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June 13, 2016

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MICE industry booms despite slowing economy

Q: How would you assess China’s current MICE market?

Andrew Musa: Between now and the end of 2018, the majority of MICE business in China is planned to be relocated to the world’s largest exhibition center, which is located here in Shanghai, the National Exhibition and Convention Center (Shanghai). The MICE market at present is still in its youth and nowhere near its full potential. With further investment in the city’s infrastructure, it will have a good future in the next few years.

Greg Findlay: The MICE market in Shanghai is vibrant and a competitive one within the city and against other attractive destinations in China and Asia. Shanghai is truly an international destination and the future is bright!

Johnson Wang: Shanghai has become one of the major MICE markets in the world. With the opening of the National Exhibition and Convention Center, the local service system is improved constantly. The airport and traffic network has laid the foundation for the city to become the world’s leading MICE market. As Shanghai is becoming a global financial and trade center, demand for international conferences, business communications, exhibitions and trade shows will grow. We believe there is a huge potential for the city’s MICE market.

Jorgen Christensen: The market is competitive, fun and exciting. There are many hotels that are able to offer interesting and fun meetings and there is still room for growth. The big question is what are the objectives of meeting planners, organizers and companies when they conduct a meeting and what do they want to get out of the meeting.

David Katemopoulos: China’s MICE market is growing and healthy although there are signs of a slowdown due to the economic downturn and the central government’s austerity program. Xiamen is a MICE destination and continues to benefit from its geographic location. Xiamen has direct flights to many countries, which makes the city an ideal MICE destination. The upgrade of Xiamen Airport and Xiamen Convention and Exhibition Center, planned direct flights to North America, new expressways, renovated local roads and newly-opened five-star hotels all made Xiamen more attractive as a MICE destination.

Q: What makes your hotel competitive, and what makes it stand out? Are there any challenges you encounter in maintaining a long-term solid growth?

Andrew Musa: As more and more hotels open in Shanghai and every hotel is vying for the same business, the MICE battle is ongoing. The Radisson Exhibition Center Shanghai is just 10 minutes’ drive from the National Exhibition and Convention Center, so our location is a big plus. Our hotel is also close to the Hongqiao International Airport and the Metro and railway stations, making it easy for our guests to commute. Another selling point for the Radisson Exhibition Center Shanghai is the extensive meeting facilities on offer, including a 600-square-meter pillarless ballroom with a wall-size LED screen. One of the challenges facing the majority of hotels in Shanghai is the lack of qualified talent. We also have an intensive on-job staff training program to meet our service standards.

Greg Findlay: The Westin Bund Center is a popular choice as a well-established and iconic hotel with excellent service and facilities that cater to local and international clients alike, with a wide range of dining options and the latest technology to please the most tech savvy of clients. The major strength we have is our fantastic location with an easy walk to the Bund so our MICE delegates can work and play with ease.

Johnson Wang: Suzhou is a close neighbor of Shanghai and our guests can reach the National Exhibition and Convention Center in Hongqiao, Shanghai within an hour by car or train. We offer high-quality, value-added services for guests attending meetings or exhibitions and we excel in number of rooms, facilities, and the Hilton HHONORS reward program. As a result of urban expansion, Shanghai and Suzhou are getting closer. It takes only 10 minutes to drive from our hotel to Suzhou International Expo Center and a subway will go from the center to Shanghai. We are a hotel for exhibitors and visitors no matter their shows are in Shanghai or Suzhou.

Jorgen Christensen: The advantage of Marco Polo Changzhou over its competitors is that this unique hotel offers stylish rooms in three different sections. All the rooms are spacious and have all the amenities, including free Wi-Fi, free mini-bar and free parking. Superior rooms and deluxe rooms make up more than half of our inventory. The Continental Club Floor has 44 superior rooms. What sets Marco Polo apart from other hotels is The Mansion, a separate section that offers guests a boutique hotel experience. With 25 premium rooms and six deluxe suites, The Mansion is ideal for board meetings and product launches as it is a detached building where services are tailor-made for clients. This is why Marco Polo will become a MICE brand in years to come.

David Katemopoulos: Le Meridien Xiamen boasts a central location and a scenic surrounding of green hills which make it a preferred MICE venue in the coastal city of Fujian Province. The hotel has many open spaces for themed events in addition to its 2,000-square-meter conference hall. The hotel recently established a 24-hour Meeting Service Team to respond to the needs of MICE organizers and answer their questions on a 24/7 basis. Our Garden Terrace and other green spaces offer meeting organizers outdoor venues for receptions, tea breaks and theme events. Le Meridien Xiamen is within a walking distance to Fulong Sports Center.

Q: Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share of the MICE market?

Andrew Musa: Our hotel is working on a number of projects at present, such as visits to fruit farms in the area, shopping excursions to the outlets, and sightseeing trips to Zhujiajiao watertown. Of course, within our hotel complex is a spa for guests to relax and unwind at the end of a busy day.

