Page 160 - Annual Report Design 2017

017
MICE INDUSTRY IN 2017
World Economic Outlook 2017
Recently, the world has become globalized. If a country has made a domestic adjustment, it might affect trading partner countries or allied countries. Similarly, MICE industry is linked globally and usually receives impacts in terms of economic, social, political, and environmental factors. This has significant effects to organizer of meetings, exhibitions, and conferences in a decision to hold an event which can be divided into 4 factor.
01. Economic Effect
The report on global economic trend in 2017 revealed that the economy will grow 3.3% from 3.1% in 2016, according to US’s economic growth, including economic growth of Euro zone, Japan, India, and other crucial countries. Meanwhile, China’s economy has been slowed down. Despite world economic growth, it increases commodity prices worldwide. Deflation has been decreased continuously, and the Federal Reserve System tends to raise interest rates constantly which induce USD to appreciate comparing to other currencies although other central banks are trying to keep interest rates stable. This would boost interest rates in world market in the future.
However, world economic recovery and capital
formation are still fluctuating following the US’s policy.
03. Social Effect
At present, the ongoing trends of world culture and local culture are blending together. Globalization is a crucial part in connecting economics and social in each country. Rapid development in communication induces business to have a capability of information technology.Also, MICE industryhastobemore competitiveinorder todeal withorganizers and MICE travellers to provide better and faster services, including an impressive experience of the events.
02. Political Effect
Politically, many of the unavoidable factors are caused by the EU which will have an election in 3 countries i.e. France, Germany, and Netherlands. Another factor is the UK starting to use law of Article 50 to gradually separate from the EU. These issues will certainly affect world economic and might fluctuate financial markets in many countries.
An Awareness of world’s climate changing and natural disaster that have become more intense. At United Nations General Assembly on September 2015, the conference attendees were from around 193 countries. The meeting contained the topic of sustainablegrowth.Thetargetistogeneraterevenue fromMICEtravellersandnumberofevents,services, and hotel. Another target is to create a sustainable production and consumption pattern, namely revenue while ensuring that MICE industry is both strong and sustainable, matching, trading, investments, knowledge transfers, and new innovations that will comply with Thailand 4.0.
04. Environmental Effect