Meeting, Incentive, Convention, and Exhibition (MICE) Industry:

Analysis & Investment O ortunities

!e artment o" Investment #ervices, Ministry o" Economic A""airs

$able o" Contents

I% &lobal $rends in MICE Industry !evelo ment%%%%%%%%%%%%%%'

(I) A 21st Century Goldmine..................................................................1 (II) The Pan-Asian MICE Industry Boom .............................................2

II% $he #tatus o" MICE Industry !evelo ment in $ai(an )

() Su ly ! "emand..........................................................................# (II) An Analysis o$ E%istin& Ga s in the Industry Su ly Chain' In(estment )i*hes' and Pros e*ti(e +orei&n In(estors........................................., (III) Ma-or Su liers in Tai.an............................................................1/ The M0EA .ants to e% and the domesti* e%hi1ition mar2et and romote the international status o$ the lo*al MICE industry throu&h the inte&ration o$ ri(ate in(estments and &o(ernment resour*es. They also .ish to esta1lish lo*al e%hi1ition and *on(ention *om anies that *an *om ete .ith e%istin& international $irms.................................................................1/ Many internationally-reno.ned e%hi1ition $irms ha(e su1sidiaries in Tai.an. Tai.anese e%hi1itors ha(e al.ays attended o(erseas e%hi1itions in the ast' 1ut .e no. ho e that said su1sidiaries .ill not only in(ite their (endors or 1uyers to (isit the island' 1ut also 1ene$it the lo*al e*onomy 1y in*reasin& em loyment o ortunities. Tai.anese PE0s *an *urrently 1e di(ided into three *ate&ories3e%hi1ition *om anies' asso*iations' and &o(ernment. TAIT4A' TEMA' Chan Chao E%hi1ition 5all' and )e. Era International In*. are all lo*al $irms in *har&e o$ ro$essional international e%hi1itions. ACE +orum' 6es E% o Co.' and 7ai&o are international e%hi1ition a&ents. 8nited "aily )e.s and Trans Ele*tri* Co. are res onsi1le $or domesti*-sales e%hi1itions........................................1/ In Tai.an' the $irst and lar&est ri(ate ro$essional e%hi1ition *om any is Chan Chao E%hi1ition. It not only holds $orei&n and domesti* international e%hi1itions and *on(entions' 1ut also u1lishes an industry ma&a9ine. In addition' they are res onsi1le $or romotin& .orld-reno.ned e%hi1itions and 1uildin& di&ital e%hi1itions (ia the Internet. The ne%t lar&est' TAIT4A' is an or&ani9ation under the M0EA that romotes Tai.anese MICE industry &ro.th 1y holdin& 2/- lus international e%hi1itions annually.1/

III% O timum Investment Items "or *oreign Investors%%%%%''

(I) In(estment Ad(anta&es...................................................................11 (II) In(estment )i*hes and 0 timal In(estment Items.........................1:

I+% #uccess"ul Exam les o" Cross,-order #trategic Alliances and *oreign Investment in $ai(an%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%'.
(I) 8ni lan (Germany)..........................................................................1; (II) Messe +ran2$urt (5.7.) <td. Tai.an................................................1;

+% Industry Investment Incentives%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%/0 +I% Industry,Academia Collaboration in $ai(an%%%%%%%%%%%%/)

I%

&lobal $rends in MICE Industry !evelo ment

The meeting, incentive, convention, and exhibition (MICE) industry a service industry combining trade, transportation, finance, and travelhas been active in Europe and America for over a century The MICE industry is characteri!ed by the Three "ighshigh gro#th potential, high added$values, and highly beneficial innovations% the Three &argeslarge output, large opportunities for employment, and large industry associations% and the Three Advantagesadvantage over other industries in human resources, technological 'no#$ho#, and the efficient utili!ation of assets Today, countries all over the #orld are putting their best foot for#ard to develop the MICE industry as a means to enliven national economic development

(I) A /'st Century &oldmine

1. $he MICE Industry is -ooming

International Congress ( Convention Association (ICCA) statistics sho#, that a total of )**,*** conferences and exhibitions are held #orld#ide every year at the total outlay of +,-./* billion The 0lobal Association of the Exhibition Industry (+1I) points out that as annual MICE industry output value has already reached +,-2 23 trillion (including +,-)** billion for conferences and +,-43* billion for exhibitions), MICE could be counted on to bring enormous economic benefit to the countries and cities that host them 2. Continuous Ex ansion o" MICE Industry +enues 1orld(ide

In its 5ctober .**4 report678orld Map of Exhibition 9enues:6+1I notes that in .**3, there #ere a total of 2,*3. exhibition halls around the #orld #ith indoor exhibition space exceeding ;,***m., meaning that there is approximately .4 3 million m. in total indoor space primarily located in Europe, <orth America, and Asia More specifically, exhibition halls in the + , , 0ermany, China, Italy, and 1rance assume ;/= of the #orld#ide capacity Total construction costs for .**4$.*2* is estimated at a minimum of +,-2/ 4 trillion for building and expansion >y .*2*, the #orld #ill have a total of 2,2*) exhibition halls #ith over ;,*** m . in indoor exhibition space, providing a combined total of approximately ?2 2 million m. in indoor exhibition space

Available *loor # ace in Indoor Exhibition 2alls 1orld(ide (/003 /0'0)

4egions 5o% o" Exhibition 2alls /003 <orth America Europe Asia 5ceania Middle East Africa &atin America ?;@ )3; 2.4 23 ?. .; ?/ /0'0 (*) ?4* )44 2)? 24 ?? .) )* &ro(th ?= ?= 2?= 3= ?= $)= ;= /003 42 2) ? ?@ *? *3 *; *@ Exhibition # ace (Million m/) /0'0(*) 44 23 . )3 *? *@ *3 *@ &ro(th /= 2?= .*= 3= ?/= 4= )=

,ourceA +1I% compiled for the present study, .**/B.

