Sharp Decrease In Beijing MICE Market Business Following Earthquake

According to BTG International Travel & Tours, CYTS and CITS, as a result of the Sichuan Earthquake, Beijing's MICE business has sharply decreased and is expected to become almost stagnant until the beginning of October 2008.

During the first week following the earthquake, many Beijing travel agencies received  cancellations from clients, including booked journeys from May through to July. For example, BTG International Travel & Tours said that their business has decreased by about 80-90% that week.

Zhou Lin, manager of the MICE department of Air China Travel Service Ltd. said that the company estimates a loss of at least RMB200,000 to RMB300,000 this May because of cancellations of MICE business have brought great losses to the travel agencies.

Statistics from CYTS and CITS in Beijing indicate that currently MICE guests of travel agencies are mainly from some associations, overseas offices in China, governmental departments, and the telecoms, medical and IT industries. After the earthquake, many governmental departments devoted their efforts to the relief and reconstruction work, as a result MICE bookings are lower than before; and because of Beijing's policy of controlling international conferences or exhibitions before and during the Beijing Olympic Games, Beijing's MICE market is expected to become almost stagnant until October 1.