How severe is the impact of the global economic crunch on Singapore’s small but lucrative MICE sector? Singapore Association of Convention & Exhibition Organisers & Suppliers (SACEOS) president Edward Liu estimates “about 20 per cent” of exhibitions are affected, being downsized, postponed or even cancelled. 

The long-established MTA Exhibition (machine tools and precision engineering), scheduled for March 25 to 28 has been cancelled. “The over-cautious sentiments of most segments of the industry, along with the absence of perennial exhibitors, greatly diminish MTA’s effectiveness as a regional business networking event,” says organiser Singapore Exhibition Services.  The inaugural Asian Welding Show – modelled after the Japan International Welding Show – scheduled for July has also been postponed indefinitely.

Reduced meetings
Anecdotal accounts show companies curtailing corporate meetings and incentive trips – not just due to shrinking business, but also because of the bad press on corporate junkets in the US.

The bright spot – if there is one – could be international association conferences. Bidding occurs several years in advance and most events are likely to proceed, perhaps though with a reduced budget and attendance.

The Singapore Tourism Board (STB) will not make projections, lest it become a “self-fulfilling prophecy”, says outgoing assistant chief executive (Business Travel and MICE), Aloysius Arlando.

Financial support
Under the US$60 million Building On Opportunities to Strengthen Tourism (BOOST) programme launched in February to help the tourism sector through the economic recession, the business travel and MICE segment will benefit from funding, marketing campaigns and training incentives.

A major difference from previous schemes is the extent of financial support, beyond mere facilitation. Yet response has been muted. Several players baulk at the paperwork that government grants entail. Others are uncertain if STB’s offer to strengthen and jointly promote their programmes in key regional markets will erode their independence.

While STB will fund up to 70 per cent of convention and exhibition hosting fees, detailed information is still lacking. “How much will actually be available, and what items in the budget will qualify?” asks Nancy Tan, ace:daytons direct managing director.

Nevertheless, bidding support is definitely an improvement over the old scheme, says Tan. She also suggests that STB provide tools to assist PCOs in promoting Singapore and their conferences. “Perhaps they could develop guidelines for PCOs who could use them to advise clients on details of the Business Events in Singapore (BEIS) scheme and help them with application.”

Conference and exhibition organisers stand to gain most under the enhanced BEIS. STB will absorb a higher proportion of project costs and provide wider funding support for new items and content, including engaging distinguished international speakers.

Positive move
MP International CEO Sylvia Phua says: “It is a positive move as we can tap into the new scheme to lower our operational expenses and channel the cost savings to more direct marketing efforts for our trade shows and other events.”

Smaller conferences and exhibitions can tap the Special Assistance Scheme for Value Events (minimum 150 and 1,000 visitor nights respectively), which offers up to 70 per cent of overseas marketing cost.

The Alliance Development Scheme encourages at least two non-related industry players (one Singapore-registered) to form an alliance for overseas business development to promote and attract MICE events to Singapore. Support limits are 50 per cent of overseas marketing cost and 70 per cent of bidding cost. 

Despite the wider scope of the help schemes, many people – corporates and service providers/suppliers included – think BOOST favours conferences and trade exhibitions, whereas corporate meetings come under the ambit of conventions.

Given the lukewarm interest among the trade thus far, STB may have to step-up efforts to ensure confirmed BEIS events take place and start publicising more details of the various support schemes.