FOCUS: ANTICIPATING 2023 & BEYOND

Meetings brings you a collection of trend reports and industry expectations for the short-term future of the MICE sector, focusing on conferences, exhibitions, incentives and venues.

Glenton de Kock, CEO of SAACI, summarises what the conference sector can expect when he says, “An anticipated increase in delegate numbers to in-person meetings and events may come as no surprise for those in the trenches: live events are back and are here to stay. But it’s not back to business as usual. In fact, it can’t be.”

Here are four trends that are altering the way we host conferences going forward...

TREND #1: HYBRID EVENTS

While the world returns to face-to-face events with enthusiasm, the hybrid event format is expected to persist. Ellen Oosthuizen, owner of Bebe Events and chair of PCO Alliance, says, “PCO Alliance members agree that we should expect a combination of virtual and in-person meetings, as travel options will still be very limited, and we have become accustomed to the simplicity and cost-effectiveness of having hybrid conferencing and working remotely.”

She adds, “Corporates have learnt that they could save hugely on budget with virtual and hybrid events during lockdown, so their spend is now very carefully considered. Being budget conscious is now more important than ever. Meanwhile, accessibility and flexibility are two major considerations for attendees, both of which hybrid events offer.”

Keith Burton, MD of African Agenda, agrees that hybrid is here to stay, adding, “The degree/ definition of hybrid is going to vary enormously, and the ability to cope with and deliver against a wide range of hybrid options will be what differentiates us PCOs in the years ahead.”

There are almost endless variations in how hybrid event formats can be held, but three broad examples to illustrate this include: largely inperson events with online content, largely online events with in-person meet-ups, or small live events that are connected online to essentially create a larger event.

Glenton de Kock, CEO of SAACI, also anticipates this trend, saying, “Some corporations are still pulling back their in-person plans to prioritise safety and save on costs. Therefore, in 2023, planners will be searching for immersive studios that turn a dreaded ‘Zoom call’ or ‘Teams meeting’ into an awe-inspiring, seamless event that exceeds the audience’s expectations and spreads your message further than ever.”

Key takeaway: Technical know-how is going to be increasingly important. Ellen summarises, “AV suppliers, venues and event managers need to become tech savvy and improve their technical skills themselves and be well equipped to always offer a hybrid event or element to an event.”

TREND #2: SUSTAINABILITY

An impressive 80% of respondents in the American Express 2023 Global Meetings and Events Forecast* say their organisation takes sustainability into account when planning meetings and events, while 76% have a defined sustainable meeting programme strategy in place.

South Africans are likely trailing in these numbers, but Morwesi Ramonyai, chairperson of the Event Greening Forum (EGF), agrees there is a growing local movement. She says, “Under the shadow of the climate crisis, accountability, transparency and greater corporate responsibility are what we can expect to see. Talk of netzero and active target-setting will become mainstream, as the healthy race to be perceived as environmentally conscious wages on. As such, the greening of conferences and events is a ripe, low-hanging fruit for decarbonisation and impact.

“The recent carbon tax developments in South Africa will also be a critical driver towards the shift – which is all good overall, because the winner is the climate after all.”

Glenton adds that, now more than ever, companies need to make sure that their environmental, social and governance (ESG) processes are moved to the centre of their strategy in 2023. He adds, “This should start with measuring the impact any business is having on society and the environment, and then move to increasing transparency, reporting and accountability.”

The PCO Alliance also cites sustainability as a fast-growing trend. “PCOs need to discuss with their clients and venues how they can make their events more sustainable. We need to be looking at carbon footprints of events more than ever, since big corporates require sustainability reports and certification from event companies,” says Ellen.

“As a result, we expect to see less paper and more digital communication at events, more recycling of conference paraphernalia, using the hybrid event model to reduce travel-related carbon emissions, and opting for more sustainable food and beverage service (such as no single-use plastic, more local and seasonal foods, and more wholesome options),” she adds.

