REPORT ON PERFORMANCE OF UGANDA MICE TOURISM 2016

REPORT ON PERFORMANCE OF UGANDA MICE TOURISM 2016 A study conducted by Uganda Tourism Board 2016 PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 1

Table of Contents 1. INTRODUCTION... 3 2. BACKGROUND... 4 MICE stakeholders... 6 3. OBJECTIVES OF THE STUDY... 8 4. SCOPE/AREAS TO BE COVERED BY THE SURVEY... 8 5. MICE TOURISM IN UGANDA... 9 5.1 Composition of MICE to Uganda visitor arrivals... 9 6. CHALLENGES FACED BY MICE MANAGEMENT COMPANIES... 14 7. RECCOMENDATIONS... 15 7.1 Recommendations given by MICE Management companies/hoteliers... 15 7.2 Study Recommendations... 15 PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 2

1. INTRODUCTION According to the Wikipedia definition, Meetings, incentives, conferences and exhibitions, or Meetings, Incentives, Conferences, and Events (MICE) is a type of tourism in which large groups, usually planned well in advance, are brought together for a particular purpose. This report presents finding of a study conducted in 2016 by Uganda Tourism Board (UTB) on Meetings, Incentives, Conferences and Events (MICE) as a tourism product. The study largely sought for MICE statistics, the potential of MICE tourism as a tourism product, challenges facing the industry and respective solutions/recommendations. The study is also a stepping stone for further research and studies into the product as well as a basis for developing the product into complete tourism product attracting millions of visitors annually. Tourism is one of the fastest growing sectors in the world with total international tourist arrivals witnessing a significantly high growth in recent decades with MICE being one of the lead contributors to global tourism growth. According to the UNWTO meetings industry report, the Meetings Industry has for some time been recognized as an important economic driver for many destinations. Vienna Convention Bureau s statistics for 2012, for example, state that the city played host to nearly 3,400 events, which brought in half a million participants and generated more than 1.5m overnights. Across the UK in 2011, meanwhile, there were an estimated 1.3m meetings, generating spending of just under 40bn. In 2013, the International Congress and Convention Association (ICCA), probably the leading global membership body for meeting industry suppliers, now counts more than 1,018 member companies and organizations from 92 countries. Uganda is no doubt also benefiting from the expanding global MICE tourism industry. The country is a fast growing MICE destination with a wide range of world class venues that can host even some of the biggest international events, meetings and conferences. In the recent past, Uganda has successfully hosted big international events such as; the Commonwealth Heads of Government Meeting CHOGM (2007), the Common Market for Eastern and Southern Africa Summit (2004 & 2012), African Union summit (2010) and Interparliamentary Union Conference (2012) among others. MICE tourism in Uganda is a key tourism component in terms of contribution to the tourism sector and is as well fast growing tourism product. According to the Uganda Bureau of Statistics 2015 data, MICE tourism is captured under Business and Profession conferences and it was the fastest growing tourism segment between 2014 and 2015 with a percentage change of 56%. The table below shows the tourism arrivals by purpose of visit, highlighting PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 3

the performance of Business and professional conferences which constitute the MICE segment. Table 1 - Tourist Arrivals by purpose of visit ( 000s), 2011 2015 %Age Purpose of Visit Change 2014-2011 2012 2013 2014 2015 2015 Leisure, recreation and holidays 76 148 188 220 234 6.4 Business and professional conferences 160 205 223 232 362 56.0 Visiting friends and relatives 603 383 528 441 510 15.6 Others* 312 461 267 373 197 (47.2) Total 1,151 1,197 1,206 1,266 1,303 2.9 * Others includes travellers in transit, those in temporary employment and short-term contract/consultancy etc. Source: Ministry of Internal Affairs and Uganda Bureau of Statistics 2. BACKGROUND MICE is a fast growing tourism segment globally with both surging MICE visitor numbers and MICE facilities. Statistics by American Express Meetings and Events, 2015 Global Meetings & Events Forecast indicate that Africa is a growing MICE destination but still lagging behind when compared to other continents such as Europe, Apac, Middle East and North Central America. The figures 1 and 2 below highlight the comparison of Africa with other continents regarding the growth of hotels/venues which happen to be the main venues for meetings, conferences and events. PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 4

