The People’s Republic of China is one of the oldest civilisations in the world with some 4,000 years of continuous history. With a population of 1.3bn and a land mass of nine million sqkm, the country offers one of the most varied and unique event landscapes on the planet.
Although the communist state has not always been welcoming of outsiders, it has made great strides in encouraging communication in recent years. China is driven by export and is keen to open channels for trade with international conferences and exhibitions needed for this reason.
“China can provide organisers and delegates new networking opportunities,” says VariArts Travel Group, master licensee holder of HelmsBriscoe China, and China Luxury Travel Network’s Business Development Manager, Daniel Sumarto. “Given almost every industry in China is currently experiencing growth, new business opportunities are still emerging for international enterprises and demand for conference venues remain strong.”
China’s State Council announced in 2009 that tourism had been earmarked as a strategic pillar of
its economy going forward. This encouragement has helped China develop a maturing native meetings industry able to take advantage of the country’s modern state-sponsored events infrastructure built for such events as the 2010 World Expo in Shanghai, which attracted 74m visitors over 184 days, and the 2008 Beijing Olympic Games.
One new development born out of the Games was the China National Convention Centre (CNCC),
which was used as the Games’ press and broadcasting centre and then retro-fitted to become a convention centre with 25,000sqm of function space and 99 meeting rooms.
Last year was the centre’s first full operating year and it ran 700 events, 15 per cent international and 85 per cent domestic. Among annual events held at the centre are the China meetings and incentive tradeshow by Reed Travel Exhibitions, CITBM, and next year it will host the SITE 2012 global conference, which will be co-located with CIBTM 2012.
Senior Director for Sales and Marketing at the CNCC, Jennifer Salsbury, says: “One of the legacies of the World Expo and the Games was the introduction of international event management agencies setting up shop in Beijing and Shanghai such as American Express, MCI Group and TUI Travel. This resulted in an improvement in the local expertise.”
The GM of the Chinese division of events and live marketing agency Vok Dams, Ulrike Ellmann, says the event market is getting constantly more professional in China: “You can clearly see that by comparing current events with what has been done in the past.”
The MD of Shanghai-based agency Turningpoint Solutions, Peter Pecotić says: “The Games created success in public diplomacy by increasing international exchange and understanding. Beijing was able to use the events to creative massive public support of the infrastructure upgrades.
“These events created a new generation of event professionals, which we can all now benefit from.”
He says, however, one of the challenges of working in China has been the ‘software’ keeping up with the new ‘hardware’. “We find it challenging to find results-orientated staff and service providers,” he adds.
CIBTM Project Manager, Jeffery Xu says the 5th China and Asia Annual Meetings Industry Research Report presented at CIBTM 2011 in August, highlighted the need for professional training and education to keep up with the pace of growth: “Accreditation has become an important focus – this is shown in the thirst for knowledge.”
International understanding
Sumarto says the country’s experience in large-scale events has been instrumental in shaping governmental policy, new venues and services.
“More international standard facilities are being constructed not only in major Chinese cities, but also in second tier cities such as Xian, Tianjin and Chengdu,” Xu tells CMW.
And growth continues. Beijing has commenced construction of its Beijing Daxing International Airport, which is set to open in 2015 and when fully running is expected to be the world’s busiest and biggest aviation hub hosting 370,000 passengers a day.
In September 2011, the Shanghai Government announced plans for a 500,000sqm convention centre to stretch across 104 hectares. The US$3.5bn China Expo Center is expected to be the world’s largest exhibition and convention centre.
China has also invested 700bn yuan (US$110bn) into railway construction with 10,000 km of high-speed railway under construction at present.
And it is not just the infrastructure which is growing. MD of TTG Asia Media, organiser of Shanghai-based meetings tradeshow IT&CM China, Darren Ng, says MICE travel spend grew by 40 per cent a year in China, compared to 20 per cent for leisure.
VP of Grand China Express International Travel, Ni Hui, says he expects China’s MICE travel to become bigger than the US market within the next two years.
“There is a huge demand and it is currently dominated by the medical/pharmaceutical sector with over 30 per cent of all clients.”
New convention centres, hotels, airports and highways have helped to redefine China as a modern meetings destination. The 2011 Global Tourism Competitiveness Report, released by the World Economic Forum, ranked China’s tourism competitiveness 39th, up from 62nd four years ago. In the 2010 International Congress and Convention Association rankings China placed eighth with 282 qualifying meetings, one place up on 2009’s rankings. Beijing ranked 12th (10th in 2009) with Buenos Aires.
“It is expected by 2020 the scale of the market will be four to five times as large as it is today,” Xu says.
Historic settings
Organisers are not just interested in new meeting spaces. With 4,000 years of history comes unique spaces for meetings and corporate hospitality. “Beijing alone has one of the highest concentrations of ancient sites protected as UNESCO World Heritage sites,” says Salsbury. “Many of these palaces and monuments can be used for special private functions.”
Pecotić says offsite events can bring to life a destination and working with a local cultural institution is a great way to both add a local flavour and engage with the community.
The MD of Off-Site Connections Event Management, Peter Kinnane, says dinners in imperial palaces and touring in historic hutongs (alleys) are all unforgettable experiences.
8th Wave Events and Destinations is a destination management company with clients such as HSBC and Reader’s Digest and has a 400-delegate medical conference planned for Shanghai next year.
Its MD Kristina Gardin says one popular activity is a tea cooking class, where delegates learn how to cook ancient recipes with tea leaves. She advises not just to think of uniqueness in terms of one city: “The differences in flavour and content of the cities such as Shanghai versus Guangzhou are measurable.”
The Jones Lang Lassalle Hotel Survey noted that as travel networks continue to expand, organisers are also exploring new meetings destinations.
Kinnane says: “Lower labour costs give corporations an opportunity to customise an event like never before such as branded rickshaw covers, tailor-made Chinese outfits for delegates and dance routines choreographed specially for you.”
Sumarto says aside from the opportunities for organisers, in terms of sponsorship and attendee numbers, and participants, China can ensure a high level of satisfaction for delegates attending the event.
Guanxi
Pecotić says a unique attribute of working in China is the importance of interpersonal relationships, guanxi in Mandarin, which can only be initiated, cultivated and maintained through face-to-face meetings.
“So the value and potential return on investment of holding events in China is also important,” he says.
“China is a different country in terms of culture and law,” says Xu. “It is a ‘relationship’ society and counterpart organisations are essential to the success of your event.”
Kinnane says state-owned venues are hard to work with and he recommends a lot of lead time
and finding a local partner who understands the culture.
Salsbury stresses regulations require an international meeting planner to work with their Chinese counterparts as it is impossible to progress with the Government directly.
The Pacific Asia Travel Association’s Regional Director for China, Kate Chang, says: “Since the world economic downturn the Government has focused on a return on investment in the MICE sector. However, with a better understanding between the authorities and private sector we can turn the red tape into guidelines that can create positive events approved by all.”
Just like the country’s economy, China’s local meetings industry is maturing into a specialised force. As Gardin says: “China has the manpower, the properties, infrastructure and the hunger for events.”
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