Domestic and outbound travel has been the talk of not just Indian industry stalwarts but international ones as well. The mere statistics of tourism in India is enough to raise eyebrows and contribute to heated discussions that fuel a growing opinion of India’s tourism potential. The creeper that grows alongside this sector is MICE. Not only has it been contributing to a large chunk of the tourism sector, it has also grown leaps and bounds in quality, services and, most importantly, demand.
Current status of Indian MICE industry:
According to International Congress & Convention Association (ICCA) statistics, a total of 400,000 conferences and exhibitions are held worldwide every year at the total outlay of US$280 billion, and India’s share is pegged only at US$4.8 bn. Currently, India ranks 27th in the global MICE market. The Global Association of the Exhibition Industry (UFI) states that the annual MICE industry output value has already reached US$1.16 trillion (including US$400 billion for conferences and US$760 billion for exhibitions). For India, the domestic MICE market is quite strong and inbound MICE market is gradually picking up with the active support from the Ministry of Tourism.
However, it is the outbound MICE market that is growing rapidly. According to EuroMonitor, the Indian outbound MICE market was estimated to be around US$ 550-600 million in 2011. It grew strongly and resulted in an outbound trip volume of 6.2 million, with around 1.5-1.8 million Indians travelling outbound only for MICE. For one, almost every NTO is scrambling to get a piece of the Indian outbound MICE traffic pie. While the country has a reputation for discerning travellers with dispensable income who are continuously on the lookout for a new destination to explore, there is no doubt in the minds of NTOs that MICE would be a great segment to tap from here keeping these trends in mind. Providing further impetus are the increasing number of air routes already introduced or being mooted to aid easy connectivity and add to the attractiveness of the destination.
While the industry has witnessed growth in outbound MICE traffic, there has also been a steady trickle of domestic and inbound corporate travel that is picking up speed as India improves its infrastructure and establishes itself as a quality MICE destination. India’s government, both Centre and States, and private sectors put serious efforts into improving India’s infrastructure with state-of-the-art convention centres. While most of them are still in the making, the existing ones enjoy bustling business largely from the domestic sector.
Hotels are not to be left behind in a sweeping trend. While convention centres in India took their time to develop, hotels began to serve the growing demand. Some of them started convention centres attached to their accommodation and others offered as many MICE facilities as possible within their premises. With a promise of brand quality, the offerings put MICE tourism on the domestic, and on the international map as well, a fact that is proven by the statistics that MICE contribute no less than 20 per cent of the hotels’ business.
Of course, none of it comes without challenges. The increase in demand is still not met with appropriate supply in infrastructure. But hotels and convention centres in India seem to have stayed afloat and drummed up enough business to make MICE large contributors to their toplines. The largest contributors are the domestic MICE travellers. And it is not just the metros and major cities any more. With a consistent increase in GDP is a constant rise of tier II and III markets and new industries mushrooming across the country. Pharmaceuticals, automobiles, educational institutes, real estate, banking, multinational corporations etc. have all posed as major segments for domestic MICE.
Moreover, increased air connectivity has made India easily accessible. The country has over 80 airlines coming in from more than 45 countries. With FDI relaxation in aviation and the slow but steady revival of the national carrier, things are looking up for the country. Mumbai airport is finally getting its long awaited T2 which will increase its welcoming capacity; several smaller airports are getting uplifted; the deal between Jet Airways and Etihad Airways is sure to encourage other carriers to consider the FDI opening in India; Air India has finally received its Dreamliner and is hopeful of flying them soon; and increased frequency by various foreign airlines will definitely boost two way tourism exchange between India and the world. All in all, the MICE sector is growing rapidly, being fuelled by a niche and emerging segment that is continuously on the rise.
Convention Centres enjoy great business
The greatest challenge the Indian MICE segment faces is lack of infrastructure. One of the fastest growing markets has not been completely equipped to welcome the advent of one of the fastest growing segments. It is any wonder that hotels as well as the government and private sector have jumped at the chance to grab a slice of the pie. The MICE segment in India is growing at around 20 per cent annually, a figure that has encouraged the government to, first and foremost, identify, invest in and plan the construction of state-of-the-art convention centres. In addition, Public Private Partnership (PPP) models have been adopted for several more such venues.