Figure 1 Global Hotel Openings (Midscale to Luxury Segments) 2013-2015 Figure 2 4 & 5 Star Hotels Under Construction by continent 2015 Vs 2014 PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 5

From the figures 1 and 2 above, Africa has the least number of hotel openings which also represents a smaller share of the global MICE market. According to the International Congress and Convention Association (ICCA) Statistics Report 2015; Public Abstract, ICCA captured a record number of 12,076 rotating international association meetings taking place in 2015. Out of the 12,076 international association meetings, Kenya was ranked 71, Tanzania was 76 and Rwanda was at 78 while Uganda did not appear on the rankings. These statistics call for more efforts from Africa in terms of research, investments and destination marketing in order to expand its market share of the fast growing global market segment. MICE stakeholders In order to fully understand the importance and potential of MICE tourism in Uganda, it s vital to identify the stakeholders of the product benchmarking from some of the well-organized MICE industry settings/layouts. The research therefore identified some of the key players along the MICE industry value chain. The figure 3 below highlights some of the major stakeholders in an organized MICE industry. Figure 3 Key Stakeholders in the MICE Industry PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 6

Convention and Visitors Bureaus (CVB) CVB acts as a center body to facilitate growth whether it is government or privately owned to solicit visitors and MICE events into the country. CVB play as an intermediary between MICE visitors or organizers and qualified local providers. A CVB s role is to represent the country by investing in marketing efforts to support the MICE industry of the country it represents. Associations Associations are usually not-for-profit organizations and can be formed at a national, regional, or even international level Once these associations set their schedule to hold conferences, all of the related work is delegated to specialized service providers called Professional Conference Organizer (PCO) Corporations Corporations are organizations established to generate profit and provide financial return to their owners The main purpose is to communicate with their employees or clients Lead-time to organize meetings is also much shorter than association meetings Normally, companies do not invest in an event or conference management division and rather solicit this expertise from external service providers Professional Conference Organizers (PCO) A Professional Conference organizer (PCO) specializes in planning and managing congresses and conferences for associations that would like to hold a scheduled conference but do not wish to undertake the bulk of the work Incentive Houses Incentive houses usually coordinate with corporations in shaping incentive programs that can help a company reach its goals Incentive travel programs are very specific both in terms of size and program details that must be specifically catered to an individual company Destination Management Companies (DMC) PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 7

A DMC is a local service organization that provide consulting services, creative events and exemplary management of logistics based on an in-depth knowledge of the destination and the needs of the incentive and motivation markets Professional Exhibition Organizers (PEO) A Professional Exhibition Organizer (PEO) usually handles every aspect of hosting an exhibition from start to finish Another major role is to plan coordinate and manage the exhibition, which may also include selecting proper subcontractors and other service providers to delegate the tasks needed in organizing exhibitions Venues Venues are now one of the most important factors influencing the decision to host a MICE event Venues suitable to host MICE events are hotels, conference hotels, conference centers and exhibition halls 3. OBJECTIVES OF THE STUDY This research was intended to achieve the following objectives;- i. Create awareness among tourism stakeholders on the role and potential of MICE tourism in Uganda. ii. To guide UTB in designing targeted marketing programs to boost MICE. iii. To guide UTB in designing support programs for MICE operators to attract more business. iv. To build business linkages between MICE organizers, hotels and tour operators as a way of boosting MICE tourism and business. v. To Institute a data collection framework to facilitate the UTB with trend statistics in the segment and the competitive map. vi. To facilitate the UTB with planning data for procurement of promotional materials for MICE. 4. SCOPE/AREAS TO BE COVERED BY THE SURVEY Data collection exercise included areas of greater Kampala such as Mukono district, Wakiso district (Entebbe, Bweyogerere, Kira etc.). The Jinja circuit was also covered including Mukono district hotels. In Kampala, the survey covered major hotels and events centers in PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 8

