Meeting, Incentive, Convention,

and Exhibition (MICE)

Industry:
Analysis & Investment
Opportunities

Department of Investment Services,

Ministry of Economic Affairs

 Table of Contents
I. Global Trends in MICE Industry Development .................... 1

(I) A 21st Century Goldmine................................................................1

(II) The Asian MICE Industry Boom ...................................................2

II. The Status of MICE Industry Development in Taiwan ........ 5

(I) Supply & Demand..........................................................................5

(II) An Analysis of Existing Gaps in the Industry Supply Chain,

Investment Niches, and Prospective Foreign Investors................7

(III) Major Suppliers in Taiwan ......................................................... 11

III. Optimum Investment Items for Foreign Investors ............. 12

(I) Investment Advantages ................................................................12

(II) Investment Niches and Suitable Investment Categories ..............17

IV. Successful Examples of Cross-Border Strategic Alliances and

Foreign Investment in Taiwan ................................................ 19

(I) Uniplan (Germany) ......................................................................19

(II) Messe Frankfurt (H.K.) Ltd. Taiwan............................................19

V. Industrial Investment Incentives............................................ 21

VI. Industry-Academia Collaboration in Taiwan.......................... 25

I. Global Trends in MICE Industry Development
The meeting, incentive, convention, and exhibition (MICE) industry—a service
industry combining trade, transportation, finance, and travel—has been active in
Europe and America for over a century. The MICE industry is characterized by the
“Three Highs—high growth potential, high added-values, and highly beneficial
innovations”; the “Three Larges—large output, large opportunities for employment,
and large industry associations”; and the “Three Advantages—advantage over other
industries in human resources, technological know-how, and the efficient utilization of
assets.” Today, countries all over the world are putting their best foot forward to
develop the MICE industry as a means to enliven national economic development.

(I) A 21st Century Goldmine

1. The MICE Industry is Booming

International Congress & Convention Association (ICCA) statistics show, that a

total of 400,000 conferences and exhibitions are held worldwide every year at the total
outlay of US$280 billion. The Global Association of the Exhibition Industry (UFI)
points out that as annual MICE industry output value has already reached US$1.16
trillion (including US$400 billion for conferences and US$760 billion for exhibitions),
MICE could be counted on to bring enormous economic benefit to the countries and
cities that host them.

2. Continuous Expansion of MICE Industry Venues Worldwide

In its October 2007 report—“World Map of Exhibition Venues”—UFI notes that

in 2006, there were a total of 1,062 exhibition halls around the world with indoor
exhibition space exceeding 5,000m2, meaning that there is approximately 27.6 million
m2 in total indoor space primarily located in Europe, North America, and Asia. More
specifically, exhibition halls in the U.S., Germany, China, Italy, and France assume
58% of the worldwide capacity. Total construction costs for 2007-2010 is estimated at
a minimum of US$18.7 trillion for building and expansion. By 2010, the world will
have a total of 1,104 exhibition halls with over 5,000 m2 in indoor exhibition space,

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providing a combined total of approximately 31.1 million m2 in indoor exhibition
space.

Available Floor Space in Indoor Exhibition Halls Worldwide (2006～2010)

Exhibition Space
No. of Exhibition Halls
Regions (Million m2)
2006 2010 (F) Growth 2006 2010(F) Growth
North America 359 370 3% 7.1 7.7 8%
Europe 465 477 3% 14.3 16.2 13%
Asia 127 143 13% 3.9 4.6 20%
Oceania 16 17 6% 0.3 0.3 6%
Middle East 32 33 3% 0.6 0.9 38%
Africa 25 24 -4% 0.5 0.6 7%
Latin America 38 40 5% 0.9 0.9 4%
Source: UFI; compiled for the present study, 2008/2

(II) The Pan-Asian MICE Industry Boom

As nations around the world are optimistic about MICE industry development,
exhibition space will continue to grow in the years ahead. This is particularly evident
in Asia, where exhibition space is expected to grow to 4.6 million m2 by 2010—a 20%
increase on 2006. UFI points out in its June 2007 report—“The Trade Fair Industry in
Asia - 3rd Edition” —that, spurred by the momentum of production relocation to Asia
from the rest of the world, the Asian MICE industry made over US$2.4 billion in
revenues in 2006. There was a 7.6% growth in the quantity of exhibitions and a 17.4%
growth in available floor space. China, Hong Kong, India, Taiwan, and Thailand
demonstrated the most remarkable growth in both respects.

