INTRODUCTION TO MICE

MANAGEMENT
Module 1
Week 1 -3

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CHAPTER I: MEETINGS, INCENTIVE TRAVEL, CONVENTIONS, EXHIBITIONS AND EVENTS
MANAGEMENT: A PERSPECTIVE

Learning Objectives:
1. Define the domains of MICE/Events Management
2. Explain the significance of MICE/Events in the Tourism Industry
3. Identify the development of MICE in the Philippines

INTRODUCTION:

MICE, an acronym for Meetings, Incentive Travel, Conventions and Exhibitions/Events Management, an
increasingly sought-after and competitive high-yield tourism segment and has resulted in a growing
number of meeting, convention and event venues in Asia. MICE and Events have the opportunity of
being more sustainable for the destination due to its lesser reliance on mass tourism appeal and greater
number of visitors passing through boarders. MICE also offer the destination an opportunity to upgrade
infrastructure and facilities. A major consideration is enhancing destination image perceptions to attract
regional and global travelers and investment.

Elsewhere in the globe the terminology is termed “business tourism” or “executive travel”. This is a
sector within the hospitality industry aimed at assembling groups of people within a common venue or
setting for a common purpose or set of objectives.

MICE COMPONENTS
MEETING - Depending on the purpose of the meeting. It can be a standalone one or
form part of the convention or exhibition programme. Common to all
meetings is a transfer of knowledge, skills and experience as well as the
opportunity for people to gather for debate and discussion.

- Meeting have been taking place since ancient times. The Latin word
“conventiculum” was used to mean ‘a coming together, an assembly or a
place of meeting’.

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 - Category of Meetings:
o Symposium – formal meeting, normally scientific in nature.
Presentations are delivered through panel of experts of individual
invited guest speakers.
o Seminars – involves greater delegate participation and discussion.
Generally implies a smaller meeting where knowledge can be
transferred.
o Workshop – comprises a large degree of small-group interaction
and sharing of knowledge, skills and experience. The groups may
have facilitator to guide through specific problems and issues
perhaps connected to a conference theme.
o Forum – this where a moderator and a panel of experts, perhaps
with opposing views, discuss and debate on a particular problem or
issue. The panel usually comprises about 2 or 4 experts to allow
adequate viewpoints within certain time constraints. Panel
members also participate in a question-and –answer session.
o Retreat – gathering of a small group of participants, usually in a
remote location. A retreat is intended as a getaway with no
distractions so that participants can focus on a particular issue.
o Lecture – informative and instructional speech.

INCENTIVE TRAVEL - This is a travel reward program. It can be sponsored by a company either fully or
partially as a motivational tool to recognize leading company producers and
achievers. The travel programme should not be an ‘off-the-shelf’ or an every-
day tour package. Companies specializing in this are often called incentive travel
houses.

- Incentive travel can be a part of an overall corporate development strategy

that is designed to bring the capabilities out of the employees.
- For those on an incentive trip, there can be a blurring between whether it is
‘business’ or ‘leisure’ travel. The incentive could start with the conference
format. Later the delegates could go to various historical sites or have a
memorable dinner or cocktail reception. These could classified as leisure
activities.

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 CONCLAVE - Gathering of a group with shared or special interests. Traditionally refers to
meetings of a confidential or secret nature with restricted or limited
participation. From the Latin for “with key”, referring to a historical practice of
sequestering participants.

CONFERENCE - This is trade, technical, educational and scientific meeting. It can vary in size and
frequency, from small gathering of associations to a large international
conference of various organizations. There is a greater discussion on
developments in the particular industry. Breakout sessions may be involved to
examine industry problems and suggest solutions.

- Conference can involve multiple activities and collaboration efforts. Usually

starting with a plenary session or mass gathering for a welcome address, the
conference can be in several formats such as workshops, breakout sessions
or seminar. Different dinning formats can be arranged onsite or offsite.

- Social programmes are an important feature and attraction at conferences

as they provide opportunities for relaxation and informal networking. These
are normally scheduled in the evenings, or before or after the conference.

SUMMIT - A conference or meeting of high leaders usually called to shape a program of

action.

CONGRESS - The term ‘Congress’ is often and is similar to ‘conference’. In USA, the word
‘congress’ has political meaning referring to its Government’s legislative body.

- The term for a formal meeting of the representatives of

different nations, constituent states (political meaning), independent
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 organizations (such as trade unions), or groups.
CONVENTION - Used to cover wide range of issues and topics. Is a group of delegates or
members who assemble to accomplish a specific goal. The goal may be civil,
social, political, goals. Convention gatherings can range in size from 200 to
10,000 attendees.

