Overseas meeting and incentive programs entail many factors that can be head-spinning for those whose planning experience is limited to the U.S. This article discusses the major considerations when planning international programs, including resources you can tap for help.
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BACKGROUND
Why take a group to another country? Your organization may well have a valid business reason: for example, the presence of a subsidiary or a significant customer base in a foreign country. What's more, for many Americans, sampling a foreign culture is a singular experience. Thus, taking a group overseas--to the snowy Alps of Switzerland, to the exotic reaches of Thailand, to the ancient wonders of Egypt--is a powerful motivator and a handsome reward. But international meetings also mean greater challenges for the meeting planner. They differ from domestic meetings in these ways:
Lead times. A meeting in North America can be arranged on short notice. Not so for a meeting that must cross an ocean. It will take you more time to find appropriate hotels and vendors in, say, Brussels than in Boston. It will take you longer to negotiate contracts with those suppliers because of cultural differences and the time difference. It will take you longer to ship meeting materials overseas. And all your attendees must have valid passports. You'll need to build time into the planning process for people to obtain passports before they leave the country.
Hotels. A hotel is a hotel is a hotel? Not necessarily. In some countries, guest rooms, meeting space, and amenities are far different from those in U.S. hotels. An important consideration for the budget: Groups almost always pay to use hotel meeting space overseas.
Cost and currency. An overseas meeting usually will be more expensive than a comparable domestic meeting, the aforementioned hotel meeting space rental being just one reason. Taxes overseas are higher, too. Plan on budgeting generously. Also, paying meeting costs in the currency of the destination, rather than in U.S. dollars, necessitates some maneuvering on the meeting planner's part.
Culture. Even something as seemingly straightforward as extending a business card is done differently outside the U.S. (in some countries, for example, it matters if you offer the card with your left hand or your right). It's important for the meeting planner to be versed in the national culture and protocol.
Security. The destination's political stability, not a factor with U.S. programs, is an issue to be considered in many parts of the world.
Preparing attendees. Do not assume that attendees are versed in the ways of the country. You'll need to provide them with information to ensure their safety and enjoyment.
Tax deductibility. Under International Revenue Service regulations, travel costs associated with foreign business meetings are not readily deductible as a business expense.
HELP IS ON THE WAY
The meeting planner charged with organizing an overseas meeting or incentive program should not feel as if he or she is in this alone. There is help out there, some free, some at a price.
National tourist organizations (NTOs). Almost every country has one, and many NTOs have offices in the U.S. The NTO promotes travel to its country and is a clearinghouse for tourism information. At the very least, the NTO will provide literature and lists of suppliers. The NTO also can help arrange a site inspection visit for you. The NTO usually does not charge for its services.
Professional congress organizers (PCOs). Think of the PCO as a well-connected meeting-planner-for-hire. This type of specialist is common outside the U.S., especially in European cities. A PCO can take over the site-selection process for you, negotiate with hotels and other suppliers, handle accounting matters and on-site logistics, advise on tax matters, and shepherd paperwork. In short, it will take charge of the program. Richard Porth, manager of training administration and meeting planner for McKinsey & Co., New York City, says, "When you haven't a clue, when you don't know the country and its culture, when you don't know the hotels, when you don't have the time or resources to make a site selection, a PCO can do the job."
Destination management companies (DMCs). This supplier, common in the U.S., is sometimes confused with a PCO. Overseas, some DMCs provide many of the same services as a PCO, such as site selection and hotel negotiation. But in general, a DMC is more of a ground-operation specialist, adept at shuttling attendees around cities and organizing tours and special events. "Because of the time and expertise one must have when doing a meeting overseas, I can't imagine working without a DMC or a PCO," says Jane Schuldt, whose Minneapolis company, World Marketing Group Ltd., is a marketing representative for DMCs and PCOs in ten foreign countries.
Other meeting planners. Your colleagues who've held meetings in the country where you're heading are a valuable resource. They can recommend hotels and suppliers and candidly fill you in on the destination's potential pitfalls.
CHOOSING A HOTEL
When researching hotels, start with the NTO, either by calling its U.S. office or visiting its Web site. Check any of the print hotel directories that serve the travel and meetings market (see Publications). And always ask for recommendations by other meeting planners familiar with the destination.