Analysis of International Exhibitions Held in Asia

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 Anticipated
No. of Exhibitions Held Total Floor Space Leased (㎡) Revenues
(US$ Million)
Country
Year-on- Year-on-
2006 2005 year 2006 2005 year 2006 %
Difference Difference
China 587 564 4.1% 5,089,000 4,065,000 25.2% 759.8 31.5%
Japan 475 473 0.4% 2,174,000 2,273,000 -4.4% 648.1 26.9%
India 158 128 23.4% 526,000 462,000 13.9% 128.4 5.3%
South Korea 140 139 0.7% 528,000 522,000 1.1% 131.8 5.5%
Hong Kong 82 56 46.4% 776,000 501,000 54.9% 323.4 13.4%
Thailand 69 57 21.1% 381,000 274,000 39.1% 110.7 4.6%
Taiwan 60 58 3.4% 410,000 329,000 24.6% 85.9 3.6%
Singapore 59 52 13.5% 202,000 175,000 15.4% 64.0 2.7%
The Philippines 59 62 -4.8% 114,000 125,000 -8.8% 18.6 0.8%
Malaysia 57 52 9.6% 246,000 166,000 48.2% 70.9 2.9%
Vietnam 56 41 36.6% 109,000 62,000 75.8% 28.3 1.2%
Indonesia 54 56 -3.6% 170,000 192,000 -11.5% 25.5 1.1%
Pakistan 32 17 88.2% 62,000 41,000 51.2% 17.3 0.7%
Total 1,888 1,755 7.6% 10,787,000 9,187,000 17.4% 2,412.7 100%
Source: UFI, Business Strategies Group; compiled for the present study, 2008/2

In terms of international conventions, ICCA statistics show that there were a total
of 5,838 international conventions held in 2006, 555 more than in 2005; Asian
countries are responsible for 17.4% of that total, notably Singapore and Seoul, which
ranked 3rd and 7th in the world in terms of the number of conventions held in 2006.
There have been 1,000 international conventions held in Asia each year since 2004.
While this is still a far cry from the 3,000 conventions annually held in Europe—the
world’s largest MICE industry market—Asia did outperform North America in this
past decade, and a trend seems to be emerging, whereby MICE industry activity is
shifting from Europe and America into Asia.

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International Meeting Rankings by City (2006)

No. of
Ranking City Meetings
1 Vienna 147
2 Paris 130
3 Singapore 127
4 Barcelona 103
5 Berlin 91
6 Budapest 86
7 Seoul 85
8 Prague 82
9 Copenhagen 69
10 Lisbon 69
Source: ICCA, 2007/6

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II. The Status of MICE Industry Development in Taiwan
(Ⅰ) Supply & Demand

MICE industry development is an important index for evaluating regional

prosperity and level of internationalization. As an emerging globalized service industry,
MICE is especially valued by national governments for its three highs—high growth
potential, high added-value, and highly beneficial innovations; three larges—large
output, large opportunities for employment, and large industry associations; and three
advantages—the advantage over other industries in human resources, technological
know-how, and the efficient utilization of assets. Many cities are even utilizing the
MICE industry as a development strategy for the new era. Taiwan’s MICE industry has
been around for only a quarter century, and is a much younger industry than its more
mature counterparts in Hong Kong, Japan, and Singapore, though not without its own
competitive edge. There is no disputing the fact that the MICE industry in Asia is
currently experiencing a period of great expansion and growth, and regional
competition has only just begun.

MICE employs an industry model based on service, emphasizing resource

integration, with the objective of developing satellite industries around its main
focus—that of meetings and exhibitions. Every US$1 spent on this industry will lead
to US$7-10 of peripheral economic benefits. That is why the Taiwanese government
has designated the MICE industry as an important service industry for development,
and estimate that industry output value will reach US$ 100 million in 2008. In addition,
Taiwan is striving to host more international exhibitions, pledging to double the
amount of international exhibitions held on the island in 2008 and a 10% increase in
international visitors. The government designated 2008 as an “exhibiting activity
year,” as the opening of the Taipei World Trade Center Nangang International
Exhibition Hall (TWTC Nangang) in 2008 effectively increases the international
competitiveness of the local industry. The industry will see further resource integration
during 2008, culminating in 2009’s “exhibition expansion year,” when the
developmental focus will be on the expansion of industry depth and scope.

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 According to the UFI industry report, the Taiwan External Trade Development
Council (TAITRA) is among the top 10 convention organizations in Asia, just behind
the China Foreign Trade Guangzhou Exhibition Corporation, Singapore International
Convention & Exhibition Centre, and Hong Kong Trade Development Council. In
2006, Taiwan ranked 9th in the region for the number of international conventions held
(47), while Taipei ranked 8th among all Asian cities with 29 international conventions
held. ICCA statistics further indicate that in 2006, international conventions in Taiwan
were joined by a total of 33,589 participants, which is a 46.7% increase on the 22,902
participants in 2005. Statistical data disclosed by Taiwan’s Tourism Bureau (TBROC)
indicates that of the 3,716,063 total visitors to Taiwan, 57,800 came for the purpose of
attending meetings and conventions. In the area of international exhibitions, UFI’s
June 2007 data shows that Taiwan ranked 7th in Asia for sponsoring a total of 60
international exhibitions in 2006. Taiwan also ranked 6th in Asia for the total area
leased for exhibitions, which came to 410,000m2, or a 24.6% increase on 2005. With
all these advantages in mind, it is imperative that Taiwan do more to develop unique
local MICE industry features to increase overall global competitiveness for all
domestic industries.

