eibtm trends watch report 2016
TRANSCRIPT
Trends Watch Report 2016 Dr Rob Davidson, ibtm world Industry Analyst
Part of
Organised bySponsored by
IBTM, the ibtm events logo, RELX Group and the RE symbol are trade marks of RELX Intellectual Properties SA, used under license. Reed Exhibitions and Reed Travel Exhibitions are trade marks of RELX Group plc. Hosted Buyer is a trade mark of Reed
Exhibitions Limited.
© Copyright. This report is published by Reed Travel Exhibitions Limited. The copyright in the design and content of the Trends Watch Report is owned by Reed Travel Exhibitions Limited and its licensors. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form, by any
means – electronic, photocopying or otherwise – without the written permission of Reed Travel Exhibitions Limited.
2ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
INTRODUCTION
Inthecurrentmarketenvironment,uncertaintyiseverywhere:inunexpectedpollingresultsfromBrexittoTrump;inrisingprotectionistandpopulistsentiments;indisruptiveandfast-movingtechnologicaladvances;andinthegeopoliticalandsocialturmoilthatisthreateningtocreatefundamentalshiftsintheworldorder,tradeandinvestmentflows.
Today’smostformidablechallengefortheglobalmeetingsandeventsindustryistolearnhowtoadapttothisuncertaintyandhowtooperateeffectivelywithinthesenewandemergingelementsofthemarketenvironment.Understandingthetrendsinthemeetingsandeventsindustryiskeytoanticipatingtheopportunitiesandchallengesintheglobalmarketforourservicesandfacilities.Thisyear’sTrendsWatchreporthasbeenproducedtohelpyourecognisethoseopportunitiesandchallenges,byprovidingyouwithvaluablemarketintelligenceuponwhichtobaseyourcriticalbusinessdecisionsandtogaugeyourownperformance.
Ithasbeencompiledfromdatagleanedfromthegrowingnumberofsurveysandstudiesproducedbyourindustry’sprofessionalassociationsandrelatedsources,makingtheTrendsWatchreportthemostcomprehensiveannualsynthesisofthecurrentintelligencerelevanttothemeetingsandeventssector.
Ihopethatyoufinditinsightfulanduseful.
DrRobDavidsonIBTMIndustryAnalystManagingDirector,MICEKnowledgewww.miceknowledge.com
3ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
CONTENTS
THEGLOBALECONOMICSITUATIONIN2016.....................................................................4
CORPORATEMEETINGS–PERFORMANCEOFKEYMARKETSECTORS.................................5
Construction......................................................................................................................................5
Pharmaceuticals.................................................................................................................................6
InformationandCommunicationsTechnology..................................................................................6
Automotive........................................................................................................................................7
ASSOCIATIONCONFERENCES.............................................................................................9
INCENTIVETRAVEL..........................................................................................................11
REGIONALVARIATIONS...................................................................................................15
Europe..............................................................................................................................................15
NorthAmerica.................................................................................................................................17
AsiaPacific.......................................................................................................................................19
LatinAmerica...................................................................................................................................21
MiddleEast......................................................................................................................................21
Africa................................................................................................................................................22
OUTLOOKFOR2017........................................................................................................24
TheEconomicOutlook.....................................................................................................................24
TheOutlookfortheMeetingsandEventsIndustry.........................................................................25
CONCLUSION...................................................................................................................30
SOURCES.........................................................................................................................31
4ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
THEGLOBALECONOMICSITUATIONIN2016
Globaleconomicperformancehasbeenlacklustrein2016.Whileperformancevariesformajorglobaleconomies,weaker-than-expectedperformanceisamajorthemeforall.
TheInternationalMonetaryFundforecastisforglobalgrowthstandsat3.1percentforthisyearand3.4percentfor2017.Theforecast,whichwasreviseddownby0.1percentagepointfor2016and2017relativetothatofApril,reflectsamoresubduedoutlookforadvancedeconomiesfollowingtheUnitedKingdom’s(UK)voteinfavourofleavingtheEuropeanUnion(Brexit)andweaker-than-expectedgrowthintheUnitedStates(US).
ButtheInternationalMonetaryFund’sWorldEconomicOutlookindicatesthatprospectsdiffersharplyacrosscountriesandregions,withemergingAsiaingeneralandIndiainparticularshowingrobustgrowth,andsub-SaharanAfricaexperiencingasharpslowdown.Thelargesteconomiesinsub-SaharanAfrica(Nigeria,SouthAfrica,Angola)areexperiencingconsiderableslowdownsorrecessionsaslowercommoditypricesinteractwithdifficultdomesticpoliticalandeconomicconditions.BrazilandRussiacontinuetofacechallengingmacroeconomicconditions,buttheiroutlookhasstrengthenedsomewhatrelativetolastyear.
AlthoughfinancialmarketreactiontotheresultoftheUKreferendumappearstohavebeenlargelycontained,theincreaseineconomic,political,andinstitutionaluncertaintyandthelikelyreductionintradeandfinancialflowsbetweentheUKandtherestoftheEuropeanUnionoverthemediumtermisexpectedtohavenegativemacroeconomicconsequences,especiallyintheUKitself.Asaresult,the2016growthforecastforadvancedeconomieshasbeenmarkeddown,bytheIMF,to1.6percent.
Growthinemergingmarketanddevelopingeconomiesisexpectedtostrengthenslightlyin2016to4.2percentafterfiveconsecutiveyearsofdecline,accountingforoverthree-quartersofprojectedworldgrowththisyear.However,theoutlookfortheseeconomiesisunevenandgenerallyweakerthaninthepast.
5ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
CORPORATEMEETINGS–PERFORMANCEOFKEYMARKETSECTORS
Ourindustryderivesasignificantproportionofitscorporatebusinessfromasmallnumberofkeymarketsectorsthat,betweenthem,createasubstantialsourceofdemandformeetingsvenuesandalloftheotherfacilitiesandservicesthatconstitutethesupplysideofthemeetingsandeventsindustry.Consequently,ourannualperformanceisheavilydependentuponhowthesekeymarketsectorsthemselvesperformovertheyear.Howhavetheyfaredin2016?
CONSTRUCTION
Fromaworldwideperspective,thereisastrongprobabilitythatcontinuingglobaleconomicinstabilitywilldriveconstructionsectorrevenuesdownin2016comparedtotheyearbefore,stallingtherecoverythatfollowedthepreviouscollapseinspendinginthesectorduringthe2008-09financialcrisis.That’stheanalysisgivenbyPwCStrategy&initsEngineeringandConstructionIndustryTrendsreport.Butthesamesource–andseveralothers–alsosuggeststhatthisoverallsituationdoesnotmeantosaythattherearenobrightspotsforconstructioncompanies.Forexample,intheUS,constructionstartswereupabout15percentin2015andareforecasttoadvanceanother6percentthisyear.Also,infrastructurespendinghasbeenneglectedsincethe2008recessionandsomeanalystsbelievethatworldwideannualinfrastructurespendingwillgrowtomorethanUS$9trillionperyearby2025,fromalittleoverUS$4trillionnow—thatis,ifthepoliticalwillcanbemusteredtosupportmuch-neededimprovements.
ThisoptimismisalsoreflectedinLucintel’sreport,GrowthOpportunitiesintheGlobalConstructionIndustry2016-2021,whichforecaststhattheglobalconstructionindustrywillgrowataCAGR(CompoundAnnualGrowthRate)of5.5percentfrom2016to2021.Themajordriversofgrowthforthismarketaretheincreasingrateofurbanisationandrisingpopulationnumbers.Ofthethreetypesofconstructionprojectsidentified-residential,commercial,andinfrastructure-thereportforecaststhatinfrastructurewillremainthelargestsegmentduringtheforecastperiod.IncreasingrateofurbanisationinemergingeconomiessuchasChinaandIndiaanddevelopmentofnewcitiesarethemajordriversforthegrowthininfrastructuresegment.AsiaPacificandNorthAmericaareexpectedtowitnessgoodgrowthovertheforecastperiodwithgrowinghousingstartsandinfrastructuraldevelopment.However,theAsia-Pacificconstructionmarketisexpectedtoremainthelargestmarketduetorapidgrowthinrisingpercapitaincomealongwithincreasingurbanisationintheregion.
KPMG’sreport,10emergingtrendsin2016,notesthatoverthepastyear,itisbecomingincreasinglyclearthatChinaandIndiaaresuccessfullymakingtheleapfrom‘emerging’constructionmarketsto‘developed’constructionmarkets.Chinaisshowingsignsofopeningitsdomesticinfrastructuremarkettointernationalinvestorsandhaspublishedapipelineofmorethan2,000public-privatepartnership(PPP)projects.Andinternationally,Chinaisshiftingfrombilateral(government-to-government)dealstocompetinginopenmarkettendersinstead.India,followingtheelectionofModi,isalsobecomingaforcetobereckonedwithintheglobalinfrastructuremarket.India’songoingprogramofurbanrenewal,energyandtransportdevelopmentwillhelpmakethatcountrytheworld’sthird-largestconstructionmarketby2018,justbehindtheUS(second)andChina(first).
6ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
YetwhileIndiaisthefastestgrowinglargeeconomyintheworld,itisalso142ndintermsof‘easeofdoingbusiness’.Positivechangeinthismeasurewouldbetransformative,particularlybecause,by2025,aquarteroftheworld’sworkingagepopulationwillbelocatedinIndiaandthisworkforceiswelleducated,multilingual,highlyskilledandlowercost.
