National MICE Development A Global Perspective
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1 National MICE Development A Global Perspective 8 th UNWTO Asia/Pacific Executive Training Program on Tourism Policy and Strategy 28 April, 2014
2 MICE and Economic Transformation Building Knowledge and Creative Economies MICE is central to the communication processes that enable continuing development of knowledge and creative economies Stages of economic evolution Business Events Services Knowledge Creative Manufacturing Hunter Gatherer Agricultural Tourism Source: GainingEdge research analysis
3 Defining Levels of Economies Knowledge and Creative are Higher Levels of a Service Economy Services Knowledge Creative Characteristics Intangible commodities, delivering things rather than making them. Examples Financial Legal Hospitality Retail Health Human services Transportation Utilities Customer services Construction Information technology Education Entertainment Educated workforce - working with heads not hands - intellectual vs. physical inputs or natural resources. Research Technical support Consulting Information technology Education Exploitation of knowledge and information. Advertising Architecture Art Crafts Design Fashion Film Music Performing arts Publishing R&D Software Media Games Entertainment Consulting
4 Differences Between MICE and Leisure Tourism The MICE industry differs from leisure tourism in terms of the purpose of the visit, decision makers, service providers, marketing approach, etc., and requires a distinct strategy for attracting business meetings How do MICE and Leisure Tourism Differ? Leisure Tourism Business Events Purpose of Visit Main Drivers Decision Makers Service Providers Marketing Approach Fun and leisure Exploring new destination and learning new cultures Affordability Uniqueness of destination and culture Kind of leisure activities available Individual tourists Tour wholesalers Travel agents Tour operators/travel agents Hotels Airlines Broadcast marketing to end consumers (tourists) Tour packages through tour operators/travel agents Business networking and information sharing Education & certification Business networking State of domestic economy Quality of MICE-related infrastructure, such as convention/meeting venues and hotels Affordability and connectivity Meeting Planners/AMCs Professional Congress/Exhibition Organisers Associations and corporates PCOs/DMCs/EMCs Venue Providers (meeting venues and exhibition grounds) Convention centres Bidding for international conventions/exhibitions Lobbying with government and trade bodies Direct selling to corporates and associations
5 DMOs Business Events and Economic Transformation MICE (Meetings, Incentives, Conventions & Exhibitions) align interests of several stakeholders such as the government, professional community, DMOs, and the supporting hospitality industry, and hence is viewed as part of a comprehensive government strategy for economic transformation and growth in priority sectors. MICE as Strategic Levers to Build Priority Sectors Government Governments have priority sectors for development that conventions can help strengthen, by bringing global industry leaders to engage with local professional communities Destination Marketing Organizations play a crucial role in securing conventions for a destination and should be encouraged to identify and win bids for business events associated with the identified priority economic sectors Government Medicine Science Education Economic Sectors Trade Cultural Professions Business events bring together industry and thought leaders, helping foster business and research links that drive faster growth of industries, which in turn supports greater overall economic development Professional Community The hospitality industry is an enabler for broader economic transformation through business events. The growth of this industry should be viewed as an additional benefit rather than the primary goal of growing business event activity Hospitality Industry Source: GainingEdge research analysis
6 Business Events and Economic Transformation MICE, like tourism, stimulates business for hospitality companies, however it engages a far broader and deeper supply chain which is beyond the hospitality industry Mapping the Supply Chain Engagement for MICE and Leisure Tourism Business Events Hospitality Supply Chain Engaged Tourism (Leisure) Hotels Restaurants Attractions Retail Tours Transportation Food Services Other Entities Engaged for MICE Destination Management Companies Exhibition Management Companies Event Management Companies Professional Congress Organizers Ground transportation Tours Team building Social programs Stand building Drayage Storage Furniture rental Equipment rental Cleaning Event Marketing Exhibition halls Entertainment Decoration Costumes Props Graphic designers Lighting Sound Production Rigging Special effects Registration Services Audiovisual Services Catering Florists IT Interpreters Shipping Speakers Security Electrical Telecom / internet Sponsor development Credentials Printing Signage Photography Videography Teleconferencing Convention centres Venues Source: GainingEdge research analysis
7 Association Meetings and Economic Transformation Building Global Trade and Intellectual Engagement Understanding the Overall Economic Impact of Association Meetings Meetings Microeconomic Impact Direct Spending Employment Tax Revenues Macroeconomic Impact Tourism (Leisure) Focus Exports Platform Networks Profile Access Investment Knowledge
8 What Conventions and Exhibitions Really Mean Platform Showcases Local innovation, products and expertise Access Profile Generates Favorable Media Attention FOCUS Industry Leaders Thought Leaders Corporations Investors Investment When They See it They Will Believe it. Exports Brings in Buyers and Distributers. New Technologies, New Ideas Trade Associations and Professional Societies Knowledge Local Professionals and Students Supply 80% of the World s Continuing Education Networks Business Contacts, Trade and Research Links
9 Four Countries Still Control Over Half of the International Conventions Coming Into Asia International Conventions in Asia Pacific ( ) Other 16.7% India 6.9% Chinese Taipei 5.4% Thailand 6.9% Malaysia 5% Singapore 6.9% Korea 10.5% Australia 11.7% China 14.3% Japan 15.7% 0 Source: ICCA Annual Statistics 2012
10 China is the winner in terms of grown in market share of international conventions coming to Asia International Conventions in Asia Pacific ( ) Japan Australia China Korea 2,170 international conventions were held in Asia Pacific in 2012 (19.4%) Mainland China had 311 conventions for a 14.3% share of Asia Pacific held meetings. China is now challenging Japan as the top performing nation Source: ICCA 2011
11 140 Singapore and the Next 10 Cities in Asia International Conventions Singapore Beijing Bangkok Seoul Hong Kong Sydney Taipei Kuala Lumpur Tokyo Shanghai Melbourne 20 0 Source: ICCA Annual Statistics,
12 Why is Singapore the Number 1 Convention City in Asia?
13 Singapore Case Study Singapore s Product: Trade & Intellectual Engagement Location / Air Access Convention Facilities Service Convention Bureau
14 Singapore Case Study Singapore s Key Strategies: Reinvention Strengthening its association connections Establishing headquarters Industry training Well funded bidding office Ambassador program Subvention Comprehensive destination management Strong Convention branding Whole of government approach
15
16 Making it Easy to Buy They Want to Work with Convention Bureaus Client Expectations One stop shop Impartial advice Destination Information and Support Coordinating Bids Liaison with Government Non-Commercial / Independent / Unbiased
17 Thank You!
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