INDUSTRY GROWING AT 18% A YEAR; INTERNATIONAL DELEGATES 814,000 (EXPECTED) IN 2007; REVENUE GENERATED IN 2007 56 BILLION BAHT;
TOP THREE INCENTIVE MARKETS ARE HONG KONG, INDIA AND SINGAPORE, WHILE MIDDLE EAST AND THE RUSSIAN FEDERATION ARE THE FASTEST GROWING

ECONOMIC
MICE business soars to new heights

Thailand's Meeting, Incentive, Convention and Exhibition (MICE) business continues to blaze ahead, despite a year of political uncertainly, and looks set to register overall spending growth of 20% this year.

It is a remarkable achievement for an industry that is typically hard hit by any external factors that can see business events groups cancelling at the drop of a hat.

This was the case at the beginning of the year as the sector was hit hard by cancellations in the wake the New Year bombings, but since then it has recovered tremendously and displayed a resilience that will set it in good stead for years to come.


According to the Thailand Convention & Exhibition Bureau (TCEB), Thailand will welcome a record 814,000 MICE delegates in 2007, up 18% from the 677,500 in 2006, and they will inject an estimated 56 billion baht in foreign exchange revenue into the Thai economy.

TCEB board chairman MR Disnadda Diskul said that MICE revenue increased 20% on last year with major source markets coming from Asia, Europe and Australia.

TCEB figures show that the ASEAN region provides the bulk of convention delegates, with Malaysia leading the way followed by Singapore and Indonesia, while numbers from Japan jumped 110% and Korea catapulted 360%.

Bangkok, Phuket, Pattaya and Chiang Mai remain the preferred choice of MICE delegates while Krabi, Hua Hin and Chiang Rai are gaining in popularity.

"Overall, the meeting and incentives industry has shown a constant growth rate of 20% to 25% per annum," MR Disnadda said.

"This is due to the industry's strengths in terms of greater accessibility, room renovation and the expansion of new conference halls, exhibition centres and transportation and public utilities.

It also includes our unique culture and the famous Thai cuisine as well as a diversity of activities and tourist attractions.

QUOTE Incoming Trade Exhibition Association of Thailand president Patprapee Chinachoti forecast that over the next ten years Asia will be divided up into three centres for trade exhibition business; China, India and Southeast Asia, where Thailand is well positioned with 210,000 square metres (sqm) of space to be the regional hub.

" He said TCEB will promote the nation's tourism campaign, the Royal Initiative Discovery, to demonstrate Thailand's unique advantages for the meetings and incentives market as well as for exhibition planners.

"It (the campaign) will create new jobs and generate income for people and entrepreneurs in related businesses, resulting in increased business opportunities to serve the MICE industry, particularly investment and additional jobs," he added.

EXHIBITIONS
Exhibition space expansion fuels growth potential

Thailand has taken major steps towards achieving its goal of becoming the exhibition hub of Southeast Asia this year by opening new venues, and expanding existing facilities that will enable the Kingdom to compete with its regional rivals.

Backed by expected industry growth of up to 15% this year, according to the Thailand Exhibition & Convention Bureau (TCEB), investors are confidently pouring in millions of dollars in anticipation of a bright future.

Add to this its geographical location, strong accessibility, affordability, high hospitality standards and attractive destinations, the trade is gearing up in an attempt to construct effective bids for major regional events.

Incoming Trade Exhibition Association of Thailand president Patprapee Chinachoti forecast that over the next ten years, Asia will be divided up into three centres for trade exhibition business; China, India and Southeast Asia where Thailand is well positioned with 210,000 square metres (sqm) of space to be the regional hub.

He added that the focus going forward would be on high-yielding international trade shows, with its first target a bid for International Telecommunication Union 2010, last held in Asia in Hong Kong in 2002.

Hardware to support these goals was recently supplemented by the opening of 10,000 sqm of space at Centara Grand & Bangkok Convention Centre at CentralWorld.

Moreover, the Bangkok International Trade and Exhibition Centre is planning to almost double its exhibition space from 36,000 sqm to 70,000 sqm, or possibly even 100,000 sqm.

IMPACT Exhibition Management also added a new banqueting facility, the 3,500 sqm Royal Jubilee Ballroom earlier this year, and has unveiled plans to build a 400-room four-star hotel on its grounds.

"We have been considering it for a while.

It is something that makes sense and it is something that we were going to do sooner or later," said IMPACT managing director Paul Kanjanapas.

"Financially, it is the right time to be going ahead with the project; it makes good business sense. " This is often difficult for the private sector, which continues to face obstacles.

Swiss International Air Lines general manager for Thailand, Laos, Myanmar, Cambodia, Vietnam and chairman of the Thailand Board of Airline Representatives Brian Sinclair-Thompson, said: "In other Asian countries such as Singapore and Kuala Lumpur there are incredible incentives to fly into those markets. In Thailand there is nothing like this. "

INCENTIVES
Trust and quality to drive meetings and incentive industry

The Thailand incentive and meetings industry is growing at up to 25% annually, according to Thailand Convention & Exhibition Bureau (TCEB), and as the sector expands, so does the need to develop new markets.

