AS TENSIONS escalate over the fate of Greece in the eurozone and a bank run in Spain, European MICE buyers and Asian sellers interviewed at IMEX expect business to be flat this year.
Bob Guy, managing director, Destination Asia Singapore, said: “The UK market is still there, but lower than usual. Central Europe is normal. Southern Europe is non-existent.”
“I had one appointment from Portugal and they wanted dinners with wine, but didn’t want to pay for it. Their budgets are being squeezed, yet they don’t want to compromise on quality and wanted us to cut prices. In Singapore? Forget it,” said Guy, who also warned that high room and venue rental rates in Singapore would have its consequences. He tipped Singapore to experience a down cycle in 2014 “as people are going to go somewhere else”.
“The Chinese are the flavour of the month indeed, but don’t believe that any market is forever,” he said.
As for the group from Portugal, Guy said “we would have to (devise) an optical illusion – a creative hawker centre dinner that looks better, for instance”.
Cedric Bareme of ATPI France, said: “In France, business is still better than in Portugal, Spain, Greece or Italy. The recent presidential election was not good for business, but now business seems to be starting again.
“Till now, however, business is not back to the level it was before the sub-prime crisis in the US in 2008. I expect this year to be the same as last year.
“There are fewer incentives, and more seminars with some incentive in them. Groups don’t want to go to bling-bling places; things are more rational now. Our hottest destination is actually France itself; half of the business stays within France because of budget reasons and it’s also a great destination. Asia, however, gives the best service in the world in my opinion, but as the trend is for companies to shorten meetings duration, it has become more challenging to feature Asia.”
Carlos de Sebastian, managing director/director-general of Tilesa Kenes Spain, said: “The (Spanish economic) crisis is affecting business, especially congresses that depend on the national market. But we’re focused on international medical congresses and find that Spain’s links to Latin America are a huge advantage.”
INCON, a network of 10 companies providing conference and destination management services, reported a “flat at best” business outlook for 2012.
“For the majority of respondents, business levels remain the same as in 2011, but there has been a sharp fall in the number of partner companies reporting improved business levels. In 2011, this figure stood at 62 per cent, which was marginally higher than the 60 per cent scored in 2010. In 2012, it is significantly lower at 41 per cent,” the report said.
Guy said DMCs and PCOs were making sure they had diversified business sources.
“The US, for instance, is making a comeback to Asia. American businesses are so keen to do business in Asia that there are many study missions now. IMEX organisers also hosted more buyers from North America and Asia – I had real appointments for real MICE business. Real Chinese MICE business, for instance, is emerging – it used to be a last-minute booking for next weekend,” said an encouraged Guy.
US buyer, Ilyse A. Link, manager, meetings services of Parexel, said: “The US economy is getting better, so we’re seeing an increase in the number of meetings. We handle pharmaceutical companies’ investigative meetings for drugs. In Asia, we’ve been to Bali, Hong Kong and Japan so far this year.”