ASSEMBLY - A general or formal meeting of an organization attended by representative of its

membership for the purpose of deciding legislative direction, policy matters, the
election of internal committees, approval of balance sheet and so on.

EXHIBITION also known EXPOSITION (larger scale) -

.
- At which products, services or promotional materials are displayed to
attendees visiting exhibits on the show floor. These focus primarily on
business to business relationships.

Types of Exposition

- Trade show or trade fair is targeted specific clientele or members of a

common or related industry and could be closed to the public completely or
initially.

- Public or Consumer show is open to the public that are offered mostly for
the purpose of direct sales or promotion to end users.

FAIR - coincide in a public celebration, commercial or civic activities, fair is defined

as occasional meeting of buyers and sellers specifically to trade.

PARADE - a moving pageant including floats, bands, individual entertainers and

dignitaries.

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 EVENTS AND EVENT MANAGEMENT

Event comes from the Latin word “e-venire”, which means “outcome” that why it is commonly
understood as an occurrence; something that happens. The outcome could be planned and unplanned.

Special Event is defined as “a unique moment in time celebrated with ceremony and ritual to satisfy
specific needs” according to the Guru of Events Management Dr. Joe Goldblatt.

Events Management is a process.

RESEARCH

EVALUATION DESIGN

COORDINATING PLANNING

TYPES OF EVENTS.
Events can be classified according to the following:

1. ACCORDING TO PURPOSE – THE C’S OF EVENTS-

This event is classified to brings people together to CELEBRATE life milestone and accomplishments, and
to perform rituals or ceremonies as required by religion, culture or society.
CELEBRATION from the Latin word “celebro”, meaning ‘to honor”.
Occasion to honor are life-cycle events (from basket to casket); religious ritual; commemorative
ceremonies; and socio-civic activities.

Events that bring people together to COMMUNE and strengthen bonds of friendship and restore
relationship. Example of these events are Class reunion; family reunion and hallmark events.

CONVENE are events that bring people together to share and pass on knowledge among peers and
colleagues. Main purpose is to educate, example of this event is meeting, conference and
convention.
Edutainment result from the use of entertainment devices to present educational concept.

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 Events that bring people together to market and promote product offerings is for COMMERCE. Product
launches, exhibits, trade shows, product demonstration and retail events are just example of this
event.

2. ACCORDING TO NUMBER OF PARTICIPANTS-

Events may range from few participants to a multitude scale of participants. Participations may be
differed according to events. Wrathall and Gee (2011) events according to audience size can be
classify as:

MEGA EVENTS - Are events which are expressly targeted at the

international tourism market and may be suitably described as
“mega” by the virtue of their size in terms of attendance , target
market, level of public financial involvement, political effects,
extent of television coverage, construction of facilities and impact
on economic and social fabric of the host community . Example:
Olympic and FIFA World Cup.

HALLMARK - Refers to those events that become so identified

with the spirit or ethos of a town, city or region that they become
synonymous with the name of the place and gain widespread
recognition and awareness.

MAJOR EVENTS– Has a capable to attract large number of visitors to the

locale thus attracting media coverage and has an economic
benefits.
LOCAL/COMMUNITY/MINOR EVENTS – Targeted mainly local audiences and may appeal to local
communities or a selected group of people.

3. According to Frequency-
Events that is based on the number of occurrences. This may go to quadrennial, triennial, biennial,
yearly or annually, semestral, quarterly and monthly occasions,
or even an event that is held on “NEED TO” basis.

4. According to Impact-
Evens that leave an impact in the minds of the audience or participants. These impacts maybe
emotional, spiritual, cultural, social, educational and economic.

ECONOMIC SIGNIFICANCE OF MICE/EVENTS

The MICE and Events industry indeed contributes greatly to a country’s economic development,
especially for countries with MICE and Events that attract international visitors.

To analyze the impact of tourism, a multiplier is used as the basis for results.

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 MULTIPLIER EFFECT – is a direct economic impact, which is equivalent to the “new” money that visitor
or outsiders bring and this money is circulated through spending in the local economy.