As of the end of 2007, there were a total of six exhibition halls in Taiwan for
regular exhibitions, providing a total of 58,254m2 in available floor space. The TWTC
database also reveals that nearly 100 international exhititions are held annually at the
TWTC exhibition halls in Taipei, its 310-day annual occupancy rate virtually
unsurpassed. In fact, TWTC exhibition halls are very often overbooked. Opened in
March 2008, TWTC Nangang is expected to alleviate this space problem.

The Taiwanese government has invested heavily in the MICE industry. A total
US$680 million was invested into the construction of large-scale exhibition halls
including the TWTC Nangang, TWTC Nangang expansion, and Kaohsiung Exhibition
& Convention Center. Upon the completion of these projects, Taiwan will advance
from 7th to 5th-place in Asia in terms of the amount of available exhibition floor space,
and from 36th to 32nd in the world in terms of the number of international conventions
held.
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 Exhibition Halls in Taiwan by 2012 (by Floor Space and Booths)

Service Available Floor No. of

Regions Exhibition Halls
Since: Space (m2) Booths
Northern Taipei World Trade Center (TWTC)
1986 28,239 1,554
Taiwan Exhibition Hall 1
Taipei Show Hall 2 (formerly TWTC
1999 5,543 331
Exhibition Hall 2)
TWTC Exhibition Hall 3 2003 7,481 365
TWTC Nangang Exhibition Hall 2008 4,536 2,465
TWTC Nangang Exhibition Hall 2 2013 (F) 47,255 2,650
Taipei County Exhibiton Hall 1999 4,235 238
Central Taichung World Trade Center 2000 4,851 250
Taiwan Taichung International Conference &
2008 (F) 4,300 500~1,000
Exhibition Center
Southern Kaohsiung Business Exhibition Center 2000 7,716 422
Taiwan Kaohsiung Exhibition & Convention
2011 (F) N/A 1,500
Center
Source: Exhibition hall websites; compiled for the present study, 2008/2

(II) An Analysis of Existing Gaps in the Industry Supply Chain, Investment

Niches, and Prospective Foreign Investors

The MICE industry incorporates a wide range of expertise that can be roughly
divided into three categories, including exhibition facilities, organizers, and peripheral
subcontractors. Putting an international exhibition together requires professionals from
a variety of fields, and those professionals are lead by Professional Convention
Organizers (PCO) and Professional Exhibition Organizers (PEO).

The MICE industry incorporates a wide range of services. Required hardware

includes onsite audiovisual equipment accomodating Internet connections, overhead
projection, exhibition design and decoration, stage design, audio construction, light
efficiency, and simulataneous interpretation. Non-facility-related services include
exhibition arrangement, public relations, marketing, planning, advertising media,
graphic design, tourism, insurance, and transportation.

MICE Industry Supply Chains in Taiwan

Convention Venues Exhibition Venues

Taipei International Taipei World Trade Center (TWTC) Exhibition Halls 1 & 3,
Exhibition
Convention Center (TICC), Taipei Show Hall 2, TWTC Nangang Exhibition Hall, Taipei
Halls
Civil Service Development County Exhibiton Hall, Taichung World Trade Center,
Institute, National Taiwan Kaohsiung Business Exhibition Center

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 University Hospita l (NTUH)
International Convention
Center, GIS Convention
Center, National Taiwan
Science Education Center
Professional Convention
Professional Exhibition Organizers (PEO)
Organizers (PCO)
Elite, GIS, K&A, API, International International
Foreign Domestic-sale
WILLY, Intercon , IECMC , Professional Exhibition
Organizers Exhibitions
Round Table, We Plan, Exhibitions Agents
Achieving Professional TAITRA, Taiwan ACE Forum, CMP Asia, Top Link,
Conference Organizer, TCM Textile Chieh Feng, Messe KJE, KTS,
Federation, WES Expo Frankfurt, Chia Yi
Exhibition TEEMA, Taipei Co., KAIGO, SEMI International,
Organizers Computer Golden Seal Economic
Association, Daily News,
TPCA, Taiepi United Daily
Book Fair New, ttnet.net,
Foundation, Trans Electric
PIDA, Chan Co.
Chao Exhibition
Hall, New Era
International Inc.
Notable Public Relations, Decoration, Utilities, and Transportation Firms; Travel Agencies
Peripheral- Foreign Firms Local Firms
Industry Uniplan, Olily Exhibition The Gleaner Inc., Hsing Li An, Sun Pro Int’l Travel Service,
Firms Design, Sta Translation China Economic News Service, SSXC International
Audio-Visual Co., Congress Rental, etc.
Source: Compiled for the present study, 2008/2