Pragati Maidan, run by India Trade Promotion Organisation (ITPO), is all set for a mega expansion and makeover and now being turned into an integrated international exhibition centre-cum-convention complex. As per the proposed plan, the revamped exhibition area will have a state-of-the-art exhibition space of around 50,000 sq mts capable of accommodating 4,000 pax at a time and two new convention halls with a capacity of 1,000 seats each. It is slated for completion by end- September 2016. According to Rita Menon, CMD, ITPO, the modernisation work should begin in January 2014.
Apart from the Govt. of India, states such as Madhya Pradesh, Rajasthan, Andhra Pradesh, Odisha, West Bengal among others are also developing convention centres to draw MICE business. And it isn’t just the growth in infrastructure that shows the segments’ progress. In fiscal 2012-13, India Exposition Mart Ltd (IEML) which runs the India Expo Centre and Mart, Greater Noida, witnessed 25 exhibitions and in 2013-14 are prepped for 30 exhibitions. The Centre, which saw a mere 10 events with 50 days’ occupancy in the year 2011-12, moved up to 22 events with 143 days’ occupancy the consecutive year, and already has a confirmed occupancy of 171 days in 2013-14.
“With increasing airfares to international locations and budget constraints, Indian business houses commenced looking within the country for the Incentive programme preceded with a small conference or meeting,” opined Rajiv Duggal, Sr. Vice President – Tourism, Hospitality and Leisure, Lavasa Corporation. According to him, metro cities were targeted initially because of the fact that tourist cities with India did not have enough rooms. “As hotel chains started moving into tier II and III cities, so did the all components of MICE. Today, a MICE programme can be held in almost every city of India and also at very touristic locations, this helps corporate to not only bring business seriousness into the destination but also allow its people to enjoy the various tourism ready products for the fun element. At Lavasa, MICE is a very important segment for us contributing almost 40 per cent to our city occupancy,” Duggal said.
Speaking about inbound MICE visitors, Rajeev Jalnapurkar, Vice President, Ramoji Film City, revealed that the myriad of experiences India offers makes it a unique destination, and is perhaps the reason why it has so many repeat visitors. “If projected and marketed consistently in an international forum in partnership with the private players in the industry, there is huge potential for the Indian MICE Industry to grow at least two fold in the next five years,” he added.
According to Peter Frawley, General Manager Delegate, Accor Andhra Pradesh and Goa Hotel Operations (Hyderabad International Convention Centre), the MICE infrastructure in the country has been developing rapidly and convention hotels and conference venues of international standards are being set up in cities across the country. “With the corresponding expansion in the network of airline operations, India is ready to position and market itself as an important MICE destination,” he said and added that India is going the global way and MICE is fast becoming a major part of the travel and promotional budgets of the companies.
While infrastructure is a major concern for the MICE space, the industry cannot ignore its competition – neighbouring countries which have established themselves as MICE destinations long before India joined the rat race. Thailand, Malaysia, Sri Lanka, Dubai and Singapore, among others, have packaged and marketed their MICE offerings successfully over the years, and India needs to catch up with and stay ahead of them.
According to Sudeep Sarcar, GM, IEML, MICE destinations in India are very well connected with the rest of the world and this is driving more and more MICE business to the country. However, he believes that, to stay ahead of the neighbouring destinations, an investigation needs to be conducted on the factors and attributes affecting convention site decision making. “Conventions can be hosted anywhere, which gives rise to competition among destinations in portraying themselves as the best destination. Because of this growing competition, it is imperative that an investigation be made into the factors that contribute best in site selection for MICE within the various destinations in India,” stated Sarcar.
Jalnapurkar believes that the challenges remain in terms of delivering end-to-end execution, creating real-time right ambience that inspires the ideas of the clients who often come here to brainstorm and accomplishing the goals on daily basis. “Market weakness in Europe, protracted negotiations, and market uncertainties pose major challenges. With the economic slowdown, corporate are also seen cutting conferencing budgets are most often felt in the sponsorship of the large association events,” added Frawley.
