Opportunities and Threats in ASEAN exhibition market Jimé Essink, President & CEO of UBM Asia TCEB Exhibition Forum 2011 Bangkok, 20 January 2011 Topics • • • • • Brief introduction on UBM Asia Exhibition market worldwide and in Asia Focus on SE Asia Opportunities/Risks for Thailand Discussion UBM Asia offices Turkey Istanbul (21) Beijing (20) Korea Seoul (8) Japan Tokyo (56) China Shanghai (197) Hangzhou (59) Chengdu (1) India Guangzhou (80) New Delhi (17) Taiwan Taipei (9) Hong Kong (178) Mumbai (136) Hyderabad (1) Bangalore (6) Thailand Chennai (2) Bangkok (41) Singapore Singapore (10) More than 800 staff in 17 offices all over Asia UBM Asia 3 UBM Asia: Leading B2B media operations throughout the region UBM Asia has subsidiaries in 10 countries and regions and organises events in 25 cities. • • Offices in Hong Kong, Shanghai, Beijing, Guangzhou, Hangzhou, Chengdu, Tokyo, Seoul, Taipei, Singapore, Bangkok, Mumbai, New Delhi, Bangalore, Chennai, Istanbul and New York Over 800 staff • 150 events (130 exhibitions) • 34 publications • 12 B2B vertical portals • A million plus customers, including exhibitors, visitors, conference delegates, advertisers, subscribers and portal members UBM Events UBM in Asia 4 History of UBM Asia 2010 Acquisition of Sign China & LED 1994 First establishment of UBM Asia, with headquarters in Hong Kong. Combination of transfer of pre-existing Asian B2B exhibitions from parent company and three acquisitions: two leading Asian exhibition organisers and a publishing company, all based in Hong Kong. 20012005 Acquisition of KSS, a 2007 leading Japanese B2B publisher and exhibition organiser by UBM Japan. Acquisition of Japan Jewellery Fair Set up UBM China (Guangzhou), the first wholly-owned company in China. Through organic growth and acquisitions, UBM Asia is long established as the leading commercial exhibition organiser in Asia, with related publications and online media. China and formed UBM Trust in Guangzhou. Acquisition of Children-BabyMaternity Products Expo and set up UBM China (Hangzhou) office Acquisition of Istanbul Jewelry Show and formed UBM Rotaforte Continuous organic growth and more than 50 new launches and acquisitions 1998 Acquisition of majority share of Sinoexpo, the leading commercial exhibition organiser in Shanghai. UBM Sinoexpo continues to be jointly run by UBM Asia and the original owner. 1999-2000 Further acquisitions of individual exhibitions by UBM Sinoexpo in China followed, such as Hotelex, a hotel equipment exhibition, and China Ceramic Fair, now part of our Expo Build China. 2006 Acquisition of a majority share, with our Italian partner BolognaFiere, of the Guangzhou Beauty Expo. Established a new company in India, UBM India. 2009 Acquisition of China International Optoelectronic Expo in Shenzhen, the world’s largest optoelectronic event (now part of eMedia Asia, a UBM JV) UBM Asia 5 UBM Asia: Revenue development 300 241 250 US$'m 200 150 100 111 68 72 76 84 ACT01 ACT02 ACT03 155 160 ACT07 ACT08 173 182 124 92 50 0 ACT00 9/11 SARS ACT04 ACT05 ACT06 Year H1N1 Flu ACT09 3QF10 BUD11 Global Recession 6 UBM Asia: Revenue by geographical region 100,000 80,000 US$'m 60,000 40,000 20,000 0 ACT05 ACT06 ACT07 ACT08 ACT09 3QF10 BUD11 Year Hong Kong China Japan India SE - Asia Others 7 UBM Asia: Top 20 events by revenue Product Sector Net exhibition space (SQM) 1 Hong Kong Jewellery & Gem Fair (September) Fashion 62,722 2 Furniture China Lifestyle 115,729 3 Cosmoprof Asia Lifestyle 31,089 4 Marintec China (2009 biennial event) Trade & Transportation 26,367 5 CPhI and P-MEC China Ingredients 45,018 6 Hong Kong Jewellery & Gem Fair (June) Fashion 24,210 7 CPhI and P-MEC India Ingredients 24,096 8 APLF - Materials, Manufacturing & Technology Fashion 12,145 9 Sign China Other 30,927 10 APLF - Fashion Access, Spring Fashion 9,673 11 Hotelex Shanghai Lifestyle 30,838 12 All China Leather Exhibition Fashion 10,281 13 Children-Baby-Maternity Products Expo Lifestyle 25,645 14 Health Ingredients Japan Ingredients 7,614 15 Asia's Fashion Jewellery & Accessories Fair (June) Fashion 8,625 16 Sea Japan (biennial event) Lifestyle 4,621 17 Tokyo Health Industry Show Health 5,760 18 CPhI Japan Ingredients 4,240 19 China International Boat Show Lifestyle 9,707 20 Asia's Fashion Jewellery & Accessories Fair (September) Fashion 6,183 UBM Asia 8 Global exhibitions: a $29 billion market Exhibitions market by geography $bn Exhibitions market by operator % Events & venues Events only Asia is US$ 3.4 billion and only 12% of world market 9 Percentage of world GDP Size of the exhibition business in Asia Trade fair market by estimated revenues, 2009 Market No. of exhibitions identified Estimated annualised revenue (US$ millions) Annual revenue per fair (US$ millions) China 514 1,136.3 2.2 Hong Kong Macau 88 15 331.4 24.5 3.7 1.6 Greater China 1,492.2 Japan 326 816.1 2.5 Korea 154 228.3 1.4 Australia 166 176.0 1.0 India 112 157.2 1.4 Thailand 75 149.4 2.0 Singapore 74 93.1 1.2 Taiwan 63 86.5 1.3 Malaysia 43 75.8 1.7 Indonesia 43 43.5 1.0 Vietnam 47 42.0 0.8 Pakistan 26 18.2 0.7 Philippines 36 15.8 0.4 1,782 3,394.1 1.9 Total Total SE Asia is US$ 420m, 12.5% of total market. China is 33.5% and India is 5%. Source: The Trade Fair Industry in Asia Report (6th Edition 2010) by Business Strategies Group UBM Asia 11 Southeast Asia Population (mn) : 593 GDP : US$1.8 trillion (India is US$1.24 trillion) GDP per capita : US$2,995 UBM Asia 12 Southeast Asia (ASEAN) • 10 economies: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. • Asean Economic Community (AEC): common market by 2015. Free flow of goods, services, capital and people • Free trade agreements with China and India • Potential to develop SE Asia regional events – More interest from international and local exhibitors – More overseas visitors from SE Asia and outside SE Asia • Which country in SE Asia is best placed to take advantage?? UBM Asia 13 Singapore Population (mn) : 4.8 GDP : US$181.9 bn GDP per capita : US$37,600 14 Singapore market • Mature market • Moderate decline in 2008 and 2009, growth expectation in 2010 and 2011 • Limited home market, competition from Hong Kong and Bangkok • The Sands Expo and Convention Center at Marina Bay Sands will boost Singapore as a destination for conferences and exhibitions • Singapore Tourism Board is very active in promoting the exhibition industry • No competition from government • Excellent venues/infrastructure 15 Singapore: Top 6 exhibition organisers’ market share Total market in 2009 (US$ million): 93 16 Malaysia Population (mn) : 27 GDP : US$193 bn GDP per capita : US$7,029 17 Malaysian market • Quite a mature market, sandwiched between Singapore and Bangkok as stronger developed exhibition markets • Small domestic market • Good venues, but rather small (total 80,000 m2 gross versus Thailand 200,000 m2) • Good infrastructure and suppliers • Associations play mostly a supportive role • Government does not organise exhibitions • Set up MyCEB (Malaysia Convention and Exhibition Bureau) to coordinate MICE promotions: – In 2009: incentive of US$28,000 per event > 300 foreign visitors • International events in Malaysia > 500 foreign visitors are exempted from profit tax! 18 Malaysia: Top 5 exhibition organisers' market share 14% MES MIFF 11% Trade Link ECMI 3% 3% AMB Exhibition Others 2% 67% Total Gross Space Occupied: 467,500 sqm The Philippines Population (mn) : 91.9 GDP : US$161 bn GDP per capita : US$1,752 20 The Philippines market • Small domestic market • Limited venue space (Total 40,000m2 gross) • Government (CITEM) is involved in organising trade shows: exportoriented but invite more and more local importers. • CITEM subsidised, so price competition with commercial organisers • No incentives from government • Associations also organise events, mostly low prized • Tedious process in clearing exhibition goods (Philippines is not a member country of ATA Carnet) • No international organisers, mostly local organisers focusing on consumer events 21 The Philippines: Top 5 exhibition organisers' market share (Mostly consumer shows) 13% Global