PHARMACEUTICALS
AsnapshotofthepharmaceuticalmarketisgiveninthelatestKablePharmaceuticalIndustryBusinessConfidenceReport,whichstatesthattheexistingeconomicenvironmentisstableforthepharmaceuticalindustry,andthatcustomerconfidencelevelswillremainconstantthroughoutthesecondhalfof2016.PharmaceuticalcompaniesareslightlyoptimisticabouteconomicconditionsinNorthAmericaandtheAsia-PacificduetopositivemomentumintheUS,firmdomesticdemand,andstronggovernmentexpenditureinIndia.Accordingtothesamesource,thepharmaceuticalindustrywillrecordhigherexpendituretowardsnewproductdevelopmentandmergersandacquisitionsinthelatterhalfof2016ascomparedtothefirstsixmonthsoftheyear.
AccordingtoMarketDataForecast’sanalysisofthepharmaceuticalexcipientsmarket,theglobalpharmaceuticalexcipientsmarketisestimatedtobegrowingataCAGRof6.1percent,toreachUS$7.64billionby2020.Themajordrivingforcesofthismarketare:increasingincidencesofchronicdiseasesowingtosedentarylifestyles;substantialinvestmentsbythepharmaceuticalcompaniesindevelopmentofmedicines;andtheimplementationofnewtechniquessuchasnanotechnology.However,themajorchallengescurrentlyfacedbythepharmaceuticalindustryare:decreasingtheside-effectsofdrugs;anddevelopingenvironmental-friendlymanufacturingprocesses.
Ever-increasingdemandintheemergingmarketssuchasAsia-PacificandLatinAmericaisprovingtobealucrativeopportunityforthepharmaceuticalmarketplayers,onconditionthattheycanplansuitableexpansionstrategiesandintroducenewandinnovativeproducts.Nevertheless,oneshouldkeepinmindthatthegrowthofthismarketisrestrainedtoacertaindegreebytwofactors:thefactthatinvestmentsinResearch&Developmentbymajorcompaniesarenotuptotheessentiallevel;andincreasingregulatoryrequirements,whicharemakingitprogressivelydifficulttogetnewmanufacturingfacilitiesapproved.
INFORMATIONANDCOMMUNICATIONSTECHNOLOGY
Worldwidespendingoninformationandcommunicationstechnology(ICT)isforecasttobeflatin2016,totalingUS$3.41trillion,accordingtoGartner’sITSpendingOutlook.NewoptionsaredisruptingestablishedICTmarkets,asanewrangeofalternativestotraditionalICTproductsisfundamentallyreshapingwhatisbought,whobuysitandhowmuchisspent.
AccordingtoGartner,2016istheyearthatbusinessfocusturnstodigitalbusiness,theInternetofThingsandevenalgorithmicbusiness.Tofundthesenewinitiatives,manybusinessesareturningtocostoptimisationeffortscenteringaroundthenewdigitalalternatives.Forexample,SaaS(softwareasaservice)insteadofsoftwarelicensesandVoLTE(voiceoverLTE)insteadofcellular,inordertosavemoneyandsimplifyoperations.Table1givesdetailsoftheareasofgrowthandareasofshrinkinginworldwideITspendingforthisyearandlastyear.
7ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TABLE1:WorldwideITSpendingForecast(MillionsofU.S.Dollars)
2015Spending(million)
2015Growth(%)
2016Spending(million)
2016Growth(%)
DataCenterSystems 171 2.9 175 2.0Software 314 1.1 332 5.8Devices 662 -4.6 627 -5.3ITServices 866 -3.4 898 3.7CommunicationsServices 1,400 -9.2 1,381 -1.4OverallIT 3,413 -5.5 3,412 0.0Source:Gartner-ITSpending,Worldwide,2Q16Update
ThelacklustreeconomicissuessurroundingRussia,JapanandBrazilhasalsoheldbackdemandandtheworldwidepersonalcomputer(PC)recoveryin2016.Additionally,Windows10upgradeshavefurtherledtoPCbuyingbeingdelayed—consumersarewillingtouseolderPCslonger,oncetheyareupgradedtoWindows10.
AUTOMOTIVE
Overall,theglobalmarketforautomotiveproductshasbeenfavourablein2016.
AccordingtoPwCStrategy&’sAutoIndustryTrendsreport,USmarketsarepeakingathistoriclevels,aftersettingasalesrecordofjustunder17.5millionvehiclesin2015,up5.7percentfromtheyearbeforeandtoppingthehigh-watermarkof17,402,486in2000.ButthesamesourcepredictsthatUSsalesarelikelytoberelativelyflatinthenexttwoyearsandmayfaceamoderatedownturnin2018,thevictimofeconomiccycles,higherautoloaninterestratesastheFederalReserveraisesovernightrates,andanexpectedfloodofvehiclesintotheusedcarmarket.
WithintheEuropeanUnionnations,automotivesaleshaveimprovedsincethefinancialdownturn.In2015,newcarregistrationsintheEUrose9.3percentyear-on-year,to12.6millionunits.Butthatisstillwellbelowtherecordyearof2007,whenmorethan18millionvehiclesweresoldintheregion.TheupwardtrendisalsoindicatedbydatafromtheACEA(EuropeanAutomobileManufacturersAssociation),whichshowthatoverthefirstninemonthsof2016,theEuropeanpassengercarmarketgrewby8.0percent,reaching11,243,263units.Theoverallincreasethroughthefirstthree-quartersoftheyearshowedthemarket’songoingrecoverywithallofthebigfivemarketspostingsolidgrowthrates.Italy(+17.4percent)andSpain(+11.5percent)recordeddouble-digitgrowthovertheperiod,followedbyGermany(+6.1percent),France(+5.7percent)andtheUK(+2.6percent).
Butperhapsthebiggestdownwardmacroeconomicforceintheautomotiveindustrytodayistheunderperformanceofemergingmarkets,whichnottoolongagorepresentedasignificantopportunityformajorgainsintheglobalautosector.PwCStrategy&’sAutoIndustryTrendsreportshowsthatIndia’ssalesremainedroughlyflatin2015,year-over-yeargrowthinChina,theworld’slargestautomarket,slowedto7.3percentfroma10percentgainin2014and16percentgainin2013.NewvehicleownershiprestrictionsinChina’slargestcitiesareexpectedtofurthercurtailsales
8ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
inthecomingyears.Russiahaditssecondstraightyearofprecipitousdecline;saleswerealmost50percentbelowthe2012peak.AndBrazil’ssalesfellbynearly1.3millionunits,or30percent,fromitsrecordhighin2012,adropthatwaslargerthantheentireMexicancarmarket.
Overthenextfiveyears,theMiddleEastandAfrica(ME&A),alaggard,relativelyun-motorisedregion,willlikelyseestrongandconsistentautomobilesalesgrowth;thebiggestimprovementsareexpectedinIran,Egypt,SouthAfrica,andNigeria.Alongwiththisgrowth,automakerfactoryactivityintheregionwillincreasesignificantly.By2021,nearly3millioncarswillbebuiltyearlyintheME&A,anoutputincreaseofabout50percent,accordingtoPwCAutofacts®.
OtheremergingmarketsarehighlightedinKPMG’sGlobalAutomotiveExecutiveSurvey,whichnotesthatwhilegrowthinthepastfewyearshasbeenpredominantlyintheBRICnations,theglobalautomotivemarketisstillfarfrombeingsaturated,andanewwaveofgrowthisexpectedinthecomingyears.TheautomotiveindustryexecutivessurveyedexpressedtheviewthatthesecountrieswillbemainlylocatedinSouth-EastAsia,withThailandandIndonesiabeingofparticularimportance.SouthAfrica,TurkeyandArgentinaalsoappearintheexecutives’top5emergingmarketsfortheautomotiveindustry.
MarkCooper-CEOofIACC(InternationalAssociationofConferenceCentres)
“WhatclearlyemergedfromapaneldiscussionofvenueoperatorsattheIACC-EuropeKnowledgeFestivalattheendofSeptemberwasthatitisstillprettytoughoutthereformanyofourmembers,butmaybemoresoforthosewhohavevenuesincitiesthathavesufferedterroristattacksoflate.Ontheoppositesideofthecoin,thoseIACCmembersincitiesthatarenotaffectedinthatwayareseeingincreaseddemandfortheirvenues.OurCentralEuropeanmembersarestillhavingtotakerathermoretransient/leisurebusinessthantheywouldlike,asthevolumeofthemeetingsbusinessisstilllow,eventhoughratesformeetingsbookingsaresatisfactory.
Therearemanypressureswhichstillexist,includingtheneedtoinvestandprovidemorestimulatingmeetingenvironments,whichisachallengeforvenueswhichfindthemselvesservicingtoomuchlow-margintransientbusiness.Citycentrevenuesareincreasinglypopularwhichmeansifyouarearesidentialproperty,youmaybelosingouttosomemeetingsplannerswhochoosetostayinacentrallocationratherthantraveltoaruralvenue.Neverthelessitisencouragingthatweareseeinggrowingnumbersofourmembersinvestingintheirfacilitiesandalsoattendingourconferencesinordertoinvestintheirownskillsandknowledge.”
9ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
ASSOCIATIONCONFERENCES
Bywayofcontrastwiththe,attimes,volatilecorporatemeetingsmarket,associationconferencescontinuetorepresentamorestableandconsistentsegmentofthemeetingsmarketandasourceofconsiderableeconomicbenefitsforthedestinationsandvenuesthathostthem.
Moreover,thegrowthinthenumberofassociations–inparticularinternationalassociations–continues,year-on-year.The53rdeditionoftheUnionofInternationalAssociations(UIA)YearbookofInternationalOrganisationsincludes68,576internationalassociations,547morethanthe52ndedition.The1909editionoftheYearbookincluded213organisations.
Thechoiceoftheappropriatedestinationsfortheconferencesofinternationalassociationsisamajorfactorindeterminingthesuccessofsuchevents.Table2showsthemostrecentfiguresindicatingthecountriesandcitiesselectedasdestinationsforinternationalassociationconferences.
