The document provides an overview of the MICE industry, including definitions of key terms like meetings, incentives, conventions, and exhibitions. It discusses the importance of the MICE industry for Thailand's economy and development. The global MICE market is analyzed in terms of the number of events by continent, country, city, and other factors from 2003-2008.

1. Chapter 1
Introduction to the Operation and
Management of MICE industry
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E-mail: tpavit@hotmail.com
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2. Objectives
1. An overview of the industry: Definitions & Terms
2. Outline the potential benefits and significance of the
meetings, incentives, conventions and exhibitions (MICE)
industry to Thailand
3. Briefly explain the impact of MICE industry
* Economic * Political * Environmental * Technology *
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3. Introduction
Chapter 1 provides an overview of the environment of the conventions and
meetings industry and introduces the student to the global MICE industry.
A profile of the characteristics of the industry includes a review of the
international and domestic MICE market and an exploration of the facilities
and infrastructure that are available within the country.
The economic, political, technological and environmental impacts of the
MICE industry are reviewed.
In studying this chapter, students should consider the progress of the
Thailand MICE industry during the last 10 15 years in relation to its
international counterparts and consider the potential challenges for the
future.
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4. Outline
1. An overview of the MICE industry
2. The importance of MICE industries
3. The Global Market of MICE industries
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5. Introduction to MICE industry
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7. What is business travel and tourism
Business tourism is concerned with people traveling for
purpose which are related to their work. As such it
represents one of the oldest forms of tourism, man having
traveled for this purpose of trade since very early times.
(Rod Davidson)
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8. Definitions & Terms (MICE)
= Meetings
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= Incentives
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= Conventions
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= Exhibitions
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9. Meetings, Conferences and Conventions
An organized event which brings people together to
discuss a topic of shared interest. [It may] be commercial or
non-commercial may be attended by 6, or many
hundreds it may last from a few hours to a week
[What makes] a meeting qualify as part of business tourism
is that it engages some of the services of the tourism
industry
(Rod Davidson)
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10. M = Meetings
An event where the primary activity of the attendees is to
attend educational sessions, participate in
meetings/discussions, socialize, or attend other organized
events.
Could be formal, informal, as well as the venue
arrangement of either internal or external organization.
The use of external services e.g. venue, F&B, services
Basically, there are three categories of meeting.
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11. Meetings
1. Association Meeting, which are
usually of a practical or technical
nature and are related to
individual trade association,
professional societies or academic
institutions.
2. Corporate Meeting, which
businesses use to communicate
with staff and distributors.
3. Government Meeting, which the
governors from all over the world
are participated. For example
WTO, APEC and IMF conference
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12. Incentive Travel
Incentive travel is a global management tool that uses an
exceptional travel experience to motivate and/or recognize
participants for increased levels of performance in support
of the organizational goals
Society of Incentive Travel Executives
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13. I = Incentives
A reward system in which the company pay
for its employee s tour programs as to
compensate and motivate them, who have
achieved company s goal, profits, revenues or
sales.
Program might include a normal tour program,
company s activities as well as an
achievement of particular event
Company pays for their employees, however
their employees sometimes have to share the
expense too.
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14. C = Conventions
Contain activities & purposes as same as
formal meetings , however the theme or size
of the event tends to be larger/ Bigger
convention is an assembly of persons met for
a common purpose. Conventions are often
held annually, calling for more intensive
planning organizes not only the business of
the convention, but also an extensive social
program.
Basically, there are three categories of
convention.
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15. Conventions
Convention refers to the big meeting, popularly used in USA
Congress refers to the big meeting, popularly used in European
countries and the Commonwealth generally related to politics,
the assemblies especially the official assembly. In USA, the
Congress refers to US parliament.
Conference refers to the big meeting that last for several days
with hundreds or thousands of participants in USA or other
region. Normally the conference is accompanies by the exhibition,
show or other activities.
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16. Exhibitions
Presentation of products or services to an invited audience
with the object of inducing a sale or informing the visitor
Exhibitions are considered part of the business tourism
industry because the stimulate travel (for both exhibitors
and visitors)
(Rod Davidson)
Exhibitions may also be called trade or expositions in
different part of the world.
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17. E = Exhibitions
An event at which products and services
are displayed. The primary activity of
attendees is visiting exhibits on the show
floor. These events focus primarily on
business-to-business (B2B) relationships.
Moreover exhibition can mean to display of
products or promotional material for the
purposes of public relations, sales and/or
marketing.
Basically, there are two categories of
exhibition
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18. Exhibitions
1. Trade Show, which exhibit of product and
services targeted to a specific clientele
and not open to the public. (B2B)
2. Consumer Show, on the other hands its
target to the public and general.