"If you have a relationship with a major U.S.-based chain, call the office in the U.S., ask for the international sales rep, and find out if they have properties in the destination," says international meeting specialist Ulla Buchner-Howard, managing director of UBH International Services Inc., New York City. The NTO can provide you with contacts at other hotels in the destination. After you have whittled down the possibilities, it's best to visit those on your short list to look over the facilities and meet hotel personnel face-to-face (see Site Inspections). After you have chosen a hotel, you can go back and forth with people by phone, fax, and e-mail as you work out the contract.
What to look for in a foreign hotel? The same things you look for in a domestic hotel: a sleeping room block large enough for your group and the ability to service your group's requirements for meeting space, food and beverages. That said, foreign hotels, especially those not affiliated with a major chain, differ greatly from domestic hotels. Consider Europe, where hotels tend to be older and have smaller guest rooms and limited meeting space. Note: Meeting space overseas almost always is measured according to the metric system. To convert space to square feet, multiply the square meters by 10.77.
SITE INSPECTIONS
Ideally, you will be able to visit a number of hotels in the destination before selecting one for your group. The NTO or your PCO may be able to make discounted or complimentary arrangements for your site-inspection tour. Of course, a site inspection is not always possible when dealing overseas, especially if you are operating within a tight time frame. In that case, you may be able to conduct a virtual "tour" of the facilities via the Internet. Many hotels use this medium to offer highly realistic walk-throughs of their facilities via their Web sites.
NEGOTIATING WITH HOTELS
If the hotel is part of a major chain, you may be able to deal with a sales representative in the U.S., or, if you're engaging a PCO, expect that supplier to negotiate on your behalf. That may be to your advantage, since PCOs have long-standing relationships with local hotels and are able to land favorable rates more readily than a planner situated an ocean away. Regardless of the country, you'll be negotiating in English, but the contract may not be in English. "Usually it is, but in Japan, for example, hotel contracts are in Japanese and have to be translated," says Carolyn Lugbill, a Washington, DC, consultant to associations.
Because many European hotels are historically banquet-driven, they are not likely to waive fees for meeting space, as is often the case in the U.S. "In Europe, many hotels were built for the carriage trade, and their meeting space was built to handle social functions, weddings, and receptions," says McKinsey's Porth. "Over the years, this space has evolved as a profit center for the hotels. They make their money on banquets and dinners. So when you say to the hotel, ÎLook, I'm taking 100 of your sleeping rooms, let me have the meeting space for nothing,' the answer is no." You can expect the same answer in most other parts of the world, too.
Here are some other factors that will color your dealings with foreign hotels:
Cancellation. Foreign hotels may be less willing to negotiate the terms and conditions under which contractual obligations can be terminated.
Attrition. Hotels are strict about attrition, especially in Europe, where hotels are smaller and driven more by transient business. That is, if your group blocks 125 rooms and you fill only 120, the hotel will likely charge you for 125 rooms. Says Porth: "In the States, I can negotiate a 5 to 10 percent attrition slippage, but in smaller hotels in Europe, every room is more valuable to the property. Sometimes, the hotel will allow you no slippage at all. Fortunately, this is more open to negotiation than it was, say, five years ago."
Deposits. The hotel will insist on a deposit schedule. But, because of the uncertainties tied to international programs, it is in the group's best interest to consider an alternative means of leaving a deposit. One way is to establish an interest-bearing escrow account at the overseas destination, whereby the deposit money does not become property of the hotel until after the meeting. Or you can use an irrevocable standby letter of credit, in which a mutually agreed-upon local bank holds the funds until certain conditions are met. These financial instruments protect the group's deposit in the event of the hotel's bankruptcy, while assuring the hotel that the group will make good on its payments.
CURRENCY FLUCTUATIONS
You can sidestep the intricacies of currency exchange and fluctuation by negotiating with suppliers to make payments in U.S. dollars. In countries with weak or unsteady currencies--that includes many countries in Latin America, Eastern Europe, and, recently, Asia--suppliers will be happy to oblige. Countries whose currency is pegged to the U.S. dollar (several in the Caribbean are examples) also make it easy for the planner. But in Western Europe, you'll probably have to pay in the local currency.
