BSHM 29

INTRODUCTION
TO MICE
INDUSTRY
MODULE 1

Prepared by:
FERDIE S. ANDULAN, MIHM
 TOPICS

1
What is MICE and
Events Industry

2
How did the event
industry begin and
develop?

3
What is the
significance of
the events
Trends and Issues in
the MICE Industry 4 industry?
 DEFINITION AND
CHARACTERISTICS OF
EVENTS?
Events refer to the things that happen around us.

There are generally two kinds of events: Ordinary

Events and Special Events.

2 Kinds of Events

Ordinary events occur naturally in our

environment and in our daily lives.

Special events - people gather

together for a purpose; some people
need to travel to participate, while
some spend a lot of time and resources
planning for the event and making sure
that everything unfolds as expected
CHARACTERISTICS OF
EVENTS
Organized for a specific purpose/s

Attended by a number of participants

Held in specific, pre-determined place;

Time-bound

Cost a lot of resources

THE 5WS AND 1H OF
EVENTS
What event are we organizing?

Why are we organizing the event?

Who are expected to attend and to organize the

event?
Where is it going to be
held?
When is it going to be held?

How much is it going to

cost?
ELEMENTS OF A
SPECIAL EVENT
Type and title of the event

Purpose for holding the event

Participants of the event and the roles they play

Place or venue where the event is going to take place

Date and time of the event

Resources
 ELEMENTS EXAMPLE

(WHAT)
TITLE AND TYPE OF EVENT Ana’s 18th Birthday Party

This is a once-in-a-lifetime event and it has been a

(WHY) family tradition to celebrate every member’s
PURPOSE/ OBJECTIVE: The owner or organizer of transitions to adulthood. The birthday party aims to
the event must have a good reason for wanting to give Ana a fun and memorable celebration of this
hold an event. important day.

Ana’s immediate family members will organize the

(WHO) party with the help of an event planner. One
PARTICIPANTS: The organizers and attendees, and hundred (100) guests are expected to attend,
the role they play mostly family and friends. A guest list will be
prepared.
 ELEMENTS EXAMPLE

(WHERE)
PLACE: the size and availability of the event venue
affect the schedule and number of the attendees. The venue must be in Z city and can accommodate
The venue can be selected using a set of criteria. 100 guests with a stage and a dance floor.

(WHEN) July
DATE AND TIME OF THE EVENT: Make sure that the 4, 2014 (Friday) 7:00 pm (Note: that it is important
date and time are identified early on. Setting the to indicate the month, day, year and starting time of
date affects the venue reservations and printing of the event. A program detailing the schedule of
collaterals to be included in the invitations. speeches and performances will be prepared at a
later time)

(HOW MUCH) P100,000.00 with the following breakdown

COST/RESOURCES: One can indicate a cost ceiling P500.00 x 110 pax (with 10% contingency) =
at the onset. The details of the budget can be P55, 000 for food and venue
prepared once quotation from suppliers are P45, 000 for cake, sound system, invitation,
gathered. photography, & miscellaneous
 CONTINGENCY

Refers to a “Plan B” to address unforeseen or

unexpected circumstances.

Note that if one of the elements is missing, it would

be difficult to plan, stage, and evaluate the event
later.

There are still a lot of things to learn about event

management. It only gets more exciting from here.
TYPES OF SPECIAL
EVENTS
Personal events organized by and for
friends and family to celebrate life’s
important milestones. Examples:
shower parties, birthday parties,
baptism, weddings, achievement
blowouts, reunions, and funerals.
Corporate events are organized to
improve the productivity and
profitability of companies and
contribute to the achievement of
corporate goals. Examples: product
launchings, sales rallies, and trade
shows
Community events - gatherings of the
members of a community and their
guests to commemorate historical/and
or religious events, promote arts and
culture, and strengthen social bonds.
Examples: festivals, school or church
events, art exhibits, and local sporting
events.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

MEETINGS
A general term that refers to the gathering of
people to discuss a set of agenda or do a partcular
activity. It can be called on an ad hoc basis (as
needed) ot following a set pattern such as an
annual stockholder’s meeting.

Meetings do not include exhibits.

WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

CONGRESS
The regular gathering of people who belong to
religious, cultural, professional, or other associate
groups. A congress is often staged to shed light on
a particular subject, question, or issue.

The length of time between congresses is usually

established in advance and can be annual.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

CONVENTION
Refers to a large national or international meeting.
However, unlike a congress, a convention is usually
held to commemorate an event or milestone for
the host organization; thus, it is usually held at
regular intervals and staging is given a theme.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

CONVENTION, CONT’D
Conventions have more innovative programs
planned to encourage participants to network and
interact (Aron, 2011).

Thus, conventions sometimes include an exhibiion

related to its theme.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

CONFERENCE
A scholarly gathering to exchange views and
consequently, to convey a message, open a
debate, or give publicity to some opinions on
specific issues, such as climate change.

Most conferences are for “study” purposes.

WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

CONFERENCE, CONT’D
Conferences are aimed at establishing position
papers as a result of the exchange of views.

It requires no tradition, continuity, or periodicity,

and is generally held for a short duration of time.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

INCENTIVE
A tool to encourage employees to increase sales or
provide solutions. It therefore means using travel
as a reward for accomplishments such as reaching
sales quota, winning a competition, and the like.
WHAT IS MEETINGS,
INCENTIVES,
CONVENTIONS, AND
EXHIBITIONS (MICE)

EXHIBITION
Showcases new products, services, information, or
promotional materials mounted for public relations,
sales, and marketing.

According to Ladkin and Spiller (2000), it is an activity

designed for targeted supplies of products, goods
and/or services to demonstrate and promote to a
certain market
 2 TYPES OF
EXHIBITION

Consumer show - a showcase of

products that are offered to the public,
mostly for the purpose of direct sales or
promotion to end users.

Trade show - for commerce at a

bigger scale. It brings together industry
players, targeting similar markets. It is
intended to provide a venue for sales
leads, contacts with influencers and
suppliers, networking, gathering
competitor intelligence, and building an
image for the customer
OTHER
TERMINOLOGIES
RELATED TO
EXHIBITIONS

EXHIBITION MANAGER
The head organizer or promoter of an exhibit. The
exhibition manager leads the exhibition organizers
team and is responsible for managing the exhibit
finance, sales of exhibit space, and operations.
OTHER
TERMINOLOGIES
RELATED TO
EXHIBITIONS

BOOTH CONTRACTOR
Subdivides a huge empty exhibit space into smaller
spaces which the exhibitors are going to rent; the
contractor also provides temporary facilities to
exhibitors such as the shell or walling for the
booth, carpet, table, chairs, signage, lighting, and
power source - for a fee.
OTHER
TERMINOLOGIES
RELATED TO
EXHIBITIONS

RAW EXHIBITION
SPACE
A raw space or floor with rough markings just to
indicate the boundaries and size of your rented
space in the exhibition hall.

An exhibitor may design the raw space in any way

as long as no venue house rules are violated.
OTHER
TERMINOLOGIES
RELATED TO
EXHIBITIONS

SHELL EXHIBITION
SPACE
An exhibition space with a white enclosure called a
“shell”. The shell gives booths a uniform look and
makes the ambiance common in all trade shows.

The fascia board is the signboard on top of the

most visible side/s of the booth.
OTHER
TERMINOLOGIES
RELATED TO
EXHIBITIONS

EXHIBITOR MANUAL
A book of instructions and information for
exhibitors regarding the exhibit venue and services
offered by the official booth contractor.
 CRITERIA FOR
EVALUATING A MICE
VENUE
Cost - a common factor in decision-
making, not only for event venues. The
venue to be selected must be within
the budget of the organizer. Its
payment terms must also match the
schedule and cash flow of the event

Convenience - encompasses the

availability on the target date
accessibility, proximity to other support
services, suitability of space to the type
of event, and its safety features. It is an
important factor to consider when
selecting the event venue.
 CRITERIA FOR
EVALUATING A MICE
VENUE, CONT’D
Charm - the appeal of a venue or is
commonly known as the “X” factor. It is
the thing that attendees will keep
talking about after the event is over.

It can be manifested in the cultural

value of the venue, such as a UNESCO
World Heritage Site, like the San
Agustin Church in Intramuros, Manila.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
Archeologists have found pieces of evidence proving the
existence of areas where primitive people gathered to
discuss common interests like plans for hunting, wars,
rituals, and tribal celebrations (Montgomery and Strick
1995)

Jewish Wedding Rituals, Meeting of the Bride, Groom, and

Their Families before the Marriage
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
Thousand of years later, these gatherings would evolve
into multimillion-dollar businesses, which some collectively
refer to as MICE or EVENTS INDUSTRY

Nonetheless, modern-day exhibitions, especially world

fairs, began during the Industrial Revolution around the
19th century.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?

Paris Expo, 1900

HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?

Great Exhibition (Crystal Place), London (1851)

HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
The French have already made a tradition of exhibitions
devoted to the arts and the industry of France dating back
to the late 1700s.

Even so, the first world fair of considerable size was not
held in France but in London, England in 1851, dubbed the
“Great Exhibition”.

The event was remarkably peaceful and was a huge

success, with six million visitors and 17,000 exhibitors of
different nationalities.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
Two years later, the Americans followed suit with their
“Exhibition of the Industry of all Nations” held in New York.

There were over 5,000 exhibitors from 23 countries

showcasing new inventions such as the telegraph by
Samuel Morse and sewing machines.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
However, The New York Crystal Palace which was erected
for the expo, was a financial failure, it continuously sank in
debt until it caught fire in 1857.

Unlike the Crystal Place, The Eiffel Tower, built for the 1889
Exposition Universelle in Paris, still stands today.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
The World’s Fair 1970 held on March 15 to September 13,
1970 in Osaka was the first World Exposition held in Asia.

