MPI Survey Reports Bigger Budgets

Staff -- Tradeshow Week, 1/24/2005

For the second consecutive year, the meetings industry will see increases in spending, international travel, employment and training budgets, according to FutureWatch 2005, a comparative study of meeting planner and supplier perspectives worldwide.

According to the study, conducted annually by Meeting Professionals Intl. and American Express, spending by meeting planners and suppliers will increase in 2005 by 2 percent while revenue will increase by 3 percent.

Although corporate budgets are still in recovery, budgets for consultants and independent planners continue to dominate the marketplace, according to FutureWatch, now in its third year.

The overall survey results mirror that of global business in general, said Colin Rorrie Jr., president and CEO of MPI. "Increased meeting spend is fuel for a worldwide economic engine."

The findings also rule out predictions of face-to-face meetings' demise due to technology or economic challenges, Rorrie said.

However, Rorrie warns, "Business is picking up and budgets are expanding, but the meetings industry will not return to business as usual. The 'do more with less' mantra and shortened lead times adopted during a tight economic market are now standard operating procedure."

The findings signal that attrition concerns dropped among respondents — a 14-percent decrease among planners and 7 percent by suppliers. Also, suppliers plan to invest in both Web site enhancements (85 percent) and wireless technologies (67 percent).

Non-U.S.-based meeting planners are expected to introduce more U.S. events in 2005. From Europe, outbound meetings will increase to 28 percent of all planned meetings in 2005, compared to 17 percent in 2004. From Canada, 29 percent of meetings will be international in 2005 versus 23 percent in 2004.

The 2005 MPI World Education Congress will take place July 10–12 at the Miami Beach Convention Center.