13 MICE Industry

8/13/2019 13 MICE Industry

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Meeting, Incentive, Convention,and Exhibition (MICE)

Industry:

Analysis & InvestmentO ortunities

!e artment o" Investment #ervices,

Ministry o" Economic A""airs


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$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%hi ition mar et and romote

the international status o$ the lo*al MICE industry throu&h the inte&rationo$ ri ate in estments and &o ernment resour*es. They also ish toesta lish lo*al e%hi ition and *on ention *om anies that *an *om ete ithe%istin& international $irms.................................................................1/

Many internationally-reno ned e%hi ition $irms ha e su sidiaries inTai an. Tai anese e%hi itors ha e al ays attended o erseas e%hi itionsin the ast' ut e no ho e that said su sidiaries ill not only in ite their

endors or uyers to isit the island' ut also ene$it the lo*al e*onomy yin*reasin& em loyment o ortunities. Tai anese PE0s *an *urrently edi ided into three *ate&ories3e%hi ition *om anies' asso*iations' and&o ernment. TAIT4A' TEMA' Chan Chao E%hi ition 5all' and e EraInternational In*. are all lo*al $irms in *har&e o$ ro$essional internationale%hi itions. ACE +orum' 6es E% o Co.' and 7ai&o are international

e%hi ition a&ents. 8nited "aily e s and Trans Ele*tri* Co. areres onsi le $or domesti*-sales e%hi itions........................................1/

In Tai an' the $irst and lar&est ri ate ro$essional e%hi ition *om any isChan Chao E%hi ition. It not only holds $orei&n and domesti* internationale%hi itions and *on entions' ut also u lishes an industry ma&a9ine. Inaddition' they are res onsi le $or romotin& orld-reno ned e%hi itionsand uildin& di&ital e%hi itions ia the Internet. The ne%t lar&est' TAIT4A'is an or&ani9ation under the M0EA that romotes Tai anese MICE

industry &ro th y holdin& 2/- lus international e%hi itions annually.1/


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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 +ran $urt (5.7.)


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I% lobal $rends in MICE Industry !evelo ment

The meeting, incentive, convention, and exhibition (MICE) industry a serviceindustry combining trade, transportation, finance, and travel has been active in

Europe and America for over a century The MICE industry is characteri!ed by the Three "ighs high gro#th potential, high added$values, and highly beneficialinnovations % the Three &arges large output, large opportunities for employment,and large industry associations % and the Three Advantages advantage over otherindustries in human resources, technological 'no#$ho#, and the efficient utili!ation ofassets Today, countries all over the #orld are putting their best foot for#ard todevelop the MICE industry as a means to enliven national economic development

(I) A /'st

Century oldmine1. $he MICE Industry is -ooming

International Congress Convention Association (ICCA) statistics sho#, that atotal of **,*** conferences and exhibitions are held #orld#ide every year at the totaloutlay of + -./* billion The 0lobal Association of the Exhibition Industry (+1I)

points out that as annual MICE industry output value has already reached + -2 23trillion (including + - ** billion for conferences and + -43* billion for exhibitions),MICE could be counted on to bring enormous economic benefit to the countries andcities 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 thatin .**3, there #ere a total of 2,*3. exhibition halls around the #orld #ith indoorexhibition space exceeding ;,***m . , meaning that there is approximately .4 3 millionm . in total indoor space primarily located in Europe, y .*2*, the #orld #illhave 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 exhibitionspace

1


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

4egions 5o% o" Exhibition 2alls Exhibition # ace

(Million m / )

/003 /0'0 (*) ro th /003 /0'0(*) ro th


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

In terms of international conventions, ICCA statistics sho# that there #ere a totalof ;,/?/ international conventions held in .**3, ;;; more than in .**;% Asiancountries 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 .**3There 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


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International Meeting 4an


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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 serviceindustry, MICE is especially valued by national governments for its three highs6highgro#th potential, high added$value, and highly beneficial innovations% three larges6 large output, large opportunities for employment, and large industry associations% andthree advantages6the advantage over other industries in human resources,technological 'no#$ho#, and the efficient utili!ation of assets Many cities are evenutili!ing the MICE industry as a development strategy for the ne# era Tai#anFs MICEindustry has been around for only a Duarter century, and is a much younger industrythan its more mature counterparts in "ong ong, apan, and ingapore, though not#ithout its o#n competitive edge There is no disputing the fact that the MICEindustry in Asia is currently experiencing a period of great expansion and gro#th, andregional competition has only Hust begun

MICE employs an industry model based on service, emphasi!ing resourceintegration, #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 hasdesignated the MICE industry as an important service industry for development, andestimate that industry output value #ill reach + - 2** million in .**/ In addition,Tai#an is striving to host more international exhibitions, pledging to double theamount of international exhibitions held on the island in .**/ and a 2*= increase ininternational visitors The government designated .**/ as an 7exhibiting activityyear,: as the opening of the Taipei 8orld Trade Center