However, Sarcar opined that the prospects for the MICE industry are looking very bright. “Indeed the changing trends are clearly indicating that this sector is making a steady comeback as the world economy has started picking up. With the economy improving, there is once again a renewed demand for exhibitions, meetings and events to showcase latest products or for brainstorming sessions or simply for attracting clients,” he said.
It is not just Indian convention centres that are benefiting from the domestic market, even international venues have been witnessing a growth in the Indian outbound MICE market. According to the Australian Bureau of Statistics (ABS), Overseas Arrivals and Departures, as of the end of December 2012 there were 8,760 arrivals from India who came to Australia for convention/conference purposes. Karen Bolinger, Chief Executive Officer, Melbourne Convention Bureau (MCB) stated that it is to see an increase in corporate and incentive visitors from India this year as a result of a recent successfully hosted Indian event and interest garnered from Tourism Australia’s Melbourne NOW! campaign in India. “MICE or business events are extremely important to the Australian tourism industry, generating A$1.2 billion. MCB’s sole responsibility is for the procurement of business events that attract delegates to Victoria so the MICE category is essential for the organisation’s existence,” she said.
Okinawa Convention Center (OCC) in Japan recently entered into the Indian market to tap the growing potential of the Indian MICE segment. OCC has already chalked its promotional plan for the Indian market.
MICE contributes 20% to hotels’ business
Undoubtedly, 2012 was one of the tougher years travel and tourism has seen in the recent past, with hotels facing difficulty in meeting their top lines. The silver lining though, was the contribution of MICE to properties that offered the facilities. Providing a considerable contribution to the properties’ annual business as well as their occupancies, the segment has been fuelling the sector’s success to a large extent in the past few years.
“Indian hospitality industry has gone through a sea change in the last one decade. The evolution that has come about has brought in the dynamism leading to novelty in the way hospitality business is perceived and done. MICE has become one of the most important segments to concentrate on for hoteliers throughout the country,” opined Amit Mitra, Director – Business Development, Le Meridien Coimbatore and Le Royal Meridien Chennai.
According to Saeid Heidari, GM, Renaissance Mumbai Convention Centre and Hotel, which receives 30 per cent of its business from MICE, currently the hotels are experiencing shorter booking lead times and a lower demand with regards to international congresses into the city. The overall MICE travel has, however, increased.
“MICE is the fastest growing section of the international and domestic tourism markets. The standards of facilities and services offered have evolved over the last decade towards the extensive use of technology, environment friendly services, pricing, market segmentation, regional preferences, etc. This segment has immense potential and provides tremendous growth opportunity in India for the sale of several hundred room nights as opposed to few by the transient travellers. In fact, MICE tourism finds itself being inevitable in all the occasions,” opined Sanzeev Bhatia, General Manager, The Metropolitan Hotel & Spa.
With a growing business, of course, come varying trends and the MICE space is no different. As the segment grows, so do the demands of the customers. Martin Wuetrich, General Manager, Sheraton Bangalore, which owes 20 per cent of its room occupancy to MICE, opined that opportunities lay in the tier II cities. “Some of these markets are beginning to create demand with newer segments purely because of the quality of the kind of hotel that exists. Something similar has happened in a city like Bengaluru. Corporate and multinationals are considering Bengaluru as an option to hold high scale annual events looking at the availability of world class MICE facilities, events they would have otherwise held abroad or in Mumbai or Delhi. The MICE industry is blooming at this point and hotels are all cashing into this opportunity,” he said.
Vikram Chauhan, General Manager, Radisson Blu Hotel, Ahmedabad, revealed that many corporations are adopting the e-conferences as a solution to save money and time. However, he added, it has not replaced the value of face-to-face meetings and MICE events continue to be in demand. Girish Ganeshan, General Manager, Hyatt Ahmedabad, cited the opening up of various segments such as medical, health, culture tourism, because of exchanges between different professional bodies across the industries and trans-Atlantic have added to the demand for quality MICE venues.
