USA versus Mainland China MICE Comparision (10.28.13)

Comparing the MICE Industry: Asia (Mainland China) versus USA

David L Jones, PhDAdministrative Director

Department of Hospitality Management University of San Francisco

November, 2013

What We Will Cover

• Key Differences in MICE • Growth MICE market in Asia (Mainland

China)• MICE in the USA – mature market• Role of hotels to the MICE industry• Understanding other types of hotels and

resorts for MICE – Integrated Resorts• Future?

Emphasis on MICE

• Asia (Mainland China)

MICE• USA

MICE

What is the Key to the Difference?

• China• Exhibitions and Tradeshows

• Key to international trade

• Government meetings• USA

• Associations• Organizations of people with like interests

• Corporate meetings• Sales meetings

• Management meetings

ICCA – International Congress and Convention Association: Meeting Types

Dr. Jones Perspective

China MICE & USA MICE

Historical Perspective历史观点

• Personal experience – early 90s 个人经历 -90年代初

Large meetings and conventions 大型会议North American and European meetings coming to Asia, but not really China

北美与欧洲会议引入亚洲而非中国

• Exhibitions and tradeshows 展览与贸易展Focus was on attracting Westerners to Asia

主要目的在于吸引西方人到亚洲来

• Small meetings 小型会议Local offices of North American, European and Japanese Companies

北美、欧洲与日本公司的当地办事处

• What Does That Mean? 其意义何在？ 7

Western Meeting Specifications西方会议具体标准规格• Typical meeting set-ups

典型的会场设置General sessions 全体大会Breakout rooms 分组会议

• Size of meeting sessions会议规格

• Exhibits associated with association meetings – 54% of tradeshows managed by associations与协会相关之展览 --54%的贸易展由协会组织

• Basis of how Western hotel meeting rooms are built西方酒店会议用房的建造基本知识

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Typical Meeting Set-ups典型的会议布局

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Breakout Session分组会议

General Session全体大会

Differences in Size of Various Types of Meetings不同会议类型规格差异

Size of the Meeting Rooms for Conferences – North America北美会议用房规格

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Qualification to be a Conference Center成为会议中心必须达到的要求

Average group size is one obvious point of differentiation between conference centers and convention facilities. In addition, IACC believes that specializing in smaller meetings will lead to greater consistency and higher quality in the meeting product. Nonetheless, IACC may make allowance for average group size up to 100 people.

会议中心与会展设施之间的一个明显区别是会议团体的平均规模。国际会议中心协会（ IACC）认为专注于小型会议可以保证会议产品更好的一惯性与更高质量。 IACC认为可以接受的小型会议规模应该是在平均 100人以下。

International Association of Conference Centers 国际会议中心协会

Meeting Space Layouts会议空间布局

Differences in Asian Meetings亚洲会议的不同之处Meeting room set-up

会议用房布局

Requirement of head table at all sessions

所有会议都要求有主桌Formality of meetings

会议的正式性

Simultaneous interpretation同声传译

Size?规格？

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Asian Meeting Set-ups亚洲会议布局

Forum General Session Head Table论坛全体大会主席台

Breakout Session分组会议

Photo to be Added

Today’s Perspective当今观念• Intra-Asia meetings and forums 亚洲区域内会议与论坛

• Ease and cost of travel have led to increases in regional meetings 旅行之便捷与成本导致区域性会议增加

• Associations are growing in Asia 亚洲协会在增长

• CHINA!!???? 中国呢！！？？？

Growth of MICE in Asia

Growth of MICE in Asia

• “Potential MICE market shift to Asia” Chang (2006)

• New MICE venues mainly in Asia• 9 venues in Korea since 2001• Influx of venues in Southeast Asia -

Singapore• Macau – what is happening in SAR• Beijing and Shanghai – the future

Buyers in China and Asia Survey

Source: CIBTM Survey 2010

Top countries by number offuture scheduled meetings (2006-2017)

Source: ICCA 2007

Top cities by number of future scheduled association meetings (2006-2017)

Source: ICCA 2007

International Association Meeting in Greater China

Source: CIBTM Survey 2011

• Note Hong Kong and Shanghai

Popularity of Cities in Greater China

Source: CIBTM Survey 2011

Where Are They Going in Mainland

Source: CIBTM Survey 2011

Where Do They Want to Go?

