EIBTM Trend Watch Report 2014

18-20 November 2014 Barcelona, Spain
EIBTM
EIBTM 22014
014
TRENDS
TRENDS W WATCH
ATCH RREPORT
EPORT
BY
BY RROB
OB DDAVIDSON
AVIDSON
EIBTM
EIBTM Industry
Industry AAnalyst
nalyst
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INTRODUCTION
INTRODUCTION

Readers of this years EIBTM Trends Watch Report will certainly notice the upbeat tone of
confidence throughout the pages of this review of our industrys performance during the past 12
months and the outlook for 2015. That confidence is justified by the findings of most of the sources I
have used in the compilation of this report, and it undoubtedly comes as a result of the improving
situation in some key national economies this year. But it also reflects the fact that many in the
meetings and events industry are already experiencing improving orders for future business.
meetings and oeur
And although vents industry
industry has anre
ot aylready experiencing
et returned improving levels
to pre-recession orders
of faor future
ctivity, it bis
usiness.
clear that, for
now at least, we have navigated the economic downturn successfully and confidence levels have
And although our industry has not yet returned to pre-recession levels of activity, it is clear that, for
been rising as a consequence of that achievement.
Nevertheless,
been rising as tahis has been a o
consequence year in awchievement.
f that hich the cautious optimism of many meetings and events
professionals has increasingly been tempered by an awareness of risks arising from the impacts of
Nevertheless, this has been a year in which the cautious optimism of many meetings and events
geopolitical developments which may still present as yet unknown threats to the global economic
recovery.
recovery.
This report is designed to help you benchmark your own performance in 2014 and anticipate likely
developments in the market in the year ahead.
I hope that you in
developments wtill
he find it useful
market in the as ywear
ell ahead.
s interesting.
I hope that you will find it useful as well as interesting.

Rob Davidson
Rob Davidson
EIBTM Industry Analyst
EIBTM Industry
Managing Analyst
Director, MICE Knowledge
Managing Director, MICE Knowledge

www.miceknowledge.com
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2


CONTENTS
INTRODUCTION

THE GLOBAL ECONOMIC SITUATION IN 2014

CORPORATE
used
have MEETINGS
in the compilation - PERFORMANCE
of this report, and it undoubtedly OF KEY aMs aARKET
comes result oSf ECTORS
the improving
situation in some key national economies
Information this year. But it also
and Communications reflects the fact that many in the
Technology
Automotive
Pharmaceutical
been rising as a cConstruction
onsequence of that achievement.
ASSOCIATION
geopolitical developments CwONFERENCES
hich may still present as yet unknown threats to the global economic
recovery.

INCENTIVE
developments in the mTarket
RAVEL in the year ahead.

REGIONAL VARIATIONS

Rob Davidson
OUTLOOK FOR 2015

CONCLUSION
SOURCES
3
2


THE GLOBAL ECONOMIC SITUATION IN 2014
INTRODUCTION

There was an unmistakable air of optimism at this years World Economic Forum conference in
Davos, Switzerland, for the first time since the global economic crisis. Delegates from many of the
worlds advanced economies had every reason to be cheerful, as year-on-year figures pointed
towards growth, albeit at modest levels. And most forecasters were predicting higher rates of
growth for 2015. But the performance of individual countries continued to vary widely, and most of
the growth in the global economy was due to the performance of the emerging economies.
meetings
According atnd o Tehe
vents industry the
Economist, are Eauro-zone's
lready experiencing feeble recovery improving
since otrders for future
he spring business.
of 2013 came to a halt
in the second quarter of 2014, when GDP stagnated. There were some bright spots, but the Euro
area was held back by poor performances in its three biggest economies. GDP fell in Germany, the
biggest, and Italy, the third largest, by 0.2 percent; France, the second largest economy, stagnated.
The weakness in the Euro-zone is arousing fears that the 18-country currency club may fall into
deflation. Inflation
Nevertheless, this hfas ell bto just
een a 0year
.4 percent
in which in tJhe
uly, well below
cautious the European
optimism of many Cm entral Bank's
eetings and e(ECB)
vents
target of almost
professionals has 2i ncreasingly
percent. Even though
been tempered the ECB by aadopted measures
n awareness in Jaune
of risks to from
rising oster the
activity - of
impacts
lowering i nterest r ates a nd a nnouncing a p lan t o s timulate
geopolitical developments which may still present as yet unknown threats to the global economic b ank l ending t o t he p rivate s ector - it
remains under pressure to do more to counter low inflation. Outside the Euro-zone, the UK
recovery.
economy was expanding at over 3 percent.
Many of those iDn avos
developments the m delegates
arket in tw ith
he the abhead.
year roadest smiles on their faces may have been Americans
anticipating a remarkably successful year for their countrys economy. The US economy grew at its
I fastest
hope trhat
ate yfou
or tw ill faind
wo nd ait hualf
seful as win ell
years the as siecond
nteresting. quarter of 2014 after a broad-based pick-up in
activity,
b oosting h opes o f a s ustained r ecovery. I t was the best performance from the worlds
largest economy since the fourth quarter of 2011, driven by stronger export growth and business
spending than previously estimated. Consumer spending, which accounts for more than two-thirds
of the US economy, increased by 2.5 percent in the second quarter of 2014, and business investment
Rob Davidson
in equipment rose by 11.2 percent (The Guardian). The Economist Intelligence Units Global Forecast
confirms
EIBTM that the
Industry improvement in the US economy from April to June was broad-based, with
Analyst
consumer spending, fixed investment, net exports and government spending all recovering well,
while the US labour market also performed very strongly this year. Closely associated with the
improving US economy is the considerable strengthening of the US dollar which may yet turn out
to be this years most significant financial development, with consequences for all of the worlds
economies and industries including meetings and events.
But the performance of the w orlds emerging nations has been more mixed this year, with slowing
rates of growth in some of them,
particularly in former engines China and Brazil. Growth rates are
still at levels that are enviable when compared with those of the developed economies, but are in
some cases well below those of a few years ago, and as a result, growth projections f or 201415
have been marked down for s ome of the major emerging market economies.
According to the International

Monetary Fund, against the background
of a slight slowing in the
Chinese economy, the authorities there have resorted to limited and targeted policy measures to
support activity in the second half of the year, including tax relief for small and medium enterprises,
accelerated fiscal and infrastructure spending, and targeted cuts in required reserve ratios.
4
2


The Economist Intelligence Units observation is that the economy of India is accelerating again after
a two-year lull, with the new, business-friendly government boosting investor confidence. But they
INTRODUCTION
add that they have yet to see evidence to suggest that India can return its economy to the 8 percent
growth that it regularly achieved in the pre-crisis years.

Brazils disappointing economic performance in 2014 is attributed to various causes: poor
Readers
policymaking, of this low
years EIBTM Trends
investment Watch R
and capacity eport will c(Economist
constraints ertainly notice the upbeat
Intelligence tone
Unit) and otf ighter
confidence throughout
financial conditions and tche pages ow
ontinued f teakness
his review in bousiness
f our industrys
and consumer performance
confidence during the past 12
(International
months a nd t he o utlook f or 2 015. T hat c onfidence
Monetary Fund). These weaknesses have held back investment and dampened consumption i s j ustified b y t he f indings o f m ost o f the sources
growth I
have used
in Brazil in ytear.
this he compilation of this report, and it undoubtedly comes as a result of the improving
The Russian
meetings and economy is also slowing,
events industry are already due eto the geopolitical
xperiencing tensions
improving orders surrounding
for future rb ecent
usiness. events in
Ukraine. Tensions with the West over the crisis in Ukraine have scared away investors, weakened
And
the raouble,
lthough and our industry
forced the hcentral
as not byank et returned
to raise rto pre-recession
ates. Deloitte notes levels of aoctivity,
that ne response it is clear that, for
of the
now
Russian industries has been a shift away from their dealings with the West and the forging ohf ave
a t l east, w e h ave n avigated t he e conomic d ownturn s uccessfully a nd c onfidence l evels
been rising
stronger as al inks
trade consequence
with China. of Bthat
usiness achievement.
transactions such as the recent $US 400 billion Gazprom
deal with China
Nevertheless, brings
this has bReen
ussia a cyloser
ear in to wlhich
ucrative
the cm arkets oin
autious Asia. Better
ptimism economic
of many meetings relations
and events with
countries l ike C hina, I ndia, J apan, a nd I ndonesia m ight j ust
professionals has increasingly been tempered by an awareness of risks arising from the impacts of h old t he k ey t o R ussias l ong-term
economic progress.
geopolitical developments But even which as the country
may taps opportunities
still present as yet unknown in the East, tio
threats t its he
clear that
global Russia
economic
needs
recovery. t o m end f ences w ith t he W est f or t he s ake o f g lobal e conomic a nd p olitical s tability. The
Economist Intelligence Units estimate is that the Russian economy - already weak before the crisis -
This
will grrow
eport by is just
designed to help
0.4 percent you
this benchmark your own performance in 2014 and anticipate likely
year.

Mark Cooper - CEO of IACC (International Association of Conference Centres)

2014 feels different to 2013. Different because the members of
IACC seem to have moved from a feeling of stabilisation in the
market, to one of planning for growth. Our members increasingly
Rob Davidson
seem to be keen to represent a global community of conference
EIBTM Industry Analyst centres at trade shows in preference to attaching themselves to
destinations. IACC has more members who are currently in the
Managing Director, MICE Knowledge build phase of a new conference centre or who have opened during
2014 than we have seen for some time. Investment is returning,
including investment in the infrastructure and development of
meeting environments. IACC conference attendee numbers are also
growing, which tells us that members are increasingly prepared to
invest in intelligence, staff development and innovations.

Taking the worlds economy as a whole, Asia will continue to provide the largest share of expansion,

but attention is also increasingly focused on accelerating growth being experienced by many
countries in the continent of Africa, particularly in the Sub-Saharan nations, with an estimated 3.6
percent growth rate in 2014 and 4.5 percent expected in 2015. Strong investment in the extractive

industries and links to fast-growing economies in Asia are playing their part in boosting African
economies. But Africas attraction increasingly stems from its new middle class - people are its
biggest asset. Half of all Africans are under 20, and are rapidly moving to cities: more than 40

5
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percent of Africans now live in urban areas. One day, according to the EIU report Growing African
Cities, the workforce could be as dynamic and vital as Asia's especially compared with that of
percent
ageing Eo urope.
f Africans With Chinese
now companies
live in urban areas. building
One dray, oads and upgrading
according to the Erailways,
IU report ports
Growing and aAirports
frican all
over
Cities, the workforce could be as dynamic and vital as Asia's especially compared with that oBf y
t he A frican c ontinent, m any i ndustries a re e xperiencing r apid g rowth, i ncluding t ourism.
INTRODUCTION
2017, the
ageing number
Europe. of Cvhinese
With isitors tco ompanies
sub-Saharan building Africa is set atnd
roads o rueach 42 million.
pgrading railways, Clearly,
ports aa large
nd airports all
proportion o f t hem w ill b e a ttending m eetings a nd o ther
over the African continent, many industries are experiencing rapid growth, including tourism. By b usiness e vent.

2017, the
To sum up ntumber
he global of veisitors
conomic to ssub-Saharan
ituation as wAe frica is set tto he
approach reach
end 4o2
f 2m014,
illion.
a qCuotation
learly, a lfarge
rom
proportion
Readers o f o
t f
his t hem
y w
ears
Deloittes Global Economic Outlook: ill
E b e
IBTM a ttending
T rends W m eetings
atch R eport a nd wo ther
ill c b
ertainly usiness n e vent.
otice t he u pbeat t one of
To sum u p the global economic situation abs
e w e approach at he end of 2014,
of ma odest
quotation from
months aThe global
nd the economy
outlook appears
for 2015. That to settling
confidence is into
justified new normal
by the findings growth
of most in sources I
of the
Deloittes G
developed lobal E conomic
economies, O utlook:
have used in the compilation of sttabilization
his report, aond f growth in emerging
it undoubtedly economies,
comes and
as a result of at he
decline in
improving
situation systemic
The global
in some r isks e manating
economy
key national aeppears f rom
conomies p olicy
to bte m
settling
his istakes.
year. Binto O n t he
ut it aa nlso o ther
ew reflects h and,
normal tohe f m g eopolitical
odest
fact growth
that r isks
many in the a ppear
meetings to ahnd
developed ave reared
events their heads
economies,
industry asre lately teo xperiencing
tabilization
already a f dgegree
o rowth win e ehmerging
avent seen
improving oerders in sfome
conomies, taime.
nd ab Tusiness.
or future droubles
ecline in in
Ukraine, Irraq,
systemic isks aend the South
manating China
from Sea
policy mhistakes.
ave led Oto n cthe
oncern
other about
hand, the potential rimpact
geopolitical on
isks appear
And although
economic our iondustry
utcomes. has not yet returned to pre-recession levels of activity, it is clear that, for
to have reared their heads lately to a degree we havent seen in some time. Troubles in
Ukraine, Iraq, and the South China Sea have led to concern about the potential impact on
rising
been as a consequence of that achievement.
economic outcomes.


recovery.
report is designed to help you benchmark your own performance in 2014 and anticipate likely
This


Rob Davidson




6
2


CORPORATE MEETINGS - PERFORMANCE OF KEY MARKET SECTORS
CORPORATE MEETINGS - PERFORMANCE OF KEY MARKET SECTORS
INTRODUCTION
In the context of corporate events in particular, our industrys fortunes largely depend upon the

performance of a number of key sectors in the economy, as the volume of meetings, product
launches,
In the context incentive trips and
of corporate training
events in psessions
articular, generally
our industrys reflects the levels
fortunes of economic
largely depend u activity,
pon the
innovation
performance and of parofitability
number of okf ey these
sectors market segments.
in the economy, The
as Information
the volume aond f mCeetings,
ommunications product
Readers
Technology,
launches, of incentive
this years
Automotive, EIBTM
trips aPnd Ttraining
rends Wsessions
harmaceutical atch Report
and Cgonstruction
enerally will certainly industries
reflects tnhe
otice the ouf pbeat
create
levels econsiderable
conomic tone aoctivity,
f demand
confidence
for business
innovation athroughout
events
nd profitability the
of all poages
types, and
f these of ttmhis
his srection
arket eview oof f othe
segments. ur irTndustrys
eport will peerformance
he Information xamine and their during
individual
Communications the past 12
months
performances
Technology, a nd t he o utlook
over the past
Automotive, f or 2 015.
year.
Pharmaceutical T hat c onfidence i s j ustified b y
and Construction industries create considerable t he f indings o f m ost o f the sources I
demand
have
for used in etvents
business he compilation
of all types, of athis
nd trhis
eport, and iot f utndoubtedly
section he report will comes
examine as a trheir
esult individual
of the improving
performances over the past year.
meetings
Information and events
and industry are aTlready
Communications echnology experiencing improving orders for future business.

