Transcript Aloysius Arlando

AFTER THE CRISIS:
FINDING THE SILVER LINING IN THE
BUSINESS EVENTS INDUSTRY
29 June 2011
SUMMARY - KEY INSIGHTS FROM AIPC SURVEY
•
•
•
Stronger recovery in Asia
IMF and S&P Asia Pacific
GDP Projections
Rising business costs and
competition
•
•
•
CENTRE
INVESTMENTS
•
•
•
Centres are planning for
expansion and renovation
More clients incorporating
virtual meetings into physical
events
Important to make product
relevant to market needs
BUSINESS
STRATEGY
CENTRE
PERFORMANCE
ECONOMIC
RECOVERY
Rise in gross revenue for
Asia’s centres
Rise in ancillary services
revenue
Event clients seeking onestop shop solutions
TRENDS &
CHALLENGES
•
•
•
Growing number of multiformat events
Shorter booking windows;
Increased negotiation;
Higher quality F&B required
Greatest challenges lie in
competition and travel costs
•
•
•
Business partnerships and
networks to grow revenue
Incentives to attract clients
looking for value added
services
Important to engage in
local non-economic
development efforts (CSR)
UPGRADING PLANS & DEVELOPMENTS IN ASIA
Thailand
IMPACT Muang
Thong Thani
160,200 sqm
(MICE 71,500 sqm)
Bangkok
International Trade
& Exhibition Centre
(BITEC)
56,000 sqm
(MICE 50,400 sqm)
China
Meijiang Convention
& Exhibition Centre
(opened in 2010)
100,000 sqm
(MICE 89,000 sqm)
Chongqing
International
Expo Centre (To be
completed in 2012)
602,000 sqm
(MICE 381,680 sqm)
2008
Malaysia & Singapore
Subterranean Penang
Int’l Convention &
Exhibition Centre
(To be completed by
mid 2014)
70,000 sqm
(MICE : 70,000 sqm)
Max Atria at
Singapore Expo
(To be completed
By March 2012)
8,000 sqm
2014
Hong Kong & Macau
Hong Kong Convention
& Exhibition Centre
Phase III Extension
91,00 sqm
(MICE 91,000 sqm)
Las Vegas Sands (LVS)
Cotai Strip Expansion
600,000 sqm
(MICE 230,000 sqm)
India
Kolkata Intl
Convention Centre
607.000 sqm
(MICE 607,000 sqm)
New Delhi India Expo
Centre XXI
26,000 sqm
(MICE 26,000 sqm)
South Korea
The 2nd KINTEX in Korea
(To be completed in
Sep 2011)
54,624 sqm
(MICE : 54,624 sqm)
Songdo Convensia
Korea
572,511 sqm
(MICE 140,000 sqm)
EMERGING CENTRES OF GROWTH
EMERGING CENTERS OF GROWTH
Asia currently makes up 60% of the world’s population (i.e. 6.5 billion people), and
is a strong growing force fueling the world’s economy.
GREATER CHINA
China, Hong Kong, Taiwan
•
Population size of 1.6
billion people
SOUTHEAST ASIA
•
•
Outbound travel has
grown to about 95
million people a year
Asia Pacific region
continues to be the
most popular
destination for Greater
China travelers
SOUTH ASIA
India, Pakistan, Sri Lanka
•
Population size of 1.2
billion people
•
Outbound travel has
grown to about 60
million people a year
•
Asia is most popular
area for South Asia
travelers
Singapore, Malaysia,
Thailand, Vietnam, Indonesia
•
Population size of 600
million people
•
Outbound travel has
grown to about 78
million people a year
•
Australasia remains
as one of the top
regional destination
KEY INDUSTRY DRIVERS OF GROWTH
FOOD
PRODUCTION &
PROCESSING
Leading industries makes
Asia an excellent ground for
trading centers & investment
opportunities
•
A third of foreign direct
investments are attracted to
these key sectors
•
Key sectors supported by
educated, industrious
populations
ENERGY
HEALTH &
MEDICAL
CARE
BANKING &
FINANCE
ELECTRONICS
TRANSPORT &
LOGISTICS
INFO COMM
TECHNOLOGY
•
TEXTILE &
GARMENT
RISING AFFLUENCE IN ASIA
RISING AFFLUENCE
GDP Per Capita at current prices (US$)
Source: World Bank, World
Development Indicators
POPULATION
GROWTH
(15 - 59 Yrs of Age)
•
Asia’s rising young &
educated working
population is the biggest
positive factor (India’s
mean age: 27 ; China’s
mean age: 38; South-East
Asia’s mean age: 28)
•
Strong GDP per capita
growth signals increasing
disposable incomes; and
influences savings and
investment behavior
•
Large interested buyer
base
MILLIONS
6,000
5,000
Africa
4,000
Asia
3,000
Latin America and the
Caribbean
2,000
Northern America
1,000
Europe
1960
1970
1980
2040
2010
1980
0
1990
2000
2010
GROWING TRADE & MARKET ACCESS
FREE TRADE AGREEMENTS
EUROPE
USA
•
18 Regional and Bilateral
FTAs
•
Great market connectivity
through reduction of tariff
and non-tariff barriers
•
Preferential access to service
sectors
•
Stronger IP regulations
KOREA
CHINA
JAPAN
INDIA
ASEAN
PANAMA
AUSTRALIA
Other Key Free Trade
Agreements (On Regional Basis)
ASEAN-China (ACFTA)
ASEAN-India (AIFTA)
ASEAN-Australia-New Zealand
FTA
Australia (SAFTA)
Trans-Pacific (TPFTA)
NEW ZEALAND •
Protect Organisers’ ideas
and investments against noncommercial risks
THE “NEW NORMAL” - SHOCKS TO SYSTEM
ASIA PACIFIC (2010-11)
REST OF THE WORLD (2010-11)
Socio-political
•
Social Unrest
(Thailand)
•