Source: CIBTM Survey 2010

Prediction of China’s Convention and Exhibition Industry

• ICCA predicts: top MICE destination

• Fast Growth, with 20% of annual growth rate, because:• rich natural and cultural heritage• safe travel environment, • 40,000 establishments of foreign companies

• CEI-Asia survey (magazine): • 37% corporate picks China as the MICE destination in

2006, become top of the world and surpass Thailand

• ICCA, SITE, MPI: China’s MICE industry 5 fold in 2020

Source: CNTA 2007

Mainland China Perspective

“The government has recently begun to realize

the value of the meetings industry”

Haiyin Lieu, CEO of the China National Convention

Center

MICE in the USA:Mature Market

How Meeting Dollars Are Spent?

M & C - 2006

Attitudes of Meeting Professionals

Survey Highlights: Regional Meetings Professional Predictions

Prediction North America Europe Asia PacificNumber of Meetings 1.5% 0.0% -1.2%Number of Attendees per meeting 0.6% 1.8% -2.4%Overall Meetings Spend within organization 0.0% -1.8% -3.6%Regional Meeting Demand 2.3% -2.4% 4.0%Lead Times -1.6% -2.7% -4.0%

1. Orlando, FL 1. London 1. Shanghai2. Chicago, IL 2. Paris 2. Singapore3. Las Vegas, NV 3. Barcelona 3. Sydney4. Atlanta, GA 4. Amsterdam 4. Hong Kong & Macau5. San Diego, CA 5. Brussels 5. Bangkok & Chiang Mai

(Source: Cvent, 2013)

Top 5 Meetings Destinations

Role of hotels to the MICE industry

USA

What is a Convention Hotel?

Hotels as Convention Venues Characteristics

• Meeting space, guest rooms and banquet/food

functions• One location• Leverage of pricing

• Décor and ambience• Specifically built for meetings• Brass, glass, marble, wall coverings, plush

carpet• Hotel company versus government managed

• Ownership and management• Convention center development tied to hotel

development• Funding

• Multiple concurrent events and meetings• Size

Convention Hotel Chains – N.A.

• Hilton• Essentially the founders of convention hotels

• Sheraton• Before Starwood

• Hyatt• Always had some big hotels in major cities

• Marriott• Grew rapidly in the mid-1980’s with convention

hotels

• Renaissance

• Fairmont• Selected hotels

“Big Boxes”• Several 1000 rooms• Multiple ballrooms, exhibition hall or facility• Where?

• Las Vegas

• Orlando

• Chicago

• Atlanta

• Now Asia and Middle East

• Who?• Global brands

• Gaming companies

- LV Sands, MGM, Wynn

How Does a Convention Hotel Differ from a Convention Center as Convention Venue?

Role of Hotels

Role of hotels varies depending on where the main meetings are to be held.

Hotels may supply:Accommodation & some meals

• When all the activities of the convention are held elsewhereAccommodation, meals, seminar rooms for supplementary sessions

• When the major convention is held elsewhereFacilities for associated receptions, banquets & supportive events

• When some of the convention activities are held elsewhere and delegates stay in other hotels

Inclusive residential conferences and meetings• All the activities related to the convention are held and delegates

stay in the same hotel

Conventional Hotels - Asia

• Global Brands• IHG more than in N.A.

• Accor – Sofitel

• Kempinski• Different brands within group

- Marriott – JW Marriott and Renaissance, even Ritz-Carlton

• Asian Brands• Shangri-la

• Regal

• Millennium Capthorne

Convention Delegate Spending – USA - Breakdown

Hotels are the main beneficiaries of MICE: As much as 75% of total delegate expenditure is on accommodations and meals even when the main conference is in other venues.

Why do Hotels Want MICE Business?

Reasons

Important source of revenue F&B and other services

Increase room sales.

Repeat business (meetings on regular basis)Meeting rooms can be used for different purposes (i.e. private parties, dance etc)Being divisible and adaptable serve for several types of functions (exhibition halls, banquet halls, meetings, receptions etc)The average spending of the resident conference guest is higher than that for other market segmentsBalancing the market mix!!Economic cycles

What types of facilities do you use for most of your meetings?

