The Thailand Convention and Exhibition Bureau (TCEB) has gone so far as to claim it will surpass Singapore by 2011.
Statistics show this is a lofty goal. TCEB reports 2006 MICE arrivals to Thailand reached 677,500, spending US$1.56 billion, an impressive 25 per cent leap over the previous year. However, Singapore Tourism Board’s (STB) tally of around 2.42 million MICE visitors left behind about US$2.46 billion, reflecting a 14.5 per cent revenue growth.
Though per-person spending in Thailand towers over Singapore’s and is moving with greater momentum, Singapore continues to perform well. In the first six months of this year, the island nation recorded a higher-than-expected 1.23 million MICE visitors generating some US$1.26 billion in revenue.
The Thailand Incentive and Convention Association (TICA) reported a different set of numbers than TCEB, albeit with an increase over 2005 and in the November/December 2006 issue of PATA Compass, the Association’s Strategic Intelligence Centre questioned MICE data. The report argued that different organisations use varying definitions of MICE and dissimilar criteria for evaluation.
In spite of opaque statistics, both countries’ MICE trade is growing, but is Thailand’s expansion quick enough to overtake Singapore as TCEB predicts?
“Probably a tall order, given the level of government support places like Singapore provide to event organisers,” said Michel Horn, general manager of Centara Grand and Bangkok Convention Center (BCC).
“That said, and despite the issues, we are still a very popular destination for organisers… I personally think this could happen if we do the right thing.”
Destination Asia (Thailand) managing director Addie Samerton agreed.
“Thailand has so much more to offer than Singapore in terms of history, cultural and geographical diversity, so the goal is realistic in that sense,” she said.
However, The Landmark Hotel Bangkok general manager Frank Clovyn’s assessment is more pragmatic.
“Without any disrespect to TCEB, I believe that their goal to be an ASEAN (Association of Southeast Asian Nations) MICE leader by 2011 is not realistic,” Mr Clovyn said.
“Singapore and Hong Kong are completely committed in their determination to win top MICE events. Their countries have analysed the needs of MICE planners and have acted accordingly.
“Thailand still lacks direction and a true understanding of the MICE segmentation. They face so many obstacles and challenges that it would take a complete overhaul of their current strategy in order to achieve their goal.”
This lack of direction took a sidestep on August 1 this year, when TCEB director general Peerapong Oeusoonthornwattana suddenly resigned. Filling the gap in the interim was Kajit Habanananda, the existing TCEB chairman, who said the current strategy to promote the country’s MICE industry would stay the course.
Since then, Mr Kajit has resigned to form a political party to contest the upcoming elections, replaced by Thailand Privilege Card board member, Mr Kwanchai Modpradit, as an interim director-general while a full time replacement is found.
In spite of the nation’s political turmoil, as well as uncertainty within the TCEB, Thailand’s MICE industry has moved ahead.
Royal Orchid Sheraton Hotel director of MICE sales, Pipat Patthananusorn said the political situation barely comes into play when organisers are considering Bangkok for their upcoming events.
“We believe that this is only a short impact and the situation will get better when the election takes place in December 2007,” he said.
The Landmark Hotel Bangkok has admitted to some fallout from the 2006 coup and the ongoing political instability.
Elections are tipped for Thailand by the end of the year, which many in the industry believe will bring an end to the stability issues in the country, particularly the capital.
“Initially the political situation affected our MICE business, especially after the New Year bombings which saw almost 80 per cent of all our conference business for the first quarter cancel or postpone. However, business is returning quite steadily and the last quarter of this year is particularly strong,” said The Landmark Hotel Bangkok’s Frank Clovyn.
Destination Asia (Thailand’s) Addie Samerton agreed that politics has had an effect, albeit slight.
“We have noticed that there is no incentive group movement in November to December this year, possibly due to the forthcoming general election,” Ms Samerton said.
“However bookings into 2008 look positive, so the clients obviously believe the situation will improve after the election.”
General manager of the Centara Grand Hotel and the BCC, Michael Horn said: “The political situation has not really affected BCC bookings. In fact the market shows good demand.”
BCC’s sailing through the turmoil could be due to the venue itself. The capital’s shining new star just opened on July 19 to host the International Bangkok Film Festival.
“BCC is a part of a total integrated venue including a hotel (Centara), convention centre and lifestyle retail and entertainment complex,” Mr Horn said.
