Price competitiveness and government incentives for simulating the meetings industry: A critical look at the case of Macau.

Abstract

Purpose – The purpose of this paper is to examine the extent to which price competitiveness accounts for the observed precipitated decline in the number of meetings taking place in Macau from 2009 to 2012, in spite of the rapid growth in overall tourism, diversification in its tourism offering, and the sizable expansion of its capacity and facilities for hosting business tourism over the same period. Design/methodology/approach – Analyzing historical as well as comparative data in a cross-section analytic design, the study suggests an implied competitive price range (using comparative accommodation prices as a proxy) beyond which financial incentives may be ineffectual in attracting meetings Findings – Examination of price levels as a proxy of competitiveness in attracting meeting events in the single case of Macau proved inconclusive. Other factors beyond mere price competitiveness likely account for the declining number of meetings in Macau from 2009 to the end of 2012. Originality/value – Overall, the above findings pose a challenge for the continued general development of MICE industry in Macau and its meetings industry in particular. Despite the noble and generous efforts of its government agencies to arrest the decline in the number of meetings and maintain Macau’s position as a meetings industry hub through monetary incentives and subvention packages for organizers, it would benefit them and the private sector to explore channeling more resources toward addressing the fundamental and structural factors that can improve long-term competitiveness in attracting more meeting events.