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.

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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.

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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

MINDFUL of the need to diversify its tourism offerings in order to sustain long-term growth, Beijing has decided to ramp up efforts in developing its MICE industry.

Speaking to TTG Asia e-Daily on the sidelines of the China (Shanghai) International Meetings & Conferences Forum this morning, Sun Weijia, deputy director general, Beijing Municipal Commission of Tourism Development (BTD), said: “Over the past few years, we have been busy improving our capabilities and infrastructure. Now, our leisure tourism market is almost reaching its capacity. Hence, we decided to target further expansion of Beijing’s tourism industry in the area of MICE.”

To meet this objective, the Bejing government has introduced a preferential policy to support MICE development in the capital. Overseeing the project will be BTD, which has been granted a RMB20 million (US$3.2 million) war chest for this year, according to Sun.

Initiatives being mapped out by BTD include the hosting of networking events for MICE professionals, producing a newsletter and an online platform that provides details on suppliers, venues, service providers and MICE resources in Beijing, as well as establishing the Beijing Alliance for MICE Development, a formal grouping of MICE companies which facilitates exchange of knowledge.

In addition, BTD is planning to organise hosted fam trips and site inspections for international media and buyers, and will also provide support for event organisers looking to bid for and host events in the capital, said Sun.

Incentives offered to event organisers include sponsorship for banquets and gala dinners, printing of brochures, and access to professional consultation services through BTD.

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

CHINA’S meetings industry is slowly acknowledging the importance of content management in business events, according to Martin Sirk, ICCA CEO.

“Five years ago, the focus for most meeting planners and PCOs was on logistics such as catering, audiovisual equipment, and accommodation, with little attention paid to softer aspects such as content, knowledge and education,” said Sirk.

“Today, companies see the need to design conferences or meetings that achieve the wider objectives specified by clients.”

However, despite the industry’s push to create meaningful meetings and conferences that bring both financial and educational value to clients, there is still a dire need for government stakeholders and the private sector to recognise this sector as a key tool for economic development.

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