Corps. Tout The Benefits Of Holding Meetings In Asia

<B>Corps. Tout The Benefits Of Holding Meetings In Asia</B>

By Chris Davis

As the wave of austerity gripping corporate meeting and group incentive travel continues, some buyers tout certain locations in Asia as destinations offering high-quality accommodations and a true sense of value for incentive participants at a fraction of the cost charged in other international locales.

"Right now, Malaysia is the best bargain in the world, given the caliber of its properties and the exchange rate," said Jane Schuldt, president of Minneapolis-based World Marketing Group. "Malaysia is followed very closely by Thailand, and Singapore and Bali also are very reasonable."

Hong Kong, particularly in its peak months, is a strengthening market for suppliers, and China, perhaps surprisingly, also is booking quite a bit of corporate meetings, she added. "In spite of the press of late, they are just swamped with business," Schuldt said. "There are lots of companies doing business there now, and the tremendous amount of activity works in the suppliers' favor."

The spate of interest in China has weakened buyers' positions, but not so much that bargains are impossible to find. "Beijing last year was phenomenal," said Lance Wieland, president of Global Events Group in Falmouth, Maine. "We were able to stage an event for a corporation on the Great Wall of China for 60 people for $19,000, including a fancy meal and all transportation. The fact that there's no infrastructure for this type of event and the overall climate may not be that good this year, there still are a lot of countries in Asia with opportunities like that."

Global Events Group brings several companies per year to Asia, primarily for group incentive events. That business recently has increased, Wieland said, primarily because companies are willing to go the extra mile--literally--to offer their employees an unusual or exotic locale as an incentive destination.

"There's strong interest because many people in the United States have traveled so extensively and are more sophisticated than they were in the past," Wieland said. "Thailand, China--there's lots of mystique to these areas--and they may never go there on their own. It's a powerful motivator," and effective. The corporation that met at the Great Wall increased its sales by 40 percent the year the incentive was announced, Wieland said.

A solid portion of Asian corporate meetings are multinational group incentives, and given the variable entry laws into Asian countries, it is best to clearly determine what each country's policies are for international attendees. Some Asian countries where visas are not required for Americans to enter may require visas for attendees from other countries and vice versa, World Marketing Group's Schuldt said. "It's imperative that planners not view Asia as a single entity," she said. "Some countries require permits to hold meetings. Shipping requirements and the technological capabilities of hotels also can vary. Each country in Asia has its own peculiarities, but if a destination management company is worth its salt, it can help you make sense of the market."

Asian destination management companies, hotels, airlines, as well as American branches of international tourist offices, are the key contacts for international meeting protocol and legalities, Schuldt said. Without that contact, much time will be consumed finding appropriate hotels and other local resources.

Despite the current buyer's market, corporate meeting and incentive managers have a decision to make when it comes to contracting and negotiating, as they do in all international meetings: Given that the length of time required to travel to Asia lends itself to major incentive programs and the lead time for those programs usually is measured in years, predicting the exchange rate between the American dollar and a given country's currency can be a crapshoot. As such, buyers need to be aware that the value of a meeting contract they may sign today could be quite different, for better or for worse, than at the program's onset.

For smaller or non-incentive meetings, though, the short-term market still looks favorable. "The meetings market in Southeast Asia has been resurrected a bit," said Angela Lawrence, manager of worldwide sales for Nikko Hotels International. "We've seen meetings originally scheduled for Europe, particularly the United Kingdom, relocated to Asia because of concerns about foot-and-mouth disease. We're hoping that longer-term plans of U.S. companies hold, because that market is softening a little bit but the short-term situation is active."

Lawrence also said some of the countries often not considered for incentive programs have seen a rapid increase in bookings--Bali especially--as corporations look for original destinations. "Corporations always want to be seen as cutting edge and Southeast Asia is good from that standpoint, and it offers bang for the buck," said San Francisco-based Lawrence. "Asian properties tend to have enticing added value. You're more likely to find the complete meeting package concept, a flat per-day, per-attendee charge for all amenities and space, in hotels in Asia than here."

Though Lawrence agreed that airfares have dropped precipitously in recent years, the time needed to travel to Asia certainly hasn't. "Today, the issue is much more time than money," she said. "If you have the time to do this, Asia will fulfill your expectations.