Powering for growth

Our survey this year provides us with substantial data on the exhibition segment of the CEI industry. Over half of our corporate buyer respondents, 53 per cent, participate in exhibitions or trade shows of some kind. One of the key issues facing the exhibition sector is measurement, proving that the trade-fair medium is effective in delivering buyers and business to exhibiting companies. As Geoff Donaghy, managing director of the Cairns Convention Centre, notes: "There is an ever-increasing drive for accountability and return on investment analysis as new centres and major expansions are funded through varying private and public ownership and management models. "Developing the sophisticated information systems to support global benchmarking and analysis is clearly one of our greatest future challenges, both for our individual venues and for the convention and exhibition industry as a whole," he says. The emergence of several huge exhibition centres in mainland China has been one of the key developments of recent years. However, China is not the only area of growth, as the Perth Convention and Exhibition Centre opened its doors last year and the Kuala Lumpur Convention Centre comes into operation this year. Singapore Expo plans to substantially increase its capacity and AsiaWorld Expo in Hong Kong will be operational toward the end of 2005. Warren Buckley, CEO of Suntec Singapore, says: "Like everyone else in the region, we are concerned about the impact that the extensive development of venues in China will have on our business in the long term. "China is a vast consumer market and the majority of the centres serve the domestic market through hosting huge exhibitions. "Therefore, where the exhibition market is concerned, most destinations in the region have already experienced the negative impact of losing trade and consumer shows to China." Thailand is predicted to lose its lead as Asia Pacific's most popular event destination in the face of growing competition from its neighbours, according to survey research. Thai role Thailand is expected to slip back to joint second place with Hong Kong among Asia Pacific destinations holding the most events in 2005 in terms of volume, seeing it lose 2 percent market share on its 2004 position of 33 percent of any event organised in the region. China moves into first place with 37 percent of regional events, while 2005 sees Hong Kong move from fourth to third place. The local market remains resilient in the face of these predictions; its position bolstered by the fact CEI's Annual Industry Survey 2005 puts Thailand as having the region's sixth largest revenue source for hotels, convention centres and exhibition centres. "We firmly believe Thailand will be the hub of exhibitions and conventions in Southeast Asia," said Paul Kanjanapas, managing director IMPACT Arena, Exhibition and Convention Centre. "With the new formation of Thailand Exhibition and Convention Bureau and its support from the Government, it is just a matter of time before Thailand overtakes Singapore and Hong Kong." IMPACT has developed its services and resources as part of the moves to boost Thailand's competitiveness. "IMPACT is currently building a new exhibition and convention building which will be ready to use in Sept/Oct 2005. The new 'Challenger' comprises of 60,000sqm of indoor exhibition space with no columns at all in the exhibition area," Kanjanapas adds. "It has a 5,000sqm 'Universal Ballroom' that can sit up to 4,000 people theatre-style. Also there will be 13 meeting rooms and numbers food and beverage outlets, along with services like banks, convenience stores and flower shops all inside the building." The quality of exhibition space in Thailand stated by CEI's Annual Industry Survey 2005, cited the kingdom as having two of Asia's four especially mentioned centres, QSNCC and IMPACT, the others were Hong Kong's HKCEC and Singapore's Suntec City. While half of respondents in Asia Pacific expected a price increase in exhibition space rental, such a change could create a competitive advantage for Thailand, where overall costs are comparatively low while service standards are kept high. "The rate for next year at IMPACT will increase at around 10 to 15 per cent depending on the requirement of the event. The reason for the increase is the upgrade of the facilities and the services that we provide. We are continuing to improve ourselves so that we can service our client better. "Pricing alone cannot win all the time. Having cheap prices but with bad services cannot convince anyone to come back again," warned Kanjanapas. "Our overseas clients prefer Thailand as it has so much more to offer than other destinations." Confident outlook A similarly upbeat perspective on the country came from Charnchai Svangsopakul president of Thailand's Trade Exhibition Association. "Thailand has experienced strong growth in the CEI industry in the past few years, and will continue to do so for the years ahead. "As a travel destination, Thailand has abudant natural resources and tourist attractions, and a large number of hotels which are high quality and good value for money. "The Government has also developed the transportation system and infrastructure which facilitates tourism. With further developments such as the new airport, a new mass rail transportation sytem which will encompass the entire Bangkok metropolitan area. As the country's economy has been growing at a level of 6 to 7 per cent per year, with a population of over 62 million people, Thailand is ready to become a business centre for conventions and exhibitions. "Moreover, with the establishment of the Thailand Convention and Exhibition Bureau (TCEB) as the Government's arm in developing the CEI industries, supported by various private organisations such as the Trade Exhibition Association (Thai) or TEA and the Thailand Incentive and Convention Association (TICA), our industries are looking forward to accelerated growth in the near future." One relatively undeveloped exhibition market is India. New Delhi-based Exhibitions India Private Limited group manager Debasish P. Choudhury. His company is involved in six to seven exhibitions and conferences per year. "All of these are technology events attracting participation of 150 to 200 foreign delegates. We find there is a limited exhibition space in five-star hotels." There has been positive news in terms of new convention centre in Chennai and a new one planned for Kerala. But apart from expansion, one of the major challenges is hotel capacity and transportation, even in cities such as New Delhi and Mumbai. While metropolitan cities remain in contention for CEI business due to their economic viability, other states such as Goa, Kerala and Rajasthan are gaining prominence for their serene surroundings and architecture. One project in the pipeline is the Kerala Industrial Infrastructure Development Corporation (KINFRA) exhibition and convention centre in the city of Kochi. KINFRA has 40 acres of land close to Kochi city centre, earmarked for an international exhibition and trade centre. The proposed site is located about 25 kilometres from the Cochin International Airport and about 26 kilometres from the Cochin sea port. The plans include exhibition halls and convention centre with three separate convention/conference rooms. The project is expected to get underway in 2005. Expertise The threat from cheaper exhibition centres in other parts of Asia has to be offset with the high levels of expertise and infrastructure offered by established venues Suntec's Buckley believes. "Price is always a key consideration for the organisers. Price aside, the survey findings confirm our own findings that delivering a one-stop service and ensuring a seamless venue experience is key to both winning new business and retaining repeat customers," he says. In a more crisis-conscious world, the HKCEC's Wallace points out that venues can do more to safeguard and protect their business from security, health-risk and other threats. "I would like to see our industry developing intelligence resources that will help us to be more aware of issues that can adversely impact the industry. I would also like to see a global effort, not to over-regulate but in establishing reasonable security standards, health standards and basic operating standards that will enhance the industry by assuring more comfort, safety and value while attending CEI events. "For example, solid accreditation of guests, 'certification' of contractors, smoke-free exhibition and meeting spaces, minimum standards of security vigilance, and basic safety standards could be established as guidelines for organisers and venue operators. "As controversial as this may seem, I believe we are virtually negligent if we don't begin addressing it more as a global industry before it becomes more regulated (through legislation) in a more inconsistent manner than it is now," Wallace believes. Overall, the exhibition industry is seeing greater variety and choice as new centres open or are planned to open from Perth to Phuket. The key challenge seems to be whether the management skills and organisational flair that characterise the industry in Singapore, Hong Kong and Australia will flourish in developing markets.