Thai exhibitions move up a gear - Oct 00

Thailand's exhibition industry is becoming more proactive in attracting events to the country after the tough years of the Asian economic crisis. These are tentative steps. The sector has made great strides but even among exhibition organisers in Thailand, vested interests often prevent the industry from speaking with one voice. Government support at policy level is higher than ever, yet this fails to trickle down to junior custom and transport officials, who put personal gain ahead of the country's economy. While there are no dedicated statistics on exhibitions, according to the Tourism Authority of Thailand (TAT) only 0.88% of the 8.6 million visitors to Thailand in 1999 attended meeting and incentive events. Nevertheless, new venues, improved infrastructure and a brighter economic outlook have caught the interest of overseas exhibition organisers. The Bangkok International Trade and Exhibition Centre (BITEC), Thailand's first dedicated exhibition centre and the only facility in the country with a bonded warehouse, is leading the way. It was also the first to join forces with overseas organisers to bring international exhibitions to Thailand when it signed a joint venture agreement with Hanover Fairs Asia in 1998. The partnership began with the Asia Automotive Fair in November 1999. BITEC director of marketing and sales Mr Roel Van Leeuwen says it would continue focusing on international business and competing against the likes of Singapore and Hong Kong for business. "We still work in the local market with international organisers like Miller Freeman and Reed Tradex, but it is important not to dump prices. "BITEC is priced almost the same as venues in Singapore and Hong Kong, so some people in Thailand say we are too expensive," says Mr Van Leeuwen. BITEC is waiting for demand to increase before it moves forward with its second development phase for expanded exhibition halls and on-site hotel. The centre is also close to the second Bangkok International Airport at Nong Ngu Hao, which is expected to open sometime after 2004. Management at the Queen Sirikit National Convention Centre (QSNCC) says that it has lost market share to BITEC and is implementing long-delayed expansion plans to compete more effectively. The project will begin at the end of 2000, with ambitious plans to increase available area to a minimum of 32,000sqm from the present 20,000sqm, adding 3,000 additional parking spaces in the process. The project will cost 3,500million baht (US$93million) and will include a 400-room, five-star hotel property that will be run by a yet-unnamed international management chain and will open by 2003. On Thailand's eastern seaboard, the Pattaya Exhibition and Convention Hall (PEACH) has put the seaside resort city on the conference and incentive map by offering organisers a viable alternative to Bangkok. Affordable rates that started from 120 baht per square metre for its first year of operation has sweetened the offer. PEACH has a capacity for 5,800 people theatre-style and 3,700 for sit-down banquets. The convention and exhibition hall is constructed on ten acres of seaview land amid 64 acres of tropical gardens. With a total area of 4,869sqm, the main convention and exhibition hall can be divided into three sound-proofed halls. There are also ten meeting rooms with areas ranging from 40-140sqm in the main complex. The Bangkok Convention Centre (BCC) completed its 60million baht renovation last year. The refurbishment was the first for the facility, which was built in 1983. It is part of the sprawling Central Plaza complex that includes the Central Department Store, BCC and the 607-room Central Grande Plaza Hotel. Vice-president Mr Gerd Steeb says BCC remains unique because it is the only conference and exhibition facility of its size in Thailand with an adjacent hotel development. "It is good for events up to 3,000 participants and is ideal if they want to stay close to the venue. "Exhibitions that don't require the size of BITEC or QSNCC are coming back to us," says Mr Steeb. Another ambitious venue planned by the Department of Export Promotion and TCC Hotels and Management, parent company of the Imperial Hotels Group Thailand, has been postponed until the economic climate improves. The 1,900million baht Thailand Trade and Convention Centre was supposed to open in late 1999 with an adjacent hotel and office tower and 50,000sqm of saleable exhibition space. Even so, this represents a huge improvement 20 years ago when Thailand was first trying to gain a foothold in the industry says Trade Exhibition Association (TEA) president Mr Charnchai Svangsopakul. "We have seen significant improvements in the past 20 years since the sector first came of age in 1980. Then there were no venues, no staff, no support facilities and no understanding of the benefits the industry could bring," he says. Not that Mr Charnchai doesn't see room for improvement. Since becoming TEA president last year, Mr Charnchai has worked to create a cohesive platform for the TEA to position Thailand as a regional exhibition centre. "Hong Kong is the centre for exhibitions and trade fairs in Asia. It has the natural advantage of being part of China, the world's biggest market. "Singapore has more venues with more space even thought it is a small country. With these resources, it is able to convince people it is the exhibition centre for the region," says Mr Charnchai. He says the TEA is now better prepared to meet this challenge than ever before. Strong support from BITEC has given the association its first permanent home rent-free for three years. Last February, TEA decided to set up a permanent office because members wanted full-time staff working for the association. Mr Charnchai says the TAT has given the TEA six million baht a year, and TAT governor Mr Pradech Phayakvichien has also thrown his support behind the TEA and its membership. "It's a good sign that we are starting to speak the same language. As far as the TEA is concerned we are very pleased with the reception," says