Going for the global limelight

Going for the global limelight

Hosting international events could further drive Thailand's tourism and improve its transport infrastructure and economy

Nur Alem Sphere is a symbol of Astana Expo 2017, held in the Kazakhstan capital from June 10 to Sept 10, 2017. Photos by WALAILAK KEERATIPIPATPONG
Nur Alem Sphere is a symbol of Astana Expo 2017, held in the Kazakhstan capital from June 10 to Sept 10, 2017. Photos by WALAILAK KEERATIPIPATPONG

International events are more than vehicles to drive the economy -- they can be useful platforms to build the national brands of host countries.

Marketing experts see several world-class events, such as the World Exposition, Olympic Games and Fifa World Cup, as great opportunities to push the host country into the global limelight.

The 2008 Olympic Games in Beijing is a good example. The event was the most expensive games ever held and drew 4.7 billion viewers, a number that made it into the Guinness World Records. Even more important, the event offered the chance for China to tell the world about its strong economy, and the sociocultural transformation it had made that would make the country acceptable to the world.

"It's an efficient way to propel the country onto the global stage, just like Japan did when it hosted the 1964 Olympic Games in Tokyo after World War II," says Kreingkrai Kanjanapokin, co-chief executive Index Creative Village Co.

"They use these world-class events not only to boost the economy but also to promote the national brand, and Thailand should follow suit. Hosting international events helps improve tourism, transport infrastructure and drive the economy eventually."

China spent US$40 billion (1.33 trillion baht) for the Summer Olympic Games held in Beijing nine years ago and the authorities reported average per capita income of residents in the capital doubled to 43,910 yuan (220,000 baht) six years after the event, while tourism around satellite cities remains brisk these days.

The mainland won the bid to hold the World Expo in Shanghai in 2010 following several international events, underlining the strategy of countries using world events to showcase their varied strengths.

"Kazakhstan is using the Astana Expo 2017 to build a reputation for being dynamic and open, in order to attract investors and tourists to the 25-year-old post-Soviet state," says Mr Kreingkrai.

When the expo finally closes its doors in September, the buildings and the infrastructure will be quickly turned over to new uses to drive the modernisation of the economy.

Thailand needs a long-term plan

Hosting international events comes with a gigantic price tag for infrastructure, accommodation and more. Importantly, countries need long-term strategies with core organisations to push tasks through.

"Although we have several governmental agencies involved with international events, there is no main body to outline future plans and set preparation well in advance for the country to contest [to host] global events," he says.

Such plans should be outlined, not a few years ahead but long enough to ensure the readiness of organising world events.

Thailand competed for the bid to host the 2020 World Expo in Ayutthaya province but failed. No clear policy, unstable politics and poor management were reasons given by the committee of the Bureau International des Exhibition (BIE) to drop Thailand from the contestant list.

A source says the Thai government even refused to confirm its intention to compete for the bid with BIE, and Dubai was declared the winner.

Mr Kreingkrai suggests the Thailand Convention and Exhibition Bureau (TCEB) broaden its role to sourcing and pitching world events in Thailand.

The government must give full authority to the agency to take charge of work that is currently under the supervision of the Prime Minister's Office, he says.

TCEB is occupied with Mice events (meetings, incentives, conferences and exhibitions) that are held locally to promote tourism and hospitality.

Thailand's Mice industry has been successful, with 155 billion baht in income expected for tourism and tourism-related industries this year, half of which will come from foreign Mice visitors.

"Hosting world-class events will benefit the overall economy and, more notably, the country's national brand in the long run," says Mr Kreingkrai.

Local operators have the capability to manage world exhibitions or events only if the government has strategies and visions to pitch, he says.

He learned that some events, such as Tomorrowland music festival, have considered locating in U-tapao, as the site is close to the resort towns of Pattaya and Rayong. There is still a lack of clarity on the part of Thai authorities, so the organisers of Tomorrowland moved on to another country.

"Hosting Tomorrowland would bring in tremendous tourism revenue from premium foreign visitors that pay for several days or a week at this music festival," says Mr Kreingkrai.

