“Thailand Convention & Exhibition Bureau allocates 400 million budget to revive MICE Industry. Policies are being launched to boost up private sectors participating in Thailand Industrial Exhibition”

The continuing political conflict has caused unpredictable damages to business sector and national economy. Tourism suffers most from the impact, likewise, MICE Industry, which generates main income of the country, suffers from cancellations and postponements of MICE events in Thailand. Thailand Convention & Exhibition Bureau or TCEB projects 25% growth of both income and the number of MICE visitors this year, as the past 2 quarters show favorable sign for MICE industry. However, the political crisis has reduced number of more than 68,200 visitors, or equal to 11% with the loss of 13.5 billion baht income, the reduction of 30% less than the previous year’s.

The damage that occurs includes the impacts to operational cost in running marketing campaign and to the country’s image as a global MICE destination. This is with regard to income growth rate generated from MICE visitors in the long run. TCEB, to deal with the situation, has brainstormed with more than 36 MICE representatives from private sector to find out the reviving strategies for MICE industry, including measures to boost up market opportunities and brush up the image of Thailand’s MICE industry. In responses, 400 million baht budget will be injected into the measures, which the amount of 200 million baht coming from TCEB and an additional 200 million baht coming from the government.

Mr Akapol Sorasuchart, TCEB President states that “TCEB has taken urgent steps to adjust its plan relying on the 200 million baht budget of the year 2010, and at the same time proposes support strategies to private sector with solutions to MICE industry crisis. The key strategies are to launch urgent measures to solve MICE industrial problem, open up market opportunities to promote sales, and restore the international image of Thailand’s MICE industry. Measures under recovery strategies cover marketing, sales promotion, communication and public relations, plus providing knowledge to enhance Thailand’s potential and competitiveness in attracting and organizing MICE events in order to ensure that 2010 MICE visitor numbers and revenues are at least equal to last year’s figures”.

“The government’s allocated budget of 200 million baht will be injected on 2 main activities. Firstly, to assist MICE operators by granting support when attending national road shows to other countries to promote Thailand’s MICE industry and national economy, as well as the new policy of 300% tax relief on expenses for MICE operators. Secondly, to revive confidence in Thailand as an ideal destination for MICE meetings and exhibitions by providing life and property insurance for MICE visitors, including encouraging government agencies to propose for hosting international meetings and exhibitions in Thailand. These are to reaffirm the potential of Thailand’s MICE industry and the measures will be proposed for Cabinet consideration”.

“Taking a glimpse on the impact of political crisis on MICE industry, the exhibition sector loss might not be critical, if compared to the impact on meeting and incentive travel sector, which international operators turn to other countries to avoid loss from postponements. What TCEB is trying to do now is to foster the operation in line with the launch of short and long term policies in accordance with possible solutions to tackle MICE industry problems.

Supawan Teerarat, Exhibition Director of TCEB states in regard to the impact to the trade exhibition that “many trade exhibitions are to be hosted during April to June this year. Two of them are cancelled due to the rally situation. The first is Southeast Asia/India Golf Merchandise Exposition 2010 by Singapore. Expectedly up to 1,500 visitors who are golf experts will participate as well as 4,000 golf businessmen in Thailand. The other is Asian Paper 2010, scheduled to be hosted at the Queen Sirikit National Convention Center. However, due to the tourism ban by foreign countries like U.S.A, Germany, China, Korea and Japan, not allowing tourists’ visit to Thailand, the exhibition is postponed. Also, number of visitors participated in the BIG&BIH exhibition by the Department of Export Promotion at Bitec Bangna dropped significantly”.

“Now we estimated the value of damage specifically in April, the figure shows that 3,500 visitors from MICE withdrawn and this is not only impact to fair operators but also to hotels and lodges gaining income from this business group. In the third quarter, many top fairs scheduled to be kicked off such as the ProPak Asia that more than 10,000 foreign visitors are expected in June, the Manufacturing Expo by Reed Tradex in mid of this year. If the tension continues, 25% of foreign visitors should drop in the third quarter during April to June. In the last quarter, on condition that the tension releases and the reviving strategies go well, visitor number should be noted at less than 20%. The overall figure will drop from the expected 25% by 14-15% and expected number of 100,000 visitors to participate will drop to approximately 95,510. The income from per capita expense will drop by 32% or equal to 5,970 million baht. However, we are still promising to the view that schedule of fairs in May remains unchanged. This is our mission to foster and persuade events host not to cancel, like for the Architect Fair 2010 on April 30th to May 5th at Impact Muangthong Thanee. We well prepared for receptions, security from airport links to hotel accommodation” stated Supawan

TCEB Exhibition Director further states that the measures launched to support MICE organizers affected by the political tension are divided into short term, moderate term and long term. The moderate and long term measures focus on the urgent aspects such as boosting market opportunities and restoring the country’s image. TCEB Exhibition will initially focuses on war room setting, likewise the center for solving urgent case. TCEB will work closely with the exhibition organizers of events scheduled to host between April and June, to follow the plan to promote PR work and rebuild confidence in hosting exhibitions in Thailand as planned. TCEB will also help lessen damage insurance cost due to the cancellation and travel insurance. Furthermore, TCEB will create market opportunities by launching sales promotion campaigns for Airline tickets, accommodations for target group and budget allocation for fair organizers to run marketing campaigns that match each target group. This includes the additional PR works, online media buying, international road shows of government and entrepreneurs join with office branches abroad, embassies, Tourism Authority of Thailand (TAT), Thai Airways, Commercial Attaché and the Board of Investment of Thailand (BOI), as well as special activities to rebuild confidence in Thailand, which will be started from June. The next measure to revive image will be under the cooperation with the Prime Minister’s Office hosting road shows to promote the overall mission of TCEB. Additionally, new promotional scheme, Extra Night Extra Smile, aiming at adding value and offers extra incentives for MICE visitors attending exhibitions in Thailand, is ready to be globally unveiled.

Optimistically, TCEB in cooperation with relevant government agencies and MICE entrepreneurs prospect that 400 million budget will revive Thailand’s MICE industry despite in the midst of the ongoing political tension.