EIBTM OB DDAVIDSON. Industry AAnalyst November 2014 Barcelona, Spain

Transcription

1 EIBTM EIBTM TRENDS TRENDS W WATCH ATCH RREPORT EPORT BY BY RROB OB DDAVIDSON AVIDSON EIBTM EIBTM Industry Industry AAnalyst nalyst Reed Travel Exhibi/ons is a registered trademark Reed Elsevier Group Plc. The EIBTM trademark is owned protected by Elsevier Proper/es SA Reed Exhibi/ons Limited uses such trademark under licence. Hosted Buyer is a registered trademark Reed Exhibi/ons Limited. Reed Travel Exhibi/ons is a registered trademark Reed Elsevier Group Plc.

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3 Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone confidence throughout pages this review our dustry s performance durg past 1 Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone months outlook for 015. That confidence is justified by fdgs most sources I confidence throughout pages this review our dustry s performance durg past 1 have used compilation this report, it undoubtedly comes as a result improvg months outlook for 015. That confidence is justified by fdgs most sources I situation some key national economies this year. But it also reflects fact that many have used compilation this report, it undoubtedly comes as a result improvg meetgs events dustry are already experiencg improvg orders for future busess. situation some key national economies this year. But it also reflects fact that many meetgs And although our events dustry dustry has are not already yet returned experiencg to pre- recession improvg levels orders for activity, future it busess. is clear that, for now at least, we have navigated economic downturn successfully confidence levels have And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for been risg as a consequence that achievement. now at least, we have navigated economic downturn successfully confidence levels have been Neverless, risg as this a consequence has been a year that achievement. which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts Neverless, this has been a year which cautious optimism many meetgs events geopolitical developments which may still present as yet unknown threats to global economic pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical developments which may still present as yet unknown threats to global economic This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. This report is designed to help you benchmark your own performance 014 anticipate likely developments I hope that you will fd market it useful as year well ahead. as terestg. I hope that you will fd it useful as well as terestg. Rob EIBTM Davidson Industry Analyst EIBTM Managg Industry Director, Analyst MICE Knowledge Managg Director, MICE Knowledge

4 CONTENTS Ø THE GLOBAL ECONOMIC SITUATION IN 014 Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone confidence throughout pages this review our dustry s performance durg past 1 months outlook for 015. That confidence is justified by fdgs most sources I have Ø used CORPORATE compilation MEETINGS this report, - PERFORMANCE it undoubtedly OF comes KEY as MARKET a result SECTORS improvg situation some Information key national economies Communications this year. But it also Technology reflects fact that many meetgs events dustry are already experiencg improvg orders for future busess. Automotive And although our Pharmaceutical dustry has not yet returned to pre- recession levels activity, it is clear that, for now at least, we have navigated economic downturn successfully confidence levels have been risg as a consequence Construction that achievement. Neverless, this has been a year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical Ø ASSOCIATION developments CONFERENCES which may still present as yet unknown threats to global economic This report is designed to help you benchmark your own performance 014 anticipate likely developments Ø INCENTIVE market TRAVEL year ahead. I hope that you will fd it useful as well as terestg. Ø REGIONAL VARIATIONS Ø OUTLOOK FOR 015 EIBTM Industry Analyst Managg Director, MICE Knowledge Ø CONCLUSION Ø SOURCES 3

5 THE GLOBAL ECONOMIC SITUATION IN 014 There was an unmistakable air optimism at this year s World Economic Forum conference Davos, Switzerl, for first time sce global economic crisis. Delegates from many Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone world s advanced economies had every reason to be cheerful, as year- on- year figures poted confidence throughout pages this review our dustry s performance durg past 1 towards growth, albeit at modest levels. And most forecasters were predictg higher rates months outlook for 015. That confidence is justified by fdgs most sources I growth for 015. But performance dividual countries contued to vary widely, most have used compilation this report, it undoubtedly comes as a result improvg growth global economy was due to performance emergg economies. situation some key national economies this year. But it also reflects fact that many meetgs Accordg to The events Economist, dustry are Euro- zone's already experiencg feeble recovery improvg sce orders sprg for future 013 busess. came to a halt second quarter 014, when GDP stagnated. There were some bright spots, but Euro And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for area was held back by poor performances its three biggest economies. GDP fell Germany, now at least, we have navigated economic downturn successfully confidence levels have biggest, Italy, third largest, by 0. percent; France, second largest economy, stagnated. been risg as a consequence that achievement. The weakness Euro- zone is arousg fears that 18- country currency club may fall to Neverless, deflation. Inflation this has fell been to just a 0.4 year percent which July, cautious well below optimism European many Central meetgs Bank's events (ECB) pressionals target almost has creasgly percent. Even been though tempered ECB by adopted an awareness measures risks June arisg to from foster activity impacts - geopolitical lowerg terest developments rates which announcg may still a plan present to stimulate as yet unknown bank lendg threats to to private global sector economic - it remas under pressure to do more to counter low flation. Outside Euro- zone, UK economy was expg at over 3 percent. This report is designed to help you benchmark your own performance 014 anticipate likely developments Many those Davos market delegates with year ahead. broadest smiles on ir faces may have been Americans anticipatg a remarkably successful year for ir country s economy. The US economy grew at its I fastest hope that rate you for two will fd a it half useful years as well as second terestg. quarter 014 after a broad- based pick- up activity, boostg hopes a sustaed It was best performance from world s largest economy sce fourth quarter 011, driven by stronger export growth busess spendg than previously estimated. Consumer spendg, which accounts for more than two- thirds US economy, creased by.5 percent second quarter 014, busess vestment equipment rose by 11. percent (The Guardian). The Economist Intelligence Unit s Global Forecast EIBTM confirms Industry that Analyst improvement US economy from April to June was broad- based, with consumer spendg, fixed vestment, net exports government spendg all recoverg well, Managg Director, MICE Knowledge while US labour market also performed very strongly this year. Closely associated with improvg US economy is considerable strengng US dollar which may yet turn out to be this year s most significant fancial development, with consequences for all world s economies dustries cludg meetgs events. But performance world s emergg nations has been more mixed this year, with slowg rates growth some m, particularly former enges Cha Brazil. Growth rates are still at levels that are enviable when compared with those developed economies, but are some cases well below those a few years ago, as a result, growth projections for have been marked down for some major emergg market economies. Accordg to International Monetary Fund, agast background a slight slowg Chese economy, authorities re have resorted to limited targeted policy measures to support activity second half year, cludg tax relief for small medium enterprises, accelerated fiscal frastructure spendg, targeted cuts required reserve ratios. 4

