Industry analysis shows mixed view

THERE is little doubt industry leaders in the conference, exhibition and incentive (CEI) sectors are bracing themselves for the fall out on regional and global movements of corporate event groups in the aftermath of the September 11 terrorist attacks in the US. However, opinions differ on the extent of how the CEI business environment will alter. Industry figures interviewed by CEI Asia Pacific believe there will be a slowdown in group movements from the US; this was illustrated in the aftermath of the attacks with the ban on international air travel to and from the US. Others were expecting a retraction in business due to economic slowdown in Asia Pacific but this will be exacerbated by the attacks. Hong Kong Convention and Exhibition Centre managing director Mr Cliff Wallace believed the region remained safe but there would be an impact on the CEI industry. "Asia Pacific may be the safest place to travel at the moment, but conditions are volatile when circumstances are impacted by the demented minds of people who were responsible for these events," he said. "There is no person or region immune and the Asia Pacific will be adversely impacted also." Accor vice-president sales & marketing - Asia Mr Rob Hornman also believed there would be a "shift" in business but regional CEI players may benefit from Asia Pacific corporates using intra- regional facilities. "Asia's CEI sector may experience a shift. Asian-based businesses and industries will look to stay closer to home and hold events in the region," he said. "This will create a need for local trade shows, exhibitions and incentives. For Accor, it confirms our position, as the bulk of our CEI business is intra-regional." Marriott vice-president worldwide sales, Asia Ms Bernadette Dennis said demand for regional business events would remain static in the short-term. "Intra-Asia events should not be affected as much after the initial fall-out. However, companies with high US ownership will have reductions due to the economic challenges," she said. EventClicks chief executive officer Mr Tom Murphy agreed fewer regional events for US-owned companies would lead to a longer-term slowdown in the industry. "The economic downturn, which is now exacerbated by the US attacks, was already reducing meeting, incentive, convention and exhibition business, especially conferences," he said. Accor general manager sales & marketing - Australia, New Zealand, South Pacific & Japan Mr Ray Stone is another who believes business could strengthen as companies stay closer to home. "Those companies that were going to fly long-haul for events will now look to regional centres," Mr Stone said. Suntec Singapore chief executive officer Mr Warren Buckley said there had been no cancellations of major events. "The majority of the events held at our convention centre over the next three months are targeted at Asia Pacific. As of now (press time), we have not had any major event cancelled," he said. "We are monitoring the market and will know better the long-term effects later in the year." This is a recurring theme. While most businesses were already bracing themselves for a slight downturn in trade, it seems the US attacks will encourage revision of strategies for the remainder of 2001 and to any 2002 business plans awaiting approval.