The MICE market globally is estimated at a size of US$280
$300 billion which includes around 400,000 conferences and exhibitions.
Economies of many countries thrive on this sector. In the recent times the Asian
MICE market has been one of the biggest growth stories with a rate of 38 per
cent rise since 2006 which accounts for US$60 billion.
Even with these impressive figures, India is one nation
which is yet to hit the potential of this huge MICE business. Hotel brands/convention
or meeting spaces that are coming up new are now focusing on the MICE segment
and are designing spaces to cater to the requirement. As compared to the
international market India lacks world class exhibition and conferencing venues;
this alone is not the concern. We also lack amenities which include basic
infrastructure, connectivity, safety, cleanliness and hygiene. Though the
government is taking lot of steps in this segment in terms of taxation, public
education, relaxation in FDI policy; but all these just doesn’t seem
enough. Another major challenge is the
higher taxation policies by the governments, which results in the business
being given to the neighboring competitors.
According to the ITB World Travel Trends Report, MICE contribution
to the total travel market is 54 per cent. Taken from a report in 2015, North
America has the largest market share, followed by Europe and Asia Pacific which
is further bound to grow. India, shares only one per cent of the global market
share. The target set by Government of India is to attain a share of 2% by
2025. In 2012, India was ranked 25th as a MICE destination in 2012,
which now has been downgraded to the 35th position. India holds the position of
the 10th largest business travel markets in the world. India has a
lot to offer as one of the most lucrative destinations with its world heritage
sites, culture and ethos, this is what needs to be highlighted and developed.
One of the other challenges that MICE business faces are the
trend of various corporate tightening their travel and conference budgets. As a
result MICE is getting fewer responses as these corporates then use their in
house meeting rooms and conferencing facilities. The changing dynamics in the
global economic scenario, emerging economies in Asia and Middle East are now
important business destinations. Indian economy too witnessed lot of investment
in sectors like hospitality, healthcare, IT, manufacturing etc. India’s
domestic MICE, market is quite strong and inbound MICE market is also picking
up with a lot of active support and involvement from the Ministry of Tourism. Hoteliers
are very positive that the MICE business in India will grow. MICE requirements
are growing for different sectors, be it FMCG, telecommunications, BFSI, IT, healthcare
and energy. The list is endless.
Ministry of Tourism had adopted an aggressive approach to
promote this segment. In fact, the new Tourism Policy which is to be released
anytime soon has identified MICE as a major growth driver for the Indian
tourism industry. The Ministry is also looking to extend the e -Tourist Visa
initiative to the MICE sector.
There are new developments to create global standard
convention centers. In a recent development to the Ministry of Commerce, announced
that Pragati Maidan is all set to go under re-developed and will be transformed
into a world class convention center.
Hilton Worldwide recently introduced the Conrad brand in
India, with its first hotel opening in Pune. This hotel has been projected as a
luxury MICE destination. Pune and Chennai have seen an increase in demand from
this segment, and specifically from the IT industries
MICE are a very niche
product and needs to be marketed in a focused manner. While there are no hard
and fast rule on attracting MICE clients, it is important that its needs a lot
of support and assistance airlines, hotels, transport companies, cultural
organizations, boutiques, and travel agents to target markets potential MICE
clients.
By:
Ms. Bindu Menon
Sr. Faculty, INLEAD
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