And although
According to to ur yiears
his ndustry KPMG has Tnechnology
ot yet returned to pO
Industry re-recession
utlook Survey, levels of activity,
a survey of US it technology
is clear that, for
Information
now a t l east, awnd
e Cave
h ommunications
n avigated t he Technology
e conomic d ownturn s uccessfully a nd c onfidence levels hgave
industry leaders in the US, the US itself is gaining momentum as the top market for revenue rowth,
been
followed rising as a consequence of that achievement.
According bty o Cthina. Revenue
his years KPMG expansion
Technology in some emerging
Industry Outlook markets,
Survey, a as ource
survey oof f industry
US technology strength in
recent
industry years,
Nevertheless, leaders htas
his shlowed
in tas
he bUeen due
S, a tyo
the U eS conomic
ear itself
in which is gaaining
tnd
he pcolitical
momentum
autious changes.
optimism as tRhe
eflecting
of tm
op any
market fmavourable for revenue
eetings conditions
and growth,
events in
parts o f E urope,
followed by China.
professionals t he U K ( at 4
Revenue expansion
has increasingly 2 p ercent,
been tempered a s harp
in some y ear-over-year
emerging
by an awareness markets, i ncrease)
of raisks
source m oved
arising t o
of firom
ndustry t hird p lace
the simpacts o
trength oin n t he
f
geopolitical developments which may still present as yet unknown threats to the global economic in to
revenue
recent y g rowth
ears, h as m s arket
lowed l ist.
d I
ue n t t erms
o e conomic o f a ctual
a r
nd pevenue
olitical g
c rowth,
hanges. d Rata &
eflecting a nalytics
f avourable ( D&A) i
c s e xpected
onditions
become
parts of Ethe
recovery. urope, leading
the sUource
K (at 4o2 f tpechnology
ercent, a ssharp ector revenue growth
year-over-year over the
increase) next ttwo
moved years,
o third outpacing
place on the
mobile
revenue and cloud
growth mrarket
evenue expectations.
list. In terms of aPctual ositioned
revenue as ag srowth,
trategic enabler,
data D&A is
& analytics helping
(D&A) is ecxpected
ompanies to
This
to r eport
anticipate
become i s d esigned
customers
the leading t
source o h elp
needs y ou b enchmark
and to increase
of technology sector y our
operational o wn
revenue growth p erformance
efficiencies. over the i n 2 014
Many a nd
next ctompanies a nticipate
wo years, aore l ikely
utpacing
developments
planning
mobile and to cinvest i n t he
loud rievenue m arket i n
n D&A teo xpectations. t he y
mine this data ear a head.
for actionable
Positioned insights eanabler,
as a strategic nd to reinvent
D&A is hbelping usiness models
companies
that
to a w ill
nticipate b e c ompetitive
c ustomers d nifferentiators.
eeds a
I hope that you will find it useful as well as interesting. nd t o i N evertheless,
ncrease o perational t he g rowth
e fficiencies. o f c loud M a
any nd c m obile
ompanies r evenue,
a re
paced
planning by tso
trong
invest demand
in D&A ftor o mapps ine athis
nd pdlatforms, continues
ata for actionable to exceed
insights and ttechnology
o reinvent cbompany usiness models
expectations a nd t o f oster i nnovative p roducts,
that will be competitive differentiators. Nevertheless, the growth of cloud and mobile revenue, s ervices a nd b usiness m odels.
paced by strong demand for apps and platforms, continues to exceed technology company
Regarding employment in their sector, US technology industry leaders surveyed by KPMG believe
expectations and to foster innovative products, services and business models.
that the US, India, and China will be the leading markets for technology jobs growth between now
Rob Davidson
and 2016. Beut
Regarding other countries
mployment in their wsith high
ector, UeS xpectations
technology fior employment
ndustry leaders gsurveyed rowth are by CKanada,
PMG btelieve he UK
and
that Gthe
EIBTM ermany.
US, India,
Industry and China will be the leading markets for technology jobs growth between now
Analyst
and 2016. But other countries with high expectations for employment growth are Canada, the UK
Within Europe,
Managing Director, much MoICE
f the expansion of the ICT industry may be supported by investment from the
Knowledge
and Germany.
US. According to the Financial Times, American venture capital groups are investing more into
European
Within Europe, technology much ostart-ups,
f the expansion as US investors
of the ICT look
industry to cash in obn
may e tshe rise of tbhe
upported y icnvestment
ontinents ffrom ledgling the
digital g roups. I ndustry
US. According to the Financial e xecutives a nd i nvestors h ave p ointed
Times, American venture capital groups are investing more into t o t he r elative l ack o f s uch growth
funding as taechnology
European reason for why Europes
start-ups, as US tiechnology
nvestors look centres fail in
to cash to opn roduce
the rise as
om f tany
he clontinents
arge companies fledgling as
Silicon gVroups.
digital alley. TIndustry
he number executives
of new IaCT nd ciompanies
nvestors hcave reated in London,
pointed to the fror example,
elative lack ohf as risen
such sharply
growth
over the aps ast
funding few years,
a reason for wbhy ut Etheir
uropes potential
t echnology to expand
c entres has fail
been
t o limited
p roduce paartly
s m due large
any to the c lack of later
ompanies as

stage funding
Silicon Valley. aTvailable he number to UoK f n tech
ew IsCT tart-ups.
companies US funds
created have
in bLeen
ondon, stepping in to fill hthis
for example, as rgisen
ap. sharply

over the past few years, but their potential to expand has been limited partly due to the lack of later
Over the past few years, American capital has flooded into the European technology scene. In 2010,
stage funding available to UK tech start-ups. US funds have been stepping in to fill this gap.
European start-ups received U S$ 808 million during growth funding rounds, either solely from US
investors
Over the poast
r through
few years, joint Aimerican
nvestments capital between American
has flooded into atnd
he European vtechnology enture groups. scene. By In
2013,
2010,

European start-ups received US$ 808 million during growth funding rounds, either solely from yUear.
this f igure h ad r isen U S$ 1 .9 b illion a nd i s p rojected t o r ise t o U S$ 3 .5 b illion b y t he e nd o f t his S
investors or through joint investments between American and European venture groups. By 2013,

this figure had risen US$ 1.9 billion and is projected to rise to US$ 3.5 billion by the end of this year.
7
2
7


Automotive
Automotive
According to Euler Hermes, the China and the US alone account for more than 55 percent of global
car sales. In 2013, car sales in China returned to double-digit growth and hit a record level of almost
INTRODUCTION
18 million uto
According
position
nits sold.
Euler The country
Hermes, thus acnd
the China onsolidated
the US alone its palace as tfhe
ccount or lm
argest
ore than market
55 piercent
n the woorld, a
f global
car sales. hIeld since c2ar
n 2013, 010,
sales and in w here rW
China estern tm
eturned o anufacturers
double-digit g- rowth via joint ventures
and with lCevel
hit a record hinese
of aslmost
tate-
owned
18 m akers - h ave a 6 0 p ercent m arket s hare. I n 2
million units sold. The country thus consolidated its place as the largest market in the world, a 014, w e e xpect g rowth t o c ontinue a t a round
+10 percent
position held in a market
since 2010, that and wwill head
here Wtestern
owards m2anufacturers
0 million vehicles. - via joint ventures with Chinese state-
owned makers - have a 60 percent market share. In w2ill
Readers o f t his y ears E IBTM T rends W atch R eport certainly
014, notice
we expect the upbeat
growth tone oaf t around
to continue
+10 percent in a market that will head towards 20 million vehicles.
months
Figure 1. aY nd the outlook
ear-on-year for 2015.
changes in Tthe
hat vcehicles
onfidence market is justified by the findings of most of the sources I

situation in some key national economies 2013 this year. But it also reflects the fact t2014 hat many in the
Figure 1. Year-on-year changes in the vehicles market
meetings and events Growth
industry Rate
are (a%) Units Sold improving
lready experiencing Growth Rate
orders for (f%)
uture business. Units Sold
2013 (million) 2014 (million)
And
China a lthough o ur i ndustry h
+15.7 as n ot y et r eturned t o p re-recession
18 S old l evels o
+10 f a ctivity, it is clear that,
20 for
Growth Rate (%) Units Growth Rate (%) Units S old
now a t
United States l east, w e h ave n avigated
+7.5 t he e conomic d ownturn
16 s uccessfully a nd
+4 c onfidence l evels h
16.5 ave
(million) (million)
been rising
Europe as a consequence -1.8 of that achievement. 12.3 +3 12.6
China +15.7 18 +10 20
Russia
United States this has been -5.5
+7.5 2.8
16 -2
+4 2.7
Nevertheless, a year in which the cautious optimism of m any meetings and 16.5 events
India
Europe -10
-1.8 been tempered by 1.8
12.3 +4 1.9
professionals
Brazil has increasingly -1 an a wareness of risks
2.76
+3
arising from the impacts
+3
12.6
2.85 of
Russia -5.5 2.8 -2 2.7
geopolitical
India developments which may still present as yet unknown threats to the global economic
-10 1.8 +4 1.9
recovery.
Brazil -1 2.76 +3 2.85
Source: Euler Hermes/Anfavea

Source: Euler Hermes/Anfavea
Figure
I hope 1that shows
you tw he
ill yfear-on-year
ind it useful cahanges s well ais n interesting.
the vehicles market for key countries. Sales in the US

increased by +7.5 percent to nearly 16 million units in 2013 and should grow more moderately in
2014, at around +4 percent for 16.5 million units sold. A salient point from 2013 is the recovery in
Figure 1 shows the year-on-year changes in the vehicles market for key countries. Sales in the US
the
market
increased by shares
+7.5 poercent f US mtanufacturers
o nearly 16 maillion nd the ongoing
units in 2013 competitiveness
and should grow gains by tm
more he US car in
oderately
industry.
2014, at aOround nce again profitable,
+4 percent for 1U6.5
S cm
armakers
illion units are sold.
replacing and psoint
A salient trengthening
from 2013 their product
is the recovery range
in to
Rob
boost D avidson
t heir i nternational d evelopment.
the market shares of US manufacturers and the ongoing competitiveness gains by the US car
industry.
EIBTM Once aA
Industry gain profitable, US carmakers are replacing and strengthening their product range to
nalyst
The European market hit bottom in 2013 with 12.3 million vehicles sold, down by -1.8 percent.
boost their international development.
Nevertheless, monthly data show signs of a rebound in 2014. With expected growth of +3 percent
this
The yEear, the mmarket
uropean arket chould see a sin
it bottom ales volume
2013 with 1o2.3
f 12.6 - 12.7
million million suold,
vehicles nits.
dW hile
own this
by incipient
-1.8 percent.
recovery is welcome,
Nevertheless, monthly the
data level of ssales
show igns in
of Eaurope is expected
rebound in 2014. tW o rith
emain very low
expected compared
growth of +3 pwercent
ith the
16
this year, the market could see a sales volume of 12.6 - 12.7 million units. While this incipient will
m illion a nnual s ales i n 2 007. P roblems o f o vercapacity a nd p rofitability f or v olume c armakers

therefore
recovery is pw ersist, especially
elcome, the level as othe trade
f sales in w ar to pireserve
Europe s expected market shares vw
to remain ill clow
ery ontinue,
compared as will
wiith
ts the
negative e ffect o n m argins.
16 million annual sales in 2007. Problems of overcapacity and profitability for volume carmakers will
therefore persist, especially as the trade war to preserve market shares will continue, as will its
After double-digit growth in t he period 2010 - 2012, the Russian market fell by -5.5 percent in 2013,
negative effect on margins.
and a slight contraction of -2 percent is also expected for 2014. Aware of the limits of the Russian car
industry, the government announced subsidies of almost EUR 6 billion for research and
After double-digit growth ihn as
the period 2010 - 2012, the Russian market fell by -5.5 percent in 2013,
development and support
and a slight contraction of f-or
2 peercent
mployment
is also in this sector.
expected for 2014. Aware of the limits of the Russian car
industry, the government has announced subsidies of almost EUR 6 billion for research and
India recorded a steep -10 percent fall in 2013, returning to 1.8
million units after three years also of
development and support for employment in this sector.
strong growth. For 2014 Euler Hermes expected a recovery in the car market to get underway after
the elections
India recorded in aM ay. -10 percent fall in 2013, returning to 1.8 million units after three years also of
steep
strong growth. For 2014 Euler Hermes expected a recovery in the car market to get underway after

the elections in May.
8
2

Finally,
Finally,
Brazils car sales fell in 2013, ending a decade-long boom which saw that countrys fleet of
vehicles Bdrazils
ouble ctar
o jsust
ales fell i8n 0 2m
over 013, ending
illion. With aB drazils
ecade-long boom w
high interest hich hsaving
rates aw that
a ncegative
ountrys fleet oof n
impact
vehicles
car sales, dtouble to just over
he automotive 80 million.
market's With iBn razils
recovery that chountry
igh interest rates
is likely to bhe aving
slow aa nd
negative impact
gradual, but on
INTRODUCTION
car sales,
should the returned
have automotive
to pm arket's
ositive recovery
growth by tihe
n that
end coountry
f this yiear.
s likely
to be slow and gradual, but
should have returned to positive growth by the end of this year.

Readers
Pharmaceutical of this years EIBTM Trends Watch Report will certainly notice the upbeat tone of
Pharmaceutical
The healthcare sector event spend depends to a large extent on their pipelines bringing new drugs
The
to the healthcare sector aend,
vent if tshey
pend dn epends to a asi trong
large epxtent on tthe
heir pipelines bringing new drugs
have um arketplace
sed in the compilation do
of this ot have
report, and t undoubtedly ipeline, comes need as faor associated
result of the b usiness
improving
to t he m arketplace a nd, i f t hey d o n ot h ave a
events will decrease, and this can happen irrespective of the economic climate. The creation of new s trong p ipeline, t he n eed f or a ssociated b usiness
events
drugs comes will decrease,
as a direct and this coan
result f phharmaceutical
appen irrespective companies of the leevels conomic climate. The
of investment in rcesearch
reation oaf nd new
drugs
development comes a(s a direct
R&D), and result
that eoxplains
f pharmaceutical
why the pharma companies sector levels
invests of im nvestment
ore money in in
research
research and
than
development
And
any oather.
lthough ( R&D),
our industry
According a nd t
to KPMG hat
has n e xplains w hy
ot yet returned
International, t he p harma
5 otf o the s
pre-recession ector
worlds 10 hlevels i nvests
ighest oR m ore
f &D m oney
activity,
budgets i n r esearch
it is bclear
elong to han
t
that, dfrug
or
any
now o ather.
t l A
east, ccording
w e h ave t o
n K PMG
avigated I nternational,
t he e conomic 5
companies. Between 2004 and 2013 the total industry expenditure on R&D rose from US$88 billion o
d f t he
ownturn w orlds
s 1 0
uccessfully h ighest a R
nd &D
c b udgets
onfidence l b elong
evels h t o
ave d rug
companies.
been rising baBillion,
to US$135 s etween and 2i004
a consequence and
s forecast of 2t013
hat tahe total
chievement.
to reach US$149 industry billion expenditure
by 2018. Aot n R&D
the same rose from
time, US$88 b2illion
between 004
to U S$135 b illion, a nd i s f orecast t o r each U S$149
and 2013, the estimated cost of bringing a new chemical or biological entity to market more than b illion b y 2 018. A t t he s ame t ime, b etween 2 004
Nevertheless,
and 2013, tehis has been a o year in which a ntew
he ccautious optimism of meany mto
eetings and events
trebled. In trhe
ecent stimated
years, hcowever, ost f bringing
the average hemical
number of oar nnual
biological US Food ntity and Dmrug
arket more
Administration than
professionals
trebled. I n r h
ecent as i
y ncreasingly
ears, h owever, b een t t empered
he a verage b n y a n
umber a wareness
o f a nnual o f
U r isks
S F a
ood rising
a nd fDrom
rug tA he i mpacts
dministration of
(FDA) approvals for new molecular entities a reliable indicator of innovation has risen from 23 to
geopolitical
(FDA) approvals developments
for new smign. which meay
olecular still present
ntities a reliable as yet unknown
indicator of tihnnovation
hreats to the hgas lobal economic
32, which is a promising Arguably, regulatory authorities have elped by cutting risen
back from 23 to
on red
recovery.
32, wthich is a promising sign.
tape o simplify and speed up Athe rguably,
approval regulatory
process, authorities
particularly have where helped therapies by cutting back on
for serious red
diseases
tape t o
are croncerned.
This s implify a nd s peed u p t he a pproval p rocess,
eport is designed to help you benchmark your own performance in 2014 and anticipate likely p articularly w here t herapies f or s erious d iseases
are c oncerned.
According to KPMG Internationals recent report, Growing the pipeline, growing the bottom line.
According
I Shifts
hope in to KPMG
pharmaceutical
that you will fInternationals
ind iRt &D
useful as rw
innovation, ecent
ell as rinnovation
ieport,
nteresting. Growing
is on tthe he rpise
ipeline, growing the bcottom
in pharmaceutical ompanies. line.
Shifts
Seventy in p percent
harmaceutical of the senior R&D iRnnovation, &D executives innovation surveyed is obn the rise
elieve that in tp harmaceutical
heir companies acre ompanies.
enjoying a
Seventy
resurgence in research productivity, and over half are satisfied with their portfolios ability njoying
p ercent o f t he s enior R &D e xecutives s urveyed b elieve t hat t heir c ompanies a re e to a
resurgence i n r esearch p roductivity, a nd o ver h alf a re s atisfied w ith t heir p ortfolios a bility t o
address unmet medical needs.
address unmet medical needs.
China
Rob is set to become a new force in drug development. The Financial Times notes that Beijing has
Davidson
China
made ifs set tdo evelopment
aster become a new of rfesearch-based
orce in drug development. pharmaceuticals The Fainancial
national Times
priority notes that to
both Beijing
serve hthe as
made
EIBTM
growing f aster
Industry d evelopment
health dAemands o f r esearch-based p harmaceuticals
nalyst of Chinese society, and to challenge the dominance of western drug- a n ational p riority b oth t o s erve t he
growing h ealth d emands
makers globally. In the governments of Chinese society, and to challenge
latest five-year plan, the tshe dominance
ector was identified of western drug-
as one of seven
Managing
makers g Director,
lobally. I n t MICE
he g Knowledge latest five-year plan, the sector was identified as one of seven
overnments
pillar industries to be promoted.
pillar industries to be promoted.
Compared to the US$ 30 billion invested by the US government each year in fundamental drug
Compared
research, the to tChe US$ 3government
hinese 0 billion invested invests by the than
less US gRovernment
mb 10 billion each (US$ year
1.6 in bfillion).
undamental There darug re signs,
research, t he C hinese g overnment i nvests
however, of the gap beginning to narrow. Between 2007 and 2012, Chinese investment l ess t han R mb 1 0 b illion ( US$ 1 .6 b illion). T here in are signs,
however, of Rt&D
he ggap beginning to narrow. Between 2007 and 2012, Chinese investment in
biomedical rew at a compound annual rate of 33 percent.
biomedical R&D grew at a compound a nnual rate of 33 percent.
Actual demand for pharmaceutical products is key to the success of companies in this sector, and
Actual
this is udnder emand for pharmaceutical
pressure in many Western products nations. is key to the success
According to Euler of Hcermes,
ompanies in this
Europe sector, uander
remains nd
this
pressure is under pressure
to reduce its ibn udget
many dW estern
eficits, nations. According
compounded to a large to Eeuler
xtent Hermes,
by recurrent Europe remains
losses under
in public
pressure t o r educe i ts b udget d eficits, c ompounded
health insurance regimes. The time is therefore for wholesale savings to be made in healthcare and, t o a l arge e xtent b y r ecurrent l osses i n p ublic
health insurance
in particular, the p regimes.
harmaceutical The time is therefore
sector. For example, for wholesale
France hsas avings
taken to the
be smame
ade pin healthcare
ath as the UK aand, nd

in particular,
Germany and tghe pharmaceutical
iven preference to sgector. enerics For in eoxample,
verall mFedicine rance hsas taken
ales, in otrder
he same path
to curb its as the UK and
greater
Germany and given preference to generics in overall medicine sales, in order to curb its greater
consumption of pharmaceutical products (the prices of which tend to be higher the more recently
consumption
they come on otf o ptharmaceutical
he market). The products
choice t(o the
reduce prices of which tsend
healthcare pending to be is
higher
just as the more recently
important in the
they come on to the market). The choice to reduce healthcare spending is just as important in the