6 The Economist Intelligence Unit s observation is that economy India is acceleratg aga after a two- year lull, with new, busess- friendly government boostg vestor confidence. But y add that y have yet to see evidence to suggest that India can return its economy to 8 percent growth that it regularly achieved pre- crisis years. Brazil s disappotg economic performance 014 is attributed to various causes: poor Readers policymakg, this low year s vestment EIBTM Trends capacity Watch Report constrats will certaly (Economist notice Intelligence upbeat Unit) tone tighter confidence fancial conditions throughout contued pages weakness this review busess our dustry s consumer performance confidence durg (International past 1 months Monetary Fund). outlook These weaknesses for 015. That have confidence held back is vestment justified by dampened fdgs consumption most sources growth I have Brazil used this year. compilation this report, it undoubtedly comes as a result improvg situation some key national economies this year. But it also reflects fact that many meetgs The Russian economy events dustry is also slowg, are already due experiencg to geopolitical improvg tensions orders surroundg for future recent busess. events Ukrae. Tensions with West over crisis Ukrae have scared away vestors, weakened And rouble, although our forced dustry has central not bank yet returned to raise rates. to pre- recession Deloitte notes levels that activity, one response it is clear that, for now Russian at least, dustries we have has navigated been a shift away economic from ir downturn dealgs successfully with West confidence forgg levels have been stronger risg trade as a lks consequence with Cha. Busess that achievement. transactions such as recent $US 400 billion Gazprom Neverless, deal with Cha this brgs has been Russia a closer year to which lucrative cautious markets optimism Asia. Better many economic meetgs relations events with pressionals countries like has Cha, creasgly India, Japan, been tempered Indonesia by might an awareness just hold risks key arisg to Russia s from long- term impacts geopolitical economic progress. developments But even which as may country still present taps opportunities as yet unknown threats East, to it is clear global that economic Russia needs to mend fences with West for sake global economic political stability. The Economist Intelligence Unit s estimate is that Russian economy - already weak before crisis - This will grow report by is just designed 0.4 percent to help this you year. benchmark your own performance 014 anticipate likely developments market year ahead. I hope that you will fd it useful as well as terestg. Mark Cooper - CEO IACC (International Association Conference Centres) 014 feels different to 013. Different because members IACC seem to have moved from a feelg stabilisation market, to one planng for growth. Our members creasgly seem to be keen to represent a global community conference EIBTM Industry Analyst centres at trade shows preference to attachg mselves to destations. IACC has more members who are currently Managg Director, MICE Knowledge build phase a new conference centre or who have opened durg 014 than we have seen for some time. Investment is returng, cludg vestment frastructure development meetg environments. IACC conference attendee numbers are also growg, which tells us that members are creasgly prepared to vest telligence, staff development novations. Takg world s economy as a whole, Asia will contue to provide largest share expansion, but attention is also creasgly focused on acceleratg growth beg experienced by many countries content Africa, particularly Sub- Saharan nations, with an estimated 3.6 percent growth rate percent expected 015. Strong vestment extractive dustries lks to fast- growg economies Asia are playg ir part boostg African economies. But Africa s attraction creasgly stems from its new middle class - people are its biggest asset. Half all Africans are under 0, are rapidly movg to cities: more than 40 5

7 percent Africans now live urban areas. One day, accordg to EIU report Growg African Cities, workforce could be as dynamic vital as Asia's especially compared with that ageg percent Europe. Africans With now Chese live companies urban areas. buildg One day, roads accordg upgradg to EIU railways, report ports Growg airports African all over Cities, African workforce content, could many be as dustries dynamic are vital experiencg as Asia's rapid especially growth, compared cludg with tourism. that By ageg 017, Europe. number With Chese visitors to companies sub- Saharan buildg Africa roads is set to reach upgradg 4 million. railways, Clearly, ports a large airports all over proportion African m content, will be attendg many dustries meetgs are experiencg or busess rapid event. growth, cludg tourism. By 017, To sum up number global visitors economic to sub- Saharan situation as we Africa approach is set to reach end 4 014, million. a quotation Clearly, a large from proportion Readers Deloitte s Global this m year s Economic will EIBTM be attendg Outlook: Trends Watch meetgs Report will or certaly busess notice event. upbeat tone confidence throughout pages this review our dustry s performance durg past 1 To sum up months The global global outlook economy economic for 015. appears situation That to confidence as be we settlg approach is to justified a new end by normal 014, fdgs modest a quotation most growth from sources I Deloitte s have used developed Global Economic compilation economies, Outlook: stabilization this report, growth it undoubtedly emergg comes economies, as a result a decle improvg situation systemic The some global risks key economy national emanatg appears economies from to policy be this settlg mistakes. year. But to On it a also new reflects or normal h, modest fact geopolitical that growth many risks appear meetgs developed to have events reared economies, dustry ir heads are stabilization already lately to experiencg a degree growth we improvg emergg haven t seen orders economies, some for future time. a busess. Troubles decle systemic Ukrae, Iraq, risks emanatg South from Cha policy Sea mistakes. have led On to concern or about h, geopolitical potential risks impact appear on And although economic our dustry outcomes. has not yet returned to pre- recession levels activity, it is clear that, for to have reared ir heads lately to a degree we haven t seen some time. Troubles now at least, we have navigated economic downturn successfully confidence levels have Ukrae, Iraq, South Cha Sea have led to concern about potential impact on been risg as a consequence that achievement. economic outcomes. Neverless, this has been a year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical developments which may still present as yet unknown threats to global economic This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. I hope that you will fd it useful as well as terestg. EIBTM Industry Analyst Managg Director, MICE Knowledge 6 6

8 CORPORATE MEETINGS - PERFORMANCE OF KEY MARKET SECTORS CORPORATE MEETINGS - PERFORMANCE OF KEY MARKET SECTORS In context corporate events particular, our dustry s fortunes largely depend upon performance a number key sectors economy, as volume meetgs, product In launches, context centive corporate trips events trag particular, sessions generally our dustry s reflects fortunes levels largely economic depend upon activity, performance novation pritability a number key se sectors market segments. economy, The as Information volume meetgs, Communications product Readers launches, Technology, centive this Automotive, year s trips EIBTM Pharmaceutical Trends trag Watch sessions Report Construction generally will certaly reflects dustries notice levels create upbeat economic considerable tone activity, dem novation confidence for busess throughout events pritability all types, pages se this market section review segments. our dustry s report The Information will performance exame ir Communications durg dividual past 1 Technology, months performances Automotive, over outlook past for Pharmaceutical 015. year. That confidence Construction is justified dustries by fdgs create considerable most dem sources I for have busess used events compilation all types, this this report, section it undoubtedly report will comes exame as a ir result dividual improvg performances situation some over key national past year. economies this year. But it also reflects fact that many meetgs Information events Communications dustry are already Technology experiencg improvg orders for future busess. And Accordg although to this our year s dustry KPMG has Technology not yet returned Industry to pre- recession Outlook Survey, levels a survey activity, US it technology is clear that, for Information now least, we have Communications navigated Technology economic dustry leaders US, US itself is gag downturn momentum successfully as top market confidence for revenue levels have growth, been risg as a consequence that achievement. Accordg followed by to Cha. this year s Revenue KPMG expansion Technology some Industry emergg Outlook markets, Survey, a a source survey dustry US technology strength Neverless, dustry recent years, leaders has this slowed has been US, due a to year US economic itself which is gag political cautious momentum changes. optimism as Reflectg top many market favourable meetgs for revenue conditions events growth, pressionals followed parts Europe, by Cha. has creasgly Revenue UK (at 4 expansion been percent, tempered a sharp some by year- over- year emergg an awareness markets, crease) risks a source arisg moved from dustry to third strength impacts place on geopolitical recent revenue years, growth developments has market slowed list. due which In to terms economic may still actual present revenue political as yet growth, changes. unknown data Reflectg threats & analytics to favourable (D&A) global conditions is economic expected to parts become Europe, leadg source UK (at 4 technology percent, a sharp sector year- over- year revenue growth crease) over moved next two to third years, place outpacg on mobile revenue growth cloud market revenue list. expectations. In terms actual Positioned revenue as a growth, strategic data enabler, & analytics D&A is (D&A) helpg is expected companies to This become to anticipate report is leadg customers designed source to needs help technology you benchmark to crease sector your operational revenue own performance growth efficiencies. over Many 014 next companies two anticipate years, are outpacg likely developments mobile planng to cloud vest revenue D&A market to expectations. me this year data ahead. Positioned for actionable as a strategic sights enabler, to revent D&A is helpg busess companies models I to that hope anticipate will that be you competitive customers will fd differentiators. it needs useful as well to crease Neverless, terestg. operational growth efficiencies. cloud Many companies mobile revenue, are planng paced by to strong vest dem D&A for to me apps this platforms, data actionable contues sights to exceed technology to revent company busess models that expectations will be competitive to foster differentiators. novative products, Neverless, services growth busess cloud models. mobile revenue, paced by strong dem for apps platforms, contues to exceed technology company Regardg employment ir sector, US technology dustry leaders surveyed by KPMG believe expectations to foster novative products, services busess models. that US, India, Cha will be leadg markets for technology jobs growth between now Rob Davidson Regardg 016. But employment or countries ir with sector, high US expectations technology for dustry employment leaders growth surveyed are by Canada, KPMG believe UK EIBTM that Germany. Industry US, India, Analyst Cha will be leadg markets for technology jobs growth between now 016. But or countries with high expectations for employment growth are Canada, UK Managg With Europe, Germany. Director, much MICE Knowledge expansion ICT dustry may be supported by vestment from US. Accordg to Fancial Times, American venture capital groups are vestg more to European With Europe, technology much start- ups, expansion as US vestors ICT look dustry to cash may on be supported rise by vestment content s from fledglg US. digital Accordg groups. to Industry Fancial executives Times, American vestors venture have poted capital to groups relative are vestg lack more such growth to European fundg as technology a reason for start- ups, why Europe s as US technology vestors look centres to cash fail to on produce rise as many content s large companies fledglg as digital Silicon groups. Valley. The Industry number executives new ICT companies vestors have created poted London, to for relative example, lack has such risen growth sharply fundg over past a reason few years, for why but Europe s ir potential technology to exp centres has fail been to produce limited partly as many due large to companies lack later as Silicon stage fundg Valley. available The number to UK new tech ICT start- ups. companies US funds created have been London, steppg for example, to fill has this risen gap. sharply over past few years, but ir potential to exp has been limited partly due to lack later Over past few years, American capital has flooded to European technology scene. In 010, stage fundg available to UK tech start- ups. US funds have been steppg to fill this gap. European start- ups received US$ 808 million durg growth fundg rounds, eir solely from US Over vestors past or through few years, jot American vestments capital between has flooded American to European venture technology groups. scene. By In 013, 010, European this figure start- ups had risen received US$ 1.9 billion US$ 808 million is projected durg to growth rise to fundg US$ 3.5 rounds, billion eir by solely end from this year. US vestors or through jot vestments between American European venture groups. By 013, this figure had risen US$ 1.9 billion is projected to rise to US$ 3.5 billion by end this year. Reed Travel Exhibitions EIBTM Trends Watch Report