TABLE2:Destinationsforinternationalassociationconferences
RANK CITY NUMBEROFMEETINGS
RANK COUNTRY NUMBEROFMEETINGS
1 Berlin 195 1 USA 9252 Paris 186 2 Germany 6673 Barcelona 180 3 UK 5824 Vienna 178 4 Spain 5725= London 171 5 France 5225= Madrid 171 6 Italy 5047 Singapore 156 7 Japan 3558 Istanbul 148 8= China 3339 Lisbon 145 8= Netherlands 33310 Copenhagen 138 10 Canada 30811 Prague 123 11 Brazil 29212 Amsterdam 120 12 Portugal 27813= Brussels 117 13 S.Korea 26713= Seoul 117 14 Austria 25815 HongKong 112 15 Australia 24716 Bangkok 103 16= Belgium 21617 Rome 99 16= Sweden 21618 Dublin 97 18 Turkey 21119= Beijing 95 19 Denmark 20419= Budapest 95 20 Switzerland 194Source:ICCAStatisticsReport
ThedominanceofEuropeancountriesandcities(highlighted)isclear.15ofthetop-ranked20citieswereEuropean,thesamenumberasthepreviousyear.And13ofthetop-ranked20countriesareEuropean,onemorethanthepreviousyear.
10ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
Intermsofthevenuesthatbenefitfromthehostingofthemostsizeableconferencesintheassociationmarket,manyofthelargestaremembersoftheAIPC(InternationalAssociationofConventionCentres).Thatorganisation’smostrecentMemberSurveyReportindicatesthat‘Associationconferencesandmeetings’and‘Associationconventionswithexhibits’aretwoofthethreestrongestclientsegmentsforAIPCvenues.AssociationconventionsareparticularlystronginAsiaandNorthAmerica,ranked92percentand75percentrespectivelyasthesegmentswiththebestcurrentgrowthornear-termprospects.
ThebuoyancythathascharacterisedtheassociationconferencemarketoverthepastfewyearshasnodoubtcontributedtothesuccessfulperformanceofmanyAIPCmembervenues.TheMemberSurveyReportindicatesthatatotalof72percentofmemberssaytheyareexperiencingeitherstrongormoderateeconomicgrowthintheirregion.Thisyear21percentofmemberssayeconomicgrowthisstrongcomparedto13percentin2015.
AIPCmemberscollectivelyexperiencedstrongrevenuegrowthof8percentin2015,thefastestgrowthevertrackedbythissurvey,whichwasfirstconductedin2010.However,thegrowthrateexpectedfor2016onaverageworldwideisamoresubdued4.2percent.
AttendancegrowthfortheeventshostedbyAIPCmembersworldwidewashealthyin2015at4.9percent,whichwasthefastestattendancegrowthsince2011.AIPCmembersareforecasting4percentoverallexpansioninattendancethisyear.
GeoffDonaghy–PresidentofAIPC(InternationalAssociationofConventionCentres)
“Thebigandlargelyconsistentissuesfacingcentremanagerstodayarecompetition,adaptation,revenueenhancementanddemonstratingrelevancetoownersandcommunities.Competitionandrevenuechallengesareclearlycloselylinked,andrequireinnovativeapproachestobusinessdevelopmentandproductdifferentiation.Atthesametime,adaptationhasbecomeanimportantpreoccupationwithrapidlychangingeventformats,technologiesanddelegatesdemandscreatingarangeofnewexpectationsamongstclients.Finally,withindustryeconomicsbecomingmorechallengingduetoheavycompetitionandnewexpectationsforconcessionsinmanyareas,theimportanceofbeingabletodemonstrateabroadervaluepropositionisbecomingincreasinglyimportantformanycentres.”
11ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
INCENTIVETRAVEL
OneofthemostauthoritativeannualsurveysoftheincentivetravelmarketisthatconductedjointlybyMeetingsNetandtheIncentiveResearchFoundation(IRF).MostoftheplannerssurveyedareNorth-Americabased,butgiventheinternationalimportanceofthatmarket,thesurvey’sfindingsareofinteresttosuppliersworldwide.
Thisyear’ssurveypointstoacontinuingrallyindemandforincentivetravel,asitindicatesthatbudgetsareexpandingandincentiveprogrammesaregrowing,buildingontheturnaroundinthemarketseenin2015.
Thatresurgenceofspendingonincentivetravelwasalongtimecoming.In2008,theMeetingsNet/IRFsurveymarkedtheaverageper-personspendingonincentivetravelprogrammesatUS$3,659,butitwasalldownhillfromthere.Forsevenyears,spendingtookasteadydive,hittingalowofUS$2,397in2014.Finally,lastyear,thingsstartedtochangeinapositivedirection,withrisingbudgetsandrisingper-personspendingonincentivetrips.Thisyeartherecoverycontinues,withrespondents’2016averageper-personincentivespendingatUS$3,165.Thisrepresentsthelargestyear-over-yearjumpsincetherecession,anaverageincentivebudgetchangein2016of+2.69percent.Table3chartsthelongroadtorecoveryinthismarket.
TABLE3:Averageper-personincentivespending2008-2016
Source:TheMeetingsNet/IRF2016incentivetravelsurvey
Incentivebudgetsoverall,havealsoincreased,withmostplannersreporting2016budgetsthatarestableorthathavegrownover2015.Butthemoodisnotquiteasupbeatasitwaslastyearwhenalmost54percentofplannerssawincreasesintheirbudgets(andhalfthoseincreasesweremorethan10percent).For2016,plannerswhosebudgetsareup(about38percentofrespondents)aretypicallyworkingwithslightormoderateincreases,asindicatedinTable4.
12ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TABLE4:Changein2016incentivebudgets
Source:TheMeetingsNet/IRF2016incentivetravelsurvey
Itisinterestingtonotehowplannersusetheextraresourceswhentheirincentivetravelbudgetsgrow.Table5offersusefulinsightsintohowplannersspend–orsave–moneyastheyadapttochangesintheirbudgets.
TABLE5:Incentivetravelplanners’strategiesfordealingwithbudgetchanges
WHENBUDGETSINCREASE WHENBUDGETSARECUT1.AddWOWelements2.Chooseamoredeluxeproperty3.IncreasetheF&Bbudget4.Acceptmorequalifiers5.Addmoreoff-siteevents6.DevelopanApp7.Includeon-sitemerchandise
1.Shortenthetrip(55percent)2.Bookshoulderoroff-season3.Havefewerqualifiersattend4.Avoidfive-starproperties5.CuttheF&Bbudget(withoutcuttingmealfunctions)6.Usesecond-tiercities/avoid“glamour”destinations7.Offerfewermealfunctions
Source:TheMeetingsNet/IRF2016incentivetravelsurvey
13ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
Thisyear’sMeetingsNet/IRF2016incentivetravelsurveyprovidesuswithusefuldataonthetrendsconcerningthemostpopulardestinationsforsuchevents.Itisnotsurprisingthatdomestic(US)destinationsremainthemostcommonchoices,andwillbeusedbyalmosteightoutof10incentiveplannersthisyear.ButtherichculturalexperiencesofferedinAsiaandAfrica,coupledwithincreasingbudgetsforlonger-haulflights,meanthatplannersnowhavemoreoptionstoofferdemandingattendeeslookingforauthenticanduniqueexperiences.
Inresponsetothequestion,‘Wherewillyoutakeyourincentivesin2016’?plannersidentifiedtherangeofdestinationsshowninTable6.Respondentscouldchoosemultipledestinations.
TABLE6:Incentivetraveldestinationsin2016
Ranking Destination Mentionedbyrespondents
Changefrom2015survey
1 US 78.6% 0.5%↓2 Caribbean 47.8% 9%↓3 Mexico 47.3% 3.7%↑4 Europe 40.7% 2%↓5 Canada 25.3% 2.9%↓6 Asia 19.8% 9.8%↑7 CentralAmerica 16.5% 8%↓8 SouthAmerica 13.7% 1.8%↑9 Africa 11.5% 5.1%↑10 MiddleEast 6.6% 3%↑
Source:TheMeetingsNet/IRF2016incentivetravelsurvey
Intermsofindividualcountrydestinations,itissignificantthatwithitsongoingrapprochementwiththeUSgovernment,Cubaleadsthelistofemergingdestinationsthathaverespondents’attentioninthisyear’ssurvey.Itmovedupfromthirdplaceonlastyear’slist,followedby(inorder)Panama,CostaRica,ColombiaandIceland.
Anadditionalperspectiveonmost-favouredincentivetraveldestinationsisprovidedbythisyear’sAdvitoIndustryForecast,whichliststhemostpopulardestinationsforAsia-basedcompanies’incentivesasfollows.ForIndia-basedcompanies:EuropeorDubai.ForSingapore-basedcompanies:Europe.ForAustralia-basedcompanies:PacificislandssuchasTahiti,Samoa,FijiandtheCookIslands-andgrowinginterestintheUS,thankstoincreasedflights.
Finally,arecentdevelopmentthatstandstohaveapotentiallynegativeimpactuponpartoftheall-importantUSincentivemarketisworthyofnotehere:thefiduciaryrule,which,itisbelieved,couldaffectthemarketforincentivetravelclientsinthefinancialservicessector.
ItistheviewofUSregulatorsthatincentivesareundulyinfluencingtherecommendationsmadebyfinancialadviserstotheirclientswhensellingthemretirementproducts.Asaresult,theUSDepartmentofLaborhasissuedarulingthatrequiressuchfinancialadviserstoactintheirclients’bestinterest(thatis,asfiduciaries-Afiduciaryisrequiredtoputaclient’sinterestfirst,toavoidconflictsofinterest,andtodiscloseanypotentialconflictsofinterest)whenofferingthem
14ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
investmentadvice,todiscloseanyconflictsofinterest,andtobecompletelytransparentabouthowtheyarecompensated.
