Chapter 6

Introduction to MICE
Tourism
 What are Events?
• Events are:
 Organized occasions such as meetings,
conventions, exhibitions, special events,
gala dinners etc.
 An event is the coming together of a
number of people in one place, to confer
or carry out a particular activity.
 Events are a unique blend of
management, programming, setting
and people.
 Events are temporary or transient
occurrences.
 Events are usually fixed and publicized.
 Types of Event
• Categories of event based on
their form or content:
– Personal events are
weddings, birthdays,
anniversaries
– Cultural events are activities
that contribute to social and
cultural life.
– Sporting events are tests of
sporting skill through
• Events according to size
– Mega Events:
• Largest events that can be organized.
• Generally targeted at international markets.
• These events have specific yield in terms of increased tourism,
media coverage and economic impact.
– Hallmark Events:
• Designed to increase the appeal of a specific tourism destination
or region.
– Major Events:
• Attract significant local interest and large numbers of
participants .
• Generates significant tourism revenue.
– Minor Events:
• This is where most event managers gain experience
• These events include one-off events like historical, cultural,
musical and dance performances.
• Meetings, Parties, Celebrations, awarding ceremonies and sporting
 Characteristics of Events as a
service
• Uniqueness
• Personal interactions
• Perishability
• Ambience and service
• Labor-intensive
• Fixed time scale
• Intangible
• Ritual or ceremony
 Nature of leisure and business tourism
Leisure Business tourism But …
tourism
Who pays? The tourists Not the traveler Self-employed
but employer or business travelers
association pay for their own
trips
Who The tourists The organizer of Organizers will often
decides on the take into account
the meeting/incentiv delegates’ wishes
e
destination?
trip/conference/e
xhibition
When do During classic All year round, Sometimes July and
holiday periods Monday to Friday
trips take and at
August are avoided
place? weekends for major events
Lead Holidays Some business Major conferences
time(period usually trips must be are booked many
of time booked a few made at very years in advance,
months in short notice
between and some holidays
advance
booking are now also booked
 The MICE Business
• The term MICE (Meetings, Incentives,
Conventions and Exhibitions) represents
a sector of tourism which includes
business events and activities.
• Travelers attending MICE activities have
a purpose beyond leisure tourism, and
are in fact business travelers.
• These business travelers are connected
to different sectors of the tourism and
hospitality industry through their MICE
activities.
 Nature of MICE Tourism

Attende BUSINESS
TRAVEL
e

Meeting Incentiv Convent Exhibi

ACTIVITY

s es ions tions
INDUSTRY

Tourism and Hospitality

 Reasons for MICE
• People who attend MICE activities are mainly
there for:
– Stimulation – Getting new ideas
– Networking – Meeting with others: colleagues,
customers, buyers and people who share the same
interests
– Continuing their education – Learning new skills
and furthering their education
– Product update – Finding out about new products
that are available
 The Structure of MICE Industry

Demand
-Individuals
Intermediari -Companies
es -Associations
Business travel Supplies
agents Transport
Conference operators
placements and
handling
MICE Venue
(Residential and
agencies Non-residential)
Exhibition Accommodation
companies operators
Event Ancillary
management service(Catering
companies )
Incentive travel Special service
agencies (Entertainment
equipment, IT)
 Key Players or components of MICE