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US, as its per capita spending on drugs is the highest in the world. On the other hand, it is widely
believed
US, as its tphat er cObamacare
apita spending will on drugs is +t5
generate he ph ighest oif n atdditional
ercent he world. dOemand n the ofor ther hand,
drugs in i2t 014
is widely
as a
believed
result hat expected
of the Obamacare will gnenerate
7 million ewly-insured +5 percent Americans. of additional
demand for drugs in 2014 as a
INTRODUCTION
result of the expected 7 million newly-insured Americans.
Nevertheless, in the past year there has been a -1.6 percent decline in sales of proprietary drugs
Nevertheless,
alone at the global in the past Tyhis
level. ear is
there has been a o-1.6
a consequence percent
f the expiry d oecline
f the piatents n sales oof f the
proprietary
pharmaceutical drugs
alone at the fgormer
companies lobal lsevel. tar dTrugs,
his is maeaning
consequence
that those of the
drugs expiry
can obf e the patents
replaced by otf he
the mpuch
harmaceutical
cheaper
Readers
companies of tfhis years
ormer s EIBTM
tar d rugs, Trends
m eaning Watch
t hat Rteport
hose wrugs
d ill certainly
c an b e neplaced
r otice the b upbeat
y t he m tone
uch of
cheaper
generics. Pharmaceutical revenues at risk between now and 2018 - to the benefit of generic makers
confidence
generics. throughout the
Pharmaceutical pages of at
revenues this review of our industrys performance during of gteneric
he past m1akers
2
- have been estimated at U S$ 110 billion. risk
Abs etween
a result, nB ow and
ig P harma 2018 is -h tastening
o the benefit to invest in emerged
months
- have been a nd t he o
estimated utlook f or
at fU 2
S$ 015. T hat c onfidence
110 billion. As ai s result, i s j ustified
Big Ptharma b y t he f indings o f m ost o f t he s ources I
markets, where demand or pharmaceuticals expected o grow is by hastening
more than to +invest
8 percent in emerged
in 2014.
have used
markets, wihere
n the dcemand
ompilation for poharmaceuticals
f this report, and is eit xpected
undoubtedly to grow comes
by maore s a trhan
esult of ptercent
+8 he improving in 2014.
Figure
situation 2a ian bove
some shows annual egrowth
key national conomies rates for
this drugs
year. But spending around tthe
it also reflects he fw orld,
act that and
many it is in
clear
the that
Figure
the
meetings 2a above
greatest shows
expansion
nd events aonnual
f demand
industry agre
rowth ies roates
allready utside for tdhe
experiencing rugs spending
mature improving markets around for hthe
orders wforld,
ealthcare.
for uture and it is clear that
business.
the greatest expansion of demand lies outside the mature markets for healthcare.
FIGURE 2a. Breakdown of drugs spending
FIGURE 2a. Breakdown of drugs spending
USD (billions) 2013 2014 Annual average growth
Unites States USD (billions) 2013
232 2014
340 Annual average 1% growth
Unites States
European Union 5 (1) 232
143 340
145 1%
0.3%
European
Japan U nion 5 ( 1) 143
114 145
115 0.3%
0.2%
recovery.
Japan 114 115 0.2%
Rest of the World (China included) 370 500 8%
Rest
World o f
t he W orld ( China i ncluded) 370
950
This report is designed to help you benchmark your own performance in 2014 and anticipate 500
1,100 8% likely
4%
World
developments in the market in the year ahead. 950 1,100 4%
Germany, France, United Kingdom, Spain, Italy
(1)
I (1)
hope that yFou
Germany, will Ufind
rance, nited it u seful as Swpain,
Kingdom, ell aIs taly
interesting.

Source: IMS, estimations Euler Hermes
Source: IMS, estimations Euler Hermes

Construction
Rob Davidson
Construction
Confidence
EIBTM Industry is growing
Analyst once again in the world of construction, even in the hard-hit European
Confidence
market. is gsrowing
In the urvey coarried
nce again out fior n tThe world oCf onstruction
imetrics construction, even in Ctonfidence
Business he hard-hit European
Report Q3, overall,
Managing D irector, McICE Knowledge
43 percent of construction respondents stated that they are operating in a stable economic 3, overall,
market. I n t he s urvey arried o ut f or T imetrics C onstruction B usiness C onfidence R eport Q
43 percent of cwonstruction
environment,
www.miceknowledge.com hile 28 percent respondents stated that stated
current that etconomic
hey are ocperating onditions in waere
stable economic
favourable. The
environment, w hile 2 8 p ercent s tated t hat c urrent
majority of global construction industry respondents anticipated positive growth for both their e conomic c onditions w ere f avourable. T he
majority
company oaf nd global
the icndustry
onstruction
as a w industry
hole over respondents
JulySeptember anticipated 2014. pIndustry
ositive grrowth espondents for both their
from North
company
America eaxpected nd the industry
the highest as ag w hole oin
rowth ver JulySeptember
staff headcount and 2014.
sales Industry
in that preriod. espondents from North
America expected the highest growth in staff headcount and sales in that period.
Figures published this year by Euroconstruct, the main network for construction, finance and
Figures
business published
forecasting this in yEear by Euroconstruct,
urope, suggest that the the Em ain network
uropean for construction,
construction market is ffinance and
inally reaching
business
firmer ground. forecasting Aggregated in Europe,
construction suggest tohat the fEor
utput uropean
the 19 Ecuroconstruct
onstruction mcarket ountries is finally
fell by reaching
2.7 percent
firmer g round. A
in real terms in 2013, extending ggregated c onstruction o utput f or t he 1 9 E uroconstruct c ountries f ell b y 2 .7 percent
the negative trend started in 2008. The latest forecast suggests that
in
the real terms
decline in in 2013, extending
construction output the negative
finally trend sotarted
bottomed ut last in 2008.
year, and The latest forecast
Euroconstruct suggests that
expects
the d ecline i n
investments to grow on average c onstruction o utput f inally b ottomed
by 1.8 percent a year in 2014-2016. o ut l ast y ear,
a nd E uroconstruct
Nevertheless, there are major e xpects
investments
differences wtithin o grow on
the average
19 countries. by 1T.8
he pRercent
epublic a yoear in 2014-2016.
f Ireland and Poland Nevertheless,
could see an there
average are m ajor
growth
differences within the 19 countries. The Republic of Ireland and Poland could see an average growth

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of 9 percent and 6 percent respectively in 2014-2016, measured at constant prices. The UK,
Denmark
of 9 percent and and 6 percent
Hungary are arespectively
lso among the in 2f014-2016,
ast-growing mceasured
onstruction at constant
markets, prices.
with aTverage he UK, growth
Denmark
rates of 3-4 and Hungary
percent a yaear.
re aAlso among
t the other the
end fast-growing
of the scale caonstruction re the Czech mR arkets,
epublic waith nd aSverage
pain wghere rowth
INTRODUCTION
rates o f 3 -4 p ercent a y ear. A t t he o
construction output looks set to remain at below 2013 levels. ther e nd o f t he s cale a re t he C zech R epublic a nd S pain w here
construction output looks set to remain at below 2013 levels.
It
is mainly the building of new residential buildings that is contributing to the upturn in Europe, but
It is tm
the ainly the
entative building aoffects
recovery f new all
residential
sub sectors buildings
of the ctonstruction
hat is contributing market. to the uapturn
After number in Eourope,
f hard baut
nd
Readers
the t entative of this
r years EaIBTM
ecovery ffects Tarends
ll s W
ub s atch Report
ectors o f t w
he c ill certainly nmotice
onstruction arket. the
A upbeat
fter a n tone oof f hard and
umber
turbulent years, this sign of stability and recovery is welcome. But the authors of the Euroconstruct
confidence
turbulent throughout
years, the
of psages of athis review of is our industrys performance df
uring Eturoconstruct
he past 12
report warn that tthis
he srign
ecovery tability
is likely nd
be raecovery
protracted welcome.
one, as hBigh ut tuhe authors o
nemployment the
and debt, low
months a
report warn tight nd t he o utlook
hat tche f
recovery or 2 015. T hat c onfidence
is likely fbragmentation
e a protracted i s j ustified b y t he f indings o f m ost
nd dtebt,
o f he sources
low I
investment, redit, and financial in otne,
he aEs high
uro unemployment
zone continue to daampen domestic
have
investment, used in ttight he ccompilation
redit, and foinancial f this report, and it undoubtedly
fragmentation in the Euro comes zone caontinue
s a result
to odf ampen
the improving
domestic
demand.
situation
demand. i n s ome k ey n ational e conomies t his y ear. B ut i t a lso r eflects t he f act t hat m any i n the
Euroconstructs
meetings and events forecast for the
industry are growth
already of eExperiencing
uropes construction improving industrys orders for ofutput
uture ibs usiness.
shown in Figure
Euroconstructs
2b forecast for the growth of Europes construction industrys output is shown in Figure
And
2b a lthough
o ur industry has not yet returned to pre-recession levels of activity, it is clear that, for
Figure 2b. GDP aave
now a t l east, w e h nd Tnotal Construction
avigated the economic Output
downturn from s2uccessfully
010 to 2016. and Ycear to year
onfidence change
levels have in %
Figure
been 2b. aGs DP
rising and Total Construction
a consequence of that achievement. Output from 2010 to 2016. Year to year change in %

and events
Nevertheless, this has been a year in which the cautious optimism of many meetings
the impacts of
professionals has increasingly been tempered by an awareness of risks arising from


recovery.




Rob Davidson




th
Source: EUROCONSTRUCT (77 Conference)
Source: EUROCONSTRUCT (77 th Conference)
But in the long term, it is the developing world that will create most demand in the construction
But in the
market alnd
ong consequently developing
term, it is the
increased world ftor
demand hat will create msector
construction ost demand
business in ethe construction
vents. According to
market Construction
Global and consequently
Perspectives increased and O demand for construction
xford Economics, sector
the world business em
construction vents.
arket Aw ccording
ill grow tbo y

Global than
more Construction Perspectives
70 percent between now and aO xford
nd Economics,
2025 to hit US$15 the world acs
trillion, onstruction
significant m arket will grow
opportunities by
open
more t han 7 0 p ercent b
up in emerging Asian economies etween n ow a nd 2 025 t o h it U S$15 t rillion, a s s
and demand for 270 million new homes as well as commercial ignificant o pportunities o pen
up in emerging
premises Asian economies
and infrastructure drives and demand
the market fior n C2hina
70 maillion new Chhina,
nd India. omes India
as well
and as the
commercial
US will
account for around 60 percent of growth and just over half of the growth is expected tU
premises a nd i nfrastructure d rives t he m arket i n C hina a nd I ndia. C hina, I ndia a nd t he o S ow ill in
ccur
account for
emerging around C6hina,
markets. 0 percent
which of in
growth
2010 oavertook
nd just othe ver UhS alf
to obf ecome
the growth
the wis expected
orlds largest to coonstruction
ccur in
emerging markets. China, which in 2010 overtook the US to become the worlds largest construction

11
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market, will increase its global market share from around 18 per cent today to around 26 per cent
over
market, the wforecast
ill increase period.
its global market share from around 18 per cent today to around 26 per cent
over the forecast period.
INTRODUCTION
The Middle East will also continue to be a major source of demand for construction. According to
figures from Etast
The Middle he w Mill
iddle
also Ecast Economic
ontinue to be Daigest
major (MEED) source cited in Deloittes
of demand report, GCC A
for construction. Pccording
owers of to
Construction,
figures from the the Mviddle
alue oEf ast projects
Economic planned Digest or (uMEED)
nderway in tin
cited he
DG CC (Gulf
eloittes Cooperation
report, Council)
GCC Powers of
countries
Construction, are uthe
p ovver 13 opf ercent
alue projects compared
planned oto r uanderway
year ago i(n
8 tAhe
pril 2014).
GCC (Gulf Saudi Arabia leads
Cooperation the way
Council)
with over aUre
countries S$1
up trillion
over 1w 3 orth
percent of pcrojects
ompared planned to a yoear
r currently underway
ago (8 April 2014). S- audi up almost
Arabia 1l9 percent
eads the way
compared
with over Uto a ytear
S$1 ago.
rillion The U
worth oAE comes pin
f projects second
lanned or wcith over UuS$727
urrently nderway billion - up waorth
lmost of 1p9 rojects
percent
planned or tco urrently
compared a year augo. nderway,
The UAE up 9 percent
comes compared
in second with oto a yUear
ver ago. bW
S$727 ith owver
illion US$276
orth billion,
of projects
Qatar c omes i n t hird, a n i ncrease o f o ver 1 7 p ercent
planned or currently underway, up 9 percent compared to a year ago. With over US$276 billion, c ompared t o a y ear a go.
Qatar comes in third, an increase of over 17 percent compared to a year ago.
Dubai
meetings has awnd
on etvents
he right to host
industry the
are World eExperiencing
already xpo 2020, aind the largest
mproving orders ever Expo
for future site biusiness.
s set to be built
in the Jhebel
Dubai as wA li (tDWC)
on area
he right to h at a ttotal
ost he W cost
orld of between
Expo 2020, UaS$2
nd tbhe illion and eUver
largest S$4 Ebxpo illion.
site Tihe secondary
s set to be built
infrastructure
in the Jebel Ali s(pend
DWC) waill be aut pwards
rea a total coost f UoS$8 billion, aUnd
f between will
S$2 include
billion and cU onstruction
S$4 billion. oTpportunities
he secondary in
the transport, shpend
infrastructure ospitality,
will bre etail
upwards and commercial
of US$8 billion, sectors.
and will include construction opportunities in
the transport, hospitality, retail and commercial sectors.


Paul Miller- President
professionals of SITE b
has increasingly (Society
een tempered for Incentive by an aTwareness
ravel Excellence) of risks arising from the impacts of
Paul Miller- dPevelopments
geopolitical resident of SITE which
(Society may sftill
or pIncentive
resent as Tyravel Excellence)
et unknown threats to the global economic
recovery. 2014 has been a good year for incentive travel and the outlook for
2015 is
2014 positive,
has been aa gs ood the ygear
lobal economy
for incentive improves
travel and and business
the outlook for
This report is designed to help you b enchmark
travel is
2015 is pgositive,
enerally y our o wn p erformance
as increasing.
the global Ceompanies i
conomy improves n 2 014 a nd
that abandoned a nticipate
and business likely
incentive
developments in the market in the year is aghead.
programs
travel during the
enerally economic
increasing. downturn tahat
Companies re rae-introducing
bandoned incentive them,
having r ecognised t hat i ncentive
programs during the economic downturn are re-introducing them, t ravel i s a n i mportant b usiness
I hope that you will find it useful atool s well
to rmas otivate
interesting. performance and to help
having ecognised that incentive travel is aan chieve
important business results.
business
Although
tool t o m d emand
otivate p a nd i
erformance ncentive a b
nd udgets
t o h elp a re
a i ncreasing,
chieve b usiness r ising
r hotel
esults.
and a ir r ates a re r equiring p lanners
Although demand and incentive budgets are increasing, rising hotel t o b e m ore t houghtful i n
planning
and their
air rates incentive
are requiring programs.
planners In to obrder to otbtain
e more the best
houghtful in rates
and availability,
planning planners parograms.
their incentive re having In to book to
order programs
obtain the 18-24
best rates
Rob Davidson months
and in advance.
availability, planners are having to book programs 18-24
months in advance.



12
2
Reed
Reed TTravel
ravel EExhibitions
xhibitions || EEIBTM
IBTM TTrends
rends WWatch
atch RReport
eport 22014
014 12


ASSOCIATION CONFERENCES
INTRODUCTION

Some of the most important insights into the global association conferences market are to be found
in this years Marketing Challenges Internationals survey report, "Trends in International Association
Meetings from North America", which covers trends in programmes, research and planning, and site
selection for North American association events that have global meetings and events.
have utsed
More han i4n 0 the compilation
percent of North of Athis report,
merican and it undoubtedly
association executives comes
surveyed as af ror
esult
the oreport
f the improving
saw
increased
situation in some key national economies this year. But it also reflects the fact that many iears,
b udgets a nd h igher a ttendance a t i nternational e vents f rom t he p revious t wo y n the and
91 percent
meetings of pelanners
and vents industry expect athose budgets
re already to increase
experiencing or remain otrders
improving he same
for ffuture
or their upcoming
business.
events.
As
now expected,
at least, Ewurope
e have dn
ominates
avigated ats the
he primary dlocation
economic ownturn for international
successfully and mceetings,
onfidence though
levels Ahsia
ave has
also
been mrising
ade aa ss trong showing in orf ecent
a consequence that aychievement.
ears and the Middle East appears to be firmly on the radar for
future meetings. Marketing Challenges International noted that a significant percentage of
association planners expressed willingness to repeat locations for their largest international events.
Location and cost are the driving factors for site selection, though association planners showed less
concern for destination reputation, suggesting that emerging destinations have a role to play in
recovery.
association meetings and events.
During the research and planning stages, convention bureaus and tourist boards are a crucial
resource to planners, with 83 percent of the survey respondents reporting using their services in one
way or tahat
I hope nother,
you wincluding
ill find it suite visits
seful as w (74
ell paercent of respondents), marketing materials (52 percent),
s interesting.
impartial advice (51 percent), venue finding services (45 percent) and bid support (45 percent).

