MICE TOURISM: TRENDS AND CHALLENGES

Journal 2018 (Publication 2)

International Peer-Reviewed Journal

RESEARCH HORIZONS, S.R. NO. 2, VOL. 8 NOVEMBER 2018

Dr. Preeta Joshi*

ABSTRACT

MICE is a part of Tourism Industry. It caters to various forms of Business Meeting, Conventions,

Conference, Events and Exhibitions mostly used by Business Corporates and Associations. MICE

is growing rigorously by welcoming the advancements in digital technology and using them. It

has grown by 15 % to 20 % during the last 4 to 5 years along with generating employment and

earning foreign exchange for the country. It has limitation for growth but the potential to make use

of the technology in the business-related purpose cannot be ignored. By overcoming the flaws,

MICE sector will be the foremost growing industry making use of digital technology. Present study

describes the use and implementation of technology made by MICE Tourism Sector.

Keywords : Meetings, conferences, exhibitions, convention, incentives, destination, digitisation,

liberalisation, Itenery.

Introduction

Tourism is an entertaining, energizing and enriching activity for everyone. Earlier it was referred to

increase cultural and historical dimensions; but as of today, it is regarded as the most powerful

business activity for the economic development of a country. Tourism is the only industry, where the

‘

goods’ or ‘services’ are consumed at the site of production. It is paying rich dividends to both

consumers and producers. MICE is not new to India, Archaeologist have found that ancient tribes

also used to have specific gathering places to discuss many topics related to their kingdom, like war

tactics, hunting plans, crop harvesting community celebrations, etc. ( Montgomery & Strick, 1995)

After globalisation and Industrialisation of Business, MICE Segment has gained importance and

momentum.

MICE

MICE is a part of Tourism Industry. MICE is the fastest growing Tourism Industry in the globe. MICE

stand for M – Meetings, I – Incentives, C - Conventions or Conference and E – Exhibitions or Events.

It caters to various forms of Business Meetings, Conferences, Conventions, Events and Exhibitions.

Mostly Business Corporate and Associations are the customers of MICE Tourism. The Corporates,

Associations or Regional Chapters, organises Meetings for different reasons and deliberations.

Incentives travels are the paid vacations given by the Companies or Associations majorly to their

employees, suppliers, dealers, or distributors may be based on performances. Conferences or

Conventions are the largescale gatherings organised by companies on specific topics. Similarly,

Events and Exhibitions are huge gatherings organised by Corporates to display their products,

services and technologies.

Secondarily, MICE also handle family events, like weddings or sports events and contribute to the

sector. Thus, MICE travel is basically business oriented. It covers all types of Industries, Sectors,

Professionals and all types of Associations.

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International Peer-Reviewed Journal

RESEARCH HORIZONS, S.R. NO. 2, VOL. 8 NOVEMBER 2018

Objectives

To study new trends in MICE tourism sector.

To study challenges ahead of MICE tourism.

To give suggestions to develop the MICE sector so as to reach and involve the area beyond

metro.

Research Methodology

This topic is undertaken to study systematically the trends and challenges along with the use of

digital technology in the MICE sector under tourism industry. Due to the technological advancements

and liberalisation policy, the sector is growing annually by 25% to 30%. This study is descriptive and

exploratory in nature.

Nature

The study tries to find out the modified trends in MICE tourism and use of digital technology in MICE,

for the economic growth. Efforts were taken to find out new ways and applicability for new market

openings. The researcher also tried to find out new information and knowledge about MICE with

respect to new policies, needs of customers, digitization, awareness, promotions and skills to use the

technology.

The study is qualitative, as it is based on subjective concepts, attributes, technological skills,

preferences and motives of the tour operators. Information gathered from visiting the tour operator’s

office and the Out bound Tour Mart (OTM) Fair held at NESCO, Goregaon.

MICE Contributions

MICE sector is growing rigorously. It has registered a growth of 15-20% during the last 4-5 years and

expected to grow at 7.5% in next 4-5 years ( Report by International Congress And Convention

Association, ICCA) has generated employment from grass root level to top officials. It is the third

largest foreign exchange earner. It is providing opportunities for economic diversification and skills

upgrading. The Hospitality industry has accounted nearly 40 to 60 % of their revenue is generated by

MICE segment. (Report by International Congress And Convention Association, ICCA)

New Trends for Growth Positive points of MICE

The new trends have resulted into growth of this ‘sunshine’ sector.

The demand for the meetings, conferences, conventions, exhibitions, and events is increasing in

all sectors along with corporate.

The size and space of meetings is also changing. Innovative approach is used for the meetings

which gives the space a special cozy look and different seating arrangements for different

gatherings.

The advance technological means and methods are used for the meetings and events. Along

with the use of LCD projector and Audio-visual tools, Apps are downloaded on smart phones,

iPods, social and accessible mobile sites are used to plan and book the meeting and events.

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International Peer-Reviewed Journal

RESEARCH HORIZONS, S.R. NO. 2, VOL. 8 NOVEMBER 2018

MICE planners work under Teams and plans for the customized package for the meetings or

events or conference.

As of today, due to the growing importance and impact of MICE segment, the corporate gives

due weightage for special destinations. So, the planners are developing for exotic destinations.

The government has allowed 100% Foreign Direct Investment (FDI) in the tourism industry for

Construction projects, development of Hotels, Resorts and Recreational facilities.