(II) $he 6an,Asian MICE Industry -oom

As nations around the #orld are optimistic about MICE industry development, exhibition space #ill continue to gro# in the years ahead This is particularly evident in Asia, #here exhibition space is expected to gro# to ) 3 million m. by .*2*6a .*= increase on .**3 +1I points out in its Cune .**4 report67The Trade 1air Industry in Asia $ ?rd Edition: 6that, spurred by the momentum of production relocation to Asia from the rest of the #orld, the Asian MICE industry made over +,-. ) billion in revenues in .**3 There #as a 4 3= gro#th in the Duantity of exhibitions and a 24 )= gro#th in available floor space China, "ong Eong, India, Tai#an, and Thailand demonstrated the most remar'able gro#th in both respects
Analysis o" International Exhibitions 2eld in Asia

Country

5o% o" Exhibitions 2eld /003 /00) ;3) )4? 2./ 2?@ ;3 ;4 ;/ ;. 3. ;. )2 ;3 24 2,4;;

$otal *loor # ace 7eased ( )

China Capan India ,outh Eorea "ong Eong Thailand Tai#an ,ingapore The Ghilippines Malaysia 9ietnam Indonesia Ga'istan Total

;/4 )4; 2;/ 2)* /. 3@ 3* ;@ ;@ ;4 ;3 ;) ?. 2,///

:ear,on, /003 /00) :ear,on, year year !i""erence !i""erence ) 2= ;,*/@,*** ),*3;,*** .; .= 4;@ / ?2 ;= * )= .,24),*** .,.4?,*** $) )= 3)/ 2 .3 @= .? )= ;.3,*** )3.,*** 2? @= 2./ ) ; ?= * 4= ;./,*** ;..,*** 2 2= 2?2 / ; ;= )3 )= 443,*** ;*2,*** ;) @= ?.? ) 2? )= .2 2= ?/2,*** .4),*** ?@ 2= 22* 4 ) 3= ? )= )2*,*** ?.@,*** .) 3= /; @ ? 3= 2? ;= .*.,*** 24;,*** 2; )= 3) * . 4= $) /= 22),*** 2.;,*** $/ /= 2/ 3 * /= @ 3= .)3,*** 233,*** )/ .= 4* @ . @= ?3 3= 2*@,*** 3.,*** 4; /= ./ ? 2 .= $? 3= 24*,*** 2@.,*** $22 ;= .; ; 2 2= // .= 3.,*** )2,*** ;2 .= 24 ? * 4= 4 3= 2*,4/4,*** @,2/4,*** 24 )= .,)2. 4 2**=

Antici ated 4evenues (8#9 Million) /003 ;

,ourceA +1I, >usiness ,trategies 0roup% compiled for the present study, .**/B.

In terms of international conventions, ICCA statistics sho# that there #ere a total of ;,/?/ international conventions held in .**3, ;;; more than in .**;% Asian countries are responsible for 24 )= of that total, notably ,ingapore and ,eoul, #hich ran'ed ?rd and 4th in the #orld in terms of the number of conventions held in .**3 There have been 2,*** international conventions held in Asia each year since .**) 8hile this is still a far cry from the ?,*** conventions annually held in Europe6the #orldFs largest MICE industry mar'et6Asia did outperform <orth America in this past decade, and a trend seems to be emerging, #hereby MICE industry activity is shifting from Europe and America into Asia

International Meeting 4an<ings by City (/003) 4an<ing 2 . ? ) ; 3 4 / @ 2*

,ourceA ICCA, .**4B3

City 9ienna Garis ,ingapore >arcelona >erlin >udapest ,eoul Grague Copenhagen &isbon

5o% o" Meetings 2)4 2?* 2.4 2*? @2 /3 /; /. 3@ 3@

>

II% $he #tatus o" MICE Industry !evelo ment in $ai(an

( ) #u ly & !emand
MICE industry development is an important index for evaluating regional prosperity and level of internationali!ation As an emerging globali!ed service industry, MICE is especially valued by national governments for its three highs6high gro#th potential, high added$value, and highly beneficial innovations% three larges6 large output, large opportunities for employment, and large industry associations% and three advantages6the advantage over other industries in human resources, technological 'no#$ho#, and the efficient utili!ation of assets Many cities are even utili!ing the MICE industry as a development strategy for the ne# era Tai#anFs MICE industry has been around for only a Duarter century, and is a much younger industry than its more mature counterparts in "ong Eong, Capan, and ,ingapore, though not #ithout its o#n competitive edge There is no disputing the fact that the MICE industry in Asia is currently experiencing a period of great expansion and gro#th, and regional competition has only Hust begun MICE employs an industry model based on service, emphasi!ing resource integration, #ith the obHective of developing satellite industries around its main focus 6that of meetings and exhibitions Every +,-2 spent on this industry #ill lead to +,-4$2* of peripheral economic benefits That is #hy the Tai#anese government has designated the MICE industry as an important service industry for development, and estimate that industry output value #ill reach +,- 2** million in .**/ In addition, Tai#an is striving to host more international exhibitions, pledging to double the amount of international exhibitions held on the island in .**/ and a 2*= increase in international visitors The government designated .**/ as an 7exhibiting activity year,: as the opening of the Taipei 8orld Trade Center <angang International Exhibition "all (T8TC <angang) in .**/ effectively increases the international competitiveness of the local industry The industry #ill see further resource integration during .**/, culminating in .**@Fs 7exhibition expansion year,: #hen the developmental focus #ill be on the expansion of industry depth and scope According to the +1I industry report, the Tai#an External Trade Ievelopment Council (TAITJA) is among the top 2* convention organi!ations in Asia, Hust behind the China 1oreign Trade 0uang!hou Exhibition Corporation, ,ingapore International Convention ( Exhibition Centre, and "ong Eong Trade Ievelopment Council In .**3, Tai#an ran'ed @th in the region for the number of international conventions held ()4), #hile Taipei ran'ed /th among all Asian cities #ith .@ international conventions
#