Among survey respondents, 88 percent reported that their events budgets have either increased or

remained the same over the past two years, with an average budget increase of 14 percent (Figure
3). The outlook for this coming year is also positive: 37 percent of respondents expect that the
Rob Davidson
budgets will increase for their next event. See Figures 3 and 4, below.
Average attendance at events has also increased or remained the same over the past two years,
Managing tDo irector,
according MICE
77 percent of Ktnowledge
he respondents. Nearly 40 percent of respondents to the survey report
an increase, while only 23 percent report a decline. Whats more, the highest percentage of
respondents (32 percent) has more than 1,000+ attendees at their largest meetings, and planners
report that the average percentage of delegates that travel from the US to international meetings is
30 percent.

13


Figure 3. Budget Changes for Associations from Previous Two Years
Figure 3. Budget Changes for Associations from Previous Two Years
INTRODUCTION
12%

12%
Decreased
46% the pages of this review of our industrys performance during the past 12
months and the outlook for 2015. That confidence is justified Increased
by the findings of most of the sources I
Decreased
46%
Remained
Increased the same
42%
meetings and events industry are already experiencing improving Remained the sfame
orders
or future business.
42%



Figure 4. Expected
geopolitical Budget w
developments Changes for
hich may Associations
still present as fyor
et Nuext Intl Ethreats
nknown vent to the global economic
recovery.
Figure 4. Expected Budget Changes for Associations for Next Intl Event
9%
9%
Decreased
Increased
Decreased
54% 37%
Rob Davidson Remained
Increased the same
54% 37%
EIBTM Industry Analyst Remained the same

Source: Marketing Challenges International: Trends in International Association Meetings from

North America

North A
When it merica
comes to site selection, Europe remains dominant in hosting international meetings: 65
percent of surveyed planners hosted their last international meeting there, with three-quarters of
When it comes to site selection, Europe remains dominant in hosting international meetings: 65
those respondents specifying Western Europe as the selected region. Asia was also popular among
percent of surveyed planners hosted their last international m eeting there, with three-quarters of
association planners: 22 percent of respondents hosted their last international meeting there.
those respondents specifying Western Europe as the selected region. Asia was also popular among
Among those respondents, 36 percent selected China, 21 percent selected Japan, and 29 percent
association planners: 22 percent of respondents hosted their last international meeting there.
Among those respondents, 36 percent selected China, 21 percent selected Japan, and 29 percent

14


selected Southeast Asia, with a number of planners specifically listing Malaysia as the location of
their last event. (Figure 5).
selected Southeast Asia, with a number of planners specifically listing Malaysia as the location of
their last
Figure 5. Leocation
vent. (Figure 5). International Meeting
of Last
INTRODUCTION
Figure 5. Location of Last International Meeting

Europe 64.86%
confidence throughout Europe the pages
of this review of our industrys performance during the p64.86% ast 12
Asia 21.62%
have used in the Asia 21.62%
Australia &c Nompilation
ew Zealand o f this report,
4.05% and it undoubtedly comes as a result of the improving
Australia
meetings & New industry
and eCentral
vents Zealand 4.05%
America are already
2.70% experiencing improving orders for future business.
And although oCentral
ur industry has not yet
America returned to pre-recession levels of activity, it is clear that, for
2.70%
South America 1.35%
been rising as a cSouth
onsequence
America of that achievement.
1.35%
Middle East 0%
Nevertheless, this hMiddle
as been a year in which the cautious optimism of many meetings and events
East 0%
Africa been tempered
professionals has increasingly 5.41% by an awareness of risks arising from the impacts of
geopolitical developments which may s5.41%
Africa till present as yet unknown threats to the global economic
recovery.

This
report
Source: is designed
Marketing to help yInternational:
Challenges ou benchmark your oiwn
Trends performance Aissociation
n International n 2014 and Maeetings
nticipate likely
from
developments
North America in the market in the year ahead.
I North
hope Athat you will find it useful as well as interesting.
merica
For
their next international meeting, nearly half (47 percent) of respondents are planning to host in
Europe, with two-thirds specifying Western Europe as the region. Interestingly, a number of
For their next international meeting, nearly half (47 percent) of respondents are planning to host in
respondents specifically mentioned Turkey as the next meeting location. Approximately a quarter
Europe, with two-thirds specifying Western Europe as the region. Interestingly, a number of
Rob pDercent)
(24 avidson of respondents reported planning their next international meeting in Asia, with the
respondents specifically mentioned Turkey as the next meeting location. Approximately a quarter
specific location split relatively equally between China, Japan, India, and Southeast Asia. Other
(24 percent)
EIBTM Industry of rA
espondents
nalyst reported planning their next international meeting in Asia, with the
regions are piquing the interest of planners as well: although 4 percent of planners hosted their last
specific location split relatively equally between China, Japan, India, and Southeast Asia. Other
meeting
Managing in Australia M or ICE
New Zealand, 13 percent plan to host their next one in that region. Even
regions are Dpirector,
iquing the Knowledge
interest of planners as well: although 4 percent of planners hosted their last
though no planners held their last meeting in the Middle East, 4 percent report hosting their next
meeting i n
www.miceknowledge.com A ustralia o r N ew Z ealand, 13 percent plan to host their next one in that region. Even
meeting there.
though no planners held their last meeting in the Middle East, 4 percent report hosting their next
aluable insight into how the destinations most frequently chosen for international
meeting vthere.
Another
association conferences is provided by the annual International Meetings Statistics Report published
Another valuable insight into how the destinations most frequently chosen for international
by the Union of International Associations. The most recent report shows Singapore, the US and the
association conferences is provided by the annual International Meetings Statistics Report published
places
Korea Republic holding the top in the country rankings and Singapore, Brussels and Vienna for
by the Union of International Associations. The most recent report shows Singapore, the US and the
the city rankings. The top 10 c ountry rankings show little change from the year before, except for
Korea Republic holding the top places in the country rankings and Singapore, Brussels and Vienna for
the re-entry of the UK into the top 10. In the city rankings Copenhagen left the top 10 and Busan
the city rankings. The top 10 country rankings show little change from the year before, except for
entered it. Encouragingly, there is clear evidence of growth in the number of association meetings
the re-entry of the UK into the top 10. In the city rankings Copenhagen left the top 10 and Busan
being held worldwide, as the total number of meetings in the UIA database for 2013 reached
entered it. Encouragingly, there is clear evidence of growth in the number of association meetings
408,798, a significant rise from the 392,588 meetings on the database for the previous year.
being held worldwide, as the total number of meetings in the UIA database for 2013 reached
408,798, a significant rise from the 392,588 meetings on the database for the previous year.

15


Figure 6. UIA Top International Meeting Countries and Cities.
Top
Figure 6. UIA Top m
international International Meeting
eeting countries 2013 C(ountries
extracted and Cities.
from Table 1.2, A + B column)
INTRODUCTION
Top international meeting countries 2013
Country (extracted
Number of Mfeetings
rom Table 1.2, A +Percentage
B column) of all meetings
Singapore 994 9.4%
Country Number of Meetings Percentage of all meetings
USA 799 7.5%
Singapore 994 9.4%
Korea Rep 635 6.0%
USA
Readers of this years EIBTM Trends Watch Report 799 will certainly notice the upbeat t7.5% one of
Japan 588 5.5%
Korea R
confidence ep throughout the pages of this review o505 635
f our industrys performance during 6.0%
the past 12
Belgium tied 4.8%
Japan
months a nd
Spain tied t he o utlook f or 2 015. T hat c 588
onfidence
505 i s j ustified b y t he f indings o f m 5.5%
ost o
4.8% f the sources I
Belgium t ied
have used in the compilation of this report, and i428
Germany 505
t undoubtedly comes as a result of 4.0% 4.8%
the improving
Spain
situation t ied 505 4.8%
France in some key national economies this year. 408 But it also reflects the fact that 3.8% many in the
Germany 428 4.0%
Austria
meetings and events industry are already experiencing 398 improving orders for future 3.7% business.
France 408 3.8%
UK 349 3.3%
Austria
And
although our industry has not yet returned t398 o pre-recession levels of activity, it 3.7%
is clear that, for
now
UK at least, we have navigated the economic downturn 349 successfully and confidence 3.3%
levels have
international
been
Top rising as a consequence
meeting cities of tin
hat achievement.
2013 (extracted from Table 1.3, A + B column)
Nevertheless,
Top international this m
City has been
eeting a year
cities in i2n 013
which the cautious
(extracted
Number of fM oTptimism
rom able 1.3, oAf +m Bany
eetings meetings
column)
Percentage and
of all m events
eetings
professionals
Singapore h as i ncreasingly b een t empered b y a
994 n a wareness o f r isks a rising f rom t he
9.4% i mpacts of
geopolitical City Number o f M eetings Percentage o f a ll m eetings
Brussels developments which may still present 436 as yet unknown threats to the global 4.1% economic
Singapore
recovery.
Vienna 994
318 9.4%
3.0%
Brussels 436 4.1%
Seoul 242 2.3%
This report is designed to help you benchmark your
Vienna 318 own performance in 2014 and 3.0% anticipate likely
Tokyo 228 2.1%
Seoul
developments in the market in the year ahead. 195 242 2.3%
Barcelona 1.8%
Tokyo 228 2.1%
Paris that you will find it useful as well as interesting.
I Barcelona
hope 180 1.7%
195 1.8%
Madrid 165 1.6%
Paris 180 1.7%
Busan 148 1.4%
Madrid 165 1.6%
London 144 1.4%
Busan 148 1.4%
London 144 1.4%
Rob
D avidson
Source: UIA International Meetings Statistics Report for the Year 2013
Source: UIA International Meetings Statistics Report for the Year 2013

(Meetings taken into consideration include those organised and/or sponsored by the international
organisations which appear in the Yearbook of International Organizations and in the International
(Meetings taken into consideration include those organised and/or sponsored by the international
Congress Calendar, i.e. the sittings of their principal organs, congresses, conventions, symposia, and
organisations which appear in the Yearbook of International Organizations and in the International
regional sessions grouping several countries, as well as some national meetings with international
Congress Calendar, i.e. the sittings of their principal organs, congresses, conventions, symposia, and
participation organised by national
branches of international associations).
regional sessions grouping several countries, as well as some national meetings with international
participation organised by national
branches of international associations).

16


INCENTIVE TRAVEL

INCENTIVE TRAVEL

INTRODUCTION

Two key surveys this year point to a resurgence in the use of incentive travel and fairly upbeat
expectations for the future of this sector of business events. Although the majority of the
Two key surveys this year point to a resurgence in the use of incentive travel and fairly upbeat
participants
expectations in both
for the sfurveys
uture owf ere this Usector
S-based, of btusiness
he findings events. are rAelevant
lthough mthe uch mm ore wo
ajority idely,
f the given the
Readers
size o f t o f
he U t his
S i y ears
ncentive E IBTM
m arket: T rends
U S c W atch
ompanies
participants in both surveys were US-based, the findings are relevant much more widely, R eport
s w
pend ill
$ c ertainly
240 b illion n otice
a y t
ear he
o n ui pbeat
ncentive t one of given
travel, and a
the
confidence
sizeable
size of the UtS
hroughout
proportion incentive tmhe
of that ips ages
arket: spend
US of ciompanies
tn his review
destinations of oour
spend $i240
ndustrys
utside illion opawn
btheir erformance
country.
year during ttravel,
on incentive he past and 12 a
months a nd t he o utlook f or 2 015. T hat c onfidence i s j ustified b y t he f indings o f m ost o f t he s ources I
sizeable proportion of that is spend in destinations outside their own country.

situation
SITE in some kFey
International national economies
oundations most recent this year. ABnnual
Index ut it aSlso
urvey reflects
demonstrated the fact that that moany in the about
ptimism
meetings
the a nd e vents i ndustry a re a lready e xperiencing i mproving o rders f or f uture b usiness.
SITE oIverall
nternational use of m otivational tm
Foundations ravel
ost erecent
xperiences Index is at a four-year
Annual Survey dhemonstrated igh, with 48 ptercent hat optimism of about
respondents
the o verall u s
se aying
o f m t hat i
otivational ts u se tw ill
ravel i ncrease
e xperiences o r s ubstantially
i s a t a f i ncrease
our-year h i n
igh, t
w he
ith n ext
4 8 p6 m onths
ercent o - a
f
marked
respondents increase over past
its yuears. Wihen questioned about their expectations for t6he use of -i ncentive
now at least, swaying e have that navigated se wtill he ncrease
economic or dsubstantially
ownturn successfully increase ian nd
the next
confidence months levels ha ave
travel
marked o ver t
increase he n ext 1 t o
over past years. 3 y ears, t he
When m ood w as e ven m ore p ositive,
questioned about their expectations for the use w ith 8 7 p ercent b elieving
of incentive that it
will i ncrease o r s ubstantially i ncrease.
travel over the next 1 to 3 years, the mood was even more positive, with 87 percent believing that it
will increase or substantially increase.

geopolitical
Those incentive developments
travel professionals which may who still pparticipated
resent as yiet n tuhe
nknown
Incentive threats
Research to the global economic
Foundation (IRF) Fall
recovery.
Pulse
Those Siurvey, ncentive conducted
travel professionals in August of wtho his pyarticipated
ear were equally in the uIncentive
pbeat about Research the prospects
Foundation for (tIRF)
his Fall
sector.
Pulse Two-thirds
Survey, of them w ere positive this oyr ear strongly
ere oepwn ositive uapbeat bout tahe impact
the patrospects
hat the efconomy will
This report is dconducted
esigned to in August
help you obf enchmark w
your qually performance bout
in 2014 nd anticipate or this likely
have o n t heir
sector. Two-thirds a bility t o
of m p
them lan a nd
wiere i mplement
positive i ncentive t ravel p rogrammes. A s F igure 7 s hows, t he
developments in the arket n the year ao r strongly positive about the impact that the economy will
head.
percentage
have on their ability to plan and implement iimpact
o f r espondents c onsidering t he ncentive of ttravel
he general
programmes. state of tAhe s Feigure
conomy to be the
7 shows,
I percentage
h ope t hat
strongly positive y ou w ill f ind
/ somewhat
of respondents i t u seful a s
positive for
considering w ell a s
the i nteresting.
incentive
impact otravel f the rgose
eneral to 6s7 percent
tate of the in eA ugust 2t014,
conomy o be from 63
percent
strongly i n M ay o f t his y ear. T he F igure s hows t hat
positive / somewhat positive for incentive travel rose to 67 percent in August 2014, s ince t he P ulse S urvey o f S eptember 2 012, from the 63

general tirend
percent n May has
of bthis
een year.
for mTore he Frigure
espondents shows tthat o consider
since the that the Ssurvey
Pulse tate oo f f
the economy 2i012,
September s creating the a
favourable

general r ather t han a h ostile e nvironment f or i ncentive
trend has been for more respondents to consider that the state of the economy is creating a t ravel.
favourable
Rob Davidson rather than a hostile environment for incentive travel.
Philippe Fournier- President of JMIC (Joint Meetings Industry Council)


Philippe Fournier- President of JMIC (Joint Meetings Industry Council)
Managing Director, MICE Knowledge JMICs top priorities in 2014 were to better align meetings industry

measures and messages with those of other global travel-related
www.miceknowledge.com JMICs top priorities in 2014 were to better align meetings industry
organisations and to improve our ability to document and
measures and messages with those of other global travel-related
communicate the broader range of values associated with this
organisations and to improve our ability to document and
sector in the areas of economic, academic and professional
communicate the broader range of values associated with this
development. Upcoming actions will include the pursuit of a more
sector in the areas of economic, academic and professional
consistent and rigorous value measurement process in cooperation
development.
with international Upcoming actions will include the pursuit of a more
agencies whose endorsement will reinforce
consistent and rigorous value measurement process in cooperation
industry c
with international agencies redibility, as well as ways to more effectively break
whose endorsement will reinforce
through to larger government and community audiences whose
industry credibility, as well as ways to more effectively break
attitudes will influence the future of the industry through their
through to larger government and community audiences whose
investment decisions.
attitudes will influence the future of the industry through their
investment decisions.

17
17


Figure 7. In the coming year, what impact will the economy have on your ability to plan and
implement incentive travel programmes?
Figure 7. In the coming year, what impact will the economy have on your ability to plan and
implement
incentive travel programmes?
INTRODUCTION

recovery.

