Lack of infrastructure and proper marketing strategy has pushed India back as a global MICE destination
India is all set to go the global way and Meetings, incentives, conferences and exhibitions (MICE) is fast becoming a core part of its tourism strategies. When it comes to the Indian market as a MICE destination, incentives is still the largest component of MICE. But nonetheless, India is looking to grab the lions share in the global MICE tourism segment. Earlier the main challenge for MICE to flourish in the country was lack of connectivity and infrastructure. MICE was not even marketed in the way it should be.
With the new Government understanding the business of MICE, is all set to promote it on a global scale. The Government is now supporting private players under PPP mode for setting up large and small Convention Centres with exhibition facilities at various metros and other cities. These Centres will not only fetch a large amount of foreign exchange but also give boost to other economic activities. Today India has a lot of MICE infrastructure, some still underutilised. According to statistics, around 90 per cent of the MICE businesses globally are small in nature with a maximum of 200-250 pax. Today, India is very well equipped to cater to this segment, yet we have not been able to completely tap the potential of this segment.
“MICE is a significant segment within the tourism and hospitality sector and the government hopes e-visas for business travel will boost the segment further. Electronic visa would make it attractive for business travellers as they tend to have lesser time to plan trips than leisure tourists. We feel e-visa for conferences and meetings could go a long way,” said Suman Billa, joint secretary in the tourism ministry.
Speaking about the potential Julia Tham, General Manager, Mercure Lavasa and Lavasa International Convention Centre said, “It is important to remember that the MICE industry is one of the fastest growing segments within the tourism industry in India. The prospects for the MICE industry are bright as the economy has started picking up. As the economy improves, the demand for exhibitions, meetings and events is going to increase leading to exponential growth. Plugging challenges like finding and retaining skilled manpower, improving domestic connectivity and setting up of a centralised agency to monitor the growth and development of the MICE segment together will help India harness its full MICE potential.”
Governmental focus
Government of India has taken one of the major steps to revamp Pragati Maidan Complex. This is one of India’s most premium venues for large exhibitions. The existing Pragati Maidan Complex that so far used to organise National and International Exhibitions and facilitate holding of various other events, is set to get all new face with its upcoming redevelopment into a World class state-of-the-art Integrated Exhibition-cum-Convention Centre (IECC).
LC Goyal, CMD, India Trade Promotion Organisation (ITPO) recently announced the launch of this sophisticated Project to be implemented by the latter at a cost of approx. Rs 2,500 Crore. Once redeveloped, IECC will be a landmark spot in Delhi and a symbol of Hon’ble Prime Minister’s vision of ‘New India’, they informed.
Conceived by NBCC in association with ARCOP Associates and Aedas Pte of Singapore, the IECC shall be developed with latest architectural design along with basement parking facility of 4800 vehicles and comprehensive traffic decongestion interventions. The Convention Centre will be 32.4 mtr. tall landmark building on par with the best in the world. This structure will be on an elevated podium with unique slopping facade incorporating rich architectural heritage of Delhi. The Centre will have a capacity of 7000 pax in single format (Plenary Hall with fixed sitting of 3000 pax and Multi-Function Hall of 4000 pax) and amphitheatre with 3000pax. There will be altogether 30 Meeting Rooms of different sizes and capacity and the complete structure of the Centre will be built with a mix of red stone and Dholpur white stone and GFRC. The implementation of the whole project shall also have the provision for monetisation of land for a 500-Key Hotel.
Exhibition segment of the Integrated Centre shall comprise 7 new modern Exhibition Halls along with pre-function area with exhibition space of one lakh sq. mtr. Each Exhibition Hall will have integrated F&B facility. There will also be exhibition open area (15 acres) with 4 open amphitheatres, (two of 900 pax each and two of 600 pax each) with two colourful fountain areas. The complex will also have covered walkways/canopies & skywalk connectivity with Pragati Maidan Metro Station.
Both the Stakeholders revealed the detailed timeline of the project saying that the vendors for both IECC project and Traffic Interventions would be in place by the end of June, 2017 and the construction work would start by July, 2017. The Convention Centre, they informed, would be completed by November- December, 2018 and the entire project by July- August, 2019.
Speaking about the new initiatives Chander Mansharamani, Vice Chairman, India Convention Promotion Bureau added, “There are number of steps that have been taken by MoT in the form of greater participation in MICE related shows in the world. We at ICPB have drawn a plan to market India as a preferred convention destination. The other good news is the new additional infrastructure coming up in various part of the country. To further tap this market, it requires very aggressive marketing and promotional activities. We are sure with the new approach; we will be able to achieve the target.”
Infrastructural insights
The traditional players in the MICE business are all now looking to upgrade their infrastructure at par global standards. The most used convention centres in India Pragati Maidan in New Delhi and Bombay Exhibition & Convention Centre in Mumbai are set to go for makeover. One of the key reasons for this sudden development is the rise of the new players. Today Hyderabad International Convention Centre is regarded as one of the venues which is at par with global convention centres. AccorHotels is also launching an international convention centre in Jaipur. Also a mega convention facility is all set to come up in Knowledge Park II in Greater Noida soon.