held ICCA statistics further indicate that in .**3, international conventions in Tai#an #ere Hoined by a total of ??,;/@ participants, #hich is a )3 4= increase on the ..,@*. participants in .**; ,tatistical data disclosed by Tai#anFs Tourism >ureau (T>J5C) indicates that of the ?,423,*3? total visitors to Tai#an, ;4,/** came for the purpose of attending meetings and conventions In the area of international exhibitions, +1IFs Cune .**4 data sho#s that Tai#an ran'ed 4 th in Asia for sponsoring a total of 3* international exhibitions in .**3 Tai#an also ran'ed 3th in Asia for the total area leased for exhibitions, #hich came to )2*,***m., or a .) 3= increase on .**; 8ith all these advantages in mind, it is imperative that Tai#an do more to develop uniDue local MICE industry features to increase overall global competitiveness for all domestic industries As of the end of .**4, there #ere a total of six exhibition halls in Tai#an for regular exhibitions, providing a total of ;/,.;)m. in available floor space The T8TC database also reveals that nearly 2** international exhititions are held annually at the T8TC exhibition halls in Taipei, its ?2*$day annual occupancy rate virtually unsurpassed In fact, T8TC exhibition halls are very often overboo'ed 5pened in March .**/, T8TC <angang is expected to alleviate this space problem The Tai#anese government has invested heavily in the MICE industry A total +,-3/* million #as invested into the construction of large$scale exhibition halls including the T8TC <angang, T8TC <angang expansion, and Eaohsiung Exhibition ( Convention Center +pon the completion of these proHects, Tai#an #ill advance from 4th to ;th$place in Asia in terms of the amount of available exhibition floor space, and from ?3th to ?.nd in the #orld in terms of the number of international conventions held
Exhibition 2alls in $ai(an by /0'/ (by *loor # ace and -ooths)
4egions Exhibition 2alls #ervice #ince: 2@/3 2@@@ .**? .**/ .*2? (1) 2@@@ .*** .**/ (1) Available *loor # ace (m.) ./,.?@ ;,;)? 4,)/2 ),;?3 )4,.;; ),.?; ),/;2 ),?** 5o% o" -ooths 2,;;) ??2 ?3; .,)3; .,3;* .?/ .;* ;**K2,***

<orthern Taipei 8orld Trade Center (T8TC) Tai#an Exhibition "all 2 Taipei ,ho# "all . (formerly T8TC Exhibition "all .) T8TC Exhibition "all ? T8TC <angang Exhibition "all T8TC <angang Exhibition "all . Taipei County Exhibiton "all Central Taichung 8orld Trade Center Tai#an Taichung International Conference ( Exhibition Center
:

,outhern Eaohsiung >usiness Exhibition Center .*** Tai#an Eaohsiung Exhibition ( Convention .*22 (1) Center ,ourceA Exhibition hall #ebsites% compiled for the present study, .**/B.

4,423 <BA

).. 2,;**

(II) An Analysis o" Existing &a s in the Industry #u ly Chain, Investment 5iches, and 6ros ective *oreign Investors
The MICE industry incorporates a #ide range of expertise that can be roughly divided into three categories, including exhibition facilities, organi!ers, and peripheral subcontractors Gutting an international exhibition together reDuires professionals from a variety of fields, and those professionals are lead by Grofessional Convention 5rgani!ers (GC5) and Grofessional Exhibition 5rgani!ers (GE5) The MICE industry incorporates a #ide range of services JeDuired hard#are includes onsite audiovisual eDuipment accomodating Internet connections, overhead proHection, exhibition design and decoration, stage design, audio construction, light efficiency, and simulataneous interpretation <on$facility$related services include exhibition arrangement, public relations, mar'eting, planning, advertising media, graphic design, tourism, insurance, and transportation
MICE Industry #u
Exhibition 2alls Convention +enues Taipei International Convention Center (TICC), Civil ,ervice Ievelopment Institute, <ational Tai#an +niversity "ospita l (<T+") International Convention Center, 0I, Convention Center, <ational Tai#an ,cience Education Center Exhibition Organi=ers 6ro"essional Convention Organi=ers (6CO) Elite, 0I,, E(A, AGI, 8I&&L, Intercon , IECMC , Jound Table, 8e Glan, International 6ro"essional Exhibitions International *oreign Exhibition Agents Organi=ers !omestic,sale Exhibitions 6ro"essional Exhibition Organi=ers (6EO)

ly Chains in $ai(an

Exhibition +enues Taipei 8orld Trade Center (T8TC) Exhibition "alls 2 ( ?, Taipei ,ho# "all ., T8TC <angang Exhibition "all, Taipei County Exhibiton "all, Taichung 8orld Trade Eaohsiung >usiness Exhibition Center Center,

