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by David
Hall, Senior Consultant, David Hall & Associates, Australia)
For two days in late February 2003, Sarawak’s
MICE industry leaders attended an intensive seminar conducted by Mr Anthony Wong,
Managing Director of Asia Overland Travel Kuala Lumpur and Mr David Hall, Senior
Partner of David Hall & Associates, an Adelaide Australia based specialist
in the convention and visitor bureau industry.
The seminar covered every aspect of what is now euphemistically called the M.I.C.E.
industry or the “Meetings Incentives Conventions and Exhibitions” industry.
Mr Wong made a convincing case for the E in MICE to also represent ‘Events’,
while David Hall suggested we use the MICE acronym with caution in certain geographic
markets where its every day use is not as common as that found in Asia.
Two central aspects of the seminar were differentiating the profiles of the ‘meetings
industry’, both in type and geographical terms, and how the sales and marketing
techniques for this lucrative market segment differs to those of the general leisure
market. Likewise time was also devoted to the growing exhibitions market, and
under the experienced tutelage of Anthony Wong, delegates were given an excellent
insight into the marketing and management of major events.
In the opening session, David Hall showed how the Meetings Industry has grown
and diversified over the past twenty plus years, with the Asia/Pacific region
continuing to increase its market share. This, despite that historically some
66% of all international associations are headquartered in Europe and a further
25% having their headquarters in North America. (see Figure 1)
Some time was also spent looking at the size of international meetings which in
the year 2002 averaged just over 800 delegates per meeting. Hall pointed out this
statistic was important when considering a destinations capability of attracting
the meetings business. “Too often” - he said - “there was an unrealistic
emphasis placed on trying to attract mega sized meetings, which while welcomed
in those destination that are capable of hosting such events, it was the total
number of delegates that were attracted to a destination over a given period of
time that was important rather than the number of individual events”. (see
Figure 2)
The role of a convention bureau and its importance in any destinations for MICE
marketing success was evident throughout the various seminar sessions. The necessity
of having a purpose built convention and exhibition facility was also addressed
at length, but as stated by both Hall and Wong, “simply having a purpose
built convention centre no longer gives a destination a marketing edge –
it simply makes it (the destination) competitive”.
“While having a convention and exhibition facility is certainly an asset
any destination should welcome it will not in itself attract business. This will
only come about through clever strategic marketing and well-sustained sales effort”
said Hall. The seminar showed quite clearly that when it comes to attracting conventions
it is imperative to recognise that the sales effort starts at home.
That is in the case of Sarawak, (West) Malaysia was the prime target market. Although
international association and corporate meetings are welcomed by all destinations
these would only happen if the national association or corporation was prepared
to endorse and support a bid to invite their international counterpart to meet
in Malaysia.
Delegates were also informed that although it is the international MICE market
that receives the most attention in the marketing effort, we should not lose sight
of the fact that it is the local and national meetings and exhibitions market
that makes up over 80% of the business.
The same ratio of national versus international meetings applies to all destinations
and therefore whilst there is always a ‘glamour’ aspect of attracting
international meetings with their foreign exchange appeal and exposure of the
host nation in terms of potential investment, it is the national MICE business
that provides the major revenues.
David Hall said “it was important in developing marketing strategies aimed
at attracting MICE business to target those Associations and Corporations with
interests that have relevance to the social and economic agenda of the destination”.
He tabled the following information from the International Congress and Convention
Association (ICCA) showing that of all meetings held by far the largest source
came from the medical sciences. Indeed in 2002 this category had increased from
28% to 35% (see Figure 3) Throughout the seminar the emphasis was very much on
the specialist sales and marketing techniques required to attract meetings business
and the important role the use of well-developed and maintained databases plays
in achieving success in the highly competitive meetings market. The logical and
sequential approach to securing meeting business was well demonstrated by the
following simple graph. (Graph 1)
Considerable attention was paid to the need to develop and use professional bidding
techniques and materials. This was essential in view of the fact that in the international
arena, particularly with the Association market, there are always several destinations
bidding for the same piece of business. For the meeting planner and the decision
makers of future venues the most important criteria are “will the facilities
and services the destination has to offer ensure a successful, indeed memorable
meeting?” and “will the destination be attractive enough to maximise
the attendance of delegates?”.
As with all sectors of the MICE market both Hall and Wong reiterated that building
relationships with key people within the national Association and Corporate, especially
those with international affiliations and where local members perhaps held positions
on the international board or committees would enhance the chances of securing
future meetings and events. Anthony Wong with his vast experience in the events
market, sporting events in particular look the seminar attendees through the very
rigorous planning and execution needs associated with major international events.
Delegates were taken through by way of case studies what a big sporting event
can do for a destination, what is involved, how to get the business and how to
service it. Time was also spent on the critical needs of sponsorship given the
central role sponsorship now plays in so many areas of sport and indeed numerous
aspects of the MICE market.
Using the 16 th Commonwealth Games in Kuala Lumpur and Sydney Olympics as examples
Anthony delivered an excellent presentation on attracting sponsors - how to develop
win-win deals with sponsors and how to look after them to ensure they are happy
and will support future events when approached.
