Confident Korea

South Korea's conference and meetings (C&M) industry is confident it is poised on the threshold of a major advance in its aim to become a major regional C&M destination. Trading on its reputation as a centre of modern technological excellence and possessing a rich cultural heritage, the South Korean C&M industry is concentrating on raising the profile of the country across the Asia Pacific. Successful hosting of two major sporting events, the 1988 Seoul Olympics and the 2002 soccer World Cup jointly with Japan have gone a long way to increasing the country's profile internationally. Yet, until recently at least, South Korea has appeared a much less familiar destination for corporate C&M business than other east Asian nations. However, this apparent unfamiliarity is now being turned into an advantage, offering a destination that is fresh and intriguing for foreign conference delegates. Mr Park Young-Gyu, director of the Korean Convention Bureau (KCB), the specialist conference division of the Korean National Tourism Organisation (KNTO), see this as presenting both a challenge and an opportunity. "Our first step must be to increase and heighten general recognition of the destination itself. The KNTO has been active in various advertising and marketing promotions to build the country's profile across the region," Mr Park says. "The KNTO is also planning a series of major roadshows next year in various parts of the world which will work in tandem with leading South Korean companies whose brands are well known worldwide. This will cement the destination in people's minds with world-class business practices." Despite escaping relatively unscathed from the SARS crisis, the impact of the disease was felt during the April-June period. However, business is coming back. As for perceptions that tension in the Korean peninsula make South Korea an unsafe destination, Mr Park firmly refutes them. "Despite outside perceptions, unfortunately exaggerated by some sensationalist international media coverage, South Korea is perfectly safe. The current nuclear row involving North Korea is something we believe will be resolved peacefully. There is no need to believe in rumours when facts suggest otherwise," he says. South Korea is gearing up for two major conferences involving the conference and travel industries. The KCB sees them not only as proof of South Korea's attractions but will also provide opportunities to promote the country directly to conference and corporate travel specialists, familiarising them with South Korea and its meetings facilities. The International Congress and Convention Association conference, which meets in late October, will find 800 convention veterans and experts gather in the southern seaport and resort city of Busan. Next year, the tropical island resort of Jeju will welcome the Pacific Asian Travel Association annual conference. Also being held next year will be the Asian Development Bank's annual meeting in May. Bringing together some of the most important political and financial figures in the region. Clearly the country is attracting some significant global events and many provincial governments are recognising the potential of the corporate conference market and are developing convention and exhibition centres to fully exploit this sector and boost their local industries and economy. There are five new centres planned to open between now and 2008, for the regional cities of Goyang, Changwon, Daejon, Suwon and Gwangju. With frenetic building and planning of new convention centres, Mr Park believes the country will reach saturation point around 2010. The provincial conference and exhibition centres will likely have a 70:30 split between domestic and international business, Mr Park estimates. South Korea is also continuing to invest in major infrastructure projects. A new high-speed TGV rail network will also be completed over the next year, running the 412km between Seoul and Busan. Greater attention is being paid to the C&M market by South Korea's impressive range of deluxe and super deluxe hotels. At the 511-room Shilla Seoul, in the Jung-gu area of the city, director of sales and marketing, Mr Winston Kim explains the Shilla properties, the second in is Jeju, suffer the disadvantage of being independent and outside the global sales networks of rivals, who are often part of large chains. The Shilla is, however, part of the Samsung Group, one of the best known Korean brands internationally. "We are looking at how we can improve our sales in the C&M sector. We are part of the Leading Hotels of the World alliance now and we are looking at using the internet for sales and marketing. We have also established a sales presence in Hong Kong," Mr Kim says. Apart from its state-of-the-art meetings and business facilities, the Shilla also has several Korean-style courtyards that can be used for cocktail receptions or product launches. Korean carmaker Daewoo recently used the Shilla for the launch of its Chairman brand. Another Korean-owned property is the Hotel Lotte Seoul, part of the Lotte business empire that encompasses shopping malls and retail outlets as well as a chain of hotels in South Korea. Director of sales and marketing Mr James Kim sees that much of the business lost during the earlier part of the year due to fears of SARS and the Iraq war is coming back. "The Japanese market is always the most sensitive to these kind of developments, but they are coming back," he says. "We have 15 international conventions booked for next year. In the month of May, for example, we have an international convention every single week. "As we expect 2004, to bring in bumper conference and incentive business we are taking the opportunity to upgrade our software. We are developing new banqueting menus to cater to modern food trends." Mr James Kim also believes the stronger yen will bring more Japanese corporate groups and Seoul is a favourite destination for those seeking international brands. The Lotte mall and Duty Free Shop are of interest to these groups. He sees strong signs business coming especially from the pharmaceutical sector Lotte's second hotel is situated adjacent to the Lotteworld theme park. this often proves popular for incentive groups and spouse accompanied