Singapore: 2011 Performance Stats for MICE

I just thought that it is an appropriate week to provide an update on Singapore's MICE sector's performance for 2011.  These figures I am quoting were released by the Singapore Tourism Board.

1. There was a 46% increase in the number of conventions, conferences and trade shows as compared to 2010.  A total of 2,130 such events were held in Singapore in 2011.
2. Tourism receipts (and this does not equate with economic values) from the sector increased by 10% to SGD 550 million.

I should also point out that the cost of running MICE events in Singapore has increased as well.  Some of the rise in costs are demand driven e.g. as with hotel rooms (more demand for rooms = higher room rates), and the strong Singapore dollar.

In 2011, a total of 13.2 million tourists visits were recorded, generating tourism receipts of SGD 22.2 billion.

Is there a need to re-focus Singapore's MICE sector?  As noted in my earlier blogs, more destinations and cities are jumping onto the MICE bandwagon.  Some of these have unique product offerings, and in general most of the competition offer lower price points.  The Singapore proposition, I expect, will continue to be attractive to organisers around the world. HOWEVER, I do see a need to evolve and re-focus as organisers will not always be willing to accept higher costs and overcrowding.

Visit to FHA 2012

I had the opportunity of visiting FHA 2012 this week.  FHA 2012 is one of the largest tradeshows that focuses on Asia's food and hotel sectors and in this instance, it is co-located with Wine & Spirits Asia. It was an interesting experience walking through 9 exhibition halls at Singapore Expo. One thing that struck me was the effort and resources exhibitors invested in their booths in terms of visual impact, collaterals, exhibits and overall attractiveness.  This was even evident with exhibitors which only had in-line booths.

What I did find missing was the high levels of excitement, activity and "buzz" as I walk through the show floor.  This, perhaps, was because I visited the tradeshow on its first day of operation and exhibitors need some time to settle in and get into the mix of things.

I just thought I'd share some photographs I took and my observations:



Take a look at the raised flooring for this booth



Look at the height of the Dilmah signage - increases the visibility from across the show floor

Examples of the effort invested in booth design

Over the course of the next couple of months, I will share more of my observations of FHA 2012.

MICE - The Business Rationale

In an article that appear in the 9th April (2012) issue of the Los Angeles Times, a soon-to-be-held trade show, known as 2012 International Pow Wow, is expected to result in an estimated US$ 10 mn inflow of spending for the city of Los Angeles.  The trade show is one of the largest trade shows for the travel industry in USA.  It will be held at the Los Angeles Convention Centre from 21-15 April this year.

The break down of the US$10 mn in spending includes an estimated US$ 9.7 mn being spent by trade show delegates on hotel rooms, food & beverage, and entertainment. The positive spillover effect, which takes into account the impact of a multiplier, could see an added US$ 350 mn worth of spending being generated over the coming 2-4 years as a result of the influx of domestic and international visitors to Los Angeles.

This got me thinking about the business rationale for destinations wanting to attract MICE-type events.  Its not just about the money, although the figures (as seen above) are mind-boggling.  There are a whole range of other benefits - some of which I have been already alluding to in previous posts in this blog.  I like the following schematic and think it provides a clear snapshot of the business rationale:

It goes beyond the revenue, tourism receipts and providing business for the events services sector.  It has to do with individual development, industries and commercial development, cultural exchange, the acquisition of knowledge, new technologies, best practices and skills. It is only when you begin to take into the varied impacts of hosting business events, does the rationale become much more clearer and in some ways so simple to understand.  This is driving the increasing push by cities around the world to be more competitive in the business events marketplace.