AccordingtotheUSDepartmentofLabor,advisersmustbeginactingasfiduciariesinApril2017(oneyearfromthereleaseoftherule),whilefullcorporatecomplianceisrequiredbyJanuary2018.Soitisstilltooearlytotellhowthisrulingwillaffecttheuseofincentivetravelbyfinancialservicescompanies,buttherehasbeensomespeculationthat,forthesakeofcompliance,somecompaniesmayeliminatesomeincentiveconferencesaltogether,offerfewerincentiveevents,oroffersmallerincentiveevents?
Therehasbeenanupbeatresponsefromtheincentivetravelandconferenceindustry,withleadersfromorganisationsincludingtheFinancial&InsuranceConferencePlannersandSITE(theSocietyforIncentiveTravelExcellence)suggestingthatweusethereleaseofthisnewruleasarallyingcryfortheindustrytocometogetherandmakethecasemorestronglyfortheintrinsicvalueofbusinesseventssuchasincentivetripsandconferences.Thisdevelopmenthasbeenportrayedasanopportunityforcorporateincentiveandmeetingsplannerstogetinvolvedinconversationswithintheircompanies,aboutthestrategicimportanceoftheeventstheyorganise.
KevinM.Hinton-ChiefExcellenceOfficerofSITE(SocietyforIncentiveTravelExcellence)
“While2016hasbeenayearofuniquegeo-politicaleventsinvariouscountriesthathavedirectlyimpactedincentivetravel,ourbusinessremainsstrongandgrowing.AccordingtotherecentSITEIndexof599respondentsin62countries,60%ofbuyersplantoincreaseincentiveeligibilityinthenext12months;49%ofbuyersplantoincreaseincentivetravelbudgets.Airlinecosts,safetyandsecurityandpotentialthreatsposedbyterrorismtopthelistofthingsthathavethemostdirectnegativeeffectonincentivetravel.SITE’soverallmembershipisstableinEuropewith500membersandglobalmembershipisup7%from2015.Weareplanningtoconductincentivetravelspendstudiesin4countriesinEuropein2017tobettersupportthesector.”
15ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
REGIONALVARIATIONS
Regionalvariationsinthedevelopmentoftheglobaleconomyaretosomeextentreflectedinthisyear’sperformanceofthemeetingsandeventsindustryalongbroadgeographicalzones.Thissectionanalysestheregionaltrendsthatemergedin2016.
EUROPE
TheAdvitoIndustryForecastconfirmsthatEuropeandemandformeetingsandeventshasgrownin2016,notingthatonedevelopmentofparticularnoteistheboomin‘kick-offmeetings’,suchasthemeetingsheldatthebeginningofafinancialyearortoinspireemployees.Advitoalsoconfirmsthatdemandforincentivetravelisexperiencingarevival.
However,thereportdrawsourattentiontothefactthatalthoughthenumberofEuropeanmeetingsisup,companiesarebeingverycarefulabouthowmuchtheyspend.Theyareshorteningtraveltimes-whichusuallyrulesouttripsbeyondEurope-androllingmultiplemeetingsintoasingleevent.Intermsofvenuesformeetingsandevents,supplyisnotkeepingpacewithdemand.Therehasbeenlittlenewcapacity,andwithmanyclientsstillbookingatshortnotice,theyareincreasinglyfailingtofindspacewhereandwhentheywant.Thisisespeciallytrueforlargerevents.
Onthesellers’side,limitedavailabilityalsomeansthatvenuesareincreasinglypressingclientstoconfirmbookingsquickly,becausetheyareconfidentofsellingthespace.Clientsabletoconfirmquicklyarewell-placedtonegotiatebettertermsandconditionsplusextrassuchasrefreshments.
TheAdvitoIndustryForecastalsonotesthatterrorincidentsoverthelastyearinParis,Brussels,Istanbul,MunichandNicehavepushedsecuritytothetopofmeetingplanners’agendas.Manyplaceitaheadofcost,accessibilityandqualityofvenuesintheirselectionprocess.Nevertheless,theFrenchandBelgiancapitalsarestillhighlypopularforconferences,remaininginCvent’slistofEurope’stoptenmeetingdestinations,accordingtoConference&IncentiveTravel,17/05/16.
ThesuccessofEuropeasawhole,asadestinationfortheconferencesofinternationalassociations,wasnotedearlierinthisreport,withreferencetothiscontinent’sdominanceofthelistoftopdestinationsasshowninthemostrecentICCAStatisticsReport.
UnionofInternationalAssociations(UIA)usesadifferentmethodologytocollectitsdataonconferencedestinations,butTable7showsthat,onceagain,Europeancountriesaccountformorethanhalfofthetenmostpopulardestinationsforinternationalassociationmeetings.Betweenthem,thesetencountrieshostedhalfofalltheworld’sinternationalassociationmeetingsin2015.
16ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
MartinSirk-CEOofICCA(InternationalCongressandConventionAssociation)
“Ourexpectationisthat2016willbeanotherstrongyearfortheinternationalassociationmeetingssector,ICCA'sareaofspecialisation,reflectedinourassociation'scontinuingmembershipgrowth(wenowhaveover1,050membercompaniesandorganisationsfrom95countries,alltargetingthissectorofthemarket).Wearenowtrackingover20,000regularlyoccurringassociationmeetingsthatrotatebetweenatleastthreecountries,andthelong-termgrowthtrendsareshowingnosignsofending,asnewscientificfields,technicalinnovation,andregionalgrowthinestablishedtopicscontinuetodriveneweventcreation.Therewereshort-termimpactsonBrusselsandPariscausedbyterrorattacks,andlonger-termbusinessdisruptioninTurkey,butassociationmeetingsremainfarmorestableandresilientthanthecorporatemeetingssector.OneworryingtrendICCAhasnotedisanexponentialgrowthin"fake"or"sub-standard"meetings,designedtomimiclegitimate,establishedassociationmeetings,whichrangefromlegalbutunethicalthroughtoentirelyfraudulentactivity.Thesepresentarealrisktothereputationofourindustryasadriverofsocietalandeconomicprogress,andshouldstimulateusalltothinkmoreseriouslyaboutqualityassuranceandROIissues.”
17ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TABLE7:Thetenmostpopulardestinationsforinternationalassociationmeetings
RANK Country Percentage1 USA 8.12 S.Korea 7.23 Belgium 6.74 Singapore 5.95 France 4.56 Germany 4.07 Japan 4.08 Spain 3.89 Italy 3.510 UK 3.2Source:UIAInternationalMeetingsStatisticsReport,57thedition
TheoutstandingperformanceofoneEuropeancountryinparticularisworthyofnote.GermanyissecondonlytotheUSintheICCAlistoftopdestinationcountries,andBerlinisinfirstplaceintheICCAlistoftopdestinationcities.IntheUIAlist,GermanyisthethirdmostsuccessfulEuropeandestination.
AccordingtotheMeeting-&EventBarometer,theGermanmeetingsindustryisstillgrowingwithatotalof393millionparticipantsattendingeventsheldinthecountrylastyear–anincreaseof2.6percentfromthepreviousyear.Germany’spopularityasameetingandeventsdestinationisincreasing,particularlyonaninternationallevel.Thenumberofinternationalvisitorsrosesignificantlylastyearby8.3percentto27.7millionandthenumberofinternationalvisitorstravellingtoeventshasalmostdoubledintenyears(in2006,therewere14.3million).
Onthesupplyside,Germany’smeetingsindustrybenefitsfromasteadystreamofnewvenues.Forexample,MarriottInternationalopeneditsMarriottBonnWorldConferenceHotelinMay.LocatedonthebanksoftheRhineRiver,the17floor,336roomhotelisoneofthelargestinGermany,witharoomcountthatincludes30suitesandtwopresidentialsuites.Thehotelhasover7,100squarefeetofconferenceandbanquetspace,includingthreeprivatediningareasonthetopfloorofthehotel.
ButotherEuropeancountriesarenotstandingstill,andnewinfrastructuralprojectsareconstantlybeingaddedtoboostthesupplyofmeetingsvenues.Forexample,Rome’slatestconventioncentreopenedinautumn2016,locatedinEUR,ahistoricdistrictoftheItaliancapital.NewconventionbureausarealsobeingcreatedinEuropeancountries,oneexampleofwhichistheLublin&RegionConventionBureau,createdthisyearinordertopromotethatareaofEasternPoland.
NORTHAMERICA
TheUSeconomicrecovery—astoryofslowandsteadygains—continuestobereflectedinthatcountry’smeetingsindustry.Therobusteconomyhascreatedincreaseddemandforhotelroomsandmeetingspace.Thisfactor,coupledwiththetighteravailabilityofaccommodationforsuchevents,hascreatedasellers’marketinthisregion,withratesgoingupandplannersfindingthemselvesinaweakernegotiatingposition.
18ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TheGBTA/CWTGlobalTravelPriceOutlookconfirmsthatinNorthAmericameetingdemandcontinuestoclimboverall,andtherehavebeenstronger-than-expectedgroupsizeincreasesin2016(+10percent,year-on-year).AccordingtothelatestPCMAMeetingsMarketSurvey,attendeeandexhibitornumbers(theleadingeconomicindicatorsthatmeetingprofessionalsusetoassessthestateoftheirevents)haveincreasedyearoveryear,andtheyexpectthatgrowthwillcontinuethroughout2016.Withdemandsobuoyant,andsupplyhasbeenstrugglingtokeepupwithsuchlevelsofbusiness.TheAdvitoIndustryOutlooknotesthatmostrecenthotelconstructionintheUShasbeeninlower-tiercategories,whichareaimedattransientbusinessandleisuretravellers.Onaverage,hotelsbuiltoverthepastsixyearshave24percentlessmeetingspacethanthosebuiltbetween2000and2009.Giventhismis-matchbetweensupplyanddemand,priceriseswereinevitable.TheAdvitoIndustryForecastestimatesthatUShotelmeetingsrateshaverisenbybetween3and6percentin2016.
