Mice Tourism - A Brief Insight With Focus On India

MICE Tourism – An Introduction

Proprietary copy of CopperBridge Media

The Meetings, Incentives, Conferences and Exhibitions (MICE) industry is extensively and rapidly growing and is largely associated with travel for business purpose



Each different subsections of MICE have quite different characteristics but as a whole they are referred to as MICE Tourism.

The MICE industry - a service industry combining trade, transportation, finance, and travel—has been active in Europe and America for over a century.

Despite the development of telecommunications and the current financial crisis, the need for direct contact has always existed and will always be there.

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.



1841 when Thomas Cook arranged the transportation for 570 participants of the annual congress of the Antialcoholics Association.

The first organized travel happened within the framework of a congress visit in

v

MICE

Meetings can be Formal or informal deliberative assembly of individuals called to debate certain issues and problems, and to take decisions.

MEETINGS

Corporate Meetings Non-Corporate Meetings

Internal NGO

Associations

Academic Conferences Professional Meetings

External In / External IGO



v

Incentive travel has emerged as a popular means of rewarding the employees’ achievements and contributions, by several business houses especially multinational companies, Insurance Companies, Banks etc.

One of the main reasons why corporatesspend on this segment is that an executive travelling abroad, whether to attend a conference / exhibition or even on a holiday, is bound to strike business opportunities during the visit.

MICE



Incentive Tours market has become

the fastest growing sector within the tourism

industry.

v

MICE

Conferences or conventions are generally described as multi-day events attended by at least a hundred delegates for the purpose of exchanging business information.

The difference between meetings and conferences lies in, both, the number of people attending and the duration of the event.



Factors used for Considering the Venue for an International Conference

(Source: Consumer Survey)

MICE

Rank Factor Score

1 Business / Networking 7.8

2 Total Cost 5.8

3 Conference Facilities 5.6

4 Miscellaneous Facilities 5.6

5 Connectivity 5.4

6 Accomodation 4.4

7 Immigration 4.0

8 Tourism 3.1

9 Other Recreation 3.1



v

Exhibitions involve the drawing together of corporate leaders and business-minded people for the purposes of viewing products and services of different enterprises and business groups.

The E in MICE is sometimes also applied to Events. In such cases it covers corporate events or it could even be sporting events.


MICE


Importance for Destinations


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.

According to Gilbert Whelan, former Chair of the Pacific

Asia Travel Association PATA, now Director of MICE

Vietnam Club, MICE tourism can bring the revenue much

higher than other normal types of tourism.



Statistics show that the average spending level (not including tour fees) of European MICE tourists is 700-1000 dollars per day, while the figure is 400 dollars per day for Asian tourists.

v

The main advantages of the growth of MICE tourism for Destinations are:

• The economic growth of the region as a whole gets a boost

• It results in the development of better infrastructure, mainly in transportation, accommodation and air services





v

• The different events attract investors from other parts of the country and the world

• The elements of relaxation, shopping and sightseeing are usually included in MICE trips

The main advantages of the growth of MICE tourism for Destinations (contd.)

It has been found that around 19% of

delegates travel with at least one accompanying person and

that 39% of them visit other areas either before

or after a meeting or conference.

The new top 20 country rankings, according to the number of confirmed major meetings held, are:

The top 20 city rankings, again going by the number of meetings hosted in 2011, are:

1. USA – 759 meetings

2. Germany – 577

3. Spain – 463

4. UK – 434

5. France – 428

6. Italy – 363

7. Brazil – 304

8. China – 302

9. Netherlands – 291

10. Austria – 267

1. Vienna – 181 meetings

2. Paris – 174

3. Barcelona – 150

4. Berlin – 147

5. Singapore – 142

6. Madrid – 130

7. London – 115

8. Amsterdam – 114

9. Istanbul – 113

10. Beijing – 111

Top 10 destinations for MICE business( The International Conference and Convention Association (ICCA) publication )



What MICE Destinations Offer


Some of the factors that lure Indians to international MICE destinations include:

Value for money: Destinations like Sri Lanka, Thailand, Dubai and others have reduced their costs to provide an attractive option to Indian domestic destinations.

