Essay About Barometer Of The Economic Health Of A Destination And Business Events Sector

Topic Destination
Essay Preview: Topic Destination
Report this essay
Study Guide Topic 2 – Part One – DestinationsDestination refers to the location, such as Sydney, Bangkok, Rome, Gold Coast or Auckland Text Book readingFenich, Meetings, expositions, events and conventions, Chapter 3.Recommended readingPCMA 2006, Professional meeting management Chapter 16: ‘International meetings, conventions and exhibitions’. The BE industry has long been recognised as a significant contributor to economies all over the world. Bierman (2005) claims that the business events sector is a barometer of the economic health of a destination. While countries like the UK and Australia are good examples of the type of large-scale development that has taken place in the past decade (Rogers 2013), major investments are not limited to these more traditional markets and in the past ten years new players investing in large-scale infrastructure developments have emerged. These include Central Europe, the Middle East, South East Asia, the Pacific Rim and, particularly, China. The reasons for these new emerging markets, which are usually supported by government and public sector funds, include:• the existence of an active leisure tourism market with similar infrastructure as thatrequired to attract international conference business• these destinations see conference business as complementary to leisure tourismbusiness• conference and business tourism is seen as bringing a range of benefits, in particular increased economic activity• the ability to compete in the international conference market is seen as anopportunity to gain credibility and acceptance on the international political stageand raises the country’s status (Rogers 2013).Global Overview of BE Destinations Countries, destinations and organisations worldwide are keen to pursue the very competitive area of business events. The international business events market has traditionally been dominated by countries from the Northern Hemisphere e.g. USA, UK, Germany. However, in recent years the role of the Asia–Pacific region has become more significant as the region builds new facilities, improves its professionalism and develops innovative and aggressive marketing techniques. The region has made major inroads into the traditional areas of the meetings industry and is recognised for the quality of its facilities and service. Singapore is already punching far above its weight in the meetings sector and with the opening of the Marina Bay Sands and other integrated resorts, Singapore has the potential to post continued growth.Pacific World’s Destination Index Special Report shows that South Korea, Indonesia and Hong Kong were the most popular meetings and events destinations in Asia in 2015. “South Korea being identified as one of the top destinations has been an interesting result,” Krishnan noted. “Creative and well-executed promotional campaigns have helped to overcome the North Korea threat related issues from the previous years that had drastically affected tourism. The geopolitical situation became less volatile in 2014, thereby increasing the sense of security for tourists in South Korea. The growth of the Chinese middle class and the improved visa facilities to access South Korea have also impacted the overall inbound MICE business. “In Indonesia, Bali is the destination attracting the greatest amount of MICE business. After years of battling the negative impact of the terrorist attack in 2005, Bali is finally being perceived as a safe destination now with heightened security measures put in place by the Police and local people. “Hong Kong has been a pleasant surprise. Despite the political situation, we have seen an increase in clients looking for suppliers offering guarantees in the areas of Corporate Governance and Compliance. The tax free system and the visa exemption for almost all visitors have also been key factors contributing towards the success of MICE business in Hong Kong.”

Read – From study package 2 – Destinations‘Association Meetings Go Global;‘Aust. Brochure’‘Australian Destination Trends’‘Destination Index’‘European Trends’‘Global Meetings Activity Predictions’Destination Marketing Drives Economic GrowthDestinations that market themselves experience significantly greater employment and economic growth beyond the visitor economy, according to new research by the Destination & Travel Foundation, conducted by Oxford Economics. [pic 1]Through a statistical analysis of more than 200 cities over more than 20 years, case studies, interviews and a literature review, the key findings reveal the broad economic benefits reaped by US destinations who spent an estimated $2 billion on promotion and marketing to encourage leisure and convention travel. The visitor economy was found to drive broader economic growth through four primary channels:Destination promotion supports development of transportation infrastructure, providing greater accessibility and supply logistics that are important in attracting investment to other sectors.Destination promotion builds awareness, familiarity, and relationships in commercial networks that are critical in attracting investment.  Similarly, destination promotion raises the destination profile among potential new residents, supporting skilled workforce growth that is critical to economic development.By securing meetings, conventions and trade shows for local facilities, destination marketing organizations (DMOs) create valuable exposure among business decision makers and opportunities to deepen connections with attendees.Destination promotion supports amenities and a quality of life that are integral to attracting investment in other sectors in the form of human capital, corporate relocations and expansion.Key jobs data from the study:A 10 percent increase in a destinations visitor-related employment (relative to the US average) causes a 1.5 percent rise in broader employment through catalytic channels.Since 1998, hospitality and tourism employment has expanded nearly 10 percent, while aggregate employment in all other traded clusters shrank 1 percent.The research also demonstrates that across the U.S., economic trends have supported above average growth in the visitor economy. As income levels rise, consumers are dedicating a greater share of spending to travel and tourism. New and emerging destinations in the business events industrySignificant economic and political change has seen the emergence of new players in the global business events sector. At the World Travel & Tourism Council’s Global Travel & Tourism Summit, Peter de Jong, CEO of the Pacific Asia Travel Association said that the opportunities presented by the emerging economies of China and India were phenomenal and added, ‘in Asia, we have a great deal of intra-regional travellers who are set to venture further afield in the very near future. Because the populations of India and China are so huge, a modest percentage growth in international travel could have a significant impact on the rest of the world’.