Rising costs but MICE sector still remains somewhat resilient.....
MICE organisers reeling from rising rentals and wages
14 December 2012 2343 hrs (SST)
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SINGAPORE : It is a mixed bag for Singapore's Meetings, Incentives, Conventions and Exhibitions (MICE) sector. Exhibition venues are raking in the cash, but event organisers have said they are reeling from rising rentals and wages.
Resorts World Sentosa (RWS) said attractions such as its Marine Life Park are luring in customers.
RWS will pull in 600,000 delegates for 3,000 events this year - 20 per cent more than last year. And it is convinced there is more upside.
Noel Hawkes, vice president of Attraction Sales at Resorts World Sentosa Singapore, said: "2013 is going to be an interesting year. The world economy is a bit shaky at the moment, but we are cautiously optimistic that we will continue to grow our business. And we can definitely see a growth of at least 10 per cent in our MICE business.
To keep up with competition, RWS said it must not "rest on its laurels" and has to continuously find new products to excite customers.
Visitors can expect a new "Sesame Street" ride to be unveiled at Universal Studios in the first quarter of next year.
In this business, the old adage "you have got to spend money to make money" rings true.
Suntec Singapore will close its doors for six months for wide-scale renovations, and it is convinced the facelift will give it an edge over the competition.
Arun Madhok, CEO of Suntec Singapore, said: "Our entire building is re-modelled to deliver a high level of flexibility. This will allow us to meet the volume needs of customers.
"We are improving our food production techniques and service style. We are adding a whole range of technology into the building to actually assist us in delivering the perfect experience for our customers."
But it isn't rosy for everyone.
Event organisers like Conference & Exhibition Management Services said they are in a fix.
Edward Liu, managing director of Conference & Exhibition Management Services, said: "Most of the venues that we make use of...tend to increase their rental rates every couple of years.
"Their rationale is that they are also facing cost challenges due to manpower costs, maintenance and so forth. So obviously, they are passing the higher charges to the hirers of their facilities."
Mr Liu added that event organisers now need to secure about 1,500 square metres of exhibition space, or about 150 booths in order to breakeven. That is an increase of 15 per cent in 10 years.
The organisers warn if they do not fill their event calendars, the rising cost of rentals and wages will squeeze their margins.
- CNA/ms
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