Association Corporate Independent

Several chains 74% 61% 71%

Independent hotels 46% 45% 60%

Conference centers 35% 49% 39%

Convention centers 46% 35% 34%

Boutique hotels 24% 18% 36%

Special venues 19% 23% 27%

No particular type 14% 14% 10%

One particular chain 1% 1% 2%

Source: Golden-Romero 2007

2005 Meetings Market Report

Why would a hotel prefer an in-house group?

What it takes to be a convention venue hotel

Flexibility

Meeting space

Guest room locations

Service standards

Creativity

Different groups – different expectations

Attention to detail

Strong revenue and space management

Forecasting

Systems to manage guest rooms and meeting space

Experienced and dedicated staff to meeting and

conventions

Resorts and Integrated Resorts

Cases: Large Properties

Venetian and Palazzo Resort

MGM Grand

Hilton Hawaiian Village

Hilton Waikoloa Village

Atlantis – The Palm - Dubai

Venetian & Palazzo in Las Vegas

Atlantis Hotels Bahamas & Dubai

Large Properties versus Small Properties

Large properties can cater a wider range of MICE activities

Small corporate meetings of 30 to International Association Convention of 1,000

Smaller properties with close proximity to Convention Center can still take advantage of hosting all the F & B functions, supplementary sessions

Large properties tend to host international MICE activities while small properties tend to hold local MICE activities

Mainland China

Unique case of hotel convention venues

Convention Venue/Resort Domestic Hotels

OYC – Zhaoqing

First World Hotel – Hangzhou

Metropark Resort·Spring Plaza, Zhuhai

Do Our Assumptions on Hotel Meeting Space Apply in a Global World?

在全球化的世界里我们关于酒店会议空间的看法是否能够应用？

What Size Should the Meeting Space Be?会议空间规格应当多大？

0.06

0.3

1.3

0 0.2 0.4 0.6 0.8 1 1.2 1.4

China中国

USA美国UK英国

POPULATION人口

Comparing Possible Number of Attendees and Meeting Space比较一下可能参加会议代表人数与会议空间Financial industry employees per institution 每个金融行业

单位人员

Hotel ballroom sizes – Hyatt Hotels 酒店舞厅规格 --凯悦酒店

Comparing Possible Number of Attendees and Meeting Space可能会议代表人数与会议空间Financial industry employees per institution 每个金融行业

单位人员

Hotel ballroom sizes – Hyatt Hotels 酒店舞厅规格 --凯悦酒店

Grand Hyatt Macau – 20,742 Sq. Ft. – 2,500 Theater Style

Marriott’s Orlando World Center Case Study万豪集团奥兰多世界中心案例研究

Today’s Meeting Space今日的会议空间

How It Got There发展沿革

Year年

Guest Rooms客房

Ballrooms/Exhibit Halls宴会厅和展厅

Size (Sq. Ft.)规模（平方英尺）

Pre-Opening1983开业前

1500 2 25,000/30,000

Grand Opening1986开业

1500 2 37,000/40,000

Today今天

2000 4 37,000/40,000/50,000/105,000

Important Research Questions to Be Asked需要提出的重要研究问题• Do we need larger space?

我们是否需要更大空间？• How large should a hotel meeting space be?

一个酒店的会议空间应当多大？• What is the ideal layout of meeting space in

hotel or convention center in Asia?亚洲会议中心或酒店的会议空间理想布局是怎样？

• How much meeting space at convention centers?会议中心有多少会议空间？

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Future Convention Center Facilities in Mainland China未来中国内地会议中心设施

Anticipating the Trend?预测趋势？

Two Case Studies两个案例研究

China National Convention Center中国国家会议中心

Shanghai Expo Center上海博览会中心

Size Specification Highlights具体规格之亮点Convention Hall – 6,400 sq. meters (5,700 people)

会议厅 --6400平方米（ 5700人）

Ballroom – 4,860 sq. meters (3,000 for banquets)舞厅 --4860平方米（ 3000平方米用于宴会）

Shanghai - Auditorium Seating 2,500上海 --演讲厅座位 2500个

Shanghai 106 Meeting Rooms上海 106间会议用房

11 Can Seat More Than 200 People Each其中 11间房每间都可以容纳 200余人

Beijing Nearly 100 Meeting Rooms北京几近 100间会议用房

3 Can Seat More Than 540 People Each其中 3间房每间都可以容纳 540余人

What is the Future?

未来会是怎样？

Thank You谢谢大家