Monday Nov 25, 2024
Monday Nov 25, 2024
Wednesday, 25 September 2013 00:10 - - {{hitsCtrl.values.hits}}
The MICE – Meetings, Incentives, Conferences and Exhibitions (or Events) trade, part and parcel of the entire tourism package, is a lucrative business, one that has shown steady growth over the past few years. MICE tourists represent the up-market calibre of tourists spending three to four times more than an average holiday marker.
With the local industry eyeing 2.5 million tourist arrivals by 2016, expected to bring in foreign exchange earnings of US$ 2.75 billion to the country, developing this segment of the industry is of key importance, Sri Lanka Convention Bureau General Manager Vipula Wanigasekera said.
Speaking at the ‘SriLankan Holidays and SriLankan MICE Conference 2013’ held at Jetwing Blue last week, Wanigasekera explained how the growth of this industry could positively affect the entire sector.
Organised by SriLankan Holidays and the MICE Department of SriLankan Airlines, the conference attracted over 150 participants, including SriLankan Holiday Franchise Operators (SHFO) and SriLankan Holidays Ground Operators (SHGO), MICE operators and foreign media representatives from all SriLankan online points network wide.
MICE tourism in Sri Lanka
Wanigasekera noted that MICE include a range of products that generally lead to trade and investment opportunities with the ability to generate additional employment and build the image of the country. As such, MICE could be considered a separate industry, he said.
The areas covered under meetings are seminars, workshops, board meetings, brain storming and planning sessions, while under Incentive travel falls leisure and motivational and team building trips. Conferences, conventions and congresses, as well as exhibitions and events are also part of the sector.
“The Sri Lanka Convention Bureau was set up in 1987 to place Sri Lanka as a sought-after venue regionally 
and internationally for MICE tourism and receive optimum revenue from this segment,” he said.
With the bureau acting as a catalyst in creating an environment conducive for the promotion of MICE industry, the country is today bidding support for Asian Youth Games in Sri Lanka in 2017, Hydro Asia Conference and Exhibition2014, Blood Transfusion Conference and International Consortium for Social Development-18thBiennial Symposium 2015 among others.
With the key event under this segment for the year being CHOGM to be held in November, Sri Lanka has been the proud host of several key events such as the Commonwealth Parliamentary Association Conference, IATA Global Aviation Summit, The 46th Conference of the Governors of the South East Asian Central Banks, International Ship Suppliers Association Convention and 1st South Asian Overseas Education Advisors’ Conference, etc.
“A number of regular exhibitions held in the country also attract a healthy number of participants such as the Hotel Show, Lankapack and Facets Jewellery Show in a long list of events. SLCB in the past has also supported some of these events such as Jaffna Trade Fair, Kite Festival and Jaffna Music Festival.”
Wanigasekera emphasised that a number of corporate meetings and incentives of reputed companies have 
also taken place in the country.
Key tourism strategies for growth
With an anticipated US$ 1.4 billion revenue growth in the tourism industry for 2013, Wanigasekera explained that the authority has adopted five key tourism strategies to accelerate growth in the industry and place Sri Lanka in a higher position in the world travel and tourism market.
The key strategies are – creating an environment conducive to tourism, attracting new tourists, ensuring that departing tourists are happy, improving domestic tourism and creating a positive image and greater awareness of Sri Lanka globally.
Under these, the industry has worked on a policy framework to support investors and trade and has come up with infrastructure to meet industry requirements, transport solutions to ensure speedy and convenient travel, easy access to attractions, well-coordinated and effective marketing, international quality standards and addressing manpower requirements.
“We have also worked on identifying the target markets and customers and have focused promotional campaigns in chosen markets. Such work helps strengthen links with international tour associations,” he said. “Strong web marketing through an interactive web portal and technology driven tourist information centres to support global requirements is in place.”
Work under transport solutions to ensure speedy and convenient travel includes establishing separate counters for foreigners at immigration, customer satisfaction survey at immigration counters, hassle free taxi service at airport, trained tour guides, well-coordinated Tourist Police providing protection and awareness campaigns to gain public support for tourism.
The industry is also working with the local authorities and other relevant agencies to raise standards of rest houses, gust houses and small hotels and is marketing lesser known attractions through media. They are also working closely with foreign missions and using the diaspora for tourism promotions and have built close links with international media particularly in media houses of target markets.
“While the Government takes on the planning, policy making role while providing common infrastructure, coordinating capacity building and identifying thrust areas/zones/projects, the private sector must identify and invest into new business opportunities, build capacity, train staff and improve service standards, continuously create value added products, market year-round capacity management, and ensure corporate and social responsibility and industry sustainability,” Wanigasekera said.
Policy and operational level initiatives
Wanigasekera also listed several initiatives taken on policy and operational level over the years to boost the industry.
Policy level initiatives:
Wanigasekera stated that the number of new rooms by 2016 is likely to increase to 3,000 in Colombo, 1,500 in Jaffna, 500 each in Silavatura, Dedduwa, Sigiriya/Dambulla, Hill Country and Mullaitivu Vakarai, 400 in Kalpitiya, 2000 in Kuchchaveli, 1000 in Passikudah, 300 in Arugam Bay, 400 in Yala and 3,000 in Hambantota.