9 Automotive Accordg to Euler Hermes, Cha US alone account for more than 55 percent global Automotive car sales. In 013, car sales Cha returned to double- digit growth hit a record level almost 18 Accordg million units to Euler sold. Hermes, The country Cha thus consolidated US alone its place account as for largest more than market 55 percent world, global a car position sales. held In 013, sce car 010, sales where Cha returned Western to manufacturers double- digit growth - via jot ventures hit a record with level Chese almost state- 18 owned million makers units - sold. have The a 60 country percent thus market consolidated share. In 014, its place we as expect largest growth market to contue at world, around a position +10 percent held sce a market 010, that will where head Western towards manufacturers 0 million vehicles. - via jot ventures with Chese state- owned Readers makers this - year s have EIBTM a 60 percent Trends market Watch share. Report In will 014, certaly we expect notice growth upbeat to contue tone at around +10 confidence percent throughout a market that pages will head this towards review 0 million our dustry s vehicles. performance durg past 1 months Figure 1. Year- on- year outlook changes for 015. That vehicles confidence market is justified by fdgs most sources I have used compilation this report, it undoubtedly comes as a result improvg situation some key national economies 013 this year. But it also reflects fact that 014 many Figure 1. Year- on- year changes vehicles market meetgs events Growth dustry Rate are (%) already experiencg Units Sold improvg Growth orders Rate for (%) future busess. Units Sold 013 (million) 014 (million) And Cha although our dustry has not yet returned to pre- recession levels activity, it is clear that, for Growth Rate (%) Units 18 Sold Growth +10 Rate (%) Units 0 Sold now United at States least, we have navigated +7.5 economic downturn successfully confidence levels have (million) (million) 16.5 been Europe risg as a consequence that achievement. Cha Russia Neverless, United States this has been a year.8 which cautious 16 optimism many +4 - meetgs events India pressionals Europe has creasgly been tempered by an +4 awareness risks +3 arisg from impacts Brazil Russia geopolitical developments which may still present as yet unknown threats to global economic India Brazil Source: Euler Hermes/Anfavea This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. Source: Euler Hermes/Anfavea I Figure hope 1 that shows you will year- on- year fd it useful changes as well as terestg. vehicles market for key countries. Sales US creased by +7.5 percent to nearly 16 million units 013 should grow more moderately 014, Figure at 1 shows around +4 year- on- year percent for 16.5 changes million units vehicles sold. A market salient pot for key from countries. 013 is Sales recovery US creased market by shares +7.5 percent US manufacturers to nearly 16 million units ongog 013 competitiveness should grow gas more by moderately US car dustry. 014, at around Once aga +4 percent pritable, for 16.5 US carmakers million units are sold. replacg A salient pot strengng from 013 ir is product recovery range to Rob boost market Davidson ir ternational shares US manufacturers development. ongog competitiveness gas by US car EIBTM dustry. Industry Once aga Analyst pritable, US carmakers are replacg strengng ir product range to The European market hit bottom 013 with 1.3 million vehicles sold, down by percent. boost ir ternational development. Neverless, monthly data show signs a rebound 014. With expected growth +3 percent Managg Director, MICE Knowledge this The year, European market could hit bottom see a sales 013 volume with million vehicles million sold, units. down While by this cipient percent. recovery Neverless, is welcome, monthly data level show sales signs Europe a rebound is expected 014. to With rema expected very low growth compared +3 percent with 16 this million year, annual market sales could 007. see a Problems sales volume overcapacity million pritability units. While for volume this cipient carmakers will refore recovery is persist, welcome, especially level as sales trade war Europe to preserve is expected market to rema shares very will contue, low compared as will with its negative 16 million effect annual on sales margs Problems overcapacity pritability for volume carmakers will refore persist, especially as trade war to preserve market shares will contue, as will its After double- digit growth period , Russian market fell by percent 013, negative effect on margs. a slight contraction - percent is also expected for 014. Aware limits Russian car dustry, After double- digit government growth has announced period 010 subsidies - 01, almost Russian EUR market 6 billion fell for by research percent 013, development a slight contraction support for - percent employment is also expected this sector. for 014. Aware limits Russian car dustry, government has announced subsidies almost EUR 6 billion for research India recorded a steep - 10 percent fall 013, returng to 1.8 million units after three years also development support for employment this sector. strong growth. For 014 Euler Hermes expected a recovery car market to get underway after India elections recorded a May. steep - 10 percent fall 013, returng to 1.8 million units after three years also strong growth. For 014 Euler Hermes expected a recovery car market to get underway after elections May. 8 8

