2022: Year of the MICE

2022-02-02
/
/ New Delhi
2022: Year of the MICE

A global survey of over 500 MICE and corporate travel industry workers from 31 countries shows that as many as 67 pc expect a return to pre-pandemic levels within one to two years for events with in-person attendance

As global travel resumes, most destinations are betting on a quicker revival of MICE and bleisure tourism in the year 2022.
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In mid-December 2021, even as Europe was reeling under the rapid spread of Omicron, five Airbus A330 planes of Turkish Airlines departed from Mumbai and New Delhi almost simultaneously. Not only was it unusual to have so many aircraft of the Turkish flag carrier in India, but its load of passengers was also rather unusual. All the five aircraft had been chartered by consumer goods company Amway which was ferrying 1400 of its top performing direct sellers to the chic town of Antalya in the Turkish Riviera. The group travelled to attend the Amway Leadership Business Seminar 2021 in Antalya.

This was the largest MICE movement from India to any destination not only since the outbreak of the Covid-19 outbreak in early 2020, but it was also amongst the largest MICE groups from India to head to Turkey.

“The resort in Belek, Antalya offered us an all-inclusive package that included unlimited food and drinks through its two patisseries, three bars, and seven restaurants. To ensure that the participants do not miss the Indian food, we also took Indian chefs along with us who prepared Indian food and delicacies for our guests during their stay. The participants were left spellbound by the breath-taking view from their rooms and they enjoyed their free time in the heated outdoor pool as well as the heated indoor pool in the SPA Center offered by the resort” says Aikta Tyagi, vice president, Special Events at Amway India Enterprises.

Young Guel Choi, Director, KTO, New Delhi, In the long run, the potential of the Indian MICE market is huge, so we are consistently leveraging our position as a MICE destination to create greater awareness in India

Young Guel Choi, Director, KTO, New Delhi

It is not just Turkey that has been eyeing the lucrative MICE segment from India as global travel resumes. Many other countries have also set their sights on this segment. One of the first movers in this space was Sri Lanka, which organised a Virtual MICE Expo from December 1-3 that had participation from many countries, but specially India (see report page 14).

For Sri Lanka, India is not just the largest source market, but also one of the biggest MICE markets. According to Sri Lanka Convention Bureau, of the 355,000 Indian tourists who visited Sri Lanka in 2019, about 20 pc or over 70,000 were MICE travellers.

Besides Sri Lanka and Turkey, in the Far East, South Korea also got into the act of reaching out to the MICE segment in India quite early. In mid-December, the New Delhi office of Korea Tourism Organisation (KTO) held a day-long physical event for MICE agents in New Delhi. The objective of the “Korea MICE Experience Day 2021” was to prepare the Indian agents for the reopening of travel from India to South Korea for Indian MICE groups. The event had several experiences for the MICE professionals, in association with OTOAI (Outbound Tour Operators of India) for its active members and close travel trade and media partners of KTO.

‘‘This is our first offline or physical meeting in over two years and we focused it on MICE as we want to showcase our new MICE incentive policy to all our Indian travel partners to inform them on how they can avail of the benefits of the new policy,’’ Young Guel Choi, director of KTO New Delhi, tells India Outbound.

During the event, hybrid B2B meetings were set up with 11 destination management companies, while there were three such companies present at the venue, others connected virtually with the travel agents. KTO says it is looking forward to signing MOUs with companies who confirm their interest in sending MICE groups to South Korea by 2023. The companies which are signing the MOUs now will be eligible for an exclusive additional support or incentives by KTO when they travel formally to the country. KTO also outlined details of various incentive schemes available for MICE agents in India.

‘‘In the long run, the potential of the Indian MICE market is huge, so we are consistently leveraging our position as a MICE destination to create greater awareness in India. We organise regular ed-tours (educational tours) for the agents, so we will do such events more frequently and in the short-term, over next 2-3 years, we will also focus on luxury market and the fans of Korean culture or Korean wave,’’ adds Choi.

To create greater awareness about MICE opportunities in Maldives, the MMPRC has been campaigning in the international markets

All eyes on MICE and bleisure

Indeed, it is not just here in India, but across the world that tourism experts believe that MICE and business-related travel, including bleisure or business combined with leisure, are the segments which would stage a smart recovery and be amongst the fastest growing parts of the tourism industry as it restarts after a hiatus of over two years due to travel restrictions that were imposed due to Covid-19 pandemic.