Mr Pradech, who also pledges financial and marketing support from the TAT. The latter would be especially helpful as Mr Charnchai says the TEA lacked the financial resources for marketing endeavours. "I think the private sector asks too much from the government, it asks for too much help. The first thing we have to do is convince TEA members that we should limit government subsidies and that instead the support and infrastructure needs to be built internally." Rai Exhibitions (Thailand) managing director Mr Marc de Vries agrees that the private sector has been quick to criticise the government in the past. But he argues there has been a heightened understanding more recently of what benefits the industry can offer. "If the Thai government goes another step further and realises this, gets past the problem of competing government agencies and comes up with a coherent conference and incentive policy, then the limits are boundless. "There is nothing to stop business from exploding, the potential is enormous," adds Mr de Vries. He notes that Amsterdam Rai is 50% owned by the municipality of Amsterdam, and the spin-off business was worth US$500m in conventions alone for Amsterdam. However, Miller Freeman (Thailand) executive director Mr M Gandhi lamented it was still the responsibility of individual organisations and companies to promote the exhibition industry. What government assistance there was amounted to little more than moral support. While Rai Exhibitions wants government assistance to attract international events to Thailand, Mr Gandhi believes supporting home-grown events that stay in the country was more important. "I think there is an urgent need to change current thinking. We try to go out and bid for one-time events, congresses that come every few years for only one meeting. But the government should give the same priority for home-grown events that stay in Thailand every year. The government should focus on events that are here to stay and make Thailand home," he says. "These events must have a solid foundation from international organisations like ours that are committed to the country." He uses the example of Miller Freeman's Intermach industrial machine show that has been held in Thailand for 15 years and will carry on, he says, for another 15. It is better to look at how to attract more international visitors to venues that have guaranteed annual business, he argues. Mr Gandhi believes Thailand's hotels and exhibition facilities are among the region's best. "The infrastructure is better and complaints about the traffic are a thing of the past as the Skytrain and the new expressways have made it much easier to get around," he says. Still not all international organisers are waiting for government understanding to improve, even if publicly they say how nice it would be to enjoy increased public-sector support. Few care to admit publicly that lack of government support is a huge competitive advantage for existing companies already doing business in Thailand because it discourages other rivals from entering the market. But industry observers point out that this is precisely what is hurting Thailand's exhibition sector. Even so, there are other positive signs of change. Within private sector associations, co-operation has dramatically increased, with the TEA now part of the Thailand Incentive and Convention Association. The TAT has named 2002 "Meet in Thailand Year" and customs and immigration authorities have discussed creating dedicated channels for conference and incentive delegates that attend events that year. If successful, it could become permanent. Mr Charnchai says his main challenge is to establish a positive action plan to raise the industry and the TEA to a new level in the eyes of government decision-makers. This is a challenge in itself given the association's broad-based membership. "Our membership is diverse and the TEA must look after the interests of PCOs, contractors, exhibition venues and freight forwarders. As an association, we have to serve all and each member has his own objective," says Mr Charnchai. He admits for Thailand to increase its exhibition market share the TEA will have to facilitate even more private and public sector co-operation. "So far, support from the BOI (Board of Investment) has been strong, especially for building exhibition centres and recognising the benefit Thailand's economy has received from the sector." Even so, building the country's exhibition industry to international standards does not happen overnight. "I don't look at the sector and see weakness any more, the only weakness I see is the Thai economy as a whole. When the economy is weak no one comes to buy," he says. Mr Charnchai says the TEA intends to promote the association through the mass media, by taking part in overseas trade events and also contacting international associations abroad. The latter is both to arrange educational trips for members and encourage various overseas associations to meet in Thailand. He also wants the TEA to alter the perception of local advertising agencies until they see the exhibition industry as a marketing tool. "The challenge is changing the way they think, so agencies will recommend to clients to participate at exhibitions rather than putting money only into television and radio advertisements," he adds. Working through local chamber of commerce chapters in Bangkok is another way to get the TEA's message across argues Mr Charnchai. "Relationships with them are very effective in a number of ways. Not only can we keep them up to date on our activities but they also request information from us regularly, such as providing a calendar of events for exhibitions in Thailand, this is sent back to the home country to support our activities," says Charnchai. Before the Asian economic crisis, most embassies did not have comprehensive information about the Thai exhibition industry and the TEA was not active enough. "Now they are competing to get the most information from us and are evaluating which exhibitions suit their needs," Mr Charnchai says.