10 Fally, Brazil s car sales fell 013, endg a decade- long boom which saw that country s fleet Fally, vehicles Brazil s double car to just sales over fell , million. endg With a Brazil s decade- long high terest boom which rates havg saw that a negative country s impact fleet on car vehicles sales, double automotive just over market's 80 million. recovery With Brazil s that country high terest is likely rates to be havg slow a negative gradual, impact but on should car sales, have returned automotive positive market's growth recovery by that end country this year. is likely to be slow gradual, but should have returned to positive growth by end this year. Readers Pharmaceutical this year s EIBTM Trends Watch Report will certaly notice upbeat tone confidence Pharmaceutical throughout pages this review our dustry s performance durg past 1 The healthcare sector event spend depends to a large extent on ir pipeles brgg new drugs months outlook for 015. That confidence is justified by fdgs most sources I The have to healthcare used marketplace sector compilation, event if y spend this do depends report, not have to a a strong large it undoubtedly extent pipele, on comes ir need pipeles as for a result associated brgg busess new drugs improvg to events marketplace will decrease,, this if y can do happen not have irrespective a strong pipele, economic need climate. for associated The creation busess new situation some key national economies this year. But it also reflects fact that many events drugs comes will decrease, a direct result this can pharmaceutical happen irrespective companies levels economic vestment climate. The research creation new meetgs events dustry are already experiencg improvg orders for future busess. drugs development comes as (R&D), a direct result that explas pharmaceutical why pharma companies sector levels vests vestment more money research research than development And any or. although Accordg (R&D), our dustry to KPMG that has explas not International, yet returned why 5 pharma to pre- recession world s sector 10 vests highest levels more R&D activity, money budgets it is research belong clear that, to than drug for any now companies. or. at least, Accordg Between have to 004 navigated KPMG International, 013 economic total 5 dustry downturn world s expenditure successfully 10 highest on R&D R&D confidence rose budgets from levels belong US$88 have billion to drug companies. been to US$135 risg billion, as Between a consequence 004 is forecast 013 that to reach achievement. total US$149 dustry billion expenditure by 018. At on R&D same rose time, from between US$88 billion 004 to US$ , billion, estimated is forecast cost brgg to reach a US$149 new chemical billion or by biological 018. At entity same to time, market between more than 004 Neverless, 013, this estimated has been cost a year brgg which a new cautious chemical optimism or biological many entity meetgs to market more events than trebled. In recent years, however, average number annual US Food Drug Admistration trebled. pressionals In recent has creasgly years, however, been tempered average by number an awareness annual US risks Food arisg from Drug Admistration impacts (FDA) approvals for new molecular entities a reliable dicator novation has risen from 3 to (FDA) geopolitical approvals developments for new molecular which may entities still present a reliable as yet dicator unknown threats novation to has global risen economic from 3 3, which is a promisg sign. Arguably, regulatory authorities have helped by cuttg back on red to 3, which tape to simplify is a promisg speed sign. up Arguably, approval regulatory process, authorities particularly have where helped rapies by cuttg for serious back on diseases red tape This are concerned. report to simplify is designed speed to help up you approval benchmark process, your own particularly performance where rapies 014 for anticipate serious diseases likely are developments concerned. market year ahead. Accordg to KPMG International s recent report, Growg pipele, growg bottom le. Accordg I Shifts hope that pharmaceutical to you KPMG will fd International s it R&D useful novation, as recent well as report, novation terestg. Growg is on rise pipele, pharmaceutical growg bottom companies. le. Shifts Seventy percent pharmaceutical senior R&D novation, R&D executives novation surveyed is on believe rise that ir pharmaceutical companies are companies. enjoyg a Seventy resurgence percent research senior productivity, R&D executives over half surveyed are satisfied believe with that ir portfolio s companies ability are enjoyg to a resurgence address unmet research medical productivity, needs. over half are satisfied with ir portfolio s ability to address unmet medical needs. Rob Cha Davidson is set to become a new force drug development. The Fancial Times notes that Beijg has Cha made is faster set to development become a new research- based force drug development. pharmaceuticals The Fancial a national Times priority notes both that to Beijg serve has made EIBTM growg faster Industry health development dems Analyst Chese research- based society, pharmaceuticals to challenge a national domance priority western both to drug- serve growg makers globally. health dems In government s Chese society, latest five- year to challenge plan, sector domance was identified western as one drug- seven makers Managg globally. Director, In MICE government s Knowledge pillar dustries to be promoted. latest five- year plan, sector was identified as one seven pillar dustries to be promoted. Compared to US$ 30 billion vested by US government each year fundamental drug Compared research, to Chese US$ 30 government billion vested vests by less than US government Rmb 10 billion each (US$ year 1.6 billion). fundamental There drug are signs, research, however, Chese gap begng government to narrow. vests Between less than 007 Rmb 10 billion 01, (US$ Chese 1.6 billion). vestment There are signs, however, biomedical R&D gap grew begng at a compound to narrow. annual Between rate percent. 01, Chese vestment biomedical R&D grew at a compound annual rate 33 percent. Actual dem for pharmaceutical products is key to success companies this sector, Actual this is under dem pressure for pharmaceutical many Western products nations. is key Accordg to success to Euler Hermes, companies Europe this remas sector, under this pressure is under to reduce pressure its budget many deficits, Western compounded nations. Accordg to a large to Euler extent Hermes, by recurrent Europe losses remas public under pressure health surance to reduce regimes. its budget The deficits, time is refore compounded for wholesale to a large savgs extent by to recurrent be made losses healthcare public, health particular, surance pharmaceutical regimes. The time sector. is refore For example, for wholesale France has savgs taken to be same made path healthcare as UK, Germany particular, given pharmaceutical preference to sector. generics For example, overall medice France has sales, taken order same to curb path its as greater UK Germany given preference to generics overall medice sales, order to curb its greater consumption pharmaceutical products ( prices which tend to be higher more recently consumption y come on to pharmaceutical market). The products choice to ( reduce prices healthcare which tend spendg to be is higher just as important more recently y come on to market). The choice to reduce healthcare spendg is just as important 9 9

11 US, as its per capita spendg on drugs is highest world. On or h, it is widely believed US, as its that per capita Obamacare spendg will on generate drugs is +5 percent highest additional world. dem On or for drugs h, it 014 is widely as a result believed that expected Obamacare 7 million will generate newly- sured +5 percent Americans. additional dem for drugs 014 as a result expected 7 million newly- sured Americans. Neverless, past year re has been a percent decle sales proprietary drugs alone Neverless, at global level. past This year is re a consequence has been a percent expiry decle patents sales proprietary pharmaceutical drugs companies alone at former global level. star drugs, This is meang a consequence that those drugs expiry can be replaced patents by much pharmaceutical cheaper Readers companies this former year s star EIBTM drugs, Trends meang Watch that Report those drugs will certaly can be replaced notice by upbeat much tone cheaper generics. Pharmaceutical revenues at risk between now to benefit generic makers confidence generics. Pharmaceutical throughout revenues pages at this risk review between our now dustry s 018 performance - to benefit durg generic past makers 1 - have been estimated at US$ 110 billion. As a result, Big Pharma is hasteng to vest emerged - months have been estimated outlook at for US$ billion. That confidence As a result, is justified Big Pharma by is hasteng fdgs to most vest emerged sources I markets, where dem for pharmaceuticals is expected to grow by more than +8 percent 014. markets, have used where dem compilation for pharmaceuticals this report, is expected it undoubtedly to grow comes by more as a than result +8 percent improvg 014. situation Figure a above some shows key national annual economies growth rates this for year. drugs But spendg it also reflects around fact world, that many it is clear that Figure meetgs greatest a above expansion events shows dustry annual dem are growth already lies rates outside experiencg for drugs mature spendg improvg markets around orders for healthcare. for world, future busess. it is clear that greatest expansion dem lies outside mature markets for healthcare. And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for now at least, we have navigated economic downturn successfully confidence levels have FIGURE a. Breakdown drugs spendg been risg as a consequence that achievement. FIGURE a. Breakdown drugs spendg USD (billions) Annual average growth Neverless, this has been a year which cautious optimism many meetgs events Unites States USD (billions) Annual average 1% growth pressionals has creasgly been tempered by an awareness risks arisg from impacts European Unites States Union 5 (1) % 1% geopolitical developments which may still present as yet unknown threats to global economic Japan European Union 5 (1) % 0.% Japan Rest World (Cha cluded) % 8% This World Rest report World is designed (Cha to cluded) help you benchmark your own performance 1, anticipate 4% 8% likely developments World market year ahead ,100 4% (1) Germany, France, United Kgdom, Spa, Italy I (1) hope Germany, that you France, will United fd useful Kgdom, as Spa, well as Italy terestg. Source: IMS, estimations Euler Hermes Source: IMS, estimations Euler Hermes Rob Construction Davidson Construction EIBTM Confidence Industry is growg Analyst once aga world construction, even hard- hit European market. Confidence In is growg survey carried once aga out for Timetric s world Construction construction, Busess even Confidence hard- hit Report European Q3, overall, Managg market. In Director, survey MICE carried Knowledge out for Timetric s 43 percent construction respondents stated that Construction y are operatg Busess Confidence a stable economic Report Q3, overall, environment, 43 percent construction while 8 percent respondents stated that stated current that economic y are operatg conditions were a stable favourable. economic The environment, majority global while construction 8 percent dustry stated that respondents current economic anticipated conditions positive were growth favourable. for both The ir majority company global dustry construction as a whole dustry over respondents July September anticipated 014. positive Industry growth respondents for both from ir North company America expected dustry highest as a growth whole over staff July September headcount 014. sales Industry that period. respondents from North America expected highest growth staff headcount sales that period. Figures published this year by Euroconstruct, ma network for construction, fance Figures busess published forecastg this year Europe, by Euroconstruct, suggest that European ma network construction for construction, market is fance fally reachg busess firmer ground. forecastg Aggregated Europe, construction suggest that output for European 19 Euroconstruct construction market countries is fally fell by reachg.7 percent firmer real ground. terms Aggregated 013, extendg construction negative output trend for started 19 Euroconstruct 008. The latest countries forecast fell by suggests.7 percent that real decle terms construction 013, extendg output fally negative bottomed trend started out last year, 008. The Euroconstruct latest forecast expects suggests that vestments decle to construction grow average output by fally 1.8 percent bottomed a year out last year, Neverless, Euroconstruct re expects are major vestments differences with to grow on 19 average countries. by 1.8 The percent Republic a year Irel Pol Neverless, could see an re average are major growth differences with 19 countries. The Republic Irel Pol could see an average growth 10 10

