MICE trouble in Thailand

If you were to go by the headlines of the last few months, all that remains of Bangkok is a near-level scattering of small stones and bent steel girders.

In May of this year, a small army of red-shirted protesters stormed Bangkok city centre, raging against the elected government in favour of ex-PM Thaksin Shinawatra, who had been ousted in a military coup in September 2006.

With red-shirted protestors filling the streets downtown and facing strong police retribution, surely Thailand’s exhibition industry is reeling? To some extent it is, albeit more as a result of exaggerated media coverage than to any personal risks a visitor may have faced.

Earlier this summer, the Thailand Convention and Exhibition Bureau (TCEB) estimated the impact of the political crisis on the country’s events industry at more than US$3bn.

Commenting on the impact of the political crisis, TCEB president Akapol Sorasuchart said: “The crisis has certainly led to serious and long-lasting impacts on the MICE industry.” He continues to say that between 12 March and 1 June, the country lost approximately 73,000 events visitors, as well as their US$93.8m spend.

The country is now scrambling not to have all its hard work undone.

However, the exhibition industry specifically seems to have suffered only light casualties, with only one cancellation and a few postponements.

“What happened and what was broadcasted was from a small area in the city centre. At least 95 per cent of Bangkok was not affected by the protests,” says Panittha Buri, director of marketing and sales for the Bangkok International Trade and Exhibition Centre (BITEC).

“It is true that some of the hardcore protestors were violent and damaged the city, which was a pity. It could have had a peaceful end as the government actually conceded to having an early election. However, many of the radicals chose to continue with violence and thus the government resorted to the use of force in the city centre.”

“During the month of May, several consumer exhibitions that were planned in the city centre venues were either cancelled or postponed, as three small to mid-sized venues were within the affected areas. Trade and consumer shows in larger venues such as BITEC were almost unaffected,” she adds.

As for BITEC, one new event due for 2010 was postponed until 2011. Other shows were held with minor drops in exhibitor and visitor numbers. The most serious effect on a trade show at BITEC was a 15 per cent decrease in overseas visitors to Intermach 2010, organised by UBM Asia.

“Just like any country in the world which has been through some rough periods, it does take time to fully recover from the negative image that was painted.” Buri says.

Director of exhibitions for TCEB, Supawan Teerarat, says: “Thailand’s MICE and tourism industries have suffered from the global media coverage of recent confrontations between the protestors and the authorities.

“People may not have realised that the protests took place in only a few restricted locations. In other parts of Bangkok and throughout the rest of Thailand, life and business continued exactly as normal,” she adds.

Since the crisis, several new marketing campaigns aim to repair any damage sustained by Thailand’s reputation as an international events destination.

Thailand Extra Value highlights value for money, variety of choice and the charms of Thai hospitality. Max Bonus offers organisers up to US$63,000 for organising events in Thailand. For promoters such as travel agents, international associations or government organisations, the 100-A-Head campaign offers US$100 for every delegate visiting the country for two or more nights.

One organisation which is still planning to go ahead with an event is UFI, whose Open Seminar in Asia will be held as announced from  24-25 February 2011.

Thailand is working hard to recover its international events business. Whether extensive promotional campaigns will help organisers and exhibitors overcome their trepidations, or if the highly-publicised protests have dealt the country a permanent blow, will be determined in the coming months.