China's endless options

Dress in imperial robes for a trip to the Great Wall or the Summer Palace; dine at the Great Hall of the People in the company of Chinese government leaders; live it up on a luxury train once reserved for Chairman Mao, or endure the delightful agonies of an ancient form of foot massage. The possibilities are limitless in China for companies looking to provide a memorable incentive. Given China's well-developed infrastructure - new airports, modern hotels of international standard - coupled with its wide-ranging historic and scenic attractions, the country seems set to become one of the region's most popular incentive destinations over the next few years. Beijing's successful Olympics bid and China's acceptance into the World Trade Organization (WTO) undoubtedly reinforces its stature as a country of growing international importance. In these volatile times, China has the additional advantage over many of its rivals in the region and further afield as security is unlikely to be a problem. The successful handling of arrangements for the all-important meeting of heads of state during this year's APEC gathering in Shanghai has highlighted this ability. Thanks largely to the ever-expanding routes by Dragonair, Hong Kong remains the traditional hub for most incentive travellers to China. However, Beijing, Shanghai and a growing number of secondary cities now have direct international flights, while national and regional carriers within China make it increasingly easy to reach even the most remote parts of the country. Beijing-based destination management company (DMC) Kingsway Incentives offers programmes all over China but Beijing and Shanghai are the predominant destinations says director of sales Mr Gunther Homerlein. "After these come Xian, Guilin and the Yangtze River Cruise, Hangzhou and Qingdao but often these are add-on programmes," he says. "Inner Mongolia, Chengdu and Xinjiang are being touted as 'adventure destinations' but have yet to have an impact other than on the tour market. The infrastructure is not yet there for international conference or incentive (C&I) business." Event management and public relations company B&B International director Mr Dominic Bauquis has organised many events in unusual destinations. "One of the most unusual was a seminar in Urumqi in 1998 for Eagle Star (now part of Zurich Insurance). Over 100 key personnel from People's Bank of China flew to Urumqi from all over China. The seminar took place at the Holiday Inn with sightseeing to Turfan and other places," he says. "We even brought the backdrop from Xiamen as nobody had the ability to handle it locally and we also flew the simultaneous interpreters from Beijing for the week," he adds. "Special gifts were given to the participants every day and we had to make special briefcases and also a travelling kit for the trip to Turfan, with hat, sunglasses and other items, all brought from Beijing. "Theme dinners were also part of our programme, the first such experience for the team at Holiday Inn." Silk Road Travel specialises in some of China's least known destinations in the remote North-west of the country. At least one meal includes a whole roast sheep or goat, but tour operation manager Ms Janny Yau says there are infinite possibilities, including high tea at the Ruins of Jiaohe, Turpan or an outdoor barbecue at the Southern Pastures, Urumqi or a campfire party in the Gobi Desert, Dunhuang. Less common, although more dramatic, is a pre-dawn camel ride to watch the sun rise from the sand dunes, while eating breakfast prepared in a nearby kitchen tent. Located at the start or finish of the Silk Road, the ancient city of Xian has the resources for more sophisticated special events, including an imperial welcome by a team of traditional Tang singers and dancers as the group enters the ancient city walls. Also popular, says Ms Yau, is a cocktail reception on top of the city walls. If the budget is available, an incentive group can do almost anything in China, says Mr Homerlein. "A dinner in the Imperial Courtyard of Beijing's Forbidden City or in the Terra Cotta Warriors Tomb in Xian, at US$100,000 rental a day for the former and about half that for the latter. The People's Liberation Army (PLA) Ballet and 60-piece orchestra can be hired out at about US$75,000. What would the Royal Ballet charge, or the Bolshoi? The PLA Ballet is just as good." China still has a mystique that makes it a unique incentive destination, adds Mr Homerlein, but he points out it is by no means exclusive to the foreign market. In China now, it is 'rub' shoulders with the local population all the way, unless you want to book a part of the Great Wall exclusively for instance," he says. "Unfortunately, this doesn't give the 'exclusivity'many of the organisers crave - although their participants generally don't." For the time being there is little, if any, centralised promotion of China as a C&I destination. Individual hotels or hotel groups promote what they can offer, and events organisers put forward creative ideas and ways to make them work in new destinations. "As a new exciting destination, China competes with Myanmar, Cambodia and Vietnam, all of which are more affordable than 'the China