Source: Incentive Research Foundation Fall Pulse Survey, 2014
Rob Davidson
Source:
Further eIncentive
vidence
EIBTM Industry Rhat
esearch
Atnalyst Foundation
improvement Fall
in the Pulse
state of Sturvey, 2014 economy can feed through directly
he national
into a boost for incentive travel comes from the C&IT State of the Industry Report, conducted in the
Further
Managing evidence that
Director, MiICE
mprovement
Knowledge in the state of the national economy can feed through directly
UK market. That research also provided evidence of a resurgence in this sector. More than a quarter
into a boost for incentive travel comes from the C&IT State of the Industry Report, conducted in the
of the UK agencies (27 percent) surveyed said they have seen an increase in incentive activity in the
UK market. That research also provided evidence of a resurgence in this sector. More than a quarter
past 12 months. The increase in incentives is partly down to some clients introducing incentives for
of the UK agencies (27 percent) surveyed said they have seen an increase in incentive activity in the
the first time, while other corporates are returning to incentive activity after a break during the
past 12 months. The increase in incentives is partly down to some clients introducing incentives for
recession, and some are increasing their budgets.
the first time, while other corporates are returning to incentive activity after a break during the
recession, a nd s ome a re
A few other quantitative findings i ncreasing
t heir
from the budgets. are also worthy of note:
IRF survey
A
Tfew other
here quantitative
appears to be an foindings
verall
m from the eIxpectation
ajority RF survey atre also
hat worthy
most incentive of note:
travel budgets will either
remain unchanged (47 percent) or slightly increase (37 percent) in the coming year.
There appears to be an overall
majority expectation that most incentive travel budgets will either
remain
In terms of the average length oor f sincentive
u nchanged ( 47 p ercent) lightly increase (37 npumber
trips and ercent) of in the coming tyhe
participants, ear.
survey found that
even though the length of these trips is generally not increasing, the number of programmes
In terms of the average length of incentive trips and number of participants, the survey found that
decreasing in size and duration has steadily dropped.
even though the length of these trips is generally not increasing, the number of programmes
decreasing
in size and duration has steadily dropped.

18


Despite all of the talk about the increasing popularity of individual incentive travel rewards, 95
percent of corporate users that responded to the IRF survey stated they do not anticipate a change
Despite all of the talk about the increasing popularity of individual incentive travel rewards, 95
in strategy moving from group trips to individual travel packages.
percent of corporate users that responded to the IRF survey stated they do not anticipate a change
INTRODUCTION
in Asnother
trategy tm oving theme
opical from group
the itnvolvement
rips to individual travel packages.
of Procurement and Purchasing professionals in the
buying of incentive travel was included in the survey, which found that although 52 percent of
Another topical theme the involvement of Procurement and Purchasing professionals in the
respondents did not expect this to change, 32 percent expected it to increase moderately and 12
buying of incentive travel was included in the survey, which found that although 52 percent of
percent
Readers eoxpected
f this it to iIBTM
years ncrease significantly. eport will certainly notice the upbeat tone of
respondents did not eExpect Trends
this Watch 3R2
to change, percent expected it to increase moderately and 12
confidence t hroughout t he p ages o f t his r eview of our industrys performance during the past 12
percent expected it to increase significantly.

have
The used in othe
findings compilation
f the SITE International of this report,
Foundation and it suurvey
ndoubtedly point to comes
two oather
s a rkesult of the for
ey trends improving
incentive
travel:
The findings of the SITE International Foundation survey point to two other key trends for incentive
travel:
There has been an increase in the percentage of respondents who see the use of Return on
And although
Investment / Roeturn
ur industry has not yfor
on Objectives et rincentive
eturned tto pre-recession
ravel growing: 6l3 evels of activity,
percent believe it it is wcill
lear that,
rise for
in the
There has been an increase in the percentage of respondents who see the use of Return on
now a6t
next least,
m onths, we have
as navigated
opposed to 54 tphe economic
ercent who gdave
ownturn successfully
that same response and
in clast
onfidence
year's slurvey. evels have
Investment / Return on Objectives for incentive travel growing: 63 percent believe it will rise in the
next
6 mis
There onths,
also aa ss trong
opposed to 54 pbercent
collective elief that who gave
the inclusion that same response
of business in last yaear's
meetings survey.
nd other similar
Nevertheless, in
components this has been ae yvents
motivational ear in wwill hich
grow: the cautious
55 percent osptimism ee this gorowing
f many in
mteetings
he next a6nd meonths,
vents and
There is also a strong collective belief that the inclusion of business meetings and other similar
professionals
77 percent expect has increasingly
to see this tbrend
een itn empered
the next b1y -a 3n yaears.
wareness
Both oaf risks
re arising
larger from the than
percentages impacts
one oyf
ear
components in motivational events will grow: 55 percent see this growing in the next 6 months, and
ago.
77 percent expect to see this trend in the next 1 - 3 years. Both are larger percentages than one year
recovery.
ago.

Geoff Donaghy - President of AIPC (International Association of Convention Centres)

Geoff Donaghy - President of AIPC (International Association of Convention Centres)
I hope that you will find it useful a While s well galobal economic prospects are still wavering, 2014 will go
s interesting.
down as the year that AIPC members recorded the first solid
While global economic prospects are still wavering, 2014 will go
growth indicators since the start of the last global recession. The
down as the year that AIPC members recorded the first solid
recovery is now being led by corporate business that is contributing
growth indicators since the start of the last global recession. The
to the ongoing strength of the association market which sustained
recovery is now being led by corporate business that is contributing
Rob Davidson business through the challenges of the past 5 years. Other issues to
to the ongoing strength of the association market which sustained
be reckoned with beyond the strength of the overall economic
business through the challenges of the past 5 years. Other issues to
EIBTM Industry Analyst recovery include increasing global competition and concerns
be reckoned with beyond the strength of the overall economic
around government policies, particularly as they affect ongoing
Managing Director, MICE Knowledge recovery include increasing global competition and concerns
facility investment and the participation of government employees
around government policies, particularly as they affect ongoing
in meetings and conventions.
www.miceknowledge.com facility investment and the participation of government employees

in meetings and conventions.

Regarding the all-important question of trends in the type of destinations being chosen for incentive
trips, the IRF survey found that almost half (46 percent) of respondents had no intention of
Regarding the all-important question of trends in the type of destinations being chosen for incentive
changing, but the next largest category (15 percent) anticipated changing from domestic to
trips, the IRF survey found that almost half (46 percent) of respondents had no intention of
international destinations (that is, outside the US). Although this is offset to some extent by those
changing, but the next largest category (15 percent) anticipated changing from domestic to
respondents anticipating a change is, oin the opposite direction, there has been a significant decrease in
international destinations (that utside the US). Although this is offset to some extent by those
From international to domestic switches since 2010. See Figure 8.
respondents anticipating a change in the opposite direction, there has been a significant decrease in
From
international to domestic switches since 2010. See Figure 8.

19



Figure 8. Anticipated changes in the coming year, with regards to incentive travel destinations
Figure 8. Anticipated changes in the coming year, with regards to incentive travel destinations
INTRODUCTION

No change 46%
No change 46%
From domesrc to internaronal 15%
From adnd
months omesrc to internaronal
the outlook That confidence i15%
for 2015. s justified by the findings of most of the sources I
have
Will upsed in the compilation
ick locarons of this report, and i12%
closer to'home' t undoubtedly comes as a result of the improving
situation in some key national economies this year.
Will pick locarons closer to'home'
But it also reflects the fact that many in the
12%
From internaronal to domesrc 10%
And From
although our industry
internaronal has not yet returned
to domesrc to pre-recession levels of activity, it is clear that, for
10%
now at least, wFrom
e have n avigated t
land to cruise he e conomic
5% d ownturn successfully and confidence levels have
From land to cruise 5%
Nevertheless, tFrom
his has been
cruise to aland
year in which
5% the cautious optimism of many meetings and events
From cruise to land 5%
geopolitical developments which may still present as yet unknown threats to the global e conomic
recovery.

This
report is designed to help you benchmark your own performance in 2014 and anticipate likely
Source: I ncentive
developments in the Rm
esearch
arket in Ftoundation Fall Pulse Survey, 2014
he year ahead.
I Source: Incentive Research Foundation Fall Pulse Survey, 2014
hope that you will find it useful as well as interesting.

Michel Neijmann - President of IAPCO (International Association of Professional Congress

Organisers)
Michel Neijmann - President of IAPCO (International Association of Professional Congress

Organisers)
The Annual Survey of IAPCO members showed limited growth in
Rob Davidson
the number of meetings they organised in 2013, and we expect this
The Annual Survey of IAPCO members showed limited growth in
trend to continue throughout 2014. The number of full time staff
EIBTM Industry Analyst the number of meetings they organised in 2013, and we expect this
however showed a decrease in 2013, and we can only hope that
trend to continue throughout 2014. The number of full time staff
Managing Director, MICE Knowledge 2014 will show an increase in jobs available in IAPCO member
however showed a decrease in 2013, and we can only hope that
companies. The meetings industry as a whole is showing a positive
2014 will show an increase in jobs available in IAPCO member
www.miceknowledge.com turn-around, despite the very slow recovery from the worldwide
companies. The meetings industry as a whole is showing a positive
economic recession. IAPCOs ever growing commitment to
turn-around, despite the very slow recovery from the worldwide
education and quality standards will certainly contribute to the
economic recession. IAPCOs ever growing commitment to
global
education realisation of more and better meetings.
and quality standards will certainly contribute to the

global realisation of more and better meetings.

20



The following Figure indicates the world regions being selected for incentive trips in the year
ahead, by participants
The following in the IRF
Figure indicates survey.
the world regions being selected for incentive trips in the year
ahead, by participants in the IRF survey.
INTRODUCTION

Figure 9. In the coming year, which geographic regions will you choose as destinations for your
incentive travel programme(s)?
Figure 9. In the coming year, which geographic regions will you choose as destinations for your
Readers
incentive
otf ravel
this ypears EIBTM Trends Watch Report will certainly notice the upbeat tone of
rogramme(s)?
months and the outlook for 2015. That confidence is justified by the findings of most of t he sources I
have used in the compilation of this report, and it undoubtedly comes as a result of the i mproving
situation in sCarribean 47%
ome key national economies this year. But it also reflects the fact that many in the
meetings a nd
North e vents
Carribean
America i ndustry a re a lready e xperiencing i mproving o rders f or f uture
43% 47%
business.
And although
North AoEurope
ur industry has not yet returned to pre-recession l34%
merica evels of activity, that, for
43% it is clear
Central AEurope
merica 19% 34%
Central
South America 14% 19%
South A
professionals hmerica
as Asia 11% 14% by an awareness of risks arising from the i mpacts of
increasingly been tempered
geopolitical developments
Asia
Africa
w hich m ay s till
8% 11%
p resent a s y et u nknown t hreats t o t he g lobal e conomic
recovery.
Africa
Not Applicable 6% 8%

Not A pplicable
Middle E ast 2% 6%

Middle East 2%


Rob Davidson
the same survey taken two years ago, 53 percent of the respondents indicated that North America
In
EIBTM
was Industry
their chosen Arnalyst
egion for incentive travel programmes. The change to this years figure of 43
In the same survey taken two years ago, 53 percent of the respondents indicated that North America
percent
Managing suggests that
MtICE
hey Kanowledge
re becoming more adventurous in their choices of destination.
was their cD irector,
hosen region for incentive travel programmes. The change to this years figure of 43
percent
The suggests
C&IT State of tthat
he Itndustry
hey are Rbeport
ecoming also mnore adventurous
oted in twheir
that agencies ere cbhoices of dmestination.
ecoming
ore adventurous in
terms of the destinations they are using for incentive travel:
The C&IT State of the Industry Report also noted that agencies were becoming more adventurous in

terms of Those
the destinations
that travelled they
to aEre using bfefore
urope or incentive travel: further afield to mid-haul destinations
are venturing
such as Istanbul, Morocco and the Middle East, while those who were travelling four to five
Those that travelled to Europe before are venturing further afield to mid-haul destinations
hours flight time are now considering long-haul
such as Istanbul, Morocco and the Middle East, while those who were travelling four to five
Finally, the IRF survey highlighted a onsidering
hours f light t ime a re n ow c number of leong-haul
merging destinations that would be popular in the

coming year, including China, Bali, Vietnam, Argentina and Peru, noting that such countries appeal is
Finally, the IRF survey highlighted a number of emerging destinations that would be popular in the
based on the fact that they offer
authentic experiences, intriguing cultural traditions and recent
coming year, including China, Bali, Vietnam, Argentina and Peru, noting that such countries appeal is
improvements in hotel and travel infrastructure.
based on the fact that they offer
authentic experiences, intriguing cultural traditions and recent
improvements in hotel and travel infrastructure.

21



REGIONAL VARIATIONS

REGIONAL VARIATIONS

INTRODUCTION

While it is useful to present a global picture of trends in the meetings and events industry, it is
equally important to review developments in specific world regions and to compare their respective
While it is useful to present a global picture of trends in the meetings and events industry, it is
performances. Below, supply and demand in some of the worlds key regions for business events are
equally important to review developments in specific world regions and to compare their respective
highlighted.
Readers of this Byelow,
ears EsIBTM
performances. upply Tarends
nd demand Watch in Report
some w of ill the
certainly
worlds notice the upbeat
key regions tone of events are
for business
confidence
highlighted. throughout the pages of this review of our industrys performance during the past 12

Europe
situation
Europe
It is difficult in stome
o make key gneneralisations
ational economies about this year. But ait
a continent s adlso reflects
iverse the fact
as Europe, in tphat many ifn
articular or the
a year
meetings
in a nd e vents i ndustry a re a lready e xperiencing i mproving o rders f or f uture b usiness.
It is difficult to make generalisations about a continent as diverse as Europe, in particular for against
w hich t he e conomic p erformances o f n ational e conomies h ave b een c onsiderably v aried. A year
a b
And ackground
although
in which the eo o f u neven
ur industry
conomic r ates o f e conomic
has not yet orf eturned
performances r ecovery,
national to G ermany
pre-recession
economies a nd
have levels t he U K a re
been ocf onsiderably a mong
activity, it is t hose
clear tA
varied. t hat
hat, for
gainst
have
now al ed
t l i n
east, t erms
w e h o f
ave t he
n s trength
avigated t o f
he teheir p
conomic erformances,
d ownturn
a background of uneven rates of economic recovery, Germany and the UK are among those that as nd t heir
uccessfully m eetings
a nd c a nd
onfidence e vents l i ndustries
evels h ave
fully
have rlreflect
been ising
ed in taterms
his.
s a c onsequence
of the strength of that achievement.
of their performances, and their meetings and events industries
fully erxample,
For eflect this. in t his years C&IT State
Nevertheless, this has been a year in wohich
f the tIhe
ndustry
cautious Report, CWTs
optimism of Mmeetings & Events
any meetings managing
and events
director
professionals f or t he
h U
as K
i & I
ncreasingly reland i s
b q uoted
een t a s
empered s aying:
b y a
For example, in this years C&IT State of the Industry Report, CWTs Meetings & Events managing n a wareness o f r isks a rising f rom t he i mpacts of
geopolitical
director Interest for tdhe evelopments
UaK nd & iInflation
reland which
is rates may
quoted satill
are spaying:
resent
ss table and aps yet uanknown
eople re spending threats
again, to the global
which economic
is reflected in
recovery. this sector. Wiere seeing that budgets
Interest and nflation rates are stable aand re cpoming
eople abre ack and delegate
spending again, nw umbers
hich is irncreasing.
eflected in
This r eport this i s
s d esigned
ector. W t o
ere h
s elp y
eeing ou
t b enchmark
hat b udgets ay our
re c o wn
oming
The same source noted that 92 percent of the Top 50 agencies operating in the UK are forecasting p erformance
b ack a nd d i n 2
elegate 014 n a nd
umbers a nticipate
i likely
ncreasing.
developments
growth this year. in the market in the year ahead.
The same source noted that 92 percent of the Top 50 agencies operating in the UK are forecasting
I But
h ope
growth t hat
the tchis yyear. ill
ou
ountries w of ftind
he ist outhern
useful ahs alf well
of aEs urope
interesting.
are not standing still. One indication that they are
determined to improve
But the countries of the tsheir
outhern competitiveness half of Europe in tahe
re nmot
eetings and still.
standing events
One mindication
arket is the fact
that that
they this
are
year
determined has seen
to the creation
improve of caompetitiveness
their number of new in convention
the meetings bureaus
and eivents
n the m
Market
editerranean countries.
is the fact that this
For e xample, a C osta B rava C entre C onvention B ureau h
year has seen the creation of a number of new convention bureaus in the Mediterranean countries. as b een c reated i n o rder t o p romote Spains
Costa Brava as
For eDxample, a destination for business events as well as leisure tourism. Similarly, in 2014, the
Rob avidson a Costa Brava Centre Convention Bureau has been created in order to promote Spains
new
Costa Italia
Brava Convention Bureau
as a destination for was founded
business - a body
events as wtell
asked with coordinating
as leisure the promotion
tourism. Similarly, in 2014, othe
f Italy
as a
EIBTM
new Italia d estination
Industry f or a
Analyst
Convention ll k inds o f e vents f rom f oreign m arkets. T he p roject
Bureau was founded - a body tasked with coordinating the promotion of Italy w as s ponsored b y
Confesercenti-Assoturismo,
as a destination for aM ll ICE
kinds Coonfturismo-Confcommercio,
f events from foreign markets. Federalberghi,
The project wFas edercongressi&eventi,
sponsored by
Managing Director,
Federturismo-Confindustria Knowledge
- a ll o f t he I talian a ssociations r epresenting t ourism and congress
Confesercenti-Assoturismo, Confturismo-Confcommercio, Federalberghi, Federcongressi&eventi,
companies.
Federturismo-Confindustria - all of the Italian associations representing tourism and congress
companies.
In terms of supply of venues f or meetings and events in Europe, in particular hotels with meetings
facilities,
In terms oAf dvito
supply notes that the
of venues for relatively
meetings small
and eavents
mount in oEf urope,
new capacity opening
in particular in 2014
hotels with is
mfeetings
ailing to
keep pace
facilities, Aw ith bnooming
dvito demand
otes that in first-tier
the relatively small cities such oaf s nLew
amount ondon, Paris
capacity and Barcelona.
opening in 2014 iAs s failing
a result,
to
demand i s p ushing u p
keep pace with booming demand r ates i n
t hese d estinations.
in first-tier cities such as London, Paris and Barcelona. As a result,
demand
The GBTA is Fpoundation
ushing up Crates in W
arlson these destinations.
agonlit Travel Global Travel Price Outlook maintains that hotel
prices
The in Eastern
GBTA Foundation Europe will begin
Carlson to recover
Wagonlit Travel in
G2lobal
014 aTfter falling
ravel Price (Oin US dollars
utlook terms)
maintains 7 phercent
that otel in
2012 a nd 2 p ercent i n 2 013. T his trend will be driven in part by an increase in meetings and events
prices in Eastern Europe will begin to recover in 2014 after falling (in US dollars terms) 7 percent in
activity
2012 in 2the
and region in
percent as meeting
2013. T his ptlanners look
rend will be dto the irn
riven elatively
part b y caheaper Eastern
n increase European
in meetings mearkets
and vents to
host their
activity in tehe
vents.
region as meeting planners look to the relatively cheaper Eastern European markets to
host
their events.