Achieving Grofessional Conference 5rgani!er, TCM

TAITJA, Tai#an ACE 1orum, Textile 1ederation, TEEMA, Taipei Computer Association, TGCA, Taiepi >oo' 1air 1oundation, GIIA, Chan Chao Exhibition "all, <e# Era International Inc Chieh 1eng, 8E, Expo Co , EAI05, 0olden ,eal

CMG Asia, Messe 1ran'furt, ,EMI

Top &in', ECE, ET,, Chia Li International, Economic Iaily <e#s, +nited Iaily <e#, ttnet net, Trans Electric Co

6eri heral, Industry *irms

5otable 6ublic 4elations, !ecoration, 8tilities, and $rans ortation *irms> $ravel Agencies *oreign *irms +niplan, 5lily Exhibition Iesign, ,ta Translation 7ocal *irms The 0leaner Inc , "sing &i An, ,un Gro IntFl Travel ,ervice, China Economic <e#s ,ervice, ,,MC International Audio$ 9isual Co , Congress Jental, etc

,ourceA Compiled for the present study, .**/B.

The Tai#anese MICE industry has the advantage of having a number of venues that can accommodate events hosting under ;** participants, including the Taipei International Convention Center (TICC), 0I, Convention Center, T8TC exhibition halls, and Eaohsiung >usiness Exhibition Center In contrast, the gap in the industrial supply chain is limited space for exhibitions, a problem that the opening of the T8TC <angang #ill help to remedy The lo# floor space concentration remains an issue Compared #ith other Asian countries, #hich have /*,***$2**,***m. of concentrated available floor space, the local industry is lac'ing (T8TC exhibition halls have approx .3,***m., and T8TC <angang has approx );,***m.) ,econdly, of the nearly 2** professional and consumer exhibitions held at the T8TC each year, .* international sho#s are hosted by TAITJA6this inability of local GE5s to put on international exhibitions is another #ea' point in the industry The third gap is in international competitiveness 8hile other countries invest heavily to attract buyers to their domestic mar'ets, Tai#anese companies are spurred by the lac' of exhibition space on the island to participate in foreign exhibitions, as the scale of domestic exhibtions is limited 1ourthly, development is uneDual bet#een the northern and southern parts of the island Exhibiters li'e to Hoin exhibitions in Taipei because there is a lac' of proper exhibition space do#n south
;

As exhibitions in Tai#an begin to transform into a service$lead industry, the mar'et stands to profit from 'no#$ho# from European and American exhibition companies, as #ell as collaboration #ith government and associations for the immediate development of ne# sho#s As there are very fe# foreign compaies involved in the local mar'et, there is still a room for peripheral industries such as the public relations, interpretation, decoration, utilities, transportation, and travel agency industries to flourish alongside As for complimentary facilities, there is currently an insufficient number of hotel rooms and venues that can accommodate international meetings of over ;** The tourism and MICE industries can reap mutual benefits from the establishment of international convention centers and hotels in scenic locations In order to promote MICE industry competitiveness and trade collaborations bet#een Tai#an and Eorea, EI<TEM chairman Mr In$,hi' Eim signed a cooperation agreement #ith TAITJA in March .**/ EI<TEM is the biggest exhibition center in Eorea and a Hoint public and private venture 5pened in April .**;, EI<TEM resolved the lac' of exhibition space in ,eoul, and greatly enhanced the Eorean MICE industryFs level of internationali!ation Tai#an can learn from the experience of others to develop its o#n domestic MICE industry In addition, foreign firms CMG Asia, Messe 1ran'furt, and ,EMI have set up offices in Tai#an to recruit exhibitors for international exhibitions Gotential industry suppliers include +niplan and 5lily of 0ermany, and #ell as ,TAJ translation +niplan has an outstanding international reputation and )*$years of experience in display design and construction 5lily is expert at combining innovative construction and materials #ith exhibition design to create a practical aesthetic

(III) MaHor ,uppliers in Tai#an The M5EA #ants to expand the domestic exhibition mar'et and promote the international status of the local MICE industry through the integration of private investments and government resources They also #ish to establish local exhibition and convention companies that can compete #ith existing international firms Many internationally$reno#ned exhibition firms have subsidiaries in Tai#an Tai#anese exhibitors have al#ays attended overseas exhibitions in the past, but #e no# hope that said subsidiaries #ill not only invite their vendors or buyers to visit the island, but also benefit the local economy by increasing employment opportunities Tai#anese GE5s can currently be divided into three categories6exhibition companies, associations, and government TAITJA, TEMA, Chan Chao Exhibition "all, and <e# Era International Inc are all local firms in charge of professional international exhibitions ACE 1orum, 8es Expo Co , and Eaigo are international exhibition agents +nited Iaily <e#s and Trans Electric Co are responsible for domestic$sales exhibitions In Tai#an, the first and largest private professional exhibition company is Chan Chao Exhibition It not only holds foreign and domestic international exhibitions and conventions, but also publishes an industry maga!ine In addition, they are responsible for promoting #orld$reno#ned exhibitions and building digital exhibitions via the Internet The next largest, TAITJA, is an organi!ation under the M5EA that promotes Tai#anese MICE industry gro#th by holding .*$plus international exhibitions annually

