What Are the Long Term Changes in the Meetings and Conference Market as a Result of the Recent Economic Environment?

For Destination:

 Promote MICE industry and become MICE destination

According to Weber and Ladkin (2004), the expert panel in Australia identified four trends in business environment, namely the globalisation of business; governments’ increased awareness of the economic benefits of the MICE industry; taxation; currency exchange issues.

The globalisation of business is on going now. Weber and Ladkin (2004) stated that the greatest changes of conference industry are likely to occur in the structure and the role it is going to play in an information-oriented society. A sustainable information sharing provides previously updates for industries and professional changes; it causes those conferences and meetings insufficient only once a year. Consequently, countries compete to be MICE destination.

Governments are particularly interesting in the economic benefits from MICE industry. After economic crises, many countries have economic downturn in different industries. However, MICE industry has been developed. According to Convention Industry Council (2011), direct spending by MICE industry to U.S. in 2009 was contributed US$263 billion. Compare with the direct spending that was contributed US$122.31 billion in 2004 (Power, 2005); there is 46% of increase.

MICE industry has developed very rapidly and became a competition. Weber and Ladkin (2004) stated “Competition is likely to intensify, with new destinations challenging the position of mature ones.” Asia has strong competitive to become MICE destination. For example, the weak currency exchange rates of the Hong Kong Dollar affect the real and perceived cost of conference packages; using other currencies is beneficial to hold conference in Hong Kong. Moreover, Hong Kong has lower tax rate comparing with United State. Hong Kong is using these advantages to promote itself as a MICE destination. Many Asian countries likes Korea, Japan and Singapore are promoting MICE industry in their countries.

 Keep competitive by government funding in infrastructure

Improving infrastructure is one of the methods to increase destinations competitive than the others. Whatever new emergence destinations or mature MICE destinations, increasing competitive is one of the methods to avoid being substituted. Weber and Ladkin (2004) stated several methods to change competitive situation; namely, the increase in the number of venues, the improvement of existing facilities, more competitive prices from other destinations, and higher consumer expectations.

According to Kim, Park and Lee (2010), since COEX (Convention and Exhibition Center in Seoul) was opened in May 2000 in Korea. EXCO-Daegu (Exhibition and Convention Center in Daegu City, 2001), aT Center (Agro-Trade Exhibition Center in Seoul, 2002), KINTEX (Korea International Exhibition Center,