22



The US
As
The wU S be expected from a country experiencing a period of strong economic growth, the mood in
ould
the
As wUould
S meetings market has ab ceen extremely positive a pthis year.
of sTtrong
he findings of PCMA Convene
INTRODUCTION
Magazines
be expected from ountry
eetings M
experiencing
arket S urvey o f m
eriod
the US meetings market has been extremely positive this year. The findings of PCMA Convene and
m ost r ecent M ore t han 4 00 a
economic
ssociation, i
growth,
ndependent
the mood in
corporate planners - largely PCMAs own members showed that 41 percent expected growth in
Magazines most recent Meetings Market Survey of more than 400 association, independent and
2014. T
corporate phe planners
roportion of respondents
- largely PCMAs oewn xpecting
members their
bshowed
udgets tthat o increase in 2014
41 percent over 2g013
expected rowth was in
32
percent
Readers
2014. o f dptouble
The roportion that oEoIBTM
his years f f rtespondents
he pTroportion
rends Weatch who expressed
Report
xpecting will
their ctertainly
he same
budgets expectation
to nincrease
otice the in last
in u2pbeat
014 otver years
one of sw
2013 urvey.
as 32
confidence
percent d throughout
ouble t hat o tf he
t pages
he p of this w
roportion review
ho e of our industrys
xpressed t he s ame peerformance
xpectation idn uring
l ast y tears
he past
s 12
urvey.
Interestingly and bucking the trend in other world regions - the average lead time reported for
large meetings
Interestingly aand
ctually grew slightly firom 2.4 two orld
2.6 yregions
ears. - the average lead time reported for
have used in the bucking
compilation the
of ttrend n other
his report, and it undoubtedly comes as a result of the improving
large m
situation
But eetings
while in
msost ome a ctually g
key nrational
survey rew
espondents s lightly
economies f rom 2 .4 t o 2
this leading
said that .6
year. Bm y ears.
ut eeting
it also indicators
reflects the fact improving,
were that many m in any
the listed
meetings
situations a n nd e vents
egatively ai ndustry
ffecting acre a
ertain lready
s e xperiencing
ectors, i ncluding i
But while most survey respondents said that leading meeting indicators were improving, many listed mproving
m ore r o
igid rders
g f or
uidelines f uture
f or m b usiness.
edical m eetings
and policies
situations that cut ianto
negatively ffecting government employee attendance as well gauidelines
s climbing hotel costs maeetings
nd
And although our industry has cnertain
ot yet srectors,
eturned including more
to pre-recession rigid for
levels of activity, mit edical
is clear that, for
airfares
and affecting caut ll m eetings.
now paolicies
t least, that we have into
navigated government employee
the economic attendance
downturn as well as acnd
successfully limbing hotel clevels
confidence osts ahnd
ave
airfares
Michelle a
been rising ffecting
Russell, a ll m
as a consequence eetings.
editor in chief, of o that achievement.
f Convene Magazine summed up the findings as follows:
Michelle
Nevertheless, Russell,
On the wehole,
this ditor
h in eeting
as bm
een chief,
a year porofessionals
f iCn onvene
which tM aagazine
he cautious
re optimistic summed
optimism
about up otthe
he
f myfany
indings
ear m as f.ollows:
eetings
ahead .. Aand devents
espite the
professionals
fact t h as
hat m i ncreasingly
eeting b b
udgets een w t empered
ith a n e b y
xhibition a n a cwareness
omponent
On the whole, meeting professionals are optimistic about the year ahead ... And despite o f
h r isks
eld s a rising
teady of rom
ver l t he
ast y i mpacts
ear otf he
and
geopolitical
nearly
fact dthat
evelopments
meeting obf w
one-third hich mway
respondents
udgets still
ith peresent
aen xpected
xhibition tao s hcyomponent
et unknown
ave a larger hb threats
udget
eld tto
steady o w
tohe
ver global
ork lwast ehis
conomic
ith ytear year
and
recovery. the majority
nearly one-third continue to be asked
of respondents by management
expected to have at lo trim bmudget
arger eeting expenses.
to work with Dtoing
his ym ore
ear
with
the m l ess s
ajority eems
c t o
ontinue b e a
t
o g iven
b e a f or
sked m bany
y m anagement t o t rim m eeting e xpenses. D oing m ore
In terms with
developments less
of the id tshe
eems
n estinations to be
market a tghe
tihey
n iven for
year
were m any to use this year, 42 percent of respondents (up from
palanning
head.
39 tperms
In ercent
of ityn last years survey)
he they raeported that they
to uwse ould
this bye ear,
holding meetings of roespondents
utside the U(up S. Tfhe
I hope that ou dwestinations
ill find it useful ws ere
well planning
as interesting. 42 percent rom
destinations m ost l ikely t o b e c onsidered for m eetings h eld
39 percent in last years survey) reported that they would be holding meetings outside the US. The o utside t he U S a re i ndicated i n F igure 10.

destinations most likely to be considered for meetings held outside the US are indicated in Figure 10.

Figure 10. PCMA Survey: Destinations most likely to be considered for meetings held outside the
US. 10. PCMA Survey: Destinations most likely to be considered for meetings held outside the
Figure
Rob Davidson
US.
2014 Survey 2013 Survey
Canada 82%
2014 Survey 70%
2013 Survey
Western
Managing
Canada E urope
D irector, M ICE K nowledge 44%
82% 36%
70%
United
Western Kingdom
Europe 42%
44% 34%
36%
Asia Kingdom 42% 38%
United 42% 34%
Eastern
Asia Europe 39%
42% 25%
38%
Mexico
Eastern Europe 35%
39% 28%
25%
Caribbean
Mexico and Bermuda 34%
35% 27%
28%
South
Caribbean America
and Bermuda 28%
34% 25%
27%
Australia/Pacific
South America R im 28%
28% 21%
25%
Africa
Australia/Pacific Rim 20%
28% 13%
21%
Africa 20% 13%
Source: PCMA Convene Magazines
Meetings Market Survey 2014 and 2013

Source: PCMA Convene Magazines Meetings Market Survey 2014 and 2013

23



For the domestic US meetings market, rising demand but static supply means that venue rates are
growing, according to Advito. Rates in the US have returned close to the previous record levels of

INTRODUCTION
2007-08. It is a now sellers market in almost all destinations, especially in high-demand cities such
2007-08.
It is a now sellers market in almost all destinations, especially in high-demand cities such
as New York, Chicago, Los Angeles, Miami and San Francisco
as New York, Chicago, Los Angeles, Miami and San Francisco
2007-08. It is a now sellers market in almost all destinations, especially in high-demand cities such

Readers
as New Yoork, f this years ELIBTM
Chicago, Trends MWiami
os Angeles, atch aR eport
nd San Fwrancisco ill certainly notice the upbeat tone of
confidence
Yet, Advitos throughout
research suggests the pages that of etven
his rteview
hough otf hey our aindustrys performance
re in a strong position, U during the past
S suppliers m1ainly
2
Yet,
Advitos research suggests that even though they are in a strong position, US suppliers mainly
months a nd t he o utlook f or 2 015. T hat c onfidence
hotel properties - are still nervous about raising rates too quickly. For now, they are keeping i s j ustified b y t he f indings o f m ost o f t he s ources I
hotel properties - are still nervous about raising rates too quickly. For now, they are keeping
have
Yet, Audvitos
headline sed in rtiesearch
rate he compilation
ncreases moderate
suggests of tthat
his ereport,
but growing
ven though and it they
undoubtedly
revenues through
are comes as a rcesult
additional
in a strong position, US osf uppliers
harges: the
e.g. improving
energy,
mainly
headline rate increases moderate but growing revenues through additional charges: e.g. energy,
situation
meeting sipace
hotel properties n some - kaey
rental re cnsharges,
ational
till nervous economies
w hich this year.
are craising
about ommon in BEut
rates it q
turope,
oo also reflects
but
uickly. or nntow,
uFntil he
ow fact
athey that
are m
t least, any
nkot in itn he
eeping the
US.
meeting space rental charges, which are common in Europe, but until now at least, not in the US.
meetings a nd e vents i ndustry a re a lready e xperiencing
headline rate increases moderate but growing revenues through additional charges: e.g. energy, i mproving o rders f or f uture b usiness.
A final indication of the buoyant position of the US meetings market comes from the US Bureau of
A final indication
meeting space rental of the buoyant
charges, position
which are coommon
f the US in mEeetings
urope, m arket
but until comes
now aft rom the
least, US in
not Bureau
the US. of
And although
Labor Statistics our
which, industry has
in its not yet returned
Occupational Outlook to H pre-recession
andbook, says levels
that oit f eaxpects
ctivity, eit mployment
is clear that, for
Labor Statistics which, in its Occupational Outlook Handbook, says that it expects employment
now at indication
opportunities
A final least, wfor e hom ave navigated
f eeting,
the convention
buoyant tphe economic
osition and he dU
of etvent ownturn
pS lanners
meetings successfully
to m
grow
arket caomes
by 3nd
3 pcercent
onfidence
from tfhe Ulevels
rom 2012
S Bureau htave
o 2o022
f
opportunities for meeting, convention and event planners to grow by 33 percent from 2012 to 2022
been

Labor r ising
much a s
faster tw
Statistics a c onsequence
han hich, the in
average o f t hat a chievement.
for all occupations.
its Occupational Outlook Handbook, says that it expects employment
much faster than the average for all occupations.
opportunities for meeting, convention and event planners to grow by 33 percent from 2012 to 2022
much faster than the average for all occupations.
Martin Sirk - CEO of ICCA (International Congress and Convention Association)
geopolitical
Martin
Sirk -d Cevelopments
EO of ICCA (International which may still present and
Congress s yet unknown tAhreats
Convention ssociation) to the global economic

recovery.
Martin Sirk - CEO of ICCA (International Whilst iCt ongress is still very and early days in tA
Convention erms of collecting our 2014
ssociation)
Whilst it is still very early days in terms of collecting our 2014
This
report is designed to help you statistics
benchmark on international
your own performance association im n eetings,
2014 and anecdotal
anticipate feedback
likely
statistics on international association m eetings, anecdotal feedback
developments in the market in the from
Whilst
year I CCA
i t
ahead. i m
s s embers
till v ery a
e nd
arly e verything
d ays i n t w
erms e h
o ave
f c o bserved
ollecting o t
ur his
2 y
014 ear
from ICCA members and everything we have observed this year
would
statistics indicate
o n this should abssociation
international e another year when this segment of
would indicate this should be another m eetings,
year when anecdotal
this segment feedback
of
I hope that you will find it useful the afrom
s wm ell a s
eetings i nteresting.
market aw ill epverything
rove to have we eehxperienced robust
this yggear rowth,
the mIeetings
CCA members market w nd
ill prove to have ave observed
xperienced robust rowth,
at
would least indicate
in terms of tshe
this hould number of meetings,
be another year wiihen f not this
necessarily
segment iin of tthe
at least in terms of the number of meetings, f not necessarily n he
financial
the meetings h ealth o
market f a ll t he e vents t hemselves ( things a re s till t ough in
financial health of all twhe ill epvents
rove tto hemselves
have experienced (things arre obust
still tgough
rowth, in
many
at least economies).
in terms of tO ur noumber
wn growth in membership is as strong in aats
many economies). Ohe
ur own growth of meetings,
in membership if not necessarily
is as strong s he
we
financial have ehxperienced
ealth of all tiihe n aeny previous
vents year, w(ell
themselves distributed
things are still aatcross ough in
we have experienced n any previous year, well distributed cross
Rob Davidson all
many r egions
e o
conomies). f t he w orld,
O ur of urther
wn g s uggesting
rowth i n m t hat
embership m ore
i aand
s s s more as
trong
all regions of the world, further suggesting that more and more
destinations
we have experienced and companies in any paarevious
re including year, iinternational
well distributed associations
across
EIBTM Industry Analyst destinations and companies re including nternational associations
within
all regions t heir m ix
of mtix o
he ow f b usiness o bjectives.
within their f borld,
usiness further suggesting that more and more
objectives.
destinations a nd c ompanies a re including international associations
within their mix of business objectives.
Asia
Asia

As the economic performance of many Asian countries continues to outstrip those of other regions,
As
Asia the economic performance of many Asian countries continues to outstrip those of other regions,
Asia is asserting its position as a key destination for meetings and events as well as a growing source
of dthe
As emand.
economic performance of many Asian countries continues to outstrip those of other regions,
of demand.
The situation in China in particular is evolving fast. The findings of this years China MICE Buyers
The situation in China in particular
of demand. is evolving fast. The findings of this years China MICE Buyers
Report, launched at CIBTM in Beijing, showed that the meetings and events market in that country
Report, launched at CIBTM in Beijing, showed that the meetings and events market in that country
has m
The atured cin
situation onsiderably
China in particular in a short is sepace
volving of tfime
ast. aTnd he hfindings
as begun of tto function
his years Cmhina uch M mICE
ore Blike uyers
has matured considerably in a short space of time and has begun to function much more like
business launched
Report, events maarkets t CIBTM in o
in ther
Beijing, regions.
showed Price has tbhe
that ecome
meetings much more
and important
events market ais n at hat
factor taken
country
business events markets in other regions. Price has become much more important as a factor taken
into m
has account
atured bconsiderably
y buyers when in ac hoosing
short space destinations
of time and and venues
has begun for to their events.
function much Part
moore
f the
like reason
into account by buyers when choosing destinations and venues for their events. Part of the reason
for this new
business pragmatic
events markets approach oregions.
in other n the part Price of b huyers
as become m uch more
is undoubtedly the Chinese gaovernments
important s a factor taken
for this new pragmatic approach on the part of buyers is undoubtedly the Chinese governments
austerity
into account drive, by w hich hw
buyers as hen
had cahoosing
n impact on the market
destinations and fvor government
enues for their m eetings.
events. Part of the reason
austerity drive, which has had an impact on the market for government meetings.
for this new pragmatic approach on the part of buyers is undoubtedly the Chinese governments

austerity drive, which has had an impact on the market for government meetings.
24
24



