BOLSTERED by recent upgrades in MICE hardware and heightened marketing efforts, second-tier Chinese cities such as Xiamen and Wuzhen are reporting a significant surge in MICE business.

Soukin Caojin, marketing director of Xiamen C&D Tourism and Hotels, which acts as Xiamen’s CVB, said: “Our MICE campaign is into its fourth year, and the city has seen consecutive 30 per cent year-on-year growth in MICE arrivals during this period. One-third of the traffic is from Fujian, with the rest from other parts of China and overseas.”

Xiamen hosted the AstraZeneca National Sales Conference for 5,000 delegates in February, and is expecting at least 10 medical conferences this year.

All hotels in Xiamen offer a RMB10,000 (US$1,590) rebate for events with 100-200 pax from at least five different countries, and RMB50,000 for events with 8,000 pax or more.

The city, with 2,740 five-star rooms, saw the opening of the 520-key Xiamen International Conference Hotel last year.

Another second-tier city, Wuzhen, launched its MICE department three years ago. Last year, the city drew about six to eight conference groups with 15-500 pax each week.

According to Yuanmin Zhu, deputy general manager, Wuzhen Tourism, MICE revenue jumped from RMB12 million in 2010 to RMB20 million last year. “Our goal is to boost the MICE proportion of overall receipts from 10 per cent to 35 per cent,” he said.

Wuzhen, which has about 800 five-star hotel rooms, will get a new conference centre for 1,500 pax this August.

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Reporting by Patricia Wee

MICEMonkey, a travel technology firm in Shanghai, has launched a new MICE-dedicated B2B website, MICE123.com, for the Chinese market.

Still in the beta version, the site is aimed at event organisers in China, listing over 1,000 pre-screened venues, destinations and service providers – including NTOs, PCOs, PEOs, DMCs, IT companies, car rental firms, airlines and hotels.

Currently available only in Mandarin, the site covers 18 cities in China, South Korea, Singapore and Thailand. An English version of the website will be introduced at a later stage.

In a press statement, Mimi Vong, CEO and co-founder of MICE123.com, said: “Our business model is targeted to address the mounting needs of users who are constantly in search of reliable content, trustworthy service providers and unbiased cost comparisons.”

She estimates there will be some 3,000 to 4,000 unique visitors to the website during the initial phase. A full version of MICE123.com is expected to be released by year-end.

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.

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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”.

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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