Key takeaway: If you haven’t already, now is the time to develop a sustainability strategy for your business. Morwesi adds, “At the EGF, we are committed to equipping you with information, tools and knowledge to make this easier for you. Follow us on our social media platforms and visit our website (eventgreening.co.za) – or better yet, become an active member.”

TREND #3: DEI

Practices around diversity, equity and inclusion (DEI) have started to gain greater attention globally, which is also playing out in the events industry. Glenton says, “We note that clients may start to become selective about the services they choose based on a provider’s commitment to DEI and sustainability efforts.”

The American Express forecast found that 87% of the respondents said their organisation actively strives to incorporate DEI into their meetings and events. This is mostly done through opting to use minority-owned suppliers, with other popular strategies including “choosing destinations with active outreach to multicultural groups, hiring certified diverse suppliers, and booking venues that are 100% accessible.” Key takeaway: Most event organisers are clued up on this topic, but it’s worth a reminder to continue to assess how accessible and representative your events are.

TREND #4: WELLNESS

Ellen says, “Since the pandemic, corporates are wellness conscious and concerned about their staff’s well-being.”

There are many ways to consider well-being. For example, Glenton believes that planners need to take a people-centric approach and consider offering more sensory and quiet spaces in nature or breakout rooms that incorporate meditation.

Meanwhile, the American Express findings share that planners are moving away from packing as many sessions or activities into a day, recognising that attendees simply cannot maintain that level of enthusiasm and focus.

Key takeaway: Most planners are aware of this trend and look for interesting ways to include it in their programmes. However, Ellen notes that many venues continue to serve cakes and pastries with few healthy alternatives – which is a missed opportunity to add value, easily and cost-effectively. (Turn to page 22 for some inspiration on how to add wellness into your events.)

*https://www.amexglobalbusinesstravel.com/theatlas/american-express-meetings-events-forecast

Local exhibitions are returning with new ideas and energy. Here are the biggest trends emerging in this space.

TREND #1: TRADE SHOWS EMBRACE DIGITISATION

Digitisation is emerging as the exhibitions industry’s biggest trend. Mark Anderson, portfolio director at Specialised Exhibitions – a division of the Montgomery Group, explains a common approach with this trend when he says, “Whereas the emphasis of our exhibitions will continue to be on an in-person event experience that engages all the senses, we recognise the benefit of incorporating the latest digital tools and services. It will be a ‘light’ hybrid event in the sense that we will make further use of the latest digital tools and digitisation, while very much enhancing the in-person exhibition experience.”

Social media is playing a key role in how they engage with people at their events – both before, during and afterwards, adds Charlene Hefer, portfolio director at Specialised Exhibitions. One interesting approach they’ve used, which exemplifies the blend of digital and in-person, is using social media influencers for Hostex 2022. These “captains of industry” were able to engage the target market both on social media and at the live event with great results.

Specialised Exhibitions also plans to improve their various digital assets, says Charlene, and “in the future, we also see the incorporation of AIpowered matchmaking solutions with video calling features and further enhanced attendee and exhibitor networking and live discussions.”

Megan De Jager, portfolio director: Travel, Tourism & Creative Industries at RX Africa, also stresses the huge value that digitisation offers. She says, “365-engagement will be more important than ever in 2023. A trade show is no longer a once-off event, it requires from the event organiser to build a community of engaged attendants and connect with them throughout the year.”

She says that, while 2023 Africa Travel Week will be a live show, they will continue to engage with their community year-round thanks to its virtual hub: ATW Connect. Here, virtual masterclasses and events featuring industry thought leaders will provide relevant information throughout the year.

Megan adds that digitisation also enables personalisation – another trend her company is embracing – as it means communication can become far more targeted and therefore effective.

Another huge benefit of digitisation is that it can be tracked and measured. Mark says, “The advanced digital tools and platforms are also able to capture and analyse ‘industry insights’, which is invaluable to business, marketing and communications strategy and to enable organisers to tailor exhibitions to the specific needs of industries.” Key takeaway: If you haven’t yet, now is the time to choose and use your preferred digital tools and strategy.