The Taiwanese MICE industry has the advantage of having a number of venues
that can accommodate events hosting under 500 participants, including the Taipei
International Convention Center (TICC), GIS Convention Center, TWTC exhibition
halls, and Kaohsiung Business Exhibition Center. In contrast, the gap in the industrial
supply chain is limited space for exhibitions, a problem that the opening of the TWTC
Nangang will help to remedy. The low floor space concentration remains an issue.
Compared with other Asian countries, which have 80,000-100,000m2 of concentrated

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available floor space, the local industry is lacking (TWTC exhibition halls have
approx. 26,000m2, and TWTC Nangang has approx. 45,000m2). Secondly, of the
nearly 100 professional and consumer exhibitions held at the TWTC each year, 20
international shows are hosted by TAITRA—this inability of local PEOs to put on
international exhibitions is another weak point in the industry. The third gap is in
international competitiveness. While other countries invest heavily to attract buyers to
their domestic markets, Taiwanese companies are spurred by the lack of exhibition
space on the island to participate in foreign exhibitions, as the scale of domestic
exhibtions is limited. Fourthly, development is unequal between the northern and
southern parts of the island. Exhibiters like to join exhibitions in Taipei because there
is a lack of proper exhibition space down south.

As exhibitions in Taiwan begin to transform into a service-lead industry, the

market stands to profit from know-how from European and American exhibition
companies, as well as collaboration with government and associations for the
immediate development of new shows. As there are very few foreign compaies
involved in the local market, there is still a room for peripheral industries such as the
public relations, interpretation, decoration, utilities, transportation, and travel agency
industries to flourish alongside. As for complimentary facilities, there is currently an
insufficient number of hotel rooms and venues that can accommodate international
meetings of over 500. The tourism and MICE industries can reap mutual benefits from
the establishment of international convention centers and hotels in scenic locations.

In order to promote MICE industry competitiveness and trade collaborations

between Taiwan and Korea, KINTEX chairman Mr. In-Shik Kim signed a cooperation
agreement with TAITRA in March 2008. KINTEX is the biggest exhibition center in
Korea and a joint public and private venture. Opened in April 2005, KINTEX resolved
the lack of exhibition space in Seoul, and greatly enhanced the Korean MICE
industry’s level of internationalization. Taiwan can learn from the experience of others
to develop its own domestic MICE industry.

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 In addition, foreign firms CMP Asia, Messe Frankfurt, and SEMI have set up
offices in Taiwan to recruit exhibitors for international exhibitions. Potential industry
suppliers include Uniplan and Olily of Germany, and well as STAR translation.
Uniplan has an outstanding international reputation and 40-years of experience in
display design and construction. Olily is expert at combining innovative construction
and materials with exhibition design to create a practical aesthetic.

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(III) Major Suppliers in Taiwan

The MOEA wants to expand the domestic exhibition market and promote the
international status of the local MICE industry through the integration of private
investments and government resources. They also wish to establish local exhibition
and convention companies that can compete with existing international firms.

Many internationally-renowned exhibition firms have subsidiaries in Taiwan.

Taiwanese exhibitors have always attended overseas exhibitions in the past, but we
now hope that said subsidiaries will not only invite their vendors or buyers to visit the
island, but also benefit the local economy by increasing employment opportunities.
Taiwanese PEOs can currently be divided into three categories—exhibition companies,
associations, and government. TAITRA, TEMA, Chan Chao Exhibition Hall, and New
Era International Inc. are all local firms in charge of professional international
exhibitions. ACE Forum, Wes Expo Co., and Kaigo are international exhibition agents.
United Daily News and Trans Electric Co. are responsible for domestic-sales
exhibitions.

In Taiwan, the first and largest private professional exhibition company is Chan
Chao Exhibition. It not only holds foreign and domestic international exhibitions and
conventions, but also publishes an industry magazine. In addition, they are responsible
for promoting world-renowned exhibitions and building digital exhibitions via the
Internet. The next largest, TAITRA, is an organization under the MOEA that promotes
Taiwanese MICE industry growth by holding 20-plus international exhibitions
annually.

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III. Optimum Investment Items for Foreign Investors
(I) Investment Advantages
1. Key Government Support

In the area of marketing for international exhibition hosting rights, the

government has spared no effort in upgrading high-potential exhibition halls. In
addition, the government offers generous subsidies to international exhibition
organizers who sponsor exhibitions in Taiwan. During the 2005-2007 period alone, the
government dealt out approximately US$2.6 million in subsidies to as many as 250
foreign exhibition organizers. To date, the government has successfully won hosting
rights for many significant events, including the World Games, Deaflympic Games,
WASBE, and IDA Taipei Congress, to be held in Taiwan.

