As more bad news about the global economy emerges, industries across the world are feeling the effects. But a number of operators are optimistic that China's market will not be as hard-hit as others around the world. For many companies, China continues to be a bright spot. Despite the slowdown, the country's economy is still expected to expand at a rate that puts it ahead of most major economies that are already in recession.

Several luxury brands are also looking to China for growth. According to Cyril Giorgini, CEO of Auditoire, companies such as LVMH, L'Oréal and Citroën are not intending to reduce their budgets for China. "This is still a growing market for most brands," he says.

Auditoire was one of the organisers of the lavish Christian Dior anniversary celebration in Beijing last year, which featured set pieces and even flowers that were imported from France.

Minor impact
"The events market in Shanghai will not be so heavily impacted by the economic situation like other countries or regions," says James Zheng, managing director of the Shanghai International Conference Management Organization. "To my knowledge, so far there have been no trade show or convention cancellations at the Shanghai New International Exhibition Centre."

Despite no reduction in international association events and trade shows both in Beijing and Shanghai, some businesses have reported a decrease in other kinds of corporate events. "Basically, anything that is dispensable has been cancelled," says Albert Ng, CEO of Wild China, which has organised several incentive events for multinational companies. "The number of inbound groups has decreased a lot."

Local numbers
Figures from the China National Tourism Administration support his observation - visitor arrivals to Beijing decreased by nearly 20 per cent in January, compared to the same period last year. Grace Li, vice-director at the Beijing Tourism Administration (BTA) marketing development department, says: "This year is going to be worse than last year. The DMCs, events companies and hotels are going to face a very serious situation."

Since late 2008, BTA has begun implementing several measures to give the industry a boost. Li says the city is trying to attract more international professional association meetings and events. "We're also focusing on training, marketing and business development while times are more challenging," she says.

Silver lining
For events agency H!Tang & China Creative Connections, whose clients include Volkswagen and UPS, there is an upside to the current downturn. "Venues are reducing their prices," says Hortense Halle, director of operations. "This is a good time for smaller agencies, which are more flexible and have more competitive prices."

Halle says corporate events have become pared down and less lavish. "For example, some companies are now cutting down o performances and having only food and beverage. They are also doing away with frills and scaling down guest lists and venues," she says. "The focus is shifting to theme and messaging. It's not just about partying, eating and drinking."

As Auditoire's Giorgini sees it, "The economic crisis will bring back the importance of value. The contracting market will shift the focus from the mere technical to content creation, brand inspiration and legacy."