TREND #2: SHIFTS IN PARTICIPATION

Devi Paulsen-Abbott, chair of the African Association of Exhibition Organisers (AAXO) and vice president of dmg events, expects the lingering effects of the pandemic on international travel will continue to impact exhibition participation.

She says, “Organisers will need to manage expectations around the geographic profile of visitors given the rising cost of passenger air travel in South Africa, which has increased by almost 50% over the last 12 months (due to pent-up demand and the closure of several domestic airlines). This is going to have a substantial impact on geographic reach and participation of visitors (and possibly exhibitors) whose ability to travel domestically may be stifled due to the cost and capacity of travel.”

Conversely, Charlene expects to see an increase in international travellers in 2023. She says, “With most travel restrictions having been eased during 2022, this will enable both international exhibitors and visitors to plan ahead for participation in our shows in 2023.”

Fuelling this likelihood for Specialised Exhibitions is that it has consolidated some of its shows to promote business growth. For example, Electra Mining Botswana and Caminex (which was hosted in Zambia) are going to be consolidated into Electra Mining Africa 2024, which should see more exhibitors and visitors coming together – a shift that will benefit the business interests of both.

Key takeaway: Identifying and attracting your audience has never been more critical; however, in the words of Devi, “While foot traffic at events remains a key performance metric for organising teams, organisers will need to adjust focus and efforts in improving the quality of their attending audience to ensure right-fit collaboration and networking opportunities. Outreach will need to be more personalised and a bigger focus on value will need to be articulated.”

TREND #3: SUSTAINABILITY

Devi and Megan both cite sustainability as a significant trend influencing how trade shows are managed.

One initiative that will hopefully spur on collective sustainable action across the international exhibitions industry is the Net Zero Carbon Events (NZCE) pledge. UFI, the Global Association of the Exhibition Industry, together with AIPC, the International Association of Convention Centres, and ICCA, the International Congress and Convention Association, has initiated the NZCE initiative, which is being hosted and communicated by JMIC, the Joint Meetings Industry Council.

Kai Hattendorf, CEO of UFI, explains, “The exhibitions industry has been working on this issue for a while. UFI, for instance, set up its sustainable development working group back in 2008. But it’s true to say that the agenda has grown recently, especially around climate change and the need for industries to be active, in addition to governments and individuals. We, as the exhibitions industry, need to show that we are a part of the solution of the climate crisis, and not part of the problem.”

As well as addressing the key concern of reducing greenhouse gas emissions (and achieving a netzero emissions target by 2050), and measuring and managing water and energy, Kai adds that there is also an opportunity for the industry to demonstrate its positive social impact through job creation and the benefits exhibitions can create for local communities. These are as much a part of the sustainability conversation as managing resources.

Kai adds that the pledge has so far received over 400 signatories from 55 countries, and he expects all segments of the events industry to be strongly represented in the future.

Key takeaway: Join the movement and sign the pledge at netzerocarbonevents.org. Next, and in the words of Edwin van der Vennet, owner at beMatrix and one of the signatories to the pledge, “Just start!” Don’t think about the net-zero target, which can be overwhelming. Just look at what you can start doing now, he advises.

ExpoGuys - STM at Electra Mining 2022

Lee-Ann Alder, association manager of the Exhibition and Event Association of South Africa (EXSA), shares that EXSA members are focused on delivering stands with a wow factor. “People are looking for innovation and excitement on stands, so there will need to be a lot of out-of-the box thinking and strategising. At the same time, with budget cuts, quality will be prized over quantity and stands need to deliver what they promise to deliver.” Justin Hawes, MD of Scan Display and president of the International Federation of Exhibition & Event Services (IFES), also stresses the impact that shrinking budgets will have on stand designs. He says, “Marketing budgets are going to continue to be tight and exhibition stand designs will be carefully monitored for the value they deliver. I think we will continue to see growth in compact, economical stands incorporating fabric graphics. For example, we have seen good growth in our Fabric Pop-up System, which shows the value clients see in a portable, versatile, reusable display solution.” Justin adds that fabric isn’t only an economical option that looks good, but it also provides “a great green solution – easy to wash and reuse, and store and transport.” It’s use therefore also speaks to the increasing importance of making more sustainable choices at events.

