Module 2

MICE 2
Introduction to MICE Management
Topic: The Organizational Structure of the Hospitality Industry: How MEEC Fits in
I. Objectives
Specifically, after discussing this module, the students are expected to:
 Identify the different segment of tourism and hospitality
industry.
 Identify the organizational structure of the hospitality industry.
 Appreciate the importance of MICE in Tourism and Hospitality
industry
II. Lesson Proper
MEEC is a part and encompasses many elements of the hospitality and industry.
Six Major Divisions or segments of the tourism and hospitality industry
1. Lodging- The lodging segment consists of all types of places where
travelers may spend the night. The important characteristics of this segment
are that they are available to the public and charge a fee for usage.
2. Food and Beverage - Contains two sub-segments: food service and
beverage operations. Food service also embraces including catering, chains
and institutional feeding.
3. Transportation - this segment includes any means, or modality that
people use to get from one place to another, including walking. The
betterknown elements include air, water and ground transportation.
4. Attractions - This segment of the hospitality and tourism industry is
anything that attracts people to a destination and can be further divided
into natural and person-made attractions.
5. Entertainment - this includes anything that provides entertainment
value for a guest such as movie theatres, playhouses, orchestras, bands and
festivals.
6. Shopping - this is an important segment of the hospitality and
tourism industry, and an area in which people may spend considerable sums
of money, contributing to the local economy. Many attractions have
HRM 411 – Convention and Events Management

developed products that carry their theme and logo that results in
significant revenue to the operator.

Significance of the MICE Industry

From a global perspective
• According to United Nations World Tourism Organization (UNWTO),
tourism refers to the activities of people going to and staying in places
outside their usual environment for not more than one consecutive year of
the purpose of leisure or business over than paid work.

The MICE industry is considered a subsector of tourism because attending such

event requires movement of people that cause them to do tourism activities. MICE
is an important subsector of tourism for two major reasons:

1. Quantity - Events attracts guests regardless of the season. Getz

(2005) pointed out the ability of events to offer new experiences at
(otherwise matured) destinations, thus attracting more visitors and
repeaters and holding them beyond peak days
2. Quality - According to studies, MICE attendees spend higher than
regular or ordinary tourists, providing higher revenue for the same duration
of stay as regular tourists.

THE MULTIPLIER EFFECT

Direct economic impact is the equivalent of the new money that
visitors/outsiders bring into the local economy and circulated, producing the
multiplier effect .Ex: money remitted by OFW, money spent by tourists and
personal expenditure of overseas meeting attendees.
The multiplier effect describes how an increase in some economic activity
starts a chain reaction that generates more activities than the original
increase.

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BEGINNINGS AND DEVELOPMENTS

Exhibitions have been going on since the ancient times, when traders would
hold occasional encampment at central crossroads and entertainers would
find a ready festive-minded audience.
World Exposition is gathering of people for many parts of the world at which
they showcase their products, their arts and everything about their
homelands.
o 1700’s- French tradition of exhibition devoted to the art and
industry of France. o 1851- Great Exhibition-First World’s fair of
considerable size held in
London, England o 1853- Americas “Exhibition of the Industry of
All Nations“ held in New York. 5,000 exhibitors from 23 countries
showcasing new inventions such as the telegraph by Samuel Morse
and sewing machines.
o The New York Crystal Palace erected for the expo was however a
financial failure; it continuously sank in debt until it caught fire in
1857.
o Crystal Palace and Eiffel Tower- built for the 1889 Exposition
Universelle in Paris
o Ferris Wheel- (76 meters in diameter with 36 cars carrying 60
passengers each) was created for the World Columbian Expo in
Chicago in 1893.

First Worlds Exposition held in Asia - World’s Fair – 1970, held on March 15 to
September 13 in Osaka
World Expo 2005 - Aichi Japan o
2008- Zaragoza Spain o
2010- Shanghai o 2012-
Korea o 2015- Milan

Manila won the bid for a BIE (Bureau of International Expositions)-recognized expo
in 2002 but was cancelled due to the political events that occurred around that
time.

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MEETINGS AND CONVENTIONS

• 1814-1815 - one of the first International congresses in the world, said to be

the one of the worthy size and significance to be considered the birth of
Europe’s convention sector.
• Detroit 1895 - first convention bureau in the US. Because of its success, this
led to the founding of the International Association of Convention and
Visitors Bureaus (IACVB) in 1914, which was later renamed Destination
Management Association International (DMAI)
• DMAI- claims to be the world’s largest association of convention and
visitors bureaus.

