- Business events track a steady comeback as Covid-related restrictions for global visitors ease
- Unique venues are ready to welcome global events once more
- South Korea’s MICE cities promise unique sights and experiences ideal for incentive programmes
The removal of many Covid-related restrictions for international visitors in early 2022 has sent events and activities bouncing back into South Korea, noted Kwon Jong Sool, executive director, Korea MICE Bureau.
Playing host to the World Gas Conference 2022 in May, Daegu welcomed 20,000 attendees and 470 companies from over 80 countries. Korea MICE Expo, Korea’s largest MICE industry event, is also slated to return in-person in Incheon from November 9 to 10 this year.
It is prime time for the world’s planner community to remember why South Korea is one of the top destinations for business gatherings – the country boasts world-class event infrastructure, is a safe and sustainable destination, and offers a myriad of unique sights and experiences across various cities.
Organisers in favour of creative event venues are spoilt for choice, from a repurposed old factory to a unique floating convention centre.
Seoul
Seoul is home to the Floating Island Convention, minted as a Korea Unique Venue, for planners who want to host unforgettable events in an unusual location that promises impressive views of the famous Hangang River.
Along with convention facilities and a floating media art stage incorporated with a huge LED screen, the cutting-edge design of the venue, which consists of three man-made islands, makes the Floating Island Convention optimal for banquets, conventions, symposiums, product launches and performances.
The second floor main convention hall is equipped with an under-floor lift large enough to hoist a car into the auditorium.
Another worthy Korea Unique Venue option is the National Museum of Korea, which offers a collection of auditorium, conference and lecture halls that planners can utilise.
For a rare peek into the work spaces of politicians, top achievers on an incentive travel reward can tour the South Korean presidential residence, Cheongwadae (Blue House) in Seoul, which is now open to the public.
Incheon
Panoramic 65 at Oakwood Premier Incheon is a Korea Unique Venue that will excite guests. The venue sits 65 storeys up in Incheon city, offering sweeping sea views by day and captivating skyline by night.
The stylish multi-purpose space includes F&B amenities, semi-private rooms, and a hall. It is perfect for cocktail receptions, intimate parties and corporate banquets.
Yet another memorable venue option in Incheon is CoSMo40, a repurposed 40-year-old deserted factory building that is today a compelling space for creative events. The venue’s contemporary architecture blended with industrial chic allows organisers to design a range of events, from art exhibitions to performances.
For an all-in-one event destination, Paradise City is an attractive consideration. The integrated art-tainment resort boasts a luxury hotel, high-end spa facility, hip club, theme park, performance hall, shopping venues, convention spaces, art gallery and glitzy casino – all under one roof.
Spanning an area of 13,000m², Cimer is the resort’s premium spa where visitors can have a one-of-a-kind wellness experience that blends European sensibilities with Korea’s unique relaxed jjimjilbang (public bathhouse) culture.
Elsewhere in Incheon, Songdo ConvensiA, host venue of the upcoming Korea MICE Expo, impresses as an eco-friendly international conference facility with state-of-the-art capabilities.
Jeonju
Event organisers who prefer a traditional setting will be delighted by the Royal Room of King, a Korea Unique Venue, in Jeonju. Surrounded by awe-inspiring mountains, the hanok-styled hotel is equipped with a modern convention centre, seminar hall, as well as F&B offerings.
Visitors keen to don the traditional Korean outfit, hanbok, and explore Korean wine-making can drop by Jeonju Hanok Village and Jeonju Korean Traditional Wine Museum respectively.
Yeosu and Suncheon
Yeosu Expo Convention Center is a planner’s dream come true, thanks to its accessible and massive spaces that are complemented by hospitality offerings nearby and splendid waterfront views.
Yeosu gained global attention as the host city of the 2012 World Expo, which drew about seven million visitors from around the world. The port city and its numerous islands exude the charms of a scenic coastal retreat, making it a popular incentive travel destination.
A must-visit here is the Arte Museum Yeosu, which dazzles with mind-blowing immersive digital exhibits, layered with impactful visuals, sensuous sounds, and elegant fragrances.
In close proximity is the Suncheonman Bay Wetland Reserve, one of the preserved estuary ecosystems in South Korea. It is endowed with many species of plants and a natural habitat for over 140 species of birds – another great incentive travel option for top achievers eager to explore nature.
Gwangju
Celebrated as the cultural and artistic hub of South Korea, Gwangju is home to Asia Culture Center and Gwangju Traditional Culture Center.
A confluence of international art and cultural exchange, Asia Cultural Center, another Korea Unique Venue, provides large-scale complex facilities for exhibitions, performances, educational events, as well as an outdoor area for other creative line-ups.
To immerse in Korean culture, corporate groups can visit Gwangju Traditional Culture Center to try their hand at the gayageum, a Korean zither, or learn to sing a folk song.
Ulsan and Daegu
Two new venues opened their doors in Ulsan and Daegu last year.
Ulsan Exhibition and Convention Center (UECO), which offers 43,000m² of flexible spaces for events of all sizes, is recognised as a catalyst for the metropolitan city’s advancement as a MICE hub. It is conveniently located a 10-minute walk from KTX Ulsan Station, from which event delegates can access Seoul in two hours and Busan in 20 minutes by KTX.
Over in Daegu, the recent expansion of EXCO’s (Daegu Exhibition & Convention Center) 2nd Exhibition Hall (East Wing) has elevated the centre to a global-standard facility. It now meets the 30,000m² space requirement to host large-scale international events.