Although such meetings are still among the top source markets for Chinas business events industry,
the country's industry players are now seeing stronger potential in the corporate and association
Although such meetings are still among the top source markets for Chinas business events industry,
meetings segment.
the country's industry players are now seeing stronger potential in the corporate and association
INTRODUCTION
meetings esarlier
Speaking egment. this year during a training session hosted by the MICE Committee China Association
of Travel Services in Shanghai, The Alliance of China Conference Hotels, deputy director, Wu
Speaking earlier this year during a training session hosted by the MICE Committee China Association
Shaoyuan, said: The number of corporate meetings are on the rise for the past few years while
of Travel Services in Shanghai, The Alliance of China Conference Hotels, deputy director, Wu
government
Readers of this meetings
years EaIBTM
re seeing
Trends declines.
Watch IRn eport
addition,
will cW u drew naotice
ertainly ttention
the uto association
pbeat tone of meetings
Shaoyuan, said: The number of corporate meetings are on the rise for the past few years while
as a segment
confidence with high pthe
throughout otential
pages fo or
f tdhis
evelopment,
review of ohur
ighlighting
industrys the benefits this
performance segment
during the p could bring
ast 12
government meetings are seeing declines. In addition, Wu drew attention to association meetings
to industry
months and ptlayers:
he outlook for 2015. That confidence is justified by the findings of most of the sources I
as a segment with high potential for development, highlighting the benefits this segment could bring
to industry players:
With Chinas rapidly ageing population, there are more medical and academic congresses
addressing such topics as ophthalmology, osteology and odontology. Such meetings also
meetings and C
With events
hinas irndustry
apidly aageing
re already experiencing
population, there aire mproving
more moedical rders afor
nd fauture business.
cademic congresses
pave for greater mobility to rotate across Chinese destinations; plus the long preparatory
addressing such topics as ophthalmology, osteology and odontology. Such meetings also
period orur
And although equired for hsas
industry uch
not myeetings
et returned gives tao mple sales and lm
pre-recession arketing
evels opportunities
of activity, for
it is clear that, for
pave for greater mobility to rotate across Chinese destinations; plus the long preparatory
meeting
now at least, we p hlanners, PCOs athe
ave navigated nd egconomic
round handlers,
downturn providing higher
successfully revenue
and and al evels
confidence common have
period required for such meetings gives ample sales and marketing opportunities for
winning
been rising as a csonsequence
ituation for aoll f pthat
layers (HQ magazine).
achievement.
meeting planners, PCOs and ground handlers, providing higher revenue and a common
One
Nevertheless, winning
interesting rsesponse
this ituation tfo
has been or ayll
at he polayers
ear pportunities
in which (HQ mcagazine).
the reated
cautious by oCptimism
hinas oongoing
f many amppeal as aa dnd
eetings estination
events for
international
professionals ahssociation conferences
as increasingly been tempered has been the
by an aadoption
wareness of othe convention
f risks bureau
arising from the m odel as oaf
impacts
One interesting response to the opportunities created by Chinas ongoing appeal as a destination for
means
geopolitical of winning such events.
developments which One example
may of such
still present as ayn
et initiative
unknown wtas seen tto
hreats his year
the in Heangzhou,
global conomic
international association conferences has been the adoption of the convention bureau model as a
where
recovery. the Hangzhou Tourism Commission (HTC) is taking steps to establish a convention bureau to
means of winning such events. One example of such an initiative was seen this year in Hangzhou,
ensure the destination does not lose its number three ranking in China.
where the His
This report angzhou
designed Tourism
to help Cyommission
ou benchmark (HTC) is taking
your own pserformance
teps to establish a convention
in 2014 and anticipate bureau to
likely
ensure
Speaking
developments t he d estination
at an iin
ndustry d oes n
roundtable
the market ot l ose
in the ydear i ts n umber
iscussion t hree r anking i n C hina.
ahead. in August, Roger Shu, MICE manager of HTC, said:
Speaking at yaou
There
I hope that n w
industry
were 5 irnternational
ill f1ind ioundtable
t useful as dwiscussion
m eetings
ell iin
n AHugust,
as interesting. Roger
angzhou in 2S013
hu, aM ICE
nd mcanager
the of nHumber
ity ranks TC, said:
three
in China with about 10,000 delegates. Our target is to reach 25 international meetings in
There were 15 international meetings in Hangzhou in 2013 and the city ranks number three
three years time. With a CVB, Hangzhou will be in a stronger position to influence decision-
in China with about 10,000 delegates. Our target is to reach 25 international meetings in
makers to hold association meetings from Europe, and to attract more incentive business to
three years time. With a CVB, Hangzhou will be in a stronger position to influence decision-
the city. Hangzhous needs for a CVB like Singapore, like Hong Kong, and to professionalise
makers to hold association meetings from Europe, and to attract more incentive business to
Rob Davidson
the industry are being highlighted to the citys mayor, and we hope the bureau can be set up
the city. Hangzhous needs for a CVB like Singapore, like Hong Kong, and to professionalise
by next year Source: HQ magazine
EIBTM Industry
the industry Analyst are being highlighted to the citys mayor, and we hope the bureau can be set up
by n ext y ear
Meanwhile, all over ASsia, ource:
the oHpening
Q magazine
of new venues in 2014 has added to the choice open to
meetings and events planners. Advito notes the opening of significant new meeting space
Meanwhile, all over Asia, the opening of new venues in 2014 has added to the choice open to
throughout Asia, and in China and India in particular, but indicates that meeting organisers are also
meetings and events planners. Advito notes the opening of significant new meeting space
exploring new destinations such as Vietnam, Indonesia and Cambodia.
throughout Asia, and in China and India in particular, but indicates that meeting organisers are also
exploring
According ntew destinations
o Advito, venue srates
uch ahs ave
Vietnam, Indonesia
continued to rise am
nd Cambodia.
oderately in S hanghai and Beijing this

year, but new supply is helping buyers negotiations in other mainland Chinese cities. The same
According to Advito, venue rates have continued to rise moderately in Shanghai and Beijing this
source notes, however, that r ates are rising fast in Singapore.
year, but new supply is helping buyers negotiations in other mainland Chinese cities. The same
source notes,
New supply is haowever,
lso being that r ates
added in tahat
re roising
ther fast
Asia in pSower-house
ingapore. for the meetings and events industry,
South Korea, where the year-end will see the opening of the MICE Cluster in Seoul, an initiative that
New supply is also being added in that other Asia power-house for the meetings and events industry,
will provide a one-stop shop for accommodation, conventions, shopping and leisure in the district of
South Korea, where the year-end will see the opening of the MICE Cluster in Seoul, an initiative that
Gangnam. Launched by Coex Convention and Exhibition Center sahopping
nd Korea International Trade
will provide a one-stop shop f or accommodation, conventions, and leisure in the district of
Association, the cluster will bring together 12 business and tourism facilities in an integrated
Gangnam. Launched by Coex Convention and Exhibition Center and Korea International Trade
complex that spans 200,000 square metres. The project aims to position Seoul as a premier
Association, the cluster will bring together 12 business and tourism facilities in an integrated
complex
that spans 200,000 square metres. The project aims to position Seoul as a premier

25


destination for meetings and business travel, similar to Melbournes convention district and the
Marina Bay Sands integrated resort in Singapore.
destination for meetings and business travel, similar to Melbournes convention district and the
Marina Bay Sands integrated resort in Singapore.
INTRODUCTION

Middle East / Africa
Middle East / Africa
The Middle East / Africa region has asserted itself this year as a source of demand for meetings and
events,
Readers bout
f taEhis
lso yaears
s a dEestination.
IBTM Trends The findings of the w2ill 014 Middle East Bthe
uyers Report, launched at
The Middle ast / Africa region has aW atch Rieport
sserted tself this ycear
ertainly
as a snource
otice upbeat
of demand ftor
one of
meetings and
confidence
events, ibn ut
GIBTM tahroughout
Abu lso
Dhabi the pages
as a idndicated
estination. Tohe
f this
a robust review
findings of otf he
intra-regional our
2m industrys
014 Middle
arket for mpEerformance
ast Buyers
eetings, Rdeport,
with uring
Dubai tlaunched
he past 12
emerging aat s

months
the GCC country most widely chosen by respondents for such events, with 66 percent of the sbources
a nd t he o utlook f or 2 015. T hat c onfidence i s j ustified b y t he f indings o f m ost o f t he uyers I
GIBTM
have used in Aibu Dhabi
n the indicated oaf trhis
chompilation obust intra-regional
report, market for omes meetings, a rwesult
ith Doubai
f the eimerging as
reporting having eld meetings there in the apnd
ast it 2u yndoubtedly
ears. Other cM iddle aEs ast destinations mproving
frequently
the GCC country most widely chosen by respondents for such events, with 66 percent of the buyers
situation
used by the in spome key w
lanners national
ere Qatar economies
and Oman, this year. But
followed it Baahrain
by lso reflects
and Ktuwait.
he fact that many in the
reporting having held meetings there in the past 2 years. Other Middle East destinations frequently
used
But it bis
y ethe
qually planners
clear fwrom
ere tQhe
atar and Ooman,
findings f the frollowed
eport that by MBahrain
iddle Eaastern
nd Kuwait.
planners are regularly
looking a t d estinations w ell b eyond t heir o wn r egion.
And although our industry has not yet returned to pre-recession levels of activity, J ust u nder 7 0 p ercent of respondents
it is clear trhat,
eported
for
But it is equally clear from the findings of the report that Middle Eastern planners are regularly
that
now tahey
t l had wue
east, sed
h European
ave n avigated destinations
t he e conomic for their
d ownturn events successfully
in the past 2a nd
years,
c with France,
onfidence l evels Sh pain,
ave
looking at destinations well beyond their own region. Just under 70 percent of respondents reported
Austria,
been they
rising Italy as auand Turkey (in that
consequence f tohat
rder) being the most popular countries; almost 50 percent had
that had sed European doestinations achievement.
for their events in the past 2 years, with France, Spain,
held events in Asian countries, with Malaysia, Thailand, India and Sri Lanka (in that order) being the
Austria,
Nevertheless, I taly a nd T urkey ( in t hat o rder) b eing the most popular countries;
f many am lmost 50 paercent had
most popular ctountries; his has been and aa ylmost
ear in 3w 0 hich
percent the chautious
ad chosen optimism
North Aomerican deetings
estinations nd feor
vents
their
held events in Asian countries, with Malaysia, Thailand, India and Sri Lanka (in that order) being the
professionals
meetings and heas increasingly been tempered by an awareness of risks arising from the impacts of
vents.
most popular countries; and almost 30 percent had chosen North American destinations for their
meetings
Expansion aond f meeetings
vents. facilities also continues this year in the Middle East / Africa region. According
recovery.
to the August 2014 STR Global Pipeline Reports, this region reported 628 hotels under contract,
Expansion of meetings facilities also continues this year in the Middle East / Africa region. According
totalling
This report 147,454 rooms. o Ahmong
is d2esigned the key markets in the region, Jeddah, in Saudi Aarabia, reported the
to the August 014 STR tG elp yPou
lobal benchmark
ipeline Reports, your
this orwn performance
egion reported 628 2h014
otels nd anticipate
under contract, likely
largest
developments increase in in existing
trhe market supply (+115.7
in the year percent) if all 7,396 rooms under contract open. Four
totalling 147,454 ooms. Among the key am head.
arkets in the region, Jeddah, Saudi Arabia, reported the
other markets reported more than 50 percent expected room growth: Riyadh, Saudi Arabia (+113.0
largest increase in existing supply (+115.7 percent) if all 7,396 rooms under contract open. Four
I hope that
percent with you will find
10,095 it useful
rooms); Doha, as Q
watar
ell as (+79.7
interesting. percent with 10,828 rooms); Lagos, Nigeria (+63.3
other markets reported more than 50 percent expected room growth: Riyadh, Saudi Arabia (+113.0
percent with 2,397 rooms); and Muscat, Oman (+55.6 percent with 3,006 rooms).
percent
with 10,095 rooms); Doha, Qatar (+79.7 percent with 10,828 rooms); Lagos, Nigeria (+63.3
percent
Africas swupply ith 2,397
of mrajor
ooms); and Mvuscat,
meetings enues Owman (+55.6
ill take percent
a major step wforward
ith 3,006 rooms).
this December, with the
opening of Nigerias first dedicated international convention centre, the Calabar International
Africas supply of major meetings venues will take a major step forward this December, with the
Convention Centre, with a total capacity of over 5000. From the spacious foyers, the delegates will
opening
Rob Dsavidson of Nigerias first dedicated international convention centre, the Calabar International
enjoy pectacular views on the Calabar River. The first commercial events are expected from early
Convention Centre, with a total capacity of over 5000. From the spacious foyers, the delegates will
2015.
EIBTM spectacular
Industry Analyst
enjoy views on the Calabar River. The first commercial events are expected from early
2015.
Australia
Australia events industry is important for Australian tourism, with spending by delegates
The business

attending business events in Australia currently worth AU$ 13 billion, for the year ending June 2014.
The business events industry is important for Australian tourism, with spending by delegates
Since the launch of the Business Events 2020 strategy in 2010, total delegate spend has increased by
attending business events in Australia currently worth AU$ 13 billion, for the year ending June 2014.
44 percent from AU$ 9 billion, putting the sector well on track to achieving its target of AU$ 16
Since the launch of the Business Events 2020 strategy in 2010, total delegate spend has increased by
billion annually by the end of the decade.
44 percent from AU$ 9 billion, putting the sector well on track to achieving its target of AU$ 16
billion annually by tmhe end the decade.
However, this year uch of otf he business events data for Australia has indicated a general softening
across key measures (spend, number of business visitors, number of nights spent in Australia),
However, this year much of the business events data for Australia has indicated a general softening
despite growth in some inbound markets such as Japan. Business Events Australia attributes this in
across key measures (spend, number of business visitors, number of nights spent in Australia),
part to the fact that competition in this market is becoming fiercer as the supply of new business
despite growth in some inbound markets such as Japan. Business Events Australia attributes this in
events destinations means an even greater offering of new choices to customers.
part to the fact that competition in this market is becoming fiercer as the supply of new business
events destinations means an even greater offering of new choices to customers.

26



Nevertheless, Australia has been stepping up its efforts to win new meetings and events business
this year. For eAxample,
Nevertheless, ustralia ihn as
Mbay Business
een Events
stepping Australia
up its efforts tlo
ed wain
dnelegation of 16
ew meetings industry
and events partners
business to
Singapore,
this year. For Malaysia and
example, in Indonesia, which
May Business succeeded
Events in gled
Australia enerating 21 leads
a delegation of 1f6
or industry
the Australian
partners to
INTRODUCTION
business e vents i ndustry.
Singapore, Malaysia and Indonesia, which succeeded in generating 21 leads for the Australian
business events industry.


confidence
Ignasi throughout
de Dels the opf
- President ages
ECM of (European
this review of our
Cities Miarketing)
ndustrys performance during the past 12
months and the outlook for 2015. T hat confidence is justified by the findings of most of the sources I
Ignasi de Dels - President of ECM (European Cities Marketing)
have used in the compilation of this The last two years have turned out to be positive for the
report, and it undoubtedly comes as a result of the improving
situation in some key national economies meetings industry
this year. Biut
n Eit urope.
also The trends
reflects confirm a rany
eal irn
ecovery
The last two years have turned out tthe
o bfe
act that m
positive for the the
meetings and events industry are ameetings and i ncreased
lready experiencing d emand i a fter
mproving t he
o t urmoil
rders f o
or f
f t he
uture E uropean
b usiness.
industry in Europe. The trends confirm a real recovery
economic crisis. The improvements are more regular within the
and increased demand after the turmoil of the European
And although our industry has not non-corporate
yet returned to segment,
pre-recession with ilncreases
evels of aictivity,
n the number it is clear
of tm hat, for
eetings
economic crisis. The improvements are more regular within the
now at least, we have navigated the economic
and attendance downturn
levels; sbuccessfully and confidence
ut the corporate segment ils evels still ghrowing
ave
non-corporate segment, with increases in the number of meetings
been rising as a consequence of that significantly.
achievement. This is very encouraging news for European cities.
and attendance levels; but the corporate segment is still growing
The ECM Monitor states that between 50 and 70% of ECM
significantly.
Nevertheless, this has been a year members in which the cTautious
his is very encouraging news for European cities.
believe that oaptimism
ll meetings of m any
industry meetings segments and weill
vents
grow
The ECM Monitor states that between 50 and 70% of ECM
professionals has increasingly been tempered to
compared by an laast
the wareness
quarter oof f r2isks arising
013. ECM w from the kieep
ill also mpacts on of
members believe that all meetings industry segments will grow
geopolitical developments which mimproving ay still present as yet unknown
its initiatives to support threats to the global
its members economic
in emerging
compared to the last quarter of 2013. ECM will also keep on
recovery. markets and especially India.
improving its initiatives to support its members in emerging

This markets
report is designed to help you benchmark and yeour
specially
own pIerformance
ndia. in 2014 and anticipate likely



Rob Davidson
27



OUTLOOK FFOR
OUTLOOK OR 22015
015
INTRODUCTION

The e
The economic
conomic ooutlook
utlook
Readers
The llatest
The of fforecast
atest this years
orecast EIBTM
ffrom
rom he IITnternational
tthe rends Watch
nternational MRonetary
M eport wffill
onetary certainly
und
und iis hat, naaotice
s tthat, fter ggtrowing
fter he upbeat
rowing t aat one
aat ate oo
rrate of f
f 33.3
.3
percent tthis
confidence
percent his throughout
yyear,
ear, w world
orld teehe
conomic
pages oggf rowth
conomic rowth sshould
this review hould of iincrease
ncrease
our industrys tto
o 3 3.8
.8 p ercent iin
performance
ercent n 22015. during
015. B
But ut ttthe
his
his piis ttwo-
ast
s 12
wo-
months
tenths o a nd
f a p t he
oint o l utlook
ower t f or
han
tenths of a point lower than its previous estimate. 2
i 015.
ts p T hat
revious c onfidence
e stimate. i s j ustified b y t he f indings o f m ost o f t he s ources I
The
The IIMF
MF h as
as saaome
hin m
more
ore o
optimistic
ptimistic view
iew o of
f tthe
he tU S
S eeyconomy, which it
t eexpects w
wfill ggrow 2.2 p
percent tthis
situation key national evconomies Uhis conomy,
ear. But iw t ahich
lso rieflects xpects the ill
act row
that 2m .2 any ercent
in the his
year,
year, u p f rom
up from a n e arlier f orecast o f 1 .7 p ercent. I ts f orecast i s f or 3 .1 p ercent g rowth i
in the US next
n t he U S n
meetings and ean earlier
vents forecast
industry are oaf lready
1.7 percent.
experiencing Its forecast improving is for 3o.1 percent
rders growth
for future business. ext
year.
year.
Oxford
Oxford Economics aalso
lso np redicts
redicts tthat the gglobal
lobal deeownturn
conomy
conomy w ill
ill ffare
are b better iin
n c2 015,
015, b but
ut aalt aa m
more
now at Eleast,
conomics we have pavigated hat
the tehe
conomic wsuccessfully etter
and 2onfidence t evels ore
have
moderate
moderate r
r ate,
ate, 3
3 .1
.1 p
p ercent,
ercent, u
u p
p f
f rom
rom 2
2 .6
.6 p
p ercent
ercent i
i n
n 2
2 014.
014. I
I ts
ts r
r egional
egional v
v ariations
ariations a
a re
re s
s hown
hown iin
n FFigure
igure
11.
11.

geopolitical
Figure developments which may still present as yet unknown threats to the global economic
Figure 1 11.Regional
1.Regional eeconomic conomic ggrowth rowth fforecasts orecasts 2 2014-2015.
014-2015.
recovery.
2014
2014 2015
2015
This
North r eport
A merica i s d esigned t o h elp y ou b enchmark y our
1.6% o wn p erformance i n 2 014 a nd anticipate likely
2.9%
North America 1.6% 2.9%
developments
Europe
Europe in the market in the year ahead. 1.5% 1.5% 1.6%
1.6%
Asia
Asia 4.4%
4.4% 4.2%
4.2%
Latin A merica
Latin America 1.4%
1.4% 2.4%
2.4%
Middle E ast
Middle East 3.5%
3.5% 3.7%
3.7%
Africa
Africa 3.5%
3.5% 3.8%
3.8%
Southwest P
Southwest Pacific
acific 3.2%
3.2% 3.1%
3.1%

Rob Davidson
Source: O
Source: Oxford
xford EEAconomics,
conomics, August 2014
EIBTM Industry nalyst August 2014
As w
As weaker
eaker ttrade
rade aand
nd iinvestment
nvestment h have
ave ssoftened
oftened ggrowth rowth iin n eemerging
merging m markets,
arkets, O Oxford
xford EEconomics
conomics h has
as
lowered iits
lowered ts 2
2015
015 fforecast
orecast ffor or tthese
hese ccountries
ountries ffrom rom 5 5.1
.1 p percent
ercent tto o 44.7
.7 p
percent.
ercent. IIt t eeven
ven fforecasts
orecasts
Chinas economy to slow to 7 percent in 2015 - as it reduces its reliance on investment aand
e conomy
Chinas t o s low t o 7 p ercent i n 2 015 - a s i t r educes i ts r eliance o n i nvestment nd
exports.
exports. This is practically identical to the IMFs prediction for Chinas growth in 2015, 7.1 percent.
T his i s p ractically i dentical t o t he I MFs p rediction f or C hinas g rowth i n 2 015, 7 .1 p ercent.

