Bearish sentiment scares off foreign Mice
Global economic uncertainties have prompted Thailand Convention and Exhibition Bureau (TCEB) to cut its forecast for international trips and revenues for meeting, incentive, convention, and exhibition (Mice) this year.
According to TCEB’s newly-appointed president, Chiruit Isarangkun Na Ayuthaya, international and domestic Mice travellers are likely to make a total of 27.1 million business trips in fiscal 2017, down from 28 million trips in the previous projection.
Foreign Mice visitors are also expected to generate 101 billion baht in revenue, down from 102 billion last fiscal year.
But total revenue from Mice business is expected to rise from 175 billion baht to 199 billion this fiscal year, thanks to an increase in average spending per head per trip and the robust domestic Mice market, which is expected to grow from 73 billion baht to 98 billion.
“The main reason for bearish international markets is economic uncertainty, notably in the US and Europe,” said Mr Chiruit. “Businessmen are still not confident in travelling abroad or organising business events overseas.”
According to TCEB, Thailand’s Mice business dropped
2-3% year-on-year in the first half of 2017, although it started bouncing back in the third quarter and is expected to see a full recovery in the fourth.
Mr Chiruit said for the rest of the year, TCEB will focus more on the domestic market to help offset lower international arrivals.
“I still believe the Mice industry will remain a key driver to distribute income to the regions and create economic prosperity and sustainability,” said Mr Chiruit, who was appointed as TCEB’s new president in June.
Mr Chiruit said he is committed to pushing Thailand’s Mice i ndustry t o grow in tandem with the country’s economic development, expanding into high potential markets and ensuring sustainable and equitable growth.
He said Asean economies still face a spate of challenges, including high household debt, a shortage of working-age people and a looming ageing society.
To overcome these obstacles, Mr Chiruit said the quality of people and strategic policies needed to be upgraded via the Thailand 4.0 scheme, focusing on added-value, high-tech innovation and developing the 10 targeted industries.
“The Mice industry should take a more active part in developing the country,” he said. “From the statistics over the past 10 years, Mice has created approximately 164,000 jobs and fetched 10.5 billion baht in tax revenue.”
Last year, the International Congress and Convention Association ranked Thailand 24th among the world’s best meeting destinations, up from 27th last year.
In terms of exhibitions, the Global Association of the Exhibition Industry ranked Thailand number one among Asean nations in terms of exhibition space sold over a five-year period (2011-15).
Regarding general exhibition space, Thailand took the top spot among five Asean countries.
In 2017, Thailand is set to host several important international conferences.