Mr Wong looked at the important budgets all MICE and events must give critical
attention to in detail. Taking fixed and variable budget costs and working
through all the major items to reach the required bottom line. Also on day two
of the seminar, delegates participated in a round table group exercise to develop
a convention programme using a hypothetical event -designing both a social &
business itinerary and programme. Each table then presented their view and ideas
to the assembled delegates.
In the afternoon a Panel Discussion, chaired by Dr Daniel Chew, Senior Research
Fellow, Sarawak Development Institute provided delegates with the opportunity
to ask the panel questions within the framework of “Sarawak as a potential
for MICE”.
Fig 3. Area of Subject Matter of International Meetings (2001)
1 Medical Sciences 28%
2 Science 13%
3 Technology 9%
4 Industry 9%
5 Economics 4%
6 Education 4%
7 Commerce 4%
8 Social Sciences 4%
9 Agriculture 4%
10 Transport & Communication 3%
M I C E WHAT
’S IN A NAME?
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| ALL EARS...David Hall in an engroved interaction with the
participants of MICE |
What do we understand or mean when we
talk about MICE – or for that matter the recently introduced term “Business
Events”?
The question that needs to be addressed is - why are the visitor activities popularly
embraced by MICE or Business Events seen as warranting a singular description?
When we talk about “Transport” in the generic sense it could be anything
from riding a bicycle to taking a trip on a 747 jumbo jet. And yet no one would
argue that there is simply no comparison in terms of the technology employed in
building a bicycle against that used in producing a sophisticated passenger aircraft.
Why is it, therefore, that the acronym of MICE which in many parts of the world
has become everyday lexicon and the proponents of the new term of “Business
Events” imply that the embraced market segments are sufficiently ‘related’
as to be considered as one?
I suspect in both cases the rationale of grouping the three major activities that
are grouped as MICE or Business Events – Meetings, Incentives (travel), Conventions,
Exhibitions was simply a matter of contrived convenience! (We will assume that
the duplication of ‘meetings’ and conventions’ was necessary in
order to produce a pronounceable acronym!)
The reason for ‘believing’ it appropriate to consider these three very
distinct visitor segments as one would appear to have been very much driven by
the supply end of the marketing equation.
During the past 12 to 18 months in discussions with various ‘enthusiastic’
community-minded people in various parts of the world, it has become
increasingly obvious to the writer that “all visitors (or tourists)”
are essentially seen as being one and the same. Why? Well because the majority
of visitors - be they leisure or incentive travel visitors, convention or exhibitions
visitors - are all seen as using basically the same infrastructure and therefore
in the eyes of many ill-informed people must be one and the same.
And it is true – nearly all visitors will use commercial accommodation (hotels,
motels, etc) – travel by plane, train, coach or car – use taxis –
eat in restaurants – shop at retail stores – even visit tourist attractions
etc. Convention and exhibition visitors do of course use specialised facilities
and services not required by the leisure tourist, but other than this, all will
use common infrastructure as listed above.
Naturally from a hotel point of view and other suppliers such as hotels and restaurants,
it matters little what ‘type’ of visitor or traveller they are so long
as they occupy a bed or seat. This doesn’t mean to say hotels and airlines
do not recognise that with convention delegates and incentive
travellers that these segments will probably produce a better financial yield.
The real benefit is, however, a group of two or three hundred people ‘travelling’
and ‘staying’ together is much ‘easier’ (desirable and cost
effective) business to secure than trying to produce two or three hundred F.I.T.
passengers and guests. But herein lies the problem! If one was to give a common
description to the three visitor segments covered by the word MICE – the
only one applicable would be “a group of people visiting a destination for
a common interest or purpose”. It is, I believe, on this premise that convention,
incentive travel and exhibitions are infortunately and erroneously grouped as
one single market.
The fact is that when one examines the production end of the marketing equation
rather than as is usually the case - the delivery end (infrastructure and services),
we find that the marketing philosophies – strategies – methodologies
required for conventions, incentives and
exhibitions are as radically different to each other as they are collectively
when compared to leisure tourism marketing.
It is time, I believe, that we recognise and more importantly for those engaged
in all areas of the ‘visitor industry’ be educated on what are the differences
in these market segment and the specific and specialised disciplines and approaches
required for each segment. The differences in how to market each segment are not
subtle – the differences are substantial.
Let us recognise this fact, in particular those responsible for marketing a destination,
product or service by standing back and asking ourselves the question – “do
we fully understand the dynamics that drive each specific market segment?”
As many of us would acknowledge, there has been incredible hype generated about
the MICE/Business Events industry over the past decade or so – some of it
quite rightly so and in some instances badly misplaced with costly consequences.
We should not forget that group activities such as conventions and exhibitions
are not held to simply satisfy the commercial needs of hotels, airlines and other
suppliers, but are an integral part of an organisations’ need to communicate
with its members, clients and ‘public’.
If we give greater consideration to, and have a better understanding of, how ‘their
markets and requirements work’ – the suppliers will ultimately get a
share of the benefits.
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| SOUVENIR...Anthony Wong being presented with a souvenir
by Dr. Daniel Chew, Senior Research Fellow of SDI |
PANEL...Dr. Daniel Chew (in dark jacket and tie) chairing
the discussion panel which provide oppurtunities for delegates to ask further
questions on MICE in Sarawak |
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