MICE budgets will be put under more pressure in 2013, with buyers expected to maintain activities with less money, according to new research by American Express.
Issa Jouaneh, vice-president and general manager of Amex's meetings and events division, unveiled the findings at EIBTM in Barcelona. He said the global picture of MICE activities outpacing spend meant there was increasing demand for managed meetings policies and programmes to be as sophisticated as those of transient travel. "This will be a continuing trend in 2013," he said.
Jouaneh added there was a "healthy tension" between hotels' planned rate rises in 2013 and buyers' expectations that rates will stay the same, and that the pressure would continue to drive short lead times.
The forecast, based on Amex data combined with polling of buyers and suppliers around the world, showed strongest growth in the Asia-Pacific region, with the number of meetings expected to rise 6.4 per cent.
But Amex vice-president Michael Schuller compared this to only a 4.2 per cent predicted increase in spend, which he said pointed to an "increasing cost-consciousness" in a traditionally high-spending region. The added factor of a predicted 4 per cent increase in hotel group rates would drive greater interest in strategic meetings management in Asia Pacific, he said.
Schuller said "status quo" best described the North American market for 2013, with spend and volume predictions virtually flatlining. With these figures, he said the forecast 4.2 per cent hotel group rate rise was likely to be subject to rigorous negotiations.
Europe is forecast to see the biggest decline, with a 2.3 per cent drop in the number of meetings tied to a 6 per cent fall in spend, implying big budgetary pressures for European MICE planners in 2013. London remains Europe's top MICE destination for 2013, followed by Paris and Amsterdam. Barcelona comes fourth, despite Spain being expected to see the most dramatic fall (over 10 per cent) in European MICE spend.
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