Large-scale International Conventions and Events to be held in Taiwan (2009-2012)

Duration Activity titles City

2009.07.16-.26 World Games Kaohsiung City
2009.09.05-15 Deaflympic Games Taipei City
rd
2009 The 3 IWA-ASPIRE Conference & Exhibition Taipei City
2010 Asia Pacific Orthopaedic Association (APOA), XVI Congress Taipei City
2010.11.06- Taipei Internationl Gardening and Horticulture Exposition Taipei City
2011.04.25
2011 World Band Music Convention (WASBE) Chiayi City
2011 Taiwan Crafts Expo Undetermined
2011 IDA Taipei Congress Taipei City
2011 The Asia and Oceania Federation of Obstetrics and Taipei City
Gynaecology (AOFOG), XXII Congress
2011 Global Circuit Board Association Convention Taipei City
2012 Federation of the International Societies for Pediatric Taipei City
Gastroenterology, Hepatology and Nutrition (FISPGHAN), IV
World Congress
Source: Compiled for the present study, 2008/2

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2. Expert Taipei Exhibitions Featuring International Competitive Rdge

Thanks to elaborate efforts on the part of TAITRA—a long-time sponsor of

international professional exhibitions, Taiwan currently hosts 10 globally competitive
exhibitions, including Computex Taipei, the Taipei International Cycle Show, and
Taipei Int'l Auto/Motorcycle Parts & Accessories Show—ranked top three in the world
in their categories; the Taipei International Electronics Autumn Show, Taipei
International Machine Tool Show, and Taipei Int'l Plastics & Rubber Industry
Show—all ranked top three in Asia. These MICE industry events translate into
tremendous economic benefit for peripheral industries.

Take the world-renowned Computex Taipei for instance. Since its inception,
Computex Taipei has expanded by leaps and bounds. Held at the TWTC Nangang this
year, it hosted 1,500 industry heavyweights and lured over 35,000 expert international
buyers and many purchase orders to the island, greatly benefiting the local ICT
industry.

Ten Competitive Professional International Exhibitions in Taipei

International
2007
Ranking
Exhibition
No. of No. of Foreign No. of Local
Global Asia
Booths Buyers Visitors
Computex Taipei 2,926 33,027 96,624 2 1
Taipei International Machine Tool
2,778 4,180 71,140 6 3
Show (TIMTOS)
Taipei Int'l Auto Parts &
Accessories Show (AMPA) (a joint
exhibition with the Taipei 2,301 4,214 39,197 3 1
International Automobile
Electronics Show)
Taipei International Cycle Show 2,299 3,939 41,710 2 1
Taipei International Electronics
Autumn Show
2,058 4,185 67,318 -- 1
(Renamed the “Taipei International
Electronics Show” in 2008)

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Taipei Int'l Plastics & Rubber
2,028 2,242
Industry Show (Held every other 11,582 -- 3
(2006) (2006)
year)
Taipei International Book 1,831 Approx.
2,009 (2005) -- 1
Exhibition (Professionals) 320,000
TPCA Show 1,612 20,821 -- 2
Taipei Int'l Food Show 1,583 2,992 29,074 -- 2
Taipei International Sporting Goods
1,560 1,943 11,323 -- 2
Show
Source: TAITRA, 2008/2

3. World Leader in Industry Cluster Development

As the government puts forth its maximum effort for the promotion of the “two
innovations—technological innovation, brand innovation” and “two highs—High
technology-concentration, high added-value” strategies, Taiwan’s industry clusters will
continue to grow more competitive. In both 2007 and 2008, Taiwan was ranked No. 1
in the world by the World Economic Forum (WEF) in terms of industrial cluster
development, making it a role model for the entire world. In addition to brilliant
performance in the hi-tech industry, Taiwan has also successfully developed local
clusters of indigenous cultures, crafts, aesthetics, and other such conventional
industries, including the digital contents and ceramic clusters in Taipei; the CD-ROMs,
automobile, and glass clusters in Hsinchu; the bicycles, precision machinery and
musical instrument clusters in Taichung; socks and bicycle clusters at Changhua; and
TFT-LCD, IC, and sweaters clusters in Tainan.

In addition to remarkable exhibition halls, high-caliber human resources, and

professional facilities, teamwork and development efforts from affiliated industries are
also a key to successful MICE industry development. Taiwan has long been
praiseworthy for its brilliant performance in the communications industry. In other
fields including machine tools, bicycles, auto parts, sporting goods, and plastic
processing machinery & equipment, Taiwan’s performance has been equally
remarkable. To Taiwan, “industry” has become an important tool for boosting the
momentum of MICE industry growth.

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 “Industry” Providest Momentum to boost MICE Industry Growth in Taiwan

Source: TAITRA, 2008/2

4. Abundant Human Resources for the Service Industry

Taiwan is well-known for its highly educated populace, turning out more than
50,000 new masters degree and Ph.D. recipients each year, which is vital to its
information & communications, optoelectronics, semiconductors, and medical care
industries that win local hosting rights for numerous international conventions each
year. In order to facilitate MICE industry personnnel needs, the MOEA Department of
Commerce (DOC) has introduced the “High-caliber Service Professionals and Experts
Accreditation Project” as a means to support the nurturing of such personnel. In
addition to providing education & training programs for such professionals, the DOC
has tried hard to match the right professionals to the right trades, giving MICE
industry human resources the maximum level of upgrading and utilization.