And, while the whole world goes green, hospitality is not to be left out. Several properties are looking towards a new concept called ‘Green MICE’. Alila Bangalore is currently revamping their environmentally conscious MICE events. This should be launched in the second half of the year. Radisson Blu Hotel Ahmedabad has also initiated offsetting the Carbon footprint in India which would start from next quarter. The Met is awarded with ISO 14001, an Environment Management System CertificatioFunnin given by an internationally recognised certification body. The property even has its own in-house environmental programme known as ECOMET.
Nothing new comes without its challenges, especially not in a tourism market as dynamic as India. Vineet Mishra, General Manager, Courtyard by Marriott Pune City Centre stated that the MICE tourist today is very selective. “Anybody who has a MICE requirement will call up five to eight venues and negotiate the best price from them. He would then begin to compete on services. The challenge is competitiveness of pricing and having a product differentiator.”
Krishna Unni, General Manager, Alila Bangalore believes that logistics is always unpredictable since issues such as traffic are very hard to control and affect MICE business experience. “In terms of infrastructure India is at a nascent stage and this reflects in the lack of facilities available. However, this segment is set to take the lead and is paced for a robust growth in near future,” said Sanjay Sharma, Complex General Manager, The Westin Gurgaon, New Delhi and The Westin Sohna Resort and Spa.
Mitra opined that today’s conference organisers look for value and the experience they can offer to the participants vis-a- vis the overall price and also flight connectivity to the city. Heidari suggested that a Convention Bureau for the city will elevate it within the international and domestic markets.
As a contrast, Philippe Charraudeau, GM-VP of ITC Grand Chola, stated that whilst there exits infrastructural challenges, with the support rendered by the DMC/PCO trade partners and hotels, customers organising conventions do not face much challenges. The burden is shared equally by the hotel, event managers, convention centres and the trade.
India is becoming an exotic MICE destination
From bustling cosmopolitan cities to tiny hamlets that seem frozen in time, India offers a heady blend of culture, history, tradition, hospitality, beauty coupled with modern amenities like deluxe and super deluxe hotels and resorts that would appeal to the business traveller. India is going the global way and MICE is fast becoming a major part of its travel and promotional budgets.
The Union Tourism Minister (I/C) K. Chiranjeevi recently sought the Finance Ministry’s help in setting up of six MICE centres in the country. Chiranjeevi’s request to Finance Minister therefore highlights the Ministry of Tourism’s intent for MICE promotion and interest in pacing the process up. On one hand, India has to compete with other global destinations and contend with factors such as pricing, space and infrastructure that play a big role in developing it as a MICE destination, but on the other hand, it has the advantage of being an emerging superpower with various other factors such as government support, infrastructure development and economic growth in its favour.
“The importance of the MICE industry is that it adds a stirring layer to annual business meetings and conferences transforming them from boring, dull all-work-no-play get-togethers to something enjoyable. Work is most definitely the priority but the icing on the cake is exhilarating new destinations, the exotica factor and enjoyment factor. And India as a MICE destination fits the bill,” said Karan Anand, Head – Relationships, Cox & Kings, adding that the inbound MICE segment is on the upward curve, growing at 20 per cent annually.
“More and more corporates are realising the importance of motivational programmes for staff retention and this phenomenon has huge potential for growth,” said Vishal Suri, Dy. COO Tour Operating, Kuoni India.
Sharing similar sentiments, Chander Mansharamani, Vice Chairman, India Convention Promotion Bureau (ICPB), said, “India is gradually emerging as a MICE destination globally. The MICE organisers abroad are cashing in on and promoting India’s cultural heritage, areas such as spa and wellness which they feel area additional advantage as add ons to the MICE activities.”
According to Arjun Sharma, Managing Director, Le passage to India, the changing economic scenario, with India and China as the two leading global economies, has highlighted India for the commercial and business potential it offers.
With world class hotels and the development of infrastructure, India is now one of the top MICE destinations in Asia too, following closely on the heels of Dubai, Malaysia and Hong Kong. Vineet Batra, Managing Partner, CHIME, believes India has the potential and opportunity as a superpower to emerge as a powerful contender in the global MICE industry. “Obviously, countries such as Thailand, Singapore, Dubai have had the first movers advantage and have been recognised as destinations over a long period of time. However, India scores thanks to the sheer size of the country, its global and young population and booming economy,” he said.