A currency broker or a bank with international operations can advise you on how to proceed in a way that protects your organization from currency fluctuations. The further out the meeting, the greater the risk. "It's very difficult to anticipate what's going to happen with a nation's currency a year from now," says Audrey Bird, managing director of International Meeting Planners Ltd., New York City.
One safeguard is to purchase a forward contract, an agreement to buy a specific amount of foreign currency at a predetermined time based on the current exchange rate. Forward contracts can be purchased from a bank or a currency exchange firm periodically during the planning process. Another option is to open a temporary bank account in the country where the meeting will be held.
DEALING WITH AIRLINES
Is there sufficient lift to the destination for your group, either on a U.S. airline or the country's national carrier? That is a key point to raise at the outset of the planning process. Because of the bilateral air agreements between the U.S. and other countries, don't expect U.S. carriers to offer you as much of a group discount as they might on domestic flights. Ask about airlines' services, such as meeting promotion, special treatment for your attendees, and the movement of freight. Many airlines provide advice and information about destinations as part of their marketing efforts.
MEETING SERVICES
Translating and interpreting. Translation refers to the conversion of the written word from one language to another. You'll need to provide translation for business sessions only if texts of speeches and other documents are to be submitted in more than one language. Interpreting refers to conversion of the spoken word. Hiring interpreters is expensive and is usually reserved for meetings and conventions that require the instant exchange of ideas among participants who speak different languages.
Audiovisual. Unlike major U.S. business hotels, foreign hotels do not always provide audiovisual equipment and service. You may have to go to an outside supplier or ship AV equipment over. Remember, though, that your equipment may be incompatible electrically and need to be adapted. If you're counting on playing your videotapes at the meeting, however, you may have to use your own machine, because the tapes may be incompatible with the equipment at the destination. Your hotel, your PCO, or your DMC can help you through this thicket.
PROGRAM PLANNING
One of the main reasons to take a meeting or an incentive group to a foreign country is the opportunity for attendees to see sights new and fascinating to them. The planner, then, should build in significant time for attendees and their spouses or significant others to explore the destination, either in a group or on their own. This could include day-trips, or even overnight excursions, to nearby areas offering a different taste of the country. Planners should take full advantage of the destination's cultural, historic, and gastronomic resources, including museums, castles, restaurants, and theaters. Many of these make their facilities available for group receptions, dinners, and outings.
Because your attendees will have flown a long way, give them sufficient time on the first day to shake off the effects of jet lag. Do not overschedule them during their first 24 hours. In devising the program, also consider that meal times should conform to local custom. "I had a client who was doing a meeting in Argentina who wanted to schedule her dinner functions at 6 p.m.," says Bird of International Meeting Planners. "But in Argentina, people never eat dinner that early." Local holidays and daily siesta times may also influence your scheduling.
SHIPPING
If all you are bringing over is printed materials, such as handouts or brochures, check into having the materials printed on site at your destination. That will relieve you of the burden and expense of overseas shipping. Your hotel, NTO, or PCO can help line up a local printer. (Paper sizes can differ abroad; be sure to ask.) In the case of simple shipping requirements, you can engage the services of an air-freight service.
Shipping becomes more involved, however, when moving such items as exhibit booths, computers, expensive gifts, and videos. That usually requires extensive paperwork, customs clearance, and payment of fees. The wide variety of national customs regulations does not make this aspect of the planning process any easier. If your shipping needs go well beyond just handouts, you may need to hire an international freight forwarder and a customs broker. The freight forwarder transports your goods and helps prepare the documentation; the customs broker processes paperwork and handles the payment of fees when the goods reach the foreign destination. Some freight forwarders serve as customs brokers as well. You can locate freight forwarders and customs brokers through the Yellow Pages or by asking meeting planners experienced in international programs.