1/

III% O timum Investment Items "or *oreign Investors

(I) Investment Advantages
?% @ey &overnment #u ort

In the area of mar'eting for international exhibition hosting rights, the government has spared no effort in upgrading high$potential exhibition halls In addition, the government offers generous subsidies to international exhibition organi!ers #ho sponsor exhibitions in Tai#an Iuring the .**;$.**4 period alone, the government dealt out approximately +,-. 3 million in subsidies to as many as .;* foreign exhibition organi!ers To date, the government has successfully #on hosting rights for many significant events, including the 8orld 0ames, Ieaflympic 0ames, 8A,>E, and IIA Taipei Congress, to be held in Tai#an

7arge,scale International Conventions and Events to be held in $ai(an (/00A,/0'/)

!uration .**@ *4 23$ .3 .**@ *@ *;$2; .**@ .*2* .*2* 22 *3$ .*22 *) .; .*22 .*22 .*22 .*22 .*22 .*2. 8orld >and Music Convention (8A,>E) Tai#an Crafts Expo IIA Taipei Congress The Asia and 5ceania 1ederation of 5bstetrics and 0ynaecology (A5150), MMII Congress 0lobal Circuit >oard Association Convention 1ederation of the International ,ocieties for Gediatric 0astroenterology, "epatology and <utrition (1I,G0"A<), I9 8orld Congress
,ourceA Compiled for the present study, .**/B.

Activity titles 8orld 0ames Ieaflympic 0ames The ? I8A$A,GIJE Conference ( Exhibition Asia Gacific 5rthopaedic Association (AG5A), M9I Congress Taipei Internationl 0ardening and "orticulture Exposition
rd

City Eaohsiung City Taipei City Taipei City Taipei City Taipei City Chiayi City +ndetermined Taipei City Taipei City Taipei City Taipei City

B% Ex ert $ai ei Exhibitions *eaturing International Com etitive 4dge

Than's to elaborate efforts on the part of TAITJA6a long$time sponsor of

11

international professional exhibitions, Tai#an currently hosts 2* globally competitive exhibitions, including Computex Taipei, the Taipei International Cycle ,ho#, and Taipei IntNl AutoBMotorcycle Garts ( Accessories ,ho#6ran'ed top three in the #orld in their categories% the Taipei International Electronics Autumn ,ho#, Taipei International Machine Tool ,ho#, and Taipei IntNl Glastics ( Jubber Industry ,ho#6 all ran'ed top three in Asia These MICE industry events translate into tremendous economic benefit for peripheral industries Ta'e the #orld$reno#ned Computex Taipei for instance ,ince its inception, Computex Taipei has expanded by leaps and bounds "eld at the T8TC <angang this year, it hosted 2,;** industry heavy#eights and lured over ?;,*** expert international buyers and many purchase orders to the island, greatly benefiting the local ICT industry

$en Com etitive 6ro"essional International Exhibitions in $ai ei

Exhibition 5o% o" -ooths Computex Taipei Taipei International Machine Tool ,ho# (TIMT5,) Taipei IntNl Auto Garts ( Accessories ,ho# (AMGA) (a Hoint exhibition #ith the Taipei International Automobile Electronics ,ho#) Taipei International Cycle ,ho# Taipei International Electronics Autumn ,ho# (Jenamed the 7Taipei International Electronics ,ho#: in .**/) Taipei IntNl Glastics ( Jubber Industry ,ho# ("eld every other year) Taipei International >oo' .,**@ (.**;) 2,/?2 Approx $$ 2 .,*./ (.**3) .,.). (.**3) 22,;/. $$ ? .,.@@ .,*;/ ?,@?@ ),2/; )2,42* 34,?2/ . $$ 2 2 .,?*2 ),.2) ?@,2@4 ? 2 .,@.3 .,44/ /00C 5o% o" *oreign -uyers ??,*.4 ),2/* 5o% o" 7ocal +isitors @3,3.) 42,2)* . 3 2 ? International 4an<ing &lobal Asia

12

Exhibition TGCA ,ho# Taipei IntNl 1ood ,ho# Taipei International ,porting 0oods ,ho#
,ourceA TAITJA, .**/B.

(Grofessionals) 2,32. 2,;/? 2,;3* .,@@. 2,@)?

?.*,*** .*,/.2 .@,*4) 22,?.? $$ $$ $$ . . .

)% 1orld 7eader in Industry Cluster !evelo ment

As the government puts forth its maximum effort for the promotion of the 7t#o innovations6technological innovation, brand innovation: and 7t#o highs6"igh technology$concentration, high added$value: strategies, Tai#anFs industry clusters #ill continue to gro# more competitive In both .**4 and .**/, Tai#an #as ran'ed <o 2 in the #orld by the 8orld Economic 1orum (8E1) in terms of industrial cluster development, ma'ing it a role model for the entire #orld In addition to brilliant performance in the hi$tech industry, Tai#an has also successfully developed local clusters of indigenous cultures, crafts, aesthetics, and other such conventional industries, including the digital contents and ceramic clusters in Taipei% the CI$J5Ms, automobile, and glass clusters in "sinchu% the bicycles, precision machinery and musical instrument clusters in Taichung% soc's and bicycle clusters at Changhua% and T1T$&CI, IC, and s#eaters clusters in Tainan In addition to remar'able exhibition halls, high$caliber human resources, and professional facilities, team#or' and development efforts from affiliated industries are also a 'ey to successful MICE industry development Tai#an has long been praise#orthy for its brilliant performance in the communications industry In other fields including machine tools, bicycles, auto parts, sporting goods, and plastic processing machinery ( eDuipment, Tai#anFs performance has been eDually remar'able To Tai#an, 7industry: has become an important tool for boosting the momentum of MICE industry gro#th

1=

DIndustryE 6rovidest Momentum to boost MICE Industry &ro(th in $ai(an

,ourceA TAITJA, .**/B.

