Chapter 9 MICE Industry Introduction to Hospitality Industry

Chapter 9 MICE Industry 이해

Introduction to Hospitality Industry “MICE Segment”

Learning Objectives Describe the growth/development of the meeting, convention, and event industry over time. Outline programs, facilities and services required for organizing meetings and events. Identify the industry’s stakeholders, including the supplier and buyer dynamics. Describe types of conventions, meetings, and events. MICE Industry

MICE Meetings Incentive Conventio ns Exhibition s

Definitions of MICE Meetings and conventions: bring people together for a common purpose • Meeting: the coming together of a number of people in one place, to confer or carry out a particular activity • Convention: a special type meeting held in specific location, compromised of meetings and presentations • Conference: larger business or educational meetings for discussion, fact-finding, problem solving and consultation

Definitions of MICE Incentive: meeting event as part of a program which is offered to its participants to reward a previous performance Exhibition: events at which products and services are displayed

Impact of MICE Economic Impact • Continuously growing sectors in and significantly contributes to tourism industry Ø involves a wide range of sectors such as hotels, transportation, catering, real estate and retail Ø positively impacts on national incomes and job opportunities Image Impact • Benefits a destination by providing opportunities for Ø knowledge sharing of city and country Ø positive city and national image Ø national brand development

Figures and Facts in U. S. Meeting & convention attendees represent in U. S. • One-fourth of all air travels • One-third of all hotel incomes • 2. 4 million jobs (employment) • $240 billion annually to national economy • $27 billion in U. S. wages • $16 billion tax revenue federal, state, & local levels • Industry supports over 200 convention centers

Figures and Facts in Korea The first international convention facility was 1914 Chosun railroad hotel(Westin Chosun Hotel) In 1936, modern conference room at Bando hotel (Lotte hotel) took charge of the center of social gathering. Before year of 2000 most international conventions were held at major hotel or university conference hall. MICE industry dramatically grow when special mega convention centers were built. Especially year of 2000, Intercontinental hotel & COEX opened that was historical turning point for MICE industry in Korea.

Figures and Facts in Korea At 2015 # of domestic MICE event 251, 099 meeting(94. 2%), incentive tour(3. 4%), convention(2. 0%), exhibition(0. 3%). At 2015, according to UIA(Union of International Associations) Korea was #2 at world ranking of international conference(#1 America, #2 Belgium, #4 Singapore) Corporation/Business aspects(34. 6%) hosting the most MICE event Incentive travel attracting the most foreign travelers(55 hundred thousand) Ranking of event for attract the most domestic travelers are

Figures and Facts in Korea Year 2012 size of Korean’s domestic MICE industry about effect on production inducement 24 trillion 8 hundred billion Won. For each section, corporation incentive(18. 9 trillion), International conference(4 trillion), exhibition(1 trillion), incentive travel(0. 9 trillion), income inducement (5 trillion & 9 billion won), Economic value added(13 trillion in 2015년 5조, Create more than 200 million jobs. In 2011, total expenses on MICE industry person was $2585 to 2015 $3, 127(1. 8 times spent more than normal traveler)

Figures and Facts in Korea COEX( Seoul, 1979) BEXCO(Busan, 2001) EXCO(Daegu, 2001) ICC(Jeju, 2003) Kim Dae-jung Convention Center (Gwangju, 2004) CECO(Changwon, 2005) DCC(Daejeon, 2008) KINTEX(Ilsan, 2011)

Growth rate for number of hold International conference of Major country (1999~2008) Unit= % Associations (UIA) Reference= Union of International Singapore Korea Japan Turkey Spain Greece Portugal India Austria Hungry

UIA Ranking #2 in the world Result of Hosting international Conference (Korea)

Supplier & Buyers Suppliers are meeting planners that represent destination or venue hosting the event. • Always looking to convince groups to have the event at their location • Supply side businesses also include organizations that provide services Ø PCO(Professional Convention Organizer) Ø PEO(Professional Event Organizer) Buyers (consumer) are employed by • organizations that plan meetings • individual or group attendees (government, company, institution)

Supplier & Buyers Meeting Professionals International (MPI) is the leading international organization of meeting planners. • Membership reflects balance between planners and suppliers • #1 PCO in Korea : INTERCOM http: //www. intercompco. kr/ • Year of 2001 retested PCO company : 75 PEO company : 30 • Year of 2010 Convention Company : 286 Exhibition Company : 315

Meeting Categories include: • Corporations • Associations • Government agencies • Civic groups • Religious organizations

Meeting Categories Meeting prospects referred to as SMERF • Social – hobby clubs • Military – reunions • Educational – seminars • Religious – revivals • Fraternal groups – alumni gatherings

Corporate Meetings A successful company meeting includes: • Development of engaged employees • Improvements in the corporate culture • More satisfied employees and increased retention Corporate meeting planning must provide settings for: • Educational seminars • New product introductions (trade shows)

Meeting Planning Functions Planners coordinate every detail of meetings & conventions. 1. Determining the purpose • What is the message or impression the sponsoring organization wants to send 2. Choose speakers, entertainment, and content • Arrange program to present organization's information most effectively

Meeting Planning Functions 3. Search for prospective meeting sites • Primarily hotels, convention, or conference centers • Must considers attendees’ profile 4. Once potential sites are narrowed down • Issue requests for proposals (RFPs) • Requests outline meeting dates (One year advance) • Outline all space requirements & planner’s needs

Meeting Planning Functions 5. Once the location is selected, planners arrange: • Support services • Coordinate with facility ØPrepare site staff (staffing is very important) • Set up arrangements for all that is needed

Meeting Planning Functions Onsite Logistics (Actual event site) • Register attendees / issue badges • Coordinate lodging • Coordinate transportation • Ensure all supplies are ordered ØAlso transported to meeting site on time • Ensure all exhibits/booths are set up properly ØAll materials are printed • Ensure meeting adheres to all regulations ØFire; Labor; and F&B

Meeting Planning Functions Financial management component • Negotiate complex contracts Ø Facilities Ø Suppliers • Oversee finances and budgets of meetings Evaluation • Gauge success by • Surveying attendees • Return on investment Ø Compare costs versus benefits of event Ø Results show if worthwhile

Meeting Planning Functions Marketing • Association meeting planners must market meetings to association members • This is less important for corporate meeting planners because employees are often required to attend

Job of a Meeting Planner Convention service managers • Act as liaisons between the meeting facility and planners Specialties exist: • Conference coordinators - handle meeting logistics • Registrars - handle registration and payment • Education planners - coordinate the meeting content High profile position of tremendous importance to achieving success

Event Tourism Well organized event can turn a place into a destination Festivals important to communities as they preserve heritage and culture Events can build up infrastructure, add economic prosperity to city Events stimulate investment into service side of hospitality sector Sport events lead to new or improved facilities • In future can be used to attract events

Event Tourism Mega-events require extensive investment and infrastructure improvements • Governments view events as creating employment opportunities ØChance to rehabilitate run-down sections of towns ØOpportunity to survive (even thrive) during periods of economic uncertainty Requires managers who have skills in marketing, promotion, entertainment, programming and communication design

Event Management Organization of events • With larger events, more traditional methods of management must be used • Includes the functions of programming and event production Ø Combines creativity with operational skills • Leading international professional association is the International Special Event Society Ø Has Chapters on four continents

Event Management Socio-demographics Opportunities • Ever changing, must be tracked • Influences how people spend their free time ØWill effect if or how likely someone is to attend a meeting or convention

Event Management Technology Opportunities • Planners must stay at forefront of change • Can advance operations / increase profit margins • Leads to more exciting, interesting, and successful events