Scan Display - Africa Data Centre at AfricaCom 2022 Scan Display’s Fabric Pop-up System DK Design - Multotec at Electra Mining 2022

According to the 2022 Incentive Travel Index (‘the Index’), 91% of the 1 417 respondents surveyed “agree that, with a dispersed workforce, incentive travel will have an even more important role [in] building engagement and company culture”.

In this context, the industry is gearing up for a busy future, although it’s not without its challenges – cited by the respondents as inflation (66%), attracting talent (64%) and new expectations on contract management (64%).

TREND #1: CLOSER TO HOME AND ALLINCLUSIVE RESORTS COME OUT TOPS

The Index shares that buyers are favouring closer destinations and resorts, although there is still an appetite for “something new and seeking destinations they haven’t used before”.

Tes Proos, founder of Crystal Events Africa and president of the Society for Incentive Travel Excellence (SITE) Africa, shares that many local SITE members agree that travellers are still reticent to explore long-haul destinations in case they could get stuck – as happened with Covid and the Delta variant in 2020, followed by the Omicron variant in 2021. “If the 2022 festive season is unaffected, then we expect this will no longer be a concern,” she adds.

Additionally, costs are up across the board, says David Sand, group CEO of Uwin Iwin, noting that airline costs have increased by more than 33.4% (August 2022), which has

The Incentive Research Foundation’s (IRF) 2022 Destination Preferences Study white paper findings share the following ranking of important qualities of an incentive trip: • You are given ample time to relax – 87% • You could take your spouse/significant other/friend along – 81% • The trip offers luxury accommodations and experience – 80% • You are provided a bit of spending money to cover ‘extras’ or out-of-pocket expenses – 77% • The trip was to a destination to which you had never been before – 67% • Your seat is upgraded to a seat better than economy class – 66% • The trip provides a more intimate and exclusive experience even if it means fewer winners – 65% • You have the opportunity to be recognised in front of your peers – 52% • You receive a merchandise gift as part of the experience – 50% • You have the opportunity for significant professional networking – 47%. David adds, “From our post-trip surveys of 2021 and 2022 trips, our South African data would support that the top four priorities also factor highly for South African delegates.” Meanwhile, the Index respondents ranked the following activities as follows: • Activities that promote relationship building – 72% • Group cultural sightseeing experiences – 66% • Luxury travel experiences/bucket list – 58% • Group dining experiences – 57% • Award celebrations – 48% • Multiple options aimed at smaller groups – 46% • Free time – 46% • Team-building activities – 42% • Activities promoting wellness – 35% • CSR activities – 35% • Activities that promote sustainability – 28% • Meetings – 25% • Business tours and field visit – 21% • Shopping experiences – 12%.

undoubtedly affected destination choices. He adds, “The weaker exchange rates put greater pressure on local companies to provide an all-inclusive experience so that, even during leisure times, we don’t put winners in an uncomfortable position of not being able to enjoy themselves.

“We have managed this balance with careful selection of hotel and resort venue, balanced organised and leisure time, and furthermore a wide choice of on-trip activities that meet a diverse preference palate.”

Of course, the weaker exchange rate also makes South Africa an appealingly affordable destination, which could benefit the inbound market.

Thembi Kunene-Msimang, COO at Tourvest IME, adds that destinations with less stringent or no visa requirements are

another consideration. “Not needing a visa or not requiring vaccination takes a lot of pressure off the planning, especially with the short lead times we are experiencing,” she says.

Key takeaway: Tes says, “We expect that 2023 will be a pickup year, but 2024 is going to be packed. With South Africa only lifting most of our Covid barriers since April 2022, the decision-making for 2023 programmes was diverted to domestic destinations or international ones where Covid protocols were more acceptable. Now that our borders are open, the prospect of South Africa is back on the horizon.”