There are a number of points to discuss with your forwarder. Should your goods be shipped by air or sea? By air is usually faster; by sea, cheaper. Are you shipping exhibit booths and materials? Some forwarders specialize in these. Should you purchase a carnet? Think of a carnet (pronounced car-NAY) as a visa for merchandise. Valid for one year, it allows you to avoid paying import duties on shipments. It also enables you to avoid paying a temporary import bond, which otherwise might be required to guarantee that you will take the merchandise back with you and not sell it there.
The carnet is accepted in about 50 countries, including Canada, most countries in Europe, and many in Asia. You must acquire the carnet before leaving the U.S. It is available through the U.S. Council for International Business in New York City. Call 212-354-4480.
SECURITY, SAFETY, AND HEALTH
Risk planning should always be a part of a meeting checklist, even more so when the group is leaving familiar terrain. Points to consider:
- Is the country's political situation such that it is safe for Americans? European countries and major Asian and South American countries are generally safe. Some countries in the Mideast and South America are less so. The U.S. Department of State issues travel warnings and comments on the safety of countries through a recorded line. Call 202-647-5225. Or call the Department of State's office of public affairs and ask for the officer specializing in your destination country. Call 202-647-6575. Phone numbers of U.S. embassies and consulates overseas, which should be your initial contacts in the event of an emergency, can be obtained from the officers. Much information, too, is available through the Department of State's Web site. Click on http://www.state.gov.
- Are there any health hazards associated with the country? Bear in mind that such things as high altitude or stifling heat and humidity can pose a hazard to attendees with certain health conditions.
- Are immunizations required to visit the country? The Department of State resources mentioned above can be helpful, as is the U.S. Centers for Disease Control and Prevention, which operates a recorded Travelers Hot Line at 404-332-4559. Or, visit the Web site at http://www.cdc.gov.
- What are the health facilities like at the destination? Are they accessible to the meeting site?
- Does your organization have a disaster plan covering such eventualities as political and health emergencies? There are a number of international companies that offer medical assistance to travelers, including emergency evacuations.
- Does your organization's insurance provide coverage for events outside the U.S., or is additional insurance required? Consult your insurance carrier.
- Are your attendees aware that foreign countries have strict laws forbidding the possession or use of marijuana and other illegal drugs? Penalties tend to be much harsher than in the U.S.
CULTURE
No aspect of the meeting planning process is as fraught with potential mine fields as adhering to the business protocol and culture of the destination. Knowing the ins and outs--how to extend a business card, how to greet business contacts, what gestures to avoid, what gifts (if any) to exchange with business contacts--will give you a leg up when negotiating with suppliers. It will also help you avoid embarrassing faux pas during negotiations and later on at the meeting. It is a prerequisite to thoroughly research the culture of the country you'll be going to. For example, the Japanese prize harmony, which means that during negotiations your counterpart won't come out and say no. That raises the possibility of misunderstandings and unpleasant surprises at the time of the meeting. The Japanese also value gift-giving, but not just any gift; gifts carrying a company logo are frowned upon. Even the color of the wrapping paper matters: to the Japanese, white represents death.
Where is the best place to get advice on cultural matters? The NTO is a start. Another excellent source is Brigham Young University's David M. Kennedy Center for International Studies, which publishes four-page briefings, called Culturgrams, on 163 countries. Updated annually, Culturgrams discuss a nation's background, people, customs, courtesies, and government (see Publications). There are also several good books on this subject (see Books).
Always look for ways to incorporate local culture throughout your program--in food functions, entertaining, and especially in pillow gifts left for attendees. "If you're going to Thailand, study up on that temple around the corner from the hotel," says Buchner-Howard of UBH International Services. "Put little mementoes of the destination in your attendees' rooms, like a book of Hindu poems. Don't ship over little Tiffany spoons as a pillow gift; you want something reflective of the destination."
TAX DEDUCTIBILITY
Organizations or individual attendees hoping to deduct as business expenses the costs associated with a foreign program should consult a tax adviser or attorney. For expenses to be deductible, the organization must prove to the Internal Revenue Service that it was "as reasonable" to hold the meeting outside the North American region as in it. (The region is defined as the U.S., Canada, Mexico, and some Caribbean islands.) Also, expenses must not be "lavish and extravagant." How can organizations meet the "as reasonable" test? One way is to pack the meeting or incentive program with business or educational content. Another is to show that there was a legitimate business reason to hold the meeting in a particular country. Similar standards of proof apply to individuals who want to deduct their expenses for attending a convention overseas.
