By Wang Fengjuan
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Strengthening Thailand's MICE Presence in China
By Wang Fengjuan
Nopparat Maythaveekulchai, President of the Thailand Convention and Exhibition Bureau
China and Thailand are good neighbors,closely connected by culture. In 2012,bilateral relations between the two countries were reinforced with the introduction of a comprehensive strategic partnership, and as ties between China and Thailand have deepened significantly in recent years, Thailand is now considered a premier destination at the heart of the ASEAN region for Meetings,Incentives, Conventions and Exhibitions(MICE) travelers from China. Just as in tourism, China has become Thailand's number one source market.
China Report ASEAN invited Nopparat Maythaveekulchai, President of Thailand Convention and Exhibition Bureau (TCEB),to share his views with our readers.
China Report ASEAN: Would you please introduce the main functions of the Thailand Convention and Exhibition Bureau and its industry categories?
Nopparat Maythaveekulchai: Since its establishment in 2004, TCEB has been committed to driving growth, elevating quality standards and inspiring creativity in the MICE industry. TCEB strives to offer a wide range of advisory services and attractive support packages to contribute to the success and productivity of business events held in Thailand. That includes global outreach to build collaboration across a global network of business event stakeholders.
Currently, this sector comprises of four main industry categories: corporate meetings (25 percent market share), incentive travel (24 percent), international conventions (33 percent) and international exhibitions and trade fairs (18 percent).
China Report ASEAN: Can you brief us on your cooperation partners in China? Are there any particular results and highlights in terms of cooperation with Chinese clients?
Nopparat Maythaveekulchai: TCEB signed a Memorandum of Understanding(MOU) with the China Chamber of International Commerce (CCOIC) on May 28, 2016, with the objective of enhancing MICE cooperation between the two countries.
Building on this success and in recognition of the importance of cooperation in the MICE industry, TCEB, as the Thai government's official flagship body for the business events sector, always seeks out opportunities to initiate strategic partnerships with leading organizations like the CCOIC. This allows us to further build long-term competitiveness and sustainability for the service sector in Thailand and our partner's country in the international arena. The aforementioned ground-breaking MOU will serve as a vital platform for us to exchange up-to-date MICE-related information while further enhancing the awareness ofThailand's business events industry among the trade in China.
The MOU signed between TCEB and CCOIC has been initiated based on the philosophy that deeper mutual understanding and friendship between the two nations as well as enhanced human, cultural and economic exchanges will improve and enhance the MICE industry. Under its terms, TCEB and CCOIC have agreed to establish a longterm partnership in several areas and across several MICE platforms. That includes a plan to further improve and regularly exchange information on trade promotion, and guarantee a commitment to providing support,encouraging business trade missions and participating in trade events in both countries. There is also an aim to enhance and develop MICE knowledge in the two nations through information exchange and sharing of academic research activities.
TCEB has been working hard to enhance and connect with leading MICE players in the Chinese market and to attract larger events and meetings over the years. One of the main tools for that has been the on-going cooperation with the China Council for the Promotion of International Trade (CCPIT) to promote Thailand as a gateway for trade and investment. This allows us to attract both Chinese business travelers and trade pavilions to attend trade fairs in Thailand. For meetings and incentives, TCEB is targeting high quality Chinese businesses to choose Thailand as a MICE destination, putting emphasis on key Chinese business hubs such as Beijing and Shanghai as well as on economic powerhouses such as Guangzhou, Chengdu and Shenzhen that are deemed to be helping expand awareness of cities with growing economies and direct flights to Thailand,such as Hangzhou, Chongqing and Kunming.
China Report ASEAN: What kind of preferential policies does Thailand have to attract Chinese customers and to develop Thailand's convention and exhibition industry in China?
Nopparat Maythaveekulchai: To strengthen Thailand's presence as a premier meetings and incentives destination in the heart of the fast-growing ASEAN region, TCEB forecasts that the MICE cooperation with the CCOIC,together with TCEB's 2016 marketing initiatives including the “Thailand CONNECT:Our Heart, Your World” campaign, as well as other supporting strategies which will enable Thailand to welcome more business events,especially the “mega size” events from China. The first supporting strategy is the “Thailand Big Thanks!” promotional campaign that offers a financial subsidy of up to 2 million Baht (US$56,000) for groups of 2,000 or more overseas delegates who visit Thailand for three nights or longer to attend big meeting or incentive event in Thailand. Applications are open from now until September 30, 2017, and travel can take place anytime before December 31,2017.
Another strategy is the “Thailand Connect beyond the Capital” promotional campaign for traveling in Thailand, offering a financial subsidy of 1,000 baht (US$28) per delegate(maximum 300,000 baht per group) for groups of at least 100 members who visitThailand for three nights or longer to attend meetings and incentive events, while also traveling on a domestic flight in Thailand with one of TCEB's partner airlines (Thai Airways, Thai Smile Airways and Bangkok Airways). Applications are open from now until September 30, 2016, and travel can take place anytime before December 31, 2016.
In terms of international trade fairs,TCEB's marketing strategies gear towards both the visitors and the organizers. For visitors, TCEB is offering special support under the CONNECT Business campaign for trade visitor groups of 10 or more delegates who travel to attend TCEB-supported international events in Thailand. To qualify for this special support of $100 per person, the groups must stay for a minimum of three days or two nights, with a combined total of at least30 business matching appointments. For organizers, TCEB is providing special support for organizers looking to hold new events in Thailand. Recent activities were the hosting of trade promoter workshops for visitors,and the arrangements for Thai MICE entrepreneurs attending the TCEB Exhibitions Business Forum 2016 in China in April. There is also a plan to entice organizers to organize Chinese trade fairs in Thailand, which has so far already materialized in an event from Guangzhou that featured approximately 400 visitors.
