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Saturday, May 4, 2024

Hurdles must be overcome for Thailand to become a Mice hub


Taylor Swift performs at MetLife Stadium in East Rutherford, New Jersey, on May 26, 2023.

Taylor Swift’s world tour became a hot topic among her local fans after she didn’t include Thailand in her schedule.

Some people are questioning the capability of the country to become an international exhibitions and events hub in the region.

Of the total value of the Mice (meetings, incentives, conferences and exhibitions) industry in last year’s fourth quarter, which was 28.5 billion baht, exhibitions generated the most income at 6.88 billion baht. This amount was more than twice as much as corporate meetings, which generated 3.24 billion baht, according to the Thailand Convention and Exhibition Bureau (TCEB).

With business activities returning to normal, heavy traffic can ensnare convention centres that host big exhibitions or concerts in the Thai capital.

Traffic jams can happen when two international shows occur simultaneously, attracting more than 10,000 visitors.

According to the 2022 Global Traffic Scorecard produced by INRIX Research, Bangkok had the second-worst traffic in Asia, with 67 hours lost to congestion.

The 55,000-seat Singapore National Stadium, which will host upcoming concerts on Taylor Swift’s tour, connects directly to an MRT station.

Rajamangala National Stadium, Thailand’s largest, which can accommodate 51,000 people, is located three kilometres away from the nearest Yellow Line railway station. It would take 38 minutes to reach the station from the stadium on foot.

“Good urban planning and infrastructure are important components to position Thailand as an international event and entertainment hub,” said Loy Joon How, general manager of Impact Exhibition Management, the operator of Impact Exhibition and Convention Center.

Other important factors include establishing a good track record in delivering high-quality international events, as well as a proactive marketing and branding approach to seek collaborations and strategic tie-ups with stakeholders, he said.

Pravit Sribanditmongkol, an advisor to the Thai Exhibition Association, insisted Thailand is second to none in the exhibition industry, with plenty of choices in terms of venues and accommodation. However, when it comes to urban planning, specifically how exhibition centres and mass transport should be integrated, the country has failed to implement such plans, he said.

LOST OPPORTUNITIES

“All the big exhibition and convention centres in Thailand are owned by the private sector, unlike many other leading Mice countries, in which city governments invest on their own. This gives other cities an advantage on urban planning, allowing them to arrange how to accommodate big events with large audiences,” said Mr Pravit.

These destinations can work with private organisers to draw events. This model has made Germany one of the world’s most successful countries in the Mice sector.

Many of Thailand’s state-owned Mice venues in the provinces have performed below par, failing to attract business-to-business events and posting losses attributed to poor logistics and insufficient infrastructure at venues, he said.

Mr Pravit pointed to the 3-billion-baht Chiang Mai International Exhibition and Convention Centre, which has only attracted a small number of local consumer events despite being billed as the “gateway to the North”.

“Traffic in Bangkok might not be a big issue for Mice travellers today as they’ve learned to book nearby hotels to avoid such problems,” he said.

“However, the government should learn from Bangkok and prepare better logistics if it wants to invest in the future, especially in Phuket, which might be the next destination for a state-owned exhibition centre.”

Mr Loy agreed the underperformance of state venues could be attributed to weak market demand, inefficient operational performance and an inherent lack of supporting infrastructure and facilities.

From 2023 to 2027, TCEB aims to attract 160 million Mice travellers, generating more than 945 billion baht.

To strengthen this market by securing an entertainment hub, he said the country would fare better if it ramps up international promotion efforts by forging strategic ties and partnerships with international artists, music promoters, event organisers and other stakeholders in the global music industry.

These partners are looking for world-class venues, easy air connections and good hospitality facilities, such as hotels and transport, said Mr Loy.

Other factors that could attract entertainers comprise ensuring stable governance and addressing international artists’ safety and security concerns, as well as crowd control and anti-terrorism protocols, he said. The government should work on these issues to attract artists and entertainers, said Mr Loy.

Mr Pravit said Bangkok has sufficient exhibition spaces for international events. The government could help scale up this industry by promoting each regional hub in the country.

Integrated investment with good urban planning and marketing plans should be initiated by the government because it would be difficult for provinces to attract private investment at the same level as Bangkok, given the difficulty in posting a profit in the initial stages, he said.

“Thailand still has an opportunity to become a Mice hub if we can repackage each city with a better infrastructure plan and present our unique attributes to international clients,” said Mr Pravit.



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