Opportunities and Threats in ASEAN exhibition market

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Opportunities and Threats in ASEAN exhibition
market

• Jimé Essink, President CEO of UBM Asia
• TCEB Exhibition Forum 2011

Bangkok, 20 January 2011
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Topics

• Brief introduction on UBM Asia
• Exhibition market worldwide and in Asia
• Focus on SE Asia
• Opportunities/Risks for Thailand
• Discussion

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UBM Asia offices
Turkey
Istanbul (21)
Korea
Beijing (20)
Japan
Seoul (8)
Tokyo (56)
China
Shanghai (197)
Hangzhou (59)
Chengdu (1)
India
Taiwan
Guangzhou (80)
Taipei (9)
New Delhi (17)
Hong Kong (178)
Mumbai (136)
Thailand
Hyderabad (1)
Bangkok (41)
Bangalore (6)
Chennai (2)
Singapore
Singapore (10)
More than 800 staff in 17 offices all over Asia
UBM Asia
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UBM Asia Leading B2B media operations
throughout the region

• UBM Asia has subsidiaries in 10 countries and
  regions and organises events
• in 25 cities.
• Offices in Hong Kong, Shanghai, Beijing,
  Guangzhou, Hangzhou, Chengdu, Tokyo, Seoul,
  Taipei, Singapore, Bangkok, Mumbai, New Delhi,
  Bangalore, Chennai, Istanbul and New York
• Over 800 staff

• 150 events (130 exhibitions)
• 34 publications
• 12 B2B vertical portals
• A million plus customers, including exhibitors,
  visitors, conference delegates, advertisers,
  subscribers and portal members

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UBM Asia
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UBM Events in Asia
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History of UBM Asia
2010
Acquisition of Sign China LED China and formed
UBM Trust in Guangzhou. Acquisition of
Children-Baby-Maternity Products Expo and set up
UBM China (Hangzhou) office Acquisition of
Istanbul Jewelry Show and formed UBM Rotaforte
1994
2007
2001- 2005
First establishment of UBM Asia, with
headquarters in Hong Kong. Combination of
transfer of pre-existing Asian B2B exhibitions
from parent company and three acquisitions two
leading Asian exhibition organisers and a
publishing company, all based in Hong Kong.
Acquisition of KSS, a leading Japanese B2B
publisher and exhibition organiser by UBM Japan.
Acquisition of Japan Jewellery Fair Set up UBM
China (Guangzhou), the first wholly-owned company
in China.
Through organic growth and acquisitions, UBM Asia
is long established as the leading commercial
exhibition organiser in Asia, with related
publications and on-line media.
Continuous organic growth and more than 50 new
launches and acquisitions
2009
1998
2006
Acquisition of China International Optoelectronic
Expo in Shenzhen, the worlds largest
optoelectronic event (now part of eMedia Asia, a
UBM JV)
1999-2000
Acquisition of majority share of Sinoexpo, the
leading commercial exhibition organiser in
Shanghai. UBM Sinoexpo continues to be jointly
run by UBM Asia and the original owner.
Acquisition of a majority share, with our Italian
partner BolognaFiere, of the Guangzhou Beauty
Expo. Established a new company in India, UBM
India.
Further acquisitions of individual exhibitions by
UBM Sinoexpo in China followed, such as Hotelex,
a hotel equipment exhibition, and China Ceramic
Fair, now part of our Expo Build China.
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UBM Asia
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UBM Asia
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UBM Asia Revenue development
9/11
SARS
H1N1 Flu
Global Recession
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UBM Asia Revenue by geographical region
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UBM Asia Top 20 events by revenue
Product Sector Net exhibition space (SQM)
1 Hong Kong Jewellery Gem Fair (September) Fashion 62,722
2 Furniture China Lifestyle 115,729
3 Cosmoprof Asia Lifestyle 31,089
4 Marintec China (2009 biennial event) Trade Transportation 26,367
5 CPhI and P-MEC China Ingredients 45,018
6 Hong Kong Jewellery Gem Fair (June) Fashion 24,210
7 CPhI and P-MEC India Ingredients 24,096
8 APLF - Materials, Manufacturing Technology Fashion 12,145
9 Sign China Other 30,927
10 APLF - Fashion Access, Spring Fashion 9,673
11 Hotelex Shanghai Lifestyle 30,838
12 All China Leather Exhibition Fashion 10,281
13 Children-Baby-Maternity Products Expo Lifestyle 25,645
14 Health Ingredients Japan Ingredients 7,614
15 Asia's Fashion Jewellery Accessories Fair (June) Fashion 8,625
16 Sea Japan (biennial event) Lifestyle 4,621
17 Tokyo Health Industry Show Health 5,760
18 CPhI Japan Ingredients 4,240
19 China International Boat Show Lifestyle 9,707
20 Asia's Fashion Jewellery Accessories Fair (September) Fashion 6,183
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UBM Asia
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Global exhibitions a 29 billion market
Exhibitions market by geography
Exhibitions market by operator
bn