3% Abundant 2uman 4esources "or the #ervice Industry

Tai#an is #ell$'no#n for its highly educated populace, turning out more than ;*,*** ne# masters degree and Gh I recipients each year, #hich is vital to its information ( communications, optoelectronics, semiconductors, and medical care industries that #in local hosting rights for numerous international conventions each year In order to facilitate MICE industry personnnel needs, the M5EA Iepartment of Commerce (I5C) has introduced the 7"igh$caliber ,ervice Grofessionals and Experts Accreditation GroHect: as a means to support the nurturing of such personnel In addition to providing education ( training programs for such professionals, the I5C has tried hard to match the right professionals to the right trades, giving MICE industry human resources the maximum level of upgrading and utili!ation
C% Abundant Cultural and $ourism 4esources

A survey conducted by the Tourism >ureau (T>J5C), Ministry of Transportation ( Communications (M5TC) aimed at foreign visitors to Tai#an sho#ed that 7fine
1>

foods,: 7scenic attractions,: and 7friendly people: are the 'ey to attracting foreign visitors <ight mar'ets, Taipei 2*2, and the <ational Galace Museum are rated as the islandFs foremost attractions 0overnment tourism policy implementation and tourism promotions are currently in full s#ing, and the total number of visitors to Tai#an is expected to reach five million in .**/
.% O timal 7ocation in AsiaFs $rans ortation 2ub

Tai#an is located at the hub of the East Asian and Gacific regions, #here all maHor cities in the Asia$Gacific Jegion can be reached by air in an average of . hours and ;; minutes Taipei has the advantage of close proximity to these maHor cities, and enHoys excellent access to both domestic and foreign destinations Lou can reach ;3 maHor cities #orld#ide through international routes, and domestic routes are operated by no less than three airlines In adddition, since service began on the Tai#an "igh ,peed Jail in .**4, inter$city travel has become extremely convenient, ma'ing a daily commute bet#een the northern capital of Taipei and the southern city of Eaohsiung possible

1#

(II)

Investment 5iches and O timal Investment Items

The race to grasp exhibition related eDuipment and facilities by leading Asian countries in recent years has lead to cutthroat industry competition 8hile Tai#anFs MICE industry has only existed for a Duarter century, it is the proud o#ner of such leading brand names as Computex Taipei, TIMT5,, AMGA, Taipei Cycle, Taitronics, and Taipei >oo' Exhibition (TI>E) In future, the government #ill continue to support the construction of ne# exhibition halls for an ever stronger MICE industry
O timal*oreign Investment O
,ourceA Compiled for the present study, .**/B.

ortunities

Categories 1acilities

MICE 5rgani!ers Geripheral 1irms

Investment Items Commercial >uilding Iesign International Convention Centers ,hopping Malls "otels Meeting ( Conference 5rgani!ers Exhibition 5rgani!ers Gublic Jelations Consultants Translation ,ervices Media Travel Agencies Transportation Industry Iecoration ( Iesign

In terms of hard#are, commercial building design, international convention centers, shopping malls, and hotels all ma'e good investments for foreigners Jiding the #ave of the industry boom, #e should be holding bigger exhibitions in better convention centers MICE industry success depends on both available facilities and expertise, and this ma'es both public facilities at hotels and mar'eting specialists important assets Taipei City currently lac's adeDuate hotel rooms (#ith approx 2.,*** hotel rooms in total) and venues to accommodate large$scale international conventions of over ;** The government is advised to boost constructions of international convention centers and #orld$class hotels #hile ta'ing advantage of local scenic charms so that the tourism and MICE industries #ill closely complement each other for their mutual benefit After #inning the 8orld Trade Centers Association (8TCA) >est Gractice title, the TICC is hoping to diversify their function from 7provider: to 7organi!er : 5f the nearly 2** professional and consumers$oriented exhibitions held each year at the T8TC, over .* international exhibitions are hosted by TAITJA, as private organi!ers
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in Tai#an tend to lac' the competence to sponsor international exhibitions As exhibitions in Tai#an are being gradually transformed into a service$oriented industry, the mar'et stands to profit from 'no#$ho# from European and American exhibition companies, as #ell as from collaboration #ith government or association for the immediate development of ne# exhibitions Geripheral industries are the real #inners #hen it comes to local exhibitions and conventions In addition to buyers and other visitors, international conventions bring in tic'ets and hotel sales, as #ell as consumer and professional 'no#ledge In terms of peripheral support industries, public relations consulting companies, translation firms, media, decoration, utility services, transportation, and travel agencies all ma'e for good investments At present, most Tai#anese enterprises fall into the small$and$ medium enterprises category and there are not many foreign enterprises involoved in the MICE industry As MICE in Tai#an is privy to many industry advantages, such as plentiful high$grade human resources and ithe islandFs location at the heart of the Asia$ Gacific region, peripheral industries are expected to thrive alongisde the MICE industry as it continues to strengthen In addition, Tai#anFs information and communications, electronic components, semiconductor, conventional machinery, and textile industries hold an immutable global position in their respective industries, and their infinite development potential, in combination #ith local tourism resources, ma'es for perfect conditions for foreign investment in the development of an international MICE industry