Tourist expenditure is translated to income by direct suppliers. Then these suppliers can either
spend the money or save it. This process of income and expense continues until the additional income
generated by a new spending essentially becomes zero.
Multiplier Effect: How Tourism Spending Flows into the Economy (United Nations World
Tourism Organization, 1982)

TRAVELLERS SPEND FOR TRAVEL ENTERPRISES ULTIMATE BENEFICIARIES

SPEND FOR
Lodging Accountants
Food Wages & salaries Appliances store
Beverages Tips & gratuities Architects
Clothing Payroll taxes Attorneys
Gift & Souvenirs Commissions Automobile factory
Photography Music and entertainment Bakers
Personal Care, drugs & Administrative & general Bank workers
cosmetics expenses Butcher
Internal Transportation Professional Services Beach accessories
Tours & Sightseeing Purchase of Food & Carpenters
Miscellaneous Beverages Cashiers
Purchase of goods sold Charities
Purchase of materials & Cinemas
supplies Fisherman’s
Repair and Maintenance Engineers
Advertising, publicity & Farmers
promotions Freight Forward
Utilities Giftshops
Transportation Government
Licenses Health
Insurance premiums Utilities
Rental of premises and Roads & railroads
equipment Education
Interest & principal Resorts
payments of barrowed funds Restaurants
Replacement Wholesale establishment
Income & other taxes ETC.

Leakages of import Leakages of import Leakages of import

content content content

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 Life Cycle of Events

As it has a dynamic nature, every event will evolve, adapt and change over time, influenced by various
external and internal factors. This changing trend tracking an event’s life span is known as an
event LIFE CYCLE.

Like a product or service life cycle, event can be envisaged as having a similar life cycle trajectory. An
event must be planned and managed through this process and life cycle.
From the initial research and development of an event concept, the event life cycle goes through
the stage of introduction, growth, maturity and possible decline. If event decline is identified in
time, options to sustain or rejuvenate the event can take place, should that be the intention.

IMPACT OF MICE

All MICE events produce impacts, both positive and negative, which it is the task to assess and balance.

 Social and cultural impacts may involve a shared experience, and may give rise to local pride,
validation or the widening of cultural horizons. However, social problems rising from events may
result in social dislocation if not properly managed.

 Political impacts have long been recognized by governments, and often include increased
profile and benefits to the host community. However, it is important that events fulfil the wider
community agenda. Governments are attracted to MICE events because of the economic
benefits, job creation and tourism that they can provide.

 Environmental impacts There is a trend internationally to use environmentally friendly practices

within the convention and meeting industry. Convention organizers and tourism organizations
have formulated green policies and identified criteria and ratings of “green” convention cities
and destinations. Programs have been put into place to manage the effects on the environment,
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 including waste recycling, reducing the consumption of water, electricity and heat, water
recycling and the rationalization of air-conditioning and lighting.

Traditionally the convention and meeting industry has been a large consumer of paper and
paper products in the form of printed conference materials, non-reusable convention and
exhibition materials, disposable cups and plates and so on.

As a result, more “green” meetings are taking place and eco policies are being put into
operation.

 Technological impacts The industry has gladly accepted and embraced new technology, and the
impact has been felt not only in the area of the equipment used to present conference data and
information, but also in the provision of different styles of conferences through the use of video
conferencing facilities. Software systems for both conference organizers and venues and
exhibition organizers are now available.

 Economic impacts serve as catalysts for urban renewal, and for the creation of new tourism
infrastructure that bring economic benefits to their communities, but governments need to
weigh these benefits against costs when deciding how to allocate resources.

BENEFITS AND CHALLENGES OF MICE

1. Regional and international exposure through an enhanced tourist destination image. Being
labelled as business or meeting location generally creates more positive travel and trade image
impressions. The publicity and media attention generated by MICE can also cut through the
traditional destination advertising and marketing clutter.

2. Exchange of ideas and knowledge sharing. Greater cooperation among those involved in the
convention can lead to more innovation.

3. Business Networking. It can be used as a marketing tool to stimulate future business links and
trade.

4. Possibility of leisure tourism. Delegate may undertake leisure pursuits over the days of the
meeting. If he or she finds the destination attractive, this could stimulate a repeat visit with
family and friends. This factor may lead to greater returns over other form of tourism.

5. Access to new technology and upgrading of local travel services. High-tech communications
systems are now considered the norm at conventions and exhibitions.

6. Local skilled employment. The demand for more facilities and services in turn creates a greater
need for professionally trained workforce in the various skills and knowledge needed in planning
and managing MICE.

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 DEVELOPMENT OF MICE IN THE PHILIPPINES

MICE in the Philippines can trace its roots to the Philippine Tourist and Travel Association.
Established in 1950, it started as private initiative to promote the Philippines as a tourist destination.

