Showcasing strength

Thailand is an exhibition destination that is dripping with potential thanks to its strong economic growth. A mere infant a decade ago, the country has grown up considerably in recent years, although it still has a long way to go. With its impressive infrastructure, spearheaded by world-class venues such as Impact Arena and the Bangkok International Trade and Exhibition Centre (BITEC) as well as an economy which is outperforming that of most other countries in the region, Thailand should — and probably will — cause Singapore and Hong Kong more headaches in the coming years. But whether it becomes a serious rival of those two countries by increasing the number of its high-quality international shows is a different matter altogether. Vithaya Sintharapantorn, director of exhibitions at the government-funded Thailand Convention and Exhibition Bureau (TCEB), has been tasked with formulating strategies to lure more international events to Thailand and support private-sector initiatives. When asked about the TCEB's impact on the country's exhibition industry since its launch last year, Vithaya says he is happy to let the results do the talking. Vithaya, who joined TCEB after spending nine years in marketing and new business development at British American Tobacco in Singapore and Thailand, believes Thailand's exhibition industry should be learning from regional powerhouses Singapore and Hong Kong so that one day they will have to look to Thailand for ideas. "What we have to do is look and see what they've done to compete," he says. "I wouldn't say we have to follow them exactly, but we do have to try and learn from them." With its strong manufacturing sector, Vithaya believes Thailand already has an advantage over Singapore and Hong Kong. He says Singapore and Hong Kong are seen as trading hubs. They don't have a solid manufacturing sector like Thailand. "In Thailand, there is a lot of local participation at international exhibitions, unlike Hong Kong and Singapore. At furniture shows in Thailand there is a lot of local participation, because we have a strong furniture industry. That's not the case in Singapore — it's not a furniture producer. Singapore will, however, attract more international exhibitors." Big improvements Vithaya insists he knows what needs to be done to turn the tables on Singapore and Hong Kong so that the number of international exhibitors attending shows in Thailand befits its manufacturing credentials. Having come from outside the industry, he says he has introduced a new approach to the industry in Thailand in terms of formulating strategies, setting objectives and thinking analytically. He says his thought process centres on the total package — "what kind of things we're offering, what kind of incentives, how do we make the product more attractive for both local and international organisations?" In short, Vithaya sees Thailand as an exhibition hub for the region."I believe on the hardware side, our infrastructure and service is world-class. A lot of local organisers are very experienced in terms of organising international fairs. Thailand is one of the most attractive destinations to be marketed. There are a lot of strong industries here such as auto parts, jewellery, textiles and construction materials. "For international fairs, we believe we provide a lot of local participation as far as local industries are concerned." Maintaining status As a tourist destination, Vithaya says Thailand is far superior to Hong Kong and Singapore. But he says the country has to back up its tourism might by enhancing its business hub status, something TCEB is trying to do. To transform Thailand into a regional exhibition hub, Vithaya would like to see the country's customs procedures overhauled to become more flexible in terms of importing goods. Such a step would complement TCEB's work, which has been built around it forming a fruitful relationship with the private sector. "We need to work very closely with the private sector. Before we came along, the private sector was struggling without government support. Now we formulate strategies and boost the exhibition industry together. We've done a lot of good things for the industry already. I believe organisers now know that at least the government is trying to support the exhibition industry as a whole." Vithaya points out exhibitions currently account for between 25 and 30 per cent of the country's overall conferences, exhibitions, incentives and meetings business, with growth of between 12 to 15 per cent a year. The exhibitions industry, which annually stages more than 50 international events, has grown steadily over the past five years — and TCEB believes future growth will be even more robust. "I'm optimistic the growth will continue. I believe we now have the hardware and the software in place. We've got strong industries — a strong manufacturing sector — and are a gateway to Indochina," he says. "We are cooperating well with the private sector and a lot of international organisers see the potential of Thailand. That's why I have a lot of confidence in the industry's future." Vithaya says that since the launch of TCEB, the government now realises the exhibition industry has more revenue-generating potential than incentives and the other segments. "We have totally shifted our attention. We know that we have to focus on the exhibition industry from now on because of its potential economic impact for the country — both direct and indirect. Before TCEB, most attention was paid to the convention and incentives sectors — the private sector was looking after the exhibition industry itself. "The government had limited involvement in the exhibition industry before TCEB was formed, and also gave it limited support — that's changed now." Government support Dr Prasarn Bhiraj Buri, BITEC's president and CEO, applauds government efforts to assist the industry, but would like to see a more integrated approach by the government and private sector. "Think Thailand first and we'll win," he says. Prasarn says the exhibition industry is currently experiencing positive growth. Exhibitions now play a more important role for marketing. The government also pays greater attention to the industry and provides more concrete support. He says that Thailand is one of the "charming exhibition destinations" due to its resources, buying power, location and cultural fertility. Major industry players agree there are many areas for improvement, with a wish list that includes more aggressive marketing and promoting of Thailand as a regional exhibition hub, human resource training and a desire to iron out the issue of government-subsidised exhibitions that are hindering the development of the industry. M Gandhi, executive director of CMP Media (Thailand), says government-subsidised events staged to support local businesses are impeding the growth of the industry. He says that while the events are reasonably good, their pricing stops other more commercially viable events from being launched. Vithaya recognises the need for more marketing and closer government and private-sector collaboration, but urges the trade not to lose sight of long-term objectives. "That will basically drive what we're doing. We are promoting fair competition among all industry players to make sure the industry grows," he says. Training efforts Gandhi says the ability to retain trained and