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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 ofattending meetings and conventions In the area of international exhibitions, +1IFsune .**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 3 th in Asia for the total arealeased for exhibitions, #hich came to 2*,*** m . , or a . 3= increase on .**; 8ithall these advantages in mind, it is imperative that Tai#an do more to develop uniDuelocal MICE industry features to increase overall global competitiveness for alldomestic industries

As of the end of .**4, there #ere a total of six exhibition halls in Tai#an forregular exhibitions, providing a total of ;/,.; m . in available floor space The T8TCdatabase also reveals that nearly 2** international exhititions are held annually at theT8TC exhibition halls in Taipei, its ?2*$day annual occupancy rate virtuallyunsurpassed In fact, T8TC exhibition halls are very often overboo'ed 5pened inMarch .**/, T8TC


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outhernTai#an

aohsiung >usiness Exhibition Center .*** 4,423 ..aohsiung Exhibition Convention

Center .*22 (1)


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Achieving Grofessional

Conference 5rgani!er, TCM

TAITJA, Tai#an

Textile

1ederation,

TEEMA, Taipei

Computer

Association,

TGCA, Taiepi

>oo' 1air

1oundation,

GI A, Chan

Chao Exhibition

"all,


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As exhibitions in Tai#an begin to transform into a service$lead industry, themar'et stands to profit from 'no#$ho# from European and American exhibitioncompanies, as #ell as collaboration #ith government and associations for the

immediate development of ne# sho#s As there are very fe# foreign compaiesinvolved in the local mar'et, there is still a room for peripheral industries such as the public relations, interpretation, decoration, utilities, transportation, and travel agencyindustries to flourish alongside As for complimentary facilities, there is currently aninsufficient number of hotel rooms and venues that can accommodate internationalmeetings of over ;** The tourism and MICE industries can reap mutual benefits fromthe 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 orea, I


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(III) MaHor uppliers in Tai#an

The M5EA #ants to expand the domestic exhibition mar'et and promote theinternational status of the local MICE industry through the integration of private

investments and government resources They also #ish to establish local exhibitionand convention companies that can compete #ith existing international firms

Many internationally$reno#ned exhibition firms have subsidiaries in Tai#anTai#anese exhibitors have al#ays attended overseas exhibitions in the past, but #eno# hope that said subsidiaries #ill not only invite their vendors or buyers to visit theisland, but also benefit the local economy by increasing employment opportunitiesTai#anese GE5s can currently be divided into three categories6exhibition

companies, associations, and government TAITJA, TEMA, Chan Chao Exhibition"all, and


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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, thegovernment has spared no effort in upgrading high$potential exhibition halls Inaddition, the government offers generous subsidies to international exhibitionorgani!ers #ho sponsor exhibitions in Tai#an uring the .**;$.**4 period alone, thegovernment dealt out approximately + -. 3 million in subsidies to as many as .;*foreign exhibition organi!ers To date, the government has successfully #on hostingrights for many significant events, including the 8orld 0ames, eaflympic 0ames,

8A >E, and I A Taipei Congress, to be held in Tai#an

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

!uration Activity titles City

.**@ *4 23$ .3 8orld 0ames aohsiung City

.**@ *@ *;$2; eaflympic 0ames Taipei City

.**@ The ? rd I8A$A GIJE Conference Exhibition Taipei City

.*2* Asia Gacific 5rthopaedic Association (AG5A), 9I Congress Taipei City

.*2* 22 *3$

.*22 * .;

Taipei Internationl 0ardening and "orticulture Exposition Taipei City

.*22 8orld >and Music Convention (8A >E) Chiayi City

.*22 Tai#an Crafts Expo +ndetermined

.*22 I A Taipei Congress Taipei City

.*22 The Asia and 5ceania 1ederation of 5bstetrics and

0ynaecology (A5150), II Congress

Taipei City

.*22 0lobal Circuit >oard Association Convention Taipei City

.*2. 1ederation of the International ocieties for Gediatric

0astroenterology, "epatology and


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international professional exhibitions, Tai#an currently hosts 2* globally competitiveexhibitions, including Computex Taipei, the Taipei International Cycle ho#, andTaipei IntNl AutoBMotorcycle Garts Accessories ho#6ran'ed top three in the #orld

in their categories% the Taipei International Electronics Autumn ho#, TaipeiInternational Machine Tool ho#, and Taipei IntNl Glastics Jubber Industry ho#6 all ran'ed top three in Asia These MICE industry events translate into tremendouseconomic 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


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Exhibition (Grofessionals) ?.*,***

TGCA ho# 2,32. .*,/.2 $$ .