Rural-Urban Income
Disparity (China)
Socio-political
•
Middle-east Instability
•
Terrorist Attacks
(US, Europe, India)
Economic
•
Tainted Food
Supply/Security
•
Pollution, Rising Prices
•
Over-heating & Urban
Density Pressures
Economic
•
Financial Markets
Uncertainty
(US, EU)
•
Rising Oil Prices
•
Cyber-attacks
Nature/Climate Change
•
Tsunami, Nuclear
Meltdown (Japan)
•
Earthquake
(Christchurch, China,
Indonesia)
•
Flood & Drought
(Australia, China)
Nature/Climate Change
•
Earthquakes,
Volcanic Eruptions
(Haiti, Chile, Iceland)
•
Heat Wave
(Russia)
CRISIS IMPACT ON COUNTRY’S ECOSYSTEM
CITY
CITY STATE
CITY
BUSINESS
BUSINESS
BUSINESS
LIFE
COMMUNITY
COMMUNITY
In Equilibrium
Distortion exists
BEFORE CRISIS
AFTER CRISIS
IMPACT ON CITY, BUSINESS AND COMMUNITY
• Loss of Infrastructure and Production Assets
• Drop in GDP Growth
• Loss in Investors’ Confidence
• Inflation
• Rising Commodities Prices
• Supply Chain in Disorder
• Disruption to Business Operations and Processes
• Loss of Investor Confidence
• Loss in Revenue and International Market Share
• Environmental Pollution
• Disruption to Lifestyle, Families and Living
• Negative Impact on Daily Supplies (Food, Water, etc)
• Psychological Trauma
OPPORTUNITY WITHIN A CRISIS
CRISIS
“Wei”
DANGER
“Ji”
OPPORTUNITY
In every crisis lies the seed of opportunity
INDUSTRY – ADEPT AT RIDING THE “SHOCKWAVES”
THREE CALLS OF ACTION
for greater resilience and faster recovery
City State
Business
CONFIDENCE RESTORATION
To reduce fears &
uncertainties
CONNECTIVITY ESTABLISHMENT
To communicate quickly
and effectively with
various stakeholders
COMMUNITY ENGAGEMENT
To play a part in
environmental & social
sustainability
Living
CLIENT S - SEEKING NEW ARRANGEMENTS
In the “New Normal”…
RISK
AVERSION
•
•
•
More rigorous in
crisis management /
business continuity
planning
Shortened booking
lead times for
events
Preference for
flexible payment
terms
SUSTAINABILITY FOCUS
FINANCIAL
PRUDENCE
•
More events moving
towards
environmentally
conscious
Tougher price
negotiations
•
Seek sustainability
within event budget
Increased emphasis
on ROI of events
•
Desire positive social
impact on economy,
communities, and
environment
•
Search for greater
value in products and
services
•
•
CENTRES – OPPORTUNITIES TO BECOME FUTURE-READY
1) Standards & Partnerships
for Operational &Service
Excellence
• Quality Management
System
• Safety & Operational
Management for Indoor
Operations
• Industry Partnerships to
Deliver Total Solutions
3) Virtual Platforms
& IT Enablers
• Wifi-enabled solutions
• Online virtual meetings and
conferences
• Harnessing New/Social Media
2) Business Continuity
Management (BCM)
• Singapore Standard for
building resilience and
capability for an effective
response to disruptions
• British Standard for
building a business management
system to minimize risk of
disruptions
4) Community Engagement
Platforms
• Incorporating CSR efforts into
business events & centres
• Create a positive social impact on
environment
ILLUSTRATION :
SINGAPORE EXPO CONVENTION & EXHIBITION CENTRE
SINGEX : CRITICAL INVESTMENTS
Service Excellence Value Chain
Operational Excellence Framework
Our Value Chain
Internal
External
• Global Standards Achievements
Touch Points
Partners
Staff
Organizers
• Concierge
• Security
• F&B
• Toilets
• Car Parking
• Media
• Phone Enquiries
• Thank You Note
• Facilities
• Business Centre
• Signage
Outcomes…
• Delighted clients and visitors
• Empowered staff
• Effective service delivery and management
Visitors
• Technology Supporting Clients’
Needs & Making Centres
Productive
iPad
• Cost Effectiveness
 Energy & Water Saving Initiatives
 Waste Recycling and Reduction
SINGEX : ANCILLARY SERVICES PARTNERSHIPS
Offering one-stop suite of solutions through partnerships…
DESTINATION
MANAGEMENT
COMPANIES
ATTRACTIONS
HOTELS
•
Housing Bureau
Management Services
•
Preferential
Accommodation Rates
•
Conference & Meeting
Management Services
•
Airport / Shuttle
Transfer
•
Destination Management
Services
•
Other Fill Benefits
•
Alternative Venue
Packages which
includes




Venue Rental
F&B
Entertainment
Performances
Thank You
The author has made his best effort to prepare this document. The content is based upon latest information whenever possible.
The author makes no representation or warranties of any kind with regard to the completeness or accuracy of the contents
herein and accept no liability of any kind including but not limited to performance, merchantability, fitness for any particular
purpose, or any losses or damages of any kind caused or alleged to be caused directly or indirectly from this document.
LATEST IMF AND S&P GDP GROWTH FORECAST
(Standard & Poor’s)