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May 18, 2016

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G20 a huge step forward for MICE sector

NINE years ago, Shu Tao, who already worked for the Hangzhou Tourism Commission, was appointed to work for a new department in charge of the city’s MICE (meetings, incentives, conferences and exhibitions) industry. Back then, he wondered what MICE is, but today, the MICE department he leads is busy with preparation for the upcoming G20 summit.

The international forum for the leaders of 20 major economies is a turning point in Shu’s career.

“Explaining why we recommend Hangzhou as a destination to customers becomes much easier — just tell them the city is going to hold the G20,” said the 37-year-old public servant.

As the chief of the MICE department of Hangzhou’s Tourism Commission, he oversaw the development of the MICE industry almost from scratch.

Naturally, there were meetings and conventions before Shu’s department started operation but the sector was poorly organized. “It is like we finally have a family,” one hotelier told Shu once, according to his own recollection.

Like every family, the department needs rules and guidelines. The Hangzhou government turned to the World Tourism Organization for help and cooperation.

The organization sent a panel which conducted a six-month-long research and produced a “Study of the global MICE situation and Hangzhou’s strategies,” which became the basis and a sort of “textbook” for Shu and his colleagues.

“The reason that Hangzhou worked so well in the past years is because we were on the right track from the beginning,” Shu said.

Shu and his colleagues meet hoteliers for firsthand information, organize dialogues between buyers and sellers, run databases of the city’s MICE industry, make policies, and promote Hangzhou as a MICE destination.

“But me and my colleagues working as salesmen is not enough,” Shu said. His secret weapon is to encourage every hotelier to act as MICE salesman as well, by giving discounts and organizing meetings between buyers and sellers. The change takes place gradually. The number of the city’s meetings is now the third-highest among all cities in China’s mainland, following Beijing and Shanghai. In Asia, Hangzhou’s ranking improved from No. 32 in 2014) to No. 24 in 2015.

Another fact is that more international brands are opening hotels in Hangzhou. Most of them, like MGM Grand, Conrad, Park Hyatt, Jumeirah, Fairmont and Le Meridian are not around the West Lake, Hangzhou’s most biggest tourism draw. “That proves that Hangzhou is recognized for its leisure but also business atmosphere,” Shu said.

And since Hangzhou is to hold G20, Shu’s office this year has received over 30 percent more phone calls from overseas than usual, all MICE inquiries.

“A decade ago, our hotel’s MICE business accounted for 7 percent, now it is doubled,” said Vera Wu, sales director of Hyatt Regency Hangzhou, adding that the hotel had to establish an events planning department to cope with the business.

“Ten years ago Hangzhou was not seen as an international MICE destination for there simply were not enough facilities,” said Peter Zaunmayr, general manager of Oakwood Residence Hangzhou. “But it is now, after we saw large-scale hotel projects, additional Metro stations, and more festivals.”

The city also hosts big events like the International Animation and Cartoon Festival, the West Lake International Expo, and the West Lake Marathon.

“We highlight MICE so much because it is the fastest way to internationalize a city,” Shu said.

“Tokyo, Paris, London, any big city, they all develop MICE to obtain more international exchange,” he said. “I believe in around five to 10 years, Hangzhou can be among the top 50 MICE cities in the world, along with Shanghai, Hong Kong and Kuala Lumpur.”

Vera Wu

Sales director of Hyatt Regency Hangzhou

Q: As a hotelier, how do you feel the industry has changed in recent years?

A: Ten years ago, if an international guest came to Hangzhou, there were not many hotels for him/her to choose. Now, it is the opposite. Besides, I witnessed how Hangzhou, from a city receiving incentives, turned into a MICE destination capable of holding large international meetings.

Q: What do you think about the future of MICE in Hangzhou?

A: Hangzhou has been benefitting a lot from its scenery, but in the future, the city’s Internet industry, the entrepreneurship atmosphere, and the huge Olympic Sports City that will open will definitely take the city’s MICE a step farther.

Chris Dexter

Vice president of Operations of Wyndham Grande Plaza Royale Hotels; general manager of Wyndham Grand Plaza Royale Hangzhou

Q: How do you see the city’s development as a foreigner?

A: As many people do, I knew the city for its greenery and water before I came. But lately, I see the city is also known for its business environment, and that is why we witnessed global meetings from brands like Mary Kay, IBM, and Bank of Paris.

Q: How does your hotel prepare for the G20?

A: Several things. We set up the new logo signage at the entrance, replaced carpets of meetings rooms, renovated the roof garden, equipped hotel elevators with key card security, and increased the Internet band width. Also, we lined up a vegetable garden providing organic vegetables for our Chinese restaurant.

Karen Yang

Marketing and sales director, Midtown Shangri-La Hangzhou

Q: What’s the biggest change you have seen in the hotel industry?

A: During 14 years of my working experience, I see the biggest change is that before, our office’s phone rang all day long because customers booked via call and fax, and now most of them book rooms via smart phones. Another change is that more international brands are coming to Hangzhou.

Q: How about the changes of customers and your service?

A: Before, customers took what we offer, but today, we personalize services for them. For example, we specialize food for customers who are allergic, and we prepare kids’ tooth brushes and robes for family tourists.

Q: What is the biggest challenge for your hotel during the G20?

A: Make sure everyone is safe, and nothing goes wrong.

Peter Zaunmayr

General manager of Oakwood Residence Hangzhou

Q: What’s the difference between the hotel industry in Hangzhou 10 years ago and now?

A: In 2006, you could count the number of internationally recognized hotel brands almost on one hand. The number today has increased 10 times. This placed Hangzhou on the map as an internationally recognized premier destination. But meanwhile, we as hoteliers need to bridge cultural differences and provide training to ensure we meet the expectations of both our domestic and international customers.

Q: As a hotelier, what do you think makes these changes?

A: The city has always been one of the premier leisure destinations for the domestic market, but this was not enough to compete on the international scene. The local government has made a transformation within the last decade, by adding new sightseeing areas, internationally recognized hospitality companies, the Hangzhou Metro and the general landscaping of the city to offer a more comfortable environment for all nationalities.

Q: What do you think of the future of Hangzhou’s MICE market?

A: Hangzhou has hosted many internationally recognized events in the past few years, but none compare to hosting the G20. This will be followed by Hangzhou hosting the Asian Games in 2022. Being associated with G20, Hangzhou becomes a worldwide household name. Companies, industries and governments will wish to be associated with having held an event in the same city as the G20, so let us all get ready to witness a huge step forward for the MICE business in the coming years.




 

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