Onthesupplyside,theMPIMeetingsOutlookSummerEditionnotesthatthesellers’marketischanginginNorthAmerica,withhotelsandvenuesgettingcleareronthesectorsofclientswithwhomtheywanttodobusinessandmorepreciselytargetingtheirmarketingtoreflectthis.Sometimes,propertiesareturningawaybookingsfromclientelewhonolongerfittheirbusinessmodelwell.Hotelsandvenuesbecomingmoresophisticatedintheirtargetmarketdefinitionanddoingabetterjoboftrackingtheirtargetmarketcustomersandacceptingthetypesofbusinessforwhichtheyarebestsuited.Theyareeventurningawaycustomerswithwhomtheyusedtoworkinfavourofcustomersforwhomtheycandoabetterjoborpossiblyenjoyahigheryield.TheauthorsoftheMPIMeetingsOutlookSummerEditionbelievethatthisbodesverywellforthemeetingsindustrylongtermbecausethehotelsandvenuesaretakingtimetobetterdefineandunderstandwhomtheywanttoworkwithandbetterunderstandwhomtheyservethebest.
Onthedemandside,currentmarketconditionsareleadingtofrustratingsituationsforplanners.Ontheonehand,manyoftheorganisationstheyworkforareaskingthemtocutbackonmeetingsexpenses.ThePCMAMeetingsMarketSurveyfoundthat60percentofplannerssaythattheyhavebeenaskedtofocusonreducingF&Bexpenses.Ontheotherhand,asshownintheMPIMeetingsOutlookSummerEdition,insomecasesplannersarehavingtoworkparticularlyhardtoshowvenuesthevalueoftheirmeeting,inordertobeconsideredforspace.Facedwithsuchchallenges,plannersareadoptinganumberofstrategies,includingbookingrepeatprogrammes,consideringsecond-tiercities,orchangingthepatternofaneventtotimesthatareinlessdemand.Forinstance,aneventtraditionallyheldMondaythroughThursdaymightbeheldfromSaturdaytoTuesdayinstead.
Atthesametime,budgetsappeartoberising–althoughmanyplannerswouldarguethattheincreasesareinsufficienttoenablethentomeettheirleaders’andorganisations’growingexpectationsofwhattheywantintermsofeventexecution.Table8indicatesUSmeetingplanners’expectationofhowtheirbudgetsandspendingwillchangeintheyearahead.
19ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TABLE8:ProjectedBudget/SpendOverNextYear
FAVOURABLEbudget/spend 54%FLATbudget/spend 29%NEGATIVEbudget/spend 18%Source:MPIMeetingsOutlookSummerEdition
ThereisgrowingevidencethatsomeofthoseNorthAmericanmeetingsplannerswithincreasedbudgetsareincreasinglyholdingtheireventsoutsidetheUS,inordertogrowgloballyandattractmoreinternationalattendees.InthelatestPCMAMeetingsMarketSurvey,50percentofrespondents(upfrom47percentinthe2014surveyand42percentinthe2013survey)reportedthattheywillbeholdingmeetingsoutsidetheUSinthefuture.Ofthosewhoholdmeetingsininternationaldestinations,54percent(comparedto44percentinthe2014survey)reportthattheirattendeesparticipateinpre-and/orpost-tripsabroad.
Ontheinfrastructurefront,theUSmeetingsindustryisbenefitingfromanumberofrenovationsandexpansionstoexistingconventioncentres.Forexample,theNewYorkGovernorAndrewCuomoannouncedamajorUS$1billionexpansionoftheJavitsCenterinManhattan,NewYork,withconstructionexpectedtobegininlate2016.TheproposalwillprovideJavitswithanadditional1.2millionsquarefeetofeventspace,includinga60,000squarefootballroom,whichwillbethelargestsuchspaceintheNortheast.TowardsthewestoftheUS,Nevada’sGeneralAssemblyapprovedabillthatsupportsaprojecttoexpandtheLasVegasConventionCenter.Theprojectwilladd600,000squarefeetofnewmeetingspacetothatvenue.AccordingtotheLasVegasConventionandVisitorsAuthority,theconventioncentredistrictdevelopment,combinedwiththe65,000-seatfootballstadiumthatcanbeusedforspecialeventswillattractamillionadditionalvisitors,andaddUS$1.4billiontothelocaleconomy.
PaulVanDeventer-PresidentandCEOofMPI(MeetingProfessionalsInternational)
“RespondentstoourquarterlyMPIMeetingsOutlooksurveyprojectmoderategrowthinoverallbusinessconditionsfortheforeseeablefuture.Thisfindinghasbeenconsistentlypositiveinprioreditionsofthesurveyasreportedthroughout2016,buttheperspectiveissoftening.Atthesametime,liveandvirtualattendanceateventsisexpectedtogrow1.9percentand2.4percent,respectively.Meetingprofessionalsalsoanticipateanincreaseinbudgetof1.6percent—notsufficienttokeepupwiththegrowth,butstillrepresentingstable,moderategrowth.”
ASIAPACIFIC
Accordingtothisyear’sAdvitoIndustryForecast,Asiaisemergingasadynamic,well-balancedmeetingsmarket,withbothdemandandsupplygrowingsteadily.Evencitieswherespaceisnormallyhardtofind,suchasSingaporeandShanghai,haveseennewpropertieswithmeetingfacilitiesopeningoverthepastyear.TheForecastnotesthatdemandformeetingsisgrowingparticularlyfastinChina,inspiteofitsslowereconomicgrowth,andisspreadingbeyondBeijingand
20ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
Shanghai.ButanincreasedfocusinAsiaoncosttransparencymeansthatcompaniesarefeelingmorepressuretoshowthattheyarebuyingresponsiblyandtryingtocontrolmeetingcosts.Asaconsequenceofthistrend,theAdvitoIndustryForecastshowsthatsomebuyersinthisregionarekeepingaverageratesundercontrolbymovingtheirbusinessfromfive-starhotelstoanewgenerationof4-and4.5-starproperties.Thesehotelsofferbothqualityandvalue,andareemergingespeciallystronglyinIndia(incitiessuchasDelhiandBangalore)andinresortdestinations(BaliandPhuket).Five-starhotelsinthisregionarerespondingtothecompetitionbykeepingpriceincreasestoaminimum.
Intermsofmeetingsdestinations,Thailandisbecomingpopularagainfollowingtheendofcivilunrestinthecountry.Vietnamisalsosurginginpopularity.Bothcountriesoffergoodavailability,reasonablepricingandabroadselectionofvenuesrangingfromeconomytoluxuryhotels.
TheAdvitoIndustryForecastalsonotesatrendwherebyAsianmeetingplannersarebecomingmoreadventurousintheirdestinationchoices.Theopportunitytotaketheireventsfurtherafieldhasbeenboostedbytheregion’sstronggrowthinairlinecapacitywhichgrewby7.6percentinthefirstfivemonthsof2016,accordingtotheInternationalAirTransportAssociation.Asia’sfast-expandingmiddleclasseshaveacquiredaninsatiableappetiteforleisuretravel,andthisisdrivingarapidincreaseinnewdirectroutes,whicharestimulatingmoredemand.IndiaisreplacingChinaasAsia’smajoreconomicsuccessstory,asitcontinuestogrowat7percent+.Thisstrongperformancehasledtoaboominairtravel.
Aninterestingexampleofregionalcooperationforthemeetingsindustrydeservesamentionhere:acombinedregionalentity,tentativelynamedtheAsia-PacificFederationofMICEAssociations,isinthepipeline.TheKoreaMICEAssociation(KMA)iscollaboratingwithitsindividualAsia-Pacificcounterpartsinalong-termprojecttoserveAsia-Pacificcountriesbyenhancingcollaborationbetweenthem.FromoneMemorandumofUnderstanding(MoU)thatitsignedwiththeJapanConventionManagementAssociationbackin2013,itnowhasanMoUwiththeSingaporeAssociationofConventionandExhibitionOrganisersandSuppliers,signedin2014,andanotherwiththeChinaMICECommittee,signedin2015.ThelatestMoUwassignedthisyearwiththeThailandIncentiveandConventionAssociation(TICA).TheKMAhopestocontinuesigningoneMoUeachyearinthehopeofachievingitsgoalofformingtheregion-wideMICEassociationforAsia-Pacificinthenearfuture,andhassetaroughtimelineof2020forthenewfederation.
Withintheregion,intra-AsiaPacificbusinesseventsaccountforalargeshareofthemarket.Forexample,NewZealandrepresentedthelargestmarketforinternationalbusinesseventsvisitorstoAustraliain2015,andNewZealandbusinesseventsvisitorshaveahigheraveragespendthanthetotalmarketaverage.Forthesereasons,TourismAustraliahascommitteditselftopromotingbusinesseventstotheNewZealandmarketandislookingtogrowthishigh-yieldingsegmentthroughanumberoftradeandmarketingprogrammesdesignedtoshowNewZealanderstheadvantagesofAustraliaasadestinationforinspiringandinnovativebusinessevents.
Australiawillbehelpedinthisobjectivebythecountry’snewinfrastructuraldevelopmentsforthemeetingsindustry.ForemostamongtheseistheICC(InternationalConventionCentre)inSydney’sDarlingHarbour,whichwillopenitsdoorsinDecember2016,asoneoftheAsiaPacific'sprincipalintegratedconvention,exhibitionandentertainmentprecincts,underliningSydney'splaceasahighlydesirablemeetingandeventdestination.Atthesametime,existingvenuesarebuildingontheirsuccesses.Forexample,theBrisbaneConvention&ExhibitionCentre(BCEC)wasnamedasthe
21ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
World’sBestConventionCentreatthe2016AnnualGeneralAssemblyoftheInternationalAssociationofCongressCentres(AIPC)inNantes,France.
