be mainly driven by government in ten years. 5,8 3,2 CEB s,ll has to learn how to organise interna,onal events. 6,5 Is the strongest Asian event market. 6,8 6,1 ICCAs top 5 country ranking within 10 years. 5,9 Take more inuence on the des,na,on selec,on. 5,7 Mul,at. Companies are already relevant even for us. Taken over from Japan as sourcemarket for leisure tourism. ICCAs top 5 country ranking within 5 years ,me. 5,6 Will be strongest Asian source market. Chinese decision makers need no special treatment. International Congress and Convention Association . Twitter: #ICCA13 6,8 4,3

29. China-strategy: What do ICCA members already offer, plan or find relevant? International Congress and Convention Association . Twitter: #ICCA13

30. Which of the following measures for Chinese events and/or delegates do you already apply or are in planning? 55% Chinese food 46% Travel agent specialised on China 43% Train our sta in special cross-cultural competence 41% Chinese delega,ons/site inspec,ons 41% Par,cipa,ng at Chinese trade shows 38% Special touris,c pre- and post-conven,on tours Chinese speaking contact person in our oce 37% Interpreta,on services 36% 35% Visits of local enterprises and organisa,ons 32% Chinese contact person in our oce 31% Special market surveys on the Chinese event market 30% Special representa,ve in China for mee,ngs and events 29% Chinese/Mandarin version of our website Complete travel services including visa issues International Congress and Convention Association . Twitter: #ICCA13 21%

31. 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? 83% Chinese delega,ons/site inspec,ons 82% Special market surveys on the Chinese event market 81% Train our sta in special cross-cultural competence 80% Chinese food 78% Travel agent specialised on China 77% Par,cipa,ng at Chinese trade shows 75% Visits of local enterprises and organisa,ons Special touris,c pre- and post-conven,on tours 68% Chinese/Mandarin version of our website 67% Chinese speaking contact person in our oce 67% 65% Interpreta,on services 63% Special representa,ve in China for mee,ngs and events Chinese contact person in our oce Complete travel services including visa issues International Congress and Convention Association . Twitter: #ICCA13 61% 59%

32. Summary ICCA-survey on China Many ICCA member are aware of the potential of the Chinese Event market Some members have already special Chinarelated offers. Definitely the ICCA-Congress 2013 Shanghai will have some further impact on many ICCAmembers- International Congress and Convention Association . Twitter: #ICCA13

33. 52nd ICCA Congress Thank you! Prof. Helmut Schwgermann Dr. Ding Yi International Event Management Shanghai (IEMS) International Congress and Convention Association . Twitter: #ICCA13

34. 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) International Congress and Convention Association . Twitter: #ICCA13