Organisers look abroad as event industry stagnates
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THE EVENT MARKETING ASSOCIATION had lowered its growth forecast the event industry this year to zero, from 5 per cent previously, because of the sluggish economy and political uncertainty.
The EMA also forecasts that both factors will continue to have an impact on event business into next year. Hence some major event organisers are aiming to sustain their businesses by focusing on overseas expansion.
Sermkhun Kunawong, chief executive officer of event organiser CMO and chairman of the EMA, said the industry now expected revenue of Bt14 billion this year, on par with last year’s total income from concerts, marketing events, local exhibitions and trade fairs. This excluded the value of special projects like the “BOI Fair”.
Sermkhun said consumers had been tightening their belts over concerns about their financial security during the economic downturn since the second quarter. Businesses have also cut their budgets for media and on-the-ground promotional events.
The EMA acknowledged that though the current quarter includes the festive season, some companies had decided to postpone or cancel events to launch new products because their wanted to pay their last respects to His Holiness Somdet Phra Sangharaja Sakalamahasanghaparinayaka, the Supreme Patriarch who died on October 24.
Businesses also want to wait and see how the current demonstrations against the government end up before making any decisions on promotional activities.
Somchai Cheewasutthanon, CEO of Tee Entertainment, said the big challenge for the event industry was the fact that the clients wanted to make a bigger impact than previously.
Though overall advertising spending so far this year has grown slightly, clients are putting more focus on marketing promotions and discount offers at the point of purchase, rather than paying for marketing events to boost sales, Index Creative Village co-CEO Kriangkrai Kanjanapokin said.
He added that the Thai event business was saturated, awaiting mega-events from overseas.
Challenged by these factors, leading event organisers are looking at doing business outside the Kingdom.
Sermkhun said the revenue contribution from his overseas businesses in Cambodia, Laos, Myanmar and Vietnam was very positive and supported CMO’s satisfactory financial results in the third quarter. CMO is also seeking new assignments from overseas and Thailand-based clients that have a presence there.
Index Creative Village and its partner Forever Group in Myanmar will also invest Bt200 million in the Myanmar Event Park on 20,000 square metres in the heart of Yangon’s business district. The venue will be built for MICE (meetings, incentives, conferences and exhibitions) events in that city, aiming to capitalise on increasing demand from overseas investors.
Under this project, Index Creative Village will manage and operate the new venue and earmark some budget for marketing and promotion for the venue.