The tiny archipelago of Maldives was also quick to spot the opportunity in MICE. “MICE is a rapidly growing segment globally and, in the Maldives, too. The segment offers huge potential of growth in the Maldives. The Maldives is renowned for great hospitality and excellent service standards, and caters to a diverse range of tourists since we officially began tourism in the country 50 years ago. The MICE segment has always played a distinct role in the industry, since we offer so many unique experiences and amenities to varying niche markets from luxury to budget travellers who seek a safe and tranquil setting for either business or leisure,’’ says Thoyyib Mohamed, CEO and managing director of Maldives Marketing and PR Corporation (MMPRC) that is mandated with promoting the destination overseas.

Thoyyib Mohamed, CEO and Managing Director of MMPRC 'MICE in the Maldives is a significant component that we felt warranted more attention from the world at large, which is why MMPRC launched a special campaign last year ‘Redefining MICE,

Thoyyib Mohamed, CEO and Managing Director of MMPRC

To create greater awareness about MICE opportunities in Maldives, the MMPRC has been campaigning in the international markets and one such campaign began last year, he says. “MICE in the Maldives is a significant component that we felt warranted more attention from the world at large, which is why MMPRC launched a special campaign last year ‘Redefining MICE’. We think it’s the perfect time to present MICE opportunities in the Maldives more vibrantly now that the world is looking for smart ways to beat the ever-present ‘zoom fatigue’ and are searching for safer options for large gatherings to reinitiate networking and professional socialising,” Mohamed tells India Outbound.

Recently, Maldives Tourism Ministry released data about tourist arrivals in 2021. For second year running, India was the top source market for the country, accounting for well over a fifth of the entire market and much ahead of the second-largest source market, Russia. For Mohamed and rest of his team, the importance of Indian market could never be stressed enough. ‘‘Despite the challenges caused by the pandemic, the Maldivian tourism sector ended 2021 rather strongly, reaching the one million tourist arrivals target in October, two months ahead of the projected deadline. We managed to receive over 1.3 million tourist visitors during last year, of which over 22 pc were from India. This includes tourists from all segments including the MICE segment. And of course, with India’s massive outbound MICE & business travel market, that is estimated to reach USD 93 billion by 2030, and with its outbound tourism market worth USD 45 billion, it is one of the most important MICE markets for the Maldives. This is why we launched our Redefining MICE campaign in India, during the MILT Congress in 2021. I can confidently say India has the potential to be our largest MICE and business travel market, given the demand it has for this particular sort of tourism, and the unique experiences that the Maldives offers for MICE travellers,’’ says Mohamed.

Before the pandemic forced travel to grind to a near-total halt, bleisure had been emerging as one of the most important trends and a long-term shift in the way business or corporate travels would take place henceforth. “Bleisure travel will still be one of the trends for business travel in the future. Over 60 pc of the surveyed travel companies expect business travellers to make personal or family trips to the destinations of their business travel next year,” a report by ITB China said.

In 2021, even during various waves of the pandemic, business travel had begun, even if business fairs and events were still being cancelled. Now, with the global vaccination rates improving broadly and many governments eager to reopen their frontiers to foreign visitors, the outlook is getting increasingly brighter for bleisure travellers, most of whom insist that no amount of meetings over Zoom or other platforms can replace the importance of interpersonal connections made during face to face, physical meetings.

Ironically, another factor which could help in bleisure travel to revive was imposed by the pandemic on the world of work, remote working. With companies becoming more amenable to remote work and with a huge and ever-growing and long pent-up demand for travel, it would be more common for people to take their spouses and families with them on business travel and at the end of business meetings, extend the stay by either making it a holiday or a remote work.

Also ReadMICE our focus in India: Khadija Turki, Ajman Tourism.

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                    Global MICE recovery accelerates

Research reports say that the shift away from the physical workplace, to remote-working patterns, now allows people more flexibility to consider between working from home and domestic or overseas travel. Likewise, hospitality providers are hoping to capitalise on the bleisure trend by offering promotions and packages that cater specifically to these travellers’ new expectations.

Global business events have already start taking place in physical format. The biggest and longest event is the ongoing Expo 2020 in Dubai which has been going strong since opening on October 1, 2021 and has already received well over 10 million visitors so far. Dubai Expo organisers hope to achieve their ambitious target of reaching 25 million visitors before curtains fall on the Expo at the end of March.