3. Trade and Consumer Show
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19. Other events
Concerts of popular singers or
bands
Special events, e.g. reception party,
theme s dinner and talk show etc.
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20. Other events
Sport events, e.g. World Cup,
Olympic Games, ASIAN games
etc.
Other activities that attract a
large group of people who are
interested in the same thing
traveling to participate these
event/activities, e.g. Festivals,
special occasion, etc.
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21. Target Group of MICE
Meetings, Incentives
= Corporate Meetings & Incentives
Conventions / Congresses / Conference
= Association Meetings
Exhibitions
= Exhibitors / Visitors / Organizers
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22. A typology of business travel and tourism
Johnn
John Swarbrooke
and Susan Horner
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23. Definitions and Frameworks
Special events are that phenomenon arising from those
non-routine occasions which have leisure, culture, personal
or organizational objectives set apart from the normal
activity of daily life, whose purpose is to enlighten,
celebrate, entertain or challenge the experience of a group
of people.
Anton Shone, 2001
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24. Categories and Typologies
Leisure events
(leisure, sport, recreation)
Personal events Special Cultural events
(Wedding, Birthday) Event (ceremonial, heritage)
Organizational events
(commercial, Political, Sales
Anton Shone
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25. The importance of MICE industry
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26. The significant of MICE industry
Employment in the industry and
economic contribution to local
communities, provinces and the
nation
Direct foreign currencies earning
from international participant s
daily expenditures on
accommodations, food and
beverage, souvenirs, etc.
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27. The significant of MICE industry
Stimulate the investment, both
from domestic and oversea
investors.
Invest in MICE facilities and
Invest in other facilities, basic
infrastructure and other
industries.
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28. The significant of MICE industry
Stimulate domestic business firms to strengthen their
operational management by connecting or building their
synergy with external & internal firms.
New scientific & technological knowledge to develop the
nation
Create/build credibility, reputation & reliability of the hosts
to local, national, regional and international levels
Opportunities for relevant business, e.g. hotels. F&B,
transportation, tour operators, etc.
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29. The significant of MICE industry
The period of MICE events generally could enhance the
tourism industry, during MAY TO OCTOBER is a off-
peak period (low season) in most tourist destinations
An average expenditure of MICE participants generally 3
times higher than the normal tourist
4,000 THB/day/person for oversea tourists
8,000 THB/day/person for oversea MICE participants
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30. The benefits of business travel and tourism for destinations
Tend to visit in off-peak season, Relatively high
in other words, generally not Per head per
in the summer or school
and public holidays Day expenditure
Help justify and Business tourists tend to be
Fund infrastructure Business tourism relatively well behaved,
Developments which causing few problems for the
Benefits the host community and Destinations host community
Help ensure viability of Help ensure viability of
Community leisure facilities Community leisure facilities
Such as shops and theatres, . Such as shops and theatres, .
which are used by local people . which are used by local people .
as well as business tourist as well as business tourist
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31. NATIONAL MULTIPLE BENEFITS FROM MICE BUSINESS
MICE business is one of a major sectors in tourism
industry which can bring more than
700,000 overseas tourists to Thailand. MICE tourists
usually have more spending than
leisure tourists. Therefore, MICE business can earn high
income and benefits to Thailand,
both the ones which the value can be calculated and
cannot be calculated in an exact
amount of money. The benefits can be divided into 3
levels as follows;
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32. Primary Benefits
These are direct interests from international meeting
and convention, international incentive travel and
international trade fair / exhibition.
The stakeholders gaining direct benefits are venues,
organisers, PCOs, PEOs, DMCs, and Hotels.
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33. Secondary Benefits
These are related interests from international meeting and
convention, international incentive travel and international
trade fair / exhibition.
The stakeholders gaining indirect benefits are Contractors,
Freight Forwarders, Exhibitors, Restaurants &
Entertainments, Tour Agents, Shopping Centers,
Transportation & Communication, Banks and Temporary
Staff.
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34. Tertiary Benefits
These are multiple interests from international
meeting and convention, international incentive
travel and international trade fair / exhibition which
cannot be calculated in an exact amount of money.
The stakeholder in this level is the country as a
whole and benefits gained are Technology Transfer,
International Trade and Positive Image, etc.
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35. The Impacts of MICE industry
1. Economic Impacts
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2. Social Impacts
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3. Environmental Impacts
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4. Technological Impacts
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36. Economic Impacts
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37. Social Impacts
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38. Environmental Impacts
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39. Technological Impacts
Advancing the use of information technology (IT) in holding
international MICE events, e.g. VDO & satellite conference,
internet, digital & computer graphic, etc.