all the 5 divisions including; Kampala Central Division, Kawempe Division, Lubaga Division, Makindye Division and Nakawa Division. 5. MICE TOURISM IN UGANDA The study revealed MICE tourism is a very lucrative tourism product contribution heavily to the existence and survival tourism enterprises especially hotels and probably even more than accommodation. 5.1 Composition of MICE to Uganda visitor arrivals The 2012 Visitor Expenditure survey report gives a breakdown of Uganda s cross border visitors highlighting the composition of the MICE visitor to the total number of cross border visitors received. The study revealed that MICE (particularly meetings, conferences and conventions) was an increasingly important purpose for which people visit Uganda. The study showed that of the visitors that came for meetings and conferences, 38 percent came for business conferences, followed by Non-Governmental Organizations (NGO) conferences 28.2%. Faith based and international conferences contributed 18.6 and 14.7 percent respectively (as shown in the figure below): Figure 4 Percentage Distribution of foreign Visitors attending Meetings and Conferences in Uganda Percentage distribution of visitors attending meetings and conferences International conference Faith Based Business conference NGO conferences 28% 15% 19% 38% PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 9

The table below is an extract of the study and it summarizes the distribution of tourists by main purpose of visit and mode of transport. According to the report, this information was collected from four border points of Entebbe Airport, Katuna, Malaba and Busia. Results show that 62 percent of the tourists passed through Entebbe Airport while 38 percent passed through the other border points. The survey showed that majority of Uganda s tourists mainly came to do business (30.2 percent) and visit friends and relatives (21.9 percent) followed by leisure, recreation and holidays (17.1 percent). There is an equal distribution of tourists who came for leisure and recreation by mode of transport. Table 2 - Percentage distribution of tourists to Uganda by main reason of visiting and mode of Transport Main reason of Visiting Uganda Air Road Total % Sample Leisure, Recreation & Holidays 49.7 50.3 100.0 17.1 Business & Profssional 71.1 28.9 100.0 30.2 Spiritual and religious visit 76.4 23.6 100.0 5.3 Meetings & Conferences 76.1 23.9 100.0 10.5 Cultural tourism 78.1 21.9 100.0 1.9 Visiting friends & Relatives 48.6 51.4 100.0 21.9 Others 59.8 40.2 100.0 13.0 Total 62.0 38.0 100.0 100.0 Tourists region of main residence and main reason of visiting The table below shows that visitors from Africa came mainly for business and professional(37.5 percent) followed by visiting friends and relatives(26.8 percent). Those from Asia were similary in Uganda for Business & Professional(37.7 percent) and visiting friends and relatives(24.6 percent). Visitors from Europe visited Uganda mainly for leisure, recreation and holidays(25.9%) followed by Business and professional(23.2 percent). Americans came to visit on Business and professional(22.5%) followed by leisure, recreation and holidays(22.1%). Table 3 - Percentage distribution of tourists by region of usual residence and main reason for visiting Purpose/region Africa Asia Oceania Europe America Total Leisure, recreation & Holidays 8.4 23.0 50.0 25.9 22.1 17.1 PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 10

