Taking up the challenge

Singapore's exhibition venues are trying to find ways to generate business in the wake of the sharp economic downturn and the problems caused by the September 11 US terrorist attacks. Singapore's exhibition industry has to grapple with the fact some firms are restricting their employees from traveling overseas because they are cutting back on travel expenses as part of general cost-cutting measures to counter the global economic slump. Employees themselves are less inclined to attend an overseas exhibition because the plane hijackings in the US have made people, particularly Americans, apprehensive about flying. Singapore itself is also experiencing its worst recession since 1965. All three factors have contributed to some exhibitions being downsized, cancelled or postponed. The most widely reported case was the international Sibos conference organised by the Society for Worldwide Interbank Financial Telecommunications (SWIFT), which cancelled about one week before the event was due to be held on October 15-19 at Suntec Singapore. It would have had 200 exhibitors, mostly financial institutions and IT firms, and 4,500 delegates. The organiser cancelled because 20 to 30% of delegates withdrew following the US terrorist attacks. Other cancellations include the Oceanology International Pacific Rim conference and exhibition that was to be held in December at Singapore Expo. It is the first cancellation of the annual marine sciences and technology event since its inception in 1997. The Pan Asia Securities Lending conference and exhibition was also cancelled. It was to be held at the Grand Hyatt on November 8-9, attracting eight to ten exhibitors and about 200 delegates from ten countries. The organisers of these events all cited the US terrorist attacks as the main reason for canceling. But Suntec Singapore chief executive officer Mr Warren Buckley says the main problem has been the economy. The impact of September 11 was immediate but it only lasted a short period, says Mr Buckley. And the main problem has not been cancellations but the fact exhibitions are getting smaller because of the weak economy, he added. This means organisers are using less exhibition space, want venues to be more flexible and are only willing to commit early on to a partial take-up of space, he adds. Singapore Expo general manager Mr Steven Seet agrees that industry setbacks are due to the economy not the September 11 incidents . But, despite the problems, Singapore Expo performed well last year and Mr Seet is optimistic about the future. Singapore Expo had 36% occupancy in 2001 compared to around 25% in the year 2000 according to Mr Seet. "Forward bookings are looking quite healthy this year and assuming there are no unforeseen circumstances we should experience an increase in occupancy," he says. This is because Mr Seet predicts the global economy will rebound later this year, lead by a US recovery, and that "even years are generally better for the exhibition industry" because many shows are bi-annual. Suntec Singapore's Mr Buckley predicts there will be as many exhibitions, maybe slightly more, than last year. There were 71 exhibitions at Suntec Singapore last year compared with 64 in the year 2000. Reed Exhibitions president in Singapore Mr Jimmy Lau, predicts there will be as many exhibitions as last year. Reed Exhibitions, for example, plans to organise the same number of shows. Mr Lau says even though some shows will be axed there are enough new shows - such as BATIMAT, a building materials event - to make up the difference. He also predicts the poor economy will result in exhibitions decreasing in size by 15%-20% in terms of floor square meters. Mr Lau argues more needs to be done to market Singapore as an exhibition destination. He suggests generating more publicity in the regional and international news media and spending more on advertising. Meanwhile, Reed Exhibitions is one of the many organisers looking to rein in costs this year. "We're looking for the same financial results as last year's, so we're speaking to suppliers to try and keep costs down," he says. Reed also plans to cut costs by turning to internet and e-mail marketing to promote its shows rather than spend so much on direct marketing, which involves printing expensive promotional material. He adds the venues have assisted "by giving us some breathing room so we don't have to commit so early on and if it's a new show they might give us a good rate which helps us to launch the show and lower our risk". Both Singapore Expo and Suntec Singapore are reluctant to elaborate further on such deals. Mr Seet at Singapore Expo was quick to claim venues cannot afford to discount because they must remain profitable so that money can be invested in up-grading programs to keep the venue in prime condition. He said rather than cut prices Singapore Expo prefers to help organisers save money by adding value. This involves offering event management services, providing risk capital, helping organisers with visitor promotions, operations, logistics and matching up with the right local contacts such as chambers of commerce. Singapore Expo can even act as the event organisers' Singapore representative handling local and regional sales. "If they had to set up an office that would cost them a lot because it would mean, for example, having an office for 24 months with no income coming in," he says. Singapore Expo would even consider taking minority equity in a show and then selling it back a few years later, says Mr Seet. While Singapore Expo is getting more involved in organising events, Suntec Singapore has been marketing itself more aggressively to generate new business. It has persuaded the Singapore Tourism Board as well as some top international hotels in Suntec City to contribute to an ad campaign promoting the venue as "Singapore's Intelligence Centre". Mr Buckley says the campaign has already generated new business and some valuable sales leads. He adds the campaign highlights the infrastructure and facilities available to organisers that use Suntec Singapore such as the many hotels, restaurants and transport services nearby. Some ads in the campaign also highlight the venue's new wireless service that allows delegates and exhibitors, who purchase a special card, to access the internet and e-mail with the need for cabling.