Zakkir Ahmed, Managing Director, Trust Travel & Tours said, “Amidst the countless ways that India can capture world attention as a tourist paradise, there also exists a dynamic business opportunity as a splendid venue for international conferences and conventions of no less than global standards.” He further added that unique tourism products such as Palace on Wheels and Royal Orient Express, offer a luxurious experience with their air-conditioned saloons decorated extravagantly where guests get a first-hand experience of Indian culture, heritage and cuisine.”
Batra believes increased air capacity and rapid improvement in infrastructure has also played a big role. “The new International and domestic airports are better equipped to handle large volumes seamlessly. The big influx of hotel space in various categories, particularly in the metros and bigger cities have given the opportunity to large organisers to look at India as a MICE destination,” he said.
Speaking about the emerging MICE destinations within India, Mansharamani added, “The state of Rajasthan is one the emerging MICE destinations. Kerela is also gaining momentum because of spa and wellness.” Apart from the emerging destinations Delhi, Greater Noida, Mumbai, Hyderabad, Bengaluru, Cochin are famous for MICE destinations.
With the expansion in the network of airlines operating on the domestic routes, enhanced tourist surface transport systems including the Indian Railways, new centres of information technology, numerous new convention centres, hotels and resorts, India is now a preferred MICE destination.
National Tourist Offices consider the Indian MICE market as lucrative
Experts opine that MICE contributes as much as 40-45 per cent to overall travel volumes and India is no exception to it. Indians are now are now travelling abroad throughout the year on business. The recent statistics suggests that the Indian outbound MICE market is estimated to be around US$600 million and is expected to increase by 12-13 per cent over the next couple of years. Unaffected by the global slowdown, Indian corporates are spending on corporate travel, increasing the outbound market for MICE.
MICE movement from India to Malaysia grew by leaps and bounds in 2012. Malaysia received 693,056 Indian tourists last year out of which 19 – 22 per cent were business travellers. “This was largely due to the efforts of the Malaysia Convention and Exhibition Bureau (MYCEB) and a group of dedicated MICE travel agents,” stated Manoharan Periasamy, Director, Tourism Malaysia. Tourism Malaysia expects to see a 20 per cent increase in Indian MICE footfalls.
For Thailand’s MICE industry, 2012 was a buoyant year with 895,224 MICE visitors and 7,382 MICE events, 6.84 per cent up from 2011, and exceeding Thailand Convention & Exhibition Bureau’s (TCEB) annual target. According to TCEB, conventions contributed 33 per cent, followed by corporate meetings and incentive travel, which contributed 25 and 24 percent respectively. International exhibitions and trade shows accounted for 18 percent of total MICE revenues for 2012. Moreover, TCEB is confident of continuing growth in 2013, driven by a major rebranding and strategic repositioning of the organisation, and continuing strong public and private sector investment in MICE venues and related developments. TCEB is promoting incentive tourism in the cities of Coimbatore, Mangalore and Pune, building on its longstanding presence in the major cities of Mumbai, Delhi and Bengaluru.
Dubai also has been showing tremendous growth in its MICE arrivals since the launch of its Indian operations. Carl Vaz, Director (India) of Department of Tourism and Commerce Marketing (DTCM), Government of Dubai, said in a statement, “Amongst Dubai’s key markets, India is one of the most resilient markets today, accounting for growth even during tumultuous times.” At SATTE 2013, Dubai highlighted its growing reputation as a preferred MICE destination.
In addition, there are new and emerging players looking to tap the Indian MICE market. Taiwan is one of them. There has been a steady increase in the MICE movements to Taiwan from India in last couple of years and Arthur Hsieh – Director, Taiwan Tourism Bureau (TTB), Singapore Office, is positive that Taiwan Tourism Bureau’s (TTB) MICE Incentive plans will help agents increase MICE movements to Taiwan in the coming years. “TTB has recently launched the MICE Incentive Plan for 2013 with MICE centric sample itineraries, gifts, special schemes and assistance and giveaways designed to attract MICE groups to the country. This also included discounts and performances from the TTB specially geared towards the Indian market,” he said. TTB also plans to organise multiple FAM tours for MICE organisers.
