CHAPTER 1 The Meaning and Importance of MICE Learning Outcomes At the end of this chapter, you should be able to: 1. explain the meaning of MICE; 2. define meeting, incentive, conference, convention, exhibition, exposition, and event; 3. describe the role of the MICE industry in the tourism and hospitality industry; 4. identify the components of the MICE industry; 5. describe the history of the MICE industry; 6. explain the growth of the MICE industry; and 7. discuss the importance of the MICE industry. 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. In discussing the MICE industry as a whole in this book, the terms “MICE” and “conventions, meetings, and events” are used interchangeably. 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 w! or exceed sales or production goals. It is also called program. ho mee Ncentiye 3. Conference - participatory meeting designed for discu SSion, fact-finding, problem-solving, and consultation. It is used by an organization to exchange views, convey a message, open ; debate, or give publicity to some area of opinion on a specific issue. No tradition, continuity, or Periodicity is required tg convene a conference. Compared to a congress, smaller in scale. a conference ig 4. Convention - gathering of individuals in which the Planning activity of the attendees is to attend educational sessions, participate in meetings/discussions, socialize, or attend other organized events, Conventions include exhibits. Congress is the European term for convention. vw . Exhibition - the display of products or promotional materials for purposes of public 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. “ Event - an occurrence, happening, and activity designed around various themes in order to create or enhance interest in @ destination. The Role of MICE in the Tourism and Hospitality Industry “ The MICE industry is an exciting and profitable segment of the ee and hospitality industry. A major source of revenue for the tourism an spitality industry comes from the meetings, incentives, conventions, aft)pibitions segment of the industry. As the tourism and hospit ws c f ality industry it increases in expenditures, Meetings, saw gre exhibivior » incentives, conventions, and 18 experienced great growth as well With tourism and hospitality industry has importance of MICE has become more recognized hy one another face-to-face has been the drivin the many changes the undergone in the past 20 years, the J. The need to communicate will 18 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 facili ies, services, and exhibitors. Planners are individuals or groups that plan meetings, conventions, and exhibitions. Planners are classified into a number of categories such as corporate meeting planners, association meeting planners, and independent meeting planners. Corporate meeting planners work exclusively for a corporation. Association 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 meeti ings, 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 linked 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, & 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 Archeologists who investigated ancient culture: that served as places where primitive interests such as hunting plans, celebrations. Each village or hamle geographical areas grew, wanted to trade goods or Ss have found ruing People gathered to discuss common War activities, peace negotiations, a t had its common gathering pl. cities became the meeting places for peop discuss common Problems. As cities bec. lace. As ole who ‘ame the 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, fr aternal, and religious associations have d States, such activity took Place only it did its trade, Professional, fraternal, andphilippines, Manila, its capital aL tS proud to | lave meeting industry in Southeast Asia. 1 a. i jtwas in this year that Manil In the pioneered the 9 76 was a memorable year first full- Internati he International Monetary Fund/World oak ei acue ? orld Bank Mee! Joped its professionalism and and e inter national forther agin ‘a Opened its vention center—the Philippine door ty Asia fledged con (PIC) -toll Manila has deve! re of deluxe accommod. ting. Since then, xpertise. It has devel ont Gshorere as developed an infrastruc ot Jons, efficient transportation network, and modern telecommunications to support a versatile range of oo a. odtuieaie ea ange of meeting facilitie’ In 1996, Manila celebrated 20 years as a leading zo ti hae aoe a ting: ion for meetings, conventions, and exhibitions. The Growth of the MICE Industry Th Y i as, re growth of the MICE industry has been remarkable. Most of this aa ae lent v4 occurred within the past 10 years. This growth has been veral factors: “meeting planners associations, the airline industry, the lodging ind 'g industry, conventi 1 Yr ention centers, conference c i ania: Pile enters, meeting technology,ting Planners Associations Mee! ont of associations is connected with meeting Planing, Developmer wot only grew in numbers but also expanded the ly : the tn ee ite Majority ofthese associations inyy © eas oie education. Other growth factors included the rise gy th their emphasis on s, the increase in the number of women Planne,, independent meeting planners, the e integration of travel ay,” tion and development of standards, and the integratic I Beng certification a into the profession. irline Industry a : The advancement of the airline industry enabled people to travy 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 resulteq in vigorous competition among airlines to attract more passengers. This Caused 4 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 exhi and storage facilities, They were able to accomm since 1980, from 100 to more than 250. ve become more professional, They actively participate it industry and ®Ssociation affairs,nce Centers Confere! ce centers changed their ap appearances Confere! time they maintained a ” uring a “business on} only” es, For some appea decad has been replaced by ech audiovisual equipment modern resta ‘staurants, , recreational ional fa high-t Meeting Technology Modern audiovisual equi al equipment gavi ave meeting pl gave meeting planne of flexibility and creativity that was neve: 360-degree projection techniques, Se o stems have become very commo: pe ee 7 in. sound s more com nplex. G ‘, x. Ground Se arra er sightseeing, banquets angements include planning to were established in fhe and hotel reservations. Convent : Be abies : ention ric e 1970s to develop creative meeti nia ing programsof the MICE Industry : Importance . most rapidly growing segments of the tourism and hospitality One of the ICE industry. In the United States, it has developed into an industry is the oe more than $25 billion. The international convention A market has grown considerably in Western Europe mainly jn and ex Belgium, Great Britain, and Switzerland. France, - Conventions and exhibitions generate a tremendous amount of revenue hin the tourism and hospitality industry. Travel sales from Meetings, within tl s, and exhibitions are so important to the economy that all levels pies have organized, advertised, and provided services to attract een The United States has offices in major industrial countries to hel; Pp organizations with travel arrangements to the puintay: Bach State allots a major part of its budget to advertising to encourage conventions and business trave] 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 out-of-town convention delegates spend an average of $638 for a 35-day stay. Delegates to international, national, or regional conventions/ exhibitions stay an average of 4.1 days and spend an average of $818. Trade show delegate ex; ‘penditures 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-US. cities, These studies showed that approximately 82 million delegates attended 267,810 Meetings with a direct economic impact of more than $56.6 billion,