GROWTH OF COMPETITION

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GROWTH OF COMPETITION
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GROWTH OF COMPETITION

• Growth of Competition
• in the International
• Meetings Market

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GROWTH OF COMPETITION
ICCA Research Top Findings

• 60 increase in worlds total number of
  international Association meetings occurring
  over the last decade
• World / International - most important
  rotation group (50 of total)

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GROWTH OF COMPETITION
ICCA Research Top Findings

• Europes market share remains stable
• Asia has second largest market share
• North Americas market share gradually decreasing

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GROWTH OF COMPETITION
Evidence of New Trends

• Growing importance of regional meetings
• Massive growth in Asian economies
• Most international organisations headquarters
  based in Europe

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GROWTH OF COMPETITION
Evidence of New Trends

• International Association Headquarters

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GROWTH OF COMPETITION
Evidence of New Trends

• Growing number of subjects being covered by
  Associations
• Totally new Associations / Special Interest
  Groups formed from larger organisations
• Fragmentation will continue to drive growth
• Growth in number of smaller meetings

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GROWTH OF COMPETITION
Evidence of New Trends

• Business, scientific and medical world
  experiencing accelerating development
• Face to face meetings are most efficient
• Technical advances enhance meetings rather than
  replace them

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GROWTH OF COMPETITION
Global Expansion of Meeting / Exhibition Space

• 2000 vs. 2005

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Global Expansion of Meeting / Exhibition Space
Millions of Square Meters 2000 vs. 2005
North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Leading Countries by Total Exhibition Space
Millions of Square Meters 2005
North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Leading Countries Brand Index 2006

• Highest ranking Country Brands
• Australia, U.S. and Italy
• Tourism rising stars
• China, Croatia, United Arab Emirates
• Travelers becoming more attracted
• to the scarce and limited

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Competition

• Technology
• Geographic
• Supply side driven
• Demand side driven
• New niche (technology) players
• Co-opetition

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Technology

• Conference calling
• Video conference
• On-line meetings
• People meet continuously do have a need for
  face-to-face
• Technology enhances meetings

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Geographic

• Away from Western Europe into
• Eastern Europe
• Success of Australia
• Enormous growth of Asia
• (many new centers in China)
• South Africa

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
Australia 91
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GROWTH OF COMPETITION
Supply Side Driven

• MICE tourism now recognised as key economic
  driver
• Local government builds centers
• Often total infrastructure lacking

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Supply Side Driven

• SINGAPORE
• 175 million over 5 years to attract
• international conventions and exhibitions
• Attracting international associations to set
• up regional HQs
• Help attract international event organisers
• to Singapore
• Assist Singapore firms establish overseas
• partnerships
• 3 year global marketing program

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Demand Side Driven

• Globalization more events, but are we also
  expanding the total number of delegates?
• Buyers market
• Greater range of choices in each region
• Looking for which destination is making the
• best offer
• Level of local support

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Co-Opetition

• Co-operation and Competition
• Best Cities
• INCON
• Convention Centre exchange

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Co-Opetition

• Best Cities
• The worlds first global alliance of
• convention bureaux
• Branding
• Business development
• Service standards
• Knowledge exchange

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe Future Success of Meetings

• Region well placed for a tourism boom
• Meetings industry will evolve at a rapid pace
• Czech Republic / Hungary most successful
  meetings destinations

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe Future Success of Meetings

• Lower interest in Bulgaria, Romania, Slovakia,
  Serbia, Montenegro, Latvia
• Mainly due to lower profiles and lower
  investment in infrastructure development
• More immediate interest
• Croatia, Estonia, Poland

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe Future Success of Meetings
2005 World Rankings for International Conventions
North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe A Closer Look

• Bulgaria
• Bulgarian Convention Visitors Bureau
• Joint Initiative of Hotels, Business / Non
  Governmental Organisations, Tour Operators,
  PCOs
• Hungary
• Budapest remarkable success with meetings
• Challenge to extend outside of Budapest

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe A Closer Look

• Czech Republic
• Prague highly praised for culture, historical
  buildings, congress centre and excellent service
• Prague considered expensive need to promote
  alternative cities
• Slovenia
• Tourism is a key ingredient in post-independence
  economic / political strategy
• Has 4 major congress centres but need for
  better awareness and improved air lift

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe A Closer Look

• Poland
• Convention Bureaux established in larger cities
• Strong need for meetings information, improved
  infra-strucure and awareness building
• Romania
• Lack of infrastructure, communication and
  marketing of the meetings industry
• Need for increased safety, political stability
  and professional service

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe A Closer Look

• Croatia
• Has created a new national image
• Unique destination history and culture,
  coastline, nature and nice weather
• Slovakia
• Low state promotion and absent regional
  marketing poor knowledge of the country
• Need for improved infrastructure, airlift and
  service

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Eastern Europe A Closer Look

• Serbia
• One of Europes least known countries as far as
  meetings is concerned
• Negative perception of regions instability
• Lack of investment in tourism infrastructure
• Need for improved airlift
• Need for improved marketing communication
• Destination Branding and Positioning Strategy
  need
• development

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Competitive Attributes

• Direct air services
• Local accessibility between
• Hotels, venues, airport and attractions
• Infrastructure
• Capacity, technology, food beverage,
• service quality
• Cost competitive
• Air and ground costs for organisers and
• delegates

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Competitive Attributes

• Safety and stability
• Experience and expertise
• Destination awareness
• Strength of local support
• government, industry and local host
• Ability to cater for delegates from many
• cultures
• Ease of doing business within the destination

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
To be competitive the Belgrade industry must

• Work cooperatively for a seamless presentation
• and delivery
• Identify and sell your destination attributes
• Monitor your competition developments,
• pricing, strengths and weaknesses
• Under sell, over deliver
• Listen and research your clients needs and then
• deliver on their needs
• Build relationships with your target audience

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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GROWTH OF COMPETITION
Conclusion

• Globalization means more competition
• Both demand and supply factors are responsible
  for the increase in competition
• Co-opetition is a key
• Consider how to be more competitive

North America 45
Europe 30
Asia 86
Africa 8
Central / South America 55
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Thank You