Greg Findlay: We have just completed our purpose built Outside Catering Kitchen and we are one of only a few five-star international hotels here in Shanghai that have the required government license to provide five-star outside catering for a small intimate high-end catered dinners to large MICE gala dinners offsite.

Johnson Wang: As a newly opened hotel, we will cooperate closely with Hilton’s worldwide sales office to develop the Shanghai market and provide our guests with diversified products. We plan to provide shuttle bus service to connect the hotel and exhibition venues for the convenience of our guests.

Jorgen Christensen: We will launch “Meet Marco Polo in Changzhou,” a program for meeting planners and coordinators of both companies and MICE agencies, letting them know what unique offers Marco Polo can bring to the table. Our exceptional offers can make the meeting planners and organizers shine in the eye of event participants. We have unrivaled indoor and outdoor venues that few other hotels have and we offer competitive prices and value-added services.

David Katemopoulos: Our MICE tea break and banquet menus include healthy, East-meets-West food. For smaller events (10-30 people) we will offer pop-up venues with a natural green setting and fresh air, away from an indoor venue. For business travelers, breakfast is an important part of their hotel experiences. In addition to its traditional fare, Le Meridien serves a wide range of local and regional breakfast items. Female guests receive additional amenities, such as fashion and beauty magazines, cotton pads and vanity kits. We also designed a special Discovery Map for those who have a bit of spare time to explore the city’s sights and culinary delights that are mainly known to the locals.

Q: Do you consider MICE business an important engine of future revenue or profit growth? How do you expect the overall MICE market in China to expand over the next couple of years and how do you anticipate it to impact your own business?

Andrew Musa: The MICE market will make up at least 60 percent of our overall revenue and is one of the most important markets for our future growth. Without giving away any secrets, we have made many food and beverage and leisure promotions to meet the demand in the MICE market. As mentioned earlier, the MICE market will continue to increase in the next two years and we will see this peaking in 2018.

Greg Findlay: Shanghai as an international destination continues to develop. While talking to even our most regular clients who have used Shanghai for their MICE events for a number of years, they also see that Shanghai continues to change and grow with more services and options for their delegates. For example, the many world-class restaurants that are an easy walk from the Westin to the Bund riverside.

Johnson Wang: We have our own conference facilities and we can take advantage of the boom of local exhibition industry, particularly the National Exhibition and Conventional Center, to increase our share of the MICE market. With improved transport and services in Shanghai, the MICE market is bound to grow steadily and will give a boost to hotel business.

Jorgen Christensen: We are a MICE hotel and the segment is the core of our business. Understanding the needs and expectations of companies planning for an annual event or a series of trainings or meetings is vital to our growth plan. Understanding what the clients and decision-makers are looking for is important for us to win deals with customized services. We find that even in our own industry meetings, some key elements are pivotal for the growth of an organization. We see it as a natural extension of our hospitality offering to deliver exceptional meetings and stunning events for our customers.

David Katemopoulos: The MICE business has always been an important part of Le Meridien Xiamen as it generates about 25 percent of hotel’s revenue. As a dynamic second-tier city, Xiamen will capture a larger share of China’s MICE market in years to come as it is building a new airport, a rapid transit system, and more international hotels and is opening more air routes. With the global sales networks of Starwood and the Marriott, Le Meridien Xiamen will continue to innovate MICE products and gain more market share in years to come.

Q: The Disneyland will officially open to the public on Thursday and what kind of opportunities will it bring to your hotel, and does your hotel have any special programs targeting the potentially big number of tourists flowing into the city?

Andrew Musa: Shanghai has over 24 million residents. Last month nearly 1 million of them visited Disneyland public areas, including a commercial strip of shops and its lake area even before the June 16 opening. With this kind of enthusiasm, you can imagine the number of visitors from all over China. The number of visitors to Shanghai will increase substantially after Disneyland opens. All the hotels in Shanghai will benefit. We will arrange shuttle buses to and from Disneyland and hold other activities in the hotel to make sure our guests have an unforgettable experience. We are negotiating with big tour operators to accommodate their Disneyland visitors.

Greg Findlay: Westin Hotels as a global brand has always seen families as an important to what our brand believes in. We have a real focus on catering to their specific needs with Westin Kids Club. The Westin Kids Menu focuses on healthy nutritious food for children. We have developed specific packages working with our travel industry partners to cater for the expected opportunity of Disneyland opening in Shanghai, with our Kids Club being available over the school holiday period for example, family room setups and amenities.

Johnson Wang: As it is the first Disneyland on the Chinese mainland, we have made a big splash in domestic tourism market. The amusement park will no doubt give a boost to Shanghai’s tourism market as its visitors tend to have an extended stay in the city. We are focusing on the sales channels of travel agencies and Disneyland and an organic integration of Disneyland and tourism resources in the Yangtze River Delta region. We plan to launch Yangtze River Delta travel products and promote tourism in the whole region.

Jorgen Christensen: There is no question that this will have a positive influence on the MICE industry by mixing business and leisure and offering new incentive options.




 

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