Outlooks ffor
Outlooks or ggrowth
rowth iin n tthe
he EEurozone
urozone eeconomy conomy iin
n 2 2015
015 vvary ary b between
etween 1 1.3
.3 p
percent
ercent ((IMF)
IMF) aand
nd 1 1.2
.2
percent ( EIU), b ut a re i n a ny ase modest, when compared with other world regions.
c
percent (EIU), but are in any case modest, when compared with other world regions.
Nevertheless,
Nevertheless, tthere here aare
re p
pockets
ockets o of
f o
optimism
ptimism w which
hich sshould
hould n not
ot b be
e o overlooked.
verlooked. A According
ccording tto o tthe
he
Economist I ntelligence U nit, b y 2 015 E gypt's e conomy s hould
Economist Intelligence Unit, b y 2015 Egypt's economy should improve as business confidence i mprove a s b usiness c onfidence
returns
returns ffollowing
ollowing tthe he eelection
lection o of
f tthat
hat ccountrys
ountrys n new
ew p president.
resident. A A ssolid
olid pperformance
erformance iin n G
Gulf
ulf C
Co-o-
operation
operation Council countries, driven by infrastructure investment and higher oil production, will
C ouncil c ountries, d riven b y i nfrastructure i nvestment a nd h igher o il p roduction, w ill aalso
lso
support g rowth. A nother
support growth. Another success s uccess
s
s tory
tory u
u s
s l
l ikely
ikely t
t o
o b
b e
e S
S ub-Saharan
ub-Saharan
A
A frica,
frica, w
w ith
ith a
a ccelerating
ccelerating g
g rowth
rowth
from
from aan
n eestimated
stimated 3 3.6
.6 p
percent
ercent iin n 22014
014 tto
o 4
4.5
.5 p
percent
ercent iin n 2
2015
015 rreflecting
eflecting sstrong trong iinvestment
nvestment iin n tthe
he
extractive i ndustries a nd l inks t o f ast-growing e conomies i n
extractive industries and links to fast-growing economies in Asia. Commodity production in that A sia. C ommodity p roduction i n t hat
region
region wwill
ill ccontinue
ontinue tto
o rrise,
ise, bbut
ut w with
ith iit
t wwill
ill ccome
ome ggreater
reater eexposure
xposure tto o vvolatility
olatility iin n p
prices .
rices.
28
28
Reed TTravel
Reed ravel EExhibitions
xhibitions || EEIBTM
IBTM TTrends
rends WWatch
atch RReport
eport 22014
014 2


The meetings and events industry in 2015
INTRODUCTION
Forecasters are practically unanimous in their predictions that 2015 will witness continuing growth
in meetings, events and business travel generally. Advito, for example, predicts that in some world
regions the US and parts of Europe there will be more of a sellers market, thanks to growing
demand and little new supply. As a consequence, late bookers will increasingly be challenged by
non-availability and high rates. This is likely to put pressure on lead-times.
months
The GBTA and the outlook
Foundation for 2015.
Carlson That cTonfidence
Wagonlit ravel Global is justified
Travel Price by the findings
Outlook of mthat
notes ost obf usiness
the sources
travel I
have used reached
spending in the compilation of this
US$ 1.1 trillion in 2report, and
013 and is eit xpected
undoubtedly comes bay s 6a.9
to advance result of tahe
percent nd improving
8.6 percent
situation
in in s2ome
2014 and 015, krey national eG
espectively. conomies
rowth in tbhis year. tBravel
usiness ut it w
also
ill bre
eflects
led by the fact that in
expansion meany in the
merging
markets.
And malthough
For eetings aond ur eindustry
vents in h2as not the
015, yet GrBTA
eturned to pre-recession
Foundation Carlson Wlevels of Taravel
agonlit ctivity, it is clear
Global that,
Travel for
Price
now a t l east, w e h ave n avigated t he e conomic d ownturn s uccessfully a nd
Outlook makes the following forecasts, with particular emphasis on the corporate market for c onfidence l evels h ave
been rising
meetings as iancentive
and consequence
travel: of that achievement.
Nevertheless,
this has been a year in which the cautious optimism of many meetings and events
Compliance
geopolitical will be a shared
developments concern,
which regardless
may still present oaf
s iyndustry or geography
et unknown the global economic
threats to
recovery.
This
report
There will is
be designed to help ymou
more domestic benchmark your own performance in 2014 and anticipate likely
eetings

Mid-priced hotels that still offer core M&E onsite services will be the most popular

Booking lead times will become shorter (although this may vary by region. Lengthening lead times
Rob Davidson
in the US have already been mentioned)
EIBTM
Industry Analyst
Managing
Clients wD
ill irector,
become Mm
ICE Knowledge
ore focused on reducing required deposits, except for large meetings

Social technology use (e.g. d edicated apps per meeting) will gain in popularity (64 percent of
corporate event planners in C&ITs survey said that they were considering creating a mobile app for

their events in 2014. This has grown from just 23 percent in C&ITs State of the Industry report in
2010)
To this list may be added the ever-growing involvement of procurement departments in the
meetings and incentives purchasing process, as the pressure on companies to buy better continues,

putting pressure on events and all marketing areas. One challenge presented by the involvement of
procurement professionals is that their work is primarily focused
on driving bottom-line discount,
which does not take into account the important creative and branding side of events. In many world
regions, procurements understanding of the highly creative side of events is still limited
29


In terms of how meetings- and events-related costs will evolve the various world regions in 2015, the
GBTA Foundation Carlson Wagonlit Travel Global Travel Price Outlook makes the following
INTRODUCTION
predictions:
Readers of this years EIBTM Trends

Asia Pacific Watch aRttendee
Modest eport wcill certainly
ost notice
and group the
size increases upbeat tone of
Europe, Middle the
East and pages oGroup
Africa f this rseview of our industrys
izes remaining flat, and pserformance
lightly lower during the pcosts
attendee ast 12
Latin America
months and the outlook for 2015. TThe
hat hcighest
onfidence expected per-attendee
is justified cost. Increases,
by the findings of most oaf nd
the sources I
moderately
have used in the compilation of this report, and increasing
it undoubtedly demand (due ats o ah righ
comes inflation)
esult of the improving
North A merica
situation in some key national economies this year. But it also reflects the fact that gmroup
Modest i ncreases i n p er-attendee s pending a nd any sin
ize
the

In terms
And of risk
although factors,
our both
industry Advito
has and
not yet GBTA Foundation
returned Carlson
to pre-recession Wagonlit
levels Travel it hiighlight
of activity, s clear tahat,
for
number
now of potential
at least, disruptors
we have navigated otf he
meetings
economic and events activity
downturn in 2015:
successfully and confidence levels have

The Russia / Ukraine crisis could affect European and Russian economies, by threatening Russian
growth and trade with Europe. There could be potential knock-on risks from short-term spikes in
energy prices
recovery.

developments in the m
Eurozone deflation arket
could in the yaear
provoke ahead.
nother recession in the region, as falling prices w ould lead to
the expectation of future price drops, causing consumers and businesses to delay spending

Burgeoning local government and corporate debt in China could result in a hard landing for the
Chinese economy, with serious worldwide consequences
Rob
Davidson
EIBTM Industry
Oil shocks: Analyst
concerns over potential supply disruptions resulting from geopolitical events such as
Managing Director, MICE rKesult
the c onflict i n S yria c ould in oil price instability
nowledge

The Ebola virus outbreak, w hich has already spread to Europe and the US, might extend its reach
and have an impact of international travel

30


CONCLUSION
INTRODUCTION

This report has highlighted the key developments in the global meetings and events industry during
2014, with particular emphasis on quantitative and qualitative changes in demand in this market.
confidence
As ever, the throughout
situation varies the pfages
rom roegion
f this tro
eview of oaur
region, industrys
s the worlds peerformance
conomies progress during tahe t dpifferent
ast 12
months
paces, contrasting developments in mature markets with advances in emerging economies. s ources I
a nd t he o utlook f or 2 015. T hat c onfidence i s j ustified b y t he f indings o f m ost o f t he
Reference
situation in wsas
ome made
key enarlier
ational in ethis report tto
conomies the
his World
year. But Eit conomic Forum
also reflects at fact
the Davos,
that om ne of ion ur
any the
industrys am
meetings nd ost high-profile
events industry events. It is worthy
are already of note itmproving
experiencing hat the theme
orders of for
last years bcusiness.
future onference was
Resilient Dynamism. As we move forward into 2015, these are precisely the qualities that the
And
meetings although and oeur industry
vents has wnill
industry ot bye
et returned
called to
upon pre-recession
to demonstrate: levels of activity,
resilience the ait bility
is clear
to rtemain
hat, for
now a t l east, w e h ave n avigated t he e conomic d ownturn s uccessfully
strong and successful in the face of challenges; and dynamism energy, and a strong desire to a nd c onfidence l evels h ave
been rising
progress as a consequence
through of that achievement.
vigorous activity.
Nevertheless,
Our this has baeen
past performance s an aindustry
year in w hich the
suggests cautious
that in the oyptimism
ear ahead of w
me
any moeetings
will and
nce again events
use these
qualities of resilience and dynamism to rise to the challenge of surviving and thriving in an ever- of
professionals h as i ncreasingly b een t empered b y a n a wareness o f r isks a rising f rom t he i mpacts
geopolitical
evolving developments which may still present as yet unknown threats to the global economic
world.
recovery.



Rob Davidson
31


SOURCES
SOURCES
INTRODUCTION

All 2014, unless otherwise stated.
All 2014, unless otherwise stated.
Readers of this 2y015
Advito ears EIBTM TFrends
Industry orecast Watch Report will certainly notice the upbeat tone of

confidence Advito 2 015
throughout I ndustry
the F orecast
pages oRf eport this review of our industrys performance during the past 12
C&IT State of the Industry
months C&IT
a nd t State
he o of the for
utlook Industry
2 015. Rhat
T eport
confidence is justified by the findings of most of the sources I
CIBTM: China MICE Buyers Report
have CIBTM: C hina M ICE B uyers R eport
used in the cGompilation
Deloitte: lobal Economic of this report, Q
Outlook, and
3 it undoubtedly comes as a result of the improving

situation Deloitte: G lobal
in some GkCC E conomic
ey nPational O utlook, Q 3
Deloitte: owers oef conomies
Construction this year. But it also reflects the fact that many in the
meetings Deloitte: GCC industry
Powers oaf Construction
Economist Intelligence Unit (EIU): Gxperiencing
a nd e vents re a lready e lobal Forecast improving orders for future business.
Economist Intelligence Unit (EIU): Global Forecast
Economist Intelligence Unit (EIU) Growing Africa Cities 2013
And although
Economist our industry
Intelligence has nUot nit yet returned
(EIU) Growing to A
pfrica
re-recession levels of activity, it is clear that, for
Cities 2013
Euler Hermes Economic Outlook no.1204
now at lEuler
east, w e h ave n avigated
Hermes Economic Outlook no.1204 t he e conomic d ownturn s uccessfully and confidence levels have
EUROCONSTRUCT Conference, June 13: Press release
been rising as a consequence
EUROCONSTRUCT of that achievement.
Conference, June 13: Press release
GBTA Foundation Carlson Wagonlit Travel Global Travel Price Outlook
GBTA Foundation Carlson Wagonlit Travel Global Travel Price Outlook
Nevertheless,
GIBTM this has bEeen
Middle ast Bauyers
year iRn eport
which the cautious optimism of many meetings and events
GIBTM Middle East Buyers Report
Global
professionals hC onstruction
as increasingly Perspectives
been tempered and O bxford
y an aEwareness
conomics: of Grlobal
isks aC onstruction
rising 2025
from the impacts of
Global Construction Perspectives and Oxford Economics: Global Construction 2025
HeadquartersMagazine.com:
geopolitical developments which may Cshina sees growing
till present as yet upnknown
otential tfhreats
or association
to the gelobal
vents,
economic
HeadquartersMagazine.com: China sees growing potential for association events,
recovery. September 1
September 1
HeadquartersMagazine.com: Hangzhou sets up CVB to consolidate MICE position in China,
This report is designed to help you benchmark
HeadquartersMagazine.com: Hangzhou your
sets ouwn
p CpVB
erformance
to consolidate in 2014 and
MICE anticipate
position in Clhina,
ikely
August 8
developments August in 8 the market in the year ahead.
Incentive Research Foundation Fall Pulse Survey
Incentive Research Foundation Fall Pulse Survey
International
that
I hope Monetary
you will find it useful Faund: Waorld
s well Economic Outlook
s interesting.
International Monetary Fund: World Economic Outlook
KPMG International: Growing the pipeline, growing the bottom line. Shifts in pharmaceutical
KPMG International: Growing the pipeline, growing the bottom line. Shifts in pharmaceutical
R&D innovation
R&D innovation
KPMG Technology Industry Outlook Survey
KPMG Technology Industry Outlook Survey
Marketing Challenges International: Trends in International Association Meetings from
Rob Marketing Challenges International: Trends in International Association Meetings from
Davidson
North America
North America
Oxford Economics: Regional economic growth forecasts
EIBTM Industry
Oxford EAconomics:
nalyst Regional rd economic growth forecasts
PCMA: Convenes 23rd Meetings Market Survey
PCMA: Convenes 23 Meetings Market Survey
Managing SITE International
Director, MICE KFoundation:
nowledge Index Annual Survey, December 2013
SITE International Foundation: Index Annual Survey, December 2013
STR Global Pipeline Reports
STR Global Pipeline Reports
The Economist: Taking Europes pulse, August 15
The Economist: Taking Europes pulse, August 15
The Financial Times: C hinese pharma R&D marks step forward, August 25
The Financial Times: Chinese pharma R&D marks step forward, August 25
The Financial Times: US investors pump funds into Europes digital scene, August 19
The Financial Times: U S investors pump funds into Europes digital scene, August 19
The Guardian: US economy expands at fastest rate in nearly three years, September 26
The Guardian: US economy expands at fastest rate in nearly three years, September 26
Timetric: Construction B Business Confidence Report Q3
Timetric: Construction usiness Confidence Report Q3
Tourism Australia: Business Events Sector Quarterly Progress, June
Tourism Australia: Business Events Sector Quarterly Progress, June
Tourism Australia: Quarterly Market Update, August
Tourism Australia: Quarterly Market Update, August
UIA (Union of International Associations) International Meetings Statistics Report
UIA (Union of International Associations) International Meetings Statistics Report
US Bureau of Labor Statistics: Occupational Outlook Handbook
US Bureau of Labor Statistics: Occupational Outlook H andbook
32


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18-20 November 2014 Barcelona, Spain

I hope that you will find it useful as well as interesting.

Managing Director, MICE Knowledge

I hope that you will find it useful as well as interesting.

According to the International

Managing Director, MICE Knowledge

Philippe Fournier- President of JMIC (Joint Meetings Industry Council)

I hope that you will find it useful as well as interesting.

EIBTM Industry Analyst

Managing Director, MICE Knowledge

Readers of this years EIBTM Trends

I hope that you will find it useful as well as interesting.

EIBTM Industry Analyst

Managing Director, MICE Knowledge

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