THE VALUE-ADDED TAX
Imposed on a range of goods and services, including hotel sleeping and meeting rooms, the value-added tax in many countries can add 15 to 17 percent to meeting costs, sometimes more than 20 percent. "In Europe, the VAT is extraordinarily high, and you should always ask if price quotes include it," says McKinsey's Porth. "You have to make darn sure you understand the notion of VAT and then budget for it."
Many countries, however, will refund the VAT, and there are "reclaim services" that will jump through hoops on the meeting group's behalf. Note: You'll need the original supplier invoices, with the VAT amount broken out. One such company is Meridian VAT Reclaim in New York City. Call 212-554-6600.
PREPARING ATTENDEES
Do not assume that your attendees are experienced globetrotters, wise to the ways of foreign lands. The planner should provide attendees with pertinent information about the destination. Consultant Lugbill suggests assembling this in a booklet that can be given to attendees early in the planning process and, if necessary, updated at departure. Consider covering these areas:
- Procedures for acquiring a passport.
- Procedures for acquiring a visa (if required)
- Procedures for receiving vaccinations (if required)
- Type of clothing appropriate for group functions and free time; any cultural restrictions on dress
- Packing tips
- Baggage weight and size limitations, luggage tags
- Typical weather conditions, temperature range; don't forget geographic or climatic factors that might exacerbate an attendee's existing health problem
- Tips on combating the effects of jet lag
- Duties and customs regulations; what do visitors need to know about bringing items into the destination country and taking items back to the U.S.?
- The local currency and its relationship to the U.S. dollar
- Key phrases in the local language
- A primer on cultural attitudes
- What to tip cabdrivers, bell staff, chambermaids
- What type of electrical adapter is required in order to use shavers and hair dryers
- Prescription drugs (to avoid their being mistaken for illegal drugs, bring required medicines in the original containers, and bring the prescriptions, too)
- Time zone
- A city map
- Address and phone number of the nearest U.S. embassy or consulate
- Address and phone number of the hospital nearest to the meeting site
- How to use telephones, and the local equivalent of 911
- Attractions, points of interests
- Bank hours, automated teller machines
ASSOCIATIONS
Foundation for International Meetings is composed of corporate and association meeting planners whose organizations have an ongoing international meetings program. The institute, which has an annual meeting in Washington, DC, also sponsors a series of International Meeting Institutes, in which suppliers from a specific overseas destination show off their destination. The institutes include seminars on how to hold a program in the destination. Air and hotel costs associated with attending the institutes are usually complimentary or discounted. Call Gail Belford, director of operations, at 703-908-0707.
International Congress and Convention Association (ICCA) represents airlines, NTOs, convention centers, travel agents, DMCs, PCOs, and other suppliers in the international meetings market. Its 500 members do business in 70 countries. The Amsterdam-based association has an office in suburban Washington, DC. Call Karin Van Der Cammen at 301-365-5238; fax 301-365-8026; e-mail maito:105157.3632@compuserve.com
Meeting Professionals International (MPI), the largest organization for meeting planners and meeting-industry suppliers, makes articles, books, and other research materials available through the MPI Resource Center. Call Pamela Freeman, resource center manager, at 972-702-3085; fax 972-702-3069; click on http://www.mpiweb.org.
Society of Incentive & Travel Executives (SITE) maintains a research library, and its educational programs are an excellent source of information. Call 212-575-0910; fax 212-575-1838; click on http://www.site-intl.org.
International Association of Professional Congress Organizers (IAPCO), based in Brussels, is a worldwide organization for PCOs. Call 011-32-2-640-7105; fax 011-32-2-640-4731; click on mailto:tracklink@@http://www.iapco.org./
TRADE SHOWS
For a list of Industry Events, go to #9510, Calendar of Industry Events.
