Meeting Trends: Global,

Asia and Korea

Korea Convention Bureau

2008. 11. 18

MICE?

World MICE industry

MICE in Korea

The role of KTO

The challenge and future of Korean MICE industry

= Contents =

MICE?

What is MICE?

• Meeting, Incentive Travel, Convention, Exhibition

• The MICE industry is a very important sector of the tourism industry.

• There is much evidence to substantiate such claim.

Economic AspectEconomic Aspect

High value-added industry

Seamless Industry creating large scale

employment

High-tech industry introducing the latest

technology

The importance of MICE industry

Socio-cultural AspectSocio-cultural Aspect

The importance of MICE industry

Development of regional culture & furtherglobalization of the region

Improvement of city environment & citizenship

Strengthening international amity and peace

Attracting a wealth of tourists

MICE delegate could become a future tourist

The importance of MICE industry

Promoting A Country Efficiently, minimizing expenditure

Increases international influence& accelerates nongovernmental diplomacy

Tourism Aspect

World MICE Industry

Global and Continental Trends in International Meetings

Source : UIA, International Meetings Statistics 2007

Global and Continental Trends in International Meetings(1950-2007)

World Meetings Industry: A Breakdown

Australasia/Pacific

3.2%

Africa 3.9%

The Americas 19.2%

Asia 19.9%

Europe 53.8%

Geographic distribution

of international meetings

in 2007(by continent)

* Total : 10,318

World Meetings Industry

2003 2004 2005 2006 2007

meetings 12,376 12,123 11,484 10,443 10,318

� Decreasing trend in the number of international meetings (UIA)(unit: no. of meetings)

TOP International Meeting Countries in 2007

•Republic of Korea isRanked 15th (268 meetings)

(unit: no. of meetings)

USA France Germany Singapore Japan

598

1114

523466 448

1

2

34 5

Top 5 International Meeting Countries in Asia in 2007

(top 5,unit: No. of meetings)

Singapore Japan Korea China India

466

448

268255

111

1

23

4 5

*

(incl(incl. . Hong Hong Kong & Kong & MacauMacau))

Top International Meeting Cities in 2007

( unit: No. of meetings)466

315 298

229

170 161128 126 121 120

0

70

140

210

280

350

420

490

Singapore

Paris

Vienna

Brussels

Geneva

Barcelona

NewYork

Tokyo

Seoul

Amsterdam

▷ Top 10 cities : Europe 6 , Asia 3, the Americas 1

Jeju 39th 0.48%

Busan 45th 0.41%

1

109

Seoul

Top 11 International Meeting Cities in Asia

10th

11th

Seoul BusanJeju

(Top 11 cities, unit : No.of meetings)

3rd

MICE in Korea

Government’s initiatives

KTO supports hosting Int’l Meetings1979~

1996 Enactment of Convention Promotion Law

2006. 5 Basic Strategy to bring up the convention industry – 20 basic schemes

2003~ Creating Convention specializing body

’05 - ’07 Nominating Convention City : 5 cities

Asia-Europe (ASEM)

Meeting

PATA Annual

Conference

JCI World

Congress

2005 APEC

Korea

Major Meetings in Korea

ASTA World Travel

Congress

1965 1995 20001983

2005 2006 2007 2010

The 46th Orient

& Southeast Asia

Lions Forum

17th World Congress

on Intelligent Transport Systems

78th Lions Clubs International Convention

Convention Centres in Korea

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

COEX

EXCO

ICC Jeju KINTEX

CECO

BEXCO Kim DaeJung

Convention Center

Songdo Conventia

Suwon

2000. 5. 16

2001. 9. 16

2005. 4. 29

2001. 4. 19

2003. 3. 22

2005. 9. 6

2005. 9. 9

(projected to

open after

2009)

(2008.10.7)

Official openings of convention centres

Daejeon Convention Center

2008. 4. 21

Convention and Visitors Bureaus in Korea

Korea Convention

Bureau

1979

BusanCVB

2004

Jeju CVB

2005

Seoul CVB

2005

Daegu CVB

2003

Daejeon CVB

2005

KCA

2006

GwangjuCVB

2007

Renamed Seoul Tourism Organization in 2008

International Meetings in Korea

▶ Ranking & Number of Meetings

Tigers of the Decade (1998-2007) and Korea

Countries with greater than 50% growth in international meetings

Source : UIA, International Meetings Statistics 2007

Seoul in the World [ranking]

(순위)

<Seoul>

<Korea>

Seoul in Asia [ranking]

(순위)

<Seoul>

<Korea>

Evaluation of the MICE Industry in Korea

①

Appointment of convention sites: 5 cities

including Seoul, Busan, among others.

