 
Q: Why did Off-Site Connections decide on Shanghai as its China base considering the amount of infrastructure investment going into Beijing and the opportunities there before, during and after the 2008 Olympics?
A: The Olympics in China is only a small part of the strategy behind our expansion into China. When starting our operation here it was important for us to consider our long-term strategy in the region, and not just get caught in the slipstream of the Olympics. We expanded into China because we saw the potential here for our company’s future long term, and the need for our sort of expertise and service. Shanghai is the financial capital of China, and is the headquarters for a lot of the major multinational and international companies operating here. As this is the largest segment of our market, it made sense to situate ourselves near our clients. What’s more, Shanghai is a really metropolitan city, possessing a more developed event and hospitality industry. We feel there is more demand for our creative event management services in Shanghai than Beijing. However, we service Beijing regularly and are opening an office there in a month.
Q: Do you see the Olympics as being a positive for China and the business events industry there?
A: The Olympics is of huge importance to China socially and economically. But for the local industry, the implications will be enormous. The Olympics is forcing the rapid development of event support services, and bringing local suppliers in line with international service standards much quicker than it would have happened. A result of the Olympic preparations is that local operators are gaining an understanding of what international corporations expect in terms of service, outcomes and products. The professional development of the industry as a result of the Olympic investment will strengthen the industry in the long term. Not to mention the huge influx of business for everyone.
Q: It was a big move for Off-Site Connections to move into China. Why China and not any of the other major business events cities like Hong Kong, Bangkok or Singapore?
A: As of last week (early August), we opened an office in Singapore and have been working in Hong Kong via our Shanghai office since we opened. I think mainland China was attractive because the industry is still in its infancy, and it was an exciting possibility to be a part of the early development of the industry, and establish ourselves here as a viable player before it became over-saturated with competitors. The market is so large, and growing so quickly, with a tremendous amount of potential and investment from overseas that it made sense to become a part of it from the beginning, establish the all-important relationships, and build our brand.
Q: With the rapid expansion in venues in Macau, will you have a presence there as well?
A: Macau is definitely on our radar. The potential there is enormous and exciting. I think Macau will surpass Singapore, and even Las Vegas, as the number one casino conferencing destination of the world.
Q: China is developing into a very competitive market. Who are your top three inbound business markets now for events and where do you see future business growing from?
A: It is hard to speak for our competitors or other operators in the industry, but Australia and New Zealand, and Asian countries (South Korea, Malaysia) are big inbound markets for us. Our Australian company heritage means a lot of our inbound clients are loyal clients of the Australian operation, using our services in China. However, when it comes to travel for business and conferences, corporations don’t like to fly too far from home for events with large groups. Australia, New Zealand and Southeast Asian countries are a comfortable distance from China. Australian corporate travellers are frequent travellers, adventurous, travel frequently and enjoy being out of their comfort zone. The Olympics and World Expo have sparked a lot of interest in China as a destination, and well-travelled corporate clients are looking to the more interesting destinations off the beaten track to try and re-invent their conference programs.
Q: As China is still an “emerging” destination for this travel sector, what are the biggest challenges you have faced so far and where do you see future challenges coming from?
A: The biggest challenge our operation has faced so far is sourcing and managing good suppliers. As discussed briefly before, international corporations have incredibly high expectations. We are lucky enough to be in a position now where we have established relationships with suppliers we can trust, and who we know will produce goods and services to our required standard. We also have the buying power to be able to maximise our clients’ budget outlays and ensure they are getting the best possible event for their money. The problem moving forward will be sustaining this level of growth and demand in our industry, as more and more operators flood into the market from around the world. People are sitting up and taking notice of our business events industry here, and wanting a piece of the market. We acknowledged this early on, and went about establishing long-lasting relationships in our market that we work hard to maintain and that will ensure our market share remains.
Q: Pricing for this sector is still incredibly aggressive in China. Are local operations undercutting more experienced international organisations and is this hurting the industry’s image? What can be done to alleviate this?
A: Pricing in our industry is very competitive, however a large portion of our client base is international – people who are willing to pay for the expertise and security of being able to communicate with their operators and know they are being understood. Local companies are very price-driven. We are a full-service, creative agency with western event professionals leading a team of Chinese operational staff. People still find that doing business in China is very complex, and often scary, and we are here to facilitate for them. We have found a great client segment to focus on, medium to large budget experiential marketing events, and high-end conferences and incentives.
Q: With more local staff coming on board into business events in China, are there any language barriers in dealing with international customers?
A: Language barriers are always a trouble, but cultural barriers are harder to overcome. So much of the communication pivots on people understanding each other at a cultural level, commonly held beliefs and ways of doing business. In a creative industry such as ours, sometimes it is difficult to understand what the client is imagining, what they want to achieve, what they expect will happen and what their money is buying them. It is for this reason that our company here has incredibly detailed communication systems. We document everything, and keep a very thorough record of all key event management issues, and are in constant contact with our clients to ensure we are on the same page.
Q: Is the business events industry getting the support it needs in terms of marketing from the China National Tourism Administration?
A: We don’t have a great deal of contact with the CNTA. In Australia, our company is very heavily involved with all our industry bodies and we are an active member of the industry across the whole country. This will come with time in China, once people discover the importance of business tourism and the potential for everyone to benefit. Our company is also involved in tradeshows across the region to maintain our contacts.
Q: With the development of the business events industry in China, is the country now receiving business that would have previously gone to other regional favourites such as Australia, Hong Kong, Singapore and Bangkok?
A: Destinations such as Australia, Bangkok, etcetera have been tried, tested and have been well-worn destinations on the conference trail for many years. Companies that have been producing conferences for a long time are looking for unchartered destinations. In order to “incentivise” their staff with an exciting conference or incentive, companies have to look further afield to find places where they can create truly memorable and lasting event experiences. China’s growth and development has meant that companies are no longer hesitant to bring groups here, because they can trust that their programs, hotel and flights and events will be managed to an international standard. China also provides a tremendous cultural experience for guests. So little is understood about this amazing country, and there is a real curiosity brewing worldwide. With affordable event solutions in some amazing places, China is fast becoming one of the world’s most sought-after destinations. We are really pleased to be a part of the excitement.
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