China gears up, Hong Kong and Singapore follow

Being the second CEI location (31 percent) after Thailand, it is estimated that in 2005, China is to outperform in all conferences, exhibitions and incentives arenas, and to become the most preferred CEI destination. Of 37 percent of 293 respondents who planned to have events organised in 2005 would consider China, more than half (59 percent)see China as a top growth area for their business in Asia Pacific. The outlook for China's exhibition sector continues to be optimistic. Planned demand for China as an exhibition destination (23 percent) is significantly higher than other popular locations such as Thailand (14 percent), Hong Kong (14 percent) and Singapore (13 percent), according to 293 respondents who planned to have events organised in 2005. Demand for conferences (22 percent) and incentives (13 percent) in China were relatively strong too. Regional hubs battle Hong Kong and Singapore are major hubs in the region famous for their modern airports, efficient infrastructure and some of the best convention and exhibition centres of the region. Over the past five years, Hong Kong (47 percent) and Singapore (42 percent) used to be the most popular CEI destinations, according to a survey conducted among CEI Asia Pacific registered readers 2003/4. Despite being taken over by Thailand and China in 2004, Singapore and Hong Kong have kept other destinations in the region at a distance (being chosen as a CEI destination by 30 percent and 29 percent respondents who organised events last year). Rise of emerging destinations Malaysia and Australia provide CEI alternatives in South Asia and Pacific after Thailand and Singapore. In total eight percent of corporate buyers surveyed agree that the best hotels and resorts can be found in Malaysia and Australia. On the other hand, Vietnam has been voted by a quarter (26 percent) of the respondents as being the top emerging CEI destination in the next two years. Probably due to terrorist attacks, Indonesia lagged behind other Southeast Asian locations such as Thailand, Singapore and Malaysia in CEI patronage (12 percent of those who organised any events in 2004 and 13 percent of those who planned for 2005). Nonetheless, Indonesia is still preferred to Philippines (8 percent in 2004 and 9 percent for 2005), and one fifth (19 percent) of respondents believe Indonesia will come back on track in two years' time as a key emerging destination after Vietnam. More than half (53 percent) of respondents expect positive growth in their CEI budget this year, and another 41 percent are cautious and expect stagnancy. Despite two-thirds (65 percent) of corporate buyers expecting increases in supplier prices this year, 57 percent plan to outsource some events, and one third plan to organise all of their own events. Security is the most important external threat that respondents of the CEI survey indicate as having an impact on their business this year. It is also the most important factor for choosing an incentive destination, according to one third (32 percent) of corporate buyers, professional exhibition and conference organizers and destination management companies surveyed. Pricing is another key factor for organising conferences (38 percent) and choosing incentive destinations (21 percent).