1. Clients (planners)
• These are the decision makers who
hold different activities.
• Clients are mainly:
– Associations –Non-profit professional,
trade or industry organizations formed by
their members
– Corporations – Companies, entrepreneurial
or business organizations
– Event planners – Professional agents hired
by organizations to plan their business
2. Suppliers
• These are the organizations and enterprises
which provide services to MICE activities.
• Major suppliers include:
– National Trade Organization – The organization
that promotes trade for the country.
– Convention and Visitors Bureau (CVB)
• The organization or government department that
promotes MICE activities to attendees and clients while
regulating and supporting MICE clients and other
suppliers.
• Some countries, such as the United States, not only have
CVBs at a national level but on provincial and municipal
(city) levels.
• Some states only have tourism boards to handle CVB
responsibilities.
– Airlines – Provides transportation
services for attendees of MICE
activities.
– Cruise lines – Provides
transportation services,
accommodation and venues for
attendees of MICE activities
– Venues – Provides spaces where
MICE activities can be held, such
as:
• Convention and Exhibition
– Restaurants – Provides food and
beverage for MICE activities and at times
can even be used as venues
– Accommodations –Hotels, motels and
hostels where housing is provided for
attendees during MICE activities
– Professional Convention Organizers
(PCO) help international conventions
clients take care of the professional:
 planning,
 organizing and
 management of conventions, including bank
account set-up, delivery and site selection
– Destination Management Companies –
Takes care of MICE clients when they reach
their destination cities
– Entertainment – Includes performers,
venues and performance, which can be part
of the programme of MICE activities
– Technical specialists – Supports MICE
activities by providing professional
technology or equipment set-up and
operating services, e.g. audio/visual or
lighting
– Intermediaries – Agencies working as
middlemen to book various services, e.g.
3. Other Players
– Government organizations – Public organizations,
agencies and departments at different levels that
provide funding and ideas for various MICE
activities:
• Federal (national)
• State (provincial)
• Local (municipal)
– Convention industry associations – Organizations
whose members are from the industry, including
clients and suppliers, for example:
• ICCA – International Convention and Congress Association
• PCMA – Professional Conference Management Association
• MPI – Meeting Professional Institute
– Commercial sponsors – Companies who provide
funding or resources for the MICE activities in return
for promoting their brand and products
 Historical Perspective
History
• Meetings in ancient times were
discussions of communal interests.
• Primitive people gathered to discuss
common interests such as hunting
plans, war activities, peace
negotiations and tribal celebrations.
• Later cities became the meeting
places
• Rome, for example, had its Roman
Forum and Comitium.
• In Europe, the history of conventions began
with the Congress of Vienna in 1814-15.
• In the United States, Detroit established
the first convention bureau, a government
authority to promote and manage
conventions, in 1896.
• This was followed by many other cities in
the early 1900s after witnessing the
benefits convention brought to the city.
• In 1902, the first formal incentive travel
programme was set up by the National
Cash Register (NCR), a U.S. company.
• The International Association of Convention
Bureau (IACB) was established in 1914.
• IACB was then reformed to become the
International Association of Convention
and Visitor Bureau (IACVB) in 1974.
• From 2004, the IACVB turned into the
Destination Marketing Association
International.
• By the 1960s, long-distance incentive trips
overseas came into view.
• Sometimes, training activities would also
be included.
• Europe and North America still play the
leading role in the world convention and
exhibition market in terms of number of
events.
• But the convention and exhibition
industry in Asia has shown stronger-
than-average growth since the 1960s.
• However, there was very little
convention activity in the 20th century
until the 1950s due to the influence of
the two World Wars.
• The conventions industry began in the 1950s
because of:
– An expansion in government organizations
– A growth in multinational corporations and agencies
– Developments in association interests, professional
and pressure groups
– Changes in sales techniques, including the use of
product launches and sales promotion meetings
– Need for in-company management training,
continuing professional development and
attendance at ad hoc or scheduled meetings;
– Development of subject specialization, with
conferences enabling an expert to pass on
information to a large number of peripherally
involved colleagues
 Attributes for the
• The Growth of MICE
industrialization of the late
19th to early 20th century.
• The advances in the
transportation industry.
• The arrival of the jet age brought
major change in speed,
convenience and in many cases, cost.
• The introduction of daily flights to
overseas destinations.
• Lower fares resulting from airline
deregulation.
• Improvements in ground
transportation services
• Increased use of
automation/technology in the
travel industry-Computer
reservations systems.
• The emerging of:
 meeting planners associations,
 the lodging industry,
 convention and conference centers,
 convention bureaus and meeting
 Value of MICE
• Higher expenditures – A business traveler
usually spends on more than the average
tourist, as they stay in better hotels and dine
at fine restaurants since they are meeting with
business clients.
• Demand period occurs on low seasons –
the MICE event does not have to be scheduled
during the peak season when most tourists
tend to travel.
• Standardized services – All attendees for the
same MICE event will have very similar
requirements as to service standards while similar
MICE events would usually have similar programmes
and thus standardized services are required.
• Large scale:
– Most MICE events may have a large number
of attendees.
– An international convention usually requires
500 hotel rooms per night and big conference