knowledgeable people within the industry also must be addressed. He says such a vacuum could be attributed to the industry being focused and high-pressured. To ensure that there is a continuous flow of talent in the sector, he calls on the industry to link hands with the "tourism talent pool" — hotels, tour operators, conventions and seminar organisers. Gandhi believes the exhibition industry in Thailand is going through a consolidation period. Several events launched after the 1997 economic crisis are turning into important regional events, while some will remain national. Growing exhibitors "The growth in the industry is coming from both new events and the increase in exhibitors and visitors in the existing exhibitions. Several exhibitions that are staged in association with international conventions are also growing," he says. Gandhi points out CMP Media's trade exhibition business is growing at about 15 per cent a year, while overall industry growth is around 10 to 12 per cent annually. He says that the country's main selling points as an exhibition destination include the service-oriented nature of the Thai people. "This is a great selling point and should be highlighted." The sector also benefits from the excellent presentation skills of local designers and contractors, while the availability of purpose-built exhibition space has increased ten-fold in the past eight years — from 20,000 sqm to 200,000 sqm. For the exhibition industry to continue to grow, Gandhi says it's crucial the world market perceives Thailand as a regional centre. "Trade shows in Thailand must be able to attract more regional buyers, mainly from other Southeast Asian countries." Raising quality Charnchai Svangsopakul, president of Thailand's Trade and Exhibition Association, says local organisers are doing their part to lift the quality of exhibitions — now the government must develop a positive trading atmosphere in Thailand to further enhance the industry. He says the fact that Thai Deputy Prime Minister Somkid Jatusripitak, who is also finance minister, has repeatedly said he wants the country to become a business centre would indicate this is already happening. If that's the case, he's certain they'll be a lot more development, which means "quality, quantity… everything you need, you will get". However, Charnchai warns the government's efforts to promote Thailand as a business centre will be wasted if the country fails to address what he describes as an alarming reliability problem. Accountability "I think we have all the necessary equipment, all the infrastructure — whatever you need — except maybe the accountability, reliability," he says. "I have to be honest, we don't really get a high score in terms of reliability for the projects we are doing and the way we are doing them. That should be the only missing link in my way of looking at it. If we have that [reliability], there won't be anything to stop our exhibitions growth. "What I've been talking about relates directly to exhibitions, because the buyers and sellers will hesitate to commit to the country and investment for the short or long term without reliability." Gandhi says Thailand's exhibition infrastructure has under gone a major transformation. When the Challenger exhibition and convention hall opens at IMPACT, Thailand will have one of the region's top exhibition draw cards. Challenger will comprise 60,000 sqm of exhibition and convention space, 20,000 sqm of lobby area, 13 meeting rooms covering 8,000 sqm and 120,000 sqm of indoor parking. A five-star hotel is also earmarked for the site, with negotiations underway with a number of global hotel groups. Paul Kanjanapas, managing director of IMPACT Exhibition Management Company, claims Challenger will be one of the biggest column-free buildings in the world and will turn the venue into one of the world's best. He predicts the launch of Challenger will result in IMPACT's revenue growing 100 per cent next year, with the centre having already booked events at Challenger for September through to the end of the year. They include the Asian Furniture Fair, a trade show geared towards the Chinese market. Flexibility Across town, BITEC has shown it eagerness to keep pace with the competition, with the blueprints for phase two and three developments having already been drawn up. BITEC's flexible exhibition floor space ranges from 5,000 sqm to 26,000 sqm. There are 32 loading bays and 15 drive-in access doors. One of the most prominent events at the centre this year was VIVAsia in March. The agricultural exhibition attracted 100,000 international and local visitors, as well as about 400 international and national exhibitors. Thailand's other main exhibition venue is Queen Sirikit National Convention Centre, which offers 60,000 sqm of exhibition space. The city is also equipped with the Sofitel Central Plaza and Bangkok Convention Centre, while the US$62.5 million five-star Central World Hotel and Convention Centre, which will deliver more than 10,000 sqm of floor space and accommodate up to 6,000 delegates, is slated to open in the heart of Bangkok in 2007. opinion thailand will succeed Richard de Boer, manager of the VIVAsia exhibition at BITEC for VNU Exhibitions Europe, says Thailand's venues — especially IMPACT and BITEC — are one of the exhibition industry's main strengths. He says the country's other main selling points are its service, hotel accommodation, improved accessibility and pricing. "Nowhere in the world do people treat customers, visitors, exhibitors and foreign organisers in the way Thai people do," he says. De Boer says doing business in Thailand is a mix between Europe and the US, but not as blunt. However it is a lot more direct than the rest of Asia. "Looking at the part of the exhibition industry I work in, I can conclude that they [Thailand] do business in an international way — friendly, but determined and to the point." While conducting business in Thailand has become more direct, De Boer says it's done in a way that makes things clear and nobody feels "bruised", adding that in Thailand it's all about understanding the different ideas and needs of international organisers. "They try to combine the best of both worlds and see foreign organisers as a partner and not only as a source of income," he says. "Partnership is important. In Thailand, people understand our way of thinking and reacting without losing their own identity and way of acting and thinking — that makes doing business more pleasant." Thailand's business climate would be even more enjoyable if industry figures learned to be more patient when waiting for a return on their investment, he says, while staff turnover is too rapid. While De Boer doesn't believe these problems will be rectified any time soon, he says the negatives of trying to earn a dollar in Thailand are massively outweighed by the positives. He's certain its exhibition industry can look forward to a bright future, as it has all the necessary ingredients to grow into one of the major players in Asia. If De Boer has one word of warning for Thailand's exhibition industry, it's this: "Thailand is in Asia — remain Asian; nobody is waiting for more European or American clones. Maintain your own identity. Promote Thailand more in the international arena and point out the fringe benefits of having a show or convention in Thailand, such as your climate, food, scenery and people."