|APAC to see decline in meetings and events in 2014.|
Sunday, 1st December 2013
Source : Web in Travel
After two years of modest budget and activity increases the Asia Pacific region appears to be slowing down, and is expected to experience a slight drop (-1.2%) in the number of meetings in the region next year, according to the American Express Meetings & Events 2014 Global Meetings Forecast.
Meeting planners are expected to turn to more local and regional meetings as tighter budgets, stricter approvals and demands for greater meeting efficiency are likely to Increase
APAC is also expected to experience the largest decline among all regions in overall meetings spend per organisation (-3.6%), as the region likely shifts towards greater spend control.
Meeting planners in the region also forecast a 2.4% decline in the number of attendees per meeting.
“While businesses throughout Asia Pacific still recognise the importance of meetings and events, over the past year there has been a shift towards greater control and transparency within meetings programmes,” said Danielle Puceta, director, American Express Meetings & Events, Asia Pacific.
“After two years of optimism, in 2014 we expect slight decreases in the frequency and spend-per-organisation when it comes to meetings and events in the Asia Pacific region. We believe this is indicative of a maturing industry and a phase of greater scrutiny, aimed at ensuring meetings and events activity truly meets organizational objectives.”
Added Issa Jouaneh, vice president and general manager, American Express Meetings & Events, “Heading into 2014 meetings and events will likely continue to remain critical drivers for organisations to align on strategic business objectives and effectively communicate with employees, customers and partners worldwide.
“In an environment where budgets are expected to be challenging and the approval process for meetings will likely continue to be stringent, companies across all regions are re-examining their meetings strategies in order to achieve meeting objectives, increase efficiency and control costs.”
Below are snapshots of the key predictions based on the survey of meetings professionals in each region:
For the second consecutive year Shanghai ranks as the number one meeting destination choice among meeting planners in the region, followed by Singapore and Sydney. Hong Kong and Macau has jumped from number seven last year to number four this year, and Bangkok and Chiang Mai comes in at number five in the rankings.
Survey respondents in region are also forecasting a decline in meeting attendance in 2014. Nevertheless, 40% of respondents are expecting no change. These results point to an industry-by-industry, or company-by-company pattern versus an overall trend towards smaller meetings.
After years of increased spending by corporations in Asia, the industry appears to be entering a new phase of greater scrutiny. Last year, Asia Pacific respondents were the only ones to predict an average increase in spending. This year, however, they are predicting a 3.6% decline.
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