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5. Abundant Cultural and Tourism Resources

A survey conducted by the Tourism Bureau (TBROC), Ministry of Transportation

& Communications (MOTC) aimed at foreign visitors to Taiwan showed that “fine
foods,” “scenic attractions,” and “friendly people” are the key to attracting foreign
visitors. Night markets, Taipei 101, and the National Palace Museum are rated as the
island’s foremost attractions. Government tourism policy implementation and tourism
promotions are currently in full swing, and the total number of visitors to Taiwan is
expected to reach five million in 2008.

6. Optimal Location in Asia’s Transportation Hub

Taiwan is located at the hub of the East Asian and Pacific regions, where all
major cities in the Asia-Pacific Region can be reached by air in an average of 2 hours
and 55 minutes. Taipei has the advantage of close proximity to these major cities, and
enjoys excellent access to both domestic and foreign destinations. You can reach 56
major cities worldwide through international routes, and domestic routes are operated
by no less than three airlines. In adddition, since service began on the Taiwan High
Speed Rail in 2007, inter-city travel has become extremely convenient, making a daily
commute between the northern capital of Taipei and the southern city of Kaohsiung
possible.

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(II) Investment Niches and Optimal Investment Items

The race to grasp exhibition related equipment and facilities by leading Asian
countries in recent years has lead to cutthroat industry competition. While Taiwan’s
MICE industry has only existed for a quarter century, it is the proud owner of such
leading brand names as Computex Taipei, TIMTOS, AMPA, Taipei Cycle, Taitronics,
and Taipei Book Exhibition (TIBE). In future, the government will continue to support
the construction of new exhibition halls for an ever stronger MICE industry.

OptimalForeign Investment Opportunities

Categories Investment Items

Facilities Commercial Building Design
International Convention Centers
Shopping Malls
Hotels
MICE Organizers Meeting & Conference Organizers
Exhibition Organizers
Peripheral Firms Public Relations Consultants
Translation Services
Media
Travel Agencies
Transportation Industry
Decoration & Design
Source: Compiled for the present study, 2008/2

In terms of hardware, commercial building design, international convention

centers, shopping malls, and hotels all make good investments for foreigners. Riding
the wave of the industry boom, we should be holding bigger exhibitions in better
convention centers. MICE industry success depends on both available facilities and
expertise, and this makes both public facilities at hotels and marketing specialists
important assets. Taipei City currently lacks adequate hotel rooms (with approx.
12,000 hotel rooms in total) and venues to accommodate large-scale international
conventions of over 500. The government is advised to boost constructions of
international convention centers and world-class hotels while taking advantage of local

17
scenic charms so that the tourism and MICE industries will closely complement each
other for their mutual benefit.

After winning the World Trade Centers Association (WTCA) Best Practice title,
the TICC is hoping to diversify their function from “provider” to “organizer.” Of the
nearly 100 professional and consumers-oriented exhibitions held each year at the
TWTC, over 20 international exhibitions are hosted by TAITRA, as private organizers
in Taiwan tend to lack the competence to sponsor international exhibitions. As
exhibitions in Taiwan are being gradually transformed into a service-oriented industry,
the market stands to profit from know-how from European and American exhibition
companies, as well as from collaboration with government or association for the
immediate development of new exhibitions.

Peripheral industries are the real winners when it comes to local exhibitions and
conventions. In addition to buyers and other visitors, international conventions bring in
tickets and hotel sales, as well as consumer and professional knowledge. In terms of
peripheral support industries, public relations consulting companies, translation firms,
media, decoration, utility services, transportation, and travel agencies all make for
good investments. At present, most Taiwanese enterprises fall into the
small-and-medium enterprises category and there are not many foreign enterprises
involoved in the MICE industry. As MICE in Taiwan is privy to many industry
advantages, such as plentiful high-grade human resources and ithe island’s location at
the heart of the Asia-Pacific region, peripheral industries are expected to thrive
alongisde the MICE industry as it continues to strengthen. In addition, Taiwan’s
information and communications, electronic components, semiconductor, conventional
machinery, and textile industries hold an immutable global position in their respective
industries, and their infinite development potential, in combination with local tourism
resources, makes for perfect conditions for foreign investment in the development of
an international MICE industry.

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IV. Successful Examples of Cross-Border Strategic Alliances and
Foreign Investment in Taiwan
(I) Uniplan (Germany)

Uniplan was established in Germany in 1960. Headquartered in Cologne, Uniplan

operates numerous branches in Paris (France), Basel (Switzerland), Budapest
(Hungary), Shanghai, Beijing, Hong Kong, and Taipei. Uniplan primarily offers expert
services in planning exhibition and public relations events, exhibition display planning
and design, visual image design, as well as museum planning and design.