LATINAMERICA
Inthisregion,majorpoliticalandeconomicproblems,particularlyinBrazilandVenezuela,havedominatedtheheadlinesin2016,leadingtosofteneddemandfordomesticbusinesstravelandbusinessevents,eventhoughLatinAmerica’sappealasaninternationalconferencedestinationremainsundiminished.
WithinLatinAmericaitself,theGBTA/CWTGlobalTravelPriceOutlookhighlightsthefactthatmostcompaniesaretryingtoreducetheirmeetingcosts,holdingmeetingslocallyeithertosavemoneyortoenablemoreparticipantstoattend,orboth.Brazil’shostingoftheWorldCupandtheOlympicGameshascreatedasolidinfrastructureincludingnewhotelsthatisexpectedtocreateasurplusinsupplyandleadtolowerpricesafterthesetwoglobalevents.
Buttakingtheregionasawhole,theAdvitoIndustryForecastnotesthatinspiteofcurrentchallenges,LatinAmericastillneedsmorehigh-endpropertiestomeettheregion’sunderlyingdemand.Internationalchainshavelongexpressedaninterestintheregionandtherearenowsignsthattheyareinvestingwhilecostsarelowduetofavourableexchangerates.
Cubahasalreadybeenmentionedinthisreportasleadingthisyear’slistofemergingdestinationsforincentivetravel.ThecountrywillreceiveaboosttoitsbusinesseventsindustrygenerallyfromthedecisionoftheUSDepartmentofTransportationtogiveeightairlinesapprovaltolaunchnon-stopflightsfromtenairportsintheUStoHavana.ThedecisioncomesoneyearaftertheUSandCubaformallyre-establisheddiplomaticrelationsforthefirsttimeinhalfacentury.Thedealallowsupto20dailyflightstoHavana.MostwilloperatefromairportsinFlorida–largelyMiamiandFortLauderdale–buttherewillbedailyservicesfromAtlanta,Charlotte,LosAngelesandNewYorkCity.SixUScarriershavealsowonapprovaltoflytonineotherCubancities.
ElsewhereinLatinAmerica,Bogota,Colombia,isrisingfastasameetingsdestination.Thecapitalcityhasundergonearevitalisationinpastyearswithanassortmentofhotelsandmeetingsvenuesrecentlyopenedorcomingsoon.Theseincludethenew700,000squarefeetAgoraConventionCenter.Thisfive-storyvenuewillbethelargestinColombiauponitscompletioninApril2017,andoneofthelargestinLatinAmerica.SurroundingAgorawillbea200-acreconventionandbusinesszonethatispartofagrandcity-wideurbandevelopmentprogrammeknownasProjectINNOBO.AfterAgoraiscomplete,anadjacent411-roommajorbrandhotelisexpectedtoopenbymid-2018.Thecampus-likeareawillalsoincluderetailshopsandcafés,greenspace,andawalkingbridgetotheexistingCorferiasConventionCenter,whichwillundergoamajorrenovationofitsownfollowingtheopeningofAgora(Prevue).
MIDDLEEAST
Thisyearhasseentheregion’sflagshipdestination,Dubai,gofromstrengthtostrength,assistedinpartbythegrowthinairtravelcapacity,whichcontinuestogrowatveryhighrates–up14.6percentinthefirstfivemonthsof2016,accordingtotheInternationalAirTransportAssociation.OneexampleofthepoweroftheGulfcarrierstopourcapacityintothemarketisEmirates’
22ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
expansionofservicesbetweenDubaiandtheUK.StartinginOctober2016,theairlinealonewilloffertendailyservicesfromDubaitoLondon,usingtheAirbusA380onallbutoneoftheseflights.ThatmeansEmiratescouldcarrynearly35,000passengersperweekeachwaybetweenthetwocities.Intotal,Emiratesoperates126flightsweeklyfromtheUnitedArabEmiratestotheUK,whilefiveothercompetitorsoperateanother91departuresbetweenthem.
ButaswellasbenefitingfromEuropeansourcemarketssuchastheUK,theMiddleEastisalsoenjoyingathrivingintra-regionalbusinesstravelandmeetingsandeventsindustry.Whatismostremarkableisthespeedwithwhichthisregionhasasserteditselfasadestinationforbusinessevents.Speakingatthisyear’sibtmarabiaAbuDhabi,RobNicholas,MDofmeetmehighlightedthefactthat80percentoftheregion’sinfrastructureislessthantwodecadesold.Andyet,thisyeartheMiddleEasthascontinuedtoaddtoitswiderangeofvenuesformeetingsandincentiveevents.
Dubaiwelcomedthreenewworld-classvenues:DubaiOpera,DubaiParksandResorts,andIMGWorldsofAdventure,whichwillprovidetheemiratewithimportantnewvenuesforthehostingofconferences,team-buildingexperiencesandothercorporateevents.Togethertheywillgiveasignificantboosttotheregion’smeetings,incentivesandeventsindustry.Othervenuesareinthepipeline.DubaihasannouncedplanstobuildanewconventioncentreinAlJaddafnearDubaiCreek.Thenewfacility,whichwillspan55,000squaremetersandprovidespacefor10,000people,isscheduledtobecompletedintwoyearsatacostofDh1.8billion.Thenewconventioncentreispartofthecity’srun-uptoWorldExpo2020,whichwilltakeplaceinDubai.
ButDubaiisnotaloneinattractingmeetingsandeventsintheregion.QatarandOmanhaveembarkeduponthesamejourneytowardsDubai’ssuccess,bydevelopingtheirinfrastructureforbusinessevents.Qatarhasbeenpresentinthismarketforsometime,withitsQatarNationalConventionCentre(openedin2011)andonthe15thAugust2016theOmanConvention&ExhibitionCentre(OCEC)openeditsdoors,heraldinganeweraofopportunityfortheSultanateofOmanasadestinationforbusinessevents.Itwillbeahubforsharingknowledgeanddrivingcommerce,aswellasattractinginvestment,creatingjobs,contributingtotheeconomyandpoweringgrowth.TheOCEC’sinauguraleventwasInfraOman2016,oneofthelargestbuildingandconstructionexhibitionsintheMiddleEast.
TheMiddleEast’shotelstockisalsogrowing,withnewpropertiesopeningacrosstheregion-notonlyinDubai,AbuDhabiandQatar,butalsoinSaudiArabia,Oman,BahrainandKuwait.Starwoodisamongthefastest-growingchains,whileCarlsonRezidor,HiltonandMövenpickhavebeenactivetoo.Mostnewhotelscontinuetobeintheupscaletoluxurycategories,accordingtotheAdvitoIndustryForecast.
AFRICA
Thisyear,Africahaspresentedamixedeconomicpicture.InsecurityandpoliticalinstabilityafflicttheNorth,whilegrowthhasslowedinsub-Saharanoil-producingnationssuchasNigeriaandAngola.However,solidgrowthcontinuesinmuchoftherestofthecontinent,andthatmeanstraveldemandinmostcountriesisfirmlyontherise,accordingtotheAdvitoIndustryForecast.
Thesamesourcenotesthatthecontinent’sairlinesareexpandingtheirnetworksinresponsetotheintensifyingdemand.Othernations’carriersarealsoincreasingtheircapacity,withTurkishAirlines
23ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
beingperhapsthemostambitiousofall.IthasgrownitsAfricannetworkfrom13to44destinationssince2009,includingsecondarymarketslikeBeninandMadagascar.
ThesupplyofhotelroomsdesignedtowesternstandardsisincreasingaschainssuchasMarriottexpandtheirpresenceinAfrica.MergerpartnerStarwoodisexpandingtoo,withanAfricanpipelinethatincludesnewpropertiesincountriesincludingEthiopia,Kenya,SenegalandTanzania.Otherglobalchains,includingCarlsonRezidorandHilton,arealsoinvestingintheregion,increasingconsumerchoice.
Addingtotheseinfrastructuraldevelopmentsisthegrowingsupplyofconventioncentresinthiscontinent.Forexample,theCentreInternationaldeConférencesd'Alger(CICA)isNorthAfrica'snewestandlargestvenueforconferences,exhibitions,weddingsandspecialevents.Openedinthesecondquarterof2016,this270,000squaremetrevenueissituatedintheexclusiveClubdesPinsareaofAlgiers,andisexpectedtowelcomehundredsofthousandsofguestseachyear.
AttheSouthernendofAfrica,CapeTown’snewCenturyCityConferenceCentreislocatedinthecity’snorthernsuburb,complementingtherenownedCapeTownInternationalConventionCentre(CTICC)andintensifyingthedrivetomarkettheWesternCapeasaglobaldestinationforbusinessevents.FromMarch2017onwards,theCTICCitselfwillbenefitfromadditionalcapacitywhenitsCTICCEastexpansioncomesonstream,offeringanextra10,000m2ofmultipurposespace.
AsAfrica’smeetingsandeventsflagship,SouthAfricaissettobenefitfromthecurrentlowvalueoftheRand,whichoffersthepotentialofpositioningSouthAfricaasanexcellentvalue-for-moneydestination.
JoachimKoenig–PresidentofJMIC(JointMeetingsIndustryCouncil)
“Basedonthepremisethatindustrycredibilitydemandshardmeasurestosupportourvalueclaims,JMIChasinitiatedaprogrammetoidentifyanddocumentcasestudiesthatillustratethebroadereconomic,academic,professionalandbusinessoutcomesthatarisefromconferences,conventions,tradeshowsandotherbusinesseventstosupportouradvocacyprogrammes.Curatedbyanacademiccommitteeassembledtoensuregoodanddefensiblemeasurementmethodologies,theresultsofthisprogrammewillbedeliveredwidelybothwithinandbeyondtheindustryviaanewplatformthathasbeencreatedexpresslytopromoteindustryvaluestogovernmentsandthebroaderbusinesscommunitiesworldwide.”
24ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
OUTLOOKFOR2017
THEECONOMICOUTLOOK
Thegeneraltoneofmostforecastersisoneofquietoptimismforthe2017economicoutlook.
TheInternationalMonetaryFund’slatestpredictionisthatrecoveryisprojectedtopickupin2017astheoutlookimprovesforemergingmarketanddevelopingeconomies.TheEconomistIntelligenceUnitagrees,notingthattheoutlookforemergingmarketsin2017-18,whilestillsubjecttorisks,hasimproved.Strongercapitalinflowsaresupportingcurrenciesandhelpingcentralbankstotameinflation.Overthenexttwoyearsaslowriseinpricesofcommoditieswillsuitthelargenumberofemergingmarketsthatexportrawmaterials,whileimporterswillstillbeabletobuycommoditiesatpricesthatarecheapinhistoricalterms.
Regardingthedevelopedeconomies,theEconomistIntelligenceUnitforecaststwomoreyearsofrespectablegrowthintheUSeconomyin2017-18.AndKPMGInternational’sGlobalCEOOutlookindicatesthatthevastmajorityofCEOsareconfidentinfuturegrowthoverthenext3years,with89percentfeelingconfidentintheirowncompany’sgrowth,86percentconfidentintheirhomecountry’sgrowth,85percentconfidentinthegrowthoftheirindustryand80percentconfidentintheglobaleconomy.
TheAdvitoIndustryForecastpredictsthattheworldeconomyshouldregainsomemomentumin2017.Theoutlookforadvancedeconomiesremainssteady,asastrongerUSperformanceoffsetsslowerEuropeangrowth.Emergingmarketswillmakeabiggercontributiontotheglobaleconomyin2017,particularlyasLatinAmericareturnstogrowthaftertwoyearsofcontraction.Asiawillremainthemainsourceofemergingmarketactivity,expanding,onaggregate,by5.6percentin2017.TheIndianeconomycontinuestoexpandatmorethan7percent,evenasChina’sGDPgrowthratesslowdown.
However,commentatorsareeagertohighlighttherisksinherentintheuncertainglobaleconomyintheyearahead.Table9comparestheriskslistedbyAdvitoandbytheGlobalBusinessTravelAssociationandCarlsonWagonlitTravel.Clearlysomeofthese–suchasoilprices–haveadirectbearingontheperformanceofthemeetingsandeventsindustry.
TABLE9:Keyrisksahead
AdvitoIndustryForecast GBTA/CWTGlobalTravelPriceOutlook1.Brexit 1. Emergingmarketperformance2.EUexitcontagion 2. Financialmarketturbulence3.Italianbankingcrisis 3. Geopoliticalrisks4.China’sunsustainabledebtburden 4. Brexit- 5. TheUSFederalReserveandimpactofrising
USinterestrates- 6. OilPricesSources:AdvitoIndustryForecastandGBTA/CWTGlobalTravelPriceOutlook
25ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
THEOUTLOOKFORTHEMEETINGSANDEVENTSINDUSTRY
Regardlessoftheeconomicrisksthatarepresentinthemarketenvironmentwithinwhichourindustryoperates,mostsurveysofmeetingsandeventsprofessionalssuggestmoderategrowthfortheyearahead.
TheforecastsforgroupsizesandcostperattendeeperdayintheGBTA/CWT2017GlobalTravelPriceOutlookaregiveninTable10.
TABLE10:GlobalMeetingsandEvents–Previewing2017
Region Groupsize
Costperattendeeperday
AsiaPacific +5% +3%Europe,MiddleEast&Africa +6% 0%LatinAmerica 0% -10%NorthAmerica +3-5% +3-5%Source:GBTA/CWT2017GlobalTravelPriceOutlook
ThesamesourcepredictsthatintheAsiaPacificregion,thetransferofknowledge,technology,andexpertisefrommorematureregionswillbekeytoadvancingmeetingsandeventsprogrammesin2017.Advito’soutlookforthemeetingsmarketinAsiaisthattheintroductionofnewsupplywillslowin2017,whiledemandwillcontinuetogrow.ButtheIndustryForecastaddsthattherehasbeensomuchcapacityaddedinrecentyearsthatpriceincreaseswillnotbeparticularlysteep.Thatsaid,availabilitywilltightenonceagainandleadtosharperincreasesinhigh-demandcitieslikeHongKong,Singapore,ShanghaiandTokyo.Averagespendcouldalsomoveupascustomersconsiderbudgetincreasesandholdinghigher-qualitymeetings.Buttheywilllookatawiderrangeofdestinationoptionsthantheirusualconservativechoices,thankstoexpandingairlinenetworksandbetterflightfrequencies.
FortheEMEAregion,theGBTA/CWTforecaststhatmid-scalehotelsarelikelytoleadmeetingsandeventsbookingsintheyearahead,duetostrictcompanyguidelines,reducedbudgets,andincreasingindustryregulations.
IntheUS,thereisgrowingexpectationthat2017willbringachangeinthebalanceofpowerfromsellerstobuyers,intermsofcorporateandcontractratenegotiationsbetweenhotelsandplanners.Amongthosecommentatorswhoforeseeashiftfromaseller'smarkettoonethatfavoursbuyersin2017,isBjornHanson,PhD,clinicalprofessorattheNYUSchoolofProfessionalStudiesattheJonathanM.TischCenterforHospitalityandTourism.InhisrecentTrendAnalysisReport,hehighlightsthefourfactorsthathebelieveswillhavethegreatesteffecttoshiftthebalanceofpowerfromsellerstobuyers:
26ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
• Although2017USlodgingindustryoccupancywillbehighrelativetolongtermaverages,itisforecasttobelowerthanitwasin2016,whichwaslowerthanoccupancyin2015.
• Thenegotiationsforcorporaterateincreasesin2016wereatatimewhentherewasanexpectationforlargerrateincreasesthanactuallyoccurred;manycorporatetravelmanagersandconventionplannersbelievetheyhavebeenoverpayingin2016andwillseektorecoversomeofthat‘overpayment’in2017.
• Somecorporatetravelmanagersandconventionplannershavebeensurprisedatthepublished‘memberrates’andnon-refundableratespublishedonbrandwebsitesbecausetheycanbelowerthanthecorporate,contractorconventionratesthatwereexpectedtobelowerthanratesavailabletothepublic.
• Airbnb,which–untilnow-hasnotgenerallybeenembracedbycorporatetravelmanagersandconventionplanners,hasbeen‘endorsed’throughbusinessrelationshipswithAmericanExpressBusinessTravel,BCDTravel,andCarlsonWagonlitTravel.Also,AirbnbhasannouncedandpromoteditsAirbnbforBusinessandBusinessTravelReadyprogrammes,andAirbnb’sheadofGlobalHospitality&Strategy,hasmadepubliccommentsaboutthatcompany’snewfocusongroupandconventiondemand.
IntheUS,manycorporatemeetingplannersareattemptingtocontroltravelcosts,especiallyforhotels,whenthesecosts,includinghotelroomrates,areincreasingatapproximatelydoubletherateofinflation.Timewilltellwhether2017willbetheyearwhenthebalanceofpowerinnegotiationsmovesbacktobuyers.
Riskfactors
Butwhilethefuturemaybringitsownopportunitiesforourindustry,itundeniablyalsopresentsanumberofrisks.Lookingahead,someinsightsaboutthemainanxietiesofassociationconferenceplannersareprovidedbythelatestAssociationsSurveyoftheUnionofInternationalAssociations.Respondents’answerstothequestion,‘Whatareyourspecificconcernsabouttheimpactofthecurrentglobaleconomicsituationonyourcurrentandfuturemeetingactivities?’areshowninTable11.
27ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
TABLE11:Associationconferenceplanners’perceptionsofrisks
Source:UIAAssociationsSurvey
Butrisksarisingfromtheglobaleconomicsituationaccountforonlyoneelementofthechallengesinherentinthemarketenvironmentof2017.TheGBTA/CWTGlobalTravelPriceOutlookalsofocusesonthegeopoliticalrisksthatmaylieahead:
TherehasbeenheightenedunrestaroundtheglobewithterroreventsinIstanbul,ParisandBrusselsandothermajorterroreventsacrossAsia,TheMiddleEastandAfrica.Politicalriskswillhaveanimpactin2017,includingresultsofthe2016USelections,politicalscandalinBrazil,andtheriseofanti-establishmentpartiesthroughoutEurope.Refugeeflowsandglobalepidemicsarealsothreateningeconomicstabilityinsomecountriesandregions.
Clearly,theneedtoeducateourselvesinordertobeabletominimisetheriskstothosewhoattendbusinesseventsaswellastoourselvesasmeetingsandeventsprofessionalsisessentialinthesetimesofgrowinguncertainty.ThatwastheconclusionoftheInternationalLiveEventsAssociation2016ILEAGlobalEventsSummitinEdinburgh,whichwasattendedbyindustryleaderswithanacuteunderstandingofthemajorchallengesourindustryfacesinthegloballandscapeofthe21stcentury.Inresponsetothequestion,‘Whatkeepsyouawake’?therewasnohesitationamongattendees.Securitywasrightatthetopoftheirlist.
28ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
Brexit
FollowingthemomentousdecisionofthemajorityofthecitizensoftheUKtoleavetheEuropeanUnion,noreviewofmarkettrendsfor2016and2017canbecompletewithoutsomereflexiononwhatcouldbetheimpactofBrexitonthemeetingsandeventsindustryintheUK,Europeandbeyond.
