Download - Chinas outbound meeting_business_131106
52nd ICCA Congress
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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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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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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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• 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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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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3.1. The major groups of MICE industry in China
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3.2. Consumption Capacity & Patterns
State-‐run Ins,tu,on Mee,ngs
Government Mee,ngs
Associa,on Mee,ngs
Figure 3 Consump$on Capacity
Source: Adapted from CTHA, CATS & ACCA (2013, p. 30)
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Figure 4 Consump$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$ng Trend
Source: Adapted from CTHA, CATS & ACCA (2013, P. 24)
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Figure 6 Mee$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
52nd ICCA Congress
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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)