Asians, incentive travel: Cash cows for MICE tourismBy Sunimalee Dias
View(s):The Sri Lanka Convention Bureau has unearthed information from the MICE tourism sector that showcases Asians visiting Colombo more and earnings from incentive travel rated the highest income generator as opposed to exhibitions and conferences.
The proportion of international and local MICE events indicates that the former generated only 28 per cent events whereas the majority of 72 per cent was from the latter in 2013 according to a study carried out by the bureau that has once again revived its research bulletin.
Meetings and conferences generated total revenue of over US$62 million with US$ 55 million generated from international events amounting to 1182 compared to the 5194 local events, the research bulletin stated.
Exhibitions had generated US$2.9 million from the local and national events with only US$677, 667 generated from the international segment, it was stated.
Incentives boosted revenues for the MICE tourism sector bringing in over US$112 million with the highest generated from the local group travellers, the research bulletin noted.
The study findings indicate that Sri Lanka continues to attract a large number of international incentive groups and the highest revenue generator is the incentives segment that brings in 63 per cent of the total MICE revenue. But it was noted that there were only 49 local groups compared to 908 international groups arriving on incentive travel, the bulletin stated.
The total revenue generated from international and local MICE travellers indicate that the latter comprises only 6 per cent amounting to US$10.2 million compared to the former that totals US$167.6 million.
In addition, the research bulletin states the highest number of MICE arrivals in 2013 were from South Asia at 41 per cent followed by the Middle East at 20 per cent, and the UK/Western and Eastern Europe at 15 per cent.
Another interesting finding was that out of the total number of international delegates, the city hotels attract a relatively higher number at 67 per cent as opposed to the 33 per cent heading towards resort hotels. The resorts were found to attract a higher number of local participants on the other hand amounting to 78 per cent, it was noted.
Comparing city hotels, resorts and others it was reportedly found to have proportionately generated 39 per cent, 37 per cent and 24 per cent, respectively, the research bulletin stated.
The city hotels also were found to secure a considerable volume of business from the international meetings segment amounting to 23.4 per cent and international incentive groups totalling 12.4 per cent whereas the resort hotels cashed in on a market share of the local incentives segment of 93.8 per cent and 69 per cent of the international groups and 81 per cent of the international meetings and conferences that was said to be the strength of the resorts in the MICE business.
Analysing the MICE market, the bulletin noted that since the end of the conflict the Destination Management Companies, Professional Congress organisers and Event Management Companies together with the Convention venues have generated the MICE business to the country handling collectively 65.8 per cent of the international conferences and 88.2 per cent of the exhibitions.