MODULE 1: INTRODUCTION TO MICE

Meaning of MICE
MICE is an acronym for meetings, incentives, conferences, conventions, and
exhibitions industry. The MICE industry is one of the fastest-growing and lucrative areas
of the tourism and hospitality industry.

Definition of Terms
The following are the definitions of each sub-sector of MICE:
1. Meeting-gathering of people for a common purpose such as business, social, or
religious purpose. Meetings do not include exhibits.
2. Incentive-reward event intended to showcase persons who meet or exceed sales or
production goals. It is also called incentive program.
3. Conference-participatory meeting designed for discussion, fact-finding, problem-
solving, and consultation. It is used by an organization to exchange views, convey a
message, open a debate, or give publicity to some area of opinion on a specific issue.
No tradition, continuity, or periodicity is required to convene a conference. Compared
to a congress, a conference is smaller in scale.
4. Convention- gathering of individuals in which the planning activity of the attendees is
to attend educational sessions, participate in meeting/discussions, socialize, or
attend other organized events. Conventions include exhibits. Congress is the
European term for convention.
5. Exhibition-the display of products or promotional material for purposes of pubic
relations, sales, and/or marketing. It is an activity designed for suppliers of products,
goods, and/or services to demonstrate and promote to a certain market. It is the
European term for exposition.
6. Exposition- larger in scale than an exhibition. It generally consists of a huge public
display of the goods and services of a particular industry.
7. Event- an occurrence, happening , and activity designed around various themes in
order to create or enhance interest in a destination.

The Role of MICE in the Tourism and Hospitality Industry

The MICE industry is an exciting and profitable segment of the tourism and
hospitality industry. A major source of revenue for the tourism and hospitality industry
comes from the meetings, incentives, conventions, and exhibitions segment of the
industry. As the tourism and hospitality industry saw great increases in expenditures,
meetings, incentives, conventions, and exhibitions experienced great growth as well. With
the many changes the tourism and hospitality industry has undergone in the past 20
years, the importance of MICE has become more recognized. The need to communicate
with one another face-to-face has been the driving force behind the growth of this industry.
Components of the MICE Industry
There are four major components of the MICE industry, namely: planners and
groups they represent, host facilities, services, and exhibitors.

Planners are individuals or groups that plan meetings, conventions, and

exhibitions. Planners into a number of categories such as corporate meeting planners,
association meeting planners, and independent meeting planners. Corporate meeting
planners work exclusively for a [Link] meeting planners work
exclusively for an association. Independent meeting planners contract their services to
both associations and corporations.

Host facilities provide lodging, meeting rooms, food and beverage, as well as a
number of other services for groups attending meetings, conventions, or exhibitions. Host
facilities include hotels, conference centers, resort hotels, universities, bed and breakfast
inns, etc.

Services refer to individuals and organizations that provide support for the
meetings, conventions, and exhibitions, segment of the tourism and hospitality industry.
Service suppliers include transportation companies, attractions, tour guide companies,
and entertainers.

Exhibitors are financially link with all segments of the MICE industry. They provide
much of the revenue needed for the planners to hold meetings, conventions, and
exhibitions. Exhibitors are persons who work for the company. Other names for an
exhibitor are advertising director, communication director, or director of marketing. Who
is involved with the corporate exhibit program. The main aim of exhibitors is to introduce
their products, both new and old, to an interested audience.

History of the MICE Industry

Archaeologists who investigated ancient cultures have found ruins that served as
places where primitive people gathered to discuss common interests such as hunting
plans, war activities, peace, negotiations, and tribal celebrations. Each village or hamlet
had its common gathering place. As geographical areas grew, cities became the meeting
places for people who wanted to trade goods or discuss common problems. As cities
became the center of activities for geographical regions and transportation improved, the
desire of the people to gather and discuss things of common interest became more
widespread. Trade associations, professional, fraternal, and religious organizations
assembled to discuss relevant issues. Discussions of trade regulations, as well as selling
or trading of goods, were the main reasons for convening. Many trade, professional,
fraternal, and religious associations have historical roots in Europe. In the United States,
such activity took place only in the mid-1800s. As America grew, so did its trade,
professional, fraternal, and religious associations.

