Benefits of the Conference and Exhibition Industry to the Society - Assignment Example

Benefits of the conference and exhibition industry to the society Name Course Tutor Date Introduction Conference and exhibition industry is an industry that involves in organizing business events where training, displaying and marketing of goods and services are done. It is a young industry that has taken its momentum in the twentieth century and has proved to have many benefits to the economy of many countries. The main purpose of this industry is to provide an opportunity for the potential consumers to interact with their service providers i.e. Manufacturers, sellers, and experts and learn more about the available products on the market. Sometimes this industry is referred to as the meetings, incentives, convention and exhibition (MICE) industry. It combines trade transportation travel and finance services. The conference and exhibition industry has been in existence in America and Europe for more than a century now. However, currently many nations all over the world have taken the initiative of developing this industry as a way of elevating their social and economic development. Statistics from the international congress and convention association (ICCA) reveal that OVER 400,000 exhibition conferences are held worldwide with a total outlay of $280 billion (nat.gov.tw, 2007: 1). On the other hand, the global association of the exhibition industry (UFI) show that annual MICE industry output value has reached $1.16 trillion where $400 billion are for the conferences and about $760 billion is for the exhibitions (nat.gov.tw, 2007: 1). This implies that conference and exhibition industry bring big reputations to the nations and cities that host them. UFI points out that by the year 2006, there were a total of 1,062 exhibition halls all over the world with an indoor space that exceeds 5,000 square meters (Center for exhibition industry research 2005:11). The construction of the exhibition halls and space is also growing fast where Europeans nations such as France, Germany, and Italy hold 58% of the world’s total exhibition space. This paper focuses on the social, economic and political benefits the conference and exhibition industry brings to the society. Nations that are investing heavily in the conference and exhibition industry are really reaping the fruits. In fact, in most of the developed nations, there are associations that involves in organizing these business events, incentives, meetings and invitation of delegates from around the world (Ufi.org ). The first social benefit a community gets from the conference and exhibition event is that since people from different corners of the world converge and interact at one point; it facilitates the enhancement of the social skills of the attendance. As people, interact with strangers, their interpersonal skills improve greatly. As the exhibitors try to socialize closely with the attendance consumers, they are compelled to be creative to developing their interpersonal skills in order to socialize with consumers from different backgrounds. Therefore, the development of interpersonal skills is very much crucial in marketing the product this is transferred back home to the normal business operation. Another important social benefit an attendant of the conference and exhibition gets is that it allows them to make as many business associates and friends as many as possible. The fact that the conference creates a friendly environment where people interact freely, share information, jokes, and show their creativity, gives them the opportunity to make choices on a variety of available products (nat.gov.tw, 2007: 1). The businesspersons create links and network with foreign businesspersons and they continue associating in making business deals even after the conferences. This boosts their sales because their market and source of the raw materials of products have widened. Another social befits the conferences provides with the attendance is that they provide them with an opportunity of sharing information and ideas on particular business. Some kinds of businesses tend to thrive well in some parts and fail in other parts (Myers, 2010: 64). Therefore, when the businesspersons who operate such businesses get a chance to interact, they learn from one another on how to operate such businesses. Companies tend to get practical solutions to the challenges that they have been facing. They learn new strategies they can apply in management of their business at home for them to improve their performance (Myers, 2010: 64). In addition, the mingling of employees from different companies enhance the exchange of business skills which in turn the business performance. Once they acquire new business skills, they would use it while carrying out their duties in their respective companies hence the improvement in the company performance. The exhibition industry still enhance social skills since in the organized forums and meetings, the experts from different parts of the world meet and showcase their business skills and creativity (Myers, 2010: 64). This gives an opportunity to the audience to ask questions to seek clarification on particular issues. The audience gets the first hand advice and information from the team of experts and they apply these advice and skills acquired in doing their businesses, this in turn improves their performance of their respective businesses. Business conferences and exhibitions foster international peace and unity. The conferences enable people from different cultural backgrounds to meet. They create business relationships, which in turn improves the business operations. The creation of international business partnership requires the formation of relationship with foreigners who come from different backgrounds. Once there is a rapport with the foreigners, the chances of elevating the company to be multinational become easy because the companies tend to widen its market. Therefore, business friendship with foreigners boosts international peace and unity. The last social benefit that comes as a result of conferences and exhibition is that through the interaction, the attendees of the conferences learn other peoples’ cultures, tradition, values, languages believes and customs (Oliver, 2005:72). This is an important business aspect; the marketers tend to know the culture of their potential customers. Having knowledge of culture of other people guides them on the best approach they can use when trying to market the products to such people. The knowledge of other people’ culture also provides the businesspersons with the appropriate business ideas according to the needs and desires of those people. Therefore, conferences are the best venues where the marketers and entrepreneurs can get good information on how to run their businesses. The first economical benefit of the conference and exhibition industry is that the companies tend to increase their number through strengthening business links. Conferences provide chances where different company executives meet and the chances of forming business partnership become high (Oxford economics 2012:1). New partnership with foreigners leads to growth of many businesses in a country due to strong and international connections. Moreover, the partnership of companies open up new markets for some products in foreign nations, this improves the country’s economy. Through conferences and exhibitions, the country’s economy is boosted through the exchange of business ideas and information (Oxford economics 2012:1). When business executives interact with experts in these meetings, the experts suggest certain influential strategies that are appropriate in carrying out of the operation in their respective countries