Regional markets in North Asia and South Asia remain the major sources of incentive and meeting business, with Hong Kong, India, and Singapore the big performers in the past 12 months.

Outside of the traditional markets, TCEB is planning to concentrate on the emerging markets of the Middle East and Russia, building them out of their established interest in Thailand as a tourism destination, according to TCEB director of incentives and meetings Malinee Kitaphanich.

Ms Malinee was instrumental in launching the highly successful "It Must Be Thailand" campaign, which invited 94 meeting and incentive planners from China, Hong Kong, India, Malaysia, Pakistan, Russia, Singapore, Taiwan, the UK, and the US to experience Thailand.

"It really demonstrated the commitment from both the Thai government and the private sector," she said.

"TCEB hosted the event with full support of industry partners such as the luxury Eastern & Oriental Express for exclusive transfers from Bangkok to Hua Hin where all planners were spoiled with a wonderful luncheon onboard and of course surprising shows throughout the programme.

" TCEB, still in its relative infancy as an organisation, is striving to build confidence in Thailand as a meeting and incentive destination.

"Our main goal is to ensure trust and highquality events to enable us to position Thailand as a top destination for meetings and incentives," said Ms Malinee.

"We have many attractive qualities, such as our hospitality industry, our dedication, our spas, meditation, dining, well-being and lifestyle. "

CONVENTIONS
Convention business poised to expand

Thailand's geographical position at the crossroads of India and China is poised to benefit the country's convention sector as the economies of the two countries expand at a tremendous rate.

A slew of new facilities, plus numerous refurbishments set to take place over the next two to three years, will help Thailand cope with the expected additional demand.

The convention sector in China and India is booming, but industry experts say the infrastructure, especially in India, does not meet requirements.

Centara Grand & Bangkok Convention Centre at CentralWorld (BCC) will be a natural beneficiary, with general manager Michel Horn confidently predicting that "it is with venues like BCC that we will capture more of these larger events from other destinations within the region.

" To grab its share of the growing convention market, the Pattaya Exhibition and Convention Hall has embarked on a one billion baht expansion to increase its capacity from 5,800 delegates to 8,000.

Thailand is a great choice for the UK Out of Europe, the UK is currently No. 1 conference and incentive travel market for Thailand, with Germany a close second. Thailand, considered to be an 'exotic' destination, has for several years been a very popular long haul destination for UK event planners, with its natural resources and variety of locations. The only drawbacks for UK MICE planners is the lengthy travel time to get to Thailand and the time zone difference. Despite various setbacks which have beset Thailand in recent years, business has bounced back quickly after each challenge. Today, Thailand continues to be popular with UK offshore meeting and incentive travel planners. Despite strong competition and recent limited MICE promotion and marketing, Thailand remains on top. According to the 2006 Top Ten Most Popular Long Haul Destinations survey conducted in the UK, Thailand ranked No. 6 in terms of volume group business and No. 4 by number of room nights. The most recent challenge to beset Thailand – the military coup – caused a short-term loss of confidence in the destination and reversal of good progress Thailand was making. It remains to be seen how well Thailand will do during 2008. It is not difficult, from a UK standpoint, to see how much better Thailand could do without the political issues, and with the right sort of promotion. There is great potential for the future of Thailand's MICE industry. Maggie Greenstock TCEB Representative, UK

Thailand's MICE industry: Going for growth With the political turmoil of last year and an uncertain outlook, we forecasted a fairly bleak 2007 for a healthy MICE industry in Thailand. Contrary to expectations, we had a reasonably good first half-year as international meeting and incentive travel planners continued to bring their events to the Kingdom. Phuket has fared exceptionally well for us, with Bangkok being a little slower to secure business. The second half of 2007 has not been as buoyant. Corporate decision-makers regionally, as well as at home, have held back their conference plans during the run up to the predicted December 23 election. It is not unusual for a destination to show a slowdown in corporate events during the preceding six months of a general election. The long-haul MICE feeder markets to Thailand are performing far better than those closer to home. Customers geographically farthest from us are less attuned to the political climate here. A highlight of our 2007 event calendar was the Diethelm Travel Thailand 50th Year Golden Anniversary reception held on the 57th floor of CRC Tower. Diethelm Events orchestrated the party, which was attended by the who's who of Thailand's tourism industry. We managed to work our magic, given the available budget, and stage a unique reception. Another highlight for us this year was our appointment to handle the Thailand Convention & Exhibition Bureau's (TCEB) educational trip for 94 corporate event planners flown in from ten key markets worldwide. We created a programme of two nights in Hua Hin sandwiched between one night in Bangkok before and after. This turned out to be a super showcase with our business partners demonstrating what Bangkok and Hua Hin have to offer. Looking forward to 2008, I am forecasting a much better year for Thailand's MICE industry. Doubledigit growth, a wider choice of products, with new hotels and resorts opening, plus ramped up promotion by TCEB and the Tourism Authority of Thailand. All the right ingredients for a healthy MICE industry in Thailand. David Barrett Executive Manager Diethelm Events

Scheduled for completion in March 2008, the project will add a 7,000 square metre (sqm) pillar-free hall, nine breakout rooms and a 1,600-sqm-reception space.