12 9 percent 6 percent respectively , measured at constant prices. The UK, Denmark 9 percent Hungary 6 percent are also respectively among , fast- growg measured construction at constant markets, prices. with average The UK, growth rates Denmark 3-4 percent Hungary a year. are also At among or end fast- growg scale construction are Czech markets, Republic with average Spa where growth construction rates 3-4 percent output a looks year. set At to rema or at end below 013 scale levels. are Czech Republic Spa where construction output looks set to rema at below 013 levels. It is maly buildg new residential buildgs that is contributg to upturn Europe, but It is tentative maly recovery buildg affects new all residential sub sectors buildgs construction that is contributg market. to After upturn a number Europe, hard but Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone turbulent tentative years, recovery this sign affects stability all sub sectors recovery is construction welcome. But market. authors After a number Euroconstruct hard confidence turbulent years, throughout this sign pages stability this recovery review is our welcome. dustry s But performance authors durg Euroconstruct past 1 report warn that recovery is likely be a protracted one, as high unemployment debt, low months report warn that outlook recovery for 015. is likely That be confidence a protracted is justified one, as by high unemployment fdgs most debt, sources low I vestment, tight credit, fancial fragmentation Euro zone contue to dampen domestic have vestment, used tight compilation credit, fancial this report, fragmentation it undoubtedly Euro comes zone contue as a result to dampen improvg domestic dem. situation dem. some key national economies this year. But it also reflects fact that many meetgs Euroconstruct s events forecast dustry for are growth already experiencg Europe s construction improvg dustry s orders for output future is busess. shown Figure b Euroconstruct s forecast for growth Europe s construction dustry s output is shown Figure And b although our dustry has not yet returned to pre- recession levels activity, it is clear that, for now Figure at least, b. GDP we have Total navigated Construction economic Output downturn from successfully 010 to 016. Year confidence to year levels change have % been Figure risg b. as GDP a consequence Total Construction that achievement. Output from 010 to 016. Year to year change % Neverless, this has been a year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical developments which may still present as yet unknown threats to global economic This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. I hope that you will fd it useful as well as terestg. EIBTM Industry Analyst Managg Director, MICE Knowledge Source: EUROCONSTRUCT (77 th Conference) Source: EUROCONSTRUCT (77 th Conference) But long term, it is developg world that will create most dem construction market But long consequently term, it is creased developg dem world for that construction will create most sector dem busess events. construction Accordg to Global market Construction consequently Perspectives creased Oxford dem Economics, for construction world sector construction busess events. market Accordg will grow to by more Global than Construction 70 percent Perspectives between now Oxford 05 Economics, to hit US$15 trillion, world as construction significant market opportunities will grow open by up more emergg than 70 percent Asian economies between now dem 05 for to hit 70 US$15 million trillion, new homes as significant as well opportunities as commercial open premises up emergg frastructure Asian economies drives dem market for Cha 70 million India. new Cha, homes India as well as commercial US will account premises for around frastructure 60 percent drives growth market just Cha over half India. Cha, growth India is expected to US occur will emergg account for markets. around Cha, 60 percent which growth 010 overtook just over US half to become growth world s is expected largest to construction occur emergg markets. Cha, which 010 overtook US to become world s largest construction 11 11

13 market, will crease its global market share from around 18 per cent today to around 6 per cent over market, will forecast crease period. its global market share from around 18 per cent today to around 6 per cent over forecast period. The Middle East will also contue to be a major source dem for construction. Accordg to figures The Middle from East will Middle also East contue Economic to be Digest a major (MEED) source cited dem Deloitte s for construction. report, GCC Accordg Powers to Construction, figures from Middle value East projects Economic planned Digest or (MEED) underway cited Deloitte s GCC (Gulf report, Cooperation GCC Powers Council) countries Construction, are up over value 13 percent projects compared planned or to underway a year ago (8 April GCC 014). (Gulf Saudi Cooperation Arabia leads Council) way Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone with countries over are US$1 up trillion over 13 worth percent projects compared planned to a year or currently ago (8 April underway 014). Saudi - up almost Arabia 19 leads percent way confidence throughout pages this review our dustry s performance durg past 1 with compared over US$1 to a year trillion ago. worth The UAE projects comes planned second or with currently over US$77 underway billion - up worth almost 19 projects percent months outlook for 015. That confidence is justified by fdgs most sources I compared planned or to currently a year ago. underway, The UAE up comes 9 percent second compared with over to a year US$77 ago. billion With over worth US$76 projects billion, have used compilation this report, it undoubtedly comes as a result improvg planned Qatar comes or currently third, underway, an crease up 9 over percent 17 percent compared compared to a year to ago. a year With ago. over US$76 billion, situation some key national economies this year. But it also reflects fact that many Qatar comes third, an crease over 17 percent compared to a year ago. meetgs Dubai has won events right dustry to host are already World experiencg Expo 00, improvg largest orders ever for Expo future site busess. is set to be built Dubai Jebel has won Ali (DWC) right area to host at a total World cost Expo between 00, US$ billion largest ever US$4 Expo billion. site The is set secondary to be built And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for frastructure Jebel Ali spend (DWC) will area be at upwards a total cost US$8 between billion, US$ will billion clude construction US$4 billion. opportunities The secondary now at least, we have navigated economic downturn successfully confidence levels have frastructure transport, spend hospitality, will be retail upwards commercial US$8 billion, sectors. will clude construction opportunities been risg as a consequence that achievement. transport, hospitality, retail commercial sectors. Neverless, this has been a year which cautious optimism many meetgs events pressionals Paul Miller- President has creasgly SITE been (Society tempered for Incentive by an awareness Travel Excellence) risks arisg from impacts Paul geopolitical Miller- developments President SITE which (Society may still for present Incentive as Travel yet unknown Excellence) threats to global economic 014 has been a good year for centive travel outlook for is has positive, been a as good year global for economy centive improves travel busess outlook for This report is designed to help you 015 travel benchmark is is positive, generally your as creasg. own global performance Companies economy improves 014 that aboned anticipate busess centive likely developments market travel programs year is ahead. generally durg creasg. economic Companies downturn that are re- troducg aboned centive m, programs havg recognised durg that economic centive downturn travel is an are important re- troducg busess m, I hope that you will fd it useful as well as terestg. havg tool to recognised motivate performance that centive travel to help is an achieve important busess busess results. tool Although to motivate dem performance centive budgets to help are achieve creasg, busess risg results. hotel Although air rates dem are requirg centive planners budgets to be are more creasg, thoughtful risg hotel planng air rates ir are centive requirg programs. planners In to order be more to obta thoughtful best rates planng availability, ir centive planners programs. are havg In to order book to programs obta 18-4 best rates months availability, advance. planners are havg to book programs 18-4 months advance. EIBTM Industry Analyst Managg Director, MICE Knowledge 1 1

