MICE is not an extension of tourism
Sri Lanka, having faced vicissitudes in the past, has regained her position in tourism and is now looking for strategies to move forward from where the industry is placed at present.
Apart from the total peace in 2009, there were many factors that contributed to this present achievements which included:
- Tourism campaign for two years that repositioned the country as a ‘Wonder of Asia’ with authentic, diversity in compactness
- Securing sufficient funds for promotions through taxes
- Development of tourism resorts such as Passekudah, Kuchchiveli, Yala, etc enhancing the product range
- Establishment of a one-stop shop to speed up investments
- Relaxation of visa procedures to online visa
- Arrival of Shangri La, Sheraton, Movenpick, Best Western, Hyatt, Marriott, Ananthara
- Local blue chips ploughing back profits into expansion of the hospitality sector
- Engagement in routine promotions such as trade fairs through better projection of destination
- Individual efforts by the industry to secure market niches for their respective expertise
MICE tourism is still misconceived as being part of tourism although MICE too gained simultaneously during the last few years recording well over 250,000 visitors for MICE by end of 2016.
The Sri Lanka Convention Bureau (SLCB) was initially established in the 80s’ and made a useful contribution especially in the area of incentives through participation at IMEX, EIBTM fairs, etc. When peace dawned, the SLCB went on to strengthen the meetings segment from India, conferences through local associations and with assistance to exhibition organisers. MICE tourism in fact is a separate industry which has an extension of tourism. In the light of that, Sri Lanka’s potential in MICE is far greater than what has been achieved so far if some of the following can be looked at effectively which we believe are the fundamental issues.
- MICE requires separate strategies for Meeting, Incentives, Conferences, Exhibitions and Events. If one looks at the MICE industry everyone knows who specialises in what. MICE is not just one business although we use this terminology which seems to have confused many.
- The exhibition space in Sri Lanka is full. It is almost impossible for a new exhibition organiser to establish a new exhibition even if it is an international event. The proposals submitted to authorities are yet to receive positive response. The available convention halls cannot accommodate bigger conferences attended by over 2000 delegates. The BMICH, Nelum Pokuna Hambantota Convention Centre are auditoriums and they are neither large enough nor multi-purpose centres. Recommendations for Hyderabad, Suntec-type models, need to be revisited.
After eight years of peace, we have come to a juncture where some major policy decisions are necessary which we believe the authorities are working on especially in the following areas:
- Tourism Act: Having learnt many lessons after the enactment of the last Tourism Act, it is necessary to look at all aspects with consultations before a new Act is presented in parliament
- Allowing clear policies for future on ‘Numbers vs Quality’, ‘Income Vs Value’, ‘Adhoc vs Consistent’ promotions apart from infrastructure development including lands and resorts.
- Diversity of attractions is a strength but without a destination promotion or a rebranding campaign, the diversity can be even a weakness from a ‘Marcom’ perspective.
- Revisit the Chinese and Indian markets and understand limitations while securing Europe.
- Try out new markets like the entry to Australia. It is always better to have trial and error marketing without making guesses for the future.
- Relook the informal sector which may outgrow to an extent where the standards will not be maintained in the long run.
- Unplanned development taking place in the absence of tourism designated locations.
- Procedural issues that prevent the political will being pursued. Deviations are inevitable in tourism promotion provided the flow of actions is transparent. We are yet to see the process being simplified to grab opportunities coming Sri Lanka’s ways.
In addition to these, the MICE industry needs:
- Revival of meetings from India which calls for specific actions /consistent promotions specially with meeting planners in India.
- Assistance to incentive travel with focused promotions targeted to incentive houses in identified markets.
- Establishment of industry relations beyond associations to various institutions.
In conclusion, we, in this part of the world, tend to have self-satisfying postures painting a more-positive-than ever picture of what is being done. There is a need to take the bull by the horn if the concerns are to be addressed effectively and meaningfully. At the end, success needs to be reflected through real income and the quality of tourists whom we attract with the brand equity of the destination.
MICE definitely brings in high end visitors. The authorities must look at the overall benefits rather than the room rate, number of days of stay, etc. Besides no country can rely on basic MICE statistics coming from immigration as MICE visitors hardly declare themselves as the purpose of visit being business.
Apart from the higher revenue, MICE generates many spin off benefits including support services, indirect revenue through shopping, entertainment, trade and investment opportunities, repeat visits for leisure, participation by opinion makers, raising the profile of the destination, etc.
Whatever we do to develop and promote tourism and MICE tourism will enhance the profile of South Asia hence the need to share information and experiences. We cannot fight in isolation when our competitors outside South Asia are hands on with changing travel and consumer behaviours around the world.
(This is an extract of a speech delivered at a tourism conference held in Dhaka – ‘Way forward for MICE – Sri Lanka’s experience’ )