National MICE Development

A Global Perspective

8th UNWTO Asia/Pacific Executive Training Program on Tourism Policy and Strategy

28 April, 2014

Source: GainingEdge research analysis

MICE is central to the communication processes that enable continuing

development of knowledge and creative economies

Stages of economic evolution

Agricultural

Manufacturing

Knowledge Creative Services

Tourism

Business Events

Hunter

Gatherer

MICE and Economic Transformation Building Knowledge and Creative Economies

Services Knowledge Creative

Characteristics Intangible commodities,

delivering things rather than

making them.

Educated workforce -

working with heads not

hands - intellectual vs.

physical inputs or natural

resources.

Exploitation of knowledge

and information.

Examples Financial

Legal

Hospitality

Retail

Health

Human services

Transportation

Utilities

Customer services

Construction

Information technology

Education

Entertainment

Research

Technical support

Consulting

Information technology

Education

Advertising

Architecture

Art

Crafts

Design

Fashion

Film

Music

Performing arts

Publishing

R&D

Software

Media

Games

Entertainment

Consulting

Defining Levels of Economies Knowledge and Creative are Higher Levels of a Service Economy

Leisure Tourism Business Events

How do MICE and Leisure Tourism Differ?

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

Fun and leisure

Exploring new destination and learning new cultures

Business networking and information sharing

Education & certification

Business networking

Purpose of Visit

Affordability

Uniqueness of destination and culture

Kind of leisure activities available

State of domestic economy

Quality of MICE-related infrastructure, such as convention/meeting venues and hotels

Affordability and connectivity

Main Drivers

Individual tourists

Tour wholesalers

Travel agents

Meeting Planners/AMCs

Professional Congress/Exhibition Organisers

Associations and corporates

Decision Makers

Tour operators/travel agents

Hotels

Airlines

PCOs/DMCs/EMCs

Venue Providers (meeting venues and exhibition grounds)

Convention centres

Service Providers

Broadcast marketing to end consumers (tourists)

Tour packages through tour operators/travel agents

Bidding for international conventions/exhibitions

Lobbying with government and trade bodies

Direct selling to corporates and associations

Marketing Approach

Differences Between MICE and Leisure Tourism

Government

Business Events and Economic Transformation

Source: GainingEdge research analysis

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

Medicine

Science

Education

Trade

Cultural

Professions

Economic Sectors

Governments have priority sectors for development that conventions can help strengthen, by bringing global industry leaders to engage with local professional communities

Hospitality Industry

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

Pro

fession

al Co

mm

un

ity

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

DM

Os

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

Business Events and Economic Transformation

Source: GainingEdge research analysis

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 Tourism (Leisure) Hospitality Supply Chain Engaged

Hotels

Restaurants

Attractions

Retail

Tours

Transportation

Food Services

Other Entities Engaged for MICE

Destination Management Companies

Ground transportation

Tours

Team building

Social programs

Exhibition Management Companies

Stand building Drayage Storage Furniture rental Equipment rental Cleaning Event Marketing Exhibition halls

Event Management Companies

Entertainment Decoration Costumes Props Graphic designers Lighting Sound Production Rigging Special effects

Professional Congress Organizers

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

Association Meetings and Economic Transformation Building Global Trade and Intellectual Engagement

Understanding the Overall Economic Impact of Association Meetings

Meetings Tourism (Leisure) Microeconomic Impact

Direct Spending

Employment

Tax Revenues

Macroeconomic Impact

Focus

Platform

Profile

Investment

Exports

Networks

Access

Knowledge

What Conventions and Exhibitions Really Mean

Showcases

Local innovation,

products and

expertise

Generates

Favorable

Media

Attention

…Supply

80% of

the World’s

Continuing

Education

Trade

Associations

and

Professional

Societies…

Local

Professionals

and Students

Knowledge

Investment

Platform

Profile

Exports

Networks

Access

New

Technologies,

New Ideas

Brings in

Buyers and

Distributers.

When They

See it

They Will

Believe it.

Business

Contacts,

Trade and

Research Links

Industry Leaders

Thought Leaders

Corporations

Investors

FOCUS

International Conventions in Asia Pacific (2001-2012)

Source: ICCA Annual Statistics 2012

0

500

1000

1500

200020

01

2003

2005

2007

2009

2011

Japan 15.7%

China 14.3%

Australia 11.7%

Korea 10.5%

Singapore 6.9%

Malaysia 5%

Thailand 6.9%

India 6.9%

Other 16.7%

Chinese Taipei 5.4%

2012

Four Countries Still Control Over Half of the International

Conventions Coming Into Asia

China is the winner in terms of grown in market share of

international conventions coming to Asia

International Conventions in Asia Pacific (2001-2012)

Source: ICCA 2011

2012

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

0

50

100

150

200

250

300

350

400

01 02 03 04 05 06 07 8 9 10 11 12

Japan

Australia

China

Korea

0

20

40

60

80

100

120

140

Source: ICCA Annual Statistics, 2012

Singapore and the Next 10 Cities in Asia

11

International Conventions Singapore

Beijing

Bangkok

Seoul

Hong Kong

Sydney

Taipei

Kuala Lumpur

Tokyo

Shanghai

Melbourne

Why is

Singapore the Number 1 Convention

City in Asia?

Singapore Case Study

Singapore’s Product: Trade & Intellectual Engagement

Location / Air Access

Convention Facilities

Service

Convention Bureau

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

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

Making it Easy to Buy

Thank You!