Liberalisation Policy for Air transport, growing online travel portals, e-tourist visa etc. has made

the entry process easy, leading to increase in the customer base.

It has generated self-employment opportunities such as Event Manager, Financial Manager,

Caterer, Guest Speakers, Translators, Logistics & Transportations, Computer & IT Experts,

Technicians, Printers & Publishers, Photo & Videographers, Entertainers like – Emcees, Dancers,

Comedians, Mimicry Artists, etc.

Presently, Reliance Industries has set the largest convention centre in the heart of Mumbai,

named “Dhirubhai Ambani International Convention & Exhibition Centre” at Bandra Kurla Complex.

It is spread over 75000 Square meter area which is accommodating Retail space, Service

Apartment and Hospitality facilities. Accor Hotels has launched an International Convention Centre

in Jaipur. A Mega convention Centre is set to come up in Knowledge Park II in Greater Noida

soon. Hyderabad International Convention Centre is at par with global standard. The common

convention centre used in Bombay Exhibition & Convention Centre and Pragati Maiden in New

Delhi are under renovation and makeover.

As a result of these developments there is a sudden rise in new players in the Industry.

Challenges Ahead of MICE

Lack of Infrastructure, Amenities, Access and Connectivity

Despite continuous efforts, our infrastructure has not improved that can be compared with

neighbouring countries like, Dubai, Thailand, Malaysia, Singapore, and China. Beyond the Metro

cities, the facilities are not up to the mark. There is a need to bridge a last mile connectivity and

give a boast to infrastructural development to see a rapid and healthy growth of the segments.

Skill Development

A major challenge for this industry is skill development and talent retention. MICE is a specialised

business and so requires a lot of highly trained and skilled manpower which needs to be retained

also.

Marketing and Promotion

There is a need of aggressive promotion and marketing of the destinations. It can be done with

teaming up with Airlines, Hotels, Transport Companies, Cultural organizations, and travel agents

to tap the MICE clients. The State and Central Government should work together for the promotions

and marketing with planned budgets.

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New Destinations

RESEARCH HORIZONS, S.R. NO. 2, VOL. 8 NOVEMBER 2018

There is a need to develop additional convention destinations for small and large meetings.

Searching for locations away from city environment, interesting spots, entertainment theme

parks etc. along with providing finest conferencing facilities of international standard.

Food and Catering services

We need to develop the food and catering services to make the national as well as international

food available easily for the foreign clients or participants.

Government Regulations and Procedures

We need to provide single window facilities for the processing of the documents of the events.

Also, to have easy processing for getting local licenses and permissions for holding group

events at hotels, resorts or at public places with safety and security.

Safety and Security

The State and Central Government needs to work together to have strict measures for the

safety and security at the MICE destinations.

Insurance Cover

Irrespective of the security measures and proper planning, contingencies may happen. So, risk

is always there. As a safety measure, the Business needs to have Insurance Cover for the

meetings, events, along with the Business setup including all Assets and liabilities.

Impact of GST

With the implication of Goods and Service Tax (GST) all over the country, now the MICE

segment is facing adverse effect on the business. It has resulted into high accommodation cost

and restaurant cost. The industry is facing cancellations and reductions in business. So,

simplifying and reducing the tax structure is the biggest challenge for the growth of this

segment.

Recommendations

Tax rates should be reduced so that the total cost on the Client’s Itenery will reduce and encourage

MICE tourism in the country.

Proper Infrastructure is needed to be developed for better facilities and mode of transport along

with providing basic amenities like power supply, drinking water, clean and well-maintained space.

This will help to serve leisure purpose also.

Till now Insurance cover for MICE tourism is not provided in India due to which Hoteliers are

finding risk in organising MICE in their Hotels. Insurance protection will give them confidence and

encourage organisation of MICE events.

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International Peer-Reviewed Journal

RESEARCH HORIZONS, S.R. NO. 2, VOL. 8 NOVEMBER 2018

Conclusion

MICE segment has promoted and boasted the Corporate Sector by using new trends and digital

techniques for the overall economic development of the Country. The potential for development of

this industry due to use of digital technology is un comparable. This will reduce the cost and improves

operations to tap the business. India is viewed as one of the fastest growing Economy. MICE, though

a sub segment of Tourism Industry, but revolutionising the Business and Corporate World with highest

foreign revenue generation.

By overcoming the challenges and with help of digitalisation there is a lot of the possibility of increasing

MICE into India. To sum up MICE acronym can be made as May India Convoke Energy to boost our

economy and make MICE successful.

References

Montgomery R. J. & Strick S. K. (1995). Mice Tourism in India: Forward Focus. Journal of Hospitality

Applications and Research,4 (1)

Report by International Congress And Convention Association, ICCA

https://www.foxtrot.co.in – Importance of Technology in MICE Travel

https://www.researchgate.net – Use of information and communication technology by Mice sector

www.micemirrror.com –MICE events technology trends to watch in coming years

www.bangkokpost.com mice going digital for industry edge

https://www.tourism-review.com MICE Tourism: security, technology and experience Travel

www.buyingbusinesstravel.com –How technology is changing the MICE Industry

www.traveltrendstoday.in – MICE in India: untapped potential – Travel trends today

www.thomoscook.in

www.allsubectjourmal.com

Assistant Professor, Maniben Nanavati Women’s College, Vile Parle (West), Mumbai

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