IBTM Global Industry Research AIME 2012

The IBTM research project for the global portfolio -Five Continents Five shows -aims to provide exhibitors or aims and visitors to the IBTM Portfolio with the information they need on the key areas for target clients and trends in destination use for meetings and events The longer term aim for this research is to have events. information on buying trends and the major issues affecting destination choice in the meetings industry from year to year. The key aim is to find out where business is coming from and where it is going to in to, terms of which regions and countries countries.

The first survey has been undertaken as a pilot test across a global database on five continents online and via email using Reed Travel E Exhibitions and partners' databases of buyers and suppliers with suppliers, research continuing up to mid January 2012.

With new countries and regions rapidly becoming major players in the meetings market as inbound and outbound generators, including those where RTE have IBTM shows such as the Middle East and China, the destinations being selected and those generating major traffic are changing dramatically We are now dramatically. monitoring the trends and helping IBTM exhibitors and visitors to understand where to focus their ing marketing activities and budgets, and helping destinations identify what they need to do to best meet market needs and maximise potential potential.

This summary of trends from the research focussing on the Australia pacific region is presented at AIME 2012 for the first time.

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IBTM Global Industry Research AIME 2012

Methodology
An online survey was set up Autumn 2011 and invitations to participate were emailed to the buyer and supplier databases of Reed Travel Exhibitions and partners including Micenet Australia, Melbourne Visitor and Convention Bureau, MeetMe Middle East, CIM Germany and Visit Baltimore. Although their databases hold many thousands of potential participants, key selections were made to target the pilot interviews with key buyers and suppliers.

This preliminary report focuses on the pilot results for the Australia Pacific region and analyses the results of 264 buyers and 101 suppliers.

The survey was closed 24 January 2012, thereby ensuring the results are right up to date.

In future the survey will be undertaken twice per year - Spring and Autumn - in order to monitor trends and provide indications of how the market is moving. The relevant results for each region will be available at each of the IBTM global portfolio of shows during 2012: AIME
21-22 February

GIBTM
26-28 March

AIBTM
19-21 June

CIBTM
12-14 September

EIBTM
27-29 November

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IBTM Global Industry Research AIME 2012

results: Research results: Buyers

1. The Australia Pacific Buyers were made up of the following: Third party/agency Corporate Not for profit Trade/Assoc/Society Other 34.8% 27.3% 16.3% 8.3% 12.1% (includes government owned enterprises and NGOs)

2. The types of events being organised by Australia Pacific buyers are as follows: Meetings Conventions/congresses Entertainment/Sporting/Special Exhibitions Incentive travel Product launches 76.1% 72.0% 43.9% 34.8% 27.3% 26.9%

3. Regions where buyers held events over the last 12 months are as follows: Global buyers Africa Americas Asia Australia Pacific Europe Gulf/Middle East/North Africa 21.7% 41.9% 45.4% 36.2% 9.5% 32.5% AusPac buyers 7.7% 17.1% 36.3% 83.3% 19.2% 6.8%

4. Australia Pacific buyers top countries for events in the last twelve months are LAST 12 months by volume of events 1. Australia 4. USA 7.Thailand 10. Malaysia 2. New Zealand 5. Fiji 8. Hong Kong 11. Italy 3.Singapore 6. China 9. United Kingdom 12. Vietnam

with slightly different results for events with highest value: LAST 12 months by value of events 1. Australia 4. Fiji 7. China 2.New Zealand 5.Thailand 8.United Kingdom 3.USA 6.Singapore 9.Hong Kong 10. Malaysia

The average budget per event was US$34,712.

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IBTM Global Industry Research AIME 2012

6. Australia Pacific buyers' top 10 countries in the NEXT 12 months by number of buyers using the destination country are as follows: Australia Hong Kong New Zealand United Kingdom Thailand China USA Singapore Malaysia Fiji

7. A total of 68 countries were listed for use by Australia Pacific buyers next year, with the following destinations forecast to see an increase in the number of events held: Japan Vanuatu UAE Indonesia France Korea Mexico Maldives

Austria Belgium

8. The differences in forecasts of market conditions for the next twelve months between Australia Pacific buyers and global buyers are shown in the tables below. Although the figures are similar for the last twelve months, the Australia Pacific buyers percentages forecasting increased volume of events and increased budgets over the next twelve months are lower than for all buyers worldwide.

