Sri Lanka prepares for 240,000 MICE tourists in 2016

By Cheranka Mendis

Sri Lanka is fast gaining popularity in the MICE tourism industry, with 11% of the total visitors coming into the country representing the segment, while the industry anticipates the arrival of 240,000 MICE tourists by 2016, which is nearly 10% of the 2.5 million tourist target.

Sri Lanka Convention Bureau (SLCB) General Manager and Sri Lanka Tourism Acting Director General Vipula Wanigasekera told the Daily FT that nearly 70% of the tourists will be generated through incentive and corporate meetings, an area of strength for the industry, bringing in the ‘cream of business’ in tourism.

With approximately 30 international conferences lined up in this year alone, the country is geared to reap maximum benefits from this high earning segment of the tourism industry. Following are excerpts from the interview:



Q: How has the MICE industry grown over the past year on a percentage basis and what is the envisioned percentage growth for the sector by 2016?

A: Around 11% of the total visitors into Sri Lanka represent the MICE segment. However, it is difficult to ascertain the actual number of corporate visitors and incentive travellers at times as they declare themselves as tourists which is a dilemma not only faced by Sri Lanka but by all other countries as well. Nevertheless, over 100,000 MICE visitors is not a bad figure for the country.

By the time we reach 2.5 million tourists, we should easily have over 240,000 MICE tourists, amounting to nearly 10% of the total figure. Nearly 70% will emerge from incentive and corporate meetings because that is where Sri Lanka’s strengths are. The growth of MICE has not been on par with tourist arrivals for obvious reasons but MICE is the cream of business in tourism.

 Q: For those who are not familiar with the term ‘MICE’, what does this actually mean?

A: MICE tourism stands for meetings, incentive travel, conferences/conventions and exhibitions. Recently they added events to the ‘E ‘of ‘MICE’ as well, with the widening scope of MICE into various types of events.

The MICE tourist is an up-market visitor who spends three to four times more over an average holidaymaker – conference delegates, exhibitors, incentive travellers, spectators of events or corporate professionals coming for meetings and other programs.

Q: Why is MICE not explicit as tourism?

A: It is a less explicit industry because it is a specialised one which requires expert professionals to run it.  Besides, MICE calls for different strategy and this is one challenge that the SLCB faces when it has to describe its role to incoming heads of institutions, associations and even government institutions that are capable of bringing MICE events to Sri Lanka.

Countries like Singapore, Malaysia, Hong Kong and Taiwan consider MICE to be a separate industry with a tourism element and not the other way around. The industry involves many support services, generating a considerable amount of direct and indirect employment. MICE travel encourages repeat holiday visits and other trade and investment transactions not necessarily relevant to tourism. Therefore these countries gave priority to MICE over the past years, strengthening the current standing on MICE, which Sri Lanka needs to catch up with.

Q: You stated that the MICE tourist spends three to four times over an average holidaymaker – around how much does that amount to approximately?

A: US$ 300-400 per day. Apart from the registration fee and conference packages, their expenditure is always borne by someone else – association, company, government etc.

Q: You also noted that each of the elements in MICE call for different strategies. Has Sri Lanka embraced this, developing separate plans under categories?

A: Yes, certainly. We are paving the way for the industry to deploy their own activities depending on their strengths. Some are experts in exhibitions while others are good at staging creative incentives. Conferences are also specialised areas that some individuals and organisations have mastered. Certain big companies have different arms to handle all sectors. The crucial factors lie in the basics of marketing and in identifying the known or hidden desires of the customers. The one who does this and meets that effectively will have a strong brand image for MICE.

Q: Will Sri Lanka be able to create a model where MICE would be separate from tourism? What will be the key benefits then?

A: I believe that it is possible with time. Sri Lanka was primarily a leisure destination which extended to MICE in the ‘80s. Singapore and Malaysia did not launch their holiday campaigns until 2001 so they had ample time to establish the MICE industry which also contributed when the countries opened up to cater to the leisure segments.

Sri Lanka would have done the same, and much better, if not for the conflict. We survived until peace arrived and there is no looking back now for both tourism and MICE tourism.

Q: What is the target market for MICE?

A:  For association meetings, our primary target market is the Asia Pacific. For corporate meetings, India is our key target while South Asia in general is our secondary target. Incentive travel looks at Europe as well as India as primary markets, and Asia Pacific as secondary, while for exhibitions and events, South Asia is the primary market and Asia Pacific comes second.