Though construction of Chiang Mai's 3,000- delegate convention centre has been put on hold, hotels are picking up the slack.

The 281-room Shangri-La Hotel Chiang Mai, is due to open in December 2007, and will offer a 1,400-sqm ballroom for 1,200 guests and Le Meridien Chiang Mai, opening in April 2008, will offer a 1,050-seat Grand Convention Hall.

Currently, The Mandarin Oriental Dhara Dhevi, Chiang Mai Plaza, Holiday Inn Chiang Mai, and The Empress Hotel, offer sizeable function spaces, and on the horizon is Best Western Chiang Mai's rooftop function room with a 360-degree view of the city.

After years of debate, the private sector is taking the lead on the Phuket Convention Centre.

Capital investment firm IHG Funds announced in August that it would establish a two-billion-baht fund for its construction, which will include a 3,000-delegate convention hall.

The site will be selected this year, with the hunt for investors to kick off in early 2008.

BANGKOK CONVENTION CENTRE Centara grabs centre stage Centara Grand & Bangkok Convention Centre at CentralWorld (BCC) became the new kid on Thailand's MICE block on 19 July, when it hosted its inaugural event, the International Bangkok Film Festival.

The latest venue to grace the Kingdom's Meetings, Incentives, Conventions and Exhibitions (MICE) industry is expected to command the attention of regional and international business event planners due to its proximity to five-star hotels, shopping and entertainment, right in the heart of the city.

The adjoining 505-room Centara Grand hotel is expected to open in April next year.

"BCC is a part of a total integrated venue including a hotel, convention centre and lifestyle retail and entertainment complex," said general manager Michel Horn.

"We are in the central business district area and surrounded by thousands of additional hotel rooms, all within easy walking distance of BCC.

This is a unique proposition for Bangkok, and positions us apart from our competitors.

" The convention centre covers 5,403 square metres (sqm) and can accommodate 5,500 delegates in theatre configuration and 3,000 in a classroom set up.

The venue's 970 sqm World Ballroom can host 1,100 delegates for cocktails or banquets of up to 700.

The BCC also offers 15 Lotus Suites for a combined breakout-room space of over 1,600 sqm and eight food and beverage outlets offering Thai, Japanese and International cuisine.

BCC's first true test came when it recently welcomed 5,000 delegates to Asia Pacific's top MICE trade show, the 15th IT&CMA.

"This event will be the showcase for BCC as a new international venue for exhibition and conventions, and to prove Thailand as a MICE hub in Southeast Asia," said Mr Horn.

The event is utilising all of BCC's total space of 10,000 sqm.

MICE in Thailand: Future hub or past glories? I wonder how many people have noticed that this government has managed to appoint the best team ever to lead tourism in Thailand. We presently have: • Minister of Tourism who understands sustainability and tourism capacity management • a newly appointed Permanent Secretary that has an admirable "can-do-today" attitude • a TAT governor who has brought back the aggressive marketing mentality of the 1980s and 1990s in her organisation • a new TCEB board that has lots of travel and tourism industry representatives • an energetic TICA organisation in both education and promotional activities. So why then is Thailand still not the MICE hub we all dream of? Indeed, why is it actually losing the battle against many new and even older MICE destinations in Asia? I believe it is for several reasons. The present politics plays an undermining and ambiguous role. Planning is still not strategic. Vision remain short-term. Last but not least, teamwork between stakeholders is patchy. The result is that the big TCEB budget can support bidding efforts but still does not convince most professional decision-makers. However with these distinguished team leaders, it is now up to the private MICE industry to stop moaning and groaning and join hands. We need to create a "TEAM THAILAND" where all players listen to their coaches and win their individual bids. That way Thailand as a whole will triumph in the marketing war between Asian MICE destinations. Past glories are not enough. Innovation and creativity are the modern keys to glory and this requires committed efforts by the private sector to come up with new destinations and themes. We need to find new "wow" effects and to take a modified approach to the use of Thai culture as our unique selling point. Leadership is action, not position. So where is the person who can get all the stakeholders to do what they seemingly don't want to do: cooperate as "TEAM THAILAND" in order to accomplish what they all want to achieve – Thailand's status as the MICE hub of Asia? I pray that the future TCEB director-general has those leadership qualifications. Bert van Walbeek CEO, The Winning Edge