1972, President Ferdinand Marcos signed PD No. 1. This led to the establishment of the
Department of Trade and Tourism and the creation of the Philippine Tourism Commission.

One year after, the Department of Tourism became an independent body. It was later rename
the Ministry of Tourism accordance with the amendments to the 1973 Constitution.

The development of the Philippine convention industry became official government policy in
1976, a milestone year that marked the establishment of Southeast Asia’s first full-fledged convention
center, the Philippine International Convention Center (PICC); and the creation of the Philippine
Convention Bureau (PCB) as a government corporation dedicated to the promotion of Philippines as a
meetings and convention destination. That same year, the Philippines successfully played host to the
International Monetary Fund - World Bank Joint Conference that signaled the entry of the Philippines
into the world conventions market.

Since then, the Philippines has hosted some of the biggest and most important international and
regional meetings, conferences, conventions, congresses, and events that have made its capital city,
Manila, one of the acknowledged “Convention Cities” of the world.

The Philippine Convention Bureau (PCB) was later reorganized in 1987 to become the
Philippine Convention and Visitors Corporation (PCVC), now known as Tourism Promotions Board
(TPB), under the RA 9593 - Tourism Act of 2009, in response to market developments which
embraced the new, more specialized, and quality-oriented Incentive Travel Industry. In recent years,
the meetings, conventions, and incentive travel industry evolved into an even wider representation of
several specialized sector of tourism to encompass exhibition and events. The convention industry
now became known by the acronym: MICE, which stands for Meetings, Incentives, Conventions
and Exhibitions/Events.

DEPARTMENT OF TOURISM ATTACHED AGENCIES

Under the Tourism Act of 2009, there are eight (8) attached agencies, namely:

1. Tourism Promotion Board (TPB)

The Tourism Promotions Board (TPB) is a corporate body
attached to the Philippine Department of Tourism (PDOT) that is
responsible for marketing and promoting the Philippines as a global
tourism destination. Specifically, it shall market the Philippines as a

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 major convention destination in Asia, taking charge of attracting, promoting, facilitating, and servicing
large-scale events, international fairs and conventions, congresses, sports competitions, expositions
and the like.

It’s Conventions and Incentive Travel (CIT) Unit in particular, provides comprehensive information,
technical assistance and guidance to planners, organizers, association and corporate executives,
government and non-government institutions, and other entities who seek an ideal venue for their
meetings, incentive travel groups, conventions, exhibitions and events.

The TPB offers its experience and expertise through the following wide range of services and business
solutions to convention and meeting planners and incentive travel organizers:

1. SALES AND PROMOTIONS

Aggressive Philippine participation in MICE-specific international trade shows and expositions,
the conduct of sales missions abroad; and the organization of regular MICE Buyer Invitational
Programs to the Philippines.
2. BID PREPARATION
Matching international account leads with local counterparts with the potential to bid; technical
assistance in the planning, preparation, and submission of Philippine Bid Proposals; active
assistance in soliciting multisectoral support and in drawing up a total package of benefits and
privileges for Bid Presentions before international decision making Boards and entities.
3. LIAISON SERVICES
Coordination between the international Host Committee and the Local Counterpart Organization;
assistance in matching the international organization’s requirements with suitable Philippine
facilities and services; locating and endorsing PDOT/TPB-accredited and professional MICE
suppliers; and in liaising with government and other relevant local entities for necessary permits,
endorsements and authorities.
4. PROMOTIONAL MATERIAL SUPPORT
Provision of an adequate supply of specialized information materials on the Philippines as an
ideal destination for MICE groups, marketing paraphernalia like audio visual presentations,
Delegates’ bags and kits, giveaways, specially printed materials and other materials as required.
5. TECHNICAL VISITS
Coordination and organization of technical visits of international MICE Clients in relation to a bid
or a hosted/booked MICE account.
6. ATTENDANCE PROMOTION
Assistance in promoting attendance to booked events through its network of foreign and
domestic offices.
7. Airport Reception
Facilitate the arrival of incentive groups, convention and exhibition participants and other guest
coordinate with the agency at the airport.

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 2. Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

Formerly known as the Philippine Tourism Authority, TIEZA is mandated

to designate, regulate and supervise tourism enterprise zones (TEZs) as well as
develop, manage and supervise tourism projects in the country.

