China takes the lead

The Annual Industry Survey collects views and opinions from the CEI industry in Asia Pacific, along with expected market trends. The 2006 survey, conducted by independent market-research organisation Synovate, was conducted online among 434 CEI respondents in November 2005. Just under half of the respondents (47 per cent) hold top management positions (CEO, chairman, managing director, general manager, director, CFO, owner/partner) and 43 per cent are corporate buyers. China success Paving the way for the Beijing Olympic Games in 2008, China is continuing to invest heavily in infrastructure and tourism support, including improved facilities for holding events and conferences. Their investment seems to be paying dividends, with China becoming the region's most popular CEI location in 2005 according to the 434 survey respondents. China took the top spot from Thailand. More than one third (37 per cent) of businesses that held CEI events in the region last year held them in China, with conferences (24 per cent) and exhibitions (18 per cent) the most popular events. China's CEI growth looks set to continue, with 37 per cent of respondents indicating they expect to host CEI events in China this year. Internal growth CEI respondents are choosing China for a variety of reasons. Amanufacturing powerhouse with the world's largest consumer base, China was voted by respondents as having the highest business-growth potential in the region, as well as reasonable costs, that sets it apart from its competitors. More than half (59 per cent) of respondents view China as among the top-three markets for business-growth potential in the next three years, along with Australia (25 per cent) and India (24 per cent). Cities right across China are attracting CEI business for a variety of reasons. Tier-one cities such as Shanghai (44 per cent) and Beijing (41 per cent) are preferred for their safety, infrastructure and the international quality of their servicing, in addition to their cultural and historical heritage and tourist attractions. A further 20 per cent of respondents are considering new locations, highlighting the many options the country can offer. Many provincial cities such as Kunming (11 per cent) are famous for their unique scenery and character, while Chengdu (nine per cent), Dalian (seven per cent) and Xiamen (six per cent) are high-growth second-tier business centres. With CEI events influenced primarily by pricing (78 per cent), economic growth (66 per cent) and infrastructure support (52 per cent), it is clear why China has become a preferred CEI destination. Regional leaders Singapore and Hong Kong continue to stand consistently high on the list of preferred CEI destinations and receive top ratings from respondents for being major regional business hubs with superior facilities, airlines, attractions and tourism bureaus. One third of respondents held CEI events in Singapore (33 per cent) and Hong Kong (32 per cent) last year, and a similar trend is expected in 2006. Singapore came first (68 per cent) and Hong Kong second (50 per cent) in offering the best overall CEI experience and facilities. Hong Kong Convention and Exhibition Centre (33 per cent), Suntec Singapore (17 per cent) and Singapore Expo (7 per cent) ranked as the best convention and exhibition centres. Respondents also praised Hong Kong and Singapore for their CEI support, with their respective tourism boards performing strongly in the category of best convention bureau/NTO assisting CEI events in Asia Pacific. Airline services are a further testament to the popularity of the cities as CEI centres, with Singapore Airlines (42 per cent) and Cathay Pacific (25 per cent) rated as the best providers for corporate group travel in the region. With 28 per cent and 24 per cent of all respondents coming from Hong Kong and Singapore respectively, it is not surprising that many international CEI suppliers and buyers operate in these markets. Thailand value Although beaten to top place by China this year, Thailand is still an important CEI destination. Some 28 per cent of respondents held CEI events in Thailand last year and 25 per cent plan to hold events there in the next 12 months. Thailand (52 per cent) also comes second in terms of the best overall CEI experience and facilities, on par with Hong Kong (50 per cent), while Phuket (61 per cent) provided the region's best CEI resort experience. Future outlook With parts of Asia likely to continue their recovery and China expected to maintain its healthy growth rate, the CEI market outlook for 2006 appears positive. Despite perceived threats to business from security concerns (87 per cent) and political instability (73 per cent), more than half (58 per cent) of all respondents expect an average nine per cent rise in their CEI budget in 2006. Although this growth may be partially offset by a possible rise in supplier prices, expected by 82 per cent of buyer respondents, Asia Pacific's CEI future appears bright.