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Show Me The Money pre-determined price on a specified date. An intermediary plan, called “layering,” allows planners the ability to purchase currency at intervals. And planners who are feeling lucky can, of course, wait it out and see what the exchange rate does before deciding when to lock in the rate and purchase the currency. For associations or corporations with offices in the destination country, another option is to have them pay in the local currency. “The safest and most professional way to work your international budget is to run the numbers in dollars and the local currency,” says Krugman. “The key is to be very clear to anyone who needs to approve that budget that this is an estimate based on a specific day and rate. Depending on the economic climate, you might need to update your budget every month or even every week in an especially volatile climate.” Other Big Guns Two other areas can add significant costs to an international meeting that planners won’t encounter with a US meeting. The first is VAT, or value-added taxes, an indirect tax levied in many countries of multiple meeting expenses, including transportation, accommodation, meals, and more. The good news is that VAT can often be reclaimed—essentially reimbursed to the association or corporation. The bad news is that the process can be complex and onerous. In either case, it needs to be factored into the initial budget. In addition to the taxes on categories once you’re in the destination, most items that are shipped into the host country are also subject to taxes and duties, as well as other possible fees. For example, did you know that if you ship a computer to a trade show booth for an exhibition in India, you’ll have to put up a bank or embassy guarantee to ensure the computer is returned to the country of origin? Or that if you ship printed materials for a meeting to Brazil, you’ll be charged $9 to $15 per pound in taxes and duty as opposed to being charged for the “value” of the materials as in other countries? Or that in Singapore, any videos or DVDs coming through customs are subject to censorship before they can be shown in a trade show booth? According to Stephen Barry, president and CEO of Las Vegas-based TWI Group, which provides freight logistics for the exhibition industry and corporations, those are just a few examples of the kinds of “hidden” costs and pitfalls a company or association can be hit with when shipping overseas in addition to the more obvious costs of actual shipping, customs, drayage, trucking, inland services, and more. Add to that the necessary paperwork—and shipping and customs becomes an area where expert guidance is often needed in the form of a freight forwarder and/or customs broker. “We work with a corporation or association right from the start, from advance planning through a logistics timeline to the actual delivery and return of materials,” says Barry. From a budget perspective, planners should account for any shipping costs, including trucking and unpacking at the actual meeting site, as well as associated taxes and duties and permits, plus charges for the help of a professional. “In addition to standard meeting best practices, planners have more good reason than ever to make sure they’re knowledgeable about all these critical components for international meetings,” says Krugman. “In a world where everything is now subject to such great scrutiny, there’s so much riding on every penny.” I Helping Hands Unless you’re planning international meetings day in and day out, most planners are going to need some extra help and expertise along the way to navigate the cultural and financial differences. A good starting point is a destination management company (DMC) or professional conference organizer (PCO) in the destination country. These professionals can provide insights into the cultural and business norms of the host country, as well as language assistance and negotiating help. In some countries, particularly those in Latin America, it’s not uncommon for a local company to be able to achieve rates that are simply not possible for a foreign company. Associations can also tap into the knowledge and expertise of their own chapters or members in the host country, while corporations can take advantage of local offices. Wendy Parsley, of New York-based Quint Strategies, has formed her own informal partnership with a similar company based in Amsterdam called Jibe! Marketing and Events, run by a former colleague. “When I’m working in that part of the world, they can help with anything from staffing to pre-planning logistics to language nuances,” says Parsley. “It gives me feet on the ground in that part of the world and the ability to extend my reach.” Other experts a planner might call on include: • An attorney to look over the fine print in hotel and other contracts. Whether written in English or the language of the host country, the contract will be subject to the laws of the destination country. Make sure you understand what you’re signing. • A freight forwarder and/or customs broker for pre-planning logistics to ensure there’s enough time for shipping and customs, as well as guidance in legalities and paperwork. • A VAT reclamation company for guidance in site selection and the reclamation of all applicable taxes. • Professional translators for written materials and simultaneous interpreters for real-time translation of the spoken word. • A currency management and foreign exchange specialist for “up-to-date exchange information and advice, and to facilitate transfer of funds,” says Krugman. 40 Successful Meetings/MeetingNews/Incentive / MARCH 2009

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Passport Contents Destination Diary Europe Americas and the Caribbean Asia Africa Charting Their Course Show Me the Money

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