Global MICE Industry to Grow in 2006 with Increases in all Major Indicators

The global meetings industry is expected to grow for a third consecutive year, signaling economic and corporate prosperity, as well as a financial boost for hotels, airlines and convention centers, according to FutureWatch 2006, an annual research report from Meeting Professionals International (MPI) and American Express.

According to FutureWatch 2006, several key indicators including the total number of meetings planned and expenditures per meeting/event are expected to increase in 2006.

Client-side planners (defined as corporate, association, government and non-profit planners) and intermediaries (defined as independent meeting planners, third-party planners, multi-management companies, destination management companies and association management companies) expect the number of meetings planned by their organizations to grow by seven percent and 21 percent over 2005, respectively.

Suppliers (defined as convention/conference centers, convention and visitors bureaus, hotels, resorts, meeting facilities, production companies, onsite meeting support) project a 10 percent increase in the number of meetings they´ll support. Planners, intermediaries and suppliers predict a seven percent, 14 percent and nine percent jump, respectively, in expenditures per meeting in 2006 compared to 2005.

Additionally, client-side planners expect to receive a larger share of their organizations´ budgets in 2006 than in 2005, with 42 percent predicting their budgets will grow as a percentage of their organizations´ total budgets. Only eight percent anticipate having a smaller proportion.

Expected changes in lead times, hotel rates and attrition and price concessions suggest that demand for meeting space and accommodations may outpace supply in 2006.

Meeting space lead time is projected to increase by 38 percent in 2006, from 29 weeks to 40 weeks on average. Meanwhile, lead time for hotel/support services is forecasted to jump 37 percent from 23 weeks to 31 weeks. Additionally, 76 percent of client-side planners and 81 percent of suppliers expect hotel rates to increase in 2006.

Finally, 31 percent of client-side planners, 28 percent of intermediaries and 24 percent of suppliers predict that concessions and flexibility will decrease in 2006.

While meetings are on the rise, international meetings travel is slowing, as U.S. and European planners project little change in the use of international meeting destinations, and Canadian planners expect a significant decline.