“We are in the CBD area and surrounded by thousands of additional hotel rooms, all within easy walking distance of BCC. This is a unique proposition for Bangkok, and positions us apart from our competitors.”
The true test of this new MICE venue comes on October 23-25 when BCC hosts the 15th Incentive Travel and Corporate Meetings Asia tradeshow for professionals in the industry looking to book facilities for upcoming events.
“This event will be the showcase for BCC as a new international venue for exhibitions and conventions, and to prove Thailand as a MICE hub in Southeast Asia,” Mr Horn said.
The event will utilise 10,000 square metres for the predicted 5000 participants.
BCC’s impact on Thailand and Bangkok MICE has yet to be seen, but The Landmark’s Mr Clovyn said it will have a positive and negative effect on the The Landmark, which sits three train stops away.
“Should they successfully win any large events, we will gain in accommodating their guests. However, for smaller events which previously used Bangkok International Trade and Exhibition Centre (BITEC) or IMPACT (exhibition and centre centre)… delegates may stay at the surrounding nearby hotels,” he said.
Mr Pipat expressed similar concerns for hotels along Bangkok’s Chao Phraya River.
“This will definitely be a challenge for all riverside hotels where guests have always been delegates at BITEC, IMPACT or conventions within the hotel,” he said.
“On the other hand, more choices for conventions in the centre of downtown will obviously create an advantage to the city’s hotels.”
The BCC adding a fourth major Bangkok exhibition centre to BITEC, IMPACT and the Queen Sirikit National Convention Centre has raised concerns of oversupply. With nearby Pattaya coming into play, a new convention centre for Chiang Mai about to open and Phuket already a mainstay of Thailand’s MICE sector, many wonder if the capital needs another venue.
“MICE marketing in Thailand is growing each year and Bangkok’s venues won’t be enough within five years,” Mr Horn predicts.
“It is with venues like BCC that we will capture more of these larger events from other destinations within the region.”
For a destination management company, another choice places a new product on its rack.
“The opening of Central World Convention Centre is really great news for Bangkok with its perfect location right in the middle of the city,” Ms Samerton said.
“It’s convenient to reach by train, and there are so many thousands of hotels beds within the city centre, the Sukhumvit area as well the riverside properties.
“While BITEC and IMPACT should still do well with exhibitions and conventions that require larger space, BITEC is convenient due to its proximity to Suvarnabhumi Airport and IMPACT provides a great venue and is easy to reach by train and the expressway.
“It’s better to have more choices than none and the new convention centre should compliment existing facilities.”
While key infrastructure in Bangkok has opened up to the applause of the trade, Chiang Mai in the north and Phuket in the south are also forging ahead with development.
Yet Chiang Mai and Phuket, two destinations overflowing with these qualifications, remain virtually untapped for large scale events, though hotels with MICE facilities are opening in anticipation of a boom. After years of talk, the US$11.6-million Chiang Mai International Exhibition and Convention Centre finally broke ground in May. The convention hall will seat 3000, while the sprawling 8000-square-metre exhibition area can house up to 450 booths. The 2500-square-metre dining facility can serve up to 1400 guests, and the convention and exhibition halls can be combined for a capacity 12,000 participants. Phuket is another prime MICE destination moving ahead at an agonisingly slow pace.
The private sector in Thailand continues to identify the need for increased levels of infrastructure for the MICE industry to prosper and acts on that demand, while many feel the government is still failing to grasp how to best market the country for this sector and meet the needs of international planners.
In August, the government finally announced a site would be selected for the Phuket International Convention and Exhibition Centre, a plan initiated years ago. However, internal squabbling on the island still has not led to a site for the centre being identified.
The private sector’s confidence in TCEB is waning, as the board continues with rhetoric of 20 per cent growth a year to overtake Singapore. However, its methods appear as a potpourri of public relations activities rather than a solid marketing plan.
The most recent TCEB blunder came in March when it organised the first ASEAN MICE exhibition and trade show at Bangkok’s IMPACT. According to many participants, the event was a flop.
TICA executive committee chairman Opas Netrampai said the show’s timing conflicted with more prestigious events, it missed the target group, the name was misleading as it didn’t include all of ASEAN, the location was inconvenient and there were no stipulations for one-on-one appointments.
Some in Thailand’s MICE private sector would argue this lack of confidence coming from its main private sector partner makes it difficult to place credibility in TCEB’s enthusiastic plans to challenge Singapore for the title of Southeast Asia’s leading MICE hub by 2011.
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