Limited big players

Despite never hosting any international expos, Thailand is a regular participant at the two major BIE events, with private companies playing a vital role over the past decade in creating the country's pavilion and events to represent the country.

These companies include WorkPoint Entertainment, JSL, Pico Thailand Co and Index Creative Village Co. Index has won most the government's bids over the past decade, including the rights to represent the country at 2010 World Expo in Shanghai, 2012 International Expo in Yeosu, South Korea, and 2017 International Expo in Kazakhstan, which is being held until Sept 10. The rights to 2015 World Expo in Milan went to WorkPoint.

As there is no main state agency to handle foreign expositions, the Prime Minister's Office takes on the task of finding private organisers by holding bids for big events. Index Creative Village was the winner for the latest event, with a budget of 249 million baht for Astana Expo 2017, beating rival event organiser Pico.

"The number of contestants falls every time, with only two contestants vying for this last event. This reflects the limited capability of players in the local industry," says Mr Kreingkrai.

Under the latest contract with the government, Index Creative Village must build the Thai Pavilion, decorate the interior and exterior and create edutainment exhibitions under the "Bioenergy for All" concept, in line with the main theme of "Future Energy" at Astana Expo 2017.

Despite a small budget and a tiny space of only 934 square metres in the 1.74-million-sq-m expo site, the Thai Pavilion received a warm response from visitors and was among the top 10 most visited pavilions during June 30 to July 23, accumulating more than 1.3 million visitors.

The most visited pavilions were Plaza Africa, Egypt, India, Russia, Turkey, Japan, Saudi Arabia, Uzbekistan, Thailand and Turkmenistan.

"With a small budget, we had to use all the marketing tricks to attract visitors and create social media activity. This strategy worked well, with a number of youths visiting the Thai pavilion," he says.

The Thai Pavilion ranked second to Austria as the Best Pavilion to Visit with Children from the 115 pavilions at the event.

Apart from games and the popular mascot "Palang" (an anthropomorphised corn cob), the display showcasing bioenergy from crops and animal dung fascinated people in Kazakhstan, which is rich in oil and gas but locals are largely unfamiliar with alternative fuels.

The profits from organising the government project are not large, says Mr Kreingkrai.

"But taking part in the event means broadening the reach of the company's reputation and enables us to create either pavilions or international exhibitions not only for Thailand but also for other countries," he says.

There are few Thai companies that are capable of pitching events overseas. The field still has low competition, in contrast with the local event business, which he describes as a red ocean industry.

B2C events: A red ocean business

Kavin Kittiboonya, chairman of the international marketing committee of the Thai Exhibition Association, agrees that competition among local event organisers is fierce, especially for fairs to promote products or in the B2C (business-to-consumer) segment.

"Event organising depends on the economic and political situations. Companies and governments pay less for events during economic downturns or periods with serious domestic issues," he says.

Only those who handle annual exhibitions and conferences can survive in the business, says Mr Kavin. The big events he mentions include food fairs such as ThaiFex-World of Food Asia, the metalwork exhibition Metalex, as well as the gems and jewellery expo and motor shows.

The number of registered companies offering Mice services was 5,076 as of July last year, up 10% from the same period the year earlier. They have a combined registered capital of 29.8 billion baht, up slightly from the previous period, according to Business Development Department data.

Of the registrants, 2,692 are organisers for meetings and 2,384 firms engage in organising exhibitions and conferences.

The rise is expected to support the continued growth of Thailand's Mice industry.

TCEB expects 27 million Mice visitors this fiscal year, of which 26 million are expected to be local. But despite foreign Mice visitors comprising only 1.1 million, they are expected to generate 101 billion baht in revenue this year.

For the next fiscal year, from Oct 1, 2017 to Sept 30, 2018, the agency projects 174 billion baht in revenue from the Mice industry, with 30.2 million visitors. Foreign visitors remain a main contributor to revenue, at 112 billion baht with 1.2 million visitors.

Visitors watch presentations at the Thai Pavilion.

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