Link Worldbex 11% TIME Premier Events Plus CITEM 9% 57% Others 5% 5% Total Gross Space Occupied Year 2009: 180,000 sqm Vietnam Population (mn) : 87.2 GDP : US$90 bn GDP per capita : US$1,032 23 Vietnam market • Strong growth of economy, especially the manufacturing sector • Limited venue space and rental prices are high (total 45,000m2 gross) • License needed from Trade & Industry Department of the City, need of a local partner • No rules, so risk licenses for same sectors at the same time • No government involvement in organising exhibitions, support is only for overseas exhibitions • Limited association involvement • Low price of participation versus high costs • Strong need for information, few quality trade shows • Several international organisers are active in Vietnam 24 Vietnam: Top 5 exhibition organisers’ market share 5% 3% IIR 3% 2% 2% SES Chanchao Reed Tradex & Adsales Top Repute Other 85% Total Gross Space Occupied: 282,500 sqm Indonesia Population (mn) : 237.5 GDP : US$510.8 bn GDP per capita : US$2,150 26 Indonesia market • No internationa interest before: political instability and bombing threat • Change in political outlook • Stable GDP growth (5%) • Massive population: 240 million • Two reasonably good venues in Jakarta: Jakarta Convention Center (20K gross m2) and Jakarta International Expo (25K gross m2) • At present: 51% by foreign-owned exhibition company (100% foreign-owned was possible for a short period in 2010) • Corruption issue is there, but not much worse than in some other countries • Exhibitions/face-to-face is important in Indonesian culture • No involvement/competition from government or associations • Mostly smaller local players 27 Indonesia: Top 5 exhibition organisers’ market share Total market (US$ million): 43 28 Thailand Population (mn) : 67 GDP : US$273.2 bn GDP per capita : US$4,080 29 Thailand market • Large and growing domestic market, export-related manufacturing is strong • Excellent infrastructure: venues, airport, roads, hotels, contractors • Attractive location: excellent price/quality • TCEB plays an active role in promoting MICE: incentives for bringing overseas exhibitors/visitors and “Better the Best Program” • Limited competition from associations • Government (DEP) is active in exhibitions for finished products with subsidised rates. Competition with commercial organisers. • Political instability: red/yellow conflict 30 Thailand : Top 6 exhibition organisers’ market share DEP REED 28% UBM 44% BES NEO TTF 2% 3% Others 5% 6% 12% Total Gross Space Occupied: 933,000 sqm Thailand: Exhibition venues 4% 2% 3% 2% IMPACT 7% BITEC QSNCC Royal Paragon Hall Central World 17% PSUICC PEACH 65% Total Gross Space : 209,905 sqm The Pride of Thailand Going Green for the Future 10 - 25 November 2011 IMPACT Exhibition and Convention Center BOI Fair 2011 Management: UBM Asia (Thailand) Objectives: • To celebrate special year for His Majesty (the King) • To highlight the achievements of Thai industry and create a platform to meet and do business • To build confidence in Thailand’s economy with special attention to society and natural environment Size: • Total exhibition space: 240,000 m2 gross • Total visitors: Five Million over 15 days 34 Floor Plan Perspective Royal Pavilion Activity Stage at Lakeside Area BOI FAIR 2011 at Night Key Exhibitors Toyota Motor Asian Honda Motor Nissan Motor (Thailand) General Motors Thailand Mitsubishi Motors (Thailand) Tri Petch Isuzu Sales PTT Public Company Panasonic Management Thai Samsung Sony Group Thailand Hitachi Asia (Thailand) LG Electronics (Thailand) Toshiba Thailand Double A 1991 PLC Conclusions • Thailand is very well placed to take a central role in ASEAN exhibition market, IF: – Politically stable – Reduce activities of DEP – Continuous promotion by TCEB • Singapore is the most serious contender in the short term • Indonesia could play an important role in the future • Other SE countries are too small and/or there are too many restrictions affecting them in playing a significant role 41 jime.essink@ubm.com