International Understanding
From the Caribbean and Latin America to Europe and Asia, international destinations continue to be a growing consideration for meeting managers whose organizations have a global reach. According to the International Congress and Convention Association, the U.S. is the No. 1 country generating international meetings. And worldwide, there were 826 more international events in 2010 than the previous year. The ICCA attributes part of the increase to scientific and technological developments that require companies to discuss these complex changes face-to-face. While budgets remain tighter than ever, many international cities are pushing incentives to encourage planners to bring their meetings abroad.
When considering hotel and meeting venues in international destinations, it is important to craft a request for proposal that includes as much attendee demographic and historical information as possible, even if the meeting was not held in that country previously. It is also important to provide an estimated per person budget, keeping in mind that most international properties include breakfast with the room rate. Many countries also package the meeting requirements into a separate rate often referred to as the daily delegate rate (DDR). This rate would include the meeting space, coffee breaks, lunches in the restaurant, writing materials and basic audiovisual such as a projector and screen. If you are looking for a private lunch not in the hotel restaurant, this might incur a surcharge on top of the DDR. The hotel also will require international groups to pre-pay the cost of the meeting space in full. Transportation and tour companies require 90 to 100 percent pre-payment. Many international properties will charge a fee for payment by credit card. Inquire what the supplier’s policy is and request that the fees be waived.
Sanphet Prasat Palace, Thailand
Contract concessions typical in the United States, such as complimentary meeting space and a 24-hour hold on that space, are not the norm and should not be assumed. “In terms of Asia, the priorities and objectives of the hotels can be very different than in North America,” says Joan Orentlicher, CMP, assistant vice president, meetings, conference and travel for LOMA and LIMRA, both worldwide organizations in the insurance and financial services industry. “Hefty fees for meeting space are always a part of the contract, but you may get many inclusions.” She says that because Asians take great pride in the appearance of the meeting, these inclusions might be chair covers, high-end tablecloths and floral centerpieces. VIP waiting rooms and built-in translation booths are also standard inclusions. Orentlicher says it’s also difficult to negotiate a 24-hour hold on meeting space in Asian countries where local social events take high priority and are often associated with the country’s royalty or government officials.
It’s then important to allow more time for the contract negotiation process when dealing with foreign countries. Ping He, CMP, director, global sourcing and partner relations for Experient Inc., suggests building in more time to account for time zone and language differences as well as forming a relationship with the sales person. “Sales people are not as incentivized to close the deal as they are in the U.S.,” he says.
When writing the RFP and negotiating the contract, be careful not to use words that would be understood by American suppliers, but unclear to service providers abroad. For example, requesting a “light lunch” might have a different meaning in Latin America and even more so in Asia. It is better to provide the number of courses required and use basic descriptors such as a meat, poultry or fish entree, starch, vegetable and dessert. “Use simple English in your communication with non-English speaking countries,” he says. “We know what ‘How many rooms have been picked up?’ means in the states, but a manager of a small Italian hotel will not understand. Say instead, ‘How many rooms have been used or actualized?’ and you will get a quicker response.”
Understanding the culture and business protocol is very important when planning international meetings. “There are many international protocol books available and the local hotel staff is usually more than willing to help navigate through the differences,” Orentlicher says. “Never assume anything is the same as you experience in North America.”
Paulette Hopkins, president of the Hopkins Alliance, suggests contacting the destination’s tourist board and working with a local destination management company to help navigate cultural disparities. “Research the country’s holidays and bank holidays,” Hopkins says. “Unlike America, other countries honor their holidays and most businesses are closed.” She points to an example where the word “weekend” does not always mean a Saturday and Sunday for Muslim countries. “For most Muslim countries, ‘weekend’ means Friday and Saturday as Friday is a Muslim holy day,” she says.
While planning your budget, be aware that hotel room rates, meals and services will include a value-added tax or VAT, which could be as much as 15 to 20 percent. Because visitors or non-residents of the country do not technically owe the tax, groups can request a refund to reclaim all or part of the charges. It is important to request that the VAT amount be separated so you can keep track of the charges and file for a refund. “I recommend working with a VAT reclaim services company,” she says. “It can be a complex process and take up to a year to reclaim.”
Click on the image to read "Border Crossing" for information about Canadian meetings
Airport entry fees and visa requirements are also budget considerations. Argentina, for example, charges a $140 entry fee, which is valid for up to 10 years and multiple visits. A passport is required to enter and leave most foreign countries and if your attendees include young adults, it is important to verify that they have this essential travel document. The U.S. State Department strongly advises American citizens to register their travel abroad with the Department of State. Registration makes it possible to contact the traveler in the event of a family emergency back in the U.S. or to alert of a crisis in the visiting country. Note that U.S. medical insurance is generally not accepted outside the country, but short-term policies can be purchased for travel abroad.
When considering a hotel, venue or mode of transportation for your group, remember that the Americans with Disabilities Act is a North American requirement. Historic hotels, which are often smaller in European destinations, may not contain elevators or be accessible to attendees with special needs. International shipping requirements also vary from country to country. To avoid delay of your shipment in customs, it is best to use a broker based in that country who is familiar with the guidelines and has influence to move your materials if necessary.
“Running international meetings requires a different skill set,” Orentlicher says. “But once you dive in, you will become a global specialist in no time.”
TIPS | Read additional information about passports, mobile phones, fees and more here.