In the Philippines, Manila, its capital, is proud to have pioneered the international
meeting industry in Southeast Asia 1976 was a memorable year for the region. It was in
this year that Manila opened its door to Asia’s first fullfledge convention center- The
Philippine International Convention Center (PICC)-to the International Monetary Fund/
Word Bank Meeting. Since then. Manila has developed its professionalism and expertise.
It has developed an infrastructure of deluxe accommodations, efficient transportation
network, and modern telecommunications to support a versatile range of meeting
facilities. In 1996, manila celebrated 20 years as a leading destination for meetings,
conventions, and exhibitions.

The Growth of the MICE Industry

The growth of the MICE industry has been remarkable. Most of this development
has occurred within the past 10 years. This growth has been due to several factors:
meeting planners associations, the airline industry, the lodging industry, convention
centers, conference centers, meeting technology, and ground handlers.

Meeting Planners Associations

Development of associations is connected with meeting [Link]
associations not only grew in numbers but also expanded the list of services they offered
to their members. Majority of these associations increased their emphasis on education.
Other growth factors included the rise of the independent meeting planners, the increase
in the number of women planners, certification and development of standards, and the
integration of travel agents into the profession.

Airline Industry
The advancement of the airline industry enabled people to travel quickly and
efficiently. This was made possible by the introduction of the jet airplane-an invention that
revolutionized transportation worldwide. A relevant factor was the deregulation of the
airline industry which resulted in vigorous competition among airlines to attract more
passengers. This caused a reduction in the cost of air travel.

Lodging Industry
The lodging industry recognized the financial importance of MICE. Hotels grew
and became convention centers. Hoteliers learned to adapt their services to different
clients. Property marketing directors learned how to work with meeting planners.

Convention Centers
Convention centers expanded in terms of exhibition spaces, accessibility, and
storage facilities, They were able to accommodate all the activities of a convention and
trade show under one roof. Traffic was improved, allowing large numbers of people to
move quickly from one area to another.
Convention Bureaus
Convention bureaus grew rapidly both in numbers and size of operations. The number
of bureaus has doubled since 1980, from 100 to more than 250. Their operators have
become more professional.
They actively participate in industry and association affairs.

Conference Centers
Conference centers changed their appearances during the past two decades. For
some time they maintained a “business only” appearance. This has been replaced by
modern restaurants, recreational facilities, and the latest high-tech audiovisual
equipment.

Meeting Technology
Modern audiovisual equipment gave meeting planners a greater degree of
flexibility and creativity that was never possible in the past. Video projectors, 360-degree
projection techniques, muti-image presentations, and unique sound systems have
become very common.

Ground Handlers
Effective ground arrangements became necessary as MICE became more
complex. Ground arrangements include planning tours, transportation, sightseeing,
banquets, and hotel reservations. Convention service companies were established in the
1970s to develop creative meeting programs.

Importance of the MICE Industry

One of the most rapidly growing segments of the tourism and hospitality industry
is the MICE industry. In the United States, it has developed into an industry that is worth
more than $25 billion. The international convention and exhibition market has grown
considerably in Western Europe mainly in France, Belgium, Great Britain, and
Switzerland.

Conventions and exhibitions generate a tremendous amount of revenue within the

tourism and hospitality industry. Travel sales from meetings, conventions, and exhibitions
are so important to the economy that all levels of government have organized,
advertised, and provided services to attract these groups. The United states has offices
in major industrial countries to help organizations with travel arrangements to the country.
Each state allots a major part of its budget to advertising to encourage conventions and
business travel to their state. Majority of cities with a population of around 200,000 have
visitor and convention centers that aim to attract and support meetings, conventions, and
exhibitions.

Over the years, the International Association of Convention and Visitors Bureaus has
undertaken an assessment of the economic impact of MICE. It was found out that ou-of-
town convention delegates spend an average of $638 for a 3.5 day stay. Delegates to
international, antional, or regional conventions/exhibitions stay an average of 4.1 days
and spend an average of $818. Trade show delegate expenditures exceed $1,000,
including exhibitor and association expenditures.
The International Association of Convention and Visitors Bureaus has conducted
these studies for several years involving the United States and non-U.S. cities. These
studies showed that approximately 82 million delegates attended 267, 810 meetings with
a direct economic impact of more than $56.6 billion.