Travel News Europe - #89 - December 2008 - (Page 16)

n business/ MICE destination/ CITY BREAK 2008 MICE TO wHAT ExTENT Is THE GLOBAL MICE INDusTrY THrEATENED DuE TO THE fINANCIAL CrIsIs? TrAVEL NEws EurOPE HIGHLIGHTs THE LATEsT INDusTrY COMMENT & NEws… Drastic cuts in business travel due to current economic crisis Findings in a new report by the Business Travel Coalition (as reported at World Travel Market 2008 in London) reveal that many corporations have taken big steps to curb business travel in the past few weeks. From those surveyed (among 200 corporate travel buyers in 17 countries), roughly one third said that they had frozen business travel, 69% of those said that the curb was for an undefined period. Another 19% said that they had reduced the amount of travel permitted to employees. Half said they were looking at investing in alternatives to air travel, such as video conferencing. Most companies said that they now require staff either to travel on low-fare airlines or to downgrade the class of air seat and to stay in lower-priced hotels. Other cost-saving tactics included one person travelling instead of two, same day trips preferred to overnight ones, trips requiring approval by more than one superior, alternative means of travel should be considered if possible, and the company’s travel policy should be enforced through an automated system. The survey was devised by corporate travel managers, by press who write about business travel and Wall Street analysts. ICCA: “Global financial turmoil hits future meetings industry expectations, but few marketing or staff cuts are planned for 2009” This October, ICCA conducted a survey of its global membership to obtain an overview of industry confidence given the current global financial crisis. (This survey was a follow-up to a similar survey conducted by ICCA in April). Almost 30% of ICCA s 850 member companies and organisations responded. 8.5% of respondents indicated they had suffered a significant downturn as a result of the economic environment, as opposed to 6% in April, 16 TRAVEL NEWS EUROPE whilst 44% reported no impact whatsoever, compared to 60% in April. The number of ICCA members reporting a slight impact of the economic environment on their business rose from 35% to 48%. However, a surprisingly large figure (over 39%) are expecting their company’s 2008 performance to be better than 2007, a record-breaking year in all regions of the world. This is a drop of less than 2% compared to the survey conducted in April. Less than one third think this year will be weaker than 2007. Almost 80% expect a negative impact on their business in 2009 (20% reported a significant impact and 58% a slight impact). However, almost 70% answered ‘no’ when asked if they are planning to make cuts in their 2009 marketing budgets compared to 2008 and almost 78% do not expect to make any staff cuts in 2009. However, more than 60% expect a significant negative global impact on the international meetings industry; just over half the respondents said there will be significant short-term negative global impact up to 18 months (only 35% felt this way in April), and 11% expected a significant negative global impact for more than 18 months (compared to around 7% in April). Almost 36% predict some regional negative impact only, while only 3% expected no impact at all. Martin Sirk, ICCA CEO comments: “What is most surprising is how little immediate impact has been felt so far, with 2008 still projected to be a good business year overall for most ICCA members in all regions of the world. There is concern for economic prospects in 2009 and beyond, but it is heartening to see the confidence implied by the very small numbers planning marketing or staff cuts. It’s also clear from anecdotal discussions with members is that international association meetings are expected to be the most resilient meetings industry sector, whilst corporate meetings are expected to be worst affected.” December 2008 Asian destinations benefit from US sub-prime woes (Extract from WTM Global Trends Report 2008, in association with Euromonitor International) As executives from Western Europe and North America travel to Asia in greater numbers, opportunities to cater to this group of top-end business travellers and meetings and incentive travel activities will increase. International hotel chains have taken notice with expansion plans moving forward in the region. In 2008 Four Seasons opened its first Mumbai property, offering 202 rooms and suites with over 500m2 of indoor meeting and function space. Marriott and Accor expanded their operations in Hong Kong with Marriott’s first Courtyard hotel and Novotel Nathan Road. Meetings and incentive travel activity in Asia has also picked up in the wake of major international conven- tions such as the 2006 IMF and World Bank conference hosted in Singapore and the 2008 Olympics in Beijing. These events resulted in increased investment in infrastructure. Singapore is expected to complete the Marina Integrated Resorts, including a convention centre capable of accommodating over 52,000 people, in late 2009. Hyatt is especially well-positioned to profit from Asia’s meetings and incentive travel boom, having convention facilities in over 40 properties around Asia, and multiple city hotels strategically located near major convention and exhibition hubs. Meetings and incentive travel operators are beginning to tie up events with entertainment venues such as casino resorts and theme parks to benefit from high-spending convention tourists. Singapore’s Marina Integrated Resort and The Venetian Macau are the trendsetters, both offerwww.travelnewseurope.com http://www.travelnewseurope.com

Table of Contents for the Digital Edition of Travel News Europe - #89 - December 2008

Cover
Contents
NEWS
DESTINATIONS - Cyprus
�- Singapore
BUSINESS - MICE
�- Cyprus MICE
Luxury Travel
Exhibitions

Travel News Europe - #89 - December 2008