MICE in the Philippines

Manila, Philippines - become the first international meeting destination in

Southeast Asia when it hosted the International Monetary Fund in 1976 in the
newly inaugurated Philippine International Convention Center (PICC) Presidential
Decree no.867- Philippine Convention Bureau- a government agency which was
transformed into a government-owned-non stock, non-profit corporation July 1987-
PCB (Philippine Convention Bureau) was reorganized and renamed as Philippine
Convention and Visitors Corporation (PCVC) through Executive Order 120A to
which PCVC was attached agency of DOT.

PART II: STRUCTURE

The Industry Stakeholders

1. Professional Congress/Events Organizers

2. The Community
3. Service Suppliers
4. Government Offices and Regulatory bodies

I.1. Events Managers/Professional Congress Organizers (PCO)

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There are two types of event managers: outsourced and in-house

• Outsourced event managers - refer to event management companies or
individuals (PCOs) who organize events on a per contract basis on behalf of
their clients. PCOs are independent event managers professionally
knowledgeable in their own fields of specialization in MICE who bring in the
know-how coupled with a database of contacts needed in various stages of
event organizing. They are entrepreneurs.
• In-house event managers - are positions or departments within an
organization that is not into the business of event management but requires
its own group of event managers or coordinators due to the volume of
special events that the company has, such as executive e meetings, strategic
planning team buildings, trainings and etc. They may be employed by
corporations (for profit) or associations (non-profit)

2.2 Community
The community represents both the target market and the people living in and
around MICE destination. They enjoy the resulting economic benefits, job

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opportunities and infrastructure developments, but some suffer from environmental and other
possible exploitative impacts.

• Target market (raison d’etre) includes exhibitors, visitors, sponsors and other attendees.
They bring in the revenues for any profit-oriented event. They are those whom the
organizers attract and try to satisfy.

• Associations- second major stakeholder category because association hold a number of

events and thus form a major part of the MICE target market. Association is a group of
individuals or organizations who formed themselves formally to uphold a common interest.

Classification of Associations (Cruz 2005)

1. Trade Associations - are non-profit organizations whose aim is to meet the needs of
profit-oriented businesses. Ex: Phil. Association of Convention/Exhibition Organizers
and Suppliers Inc. (PACEOS).
2. Professional Associations - are non-profit organizations that are not involved with
business firms organized to assist individuals in the pursuit of their common goals.

Three Types of Professional Associations

1. Bound by common interests Ex: UP Mountaineers, Wild Bird of the Philippines.
2. Bound by their careers includes “learned societies“, such as
Philippine Nurses Association
3. Bound by their desire to community service- Association of Foundations.

2.3 Suppliers
PCO must have own data base of contacts, which includes trusted suppliers. Tried, tested
and trusted suppliers, he must be able to source them to meet specific client demands.

• Suppliers - those who provide the services necessary to organize and execute events
properly.
• Venue- classifies PCOs and Convention and Visitors Bureaus (CVB) as suppliers.

The following are some of Venue’s MICE supplier categories:

a. Venues
b. Hotels
c. Food and Beverage Suppliers/Caterers
d. Airlines
e. Airports/Ground Transportation/Ground Handlers (Travel Agencies,
Tour Operators etc)
f. Freight Forwarders
g. Booth Contractors/Audio visual/Meeting Technologies Suppliers
h. Security/Manpower agencies
i. Photography, documentation and transcription services

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j. Ad agencies, PR companies, printers, providers

2.3.1 Venues

• Convention Centers are example of free-standing MICE venues. Some are state owned like
the PICC, some are privately run like SMX Convention Center.
Convention Centers are by definition huge buildings with flexible spaces that can cater to
events of any size from conventions of tens of thousands attendees to smaller meetings,
breakout sessions and other smaller functions.
• Conference Center - provides attendees with room for more privacy and focus as it offers
conference facilities as well as board, lodging and leisure activities all in one location. Ex:
Teachers Camp in Baguio City

In addition to the size, architecture and fast evolving technological/functional features of MICE
venues, location must also be suitable for international events.
MICE venues must be near International airports and must be within walking distance to five stars
hotels and major shopping areas. Ex: Sydney-Opera-House for architectural wonders and
underwater meeting rooms with see trough glass walls to outdoors facilities in the jungle.

Aid in Discussion: Discuss the difference between a convention center and a conference center in
class. Cite examples of MICE venues in Manila falling under each of the following types: hotel
ballrooms, convention centers, conference centers, tents and others.

Special Activity: Debate. The topic is: The Philippines should or should not build more and bigger
convention centers.

III. Assessment

IV. Reference
Romero, Eloisa A., 2007. Events Management Handbook. Rex Book Store, Inc. Fenich. 2011.
Meetings, Expositions, Events and Conventions: An Introduction to the Industry. Prentice Hall

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