The improvement and encouragement of technological
development bringing-in by those exhibitors and participants
Contribute these technologies
to other business sectors
resulting the improvement
of their productivity
and competitiveness
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40. Global Market of MICE industry
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41. The Market of MICE industries
Corporate initiators, e.g. internal,external and in/external
meeting of business sector
Non-corporate initiators, e.g. international governmental
organizations (GO s), International Non-Governmental
Organizations (NGO s)
1. International markets
2. Regional markets
3. Domestic markets
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42. Level of Meeting
1. International = 2
2. Regional = ก 2
3. National Offshore Meeting
4. Domestic
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43. Segmentation
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44. Global Market of MICE industry
Number of meetings analysed
The number of events per year in
the ICCA Association
Database has grown with more than
3000 events over the past 10 years.
Source: Statistics Report, The International Association
Meetings Market, International Congress and
Convention Association
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45. Number of meetings per continent
From 2003 to 2007, the percentage of meetings organised
in Europe dropped each year, from 58.0% in 2003 to
55.1% in 2007.
In 2008 Europe s market share increased by 0.3% to
55.4%.
Asia & Middle East and North America are 2nd and 3rd
with relatively stable market shares of respectively 18.6%
and 11.4%.
Latin America s market share was 9.2% in 2008, which is
the highest of the past 10 years. Australia s market share
was 3%. and Africa s 2.5%.
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46. Number of meetings per country
As has been the case since 2004, U.S.A. and Germany
are the number one and two countries measured by the
number of international meetings organised in 2008.
The numbers 3 and 4: Spain and France had a
considerable increase by amount of meetings compared
to 2007: 40 and 79 respectively.
United Kingdom also had an increase of 40 in the amount
of meetings, but dropped from 4th place in 2007 to 5th in
2008.
The Netherlands is a newcomer in the top 10 at the cost
of Austria.
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47. Number of meetings per city
For the first time in three years, Vienna shares the top
with Paris as the most popular city in 2008.
Barcelona on 3rd place had an increase of 30 meetings
over 2007. Singapore dropped one place to 4th and Berlin
dropped three places to 5th.
Stockholm and Seoul are both newcomers in the top 10
and climb in the rankings to 8th and 9th position
respectively.
Remarkable newcomers in the top 20 are Athens, Buenos
Aires, Sao Paulo and Tokyo.
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48. Favourite months, frequency and length
September remains the most popular month for
organising international association meetings,
followed by June, October and May.
Over 55% of all international association meetings
in 2008 were annual meetings, which is a decrease
of almost 4% compared to 2007.
Over the last 10 years meetings became shorter;
the average length of a meeting in 1999 was 4.4
days and over the last three years it was 3.9 days.
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49. Venues used
Since 2005, Meeting facilities in Hotels has taken
over as most popular type of venue to organise an
event from Conference/Exhibition Centres .
In 2008 the usage of meeting facilities in hotels
consolidated its first place with 41.5%.
Usage of Conference/Exhibition Centres lost another
2.1% in 2008.
The use of universities has risen more than two
percentage points and is now 19.2%.
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50. Subjects
Medical Science has been the most
occuring subject of international association
meetings in the last 10 years.
Technology, Science and Industry have
been respectively second, third and fourth
since 2003.
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51. International Markets (Share%)
Year
2000 2001 2002
Continental
No. of Market No. of Market Market
Event Share Event Share (%) No. of Event Share (%)
(%)
Europe 1,854 59 1,540 58 1,780 60
Asia 463 15 471 18 530 18
North America 363 12 262 10 321 11
South America 208 7 177 7 145 5
Australia/Pacific 179 6 149 6 115 4
Africa 84 3 67 3 83 3
Total 3,151 100 2,666 100 2,974 100
Source: International Congress and Convention Association (ICCA), Data, June 2003
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52. Association Meetings Market
Number of meetings per country
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53. Association Meetings Market
Number of meetings per country
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54. Association Meetings Market
Number of meetings per city
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55. Domestic Market
2001 2002 2004
Province No. No. No. No. No. No.
Event Participants Event Participants Event Participants
Central
Region 537 86,543 953 90,158 1,091 163,717
North
Region 113 13,362 159 15,713 125 20,095
South
Region 339 23,215 329 27,216 331 31,224
East
Region
71 12,297 101 38,626 98 51,724
Total 1,066 136,426 1,551 172,963 1,664 268,835
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56. Discussion Questions
1. Identify and review the factors that have lead to the
recognition of Thailand as an important conference and
meeting destination.
2. Critically discuss the potential benefits that the
convention and meeting sector provide to an economy.
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57. Discussion Questions
3. Identify and explore the factors that have constrained the
growth of the international and domestic market for
conventions and meetings in Thailand.
4. Discuss the importance of the National Strategy for the
MICE Industry and subsequent government initiatives to
the development of the industry.
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