Mexico offers a VAT exemption that eliminates sales tax on congresses, conventions and exhibitions held by foreign companies in the country. While the exemption doesn’t cover incentive travel, food and beverages served at convention centres, it does cover transfers between hotels and meeting places, related event services such as set-up, registration, translators, hosts, audio visual equipment, decoration, security and cleaning.
Business tourism
Business tourism accounts for around 25 per cent of Cancun’s total tourism. The Cancun Convention Bureau says the majority of this business is made up of incentive trips. “The conferences that take place here are more on a global level, but participants from Europe are more attracted to the area now we have the direct flight from London,” said a spokesman. “We actually hope to concentrate our marketing efforts on the UK now on the back of the flight launch. Europe is also a key destination for us, especially Spain,” a spokesman added.
Cancun currently sits in 106th place in the International Congress and Convention Association (ICCA) city rankings with 16 qualifying meetings. The destination was thrown into the spotlight in December 2010 when it hosted the United Nations Climate Change Conference, COP 16/ CMP6 across 12 days at the Moon palace Hotel and Cancun Messe. This was a huge coup for the area, which says one of its largest challenges is changing “negative perceptions”. Cancun Convention Bureau says it is always competing against Rio, Buenos Aires and Costa Rica for business, and also some other Caribbean destinations. “For meetings we feel we can compete with the likes of LA, Las Vegas, Florida and Singapore and because we have excellent accessibility from South America, North America, Europe and Asia, we are in a really good position,” the Cancun Convention Bureau spokesman said.
Cancun has 4,700 hotel rooms all within walking distance of its convention centre and Cancun CVB says its charm as a meetings destination is its “service levels, infrastructure, variety of options, knowledge on the ground all making life easy for event planners”.
The meeting planner’s view:
Sorcha Flynn
Global Teamwork
Business Development Manager
I could see Cancun lending itself very well to the incentive market, with 80 per cent of hotels being five-star it is exactly the standard of hotels and service that you would require for an incentive trip. It also offers good weather, beach and cultural and adventure activities for groups.
I currently have an incentive client who I could definitely offer Cancun to for its 2012 event, its requirements are good weather and top-class hotel so it matches well. The standard and service of the hotels really impressed me along with the fact that each was beach front, with almost all of the rooms having a sea view, hard to find in other destinations. I would be a little concerned that once out of the hotel some of the bars/restaurants may be somewhat tacky although in general especially incentive groups like a good night out.
The new flight route back to the UK is great, being however that some of my clients are based in Dublin it still may not be attractive enough for them as direct routes for short incentives are a must, but I could certainly see how this would work for UK clients.
Hazel Moss
Jarvis Woodhouse
Events Director
My perception of Mexico, especially Cancun, has really changed. I expected a built-up area with tacky unattractive bars and hotels and was very surprised as to how nice the hotel zone area was. I feel the area really lends itself to the conference and incentive markets.
We do not have anything planned for Mexico at the moment but would highly recommend it now after visiting and experiencing it first hand. We would probably use it more as an incentive destination with possibly a small meeting rather than for a large conference (at the moment).
I was impressed with the hotel offerings and their flexibility to hold small and large events. There were lots of activities for incentives and conference groups. The added bonus of getting the 11 per cent VAT back would be a big plus.
The only disappointment I had was the queues and time encountered on arrival at Cancun Airport, I think it would be chaotic getting a large group through, so feel this needs addressing
To have a direct flight from London is far more beneficial for our clients and a big plus point to attract them to Mexico. I question whether Virgin may change its flight from London as at the moment it flies to Miami where you have to change planes to go to Cancun.
Helen Aspinall
AYMTM
Project Manager
The main thing for me with regards to Mexico is the level of service you get and everyone is happy, smiling and can never do enough for you, without it being pretentious and in your face. Despite it being Spanish, everyone in the hospitality industry has such a good grasp of English that the language is not a barrier.
With the direct flight from London, and many other destinations, it lends itself to not only big conferences with great facilities (lovely big meeting rooms, outside space) but also to smaller, incentive type events, where attention to detail is key. There is a plethora of hotels, offering such a variety of styles to suit all types of groups.
We have a very high-end incentive group going in June and the new BA direct flight was a deal-clincher with regard to getting there, and the destination has so much to offer for both business facilities and leisure.
The area is rich in culture with a lot to see and do with the coral reefs, gorgeous beaches and Mayan ruins.
Any comments? Email vcarley@mashmedia.net