After a period of rapid and unprecedented infrastructure development, Macau has emerged as one of Asia’s newest business tourism destinations. The incentive group coming to Macau should have minimum 50 non-Macau participants with at least two consecutive nights of stay in Macau hotel. A maximum support of MOP$300 will be granted on actual consumption per non-Macau participant for their incentive activity in Macau.
Although India is a relatively a new market for Abu Dhabi, Bejan Dinshaw, Country Manager, India, Abu Dhabi Tourism & Culture Authority, sees huge growth potential for MICE. “We are also hoping that the Etihad stake in Jet Airways will assist us greatly by opening up regional Indian hubs to Abu Dhabi,” he said. Dinshaw further informed that business events in Abu Dhabi was estimated at US$6.5 million in 2010 and is anticipated to increase to US$13.3 million in 2020. “This is based on an increase of seven per cent per annum on average between 2010 and 2020, however, now with the newly formed Abu Dhabi Convention Bureau this can potentially increase at a much higher rate up to 10 per cent per annum CAGR over 10 years.”
Egypt Tourism Office (ETO) is also focused on driving business travellers to their country. Adel El Masry, Director, ETO said, “More than 35-40 per cent of outbound from India is MICE tourism and it is imperative that we enjoy a slice of that mix. Government of Egypt has allocated US$500,000 to the Ministry of Tourism’s MICE department to promote the sector for financial year 2012-2013. This will help support the initiatives of overseas outbound agents to promote MICE in Egypt.” ETO will be organising road shows in Mumbai, Delhi, Hyderabad and Ahmedabad to highlight their MICE offerings.
With Oman embarking in the MICE industry as a key growth market, the Sultanate’s tourism development and management company, Omran, is building the OMR 330 million Oman Convention and Exhibition Centre (OCEC). “The new Oman Convention and Exhibition Centre will open in 2017 and will provide state-of-the-art facilities and convert Oman into a competitive venue for major global and regional events. This will enable Oman to host major meetings, incentive, conventions and exhibitions events,” revealed Lubaina Sheerazi, India Representative, Ministry of Tourism, Oman.
Nishant Kashikar, Country Manager – India, Tourism Australia opined that international business events visitors contribute great value to Australia. “Recently, Melbourne witnessed one of the largest Indian incentive groups ever to be hosted in Australia – more than 4,000 Indian delegates. We have been working alongside our partners to reach out to the corporate community and encourage incentive travel to Australia through a wide range of activities including familiarisation visits, destination training sessions for travel partners and niche events.” He further added that by 2020, this sector has the potential to contribute up to A$16 billion annually.
Germany, being a leader in Indian MICE to Europe, received 584,508 Indian overnights, of which MICE contributed to 60 per cent of the total number. There are more than 6000 conference hotels and event locations, said Romit Theophilus, Director – Sales and Marketing, German National Tourist Office, India. Commenting on their marketing strategy to promote Germany further, Theophilus said, “We will carry out MICE specific corporate presentations to key corporate personnel in sectors such and banking and financial services, pharma and IT.”
France boasts a powerful infrastructure of over 612,000 hotel rooms, 120 convention centers, 80 exhibition centers which makes it a perfect MICE destination form meeting and event planners. According to Catherine Oden, Director Atout France India, Business travellers believe in business mixed with pleasure and as an all round destination France offers both. They plan to project Nice, Cannes, Deauville and Evian as affordable MICE destinations.
Spain is also not lagging behind and foresees great potential in terms of Indian outbound for the MICE market. “Spain received around 60,000 Indian tourists in 2012 and approximately 15 – 20 per cent consisted of MICE groups, and around 25 per cent were business travellers, revealed Arturo Ortiz Arduán, Tourism Counselor, Tourism Office of Spain in Mumbai adding that in 2013, Spain is expecting an increase in the figures from last year for MICE participation in Spain.
NTO’s believe that MICE trends are expected to pick up in 2013 and will prove to be one of the major travel segments in the Indian market. Meeting size is growing, meeting space is changing, luxury space is making a comeback and emphasis is given on teambuilding activities. The growing economy and increase in international trade, increased participation in conventions, exhibitions and corporate meets is fuelling the growth of the outbound MICE segment.