TCEB has signed a Memorandum of Understanding with the China Chamber of International Commerce (CCOIC)
Looking ahead, TCEB forecasts that the rejuvenated Thailand Connect Welcome Package 2016 together with other marketing initiatives will enable Thailand to achieve a five-percent increase compared to 2015 targets, welcoming 1,060,000 business travelers and earning the Thai economy a total of 92 billion baht (US$2.6 billion) in the fiscal year 2016. Meanwhile, TCEB expects the number of Chinese business travelers and revenue earned from this important market to grow by five percent.
To date, large incentive groups from China that are confirmed to be held in Thailand between 2016 and 2017 have included the 14,000-person Infinitus China Overseas Incentive in May 2016 in Bangkok and Pattaya, the 5,500-person Pro-Health China Incentive in September 2016 in Phuket, and the 12,000-person Jeunesse Global Conference in August 2017 in Bangkok. TCEB will also be supporting the 11th China Incentives Business Travel Meeting (CIBTM), to be held in Beijing in September 2016.
China Report ASEAN: Can you introduce interactions in the exhibition industry between China and Thailand?
Nopparat Maythaveekulchai: Thailand and China have enjoyed more than 40 years of relations and mutual prosperity in which trade between the two nations now exceeds US$63 billion annually. Recognizing Thailand's potential and readiness on trade and investment, the Royal Thai Government under the leadership of Prime Minister General Prayut Chan-ocha attended the Asia-Pacific Economic Cooperation Summit in Beijing in late 2014 to discuss the establishment of the Free Trade Area of the Asia Pacific (FTAAP),among other things.
In the fiscal year 2015 (from October 2014 to September 2015), Thailand attracted a total of 1,095,995 business events visitors and generated 95 billion baht (US$2.7 billion) in revenue. From the total, there were 109,987 Chinese MICE travelers, contributing revenue of 9.1 billion baht (US$259 million), making China the top source market for MICE visitors. The momentum continued in the first half of the 2016 fiscal year (October 2015 to March 2016) when 47,455 Chinese business events travelers generated a total of 4 billion baht (US$113 million) for the Thai economy.
China is promoting the “Belt and Road”Initiative that encourages governmental and civilian capital to invest in the countries along the route, including Thailand. It is estimated that over 120 million Chinese traveled abroad in 2015, contributing $147 billion to overseas destinations. Annual growth is 16 percent. Chinese MICE as an emerging market started in 2005, and annual growth has reached 20 percent. Local online travel agents (OTA) are playing a very important role in booking and information sourcing in the travel industry. The outbound travel industry is booming. TCEB's key accounts(key MICE players) in China are CYTS, CTS,CITS, U-MICE, Grand MICE China, China Smart MICE, China Comfort Travel, GZL,Nanhu Travel, East Shanghai Travel, CITIC Travel, and BTG Beijing.
China Report ASEAN: What's the objective of the MOU between TCEB and CCOIC?
Nopparat Maythaveekulchai: TCEB and CCOIC signed the MOU in recognition of the importance of cooperation in the MICE industry in order to create long-term competitiveness and sustainability for the service sectors of the People's Republic of China and the Kingdom of Thailand in the international arena.
Under the terms of the memorandum,TCEB and CCOIC have agreed to establish a long-term partnership in several areas and across several MICE platforms, including:
- The improvement and expansion of trade promotion;
- The regular exchange of information and review on expansion of trade promotion;
- Providing support and encouraging business trade missions in both countries by using the MICE platform to launch and participate in successful trade shows,meeting industry leaders in their respective countries;
- Providing support and encouraging exchange of trade delegations and missions as well as visits by businessmen either individually or in groups;
- Assisting each other in the participation of corporate meetings, dialogues, trade fairs, exhibitions and expositions held in either of the countries;
- The enhancement and development of MICE knowledge of both countries,along with the collaboration framework to include but not limited to: exchange of material and information about the MICE industry; academic research activities sharing and shared organization of symposium,conferences, short courses and issues meetings on research.
China Report ASEAN: Could you please introduce the key highlights of MICE events from China to Thailand between 2015 and 2017?
Nopparat Maythaveekulchai: Confirming its leadership position as a preferred business events destination in Asia, Thailand will play host to a diverse line-up of confirmed major business events from China in 2016 and 2017,as well as those held in 2015, which include:
1. Mega-sized incentive events in 2015 (from Asia-Pacific): 2015 Manulife MDRT PEAK Convention (Asia-Pacific)for 1,894 delegates; Asia-Pacific Herbalife Extravaganza 2015 for approximately 20,000 delegates; Infinitus 2015 from China for 13,421 delegates; Organo Gold Asia Convention 2015 for 2,614 delegates from more than 10 countries in Asia;
2. Confirmed mega-sized incentive events in 2016 from China: Infinitus China Overseas Training in Bangkok and Pattaya in May 2016 (12,000 delegates);Pro-Health China in Phuket in September 2016 (5,500 delegates); Jeunesse Global Conference in Bangkok in August 2017(12,000 delegates);
3. Enhanced initiatives for international trade fairs: TCEB aims at attracting more businesses from both the organizers and visitors through strategic activities including the hosting of trade promoter workshop for visitors, as well as by taking Thai MICE entrepreneurs to the TCEB Exhibitions Business Forum 2016 in China in April.There is also a plan to entice organizers to organize Chinese trade events in Thailand,which has already materialized in an event from Guangzhou with approximately 400 visitors.