AusPac Buyers Change Less/decrease Same Increase

Volume of events Last 12 months 15.3% 40.9% 42.0%

Volume of events Next 12 months 13.6% 42.8% 41.7%

This year's budget

23.9% 42.0% 31.8%

Global Buyers Change Less/decrease Same Increase

Volume of events LAST 12 months 16.4% 37.7% 43.8%

Volume of events NEXT 12 months 9.8% 34.5% 53.3%

This year's budget

22.5% 35.4% 39.6%

Similar contrasting results are seen for the budget predictions with fewer Australia Pacific buyers predicting increases in budgets. Auspac Buyers forecasts for NEXT 12 months Less/decrease Same Increase Budgets for individual NEXT 12 months 27.7% 46.2% 24.6% Marketing budget 26.1% 49.2% 22.3% Use of NEW destinations 10.2% 36.0% 51.5%

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IBTM Global Industry Research AIME 2012

Global Buyers forecasts for NEXT 12 months Less/decrease Same Increase

Budgets for individual NEXT 12 months 26.3% 39.0% 32.8%

Marketing budget

Use of NEW destinations

27.5% 39.8% 30.2%

6.8% 29.6% 57.6%

It is interesting to see that the percentages predicting increased use of new destinations are higher for both groups of buyers, yet worldwide there is a higher percentage likely to use new destinations than in this region. Buyers and suppliers' views on what would have most impact on increasing event business in the next twelve months are, in order of priority: 1. Economic conditions 2. Budgets/prices/cost issues 3. Increased/improved marketing 4. Currency stability 5. Government issues/policy

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IBTM Global Industry Research AIME 2012

Results : Suppliers
1. The 101 Australia Pacific supplier respondents are made up of the following: Hotels Conference & event venues Other Event Services Attractions & Entertainment Convention & visitor bureau Technology provider DMC Others 22 21 10 8 8 6 3 23 (transport, printing etc).

2. The most frequent sectors of clients for the Australia Pacific suppliers are as follows: Corporates Associations Govt./not for profit State owned enterprises NGO Third party/agencies 82.2% 58.4% 50.5% 49.5% 41.6% 28.7%

The key client sectors are shown on page 8.

3. The supplier sample listed 34 countries as where they had hosted events over the LAST 12 months and 37 countries as where they will host events over the NEXT 12 months. It is important to stress that these are not the same countries and new destinations for the next twelve months are Brunei, Bahamas, Kenya, Madagascar, and Tonga. However this could indicate countries where suppliers are opening new hotels rather than increased use of particular destinations.

4. The chart on page 9 reveals the use of new technologies and forms of communications by buyers and suppliers. It is interesting to see just how rapidly social media has been integrated into our working lives with 70% or more of each group making use of them as forms of communication before, during and after meetings. Virtual meetings also show significant use at 30% or more. The hybrid meeting where audience levels are extended by use of virtual elements at an event is also showing a rapid increase in popularity. Using 'apps' and QR codes for providing delegate and client information has also been taken on board very rapidly and it seems likely that these figures will have increased substantially when this survey is next undertaken.

5. The tables below highlight the differences in experience and predictions between the Australia pacific suppliers and the Global suppliers. In contrast to the buyers results, the global suppliers and the regions

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IBTM Global Industry Research AIME 2012

suppliers show similar results. Budgets are the main issue of difference as global suppliers are slightly more optimistic about increases in the next twelve months.

AusPac suppliers Change Less/decrease Same Increase Global suppliers Change

Volume of events Last 12 months 20.8% 43.6% 34.7% Volume of events Last 12 months 26.1% 32.4% 36.7%

Volume of events Next 12 months 8.9% 37.6% 52.5% Volume of events Next 12 months 13.6% 29.7% 51.5%

Clients Budget This year 41.6% 38.6% 18.8% Clients Budget This year 43.5% 34.2% 17.3%

Clients budgets next year 15.8% 62.4% 18.8% Clients budgets next year

Less/decrease Same Increase

20.6% 53.0% 20.4%

AusPac Suppliers forecasts for next 12 months Less/decrease Same Increase Global Suppliers forecasts for next 12 months

Budgets for individual events NEXT 12 months 24.8% 51.5% 22.8% Budgets for individual events NEXT 12 months

Marketing budget

Use of NEW destinations

31.7% 45.5% 19.8% Marketing budget

6.9% 51.5% 39.6% Use of NEW destinations

Less/decrease Same Increase

30.1% 39.5% 25.1%

33.4% 37.2% 24.4%

8.3% 39.5% 44.2%

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IBTM Global Industry Research AIME 2012

Suppliers' Suppliers' key client sectors

Pharmaceuticals / Medical Financial / Banking / Insurance Government / Administration Training & Education Electronic / Communications Construction / Engineering Mining Property Automotive Food / Beverage / Tobacco

59.4% 57.4% 53.5% 51.5% 45.5% 44.6% 39.6% 38.6% 37.6% 36.6%

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IBTM Global Industry Research AIME 2012

Technologies used by Buyers and Suppliers

0% Social media to communicate before/during/after the meeting 20% 40% 60% 80% 100%

77% 70% 38% 30% 30% 25% 29% 31% 16% 16% 16% 15% 16% 10% 10% 4% 3% 26%

Virtual meetings

Audience response systems

Apps for providing client/delegate information

Cloud computing

Electronic RFP products eg Starcite, Cvent

QR codes (specific matrix barcodes) for meetings management

Location aware software eg Foursquare

Holograms

Global buyers

Global suppliers

The Right Solution Limited/aime.com.au 16th February 2012