BOOKS
The vast majority of books about meeting planning treat the topic generally, focusing on such things as logistics or getting the most out of business conferences. However, there are several books that anyone responsible for planning overseas meetings will find helpful. For example, the books in Roger E. Axtell's Do's and Taboos series, while not specifically about meeting planning, have a wealth of information that applies to the meetings industry. Axtell, a former marketing executive who once was special assistant to the governor of Wisconsin for business issues, is one of the foremost experts on dealing with foreign regulations and culture. All of the books in the series are available through Amazon.com.
The Do's and Taboos of International Trade--A Small Business Primer (1994) has excellent chapters on business protocol, communication, shipping goods abroad, and negotiating with the Japanese. 336 pp. $14.36.
Do's and Taboos Around the World (1993) has cautionary tales from business travelers and includes brief notes on customs and culture, arranged by country. 208 pp. $12.76.
Do's and Taboos of Preparing for Your Trip Abroad (1994) is a comprehensive checklist that anticipates questions arising in foreign travel. Based on a telephone survey of 20,000 business travelers, it gives advice on everything from passports and visas to car rentals and exchanging money. 160 pp. $10.36.
Do's and Taboos of Hosting International Visitors (1990) is a guide to everything from entertaining and business protocol to corporate gift giving and the role of interpreters. 236 pp. $14.36.
Do's and Taboos Around the World for Women in Business (1997) addresses a wide range of issues, including safety, body language, health concerns, and dating. A country-by-country listing provides the rules for such things as proper dress, speech, and table manners. 252 pp. $13.56.
The following books will also be helpful to those planning an overseas meeting, convention, or incentive program:
Professional Meeting Management (1996), as near as the meeting industry has to a bible, is published by the Professional Convention Management Association. Recently updated, the book, which has an extensive chapter titled "International Meetings and Expositions," is available only through PCMA. $49.95 members, $54.95 nonmembers. Call 205-823-PCMA.
Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries (1994) by Terri Morrison, Wayne Conaway, and George A. Borden, is useful for anyone planning a program overseas. It presents profiles of 60 countries visited frequently by U.S. executives and meeting attendees. Topics include business entertaining, greetings, gestures, dress, forms of address, and gift giving. 438 pp. $15.96.
PUBLICATIONS
The meeting magazines listed below regularly cover international meeting planning and publish articles and stand-alone supplements about overseas destinations. They are free to qualified subscribers.
Meetings & Conventions. Monthly. $79.90/yr. Call 800-446-6551; click on http://www.meetings-conventions.com.
Successful Meetings. Monthly. $48/yr. Call 212-592-6263; click on http://www.successmtgs.com.
Meeting News. 18 times a year. $65/yr. Call 800-447-0138; click on http://www.meetingnews.com.
Corporate Meetings & Incentives. Monthly. $65/yr. Call 847-427-2072; click on http://www.meetingsnet.com.
The Hotel and Travel Index, published four times a year, lists hotels around the world. $165/yr. Call 800-446-6551.
The Official Hotel Guide, sold in a three-volume set, includes extensive international listings. $299. Call 800-360-0015. Culturgrams, published by Brigham Young University's David M. Kennedy Center for International Studies, are four-page briefings that are updated annually. Covering 163 countries, they include helpful information about greetings, gestures, visiting, general attitudes, commerce, and holidays. Culturgrams can be ordered individually for $6 (bulk discounts available), or in area or language sets. Call 800-528-6279; click on http://www.byu.edu/culturgrams.
ONLINE SERVICES
Tourism Offices Worldwide Directory tells how to contact NTO offices worldwide, including links to NTO Web sites. Click on http://www.mbnet.mb.ca/lucas/travel.
CityNet is a comprehensive travel site that's searchable by country, and, once you reach the country of your choice, by city. Lots of helpful traveler information, including the local culture, lodging, recreation, and food and drink. Click on http://www.city.net.
Travelocity is also a worthy resource. Click on http://www.travelocity.com/.
RELATED SMN ARTICLES
For other information related to planning overseas meetings and conventions, see Doc. 5010, Meetings Overview, Doc. 5020, Plan a Great Meeting!, and Doc. 5030, Pillow Gifts. In addition, check the Destinations on Demand section of the Table of Contents for detailed articles on individual destinations.
