The economic downturn is now affecting both buyers and suppliers, which has prompted the hotel industry to get creative with free items, price reductions and innovative sales tactics.

Free items and 50 per cent price reductions are sales tactics more often associated with the retail industry than conferences and exhibitions, but tough times call for creative selling.

In an unprecedented move, the Tax-Free World Association, organiser of the TFWA Asia Pacific exhibition and GATE ONE2ONE conference this month, announced: “With the support of Singapore Tourism Board, TFWA is pleased to offer the first night of hotel accommodation free to all preregistered duty free and travel retail operators and landlords.”

The booking, through official housing bureau Pacific World, may be of any duration between May 11 and 13, meaning a qualified delegate attending for one night could literally stay for free at any one of seven official hotels.

It remains to be seen if room rates of US$200, inclusive of breakfast, at hotels such as Marina Mandarin Singapore, Pan Pacific Singapore and Swissotel The Stamford, or US$153 at Carlton Hotel, will be low enough relative to other participation costs.

Buyer resistance 
Only two years ago, deluxe hotel rooms cost US$250 upwards, yet capacity was in short supply. Now, the resistance and resilience of buyers and sellers respectively are being severely tested as companies strain to contain costs amid falling demand.

Singapore Exhibition Services CEO Stephen Tan is nonetheless upbeat about CommunicAsia weathering the storm. He says: “The global gloom has accentuated the gleaming potential in Asia and increased the urgency in which international companies are moving into the continent.”

Considering that in March rumours were circulating about the June 16-19 mega-event being postponed or cancelled, Tan’s confidence should inject some hope in the fragile market.

The International Furniture Fair Singapore (IFFS) from March 9-12 is an interesting case of cleverness. In January, attractive room-only rates of US$155 were available at the Pan Pacific Singapore and US$138 inclusive of breakfast at other three- and four-star hotels if booked through the official housing bureau, Orient Explorer.

By February, a better deal was offered at nine official hotels (excluding Pan Pacific): stay for two nights and get the third night free (Changi Village Hotel) or a 50 per cent reduction elsewhere, with an average price of US$115 per night.

Quick response
Pan Pacific Singapore was a popular choice and room allotments were snapped up. While no official figures are available yet, an IFFS estimate is that “the booking rate has dipped slightly this year” – despite the discounts all round.

An IFFS senior executive says they have helped exhibitors by offering good space-rental rates and stepped up efforts in visitor promotion. “We introduced the ‘Cash Giveaway Promotions’ to target European visitors in Asia and encourage Asean countries to visit IFFS/AFS 2009 and receive an instant cash reimbursement of up to US$335,” she says.

Several big conferences and exhibitions in May through July will reveal if straight discounts or solid content are the answer in a generally depressed market. But the litmus test will probably be the FDI World Dental Congress to be held in Singapore from September 2-5.

When clinched in March 2007, it was projected to attract more than 13,000 delegates from around the world. What will the final turnout be now?