TREND #2: CSR

Geoff Saner, owner of Creative Incentives, says that while experiential travel has always been an objective in the industry, companies are increasingly asking that it include a corporate social responsibility (CSR) angle. “Companies want to contribute to good causes in some way while they visit a destination,” he says.

The Index shares that 35% of the respondents believe that this is an important ingredient in a successful programme.

The Society for Incentive Travel Excellence (SITE) Global Leadership Insights adds that CSR activities have the potential to make an incentive trip incredibly meaningful and memorable. However, caution is given that the activity must engender authentic benefits and not be a PR exercise. Key takeaway: South Africa is rife with CSR opportunities where groups can confer tangible and much-needed benefits, and which can make for unique experiences, so this is an easy one to offer.

TREND #3: SUSTAINABILITY

Geoff also notes that sustainability is a growing trend. He says, “Organisers are taking on the responsibilities of including this into their local conferences or outbound groups. Many are calculating the carbon cost of flying and the activities included in the trip. Or the activities themselves are going green. For example, I am taking groups to the Abu Dhabi Grand Prix. Formula 1 racing is not very green, but they are aiming to cut their annual carbon emissions from 256 000 tonnes to net zero within the next five years. I believe the awareness will continue to grow.”

David adds, “We as a business are also committed to promoting a more sustainable incentive travel agenda. To this end, our partnerships and choices in the supply chain become very important selecting sustainable eventing protocols, transportation and venue choice.”

‘Activities that promote sustainability’ was an important element among 28% of the Index respondents.

Key takeaway: Sustainable considerations are not going away, so take steps to educate yourself and your team on what you can do to improve the sustainability of your operations. One of the most effective ways to do this is per David’s strategy at Uwin Iwin, and to focus on developing a sustainable supply chain.

Sources: www.incentiveindex.com siteglobal.com/leadership-insites theirf.org/wp-content/uploads/2022/07/IRFIncentive-Travel-Destination-Preferences-WhitePaper-2.pdf

Johan Cronje, cluster GM for the Marriott Melrose Arch Collection, is optimistic about the future, and says, “Due to the longer lead time generally associated with international, incentive as well as association events and conventions, I think that this segment will still take a little time to recover. It is, however, really reassuring and exciting to see the business pipeline building up in 2023 and beyond.”

Here are some of the top trends that will influence the decisions venues make as they chart their recovery.

TREND #1: ‘EXPERIENTIAL’ IS THE NEW SALES CURRENCY

Sven Bossu, CEO of the International Association of Convention Centres (AIPC), admits the industry always has numerous trends at any one time, but says the one he believes warrants the most attention – because of its ability to boost attendance – is experiential entertainment.

He says, “In order to convince people to join face-to-face meetings, ROI alone is no longer sufficient. Participants are looking for an experience they can take home, and which goes beyond what it expected.”

He adds that when planning the 2023 AIPC Annual Conference with the team at the European Convention Center Luxembourg, “We did not talk about square meters, catering, etc. We talked experience – local speakers, use of destination assets, creative use of rooms – in function of what we wanted to achieve as an association.”

Sentil Gopinath, CEO of the International Congress and Convention Association (ICCA), believes the metaverse is a key trend for a similar reason. He says, “We believe the metaverse is all about the experiential. What we do has to mean more. The metaverse has the potential to make events even more extraordinary and more fulfilling for all involved. Understanding the importance and possibilities offered by the metaverse – and leading the conversation – is something ICCA is keen to promote. And doing more for our members – in person, virtually and combining both – is a challenge ICCA greatly looks forward to meeting head on.” Key takeaway: Sven believes the experiential trend provides a great opportunity for destinations and convention centres, adding, “If they are able to grasp what the organisers are trying to achieve and they can match that with unique experiences, they will elevate the journey for the participants, make the organisers achieve their objectives, and demonstrate the attractiveness of both the destination and venue.”