A global survey of over 500 MICE and corporate travel industry workers from 31 countries shows that as many as 67 pc expect a return to pre-pandemic levels within one to two years for events with in-person attendance. That positive outlook is the key finding of the Global Meetings and Events Forecast 2022, a report published by American Express Meetings & Events, a division of American Express Global Business Travel (GBT).

The survey findings say that the number of meetings & events with in-person attendance will grow in 2022, respondents forecast, with 81 pc of events expected to have at least one element of in-person attendance. In another indicator of the MICE industry growth, 64 pc of global meetings & events professionals report increased budgets in the coming year. However, the industry does not expect a return to business-as-usual and is not planning for it; instead, lessons learned from the pandemic period will be used to optimise the value, effectiveness, and sustainability of future events, says the survey.

Another important finding of the survey relates to the format of MICE and corporate events. An overwhelming proportion of industry players expect the virtual and hybrid formats introduced during the pandemic to continue well after the pandemic is over.

‘‘Hybrid formats will continue to grow in importance as they can reach larger audiences, allow for an integrated virtual contingency plan, and increase revenue. Attendance is expected to increase across all event types and formats,’’ says the survey.

Germany banks on its business fairs

It may be the biggest, but Expo is just one of the events lined up for this year. A number of trade events take place every year in various cities across Germany, covering literally all aspects of economy and humanity, which pull in exhibitors and participants alike from the world over. Two thirds of the world’s flagship trade fairs take place in Germany. The country has over 6,000 event venues ranging from state-of-the-art congress halls to ultra professional hotels and unusual locations. Germany also boasts of an outstanding infrastructure, reliable and professional partners, state-of-the-art technology and high-quality service are factors as a MICE travel destination, says German Tourism Board in India.

Romit Theophilus Director for India, German National Tourism Office, 'Made in Germany is a guarantee of quality that is recognised all over the world, and the same goes for meetings in Germany, where the conference and event sector is of premium quality

Romit Theophilus, Director for India, German National Tourism Office

Little wonder then that Germany is gearing up for its piece of action of Indian MICE industry again. ‘‘The border opening to Indian visitors ahead of the travel period is vital for the tourism and we anticipate Germany being recognised as a go to travel destination. During the past few months, we have been working closely with our travel partners across the region to ensure Germany remains top of mind once the situation is in control,” Romit Theophilus, director for India, of German National Tourism Office tells India Outbound.

“Germany has a wealth of activities for Indian travellers, from spa and wellness breaks, and nature trails through forests, to city-based culinary experiences and cultural explorations across multiple regions. The relaunch of tourism is in full swing. It was inevitable that the travel bug would prove stronger than the virus. But it is also clear that the places where safety can be guaranteed, and that are not overcrowded, will be the first to experience a post pandemic travel boom. And that is the case within Germany,’’ Theophilus adds.

The tourism board says that in Europe, Germany is the most preferred destination for incentives, amongst the cities, Munich and Berlin continue to be amongst the top favourites, with these cities becoming very popular for MICE visits. ‘‘Germany is now being included in itineraries for a longer duration. While earlier most itineraries included only a drive through in Germany, now many over a minimum of two overnights. The most popular region still continue to be Bavaria, The Southwest of Germany and Frankfurt and neighbouring regions,’’ he says.

During the lockdowns of 2020, Germany actually gained market share and became the no. 1 destination in Europe. According to IPK polling from summer 2021, Germany is the place where travellers worldwide consider the risk of infection to be lowest. A McKinsey study, also from summer 2021, finds that Germany’s tourism industry is weathering the crisis relatively well, will have recovered by 2023 and will return to pre-crisis levels quicker than most other European markets.

Germany is also banking on the price, a key factor for any Indian traveller and especially MICE or large groups as saving even EUR 1 per person per day can mean a saving of thousands of euros for a 500-person group travelling for a week. ‘‘Made in Germany is a guarantee of quality that is recognised all over the world, and the same goes for meetings in Germany, where the conference and event sector is of premium quality. The highest levels of professionalism at competitive prices compared with the rest of Europe, German hotel rates are particularly low while standards are high. Whether organising a major convention or an elite strategy meeting, a product launch or a cultural event, Germany has the right setting for every occasion. Germany’s wealth of business hotels are among the world’s best, with excellent transport connections, fantastic venues, top-class equipment and superb service,’’ says Theophilus.