Kwon told TTGmice: “Post-Covid-19, delegates to South Korea can expect to find a dynamic, engaging destination that is safe, secure, sustainable and fully-equipped to host events of any kind.”
Global travel prices are predicted to continue to increase in the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast, published by CWT and the Global Business Travel Association (GBTA).
Rising fuel prices, labour shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth, according to the report, which uses anonymised data generated by CWT and GBTA, with publicly available industry information, and econometric and statistical modelling developed by the Avrio Institute.
Macroeconomic influences
The world economy shrank 3.4% in 2020 in one of the worst declines since World War II. Service sectors, including travel and hospitality, were hit especially hard, but the global economy recovered briskly, rising off the lows of 2020 and increasing 5.8% in 2021.
Economic growth is moderating as the recovery lengthens, although another recession is a growing concern. The current base case scenario for 2022 is for 3% growth, followed by 2.8% growth in 2023. Cautionary notes also highlighted in the 2023 Global Business Travel Forecast, highlight the three main forces exerting pressure on the economy and the business travel industry. These include Russia’s invasion of Ukraine coupled with other geopolitical uncertainties, inflationary pressures that are pushing costs higher, and the risk of further Covid outbreaks that could restrict business travel.
Conversely, with businesses ranking sustainability among their top priorities and reflecting the accelerated importance of combating climate change, the report highlights greater visibility at the point of sale for greener travel options, as well as carbon foot-printing, and environmental impact assessment is an opportunity for the travel industry to actively assist in responsible choice-making.
Meetings and events
Prices have increased in all regions across most categories of spend, fuelled by pent-up demand, a desire to build company culture and an uncertain economic outlook. The cost-per-attendee for meetings and events in 2022 is expected to be around 25% higher than in 2019, and it’s forecast to rise a further 7% in 2023.
Alongside pent-up demand, corporate events are now competing with many other types of events that were cancelled in 2020. And, with many companies having given up office space during the pandemic in favor of remote working, they are now booking meeting spaces when staff gather in person, further fuelling demand.
Shorter lead times for events, varying from one to three months versus six to 12 months, are also contributing to this perfect storm, perhaps underscored by corporate concerns that the situation they face today could change very rapidly. This is particularly noticeable within Asia Pacific, which has been slower than other regions to re-open post-pandemic, with ongoing restrictions in China prompting clients to make sure their events can go ahead, and as quickly as possible.
Air
Business travel airfares fell over 12% in 2020 from 2019 followed by an additional 26% decline in 2021. Economy ticket prices fell over 24% from 2019 to 2021, while premium tickets fell 33%. Prices are expected to rise 48.5% in 2022, but even with this steep price increase, prices are expected to remain below pre-pandemic levels until 2023. Following an increase of 48.5% in 2022, prices are expected to rise 8.4% in 2023.
Rising demand and continued price rises on jet fuel, which have seen prices more than double in some markets to over $160/barrel according to S&P Global, are putting upward pressure on ticket prices.
Premium class tickets comprised over 7% of all tickets purchased in 2019. The share of premium class tickets fell to 6.5% in 2020 and to 4.5% in 2021 but have started to rise in 2022. Through the first half of the year, premium tickets made up 6.2% of all tickets purchased. A rising share of premium class tickets will result in higher average fares as average ticket price comprises economy and premium.
International and cross-border bookings are recovering across most regions which will result in a higher share of international ticket bookings and a corresponding higher average ticket price despite uncertainties caused by the war in Ukraine. Following two years of minimal to no expenditure, business travellers are likely to be willing to spend more on tickets, especially as availability reduces due to labour shortages. This upward trend is largely due to widespread vaccine rollouts and border re-openings.
Hotel
Hotel prices fell 13.3% in 2020 from 2019 and a further 9.5% in 2021, however the report expects them to rise 18.5% in 2022 followed by an 8.2% lift in 2023. Hotel prices have already eclipsed 2019 levels in some areas such as Europe, the Middle East & Africa and North America and are expected do so globally by 2023.
Hotel rates have risen sharply in parts of the world including a 22% rise in North America – and a forecast 31.8% across Europe, the Middle East & Africa – driven by an accelerated recovery coupled with continued capacity constraints.
Hotel rate increases were initially driven by strong leisure travel in 2021 but group travel for corporate meetings and events is improving and transient business travel is similarly gaining healthy pace, putting further pressure on average daily hotel rates.
Ground transportation
Global car rental prices fell 2.5% in 2020 from 2019, before rising 5.1% in 2021. Prices are expected to increase 7.3% in 2022, hitting new highs, and rise a further 6.8% in 2023.
The vehicle industry remains capacity constrained and rental agencies which reduced fleet sizes in the wake of the pandemic, have not yet fully recovered – due in part to component shortages and supply chain disruptions that have reduced global auto production.
Rental agencies have reverted to buying used vehicles to increase fleet sizes and are keeping their vehicles longer. Some agencies are also buying vehicles from auto-makers outside of their historically supported brands.
Skyrocketing prices, vehicle shortages and the need for visibility into carbon emissions from door-to-door are driving corporate travel managers to factor ground transport into full trip planning from the beginning. This is especially true when factoring in the inclusion of electric vehicles, and while widespread adoption may still be a few years away, personal preference should not be underrated.