events. While few properties have yet seen sizeable Chinese corporate groups, Mr James Kim notes the growing trend to investment seminars sponsored by Chinese local government authorities and believes this is a sign of bigger things to come. Another key market for the Lotte, as with many other Seoul properties is the booking of rooms for dealer groups from Korean-based multinationals, such as Hyundai, Daewoo, LG and others. Dealer visits The Lotte Hotel Seoul is preparing to welcome a group of LG dealers from as far afield as South Africa later this year. The country's premier venue is COEX in the world Trade Centre. The COEX Auditorium seats 1,070 theatre-style and has ten linked meeting rooms. The Grand Conference room seats 490 theatre-style. COEX's showpiece ASEM hall is an amphitheatre-style conference room offering simultaneous translation in 16 languages. It has a dozen smaller adjacent meeting rooms and is aimed at VIP and high-level meetings. COEX has a 7,281sqm column-free Convention Hall, which can cater for up to 7,000 people and the Grand Ballroom on the first floor with a maximum capacity of 1,800 people. COEX also has 30-50 meeting rooms in the Conference Centre. The COEX complex has many bars and restaurants and the Chosun Hotel provides deluxe catering for the venue. The COEX Mall offers some of the best shopping in Seoul and two deluxe properties, the COEX Intercontinental and Grand Intercontinental, are adjacent to the centre. The Grand Inter-Continental Seoul has 531 guest rooms with 265 suites, while the COEX Inter-Continental has 653 rooms. The Grand has a Grand Celadon Ballroom capable of holding 1,800 theatre-style and the COEX Inter-Continental can hold 1,300 theatre-style. In addition, both properties offer dozens of smaller meeting room options and have a combined total of more than 20 food and beverage outlets. One stylishly designed specialist venue is the Grand Hilton Seoul Convention Centre built in late 2001 and capable of holding up to 2,214 people in its largest hall. The centre's second hall, the Emerald Hall, can hold 1,080 theatre-style. Aside from the Grand Hilton's 396 guestrooms there are also 105 serviced apartments. Sister property Seoul Hilton has one of the largest hotel-linked convention centres in South Korea, holding up to 3,200 participants theatre-style. In the busy and trendy Gangnam district of Seoul, the Renaissance Seoul has recently renovated its third floor ballroom and director of marketing Mr Nicholas Tse is eager to promote the 494-room hotel's facilities. "Our location is perfect as we are in one of the most important commercial and entertainment districts in the city. Mr Tse concedes Korea does have some negative factors. It is generally expensive, certainly compared with south-east Asian destinations, Seoul traffic makes choosing the right venue and accommodation crucial and there is still a language barrier once delegates step outside their five-star hotels. Mr Tse says the hotel's maxim "stay interesting" is an essential philosophy in a city with no lack of super-deluxe rivals. He also notes many of the four-star properties are beginning to jostle their five-star cousins. "The key is what I call 'savvy service', looking at all the areas where we can offer value-added service, such as free airport transfers," he says. Mr Tse says the KNTO needs to be proactive to back up the private sector. He also feels despite world-class facilities South Korea's destination management companies and professional conference organisers are at a "primitive" level. "Hotels have to provide more specialist back up for corporate events than would be expected in most other major Asian cities," he adds. Well away from the bustle of the capital is the Sheraton Walker Hill Hotel and Towers in eastern Seoul set amid 140 acres of woodlands. The property's location provides not only a panoramic view of the Han-gang River but also allows outdoor parties and receptions to be held in the extensive grounds. The Sheraton Walker Hill has a three-floor convention centre, with its largest space, the Mungunghwa Grand Ballroom, providing space for 1,280 theatre-style. Deluxe addition The newest addition to South Korea's stable of super-deluxe properties is the Hyatt Regency Incheon, whose grand opening is at the end of October. General manager Mr David Pacey emphasises the potential afforded by its location. Five minutes by shuttle bus from Incheon International Airport and in the heart of a rapidly developing International Business Centre, a complex earmarked by the South Korean government to play a major commercial and logistics role. One unique feature is the innovative dining concept "8". Instead of several unconnected food and beverage outlets occupying different spaces and practically competing with each other, the Hyatt Regency Incheon has brought them all together, allowing diners to mix and match their cuisines, ranging from Italian pasta, traditional Korean cuisine to Japanese sushi or Chinese noodles. "We are a 24-hour hotel. Our aim is to have a service that reflects the pace of busy business travellers but is much more than just an 'airport hotel'. We offer quiet, (our rooms are heavily soundproofed), and comfort but we also have wireless internet in our dining areas and broadband in the rooms," Mr Pacey says. "We have 17 different meeting rooms and we particularly want to target regional seminars and conferences. Our ideal group size is 50-100 delegates." Mr Pacey sees the time constraints of busy executives working very much in the Hyatt Regency's favour. "We are about one hour from downtown Seoul, one and a half hour's flight from Shanghai and the same from Tokyo. So we can be the meeting point for executives from those three points without the hassle of long transfers. People can even be in and out in a day." Meeting packages compare favourably with downtown Seoul. Full-day packages are around US$70 per person, including room and equipment rental, coffee breaks and lunch. this is about 20% less than comparable packages in Seoul. South Korea's C&M industry seems certain of itself and the products it has to offer. The next few years will see whether this confidence and the substantial financial investment behind it will be paid back in hard business terms.