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I+% #uccess"ul Exam les o" Cross,-order #trategic Alliances and *oreign Investment in $ai(an
(I) 8ni lan (&ermany)
+niplan #as established in 0ermany in 2@3* "eadDuartered in Cologne, +niplan operates numerous branches in Garis (1rance), >asel (,#it!erland), >udapest ("ungary), ,hanghai, >eiHing, "ong Eong, and Taipei +niplan primarily offers expert services in planning exhibition and public relations events, exhibition display planning and design, visual image design, as #ell as museum planning and design In 2@/., the +niplan 0roup established +niplan Tai#an in Taipei In order to provide its clients #ith integrated mar'eting services, +niplan then established Intercon Convention Management and Indeed Mar'eting Communications to meet client needs for exhibition curators, brand planning, strategy analysis, innovative design, proHect management, and on$site services +niplan currently organi!es more than 2** exhibitions and conventions #orld#ide +niplan employs /* full$time professionals in Tai#an &ong$term clients include 'ey enterprises and government institutions such as 1ar EasTone Telecommunications, 0igabyte, E9A Air, China Motors 0roup (CMC), +nilever Tai#an, the T>J5C, Tai#an 9isitors Association, TAITJA, Tai#an Textile 1ederation, Tai#an Association of Machinery Industry (TAMI), and Taipei Electrical and Electronic ManufacturersF Association (TEEMA)

(II)

Messe *ran<"urt (2%@%) 7td% $ai(an

0ermany is the most successful country in the #orld in terms of MICE industry development, and Messe 1ran'furt &td , #ith a E+J)** million turnover in .**3, is the #orldFs second largest industry company after "anover$based Iuetsche Exhibition Corporation 5f the 24,***$plus exhibitors in 1ran'furt$based exhibitions in .**;, four of its ten top exhibitor$origin area are in Asia% among them, China ran'ed . nd, India and Tai#an ?rd, and "ong Eong /th A 'ey to Messe 1ran'furtFs continuous gro#th is the revenues earned by its overseas subsidiaries Messe 1ran'furtFs total turnover in Asia in .**3 #as approximately E+J;* million, #hich accounted for nearly half of its total overseas turnover Its brand names in Asia include Automechani'a, Ambiente, "eimtextil, Interstoff, I,", Techtextile, >eauty#orld, &ight O >uilding, Musi'messe, Grolight O ,ound, and Gaper#orld

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,ince its establishment in 2@@), Messe 1ran'furt (" E ) &td Tai#an has been responsible for attracting Tai#an$based firms to participate in European exhibitions In .**3, more than 2,*** Tai#anese companies participated in exhibitions in 1ran'furt

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+% Industry Investment Incentives

In vie# of its global development poential, the Executive Luan has designated the MICE industry as a focal point in the 7Challenge .**/ <ational Ievelopment Glan,: and approved the 7MICE Industry Ievelopment GroHect: on Culy /th, .**) The 7Executive Luan Tourism Ievelopment ( Gromotion Committee MICE Tas' 1orce: #as established in <ovember .**), and is currently #or'ing on integrating government resources As the supervisor of MICE industry development, the M5EA established the 7MICE Industry Ievelopment Gromotion Tas' 1orce: as a single service$#indo# to map out MICE industry operating mechanisms, nurture industry development, attract international MICE industry sho#s to the island, and elevate the international competitiveness of Tai#anFs MICE industry
&overnment 6olicies "or MICE Industry 6romotion
:ear%month .**. *; .**) *4 .**) 22 .**) 22 2ighlights The Executive Luan highlighted the MICE industry as a focus for its 7Challenge .**/ <ational Ievelopment GroHects : The Executive Luan approved the 7MICE Industry Ievelopment GroHect: as a 'ey proHect for national development, to be implemented during .**;K.**/ The 7Executive Luan Tourism Ievelopment ( Gromotion Committee MICE Tas' 1orce: #as established for the coordination and integration of agency resources As a part of the 70uidelines and Action GroHects for ,ervice Ievelopment,: the government made the 7 MICE Industry Ievelopment GroHect: a flagship proHect for tourism, sports, and recreational services .**3 *; A single service$#indo# #as established for the 7M5EA MICE Industry Ievelopment Gromotion Tas' 1orce: to establish MICE industry operating mechanisms .**4 K.**/ The M5EA plans approximately +,-2/ million in investments for MICE promotions and mar'eting An estimated ?*,*** local firms are expected to benefit from this plan, #hich #ill attract /**,*** visitors to domestic exhibitions and ..,*** foreign buyers to do business in Tai#an, thus creating a trade throughput of up to +,-2 3 billion, #ith +,-2.? million in fringe benefits for peripheral industries .**/K ,cheduled to begin construction in <ovember .**/, the Eaohsiung Exhibition ( Convention Center is expected to commence operation in .*22

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>uild up T8TC <angang as a second$generation exhibition facility

,ourceA 5rgani!ed for the present study, .**/B.

