Booming MICE sector in Shanghai and Hainan
Q: How would you assess Shanghai and Hainan’s current MICE market?
Jürgen Sterkau: It’s evident — Shanghai’s MICE market is booming quickly since Shanghai continues to invest in infrastructure and centric meeting facilities. It has become increasingly attractive as a meeting destination. Shanghai is connected to the rest of China and the world, and its infrastructure is expanding. It also attracts even more tourism and MICE opportunities to the city. Meanwhile, the world’s largest exhibition center, the National Exhibition and Convention Center (Shanghai), will greatly improve our positioning to secure more MICE business and push demand for the Puxi area, in particular the Hongqiao area.
Ugur Talayhan: The MICE market in Shanghai is thriving, and certainly for Hainan it is one of the biggest feeder markets. With such a diverse range of industries and many headquarters being located there, the outlook looks very good indeed.
Q: Shanghai/Hainan is a hot MICE battlefield, so what makes your hotel competitive, and what makes it stand out? Are there any challenges you encounter in maintaining a long-term solid growth?
Jürgen Sterkau: Excellent location is the key benefit the hotel offers guests. JW Marriott Hotel Shanghai Changfeng Park is next door to the International Sourcing Center and the top hotel closest to the National Exhibition and Convention Center (Shanghai). The hotel is easily accessible, located just a 15-minute drive from the Hongqiao Integrated Transportation Hub, which houses the Hongqiao International Airport, Hongqiao Railway Station and Bus Station. Meanwhile, the hotel was rebranded to JW Marriott in 2015, which instills more confidence with international buyers and exhibitors.
From the standpoint of hardware, the JW Marriott Hotel Shanghai Changfeng Park is an ideal MICE hotel. It offers more than 1,500 square meters of multi-function event space featuring state-of-the-art technologies and facilities. Venues include a 770-square-meter grand ballroom and 13 individual function rooms equipped with wireless high-speed Internet access and an LED wall. The spacious guest rooms are equipped for business travelers with ergonomic chairs, high-speed Internet and a full-sized desk. In addition, the 31st floor executive lounge, boasting panoramic views of Changfeng Park, works quite well for informal business meetings.
Shanghai remains a very attractive and popular MICE destination. Obviously, the lack of talent has already become a challenge at the moment, not only the hospitality talents, but the meeting organizers. While competition is increasing within the Shanghai hotel industry, I believe many excellent opportunities remain, which improved the overall quality of MICE in the city.
Ugur Talayhan: Here in Hainan it is also a “hot battlefield” for MICE business with virtually all of the major hotel brands being represented. I would argue it is even more competitive than city destinations. Raffles Hainan is fortunate to be located in the very private setting of Clearwater Bay, which also boasts one of the finest beaches in China and only the third “singing” beach in the world. We are also ideally situated between a world-class golf course and one of the largest marinas in the country which gives companies more options for event ideas. In addition to a grand ballroom and seven individual meeting rooms, the resort also features 10 distinctive outdoor function venues for memorable functions and dining experiences. We are also close to some of the major scenic spots on the island, and there are numerous team-building possibilities both in the nearby area and within the 16 hectares of the resort itself.
Q: Are there any new projects your hotel will launch this year to attract business travelers and enlarge your share of the MICE market?
Jürgen Sterkau: First of all, Marriott launched two innovative new concepts for meetings. Meetings Imagined — a complementary meetings service app and website — gained a high profile as an engaging new concept inspiring MICE professionals with refreshing ideas for creative occasions of all sizes, highlighting Marriott as the number one choice for MICE events in China.
For the hotel side, the nearby International Sourcing Center and brand-new National Exhibition and Convention Center (Shanghai) offers high potential to grow MICE segment. Furthermore, its proximity to Hongqiao hub and easy access to the highway to Pudong International Airport and Hongqiao Railway Station offer advantage especially for domestic business travelers. Last but not least, it will open the first LEGOLAND Discovery Center at Parkside Plaza, Shanghai in the second quarter of 2016, which is just next door to our hotel. It will also bring more visitors and traffic, and consequently more business opportunities and revenue.
Ugur Talayhan: The resort is working on quite a number of different concepts and offerings. This year we are working much more closely with the Clearwater Bay marina next door in terms of catering to offer our clients the opportunity to hold meetings and functions on some of the largest luxury yachts in the world. We are also working on new dining and catering concepts with our culinary team, and our recreation team is introducing new content for teambuilding activities to fully utilize all of the beautiful and unique venues and facilities at the resort.
Q: Do you consider MICE business an important engine of future revenue or profit growth? How do you expect the overall MICE market in China to expand over the next couple of years and how do you anticipate it to impact your own business?
Jürgen Sterkau: MICE business is and always will be an important engine for this hotel’s growth and revenue. We can see the MICE revenue of our hotel has increased 30 percent on a year-over-year basis. Our strategies are definitely centered on MICE. That said, from the guest rooms to the expansive dining and meeting space options, everything at this hotel was designed with meeting planners in mind.
Shanghai is going to continue to develop in terms of infrastructure and facilities to become increasingly attractive as a meeting destination. Hongqiao area will be the main focus for MICE destination in Shanghai due to the two convention centers. We’re looking forward to bringing more large scale conventions to the city, which will benefit MICE business.
Ugur Talayhan: MICE business is of course extremely important for our resort and it will only get more and more competitive in Hainan and throughout the country with many big hotel brands scheduled to open in the coming months and years. I am pleased that we have developed a fantastic relationship with the MICE clients and organizers who have chosen Raffles Hainan in the past and I think that these relationships coupled with our growing reputation in the market for delivering successful and memorable events will hold us in good stead for the future.
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