Taipei IntNl 1ood ho# 2,;/? .,@@. .@,*4 $$ .

Taipei International porting 0oodsho#

2,;3* 2,@ ? 22,?.? $$ .

ource TAITJA, .**/B.

% 1orld 7eader in Industry Cluster !evelo ment

As the government puts forth its maximum effort for the promotion of the 7t#oinnovations6technological innovation, brand innovation: and 7t#o highs6"ightechnology$concentration, high added$value: strategies, Tai#anFs industry clusters #illcontinue to gro# more competitive In both .**4 and .**/, Tai#an #as ran'ed


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DIndustry 6rovidest Momentum to boost MICE Industry ro th in $ai an

ource 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 recipients each year, #hich is vital to itsinformation communications, optoelectronics, semiconductors, and medical careindustries that #in local hosting rights for numerous international conventions eachyear In order to facilitate MICE industry personnnel needs, the M5EA epartment of

Commerce ( 5C) has introduced the 7"igh$caliber ervice Grofessionals and ExpertsAccreditation GroHect: as a means to support the nurturing of such personnel Inaddition to providing education training programs for such professionals, the 5Chas tried hard to match the right professionals to the right trades, giving MICEindustry human resources the maximum level of upgrading and utili!ation

% 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>


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foods,: 7scenic attractions,: and 7friendly people: are the 'ey to attracting foreignvisitors


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(II) Investment 5iches and O timal Investment Items

The race to grasp exhibition related eDuipment and facilities by leading Asiancountries 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 suchleading brand names as Computex Taipei, TIMT5 , AMGA, Taipei Cycle, Taitronics,and Taipei >oo' Exhibition (TI>E) In future, the government #ill continue to supportthe construction of ne# exhibition halls for an ever stronger MICE industry

O timal*oreign Investment O ortunities

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

In terms of hard#are, commercial building design, international conventioncenters, shopping malls, and hotels all ma'e good investments for foreigners Jidingthe #ave of the industry boom, #e should be holding bigger exhibitions in betterconvention centers MICE industry success depends on both available facilities andexpertise, and this ma'es both public facilities at hotels and mar'eting specialistsimportant assets Taipei City currently lac's adeDuate hotel rooms (#ith approx

2.,*** hotel rooms in total) and venues to accommodate large$scale internationalconventions of over ;** The government is advised to boost constructions ofinternational convention centers and #orld$class hotels #hile ta'ing advantage of localscenic charms so that the tourism and MICE industries #ill closely complement eachother 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 thenearly 2** professional and consumers$oriented exhibitions held each year at theT8TC, over .* international exhibitions are hosted by TAITJA, as private organi!ers

Categories Investment Items1acilities Commercial >uilding esign

International Convention Centershopping Malls

"otelsMICE 5rgani!ers Meeting Conference 5rgani!ers

Exhibition 5rgani!ersGeripheral 1irms Gublic Jelations Consultants

Translation ervicesMediaTravel Agencies

Transportation Industryecoration esign

1:


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in Tai#an tend to lac' the competence to sponsor international exhibitions Asexhibitions 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 theimmediate development of ne# exhibitions

Geripheral industries are the real #inners #hen it comes to local exhibitions andconventions In addition to buyers and other visitors, international conventions bring intic'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 forgood investments At present, most Tai#anese enterprises fall into the small$and$medium enterprises category and there are not many foreign enterprises involoved inthe 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 MICEindustry as it continues to strengthen In addition, Tai#anFs information andcommunications, electronic components, semiconductor, conventional machinery, andtextile industries hold an immutable global position in their respective industries, andtheir infinite development potential, in combination #ith local tourism resources,

ma'es for perfect conditions for foreign investment in the development of aninternational MICE industry

1,


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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, +niplanoperates numerous branches in Garis (1rance), >asel ( #it!erland), >udapest("ungary), hanghai, >eiHing, "ong ong, and Taipei +niplan primarily offers expertservices in planning exhibition and public relations events, exhibition display planningand 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 establishedIntercon Convention Management and Indeed Mar'eting Communications to meetclient needs for exhibition curators, brand planning, strategy analysis, innovativedesign, proHect management, and on$site services +niplan currently organi!es morethan 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 Associationof Machinery Industry (TAMI), and Taipei Electrical and Electronic ManufacturersFAssociation (TEEMA)

(II) Messe *ran


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ince its establishment in 2@@ , Messe 1ran'furt (" ) &td Tai#an has beenresponsible 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

1?


