Australia's MICE competitiveness slips as State Governments lower support for Convention Bureaux

Australia's share of the global MICE (Meetings, Incentives, Conferences and Exhibitions) market declined last year - dropping five places to 16th place on a scale of global events hosted.
The decline, revealed in the second annual State of the Business Events Industry Report by the Business Events Council of Australia, also shows a weakening in State Government funding support of the Convention Bureaus, by 28% and this, BECA claims, is reflected in the increase in lost bids (5%) and the reduction of successful bids (12%).
Overall, the number of association meetings held in Australia increased by 800 to 10,000 last year and the business visitors in the corporate sector rose by 21% while average spend per business visitor increased from $212 in 2010 to $248 during 2011.
Report author Dr Marg Dreery, Director of Tourism and Business Events International, explained "while there has been increased investment in infrastructure supporting the business events industry, in areas such as aviation and accommodation, the growth of the industry in the Asia Pacific region, particularly in China, shows the need to maintain investment in the industry.
"Australia's business events challenge will be to maintain its product that is competitive on ROI and quality."
The sector looks likely to be further challenged by the European debt crisis and regional political instability over the coming year.
Mindful of this, the Thailand Convention & Exhibition Bureau (TCEB) is spending 30 million baht (US$10 million) to support domestic MICE activities next year and will collaborate with relevant state agencies and organisations to delineate segment targets.
Supawan Vichaya Soonthornsaratoon TCEB'S Senior Manager for meetings and acting director for conventions, said conventions will clearly be affected by the EU's economic problems next year seeing that the trend for conventions is negative, with sizes of these events halving from previous levels to an average of 500 participants per event next year.
Supawan added "foreigners think of Thailand more as a tourism destination than a place for MICE activities. The industry needs more government support."