In 1982, the Uniplan Group established Uniplan Taiwan in Taipei. In order to

provide its clients with integrated marketing services, Uniplan then established
Intercon Convention Management and Indeed Marketing Communications to meet
client needs for exhibition curators, brand planning, strategy analysis, innovative
design, project management, and on-site services. Uniplan currently organizes more
than 100 exhibitions and conventions worldwide.

Uniplan employs 80 full-time professionals in Taiwan. Long-term clients include

key enterprises and government institutions such as Far EasTone Telecommunications,
Gigabyte, EVA Air, China Motors Group (CMC), Unilever Taiwan, the TBROC,
Taiwan Visitors Association, TAITRA, Taiwan Textile Federation, Taiwan Association
of Machinery Industry (TAMI), and Taipei Electrical and Electronic Manufacturers’
Association (TEEMA).

(II) Messe Frankfurt (H.K.) Ltd. Taiwan

Germany is the most successful country in the world in terms of MICE industry
development, and Messe Frankfurt Ltd., with a EUR400 million turnover in 2006, is
the world’s second largest industry company after Hanover-based Duetsche Exhibition
Corporation. Of the 17,000-plus exhibitors in Frankfurt-based exhibitions in 2005,
four of its ten top exhibitor-origin area are in Asia; among them, China ranked 2nd,
India and Taiwan 3rd, and Hong Kong 8th. A key to Messe Frankfurt’s continuous
growth is the revenues earned by its overseas subsidiaries. Messe Frankfurt’s total
turnover in Asia in 2006 was approximately EUR50 million, which accounted for
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nearly half of its total overseas turnover. Its brand names in Asia include
Automechanika, Ambiente, Heimtextil, Interstoff, ISH, Techtextile, Beautyworld,
Light + Building, Musikmesse, Prolight + Sound, and Paperworld.

Since its establishment in 1994, Messe Frankfurt (H.K.) Ltd. Taiwan has been
responsible for attracting Taiwan-based firms to participate in European exhibitions. In
2006, more than 1,000 Taiwanese companies participated in exhibitions in Frankfurt.

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V. Industry Investment Incentives
In view of its global development poential, the Executive Yuan has
designated the MICE industry as a focal point in the “Challenge 2008 National
Development Plan,” and approved the “MICE Industry Development Project” on
July 8th, 2004. The “Executive Yuan Tourism Development & Promotion Committee
MICE Task Force” was established in November 2004, and is currently working on
integrating government resources.

As the supervisor of MICE industry development, the MOEA established the

“MICE Industry Development Promotion Task Force” as a single service-window to
map out MICE industry operating mechanisms, nurture industry development, attract
international MICE industry shows to the island, and elevate the international
competitiveness of Taiwan’s MICE industry.

Government Policies for MICE Industry Promotion

Year.month Highlights
2002.05 The Executive Yuan highlighted the MICE industry as a focus for its “Challenge
2008 National Development Projects.”
2004.07 The Executive Yuan approved the “MICE Industry Development Project” as a key
project for national development, to be implemented during 2005~2008.
2004.11 The “Executive Yuan Tourism Development & Promotion Committee MICE Task
Force” was established for the coordination and integration of agency resources.
2004.11 As a part of the “Guidelines and Action Projects for Service Development,” the
government made the “ MICE Industry Development Project” a flagship project for
tourism, sports, and recreational services.
2006.05 A single service-window was established for the “MOEA MICE Industry
Development Promotion Task Force” to establish MICE industry operating
mechanisms.
2007 The MOEA plans approximately US$18 million in investments for MICE promotions
~2008 and marketing. An estimated 30,000 local firms are expected to benefit from this
plan, which will attract 800,000 visitors to domestic exhibitions and 22,000 foreign
buyers to do business in Taiwan, thus creating a trade throughput of up to US$1.6
billion, with US$123 million in fringe benefits for peripheral industries.
2008~ Scheduled to begin construction in November 2008, the Kaohsiung Exhibition &
Convention Center is expected to commence operation in 2011.

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 Build up TWTC Nangang as a second-generation exhibition facility.
Source: Organized for the present study, 2008/2

In a bid to facilitate the rapid development of the MICE industry, the

Taiwanese government offers a variety of investment incentive measures,
including tax incentives, R&D subsidies, low-interest loans, personnel training and
meeting & exhibition assistance, as well as flexible immigration entry mechanisms
for participants, to assist MICE industry players and attract foreign investments.