Business & Profession 37.5 37.7 10.0 23.2 22.5 30.2 Spiritual & Religious visit 2.7-3.3 3.8 15.6 5.3 Meetings & confrences 13.0 9.8 3.3 8.4 7.8 10.5 Cultural tourism 1.1-3.3 2.9 2.6 1.9 Visiting friends & Relatives 26.8 24.6 16.7 20.6 11.1 21.9 Others 10.4 4.9 13.3 15.2 18.2 13.0 Grand Total 100.0 100.0 100.0 100.0 100.0 100.0 Table 4 - Average Length of Stay by Main Purpose and Region of Usual Residence Purpose/Region Africa America Asia Oceania Europe Average Business & Professional 6 27 4 4 25 12 Cultural tourism 9 10 1 7 8 Leisure, recreation & Holidays 10 18 7 18 15 Meetings & Conferences 7 10 9 21 19 9 Spiritual & Religious visit 25 49 3 26 26 28 Visiting Friends & Relatives 5 15 3 13 10 Other 25 49 3 26 26 28 Average Days 9 22 13 14 21 14 Table 5 - Tourists Recommendation of Uganda to Others by Main Reason for Visiting Definitely Perhaps Not sure No Total Leisure & Recreation 82.2 13.2 3.5 1.0 100.0 Business & Profession 78.3 17.0 4.0 0.8 100.0 Spiritual & Religious 67.4 16.9 9.0 6.7 100.0 Meetings & Conferences 74.7 19.0 5.2 1.1 100.0 Cultural tourism 90.6 9.4 100.0 Visiting Friends & Relatives 86.0 11.6 1.7 0.8 100.0 Other 73.7 23.0 2.8 0.5 100.0 Total 79.3 16.0 3.5 1.1 100.0 Table 6 - Capacity of Kampala to hold conferences and meetings No. of Facilities No. No. of Meeting Sitting Facility Rooms No.of Beds Rooms Capacity Guesthouses 922 10,441 10954 61 3799 PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 11

Lodge 6 62 72 2 20 Motel 74 1165 1244 7 380 Serviced Apartment 36 580 1070 18 1610 Town Hotel 123 4540 5065 192 22542 Vacation Hotel 7 211 250 9 500 Hostel 52 998 1069 15 770 Safari CAMP - Eco-Lodge - Campsite - Caravan - Cottage/ Villa 2 37 43 6 500 Total 1,222 18,034 19767 310 30,121 District The table above highlights the ability of Kampala to host conferences and meetings. According to a 2016 UTB hotel and accommodation inventory, Kampala contains 1,222 facilities with a total of 310 meeting/conference rooms and a total sitting capacity of 30,121 pax. Table 7 - Summary of hotel MICE statistics Greater Kampala, Jinja and Entebbe districts; January to November 2017 NO. OF CONFRENCES HELD JAN NOV 2016 NO. OF CONFRENCE VISITORS RECIVED JAN NOV 2016 Kampala 907 16,901 744 Entebbe 167 13,677 8 Jinja 495 15,702 279 Total 1,569 46,280 1,031 CONRIMED CONFRENCES TO BE HELD NOV 2016 JULY 2017 The table above gives a summary of meetings and conferences held in Greater Kampala, Jinja and Entebbe districts from January to November 2016. 1,569 conferences were held attracting 46,280 visitors. NB. 5% of the conferences held were international while 95% were domestic. 18% foreign visitors while 82% were domestic as indicated in figure5 and 6 below respectively. PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 12

Figure 5 - Percentage composition of conferences Held in Greater Kampala, Jinja and Entebbe districts; January to November 2017 from January to November 2016; by type of conferences Percentage of conferences held in Uganda between Jan - Nov 2016 5% Domestic Coferences 95% International Conferences The table pie chart above shows the percentage composition of conferences held in Uganda between January to November 2016 by Type of conference (Domestic conferences and international conferences). Domestic conferences took up most of the share at 95%, while international conferences scored only 5%. Figure 6 - Percentage of conference visitors to Greater Kampala, Jinja and Entebbe districts by type of conference; Jan Nov 2016. Percentage of conference visitors to Uganda Jan - Nov 2016 International Conferences visitors 18% Domestic Coferences visitors 82% PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 13