Q: What are the MICE events that the country can look forward to this year?

A: This year in the conference sector, there are about 30 international conferences that have been lined up. For some, the SLCB is directly involved. In others, the organisers have gained enough expertise to secure them on their own.

Among some of the conferences are the 22nd Working Meeting IUCN SSC Crocodile Specialist 2013, eighth SA Regional Conference of Dermatology, 42nd SKAL Asia Pacific  Congress, second International Conference on Engineering Mathematics and Physics, eighth International Conference on Computer Science & Education (ICCSE 2013), second International Conference on Psychological Sciences and Behaviours (ICPSB 2013), fifth  International Conference on Future Networks (ICFN 2013), International Conference on Information Applied Electronics (ICIAE 2013), second International Conference on Innovation, Trade and Economics (ICITE 2013), International Conference on Law and Justice 2013, International Symposium on Community Governance Colombo, Sri Lanka, first International Conference on Biodiversity 2013, International Conference on Agricultural and Animal Sciences 2013, and International Conference on Architecture and Engineering in Urban Development (AEUD 2013).

Q: How about events planned for the future?

A: The SLCB prepared and presented a successful bid for the Asian Youth Games that is coming to Sri Lanka in 2017. This will be the largest sports event to be held in Sri Lanka. We are happy to have been associated in the preparation of the bid, bidding process and presentation in Macau, prior to signing the agreement. We also assisted the local partner for the bidding of Hydro Asia and we have almost secured that for 2014. This conference will open up opportunities for hydro technology.

Similarly, some conferences and exhibitions bring in very high profile delegates. Although their organisers are conscious of conference expenditure, the Government subsidises a number of activities such as transport, tours, functions, etc., knowing that the delegates spend much more elsewhere through shopping and entertainment, from which the country gains as a whole.

Q: What is the future strategy for the MICE industry and the role of the Convention Bureau?

A: Sri Lanka’s current tourism strategy is naturally focusing more on infrastructure, product, attraction development and investments. The Government has taken a timely decision by embarking on the construction of two convention centres, one in Hambantota and another in Peliyagoda.

This is in addition to the expansion of the BMICH and the facilities available in city hotels for conferences. The potential for the growth of exhibitions is also enormous with the existing facilities becoming full with bookings.

SLCB, in consultation with the MICE industry comprising PCOs, PEOs, DMCs, event management companies, tour operators, venues, and of course our partner SriLankan Airlines, came up with a new strategy which we hope to implement. This takes into account the overall tourism strategy and the paradigm shift after the Government brought in permanent peace into the country.

 

Q: How do you intend on strengthening SLCB through new strategy?

A: We are hoping to strengthen the SLCB’s research division to work continuously in locating and spotting events that have the potential of being brought to Sri Lanka. SLCB works closely with relevant local institutions to attract these events. This is an activity we undertake in planning for the future and when the event eventually comes to Sri Lanka, the Bureau has already moved onto working with other organisations to bid for events to be held here in three to four years time.

SLCB took a bold step to strengthen activities in India in the latter part of 2007 with SriLankan Airlines and promoted the corporate meetings segment aggressively. The limited funds diverted to this venture have brought in more than desired results.

Since then, most of the Indian blue-chips including Sony Erickson, WIPRO, Virtusa, Titan, BOSCH, Microsoft, Coca-Cola, TVS, Johnson & Johnson, Nestle, Nokia, General Electric, Pepsi-Cola, Reckitt Benckiser, Samsung, Amway, etc. have chosen Sri Lanka for their meetings. So this area needs to be strengthened.

Communication functions of the Bureau range from developing innovative and creative methodologies to reaching out and identifying untapped markets to host joint promotions with Sri Lankan Airlines, hosting country promotions, lobbying opinion leaders of associations and institutions, attending MICE fairs, and organising familiarisation tours. SLCB carries out this task with a smaller budget, but effectively and productively.

Q: What’s the future for MICE in Sri Lanka?

A: Given the infrastructure and other facilities, Sri Lanka has done reasonably well. With continuous attention and focus, MICE should do well. We always need to understand and bear in mind the strengths Sri Lanka has against our competitors.  

There is no need to go head on with giants because our competitive edge lies in having locations of diversity and ancient culture, which cannot be matched with sophistication. Hence the emphasis on incentive travel and smaller corporate meetings, while the conference, exhibition and events market will continue to be promoted on par with infrastructure development.