14 ASSOCIATION CONFERENCES Some most important sights to global association conferences market are to be found this year s Marketg Challenges International s survey report, "Trends International Association Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone Meetgs from North America", which covers trends programmes, research planng, site confidence throughout pages this review our dustry s performance durg past 1 selection for North American association events that have global meetgs events. months outlook for 015. That confidence is justified by fdgs most sources I More have used than 40 percent compilation North American this report, association it undoubtedly executives comes surveyed as a for result report improvg saw creased situation budgets some key national higher attendance economies this at ternational year. But it also events reflects from fact previous that many two years, 91 meetgs percent planners events dustry expect are those already budgets experiencg to crease improvg or rema orders same for future for ir busess. upcomg events. And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for As now expected, at least, Europe we have domates navigated as economic primary downturn location for successfully ternational meetgs, confidence though levels Asia have has also been made risg a as strong a consequence showg recent that achievement. years Middle East appears to be firmly on radar for future meetgs. Marketg Challenges International noted that a significant percentage Neverless, this has been a year which cautious optimism many meetgs events association planners expressed willgness to repeat locations for ir largest ternational events. pressionals has creasgly been tempered by an awareness risks arisg from impacts Location cost are drivg factors for site selection, though association planners showed less geopolitical developments which may still present as yet unknown threats to global economic concern for destation reputation, suggestg that emergg destations have a role to play association meetgs events. This report is designed to help you benchmark your own performance 014 anticipate likely Durg research planng stages, convention bureaus tourist boards are a crucial developments market year ahead. resource to planners, with 83 percent survey respondents reportg usg ir services one way I hope or that anor, you will cludg fd it site useful visits as well (74 percent as terestg. respondents), marketg materials (5 percent), impartial advice (51 percent), venue fdg services (45 percent) bid support (45 percent). Among survey respondents, 88 percent reported that ir events budgets have eir creased or remaed same over past two years, with an average budget crease 14 percent (Figure 3). The outlook for this comg year is also positive: 37 percent respondents expect that budgets will crease for ir next event. See Figures 3 4, below. EIBTM Industry Analyst Average attendance at events has also creased or remaed same over past two years, accordg Managg Director, 77 percent MICE Knowledge respondents. Nearly 40 percent respondents to survey report an crease, while only 3 percent report a decle. What s more, highest percentage respondents (3 percent) has more than 1,000+ attendees at ir largest meetgs, planners report that average percentage delegates that travel from US to ternational meetgs is 30 percent. 13

15 Figure 3. Budget Changes for Associations from Previous Two Years Figure 3. Budget Changes for Associations from Previous Two Years 1% 1% Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone Decreased confidence throughout 46% pages this review our dustry s performance durg past 1 months outlook for 015. That confidence is justified Increased Decreased by fdgs most sources I have used 46% compilation this report, it undoubtedly Remaed comes as a result improvg Increased same situation some key national economies 4% this year. But it also reflects fact that many meetgs events dustry are already experiencg improvg Remaed orders same for future busess. 4% And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for now at least, we have navigated economic downturn successfully confidence levels have been risg as a consequence that achievement. Neverless, this has been a year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical Figure 4. Expected developments Budget which Changes may for still Associations present as for yet Next unknown Int l Event threats to global economic Figure 4. Expected Budget Changes for Associations for Next Int l Event This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. 9% I hope that you will fd it useful as well as terestg. 9% Decreased 54% 54% EIBTM Industry Analyst Managg Director, MICE Knowledge 37% 37% Increased Decreased Remaed Increased same Remaed same Source: Marketg Challenges International: Trends International Association Meetgs from North America Source: Marketg Challenges International: Trends International Association Meetgs from When North America it comes to site selection, Europe remas domant hostg ternational meetgs: 65 percent surveyed planners hosted ir last ternational meetg re, with three- quarters When it comes to site selection, Europe remas domant hostg ternational meetgs: 65 those respondents specifyg Western Europe as selected region. Asia was also popular among percent surveyed planners hosted ir last ternational meetg re, with three- quarters association planners: percent respondents hosted ir last ternational meetg re. those respondents specifyg Western Europe as selected region. Asia was also popular among Among those respondents, 36 percent selected Cha, 1 percent selected Japan, 9 percent association planners: percent respondents hosted ir last ternational meetg re. Among those respondents, 36 percent selected Cha, 1 percent selected Japan, 9 percent 14 14

16 selected Souast Asia, with a number planners specifically listg Malaysia as location ir last event. (Figure 5). selected Souast Asia, with a number planners specifically listg Malaysia as location Figure ir last 5. Location event. (Figure Last 5). International Meetg Figure 5. Location Last International Meetg Europe 64.86% Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone confidence throughout Europe pages this review our dustry s performance durg past 64.86% 1 Asia 1.6% months outlook for 015. That confidence is justified by fdgs most sources I have used compilation Asia this report, it undoubtedly 1.6% Australia & New Zeal 4.05% comes as a result improvg situation some key national economies this year. But it also reflects fact that many meetgs Australia events & New dustry Zeal are already 4.05% experiencg Central America.70% improvg orders for future busess. And although our Central dustry America has not yet.70% returned to pre- recession levels activity, it is clear that, for South America 1.35% now at least, we have navigated economic downturn successfully confidence levels have been risg as a consequence South America that 1.35% achievement. Middle East 0% Neverless, this has been a year which cautious optimism many meetgs events Middle East 0% pressionals has creasgly Africa been tempered 5.41% by an awareness risks arisg from impacts geopolitical developments Africa which may still 5.41% present as yet unknown threats to global economic This Source: report Marketg is designed Challenges to help you International: benchmark Trends your own International performance Association 014 Meetgs anticipate from likely developments North America market year ahead. Source: Marketg Challenges International: Trends International Association Meetgs from I North hope America that you will fd it useful as well as terestg. For ir next ternational meetg, nearly half (47 percent) respondents are planng to host Europe, with two- thirds specifyg Western Europe as region. Interestgly, a number For ir next ternational meetg, nearly half (47 percent) respondents are planng to host respondents specifically mentioned Turkey as next meetg location. Approximately a quarter Europe, with two- thirds specifyg Western Europe as region. Interestgly, a number Rob (4 percent) Davidson respondents reported planng ir next ternational meetg Asia, with respondents specifically mentioned Turkey as next meetg location. Approximately a quarter specific location split relatively equally between Cha, Japan, India, Souast Asia. Or EIBTM (4 percent) Industry respondents Analyst reported planng ir next ternational meetg Asia, with regions are piqug terest planners as well: although 4 percent planners hosted ir last specific location split relatively equally between Cha, Japan, India, Souast Asia. Or Managg meetg regions are Director, Australia piqug MICE or New terest Knowledge Zeal, planners 13 percent plan to host ir next one that region. Even as well: although 4 percent planners hosted ir last though no planners held ir last meetg Middle East, 4 percent report hostg ir next meetg Australia or New Zeal, 13 percent plan to host ir next one that region. Even meetg re. though no planners held ir last meetg Middle East, 4 percent report hostg ir next Anor meetg valuable re. sight to how destations most frequently chosen for ternational association conferences is provided by annual International Meetgs Statistics Report published Anor valuable sight to how destations most frequently chosen for ternational by Union International Associations. The most recent report shows Sgapore, US association conferences is provided by annual International Meetgs Statistics Report published Korea Republic holdg top places country rankgs Sgapore, Brussels Vienna for by Union International Associations. The most recent report shows Sgapore, US city rankgs. The top 10 country rankgs show little change from year before, except for Korea Republic holdg top places country rankgs Sgapore, Brussels Vienna for re- entry UK to top 10. In city rankgs Copenhagen left top 10 Busan city rankgs. The top 10 country rankgs show little change from year before, except for entered it. Encouraggly, re is clear evidence growth number association meetgs re- entry UK to top 10. In city rankgs Copenhagen left top 10 Busan beg held worldwide, as total number meetgs UIA database for 013 reached entered it. Encouraggly, re is clear evidence growth number association meetgs 408,798, a significant rise from 39,588 meetgs on database for previous year. beg held worldwide, as total number meetgs UIA database for 013 reached 408,798, a significant rise from 39,588 meetgs on database for previous year