Experience'," Mr Homerlein points out. "The big question is how does the market here go from relying on innovators to being a mature market? Imagewise the WTO and the Olympics will help but they may also push up prices." Until recently, the US was being wooed as the world's biggest incentive market, says Mr Homerlein. "Despite what has happened I don't think this will change a great deal, except that programmes will be put back a year," he adds. "China seems to be becoming the flavour of the month for the Australian market, but as everything here is quoted in US dollars, it is very expensive for them. As a result, many are going through tour operators as opposed to destination managemnt companies, which means an inevitable drop in the quality of the product which could, in the longer term, affect the market here." The domestic market in China is vibrant as it is still relatively difficult for Chinese to travel outside the country, so they go to places such as Hainan, Qingdao and Kunming, where hotels rely heavily on such business, according to Mr Homerlein. "Many companies, like Agilent Technologies, budget two trips a year per department and while these are more company outings than incentives it is the beginning of the process," he says. The Shangri-La group of hotels broke new ground in Beijing with pioneering ventures into the C&I market with 16 hotels in 12 cities around China. Incentive business is definitely growing in importance, says Shangri-La Hotels and Resorts regional communications manager China Ms Judy Wang. "C&I is not yet a major part of business at the recently-opened Pudong Shangri-La, however we consider it a potentially profitable market," she says. "Shanghai is well known for its colonial culture and architecture therefore we focus on promoting a river cruise along the legendary Bund, the old French Concession area with new skyscrapers and shopping malls, the old ShiKuMen' with international brand pubs and restaurants to create a strong message of 'East Meets West, Future Meets History' in Shanghai." As a cosmopolitan financial and business city, it is difficult for Shanghai to "stand alone" as an incentive destination, explains Ms Wang, which is why the nearby scenic cities of Hangzhou and Suzhou, with their many opportunities for sightseeing and relaxation, are promoted as part of a Shanghai incentive package. "Since Shanghai does not really have a central government body to handle incentives, the hotels have to shoulder the task of promoting the business and the city as a great destination. That's also the reason why Shanghai's five-star hotels are very active in domestic or international travel shows," adds Ms Wang. A Dragonair spokeswoman says the airline is seeing more Shanghai-bound incentives business, and she believes the city seems to draw more conference, exhibition and incentive traffic than the capital. "We believe incentive business offers great opportunities to build and establish long-term relationships with specific groups and events," she says. "Dragonair operates to a wide variety of places suitable for incentives, from historic Beijing to the tropical resort island of Hainan." The more remote the destination, the more creative and proactive hotels must be in provinces like Guangxi, where the Sheraton Guilin Hotel has tailored its facilities for C&I business, according to general manager Mr Lance Oerednik. In addition to a Guilin Food Street and Night Market dinner in the ballroom, the hotel has packaged a number of attractive outside events. Every visitor to Guilin cruises through the magnificent scenery alongside the meandering Li river. The Sheraton Guilin Hotel organises special lunch buffets on board a tour boat. And by night the hotel creates its own dinner-time magic in the cathedral-like Reed Flute Cave, where it serves fine food and wines accompanied by classical music. However, luxury is not the only option. Mr Leunen says his company has had "extremely good feedback from clients" who participated in a Guilin bicycle tour. Overnight train rides have also proved great experiences. Anyone who considers the Guangdong Province an unlikely location for incentive business should take a good look at what is available. The city has a number of well established hotels of international standard, with excellent catering track records. Despite its ultra-modern image, Guangzhou has a number of fascinating venues including historic buildings around the city such as the Chen Family Temple, the museum dedicated to the tombs of the Nanyue kings and 19th century houses on Shamien Island. The White Swan hotel in Guangzhou is aggressively targeting C&I business, offering the use of its deluxe cruise boat and a recently acquired island hideaway for exclusive events. The newly opened Crowne Plaza Shenzhen is designed for the C&I market. Once the hotel is fully operational and running smoothly director of sales and marketing Mr Henry Kam promises some unique theme parties in the ballroom and also in nearby theme parks like Splendid China and Windows of the World. As an incentive destination, China offers so much potential. Once marketing is stepped up, there is no reason why the country should not be in line for a strong growth in incentive groups.