The lack of world-class convention centre coupled with other infrastructural challenges has been a major hurdle for the growth of this segment. Ironically, the Govt. of India itself is facing challenges to organise a mega global summit as was seen during Indo –Africa Meet which was organised in a stadium rather than a convention space. This prompted the government to expedite the process of developing convention centres across the nation.
Gorav Arora, Director of Sales & Marketing, Novotel Hyderabad Convention Centre & HICC said, “2016 was a successful year for Hyderabad, as we at Hyderabad International Convention Centre hosted several large conferences bringing more than three lakh international and national visitors to the city. The contributing segments included IT, medical tourism, agriculture, financial services and aero sciences. Both Hyderabad International Convention Centre & Novotel Hyderabad Convention Centre have been integral to the growth of MICE, helping catapult Hyderabad to the top four Indian MICE cities based on number of events we have hosted at our venue. We expect 2017 to be much stronger with higher number of conferences. Apart from the segments which performed well in 2016, various international associations and conference boards will also contribute to this year’s progression.”
Positive news for the MICE industry is the new venture by Reliance Industries. The group is all set to launch a state-of-the-art convention centre in Mumbai which is set to be the country’s largest Convention Centre – The Dhirubhai Ambani International Convention and Exhibition Centre. Reliance has invested US$680 million in this project. The project is located in the heart of business capital of India – Mumbai – Bandra Kurla Complex, popularly called as the BKC. The project revolves around four buildings including a Convention Center, an Exhibition hall, and a Theatre in a 75,000-square-meter plot in the centre of Mumbai. The Convention and Exhibition Centre will be a mixed development project that will include retail space, service apartments and hospitality facilities.
Another convention centre which is yet to tap the chunk of the MICE segment is The Lavasa International Convention Centre (LICC) situated right on the banks of Warasgaon Lake. LICC is spread over 1.5 acres of land, offering 34,500 sq ft. of flexible floor space. The meetings space includes six additional break-out rooms, a Board room, a Business Centre, a Media centre, and a VIP room. LICC is one of a kind property which embodies a huge pillar-less area for events & exhibitions and has vibrant interiors to break the monotony of long conference sittings.
Tham said, “MICE segment in India is still at a nascent stage and will take some time to develop to its full potential. There is been a dramatic change in the hospitality industry over the years as the portfolio of the clientele has diversified over the years from only leisure to business and leisure travellers. Hotels today offer a diverse portfolio of services, MICE being one of them. Therefore, the focus of hotels is to promote all the services they offer equally. Every hotel is trying to diversify their service offerings and therefore typically does not promote itself only as a MICE destination or only as a leisure destination. Today, destinations that were considered to be leisure destinations are fast becoming MICE hubs as they provide a perfect balance of work and play.”
He further added, “Lavasa also falls in a similar category. Lavasa city is a leisure as well as MICE destination and we are promoting it to two sets of travellers in two different ways considering their needs and expectations. Lavasa International Conventional Centre is promotes as an ideal MICE & Wedding destination and as a great weekend gateway for FIT travelers as well. Rate strategies have been implemented keeping in mind the strength and weakness of Lavasa being as a destination.”
Challenges
MICE segment does no doubt taste some success in the Indian market. But still a lot of developments are yet to happen. One of the major steps to tap the MICE is the introduction of e-tourist visa for MICE. At the moment MICE industry in India is fragmented, with less specialisation than some other MICE destinations. India’s MICE industry is still in its growth stage and we are witnessing the emergence of new destinations within the country. The MICE sector in India is making a steady comeback as transport and Infrastructure development gains momentum. The connectivity to Tier II and III cities is another important development which needs to be looked at.
Tham added, “Hotels are already facing intense competition and the MICE sector is expected to see significant growth. As new meetings formats and technology will continue to develop, hotels need to assimilate these changes and adapt to latest trends. Hotels seeking to increase their share in the MICE market must create more flexible services and adapt a new attitude to change to offer the best experience to their guests. There is also a need to bridge the last mile connectivity and give a boost to infrastructural development to see rapid growth in the MICE segment. Training of manpower and retaining highly skilled manpower is another area that needs to undergo boost, especially for a highly specialized business like MICE.”
Another major challenge for the entire industry is skill development and talent retention. MICE is a very specialised and niche business and requires a lot of highly skilled manpower, which at the moment is difficult to procure in India.
Speaking about the challenges Arora stated, “Hospitality is a highly dynamic industry and employee turnover is one of the biggest challenges that the industry faces today. Novotel Hyderabad Convention Centre and Hyderabad International Convention Centre attract a large number of MICE guests and business travellers. For us, one of the major challenges is getting the skilled employees and retaining them with the company. Both international & national visitors travelling for MICE events have a specific set of requirements as they come for different nature of events. To serve these guests up to their satisfaction level, making their stay and meetings at the property a memorable and flawless experience, demands a proactive understanding and a greater skill set at employee front. Hence to bring such talent in the company and train them as per AccorHotels’ service standard is imperative. With growing opportunities in the industry it becomes a challenge to find good resource and retain them.”
Speaking about the overall MICE infrastructure challenges in the country Om Prakash, Director, In ORBIT Tours stated, “Despite continuous efforts, our infrastructure has not improved that can be compared even with neighbouring countries like Dubai, Thailand, Malaysia, Singapore and China. Beyond our metro cities, the facilities are not to the mark.”