In a bid to facilitate the rapid development of the MICE industry, the Tai#anese government offers a variety of investment incentive measures, including tax incentives, J(I subsidies, lo#$interest loans, personnel training and meeting ( exhibition assistance, as #ell as flexible immigration entry mechanisms for participants, to assist MICE industry players and attract foreign investments

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&overnment Industrial Investment Incentives

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Item Tax ,tatute

6re"erence for Gromoting Garticipation in Gublic Construction

Contacts Grivate Gublic Construction Commission, Executive Luan httpABBppp pcc gov t#BpccPsite E$mailA botQpcc gov t# TelA O//3$(*).$/4/@$4;**

Jegulations 0overning Application of Grofit$see'ing Enterprise Income Tax

Taxation Agency, Ministry of finance, J 5 C

Exemption to Grivate Institutions httpABB### dot gov t# Garticipating in Gublic Construction E$mailA b*Qmail mof gov t# GroHects ,ubsidy Grinciples 0overning ,ubsidies for Meetings and Exhibitions "eld in Tai#an Commercial J(I Incentive ,cheme TelA O//3$(*).$.?../).2 MICE Grogram 5ffice, I5C httpABB### meettai#an com E$mailA mpoQmeettai#an t# TelA O//3$(*).$.?@.$*4//R2*3 Iepartment of Commerce, M5EA httpABBgcis nat gov t# E$mailA docmailQmoea gov t# TelA O//3$(*).$)2.$2233 Grinciples 0overning Trade Expansion >ureau of 1oreign Trade, M5EA ,ubsidies httpABBc#eb trade gov t# E$mailA boftQtrade gov t# TelA O//3$(*).$.?;2$*.42 Jegulations 0overning Tax Tourism >ureau, J 5 C (Tai#an) Ieductions for International Tourism httpABB### tai#an net t# Gromotions Jelated Investments by E$mailA tbrocQtbroc gov t# Tourism Industry 1irms in TelA O//3$(*).$.?)@$2;** ConHunction #ith 0overnment Golicy 0uidance Measures for International Tourism Gromotions and Mar'eting Efforts on the Gart of Grivate 5rgani!ations Enterprise and Grofit$see'ing

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Implementation International

Jules Convention

for Jesearch, Ievelopment and Jelated Evaluation Commission, Eaohsiung City 0overnment httpABBrdec 'cg gov t# E$mailA 'cgrdecQ'cg gov t# TelA O//3$(*)4$??2$?@).

Incentives in Eaohsiung City

Gersonnel Training

International Experts Jecruitment

Iepartment of Investment ,ervices, M5EA httpABBhirecruit nat gov t# E$mailA hirecruitQtaitra org t# TelA O//3$(*).$.?4*$@3/4

Military Training ,ervice Application

Military Training GroHect 5ffice httpABBrondi mnd gov t# E$mailmndsysQiii org t# TelO//3$.$.4?3$/*//R?)2)

J(I ,ubstitute ,ervice

J ( I ,ubstitute ,ervice Grogram 5ffice, Ministry of t he Interior httpABBrdss nca gov t# E$mailA rdssQmail nca gov t# TelA O//3$(*).$.4?3$3*33R.*3

Meeting Glan Meeting Entry Mechanism

and

Convention

,ervice Tai#an External Trade Ievelopment Council httpABBmice iti org t#

Gersonnel <urturing and Certification and Convention Grocedures

,ervice E$mailA stchengQtaitra org t# TelA O//3$(*).$.4.;;.**R.;4* the MICE Grogram 5ffice, I5C for

Grofessional Certification Exam 5perational

Mechanism Allo#ing 1lexible Entry httpABB### meettai#an com by 1oreign <ationals (Including GJC <ationals) Garticipating International Conventions in Tai#an E$mailA mpoQmeettai#an t# in TelA O//3$(*).$.?@.$*4//

,ourceA Compiled for the present study, .**4B2.

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Industry,Academia Collaboration in $ai(an

The M5EA planned to invest approximately +,-2/ million into MICE industry promotions and mar'eting in .**4 and .**/, #ith the aims to implement 2. related measure such as providing impetus for industry development in central and southern Tai#an, the nurturing and certification of meeting and exhibition professionals, as #ell as the stimulation of export trade gro#th to further elevate Tai#anFs international standing #ith reference to the MICE industry An estimated ?*,*** local firms are expected to benefit from this plan, #hich #ill attract some /**,*** visitors to domestic exhibitions and ..,*** foreign buyers to do business in Tai#an, thus creating a trade throughput of up to +,-2 3 billion, #ith +,-2.? million in fringe benefits for peripheral industries Tai#an is actively promoting MICE industry development through the integration of its government organi!ations, and corporate and industry associations
MICE Collaborating 6romotional Institutions in $ai(an
Institution Council for Economic Glanning and Ievelopment Iepartment of Commerce Iepartment of Investment ,ervices >ureau of 1oreign Trade Meeting Exhibitions Events Travel Tourism >ureau Jesearch, Ievelopment and Evaluation Commission, Eaohsiung City 0overnment Tai#an External Trade Ievelopment Council Taipei Exhibition ( Convention Association Tai#an Convention ( Exhibition Association I$&an International Convention ( Exhibitions Association Tainan Convention ( Exhibition Ievelopment Association Eaoshiung Convention ( Exhibition Association China Groductivity Center Tai#an Institute of Econonic Jesearch
,ourceA Compiled for the present study, .**4B2. 2#

1ebsite ### cepd gov t# gcis nat gov t# ### dois moea gov t# ### trade gov t# ### meettai#an com ### tai#an net t# rdec 'cg gov t# ### tai#antrade com t# ### texco org t# ### tai#anconvention org t# ### icea org t# ### tceda org t# ### 'cea org t# cpc t# ### tier org t#

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