Business in Asia: Out From China's Shadow

China has been at the forefront of Asia's international exhibition industry — like so many other industries — but it's not the only game in the region.

Other Australasian countries are growing their tradeshow business by leaps and bounds as well.

But there can be too much of a good thing, in this case. Some cities simply don't have enough exhibit space to accommodate demand.

It's near impossible to book space in Sydney, which only has 292,780 square feet of exhibit space at its main center. Melbourne, the second largest city in Australia, has only a little more than 300,000 sq. ft. at its primary facilty.

Similarly, cities throughout Southeast Asia are struggling to attract more shows, while facing the challenge of working with small outdated facilities.

Tradeshow Week caught up with some smaller players to find out how they're addressing these issues.

• MALAYSIA

Cities Struggle for Room

Located between Thailand and Indonesia, Malaysia most likely doesn't pop into most people's minds as a thriving convention destination.

But, according to Jenny Salsbury, vice president of marketing and sales at the Kuala Lumpur Convention Centre, the country's ranked 23rd worldwide by the Intl. Congress and Convention Assn., with 91 meetings in 2006. The Malaysian city of Kuala Lumpur is ranked 15th, with 63 meetings, putting it ahead of Singapore, Seoul, Hong Kong and all Australian cities.

"These figures are impressive indeed, and I am delighted the city has done so well," said Peter Brokenshire, the center's general manager. He added that 17 of those meetings were international and represented 30 percent of the total meetings held in Kuala Lumpur — "no mean feat in our first year of operation."

In 2006, the nascent center hosted 430 events with 1.5 million people, including 24 conventions. The biggest convention to date was the XVII FIGO World Congress of Gynecology and Obstetrics (FIGO Congress), held Nov. 5–10, 2006, with 8,294 attendees.

Even though Malaysia's capital city built the KLCC to cover the influx of conventions, the facility still isn't big enough to accommodate most larger shows. It has just 9,710 square meters (104,480 square feet) of exhibit space.

This year, the Malaysian Intl. Furniture Fair spanned 75,000 sq. m. (807,293 sq. ft.) and had to be split up between the KLCC, the Putra World Trade Centre and the MATRADE Exhibition and Convention Centre in Kuala Lumpur.

"At this point in time, there isn't a single exhibition venue (in Malaysia) that is capable of (providing the) meeting and exhibition space size required by MIFF," said Michael Phoon, MIFF public relations and events manager.

Andrew Chan, CEO of Internasionale, a show management firm in Malaysia, looks 220 miles north of Kuala Lumpur to the Penang Intl. Sports Arena for space to hold his shows, but he too faces limitations. The company's consumer food show, iFOODex, spans 4,500 sq. m. (48,438 sq. ft.) "Our show grows at about 15 percent per year, although 4,500 sq. m. will be our maximum, as we are limited by our exhibition floor size," Chan added.

—By Rachel Wimberly

• VIETNAM

Small Market, Big Plans

Vietnam is an anomaly in an otherwise booming Asian tradeshow market: Its exhibition industry is small and, like many emerging markets, it faces a dearth of exhibition space.

The second edition of the Trade Fairs in Asia Report by Business Strategies Group and UFI — the Global Assn. of the Exhibition Industry estimated that Vietnam had 41 trade fairs totaling only 63,500 square meters (683,500 square feet) in 2005. According to Paul Woodward, BSG principal and manager of the UFI's Asia-Pacific office, Vietnam is one of the smallest markets in Asia in terms of trade fairs and has very few international-standard venue facilities.

But the potential for that to change, in an economy growing as quickly as Vietnam's, is strong. According to Ian Faux, dmg world media vice president, the country has advantages as both a regional market and a destination.

"The real challenge is to bring facilities and, more importantly, management expertise in line with neighboring countries like Thailand and Malaysia that already have long-established exhibition industries and event cultures," Faux said. "There is a great deal of potential in the market, but at present the infrastructure is insufficiently developed with a lack of venues, variable standards and a need for more expertise in local event management."

The Ho Chi Minh City Intl. Exhibition & Convention Centre offers 6,438 sq. m. (69,300 sq. ft.) of exhibit space. Construction crews recently broke ground on Ho Chi Minh City's Saigon Exhibition and Convention Centre, which will offer four indoor exhibit halls totaling 40,000 sq. m. (430,500 sq. ft.) and additional outdoor exhibition space of 15,000 to 20,000 sq. m. (161,400 to 215,000 sq. ft.). The first phase will be completed in October 2008.

There also are reports of a new venue planned for Hanoi, Woodward said, where exhibition options are now limited to an older 15,000 sq. m. (161,400 sq. ft.) building.

Trade fairs in Vietnam mainly focus on industrial machinery imports, Woodward added, and the country's strongest export commodities, textiles and food products. According to Faux, there are around 30 shows every year with significant international participation, some smaller events that are difficult to track and a handful of consumer shows, mainly for fashion and cosmetics.

The government-owned Intl. Exhibition Co. organizes most shows in Vietnam, but some international organizers, mainly from other Asian countries, have begun to enter the market. Examples are Singapore Exhibition Services and Chan Chao from Taiwan. VCCI Expo, the exhibition organizing arm of the Vietnam Chamber of Commerce & Industry, has branches in Hanoi and Ho Chi Minh City (Saigon) and partners with such foreign organizers as Singapore Exhibition Services.

Another key organizer is the Vietnam Trade Fair & Advertising Natl. Co., a government-owned advertising and marketing agency that is also responsible for 25 or more Vietnamese pavilions at overseas trade fairs each year.

But others are making inroads. Dmg world media held the Asia Coatings Congress in 2003, 2005 and March 28–29 this year at the Equatorial Hotel in Ho Chi Minh City. Nov. 20–23 in Hanoi there will be an international trade fair for construction machinery and materials, Con-Build Vietnam, organized by Munich Intl. Trade Fairs Asia, the Vietnam Natl. Convention Centre and the Korea Intl. Exhibition Center.

—By Gary Tufel

• INDONESIA

The Islands Are Calling You

Like the song about Bali Hai in the musical "South Pacific," the mention of Indonesian cities like Bali and Jakarta conjures up perhaps the most exotic images of any Asian city in the minds of Westerners.

Today, besides being an alluring tourist destination, Indonesia is also a hub for international business — including tradeshow business.

According to the Economist's country briefing, Indonesia's 2006 population was 245.5 million. Its gross domestic product, equivalent to $364.5 million, grew at an average 1.8 percent from 2002 to 2006.

"We have been keenly interested in Indonesia and have made attempts over the past few years to get something started," said John Gallagher, senior vice president of E.J. Krause & Associates, which produces tradeshows throughout the world.

Although the firm hasn't yet officially launched anything in Indonesia, Gallagher noted that it does have events serving China's and Russia's pulp, paper and forestry industries. Coincidentally, Indonesia is one of Asia's largest producers of pulp and wood fiber, and, Gallagher added, "China is one of their main customers."

He said EJK also has been looking into the telecom market in Indonesia, and cited U.S. Department of Commerce statistics indicating it's one of Asia's fastest growing economies.

The country certainly has no shortage of facilities:

• Bali Intl. Convention Center offers nearly 83,000 square feet of exhibit and 36,000 sq. ft. of meeting space;
• Balai Sidang Jakarta Convention Center has more than 337,000 sq. ft. of exhibit and 218,000 sq. ft. of meeting space; and
• Jakarta Intl. Expo, in the Kemayoran area of Jakarta, boasts a 194,000-plus sq. ft. exhibit hall, along with a trade mart and meeting facility.

—By Heidi Genoist