Percentage Figure 7 - Percentage Composition of MICE activities held in Greater Kampala, Jinja and Entebbe districts by organizations/company type, January November 2016; 40% 35% 30% 25% 20% 15% 10% 5% 0% Foreign/Intergovernmental Local NGOs International NGOs Private Companies Government Agencies Series1 5% 12% 37% 21% 25% The graph above graph shows the composition of agencies that held conferences in Uganda between January to November 2016. Majority of the conferences were for international NGOs (37% followed by government agencies (25%), while foreign/intergovernmental agencies had the least conferences at 5%. 6. CHALLENGES FACED BY MICE MANAGEMENT COMPANIES The study sought to find out some of the challenges that were being experienced by companies that deal in MICE tourism/business. Below are some of the challenges that they highlighted:- (i) (ii) (iii) (iv) (v) (vi) Low MICE business High taxation policies by government which results to losing business to cheaper neighboring destinations like Kenya. Lack of a customized MICE marketing strategy Negative image portrayed by the media about Uganda as an unsafe and insecure country which affects business Lack of a World class conference infrastructure which would otherwise help in attracting MICE visitors to Uganda. Excessive tariffs e.g. hotel tax, property tax, high power tariffs, expensive to advertise on roadside etc. PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 14

7. RECCOMENDATIONS 7.1 Recommendations given by MICE Management companies/hoteliers The hoteliers and MICE operators gave some recommendations that would go a long way in improving the state of MICE tourism in Uganda including the following:- I. Government should avail loans to hotels so as to enhance their capacity to attract more international conferences. II. More assistance is required from the government in terms of marketing of MICE and reduction of taxes imposed on hotel facilities. III. There is need to improve the Uganda official tourism website (www.visitugand.com) to capture more products and information including MICE. IV. There is need for more training facilities for tourism and hospitality. V. Government should provide hoteliers with grants for expansion purposes. VI. Government should look into the high costs of operation brought about by the high and numerous taxes, high power and water tariffs among others. VII. VAT (government tax) on accommodation should be waved off especially for upcountry hotels. VIII. There is need for more intensive marketing strategies for Uganda s hotels abroad. IX. Government conferences and international conferences hosted by the government and events should be evenly distributed around the country to allow for an opportunity to all regions and hotels to benefit from them. 7.2 Study Recommendations 1. Uganda MICE organizations should join the International Congress and Convention Association ICCA -the International Congress and Convention Association- is the global community and knowledge hub for the international association meetings industry. ICCA represents the main specialists in organizing, transporting, and accommodating international meetings and events, and comprises over 1,000 member companies and organizations in over 90 countries worldwide. ICCA specializes in the international association meetings sector, offering unrivalled data, communication channels, and business development opportunities. ICCA was founded in 1963 by a group of travel agents. Their first and foremost aim was to evaluate practical ways to get the travel industry involved in the rapidly expanding market of international meetings and to exchange actual information related to their operations in this market. PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 15

ICCA now is one of the most prominent organizations in the world of international meetings. It is the only association that comprises a membership representing the main specialists in handling, transporting and accommodating international events. With its new strategic plan, launched in 2015, ICCA aims to get closer to association meeting planners and make them truly part of the ICCA community. ICCA's membership network of over 1,000 suppliers to the international meetings industry spans the globe, with members more than 90 countries. All companies and organizations which have a strategic commitment to provide top quality products and services for international meetings should consider ICCA membership as part of their long term plans. There are other international organizations or associations are formed to support and assist stakeholders within the worldwide MICE industry such as; Meetings professionals International Excellence in Convention Center Management The International Association of the Exhibition Industry Their roles range from lobbying and representation, establishing codes of practice within the industry and setting compatible standards for service providers to follow 2. Establish a functional MICE bureau/center. 3. Develop a MICE development and promotional strategy. 4. Build capacity of the MICE industry through training and market support. 5. Support private sector participation and advocacy in regional and international meetings 6. Sensitize hotel owners and managers about the need to collect and share MICE statistics with tourism agencies like UTB for purposes of product development and promotion. 7. UTB should put in place structures to collect monthly/quartery MICE statistics PERFORMANCE OF UGANDA MICE TOURISM 2016 Page 16