17 Figure 6. UIA Top International Meetg Countries Cities. Top Figure ternational 6. UIA Top meetg International countries Meetg 013 Countries (extracted from Cities. Table 1., A + B column) Top ternational Country meetg countries 013 Number (extracted Meetgs from Table 1., A + Percentage B column) all meetgs Sgapore % Country Number Meetgs Percentage all meetgs USA % Sgapore % Korea Rep % Readers USA this year s EIBTM Trends Watch Report 799 will certaly notice upbeat tone 7.5% Japan % confidence Korea Rep throughout pages this review 635 our dustry s performance durg 6.0% Belgium tied % past 1 months Spa Japan tied outlook for 015. That confidence is justified by fdgs most 4.8% 5.5% sources I have Germany Belgium used tied compilation this report, it undoubtedly comes as a result 4.0% 4.8% improvg situation Spa tied some key national economies this year. 505 But it also reflects fact that 4.8% many France % Germany % meetgs Austria events dustry are already experiencg 398 improvg orders for future 3.7% busess. France % UK % And Austria although our dustry has not yet returned to 398 pre- recession levels activity, it 3.7% is clear that, for now UK at least, we have navigated economic downturn 349 successfully confidence 3.3% levels have been Top ternational risg as a consequence meetg cities that 013 achievement. (extracted from Table 1.3, A + B column) Neverless, Top ternational City this meetg has been cities a year 013 which Number (extracted cautious from Meetgs optimism Table 1.3, A + many B Percentage column) meetgs all meetgs events pressionals Sgapore has creasgly been tempered by 994 an awareness risks arisg from 9.4% impacts geopolitical developments City which may still Number present as Meetgs yet unknown threats Percentage to global all economic meetgs Brussels % Vienna Sgapore % 9.4% Brussels % Seoul 4.3% This Vienna report is designed to help you benchmark your 318 own performance % anticipate likely Tokyo 8.1% developments Seoul market year ahead. 4.3% Barcelona % Tokyo 8.1% I Paris Barcelona hope that you will fd it useful as well as terestg % 1.8% Madrid % Paris % Busan % Madrid % London % Busan % London % Source: UIA International Meetgs Statistics Report for Year 013 EIBTM Industry Analyst Source: UIA International Meetgs Statistics Report for Year 013 Managg Director, MICE Knowledge (Meetgs taken to consideration clude those organised /or sponsored by ternational organisations which appear Yearbook International Organizations International (Meetgs taken to consideration clude those organised /or sponsored by ternational Congress Calendar, i.e. sittgs ir prcipal organs, congresses, conventions, symposia, organisations which appear Yearbook International Organizations International regional sessions groupg several countries, as well as some national meetgs with ternational Congress Calendar, i.e. sittgs ir prcipal organs, congresses, conventions, symposia, participation organised by national branches ternational associations). regional sessions groupg several countries, as well as some national meetgs with ternational participation organised by national branches ternational associations)

18 INCENTIVE TRAVEL INCENTIVE TRAVEL Two key surveys this year pot to a resurgence use centive travel fairly upbeat expectations Two key surveys for this future year pot this to sector a resurgence busess events. use Although centive travel majority fairly upbeat participants expectations for both surveys future were this US- based, sector busess fdgs events. are relevant Although much majority more widely, given Readers size participants US this centive both year s surveys EIBTM market: were Trends US US- based, companies Watch Report spend fdgs will $40 certaly are billion relevant notice a year much on upbeat centive more widely, tone travel, given a confidence sizeable size proportion US throughout centive that market: is pages spend US companies this destations review spend our outside $40 dustry s billion ir own performance a year country. on centive durg travel, past 1 a months sizeable proportion outlook that for is 015. spend That destations confidence is outside justified ir by own fdgs country. most sources I have used compilation this report, it undoubtedly comes as a result improvg situation SITE International some key Foundation s national economies most recent this Index year. Annual But it also Survey reflects demonstrated fact that that many optimism about meetgs events dustry are already experiencg improvg orders for future busess. SITE overall International use motivational Foundation s travel most experiences recent Index is Annual at a four- year Survey demonstrated high, with 48 percent that optimism about respondents And overall although use sayg our motivational that its use dustry has not travel will crease yet experiences or substantially returned to is pre- recession at a four- year crease levels high, with next activity, 48 percent 6 months it is clear - a that, for marked now respondents crease at least, sayg over we have that past navigated its years. use will When crease questioned economic or downturn substantially about ir successfully crease expectations confidence next for 6 months use levels - centive have a travel been marked over risg crease next a consequence over 1 to past 3 years, years. that When mood achievement. questioned was even about more ir positive, expectations with 87 percent for use believg centive that it will travel crease over or next substantially 1 to 3 years, crease. mood was even more positive, with 87 percent believg that it Neverless, will crease or this substantially has been a crease. year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical Those centive developments travel pressionals which may who still participated present as yet unknown Incentive threats Research to Foundation global economic (IRF) Fall Pulse Those Survey, centive conducted travel pressionals August who this participated year were equally upbeat Incentive about Research prospects Foundation for (IRF) this Fall sector. This Pulse report Survey, Two- thirds is designed conducted m to help were August positive you benchmark this or year strongly were your own equally positive performance upbeat about about impact 014 prospects that economy anticipate for this likely will have developments sector. on Two- thirds ir ability to market m plan were implement positive year ahead. or centive strongly positive travel programmes. about impact As Figure that 7 shows, economy will percentage have on ir ability respondents to plan considerg implement impact centive travel general programmes. state As Figure economy 7 shows, to be percentage I strongly hope that positive you respondents will / somewhat fd it useful considerg positive as well for as centive terestg. impact travel rose general to 67 state percent economy August 014, to be from 63 strongly percent positive May / this somewhat year. The positive Figure for shows centive that sce travel rose Pulse to 67 Survey percent September August 014, 01, from 63 percent general trend May has been this year. for more The Figure respondents shows that to consider sce that Pulse Survey state September economy 01, is creatg a general favourable trend rar has been than a for hostile more environment respondents for to consider centive that travel. state economy is creatg a favourable rar than a hostile environment for centive travel. EIBTM Philippe Industry Fournier- Analyst President JMIC (Jot Meetgs Industry Council) Philippe Fournier- President JMIC (Jot Meetgs Industry Council) Managg Director, MICE Knowledge JMIC s top priorities 014 were to better align meetgs dustry measures messages with those or global travel- related JMIC s top priorities 014 were to better align meetgs dustry organisations to improve our ability to document measures messages with those or global travel- related communicate broader range values associated with this organisations to improve our ability to document sector areas economic, academic pressional communicate broader range values associated with this development. Upcomg actions will clude pursuit a more sector areas economic, academic pressional consistent rigorous value measurement process cooperation development. Upcomg actions will clude pursuit a more with ternational agencies whose endorsement will reforce consistent rigorous value measurement process cooperation dustry credibility, as well as ways to more effectively break with ternational agencies whose endorsement will reforce through to larger government community audiences whose dustry credibility, as well as ways to more effectively break attitudes will fluence future dustry through ir through to larger government community audiences whose vestment decisions. attitudes will fluence future dustry through ir vestment decisions. Reed Travel Exhibitions EIBTM Trends Watch Report