Events venues Events only
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Asia is US 3.4 billion and only 12 of world
market
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Percentage of world GDP
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Size of the exhibition business in Asia
Trade fair market by estimated revenues, 2009
Market No. of exhibitions identified Estimated annualised revenue (US millions) Annual revenue per fair (US millions)
China 514 1,136.3 2.2
Hong Kong Macau 88 15 331.4 24.5 3.7 1.6
Greater China 1,492.2
Japan 326 816.1 2.5
Korea 154 228.3 1.4
Australia 166 176.0 1.0
India 112 157.2 1.4
Thailand 75 149.4 2.0
Singapore 74 93.1 1.2
Taiwan 63 86.5 1.3
Malaysia 43 75.8 1.7
Indonesia 43 43.5 1.0
Vietnam 47 42.0 0.8
Pakistan 26 18.2 0.7
Philippines 36 15.8 0.4
Total 1,782 3,394.1 1.9
Total SE Asia is US 420m, 12.5 of total
market. China is 33.5 and India is 5.
Source The Trade Fair Industry in Asia Report
(6th Edition 2010) by Business Strategies Group
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UBM Asia
UBM Asia
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Southeast Asia
Population (mn) 593 GDP US1.8 trillion
(India is US1.24 trillion) GDP per capita
US2,995
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Southeast Asia (ASEAN)

• 10 economies Brunei, Cambodia, Indonesia, Laos,
  Malaysia, Myanmar, the Philippines, Singapore,
  Thailand and Vietnam.
• Asean Economic Community (AEC) common market by
  2015. Free flow of goods, services, capital and
  people
• Free trade agreements with China and India
• Potential to develop SE Asia regional events
• More interest from international and local
  exhibitors
• More overseas visitors from SE Asia and outside
  SE Asia
• Which country in SE Asia is best placed to take
  advantage??

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Singapore
Population (mn) 4.8 GDP US181.9 bn GDP per
capita US37,600
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Singapore market

• Mature market
• Moderate decline in 2008 and 2009, growth
  expectation in 2010 and 2011
• Limited home market, competition from Hong Kong
  and Bangkok
• The Sands Expo and Convention Center at Marina
  Bay Sands will boost Singapore as a destination
  for conferences and exhibitions
• Singapore Tourism Board is very active in
  promoting the exhibition industry
• No competition from government
• Excellent venues/infrastructure

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Singapore Top 6 exhibition organisers market
share
Total market in 2009 (US million) 93
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Malaysia
Population (mn) 27 GDP US193 bn GDP per
capita US7,029
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Malaysian market

• Quite a mature market, sandwiched between
  Singapore and Bangkok as stronger developed
  exhibition markets
• Small domestic market
• Good venues, but rather small (total 80,000 m2
  gross versus Thailand 200,000 m2)
• Good infrastructure and suppliers
• Associations play mostly a supportive role
• Government does not organise exhibitions
• Set up MyCEB (Malaysia Convention and Exhibition
  Bureau) to coordinate MICE promotions
• In 2009 incentive of US28,000 per event gt 300
  foreign visitors
• International events in Malaysia gt 500 foreign
  visitors are exempted from profit tax!