as per the prevailing circumstances. The new suggestions are often essential to establish a successful business; the skills are quite instrumental in boosting the productivity of the company represented. Conferences and exhibition industry boost the employment in the hosting country. During these events, there is a lot of interaction, companies and organizers tend to employ many people to provide the services in the course of the exhibition. In addition, many citizens of the hosting country get to secure employment opportunities in foreign companies since they get a chance to interact with the executives of these foreign nations (Oxford economics 2012:1). This means that the employment level of a nation is boosted, the increase in the employment opportunities in a country in turn tend to raise the revenue of a nation due to taxation. When the revenue of nation improves, it means that the level of economic growth will improve. As mentioned earlier that during the conferences, companies tend to make business partnership with other foreign companies. The formation of partnerships strengthens business connections, this leads to the increase in the number of investments. In addition, the investments tend to increase in a country because of the wide market that is enhanced by the exhibition events (nat.gov.tw, 2007: 1). When there are conferences in a given country, more accommodation facilities are required. Therefore, the businesspersons in the hosting country invest in accommodation facilities. Thus, the demand for the facilities boosts the investment opportunities in a country due to the exhibitions events. Another economic benefit of the conference and exhibition industry improves the level of foreign exchange. The foreign exchange takes place through the numerous opened up business links in both local and international levels (Oxford economics 2012: 1). The fact that many marketing series are conducted during these conferences, the world market for particular good and services widen. The events make the companies to start importing and exporting their products (nat.gov.tw, 2007: 1). The import and export of goods and se4rvices by the companies lead to foreign exchange. More so, some new products displayed in the exhibition events are likely to raise their demand among the international consumers. The created demand encourages importation and exportation of the product. This also in turn earns the foreign exchange to the country. Most of the attendees of the international conference events are experts and managers of various companies. In most cases, the team of experts meets and discusses various business ides that tend to affect most of the businesses (Oxford economics 2012: 1). The links created, the ideas learned and the marketing strategies acquired learned motivate the managers to go and work hard. They apply the acquired knowledge in managing their businesses at home and even invite the linked experts to visit their businesses and asses their performance in order to suggest the best approach they can use to boost their performance. A part from the social and economic benefit of conferences and exhibition industry brings to the society; we also have political benefits of these events to a country. First, the events boost the international relationships since interdependence is created when companies from other countries link up (Oliver, 2005:33). The interdependence compels the partnering countries to maintain peace and understanding amongst themselves to avoid interruption of the business connections. When the countries carry out business dependently, they set related business policies that in turn enhance trade among them. This is why there exist so many trading blocks in many regions of the world. Secondly, the attendees of the conference and exhibition events come from different countries with different political ideologies. During the events, the represented nation is provided with a variety of ideas and policies from different countries (Oliver, 2005:23). The delegates adopt the appropriate policies that appear to be applicable to their respective countries. The new policies can be employed in creating the business environment in their respective countries. By scrutinizing the strategies learned, they adjust their policies and include the learned ones to boost the operation of the business in their countries. Another political benefit of conferences and exhibition is that the political status of a country is improved. This is because for a country to host an international conference, it must justify it is politically stable (Dandekar, Hemalata 1994: 36). Therefore, countries strive to stabilize their political state in order for them to be given a chance of holding an international event. Moreover, countries that seek partnership with foreign nations ought to be politically stable to attract potential partners. The stability of the political state of any country shows that the business environment is conducive. Therefore, hosting the international events to any country is directly proportional to the political stability of that country. Another political benefit of exhibitions events is that it improves the hosting country image (Dandekar, Hemalata 1994: 36). A country that is in a position to host an international event is respected to have a higher reputation. The country is expected to have clear political issues to create a good environment for business that has minimal conflicts. In conclusion, conferences and exhibition industry is a young industry that has beard fruits to the social economic and political aspects of many countries around the world. The industry is growing fast due to its benefits and many nations are investing heavily in it. Despite the heavy cost of organizing and hosting such events, nations are ready to do it because of the positive long-term effect these events pose to the growth of the country. Trends reveal that the industry would still grow since the developing nations have not yet well mastered this strategy of boosting their growth. Bibliographic references Center for exhibition industry research. (2005). Exhibition industry census II: Comprehensive resource of exhibition industry data. Center for exhibition industry research Cheng, Tina. (2005). Industry research: 2010 HKECIA Economic impact study report. Accessed on web 17th Oct 2012. Retrieved from http://www.exhibitions.org.hk/english/industry_detail.php?id=289 Dandekar, Hemalata. (1994). Hosting an international conference on women and shelter: Pedagogic and logistical insights. University of Michigan. USA Myers, Helen. (2010). The business seminars. Center for seminar management. The University of Michigan. USA. Marlow, Harper. (2011). The development of the objective analysis of the conference method of learning. Cornell University. New York. USA. Nat.gov.tw. (2007). Meeting, incentives, convention and exhibition (MICE ) Industry: Analysis &investment opportunities. Accessed on web ob 16th Oct 2012. Retrieved from http://investintaiwan.nat.gov.tw/doc/industry/13MICE_Industry_eng.pdf Oliver, Ian. (2005). Event planning. Lulu.com. Raleigh. North Carolina, USA. Oxford economics. (2012). The economic impact of the UK exhibition industry. Accessed on web. 17th Oct 2012. Retrieved from http://www.businesstourismpartnership.com/research/OxEcon%20final%20report%20- %20Economic%20Impact%20Study%20Facetime%20version.pdf Sole.org. (2012). SOLE-The international society of logistics. Accessed on web 17th Oct 2012. Retrieved from http://www.sole.org/conference.asp Ufi.org. Benefits of exhibition: Settlement of a new exhibition company. Accessed on web 16th Oct 2012. Retrieved from http://www.ufi.org/medias/pdf/ufiactivities/education/case_studies_and_exam_questions. pdf Read More