19 Figure 7. In comg year, what impact will economy have on your ability to plan implement centive travel programmes? Figure 7. In comg year, what impact will economy have on your ability to plan implement centive travel programmes? Readers this year s EIBTM Trends Watch Report will certaly notice upbeat tone confidence throughout pages this review our dustry s performance durg past 1 months outlook for 015. That confidence is justified by fdgs most sources I have used compilation this report, it undoubtedly comes as a result improvg situation some key national economies this year. But it also reflects fact that many meetgs events dustry are already experiencg improvg orders for future busess. And although our dustry has not yet returned to pre- recession levels activity, it is clear that, for now at least, we have navigated economic downturn successfully confidence levels have been risg as a consequence that achievement. Neverless, this has been a year which cautious optimism many meetgs events pressionals has creasgly been tempered by an awareness risks arisg from impacts geopolitical developments which may still present as yet unknown threats to global economic This report is designed to help you benchmark your own performance 014 anticipate likely developments market year ahead. I hope that you will fd it useful as well as terestg. Rob Source: Davidson Incentive Research Foundation Fall Pulse Survey, 014 Source: EIBTM Furr Industry evidence Incentive Analyst that Research improvement Foundation Fall state Pulse Survey, national 014 economy can feed through directly to a boost for centive travel comes from C&IT State Industry Report, conducted Furr Managg evidence Director, that MICE improvement Knowledge state national economy can feed through directly UK market. That research also provided evidence a resurgence this sector. More than a quarter to a boost for centive travel comes from C&IT State Industry Report, conducted UK UK agencies (7 percent) market. That research also surveyed said y have seen an crease centive activity provided evidence a resurgence this sector. More than a quarter past 1 months. The crease centives is partly down to some clients troducg centives for UK agencies (7 percent) surveyed said y have seen an crease centive activity first time, while or corporates are returng to centive activity after a break durg past 1 months. The crease centives is partly down to some clients troducg centives for recession, some are creasg ir budgets. first time, while or corporates are returng to centive activity after a break durg recession, A few or quantitative some are creasg fdgs from ir budgets. IRF survey are also worthy note: A There few or appears quantitative to be fdgs overall majority from expectation IRF survey are that also most worthy centive note: travel budgets will eir rema unchanged (47 percent) or slightly crease (37 percent) comg year. There appears to be an overall majority expectation that most centive travel budgets will eir rema In terms unchanged average (47 percent) length or slightly centive crease trips (37 number percent) participants, comg year. survey found that even though length se trips is generally not creasg, number programmes In terms average length centive trips number participants, survey found that decreasg size duration has steadily dropped. even though length se trips is generally not creasg, number programmes decreasg size duration has steadily dropped

20 Despite all talk about creasg popularity dividual centive travel rewards, 95 percent corporate users that responded to IRF survey stated y do not anticipate a change Despite all talk about creasg popularity dividual centive travel rewards, 95 strategy movg from group trips to dividual travel packages. percent corporate users that responded to IRF survey stated y do not anticipate a change Anor strategy topical movg me from group volvement trips to dividual Procurement travel packages. Purchasg pressionals buyg centive travel was cluded survey, which found that although 5 percent Anor topical me volvement Procurement Purchasg pressionals respondents did not expect this to change, 3 percent expected it to crease moderately 1 buyg centive travel was cluded survey, which found that although 5 percent Readers percent expected this year s it to EIBTM crease Trends significantly. Watch Report respondents did not expect this to change, 3 percent will expected certaly notice it to crease upbeat moderately tone 1 confidence percent expected throughout it to crease pages significantly. this review our dustry s performance durg past 1 months outlook for 015. That confidence is justified by fdgs most sources I have The fdgs used compilation SITE International this report, Foundation it survey undoubtedly pot to comes two or as a result key trends for improvg centive situation travel: some key national economies this year. But it also reflects fact that many The fdgs SITE International Foundation survey pot to two or key trends for centive meetgs events dustry are already experiencg improvg orders for future busess. travel: There has been an crease percentage respondents who see use Return on And Investment although / Return our dustry on Objectives has not yet for returned centive to travel pre- recession growg: 63 levels percent activity, believe it it is will clear rise that, for There has been an crease percentage respondents who see use Return on now next at 6 months, least, we as have opposed navigated to 54 percent economic who gave downturn that same successfully response confidence last year's survey. levels have Investment / Return on Objectives for centive travel growg: 63 percent believe it will rise been risg as a consequence that achievement. next There 6 months, is also a as strong opposed collective to 54 percent belief that who gave clusion that same busess response meetgs last year's or survey. similar Neverless, components this motivational has been a events year will which grow: 55 cautious percent optimism see this growg many meetgs next 6 months, events There is also a strong collective belief that clusion busess meetgs or similar pressionals 77 percent expect has creasgly to see this trend been tempered next by 1 - an 3 years. awareness Both are risks larger arisg percentages from than impacts one year components motivational events will grow: 55 percent see this growg next 6 months, geopolitical ago. developments which may still present as yet unknown threats to global economic 77 percent expect to see this trend next 1-3 years. Both are larger percentages than one year ago. This report is designed to help you benchmark your own performance 014 anticipate likely Gef Donaghy - President AIPC (International Association Convention Centres) developments market year ahead. Gef Donaghy - President AIPC (International Association Convention Centres) I hope that you will fd it useful as While well global as terestg. economic prospects are still waverg, 014 will go down as year that AIPC members recorded first solid While global economic prospects are still waverg, 014 will go growth dicators sce start last global recession. The down as year that AIPC members recorded first solid recovery is now beg led by corporate busess that is contributg growth dicators sce start last global recession. The to ongog strength association market which sustaed recovery is now beg led by corporate busess that is contributg busess through challenges past 5 years. Or issues to to ongog strength association market which sustaed be reckoned with beyond strength overall economic busess through challenges past 5 years. Or issues to EIBTM Industry Analyst recovery clude creasg global competition concerns be reckoned with beyond strength overall economic around government policies, particularly as y affect ongog Managg Director, MICE Knowledge recovery clude creasg global competition concerns facility vestment participation government employees around government policies, particularly as y affect ongog meetgs conventions. facility vestment participation government employees meetgs conventions. Regardg all- important question trends type destations beg chosen for centive trips, IRF survey found that almost half (46 percent) respondents had no tention Regardg all- important question trends type destations beg chosen for centive changg, but next largest category (15 percent) anticipated changg from domestic to trips, IRF survey found that almost half (46 percent) respondents had no tention ternational destations (that is, outside US). Although this is fset to some extent by those changg, but next largest category (15 percent) anticipated changg from domestic to respondents anticipatg a change opposite direction, re has been a significant decrease ternational destations (that is, outside US). Although this is fset to some extent by those From ternational to domestic switches sce 010. See Figure 8. respondents anticipatg a change opposite direction, re has been a significant decrease From ternational to domestic switches sce 010. See Figure