Close proximity: Dubai, Sri Lanka, Malaysia, Thailand and Mauritius are just a few hours away.

Accessibility: Different airlines have increased the frequency of their flights and added on more seats, so now Indian travellers have easy connectivity to several international destinations




v

Proactive tourism boards: They regularly participate in trade shows and conventions here to market their countries as attractive MICE destinations by offering advice regarding accommodation, venues, transportation and other services.

They also offer Indian business travellers a plethora of incentives such as preferential airfares, accommodation, transportation facilities and help with custom and immigration clearances.


Some of the factors that lure Indians to international MICE destinations (contd.)

Tourist attractions: Leisure-starved MICE travellers find the lure of the many attractions of foreign destinations such as theme parks, spas and beaches hard to resist.

Excellent infrastructure: MICE participants are always drawn towards destinations with excellent infrastructure.

Hassle-free visa regulations: Countries like Sri Lanka and Thailand provide visas on arrival for Indians.



Some of the factors that lure Indians to international MICE destinations (contd.)

Indian MICE scenario


Indian MICE Scenario

With the splendid Himalayan ranges in the north and an endless stretch of golden beaches in the south, India is a vivid kaleidoscope of landscapes, magnificent historical sites, royal cities, rich culture and incomparable hospitality.



With the burgeoning of Indian enterprise, Indian business persons are becoming more globally aware and are increasingly seeking a presence at trade fairs and conventions across the world.

Europe in particular is attracting huge numbers of Indian exhibitors and visitors.

Formerly, the restrictions on foreign exchange were a big deterrent.


It was onlyafter the liberalization

of the economyin the early 1990s that

MICE travel got a boost in India.


v

ICPB, the MICE Ambassador of IndiaIndia Convention Promotion Bureau (ICPB) is a management oriented organization that has been promoting and establishing India as a preferred MICE destination.

For the past 25 years, under the direction of the Ministry of Tourism, Government of India, ICPB has been providing free information and infrastructural assistance to its members in organizing and hosting many successful international conferences and conventions.



In the Asia Pacific region, Indian business travelers rank second in average number of trips taken during the first six months of the year 2011.

As a side note, the Accor survey shows that business travelers are very much eco – conscious.


( Source: Accor - Asia Pacific Business Traveler Research 2011 )

Both destinations most frequentlytravelled to for business

The average number of trips for Chinese respondents was boosted by a significant segment of ‘road warriors’ –15% took 20+ business trips in the first 6 months of the year.

would choose a hotelsimply because it is

more environmentallyconscious

would pay extra to stay in a hotel with a superior

environmental commitmentto a similar standard hotel

in the same location.

Hong Kong

Singapore

India

Short Notes


Compared with traditional tourism sectors, such as sightseeing and leisure tours, MICE projects typically feature greater numbers of tourists, longer dwell periods, higher fees and, most importantly, greater profits.

A MICE event is always a showcase for a city's overall image - its history, culture, tourist attractions, economic development levels and, above all, its future potential.

Short Notes


Increasingly, the success of MICE tourism

inevitably boosts the host city's appeal to both tourists and business

people, a fact that has not been lost on many local

governments.

In India, while the incentives segment is ahead in the race, the other aspects of MICE are not far behind. A number of Indian business groups and exporters regularly participate in international exhibitions and trade fairs related to consumer products, handicrafts and jewellery.

Short Notes


Such activities help them in launching new products, attracting new clients, increasing sales, and exchanging useful information.

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• IIMB-ICPB Study for Ministry of Tourism, Government of India• Meeting, Incentive, Convention, and Exhibition (MICE) Industry:

Analysis & Investment Opportunities [Taiwan]

• www.letstravelzine.com• www.chinadaily.com.cn• www.seebtm.com

Sources:

• www.vietnamnet.vn• www.icpb.org • www.eturbonews.com
