The future of the industry

Indonesia is seeing steady growth in international and domestic MICE business this year. Indonesia Congress and Convention Association (INCCA) projected a minimum 15% growth in inbound MICE business this year compared to last year. Indonesia will be hosting 392 events this year (93 international and 72 government-initiated events). INCCA Chairman; Mr Alan Abdullah says that the trade is optimistic the growth will continue next year. "I don't see any signs of declining interest to our destination following the fuel hike and increasing energy costs in the region," said Abdullah

In the first 6 months of 2008, Hong Kong hosted 8.26 million overnight arrivals and hotel occupancy rates are at 83%, whereas the average room rate is up slightly. The city's exhibitions and conventions industry continued record-breaking growth, largely on the back of mainland Chinese trade visitors. The Hong Kong Exhibition & Convention Industry Association's annual survey of the organizers of 95 major events shows more than US$345 million generated from stand rental revenues. Hong Kong Tourism Board Chairman Mr. James Tien said that the government will allocate US$3 million of additional funding for the HKTB to promote the convention and exhibition business in 2008/09.

In Russia experts predict that by 2020 annual business-trip numbers will treble from 560 million to 1.6 billion as globalization continues, and that profits will increase five times over, from $400 billion to $2 trillion. It is hard to say what Russia's share by volume will be. It is hard to win the confidence of the business class, because it is conservative and mistrustful. But experts are quite optimistic about Russia's chances, considering its sustained economic growth and improving investment ratings. Russia is unlikely to become the world's tourism leader in the next few years, but it could well be in the top ten.

Discussion points and essay questions

1. Discuss what you consider to be the three most important factors in the growth of business travel and tourism.

2. Discuss and explain the current geography of business travel and tourism demand.

3. What lessons can we learn from the history of business travel and tourism that might help accurately to predict its future?

Bibliography

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