CHINA’S economic boom has spurred higher spending and greater sophistication in event choices made by local companies.

According to Roger Tondeur, president of MCI, a congress and communications specialist, more Chinese coporates are taking their events to Europe. He said: “Business from Asia to Europe are usually from Thailand, Singapore and Malaysia. Today, China is picking up fast.”

“Recently we handled a large week-long incentive for a Chinese insurance company to Paris and Monaco.”

Shanghai China Travel International (CTS) MICE Center sales manager of executive travel department, Jerry Jiang, reported the same trend, saying that the Chinese outbound incentive market has grown rapidly in the last five years.

Jiang told the Daily that the market was not only travelling farther, it was also becoming more sophisticated in the choice of destinations and programme.

“Destinations such as Singapore and Malaysia are easy to travel to and they continue to be popular with Chinese corporates, but we have seen growing demand for Europe coming from the automotive industry, financial institutions and (multi-level marketing) companies such as Amway,” Jiang said.

Recognising the potential for further growth in China, Tondeur said he was looking to open more offices in China.

“We have offices in Shanghai and Beijing, and we are looking at opening three more. Chengdu is our priority, followed by Guangzhou and Shenzhen,” he said.

– Read more in TTG Show Daily – IT&CM China 2012

CHINA still remains an attractive longhaul destination for tight-budgeted buyers from the US and Europe despite the economic crisis.

Andrew Davis, vice president, Global Accounts, HPN Global, said: “The appeal of China is still strong in the US. Airfare from the US to China is cheaper than to Europe, and hotels (in China) are inexpensive.”

Rachelle Jailer Villadares, managing director, Venue Guru International UK, said: “China’s room rates are lower than France, although clients may pay less for airfares within Europe.”

Giavanna Brunet, senior incentive manager, Communication & Training Italy, said: “China is appealing (for Europeans) because it is safe and value-for-money. The financial crisis is still affecting our (European) clients. They now have limited budgets, but still require the same value.”

Even though prices in China were lower than in Europe, the longer travel time meant that clients were expecting a better experience, said Brunet. “While prices are still good (in China), I have noted that hotel rates and F&B costs have increased over the last two years,” she said, adding that she hoped suppliers would maintain their prices.

Mireille Berstein, general manager, MHB Congress International France, also expects Chinese suppliers to maintain ground prices to keep business from Europe going.

“Hotels in France are also reducing their rates to (try and keep the market at home), so there is competition. The good thing is that airlines are reducing prices,” she said.

Read more in TTG Show Daily – IT&CM China 2012

SANYA may boast a massive surge in new tourism infrastructure, but some event specialists have decided to bypass the destination due to its high prices and poor service.

According to Xia Qin, CEO of Zhuhai Sea & Sky International Travel Service, which handles golf and meeting groups out of Guangdong, five-star hotel rates in Sanya could balloon from RMB2,000 (US$317) to RMB3,000 per night during off-peak days to at least RMB7,000 during busier periods.

Xia added that dinners in restaurants outside of hotels were “overpriced”, an observation shared by Sheraton Sanya Resort assistant director of convention sales, Jessie Mar, who said certain venues even require a minimum head count charge.

Bard Medical Devices (Beijing) HR & ADM department executive assistant, Tina Yang, told the Daily that she would not consider Sanya in the near future due to poor service standards and high costs, and would probably choose Malaysia or Singapore if the company wanted to go abroad with the same budget.

Tracy Li, vice president sales and marketing of yoopay.cn, who organises offsite client meetings, said: “The local government is not doing enough to improve the situation.”

Malaysia’s IMR Group director, BP Tan, also hopes the authorities will do more to “ensure there is no profiteering and unfair business practices”.

Read more in TTG Show Daily – IT&CM China 2012

Reporting by Patricia Wee

CITS MICE, the business events division of China International Travel Service (CITS) Shanghai, is making moves to entrench itself as the leading player in the domestic MICE arena.

Speaking to the Daily, Tong Wei, president, CITS Shanghai said more local companies were internationalising and ramping up their activities overseas with a growing Chinese economy, resulting in higher MICE demand throughout China.

Established in 2010, CITS MICE caters to a mix of Chinese companies and government entities, as well as local offices of multinational firms. Last year, the division garnered RMB 7.4 billion (US$1.2 billion) in revenue through 1.5 million roomnights, up from 960,000 roomnights in 2010. Highlights last year included a 30,000-pax incentive to South Korea, a 17,000-pax group to Scandinavia and several groups to Egypt.

According to Tong, CITS MICE is specifically looking to enhance its capabilities in conventions and exhibitions, leading it to acquire a stake in IT&CM China last July. The annual MICE show is owned and organised by TTG Asia Media and its partner, MP International.

“CITS’ M&I business is traditionally very strong. We are aiming to expand into conventions and exhibitions to offer the full range of MICE services,” said Tong.

Currently, CITS MICE has offices in Beijing, Shanghai, Guangzhou and Harbin, where two-third of its business is generated. Tong said the divison was planning to grow its domestic footprint over the next two to three years, especially in the coastal areas in China’s south-east and in inland areas such as Sichuan province, where the vibrant economy is translating into burgeoning MICE demand.

Read more in TTG Show Daily – IT&CM China 2012

SHANGHAI and Beijing have closed ranks and embarked on a groundbreaking collaboration to jointly develop MICE tourism and target international events.

Kicking off the partnership by co-hosting this year’s China (Shanghai) International Meetings & Conferences Forum, Beijing Municipal Commission of Tourism Development (BTD) and Shanghai Municipal Tourism Administration (SMTA) this morning signed an MoU which outlined future cooperation with regards to jointly bidding for international MICE, sharing of resources like the Shanghai Meetings Ambassadors programme, and joint marketing and promotion efforts targeting overseas markets.

The agreement will also extend to cooperation when either city plays host to international events, such as during next year’s ICCA annual conference in Shanghai, which will see pre- and post-event tours to Beijing.

“This is the first time that we are joining hands to promote China as a single MICE destination,” said SMTA vice chairman, Connie Cheng.

“Shanghai on its own is relatively small and what we can promote is limited, thus we need to engage bigger players to increase our competitiveness. Both cities have their unique advantages. Beijing is the political and cultural centre, while Shanghai is the financial centre. The collaboration will better enable both destinations to meet the needs of different events.”

– Read more in TTG Show Daily – IT&CM China 2012