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 Government Industrial Investment Incentives
Item Preference Contacts
Tax ※Statute for Promoting Private Public Construction Commission,
Participation in Public Construction Executive Yuan
http://ppp.pcc.gov.tw/pcc_site
E-mail: bot@pcc.gov.tw
Tel: +886-(0)2-8789-7500
※Regulations Governing Application of Taxation Agency, Ministry of
Profit-seeking Enterprise Income Tax finance, R.O.C.
Exemption to Private Institutions http://www.dot.gov.tw
Participating in Public Construction E-mail: b0@mail.mof.gov.tw
Projects Tel: +886-(0)2-23228421
Subsidy ※Principles Governing Subsidies for MICE Program Office, DOC
Meetings and Exhibitions Held in http://www.meettaiwan.com
Taiwan E-mail: mpo@meettaiwan.tw
Tel: +886-(0)2-2392-0788#106
※Commercial R&D Incentive Scheme Department of Commerce, MOEA
http://gcis.nat.gov.tw
E-mail: docmail@moea.gov.tw
Tel: +886-(0)2-412-1166
※Principles Governing Trade Expansion Bureau of Foreign Trade, MOEA
Subsidies http://cweb.trade.gov.tw
E-mail: boft@trade.gov.tw
Tel: +886-(0)2-2351-0271
※Regulations Governing Tax Tourism Bureau, R.O.C. (Taiwan)
Deductions for International Tourism http://www.taiwan.net.tw
Promotions Related Investments by E-mail: tbroc@tbroc.gov.tw
Tourism Industry Firms in Tel: +886-(0)2-2349-1500
Conjunction with Government Policy
※Guidance Measures for International
Tourism Promotions and Marketing
Efforts on the Part of Private
Organizations and Profit-seeking
Enterprise

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 ※Implementation Rules for Research, Development and
International Convention Related Evaluation Commission,
Incentives in Kaohsiung City Kaohsiung City Government
http://rdec.kcg.gov.tw
E-mail: kcgrdec@kcg.gov.tw
Tel: +886-(0)7-331-3942
Personnel ※International Experts Recruitment Department of Investment
Training Services, MOEA
http://hirecruit.nat.gov.tw
E-mail: hirecruit@taitra.org.tw
Tel: +886-(0)2-2370-9687
※Military Training Service Application Military Training Project Office
http://rondi.mnd.gov.tw
E-mail：mndsys@iii.org.tw
Tel：+886-2-2736-8088#3414
※R&D Substitute Service R & D Substitute Service Program
Office, Ministry of t he Interior
http://rdss.nca.gov.tw
E-mail: rdss@mail.nca.gov.tw
Tel: +886-(0)2-2736-6066#206
※Meeting and Convention Service Taiwan External Trade
Personnel Nurturing and Certification Development Council
Plan http://mice.iti.org.tw
※Meeting and Convention Service E-mail: stcheng@taitra.org.tw
Professional Certification Exam Tel: +886-(0)2-27255200#2570
Entry ※Operational Procedures for the MICE Program Office, DOC
Mechanism Mechanism Allowing Flexible Entry http://www.meettaiwan.com
by Foreign Nationals (Including PRC E-mail: mpo@meettaiwan.tw
Nationals) Participating in Tel: +886-(0)2-2392-0788
International Conventions in Taiwan
Source: Compiled for the present study, 2007/12

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VI. Industry-Academia Collaboration in Taiwan
The MOEA planned to invest approximately US$18 million into MICE
industry promotions and marketing in 2007 and 2008, with the aims to implement
12 related measure such as providing impetus for industry development in central
and southern Taiwan, the nurturing and certification of meeting and exhibition
professionals, as well as the stimulation of export trade growth to further elevate
Taiwan’s international standing with reference to the MICE industry. An estimated
30,000 local firms are expected to benefit from this plan, which will attract some
800,000 visitors to domestic exhibitions and 22,000 foreign buyers to do business in
Taiwan, thus creating a trade throughput of up to US$1.6 billion, with US$123 million
in fringe benefits for peripheral industries.

Taiwan is actively promoting MICE industry development through the

integration of its government organizations, and corporate and industry
associations.

MICE Collaborating Promotional Institutions in Taiwan

Institution Website
Council for Economic Planning and Development www.cepd.gov.tw
Department of Commerce gcis.nat.gov.tw
Department of Investment Services www.dois.moea.gov.tw
Bureau of Foreign Trade www.trade.gov.tw
Meeting Exhibitions Events Travel www.meettaiwan.com
Tourism Bureau www.taiwan.net.tw
Research, Development and Evaluation Commission, rdec.kcg.gov.tw
Kaohsiung City Government
Taiwan External Trade Development Council www.taiwantrade.com.tw
Taipei Exhibition & Convention Association www.texco.org.tw
Taiwan Convention & Exhibition Association www.taiwanconvention.org.tw
I-Lan International Convention & Exhibitions Association www.icea.org.tw
Tainan Convention & Exhibition Development Association www.tceda.org.tw
Kaoshiung Convention & Exhibition Association www.kcea.org.tw
China Productivity Center cpc.tw
Taiwan Institute of Econonic Research www.tier.org.tw

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Source: Compiled for the present study, 2007/12

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