rooms in the day.
– An exhibition, either local or international,
expects to have over thousands of attendees
and requires several large exhibition halls.
• Enhance secondary
businesses:
– Many suppliers are needed for MICE
• Improve host city image – The
city which holds the international
MICE event can give travelers a
professional image
• Indifference to lack of tourism
attractions:
– Business travelers travel primarily for the
purpose of attending a MICE event, not for the
attractions of a destination.
– Even if a city does not have unique attractions,
it can still be chosen to hold an event due to
other reasons, such as ease of access
• There is no particular fixed destination:
– There is a free field for competition.
– Many MICE events are not fixed on a host city
or country.
– As long as a city has adequate MICE venues
and facilities, it is possible for the city to be
selected to hold the event
• Using facilities for other purposes –
Other than traditional venues such as
exhibition centers or conference halls, MICE
events can make use of existing facilities
that may originally have other purposes,
e.g. universities.
 International & National Organizations
Related to MICE
• World Tourism Organization (UNWTO)
• World Travel and Tourism Council (WTTC)
• International Civil Aviation Organization (ICAO)
• International Air Transport Association (IATA)
• Pacific Asia Travel Association (PATA)
• International Congress and Convention Association (ICCA)
• International Association of Congress Centers (AIPC)
• Exhibition and Event Association of Southern Africa (EXSA)
• European Association of Event Centers (EVVC)
• International Federation of Exhibition and Event services
(IFES)
• FDRE Ministry of Culture and Tourism
• Ethiopian Chamber of Commerce and Sectorial Association
(ECCSA)
 Meetings
• Meetings bring people together in
one place for the purposes of
sharing information and discussing
and solving problems.
• Meeting attendance can range from
ten to thousands of people.
• During a meeting, there will usually
be food and beverage served.
• Meeting times vary depending on
the meeting type.
 Types of Meeting
1. Association Meeting, which are
usually of a practical or technical
nature and are related to individual
trade association, professional
societies or academic institutions.
2. Government Meeting, which the
governors from all over the world are
participated. For example UNWTO,
UN, UNECA, and IMF conference
3. Corporate Meeting, which are
held by companies in the following
ways:
– Board meetings – Meetings of
the board of the directors of a
corporation, usually held
annually
– Management Meetings – The
managers from different regions
of a corporation meet when
necessary to make decisions for
the corporation
– Shareholder Meetings –
Investors who own a share in a
company meet quarterly
– Training Seminars – A company
conducts these to train
employees when needed
– Meetings with partners, suppliers and clients –
A gathering to discuss business deals, usually
held with little prior notice
– Product launches – Usually a meeting with
clients, the public, and journalists and
reporters when new products are announced
on the market
– Strategic planning – Managers meeting with
employees to discuss the future of the
company
– Retreats – The entire company staff spends a
day or two together to participate in team-
building activities, training seminars and
strategic planning sessions
 Incentives
• Is a management tool for rewarding and
motivating:
– sales representatives,
– dealers,
– distributors,
– production workers,
– support staff, and
– in some cases, customers.
• Usually, will last three days, with:
 hotel stays,
 tour packages and
 planned activities such as dinners, parties and games.
• Its market is mature in the U.S. and Europe,
and is developing in Asia; especially in
 Factors Behind Incentive Travel Decisions
• Incentive budget economy – How strong is
the economy in the country in which the
sponsoring group is headquartered?
• Buying power – Strength of the exchange
rate in the countries being considered as the
destination for the trip
• Political climate – Terrorist alert levels after
the 911 incident
• Value - How do facilities and services compare
with other choices of destination
• Uniqueness of experience – Takes into
consideration whether these participants have
experienced this type of trip before
 Conventions
• Similar to meetings
• Organized each year with a
theme related to the
organization’s topic.
• Participants are expected to
pay the association a fee for
all the sessions, discussions,
food and beverage, dinners,
and site visits.
• The major differences between a meetings and
conventions is that a convention:
– The participants are larger than meeting
– Is often lasting for several days and involving a
social programme
– Is organized by associations:
• Professional and trade associations, e.g. the Dentist
Association
• Voluntary associations and societies
• Charities
• Political parties
– Usually conducted once a year
– Generates income for the association – participants
pay the association a fee for different services.
– A long time is spent on selecting the site of the
convention
• Conventions are also known as
conferences or congresses.
• Because conventions are usually
held by an association, they can
be organized into different
levels:
 international,
 national,
 regional, etc.
 Exhibitions
• Organized to show new:
 products,
 services and
 provide information
• The exhibitor, typically rents an
area from the organizer and sets up
a booth to meet with potential
buyers.
• The buyers or the public need an
invitation or a ticket to be
• Purpose:
– Get sales leads
– Build a network for influential contacts
– Gather new information on the competition
– Build the company’s image
• Depending on the size and type, exhibitions may also be
called:
– For the public:
• Show – e.g. Aerospace Show 2008
• Fair – e.g. Comic Fair
• Exposition or expo – e.g. Food Expo, World Expo 2010 at Shanghai
– Open only to business buyers:
• Trade show – business-to-business where companies in specific industry
gather to showcase and demonstrate new products and services. Not
open for public.
• Trade fair – business-to-client or customer. Companies gather not only
to showcase but also to sell and market their products and services
• Trade expo – open to the public but very much on business networking