ForalthoughBrexitisstillverymuchanunfoldingeventwithmanyunknownsastoitsimplementation,thereisnodoubtthatitwillhavethemostpronouncedimpactonWesternEuropeaneconomiesandcouldhaverippleeffectsonthebroaderglobaleconomy.AsnotedbytheGBTA/CWTGlobalTravelPriceOutlook,therearemanyuncertaintiesastheUKformulatesitswithdrawalstrategyanditsfuturerelationshipwiththeEU.Dependingonthoseresults,theUKmayneedtoalsonegotiatenewtraderelationshipswithboththeremainingEUcountriesandnon-EUcountries,negotiationsthatcouldtakeyears.Theuncertaintywilllikelyimpactconsumerandbusinessconfidence,impactinginvestmentsandemployment.Moreimmediateconcernsincludecurrencyfluctuationsandthedevaluationofthepoundsterling,whichcouldmakeitmoreexpensiveforUKconsumerswhentravelingorpurchasingoutsidetheUKasearlyasthisyear.
TheAdvitoIndustryForecasttellsusthatrightupuntiltheBrexitvote,theUKwasleadingEuropeangrowthindemandformeetings,andforwardbookingsfor2017and2018werestrong.Followingthevotetoleave,somemeetingsagencieshavereportedcancellations.Othersbelievetheremaybeashort-termincreaseinmeetingsbusinessascompaniesbringstafftogethertoreconsidertheirstrategiespost-Brexit.Becauseofthedevaluationofthepound,UKcompaniesmaybemoreinclinedtoholdmeetingsintheUK,ratherthantraveltoEurope.Atthesametime,currencyweaknesswillmaketheUKamoreattractiveoptionformeetingplannersbasedinothercountries.
AnexampleofthisimpactwasreportedinOctober2016byGregOatesofSkift,whohighlightedthesharpfallinthevalueoftheBritishpoundagainsttheUSdollarasthekeyfactorinboostingLondonmeetingsbookingsbyNorthAmericanclients.Atthetimeofwriting,thepoundwasata31-yearlowagainstthedollar,promptingUS-basedconferenceorganiserstojumpatthechancetolockinlowerratesfortheirlargeeventsforyearstocome.DuringthetwocalendarmonthsfollowingBrexit,theLondon&Partnersconventionbureaufielded66percentmoreinquiriesfromUSconferenceorganisersthanthesametimelastyear.Overall,amongallinternationalsourcemarkets,therewasa41percentriseininquiriesfrombusinesseventplannersfromJunethroughSeptember.
London&Partnersseesthisfallinthevalueofthepoundasanopportunestrategytodrivenewconferencebusiness,therealattractionbeingthatorganiserscanbookconferencevenuesandbusinesshotelsattoday’sratesforthenextfewyears.Theeffecthasbeenfeltbyvenuesthroughoutthecapital.Forexample,BronaKelly,DirectorofSales&MarketingattheMaybourneHotelGroupreported:
‘FollowingBrexit,Londonhotelshaveseenasurgeofbookingsacrossthecity.RegardingMICEbusiness,wehavealsoseenademandwithclientspreferringtopre-payfortheireventbookinginordertolockincompetitiveexchangerates’.
JamesRees,ExecutiveDirectoroftheExCeLLondonconventioncentre,notedthesameeffect:
‘TheweakerpoundhasbeenpositiveforourNorthAmericanclients,anumberofwhomhavecalledustoarrangeearlypaymentsfortheireventsinordertotakeadvantageofthepreferentialexchangerate’.
29ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
Butthequestiontobeansweredishowlongwillthisboostindemandasaresultoftheweakpoundactuallylast?SimonFrench,writinginTheTimes,isnotoptimistic:
‘Thebadnewsisthatthisboostfromcurrencydepreciationwillbetemporary.Itwillwaneearlyin2017.Near-termmomentumwillbereplacedbyacutinrealincomesasinflationmakesaspectacularreturn,spurredonbytheweakerpound.InflationsignificantlyabovetheBankofEngland’s2percenttargetisexpectedbynextsummer.Thecostofinputs—alreadygrowingatanannualrateof7.6percent—issettoacceleratefurther’.
PartoftheproblemisthatthemajorityofrawmaterialsusedbyBritishmanufacturersandsupportingthelargeservicesector–includingourownindustry-arepricedindollarsandeuros.Therefore,ascontractswithsuppliersarerenegotiatedinthefuturetheyaresettobecomemuchmoreexpensiveforUKbusinesses,duetotheweaknessofpound.Thehighercostsofalloftheinputsthatarerequiredformeetings,fromtransporttofoodandbeverage,willinevitablyleadtopricerisesforthosepurchasingsuchevents.
Butwhileanumberofsuchpredictionscanbemadewithnear-certainty,whatismostevidentofallisthattheconsequencesofBrexitforourindustrywillnotbefullyclearforsometimetocome.
30ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
CONCLUSION
Inthesetimesofgrowinguncertainty,onethingisclear:themeetingsandeventsindustry,whichhasrepeatedlydemonstrateditsresilienceinthepast,willbeoncemoreobligedtoshowthatitiscapableofprosperinginthefaceofnewchallenges,someofthemasyetunknown.
Onthepositiveside,wearenowmuchbetterplacedtorespondtothosechallenges,evencomparedwith12yearsagowhenIwrotethefirstTrendsreport.Ourindustryisnowrobustlyunderpinnedbywidespreadprofessionalismandasoundeducationandtrainingsystemthatsupportsourhumaninfrastructure.Technologicaladvanceshaveprovideduswitheffectivetoolsforinstantaneouslysharingourexpertise,knowledgeandsolutionswitheachother,atthepressofabutton.Themeetingsindustryassociationsplayaninvaluableroleintheeducationoftheirmembersatconferences;andtheseminarprogrammesofferedbymeetingsindustryexhibitionsprovideadditionalopportunitiesforlearning.
Butmostofall,wearemoreconfidentaboutourvaluesandimportancethanatanytimeinthehistoryofourindustry.
Onekeytosurvivingandthrivinginthecurrentchallengingmarketenvironmentmustbetodemonstrateourconfidenceinourindustrybyusingeveryavailableopportunitytomakethecase–loudandclear-fortheintrinsicvalueofbusinessevents.Therehasneverbeenamoreimportanttimetoadvocatethevalueofmeetingsandeventstothegreatereconomyaswellastoallofourstakeholders.Thisisataskthatisincumbentuponeverymanandwomanworkinginourindustrytoday.Ourtomorrowmaydependonit.
31ReedTravelExhibitions|ibtmworldTrendsWatchReport2016
Sponsoredby:
SOURCES
Publishedin2016,unlessotherwisestated
• Advito:IndustryForecast• EuropeanAssociationofEventCentres(EVVC),theGermanConventionBureau(GCB)and
theGermanNationalTouristBoard(GNTB):Meeting-&EventBarometer• EconomistIntelligenceUnit(EIU):EconomicForecast:World• EuropeanAutomobileManufacturersAssociation(ACEA):PressRelease,14October• Conference&IncentiveTravel,May17,2016:LondontopsCvent’slistofEurope’sbest
meetingdestinations• Gartner:ITSpending,Worldwide,2Q16Update• GlobalBusinessTravelAssociation(GBTA)andCarlsonWagonlitTravel(CWT):GlobalTravel
PriceOutlook• InternationalAirTransportAssociation(IATA):AirPassengerMarketAnalysis,May• InternationalAssociationofConventionCentres(AIPC):MemberSurveyReport• InternationalCongressandConventionAssociation(ICCA):StatisticsReport• InternationalMonetaryFund:WorldEconomicOutlook• Kable:PharmaceuticalIndustryBusinessConfidenceReportH2• KPMG:10emergingtrendsin2016:Trendsthatwillchangetheworldofinfrastructureover
thenext5years• KPMG:GlobalAutomotiveExecutiveSurvey• KPMGInternational:GlobalCEOOutlook• Lucintel:GrowthOpportunitiesintheGlobalConstructionIndustry2016-2021:Trends,
Forecast,andOpportunityAnalysis• MarketDataForecast:PharmaceuticalExcipientsMarketbyProduct,byFunctionality,by
FormulationTypeandbyRegion-GlobalIndustryAnalysis,Size,Share,Growth,Trends,andForecasts
• MeetingProfessionalsInternational(MPI):MeetingsOutlookSummerEdition• MeetingsNet/IncentiveResearchFoundation:IncentiveTravelSurvey• NYUSchoolofProfessionalStudiesJonathanM.TischCenterforHospitalityandTourism:
BjornHanson:TrendAnalysisReport• Prevue:JohnAnderson–01July:‘ANewConventionCenter&HotelsBoostBogota’sMICE
Appeal’• ProfessionalConventionManagementAssociation(PCMA):MeetingsMarketSurvey• PwCStrategy&:AutoIndustryTrends• PwCStrategy&:EngineeringandConstructionIndustryTrends• Skift:GregOates–05October:‘ConferencePlannersShowSurgingInterestinLondonSince
Brexit’• TheTimes:SimonFrench–08October:‘Thisunspunverdictonvotetoleaveisdamning’• UnionofInternationalAssociations(UIA):AssociationsSurvey2015• UnionofInternationalAssociations(UIA):InternationalMeetingsStatisticsReport,57th
edition• www.lifehealthpro.com/2016/10/11:KevinW.Mechtley:Whathappenstoincentivetrips
undertheDOLfiduciaryrule?
Sri Lanka Convention Bureau,4th Floor, Hotel School Building, No. 80, Galle Road,Colombo 03, Sri Lanka
Tel: +94 11 244 000 2 | Fax: +94 11 247 29 85 | Web: www.visitsrilanka.net | E Mail: [email protected]
MEET IN SRI LANKAChoose the locationfor a true meeting experience