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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 .**/


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>uild up T8TC


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&overnment Industrial Investment Incentives

22
http://www.taiwan.net.tw/


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Item 6re"erence Contacts

Tax tatute for Gromoting Grivate

Garticipation in Gublic Construction

Gublic Construction Commission,

Executive Luan

http BBppp pcc gov t#BpccPsiteE$mail botQpcc gov t#

Tel O//3$(*).$/4/@$4;**

Jegulations 0overning Application of

Grofit$see'ing Enterprise Income Tax

Exemption to Grivate Institutions

Garticipating in Gublic Construction

GroHects

Taxation Agency, Ministry of

finance, J 5 C

http BB### dot gov t#

E$mail b*Qmail mof gov t#

Tel O//3$(*).$.?../ .2

ubsidy Grinciples 0overning ubsidies for

Meetings and Exhibitions "eld in

Tai#an

MICE Grogram 5ffice, 5C

http BB### meettai#an com

E$mail mpoQmeettai#an t#

Tel O//3$(*).$.?@.$*4//R2*3

Commercial J Incentive cheme epartment of Commerce, M5EA

http BBgcis nat gov t#

E$mail docmailQmoea gov t#

Tel O//3$(*).$ 2.$2233

Grinciples 0overning Trade Expansion

ubsidies

>ureau of 1oreign Trade, M5EA

http BBc#eb trade gov t#

E$mail boftQtrade gov t#

Tel O//3$(*).$.?;2$*.42

Jegulations 0overning Tax

eductions for International Tourism

Gromotions Jelated Investments by

Tourism Industry 1irms in

ConHunction #ith 0overnment Golicy

0uidance Measures for InternationalTourism Gromotions and Mar'eting

Efforts on the Gart of Grivate

5rgani!ations and Grofit$see'ing

Enterprise

Tourism >ureau, J 5 C (Tai#an)

http BB ### tai#an net t#

E$mail tbrocQtbroc gov t#

Tel O//3$(*).$.? @$2;**

2=
http://ppp.pcc.gov.tw/pcc_sitemailto:[email protected]:[email protected]://www.dot.gov.tw/mailto:[email protected]:[email protected]://www.meettaiwan.com/mailto:[email protected]://gcis.nat.gov.tw/mailto:[email protected]:[email protected]://cweb.trade.gov.tw/mailto:[email protected]:[email protected]:[email protected]:[email protected]://ppp.pcc.gov.tw/pcc_sitemailto:[email protected]://www.dot.gov.tw/mailto:[email protected]://www.meettaiwan.com/mailto:[email protected]://gcis.nat.gov.tw/mailto:[email protected]://cweb.trade.gov.tw/mailto:[email protected]:[email protected]


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Implementation Jules for

International Convention Jelated

Incentives in aohsiung City

Jesearch, evelopment and

Evaluation Commission,

aohsiung City 0overnment

http BBrdec 'cg gov t#

E$mail 'cgrdecQ'cg gov t#

Tel O//3$(*)4$??2$?@ .

Gersonnel

Training

International Experts Jecruitment epartment of Investment

ervices, M5EA

http BBhirecruit nat gov t#

E$mail hirecruitQtaitra org t#

Tel O//3$(*).$.?4*$@3/4

Military Training ervice Application Military Training GroHect 5ffice

http BBrondi mnd gov t#

E$mail mndsysQiii org t#

Tel O//3$.$.4?3$/*//R? 2

J ubstitute ervice J ubstitute ervice Grogram

5ffice, Ministry of t he Interior

http BBrdss nca gov t#

E$mail rdssQmail nca gov t#

Tel O//3$(*).$.4?3$3*33R.*3

Meeting and Convention ervice

Gersonnel


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+I% 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 implement2. related measure such as providing impetus for industry development in centraland southern Tai#an, the nurturing and certification of meeting and exhibition

professionals, as #ell as the stimulation of export trade gro#th to further elevateTai#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 inTai#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 theintegration of its government organi!ations, and corporate and industryassociations

MICE Collaborating 6romotional Institutions in $ai(an

Institution 1ebsite

Council for Economic Glanning and evelopment ### cepd gov t#

epartment of Commerce gcis nat gov t#

epartment of Investment ervices ### dois moea gov t#

>ureau of 1oreign Trade ### trade gov t#

Meeting Exhibitions Events Travel ### meettai#an com

Tourism >ureau ### tai#an net t#

Jesearch, evelopment and Evaluation Commission,

aohsiung City 0overnment

rdec 'cg gov t#

Tai#an External Trade evelopment Council ### tai#antrade com t#

Taipei Exhibition ( Convention Association ### texco org t#

Tai#an Convention ( Exhibition Association ### tai#anconvention org t#

I$&an International Convention ( Exhibitions Association ### icea org t#

Tainan Convention ( Exhibition evelopment Association ### tceda org t#

aoshiung Convention ( Exhibition Association ### 'cea org t#

China Groductivity Center cpc t#

Tai#an Institute of Econonic Jesearch ### tier org t#

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

2#


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13 MICE Industry

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