The act also establishes ”tourism enterprise zones” in strategic areas,

including Cebu, Davao, Bohol, Laguna, Cavite, Boracay, Palawan, and Iloilo, to lure
foreign investors and tourists to visit places rich in history and culture.

3. Duty Free Philippines Corporation (DFPC)

Mandated to operate the duty and tax free merchandising system in the country.

4. Intramuros Administration (IA)

Shall responsible for the orderly restoration and development of Intramuros as a

monument to the Hispanic period of the Philippine history.

5. National Parks Development Committee (NPDC)

Luneta Park, Paco Park and Pook ni Mariang Makiling.

Its major thrusts and programs are to:

1. Perform general maintenance work, preservation and beautification of assigned parks.

2. Rehabilitate and develop assigned parks
3. Promote recreational, socio-cultural and educational programs and activities
4. Conduct marketing activities
5. Augment the present security force of the agency

6. Nayong Pilipino FOUNDATION

Nayong Pilipino or the “Philippine Village” was conceived by

former First Lady Imelda R. Marcos and her committees of Filipino
planners and architects to promote Philippine art and culture. The site of
the original Nayong Pilipino was located in MIA Road, Pasay City,
adjacent to the airport complex.

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 Nayong Pilipino Foundation (NPF) was initially registered with the Securities and Exchange
Commission (SEC) on 21 May 1969 as a non-stock, non-profit institution, and on 6 November 1972, was
formalized as a government-owned and controlled corporation (GOCC) by virtue of Presidential Decree
(P.D.) No. 37. Subsequently, on 16 December 1991 under Executive Order (E.O.) No. 497, NPF was made
an attached agency of the Department of Tourism (DOT) or policy coordination.
Pasay Park operations ceased in 2002 while Nayong Pilipino sa Clark Expo, established at the Clark
Expo Site in 2006 made NPF its manager and operator.
In 2007, E.O. 615 mandated the transfer of the Pasay park to the 15-hectare property of the
Philippine Reclamation Authority area in Parañaque, and the transfer of the 15 hectares of the Nayong
Pilipino Foundation property to the Philippine Reclamation Authority. E.O. 58 followed this in 2011,
instructing NPF to transfer its remaining 22.3 hectares in Pasay City to the Manila International Airport
Authority.
At present, parks in operation under the foundation are Nayong Pilipino Clark Expo and Nayong
Pilipino Rizal Park, formerly the Orchidarium, now used as an interim head office facility.

7. Philippine Retirement Authority (PRA)

The Philippine Retirement Authority (PRA) is a government owned and

controlled corporation established in 1985, under Executive Order 1037. Its
vision is to make the Philippines a globally competitive and preferred retirement
destination in Asia. And its mission is to provide excellent and world class
services centered towards customer-valued quality of life that is easy, pleasant
and beneficial to foreign retirees and global Filipinos, as a channel of accelerating
the socio-economic development of the country.

8. Philippine Commission on Sports Scuba Diving

Which shall undertake measures to provide the standard basic dive rules
to all levels or kinds of divers, regulate scuba sports and technical diving in the
country and ensure the safety of the sport through the formulation of policies
pursuant thereto, in coordination with the Office of Tourism Standards and
Regulations, including the regulation of the accredited scuba sports and technical
diving establishments.

DEPARTMENT OF TOURISM MICE STRATEGY

To improve the tourism competitiveness of the Philippines, the strategy

of the DOT is to position the Philippines as a destination and venue for major
events and encourage private sector investment.

1. Position the Philippines as a preferred MICE venue

The National Tourism Development Plan will detail strategies in tourism investment, access,
product development and promotion, among others. The plan, which covers the year 2011-2016, will
serve as a strategic framework for national and local initiatives in tourism, and follows the previous 20-
year tourism master plan for 1991-2010. The infrastructure, investment and marketing components are
expected to help reposition the Philippines as a preferred MICE destination.
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 DOT will heighten efforts to capture more of the MICE market in the next five (5) years by
highlighting gains in business, infrastructure and tour operations.

2. Encourage Investment in Accommodation Facilities, Convention Centers and Airports

The MICE sector received a significant boost in 2010 with the rise of several new large – scale
accommodation facilities. The new investment being pumped into Philippines tourism definitely
intensifies the campaign of the Department of Tourism that aims to push the re-entry of the Philippines
into the world MICE Market.

DOT will look to Public-Private Partnership (PPP) initiatives in developing airports servicing key
destinations such as Boracay and Cebu. These are to complement expected increases in the number of
hotel and resort rooms there, with several projects scheduled for completion.

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