TREND #2: HYBRID EVENTS CONTINUE TO REDUCE IN-PERSON ATTENDEES

Lindiwe Rakharebe, CEO of the Durban International Convention Centre, believes that hybrid events are only going to increase over the next 5 to 10 years, and “communities will interact through the combination of virtual and face-to-face experiences in ways that will increase their return on investment and improve efficiencies.”

The exception to this, she adds, are trade shows, which she believes “will come back in a big way for in-person events.” Guy Stehlik, CEO and founder of BON Hotels, agrees that with the ability to now conduct business online, more attendees are indicating they may not attend as many B2B events as they did pre-pandemic. “This is especially evident among millennials who are demonstrating more and more reluctance to attend B2B events. Furthermore, those who may have travelled to a range of events pre-pandemic are now increasingly choosing to do so far less,” he adds.

Key takeaway: Many venues now offer a hightech setup to accommodate hybrid events and offset the lost footfall revenue. Meanwhile, the experiential trend mentioned above also presents a means to increase in-person footfall.

TREND #3: SUSTAINABILITY

It’s not only climate change concerns that are driving the sustainability discussion for venues. South Africa’s supply struggles for both water and energy, not to mention increasing costs, are also great reasons to go (at least partly) off-grid. Meanwhile, improved sustainability is becoming a selling point to attract new business.

The CSIR ICC’s Minister Kganyago, business development manager, and Refilwe Nchebisang, acting marketing manager, share that their venue has implemented several social and environmental responsibility initiatives over the years. These include training staff and partnering with relevant service providers to proactively promote green conferences to clients.

They add, “The CSIR ICC has also implemented an energy demand management initiative to ensure consistent energy supply for its clients. This

A City Lodge hydration station

controls the heating, ventilation and cooling in the building, so that these systems only operate when venues are in use.

“Given the current energy crises, the energy demand management trend will continue to be on the forefront of discussions with the need to accelerate the transition towards global net-zero emissions for the events industry.”

The City Lodge Group is also pursuing several strategies to improve sustainability. Lindiwe Sangweni-Siddo, COO, says, “Our sustainability journey grows every year as we reduce our carbon footprint by adding new ways to save precious resources like energy and water, minimise single-use plastic, and reduce waste.”

She shares that 25 properties have been fitted with solar panels, with more to follow, while all amenities are free from single-use plastic, and their Hydration Stations offer guests free, chilled, magnesium-enriched, filtered still and sparkling water to reduce plastic bottles heading to landfill. The group is also increasing the variety of plant-based and vegetarian dishes on its menus, and has introduced new technologies such as an app, online check-in and QR codes, to reduce paper. Key takeaway: Venues stand to gain several benefits from ‘going green’ – from limiting their carbon emissions to reducing costs and ultimately benefiting (and therefore attracting) event organisers who are also striving to become more sustainable.

TREND #4: AN INCREASE IN RATES

Guy warns, “As South Africans brace for further energy price increases, rising inflation, higher labour costs and increasing costs of supplies into 2023, PCOs, meeting and event planners should prepare for further price increases across the board next year.”

He explains that the influx of events – fueled by pent-up demand coupled with shorter lead times – is also driving up prices across venue hire, accommodation, food and beverage, and production.

Contributing to this is the fact that demand for meeting space is high because “corporate meetings are now competing for space with a wide variety of events that have had to be rescheduled”, while many companies have given up their offices and need to find places where they can bring their teams together.

Guy adds, “I firmly believe South African hotels, lodges and resorts have no choice but to increase rates across the board and that we need to look to at a minimum 20% increase for 2023 for accommodation, food and beverage, and conferencing. Matching 2019 rates (as is current practice) is unsustainable and we should not degrade our products and services further by falling into the traditional discounting spiral.”

Key takeaway: Adjust your value proposition as well as your price. As Guy says, “We will be positioning our rates for MICE higher for 2023 but will similarly ensure the value-for-money proposition to our guests is not negatively affected in any way.”

City Lodge now provides zerowaste amenities for its guests