Dubai Expo organisers hope to achieve their ambitious target of reaching 25 million visitors before curtains fall on the Expo at the end of March

MICE is the king in India

Outbound travel experts are quick to point out at as a segment, MICE is by far the most promising one and the one which has consistently delivered strong results. ‘‘Outbound MICE has been the fastest growing segment within the outbound travel market in India. Inventive travel contributes to 70 pc of that growth. In 2019, we saw close to 1.5-2 million delegates that travelled for outbound MICE the average year-on-year growth is likely to be 12-15 every year until 2030,’’ Nitin Sachdeva, CEO of Venture Marketing, a consultancy that specialises in outbound MICE and business travel from India, tells India Outbound.

Nitin Sachdeva, CEO of Venture Marketing, 'In 2019, we saw close to 1.5-2 million delegates that travelled for outbound MICE the average year-on-year growth is likely to be 12- 15 every year until 2030'

Nitin Sachdeva, CEO of Venture Marketing

Sachdeva goes on to say that the top overseas destinations for Indian MICE were Dubai, Singapore, Thailand, Indonesia, Malaysia, and Hong Kong for the shorthaul market. Switzerland, France, Germany, Eastern Europe, Turkey, Australia, New Zealand, and North America were the other noted destinations, he adds.

Like most other travels, MICE and business travel from India was also severely hit in 2020, not only due to border closures but also as many companies did not allow any outbound travel during the year due to the fear of the pandemic. Sachdeva goes on to say that while corporate travel and incentive groups did revive in 2021, most of it was domestic, with a few groups headed to the near-by all-time favourite destinations of Dubai and Maldives for incentive travel as these destinations were open to Indian travellers.

Even though the travel had completely stopped, the destinations did not pack up and go home. Instead, they stepped up with their engagement with clients through a mix of physical and virtual interactions. “Destinations have done a great job to engage the client base by keeping them up to date on the ground realities of their Destinations. The last two years have brought the best creative ideas from destinations to woo their clients. Digital events, webinars, virtual fams were key engagements that destinations undertook and were successful. Many destinations also engaged clients in India through the virtual element for the hybrid events that they hosted in their destination,’’ recounts Sachdeva.

‘‘The last quarter of 2021 saw provided a very positive outlook however in December the Omicron hit. But outlook for 2022 is very positive. It will see the return of MICE and corporate travel better than the last two years, even though we may still see some disruption due to new variants,’’ says Sachdeva.

He cites several reasons for his optimism. ‘‘Corporate clients are very positive provided destinations come up with favourable Standard Operating Procedures or SOPs. We have seen Indian groups that have travelled outbound so far have been successful by following the local protocols. Also, the boost for market should come from new segments like workcation that were born as work from anywhere culture got a solid gripping on the market,’’ he adds.

For the moment, the signal for a take-off of MICE travel from India could not get any greener, with a single condition, that countries do not again resort to “now on, now off ” mode that they have been over the last two years. Sachdeva says a few nations, in the short-haul range from India, may be the first ones to reap the benefits. “Shorthaul destinations will gain immediately as they open up due to easy access and value for money on the budget for more people to travel. On the other hand, we also see that many clients have great budgets that were accrued for the last two years, which will be used for the medium or long haul. Overall, there is a very positive outlook for the return of MICE and corporate travel,” he says.

With destinations geared up and Indian corporates as well as their dealers raring to go, outbound MICE is certainly likely to be the holy grail that would lift the Indian travel and tourism sector out of the moribund state that it has been in for over two years.

Also Read Turkey hosts biggest MICE group from India in Antalya.

Virtual MICE Expo 2021: Sri Lanka takes lead in revival of MICE travel.


Positivity barometer 

The Global Meetings and Events Forecast 2022 by American Express Meetings & Events lists regions of the world as per the optimism of the industry players about a quick and lasting revival of business.

Meetings & Events professionals in Central and South America showed the greatest optimism for the outlook in 2022, with 87 pc reporting their level of optimism as 8 or higher on a scale of 1 to 10, and 82 pc rating their career opportunities as good or excellent.

North Americans are also very optimistic about the recovery in 2022, with 74 pc reporting their level of optimism as 8 or higher. Asia Pacific is the next as 64 pc rate optimism level of 8 or higher and they expect 81 pc of events in 2022 to have some in-person elements. The least degree of optimism is to be found in Europe where only 59 pc put their optimism at 8 or more for the year.

 

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