There were 32 Japanese Pavilions and 95 International

Pavilions representing 80 countries.

With the theme “Progress and Harmony of Mankind”, it

attracted 64 million paid visitors and a US$30 million net
profit.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
The congress in
Vienna staged
from 1814 to 1815,
one of the world's
first international
congresses, is said
to be one of
worthy size and
significance to be
considered the
birth of Europe’s
Convention Sector.
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
Until World War 1, the Congress served as a venue for
Diplomats to meet to preserve peace.

Before this is the establishment of numerous buildings in

ancient Rome, such as the Forum, Rostra, and Comitium
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
In the US, the first convention bureau was established in
Detroit in 1895, when a group of businessmen hired a full-
time salesman to invite conventions to their city. Detroit’s
success became popular throughout the country and soon
other towns followed.

This led to the founding of the International Association of

Convention and Visitors Bureaus (IACVB) in 1914, which
was later renamed Destination Marketing Association
International(DMAI).
HOW DID THE
EVENTS INDUSTRY
BEGIN AND
DEVELOP?
DMAI claims to be the world’s largest association of
convention and visitors bureaus (CVBs) serving more than
1,500 individual members in more than 25 countries.

Today, CVBs operate throughout the world. At first,

convention bureaus existed primarily to sell and service
conventions. As the years passed, more and more bureaus
became involved in the promotion of tourism.
MICE IN THE
PHILIPPINES

Acknowledging the industry’s potential, the government

encouraged the private sector to invest in infrastructure
and other related facilities.

The full-blast construction of tourism infrastructure called

for the development of an academic program and
manpower training. Hence, the Asian Institute of Tourism
(AIT) was established as a degree-granting unit of the
University of the Philippines System, also in 1976.
MICE IN THE
PHILIPPINES

In line with these developments, the Philippine Convention

Bureau (PCB) was created in the same year by Presidential
Decree (PD) N. 867.

The PCB was a government agency that was transformed

into a government-owned non-stock, non-profit
corporation two and a half years later under PD 1448.
MICE IN THE
PHILIPPINES

In July 1987, PCB was reorganized and renamed Philippine

Convention and Visitors Corporation (PCVC) through
Executive Order (EO)120A, with EO120 mandating the
reorganization of the Department of Tourism(DOT) to
which PCVC was made an attached agency.
MICE IN THE
PHILIPPINES

The words “and visitor” were added to PCVC’s name to

embody its expanded role from an agency in charge of
marketing the Philippines as a MICE destination to become
the marketing arm of the Department of Tourism (DOT).
MICE IN THE
PHILIPPINES

Today, although our neighboring Southeast Asian countries

have overtaken the Philippines in terms of MICE-related
developments, Philippine MICE professionals are doing
their best to keep the industry afloat.

The Tourism Act of 2009 likewise builds on a better

environment for public-private partnerships in Tourism
SIGNIFICANCE
OF THE MICE
INDUSTRY
FROM THE LEARNER’S POINT OF VIEW

Some can capture the significance of MICE to the national and global
economy by citing the expenditure and number of people traveling to
and staying in destinations to attend meetings, trade shows, or other
events.

Others may note the amount of investments poured into infrastructure

and other developments, including roads and remarkable venues.
SIGNIFICANCE
OF THE MICE
INDUSTRY
FROM THE LEARNER’S POINT OF VIEW, CONT’D

Some professionals make a career out of organizing festivals and other

events, which only shows that the MICE business plays a significant
part at least in some people’s lives.

Planning and implementing an actual event give you valuable

experience that will help you face the challenges in the workplace.
SIGNIFICANCE
OF THE MICE
INDUSTRY
FROM THE COUNTRY’S POINT OF VIEW

Events that entail traveling outside a person’s usual environment are

therefore a form of tourism.

The events industry is considered an important subsector of tourism

for two major reasons:
1. Quantity
2. Quality
2 MAJOR REASONS

Quantity - MICE events attract guests

regardless of the season. Getz (2005)
pointed out the ability of events to offer
new experiences at destinations thus,
attracting more visitors and repeaters
and holding them beyond peak days.

This is especially beneficial during lean

months or immediately after busy days
to expend peak season.
2 MAJOR REASONS

Quality - MICE attendees spend more

compared to regular or ordinary tourists
hence, providing higher revenue for the
same length of stay compared to
regular tourists.

According to a recent ExPact Study

conducted by Destination Marketing
Association International on direct
spending for meetings, conventions,
and trade shows in the United States,
delegates spent an average of
US$1,036 per event or US$290 per day;
The average length of stay was 3.56
nights and 77% of all delegate's
spending was accounted for by lodging
(47%) and food and beverage (28%).
THE MULTIPLIER
EFFECT

•The multiplier effect is a direct economic impact, which is equivalent

to the “new” money that visitors or outsiders bring and this money is
circulated through spending in the local economy.

•Multiplier effect is created when different persons use the same

money several times. Each time money is transferred from one person
to another the money is counted as that person’s income.
THE MULTIPLIER
EFFECT