Chinese Mice Analysis
Essay title: Chinese Mice Analysis
INTRODUCTION
With its booming economy and ever-growing market, China is expected to become the most popular MICE destination worldwide in the future. China possesses the attractive combination of rich cultural heritage, breathtaking landscapes, and one of the worlds fastest growing economies. Most renown international hotel chains have set up facilities in the major MICE destinations Beijing, Shanghai, and Guangzhou, as well as in less-known locations, such as Xian, Guilin, and even the tropical island Hainan in the south of China. The country has the additional advantage of world-class service at relatively inexpensive rates. As the host of big international events like the Beijing Olympics Games 2008 and the Shanghai World Expo 2010, China is home to a wealth of new opportunities.
BACKGROUND
Geographic Location
China is located in eastern Asia. Today it occupies approximately 9.6 million square kilometers (3.7 million square miles), or nearly one quarter of Asias land, making it almost as large as the whole of Europe.
Economy Conditions
China has the worlds fourth largest economy and second largest purchasing power parity. GDP has risen from RMB362.4 billion in 1978, at the start of the market-based reform period, to RMB24,661.9 billion in 2007 (both figures at current prices). Chinas per capita GDP, though reaching the record high of 1,000 US dollars last year, still ranks around the 100th place in the world till 2007. However, it is predicted that China will quadruple its 2000 GDP to 4 trillion US dollars, with a per capita GDP of 3,000 dollars by the year 2020.
Source: Chinability (2005)
China also plays a major role in international trade. The country is the worlds largest consumer of steel and concrete, using, respectively, a third and over a half of the worlds supply of each. It is also the worlds second largest importer of petroleum. Counting all products, China is the third largest importer and the second largest exporter in the world.
Social and Cultural Backgrounds
The Culture of China is home to one of the worlds oldest and most complex civilizations covering a history of over 5,000 years. The nation covers a large geographical region with customs and traditions varying greatly between towns, cities and provinces.
China encompasses harmonious ecological environment, historical and cultural resources and public environmental, and all these factors contribute to form the social and cultural basis for the MICE industry. Most big cities in China have a comprehensive public facilities, a variety of entertainment options, good social order and high-quality citizens and a unique culture, all those reflect the degree of internationalization and civilization of the country.
Development of China’s MICE Industry
World Travel & Tourism Council predicts that China’s travel and tourism industry will grow around 8.7 percent per annum in the ten years from 2007 to 2016. This means that in 2016, China will be the second largest travel and tourism economy in the world.
With the rise of China’s tourism industry, the MICE industry also develops rapidly. The economic globalization appears to be one of the propellants for the development of its MICE industry. China’s becoming a “world factory” speeds up the development of MICE industry and relevant service industry. MICE industry has been developing rapidly in the booming coastal areas.
Moreover, international companies accelerate development in Chinese MICE Market. Recently, famous international companies Deutsche Messe AG and Fiera Milano have announced that they have signed a cooperative agreement to develop in the four large emerging MICE markets of China, India, Russia, and Brazil. Of these China will be their prime market. Through this kind of joint ventures, they can bring more mature MICE management systems of developed markets to China.
SWOT ANALYSIS
Internal Analysis (S/W)
Strengths
Published data indicates that Chinese MICE sector is growing by annually 20% and China has held 5,400 exhibitions and conferences of a certain scale in 2007. And in 2007, total area for exhibitions or conferences in China reached 2.4 million square meters, ranking third in the world. In terms of the number of projects, China ranks the second in the world behind the