While a number of international brands such as Shangri-La, Hyatt, Movenpick, Four Seasons, Hilton, Anantara Group, MFAR International, Krrish Group, OZO Group, Aman, ITC Sheraton and Marriott have shown interest in expanding their investments to Lankan shores, local blue-chip companies such as John Keells, Jetwing, MJF Group, Aitken Spence Group, Hayleys Group, Hemas Group, Softlogic Group, Cosmos Group, ICC, Citrus, Connaisance, and LSR are also committed to setting up new hotels within the country.
Hambantota, an area that has been focused on for development as a commercial hub, is expected to contribute immensely to the industry growth. “Among the new hotel projects in Hambantota are the Shangri-La Group, Airport Hotel, TRC Hotel, China Habour, Cosmos Hotel, Jetwing Yala, Jetwing City, ICC Uga Bay and Laya.”
Peace offerings
Thanks to the end of terrorism, Sri Lanka now has an undivided focus on planned development, steady FDIs inflow, more land available to develop and cultivate, more funds available for infrastructure development, educated and skilled youth returning to the country along with the unprecedented surge in tourism arrivals.
“The favourable investor climate is based on the social indicators that place Sri Lanka among the best in the region with high gender equality in worldwide terms, attractive factor costs, low tax regime, relaxation of strict foreign exchange controls, BOI reforms, fiscal prudence and 100% repatriation of earnings among other factors,” Wanigasekera said.
Safety of foreign investments guaranteed by the Constitution, strong Intellectual Property Law in line with WIPO Regulations, signatory to the Multilateral Investment Guarantee Agency (MIGA) of the World Bank, investment protection agreements with 26 countries, 12 Export Processing Zones and double taxation relief agreements with 38 countries have also had a role in creating the conducive environment.
“While the international rating agencies have been downgrading ratings of many countries around the world, we have been able to gradually improve our status. Today rating agencies Fitch, S&P and Moody’s all reflect stability in their ratings of Sri Lanka,” he asserted.
Wanigasekera said: “Sri Lanka is a country with much to offer. We urge you to continue your support towards the country and help us achieve the success we hope to achieve. The benefits of the industry will rightly be distributed among all parties. Sri Lanka is the best place to be right now, as we prepare to capture the markets we have lost during troubled times and get our share in the world market.”
SriLankan Airlines’ commitment to MICE
“Sri Lanka has great potential in the MICE sector and our business plans will have a strong focus on MICE, leisure and business travellers,” SriLankan Airlines Chairman Nishantha Wickremasinghe said.
The airline’s internal product offering is constantly being evaluated to ensure that it is on track with world trends and demands in the domestic market. The airline has upgraded the business class seats, increased flight frequencies and is now re-fleeting and set to expand the network.
“We know conferences and conventions bring a fresh meaning to consumer mixing work with leisure,” he said. “Sri Lanka offers a travel experience like none other. The island offers a host of activities and natural wonders for any kind of travel. You name it, we have it. We are the ultimate tropical destination where summer is a perpetual joy.”
Chief Marketing Officer G.T. Jayaseelan, agreeing with the Chairman that the airline was now looking at how best it can plan out its future aligned to the development of the country, noted that the MICE industry itself is going through an era of vigour on a global scale. “The world is coming out of a crisis and the MICE market itself is preparing for growth,” Jayaseelan said.
However, opportunities also bring challenges. The traditional boardroom type of meetings are now taking a back seat in the agenda to a more modern technology, modern way of thinking with open air meetings and team building exercises becoming part and parcel of the new product. “In this era it is mandatory that we who are involved in promoting MICE and holidays start thinking of new ways of doing business.”
Typical old time registration for conferences is now being replaced by new technology such as Facebook and Twitter. “In this era of emergence it is important that we transform ourselves to meeting the demands in terms of numbers, new product and new way of doing business,” Jayaseelan asserted. “Sri Lanka not just offers you infrastructural meeting but a relaxing environment which is becoming part of the MICE industry.”
The Sri Lankan hospitality industry is working together to make Sri Lanka the dream destination in the next decade, he said. “We urge you to continue being our partner in this new era. Prospects of the MICE industry are looking bright and changing trends are a clear challenge. In order to survive and continue as a critical engine of growth we have to transform ourselves and the way we do business.”
Regional Manager for Sri Lanka and Maldives Saminda Perera noted that Sri Lankan Holidays and SriLankan MICE are key performers in the airline’s business model.
The country’s rapid growth and higher per capita income is reflected in both leisure travel and incentive travel; and the incentive segment in particular has evolved beyond its original definition. Today it is not limited to the people who work on the payroll but also gone to family members as well. Lot of incentive and corporate sponsored travel is now going beyond just the meetings and it is now time to focus on the inbound travel as well, Perera asserted.
“We are reviewing our current SHFO and SHGO plans. The basic idea behind this is to see whether we have got the maximum out of our partners in the network. We will review and appoint new partners. It all comes down to productivity and lucrativity in business. This year we wish to gain maximum out of our extended sales force. Some tough decisions will also have to be made but I am confident that each will be able to prove to the management that you can grow SriLankan Holidays and MICE business in your respective markets,” he announced.
Pix by Daminda Harsha Perera