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Malaysia Top 5 exhibition organisers' market
share
Total Gross Space Occupied 467,500 sqm
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The Philippines
Population (mn) 91.9 GDP US161 bn GDP per
capita US1,752
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The Philippines market

• Small domestic market
• Limited venue space (Total 40,000m2 gross)
• Government (CITEM) is involved in organising
  trade shows export-oriented but invite more and
  more local importers.
• CITEM subsidised, so price competition with
  commercial organisers
• No incentives from government
• Associations also organise events, mostly low
  prized
• Tedious process in clearing exhibition goods
  (Philippines is not a member country of ATA
  Carnet)
• No international organisers, mostly local
  organisers focusing on consumer events

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The Philippines Top 5 exhibition organisers'
market share(Mostly consumer shows)
Total Gross Space Occupied Year 2009 180,000 sqm
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Vietnam
Population (mn) 87.2 GDP US90 bn GDP per
capita US1,032
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Vietnam market

• Strong growth of economy, especially the
  manufacturing sector
• Limited venue space and rental prices are high
  (total 45,000m2 gross)
• License needed from Trade Industry Department
  of the City, need of a local partner
• No rules, so risk licenses for same sectors at
  the same time
• No government involvement in organising
  exhibitions, support is only for overseas
  exhibitions
• Limited association involvement
• Low price of participation versus high costs
• Strong need for information, few quality trade
  shows
• Several international organisers are active in
  Vietnam

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Vietnam Top 5 exhibition organisers market
share
Total Gross Space Occupied 282,500 sqm
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Indonesia
Population (mn) 237.5 GDP US510.8 bn GDP
per capita US2,150
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Indonesia market

• No internationa interest before political
  instability and bombing threat
• Change in political outlook
• Stable GDP growth (5)
• Massive population 240 million
• Two reasonably good venues in Jakarta Jakarta
  Convention Center (20K gross m2) and Jakarta
  International Expo (25K gross m2)
• At present 51 by foreign-owned exhibition
  company (100 foreign-owned was possible for a
  short period in 2010)
• Corruption issue is there, but not much worse
  than in some other countries
• Exhibitions/face-to-face is important in
  Indonesian culture
• No involvement/competition from government or
  associations
• Mostly smaller local players

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Indonesia Top 5 exhibition organisers market
share
Total market (US million) 43
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Thailand
Population (mn) 67 GDP US273.2 bn GDP per
capita US4,080
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Thailand market

• Large and growing domestic market, export-related
  manufacturing is strong
• Excellent infrastructure venues, airport, roads,
  hotels, contractors
• Attractive location excellent price/quality
• TCEB plays an active role in promoting MICE
  incentives for bringing overseas
  exhibitors/visitors and Better the Best Program
• Limited competition from associations
• Government (DEP) is active in exhibitions for
  finished products with subsidised rates.
  Competition with commercial organisers.
• Political instability red/yellow conflict

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Thailand Top 6 exhibition organisers market
share
Total Gross Space Occupied 933,000 sqm
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Thailand Exhibition venues
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The Pride of Thailand

• Going Green for the Future
• 10 - 25 November 2011
• IMPACT Exhibition and Convention Center
• BOI Fair 2011 Management UBM Asia (Thailand)

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• Objectives
• To celebrate special year for His Majesty (the
  King)
• To highlight the achievements of Thai industry
  and create a platform to meet and do business
• To build confidence in Thailands economy with
  special attention to society and natural
  environment
• Size
• Total exhibition space 240,000 m2 gross
• Total visitors Five Million over 15 days

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Floor Plan
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Perspective
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Royal Pavilion
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Activity Stage at Lakeside Area
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BOI FAIR 2011 at Night
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Key Exhibitors
Toyota Motor Asian Honda Motor
Nissan Motor (Thailand) General Motors Thailand
Mitsubishi Motors (Thailand) Tri Petch Isuzu Sales
PTT Public Company Panasonic Management
Thai Samsung Sony Group Thailand
Hitachi Asia (Thailand) LG Electronics (Thailand)
Toshiba Thailand Double A 1991 PLC
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Conclusions

• Thailand is very well placed to take a central
  role in ASEAN exhibition market, IF
• Politically stable
• Reduce activities of DEP
• Continuous promotion by TCEB
• Singapore is the most serious contender in the
  short term
• Indonesia could play an important role in the
  future
• Other SE countries are too small and/or there are
  too many restrictions affecting them in playing a
  significant role

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Thanks !!
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jime.essink_at_ubm.com