MeetingNews caught up with IMEX chairman Ray Bloom at the recent 2006 Motivation Show in Chicago for a discussion of the health of trade shows in the meetings industry, the emergence of new destinations, and general trends in U.S. offshore meetings. Here's what he had to say.
MN: Meetings industry trade shows have been fairly flat in the number of attendees they draw. Is that true of shows in Europe as well?
Bloom: Europe's trade show landscape is actually looking quite good. There are more meetings and exposition industry shows in Europe than in America — the two biggest being IMEX and EIBTM. But you've also got all the different countries in Europe with shows serving their national markets: Sweden, Brussels, Paris, London, and so on. So there are various shows in Europe and there could even be more.
MN: Does the cluttered market make it easier or more difficult for a national show to be successful in Europe, especially with two well-established international shows?
Bloom: If these shows are going to survive, they've got to supply business opportunities; people will participate if the opportunity is there. The budgets are there if the suppliers feel that the opportunities are there; they'll commit those budgets.
MN: That must be especially true for the larger shows.
Bloom: I think it's all about ROI, and that comes down to providing opportunities. If attendees and exhibitors feel they are getting useful opportunities from attending an event, they will participate. It's as simple as that. It's a very transparent industry. You know if you've had a good day at a trade show at the end of the day. That's true of attendees and it's definitely true of exhibitors. Trade shows are only part of their marketing mix. And we're definitely competing with those other options, such as magazines and electronic media — there are lots of choices. Suppliers will invest where they think they can get a return for their money.
MN: What do European shows do to help their stakeholders achieve ROI that's not being done in North America?
Bloom: A hosted buyers program is one of the most effective tools a show can implement to help both attendees and exhibitors. Our show does that on a large scale — we host 3,500 high-quality buyers. Some other shows in Europe do it as well, even though most shows don't have a hosted buyer program. But in the U.S., it isn't done at all. It's valuable because it's actually a practice that builds on itself. Guaranteeing a certain number of quality buyers enables the suppliers to commit to exhibiting, and having a strong lineup of exhibitors makes it easy for a buyer to attend — even those who are not hosted.
MN: How many hosted buyers from the U.S. attended IMEX last year?
Bloom: We had 60 hosted buyers from the U.S. There were actually more U.S. buyers who came unhosted than the 60 who were hosted. We had about 150 total buyers from the U.S., but this figure on the hosted side is very significant, and I expect it to expand. For the upcoming IMEX in 2007, we are shooting for 150 hosted U.S. buyers — almost three times what we had in 2006. Again, it's very important because the practice makes the show more attractive to buyers who pay their own way. Because of advantageous airfares, there are many more buyers in the U.S. who will come on their own if they think it will be worth their time.
MN: How's the dollar playing into that?
Bloom: The dollar is not too strong, but it's not too weak either. I don't think the dollar is a major factor in keeping meetings, expositions, and incentives from going global right now. It's not stopping the numbers of groups that are coming from the U.S. I think the international nature of business makes the need to meet globally that is more powerful than the strength or weakness of the dollar compared with other currencies.
On the incentive side, there is a rise in demand to go international that has been building since 2001. The U.S. and the rest of the world, as well, became very insular in the wake of 9/11, but how long does that go on? I think the demand has been building, and I think we're seeing that shift. At the same time, the world is becoming smaller in a business sense, so the need to hold international meetings and trade shows is going to be there.
MN: Just as long as the economy continues to cooperate. Most of the attendees MN spoke with at this show are optimistic about the economy. What's your opinion?
Bloom: Which economy are we talking about? If you're talking about the U.S. economy, it's very strong but maybe a little off its peak. The strong demand among U.S. organizations to meet internationally is still feeding off a strong economy, even if it is dipping a little at the moment. The recovery so far hasn't been hindered by a recession, and we're hopeful that will remain the case moving into 2007. There are a lot of expectations that the recovery will continue because organizations are planning meetings.
MN: How strong are traditional international destinations, such as London, Rome, and Paris, compared with emerging sites such as Prague, Barcelona, and Dubai?
Bloom: The traditional destinations are always going to be strong draws, but right now, with a lot of American organizations just beginning to go international after a five-year layoff, it's almost like they are emerging as well. For many American attendees, the traditional destinations are actually new. I think the layoff actually helps those destinations compete with the true emerging destinations to a degree, but there are so many new destinations promoting very strongly. And from a purely exotic standpoint, these emerging destinations offer a strong point of difference from the traditional sites.
Asian destinations, especially China, are particularly active in pursuing the meetings and incentive market. I'm not sure how much their message is resonating within the U.S., but certainly in Europe, many organizations are looking at that part of the world.
MN: What Asian destinations are poised to make a breakthrough impression on the international meetings market?
Bloom: Macau is already doing business and has a lot on the books, but it's got a big job on its hands. Singapore is working on a new casino complex. It's so important for these countries to attract international meetings, and I think the development there is going to have a dramatic effect on the marketplace. The overall product each is creating, from the meeting facilities, to the hotel offerings, to the attractions, are raising the bar to a new level for all other destinations in that region.
MN: What about Thailand? That's been a long-established destination for incentives and some international conferences; will it be hurt by the recent coup by its military?
Bloom: Whenever we see the word "instability," there's going to be concern. But it's fairly easy to identify the countries that are truly unstable from the ones that simply have values different from the West. Take Thailand: There was a bloodless coup that shouldn't have dissuaded any groups that were planning to meet there — though I'm sure it must have caused some anxious moments for groups in the country at the time. But the fact remained that Thailand was never a risky destination — even during the coup — and its tourism market remained fully operational throughout the crisis, and that will not change moving forward. Ultimately we'd like to see a democratic government there, but that's going to take a bit longer.
MN: Will the requirement for Americans to get passports to cross borders in North America be a boon for international meetings?
Bloom: That's a very good point; I guess the Canadians wouldn't have voted for that bill if they had the opportunity. I know right now, the general perception in the U.S. is that this is a restriction: People can no longer cross borders in North America with just a driver's license. But in the long term, I think the general public and especially meeting attendees and the organizations that host meetings will come to view this as an opportunity. More people having passports will be good for international meetings.
For ideas, tips, and tools for better meetings and events, get MeetingNews' weekly e-newsletter to your inbox.