②

▶ Development of MICE industry in local cities

③

Expansion & improvement of regional CVB &convention centers/facilities

Remarkable advances made by Busan &

Jeju

Increase in the number of international meetings held in regional cities

4651

5453

54494647

0

10

20

30

40

50

60

70

80

90

100

2003 2004 2005 2006

④

<Regional

cities>

<Seoul>

% %

%% %%

% %

%

▶ Development of the MICE industry in regional cities

Evaluation of the MICE Industry in Korea

The role of KTO

PlannPlann--inging

BiddingBidding& &

hosting hosting supportsupport

ControlControl

& Coop& Coop

KTOKTOPR PR

MKTMKT

Market Market ResearchResearch

Int’l Association

ConventionCenter

PCO

HOTELHosting Org.

Global PCO

DMC

Globalcompany

Regional CVB

Government

TrainTrain--inging

Administrative Administrative assistanceassistance

Sales Sales supportsupport

infrastructureinfrastructure

PR/MKT PR/MKT activitiesactivities

PRPR

Management Management assistanceassistance

ReservationReservationBidding& Bidding& hosting hosting supportsupport

High quality serviceHigh quality service

Structure of Korean MICE Industry & KTO

MICE industry promotion support

MICE support system

Marketing Activities

Fostering MICE fundamentals

MICE related DB

Global MICE trade shows, Overseas roadshow, PR & ADs, FAM tours for MICE Media & related VIPsPublishing brochures & PR materials

Organizing KCF, Research studies, Int’l cooperation,

Training courses for the MICE professionals

R&D, On-line information system , Statistic report “Conventions in Korea”, Convention calendar

Bidding supportInt’l promotion support

Hosting event support

Bidding Support Process

PlanningLetter

of Intent

Formal

Proposal

Site

InspectionCanvassing Final

Presentation

Success

of Bidding

Advisory

Work

Development

facilitation

support

Inspection

Planning,

On-site

Support

Providing

Promotional

Materials

Supporting

Presentation

Preparation

Support

Planning

Feasibility

Analysis,

Budget

Estimation

Local Bidding Committee::

KTO::

Event Support Process

Local Host Committee

Organizing

Host

Committee

Master

Planning

OverseasPromotionalActivities

ActionPlanning

PR &

Arrangement Execution Reporting

Supporting

Master

Planning

Supportive activities

for Overseas Promotion,

Coordination on Room Blocking

Financial Support

( Printings,souvenirs,

Performances,Tour Programs)

Impact

Analysis

(Participants,

expenditures)

Participation

in Host

Committee

KTO

::

::

The challenge & future of

Korean MICE industry

Challenges for Korean MICE industry

• Will Korea keep up or lag behind?

• What is required in order to improve efficiency?

. Alliances with neighboring countries

. Making the MICE industry of top priority

SWOT analysis on Korean MICE industry

StrengthStrength

• Lack of MICE experts

• Lack of price competitiveness du

to the high prices

• Negative impression caused by

North Korea

WeaknessWeakness

OpportunitiesOpportunities

ThreatsThreats

• Increased competitiveness in

Asia

• Increased use of Video

conferencing & virtual meeting

• Over-supplied domestic

convention infrastructure

• Accessibility

• Hi- technology

• Strong will of Government

• Expansion of Corporate meeting

market

• Increase economic exchange

• Economic growth in Asia ((China,

India)

M

I

C

E

G-10

2010

Factors to be Improved

Lack of promotion strategy & arbitrative role

Lack of professional human resources

Lack of overseas positioning as a MICE destination

Relatively high prices

Goals & Expected Impacts

* Average spediture per MICE delegate : $2,488

Types of event 2006 2007 2008 2009 2010

Int’l Meetings420 473 577 704 859

79,177 98,677 123,346 154,183 192,729

Incentive groups

- 111,088 155,000 209,250 282,488

Corporate meetings

- - 40,000 60,000 80,000

Total - - 312,346 423,433 555,217

Economic impact

(mill. KRW)792,045 1,053,501 1,381,380

- Total # of MICE delegates

Korean MICE industry in 10 years

1. Reaching G-10

2. Vitalization of regional cities

3. Improvement of MICE infrastructure

4. Increased rate of foreign participants

5. MICE pushing tourism industry growth

Plans for the Korean MICE 2018

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2008 2013 2018

Year

People

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Million(w

on)

CorporateMeeting

IncentiveTravel

Meetings

Total

EconomicImpact

MICE Visitors & Economic ImpactMICE Visitors & Economic Impact

Sustainable strategy

1. Excavating MICE events with more than 1,000 foreign participants

2. Stronger action in inviting MICE events

3. Continuous effort on firming foundation

○ MICE information System

○ Overseas marketing Activities

○ Fostering MICE experts

○ Developing infrastructure

○ Globalization of PCOs

○ Improving related policies

Yuna’s Success Story

She was fully aware ofShe was fully aware of…………

First, What her strengths are (Core Competence)Second, What she needs to be equipped with (Requirement)Third, How & what she needs to prepare (Strategic Planning)

To leverage what she has been given & overcome

the obstacles!

감사합니다.

감사합니다.Thank you

www.koreaconvention.org

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