Business event planners in Asia are observing an air of caution surrounding clients’ event plans as concerns mount over an impending global recession, with even shorter lead times, a preference for cheaper destinations and more free-and-easy elements a common occurrence now.
While CWT Meetings and Events, which started 2019 on a strong footing, has yet to see “any significant dip in the volume of meetings, events and incentives so far”, its Singapore director, Petrina Goh, told TTGmice that “companies have become more cautious with their (events) spend”.
According to Goh, notable changes to their buying behaviour include offering more free-and-easy time – which relieves the burden of cost – into their incentive programmes, especially when reward trips are bound for pricey longhaul destinations such as Eastern Europe and the Mediterranean.
As well, the trend of short lead time that has plagued the industry for years now, has worsened, observed Goh. As companies struggle to have their budgets confirmed, clients are now giving notice only two months or a few weeks ahead of the event.
Clients on a tighter budget are also favouring nearby destinations. CWT Meetings and Events has recorded “a steady increase” in programmes to Thailand and Vietnam, while Dynasty Travel Singapore’s MICE division is seeing South-east Asian destinations gaining in popularity.
Dynasty Travel Singapore’s spokesperson Alicia Seah revealed that budgets for incentive events going forward are down from an average of S$1,000 (US$734) to S$2,000 per person, to S$800 to $1,500.
Daniel Chua, founder and chief executive of Singapore-based conference management agency, Aonia, predicts that “internal and external” business events will shrink in the coming months, and he blames “perception” for it.
He explained that when a client reads about an impending global economic downturn and sees his business partners or peers cutting back on expenditure, he will likely mirror the austerity measures even though his business is still thriving.
While buying behaviours for business events will change in tough times, events specialists agree that incentive trips are unlikely to be frozen even during a recession.
“Incentive trips are compulsory for sales-driven operations,” stated Chua, but added that budgets for internal incentive trips such as staff teambuilding programmes – as opposed to external ones that motivate and reward sales partners – would be manipulated more in a challenging business environment.
While agreeing that there is a firm need for incentive trips, companies today are also adopting non-travel rewards, such as gift cards, merchandise and points programmes.
Meanwhile, G2 Travel – which marked May with a massive 12,500-pax incentive event in Switzerland and Liechtenstein for Jeunesse Global’s Chinese top achievers – is maintaining a rosy outlook for its business events segment, with Al Mulenga, director of the Hong Kong office, predicting “comparable” business in 2020 to this year’s.
Mulenga said corporate business has not changed since the start of this year, and the company is still seeing emerging interest from Vietnam and Malaysia. Corporate clients in Malaysia, Indonesia and Taiwan are still set on longhaul incentive destinations, specifically the UK, Scandinavia, Italy and also Eastern Europe. Budgets for new events are also being maintained.
More than 500 operators, investors, industry, local councils and government partners have joined forces to deliver a bold new 12-year vision to encourage visitors to stay longer and spend more in the Brisbane region.
The Visitor Economy 2031 Vision for the Brisbane region targets visiting friends and relatives, holidaymakers, students, as well as major event and business travellers.
Lord mayor Adrian Schrinner said the Visitor Economy 2031 Vision, developed by Brisbane’s economic development board Brisbane Marketing, in collaboration with industry and regional tourism partners as well as all levels of government, would help unlock the potential of the Brisbane region.
“Brisbane is transforming through A$12 billion (US$8.3 billion) worth of new developments, including Brisbane’s new runway, International Cruise Ship Terminal and Queen’s Wharf Brisbane,” he said, adding that “there is potential to secure an additional A$6.5 billion a year in visitor expenditure and support 50,000 new jobs”.
“In Brisbane, we know there is more to see and do in our region than ever before, but now we need to work together to create a globally recognised Brisbane brand and remarkable experiences to give visitors even more reason to stay and spend in our region.”
The Visitor Economy 2031 Vision aims to build experiences in Brisbane, encourage brand awareness and global advocacy, as well as encourage visitors to explore the entire Brisbane region and use Brisbane as a base to explore the rest of Australia.
Schrinner said work had already started to build a globally recognised brand for the region and unearth new experiences. Some of the initiatives underway include:
A A$10 million cooperative marketing program in collaboration with Brisbane Marketing, Brisbane Airport Corporation and the State Government targeting North America and South-east Asian markets where there are direct flights into Brisbane.
An industry-owned and shared Brisbane narrative, that captures the elements and examples that make Brisbane the region of choice for a growing number of domestic and international visitors.
The recently announced Lord Mayor’s Experience Development Incentive Grant Program that supports local businesses to offer more exceptional experiences to enhance Brisbane’s appeal as a destination of choice.
Brisbane City Council’s River Access Network that has opened up opportunities for new commissionable tourism products, similar to Sealink and the Quandamooka Yoolooburrabee Aboriginal Corporation’s (QYAC) newly launched Yalingbila whale watching tour.
“This Vision is a great example of collaboration, but our ambitions for the Brisbane region over the next 12 years will only be realised through a true partnership approach where all stakeholders continue to come to the table,” Schrinner said.
Brisbane Airport Corporation’s CEO Gert-Jan De Graaff said the city was in a unique position to attract more visitors and entice them to stay longer.
“Brisbane is entering an era of extraordinary opportunity and Brisbane’s new runway is a catalytic investment that will enable significant growth in international visitors for decades to come,” he said.
Momentum for Brisbane is already building with the latest tourism figures showing record numbers of domestic and international visitors from places like Sydney, Melbourne, China and the US.
Forecasts from the Visitor Economy 2031 Vision show the combined value of international and domestic overnight visitors to Brisbane will contribute nearly 90 per cent of total visitor spend and visitors will come from regional markets, interstate capital cities and Brisbane’s top six international markets, including China, India, North America, South Korea, Japan and the UK.