MICE - A New Paradigm for Tourism

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1 MICE - A New Paradigm for Tourism 8 th UNWTO Asia/Pacific Executive Training Program on Tourism Policy and Strategy Bali 28 April to 1 May 2014 LE Tuan Anh Director General Tourism Marketing Dept - VNAT

2 VIETNAM In Brief

3 Hoi An Ancient Town Hoi An Ancient Town Hoi An Ancient Town Citadel of the Ho Dynasty Ha Long Bay Ha Long Bay Complex of Hue Monuments Phong Nha-Ke Bang National Park My Son Sanctuary 7 World Heritage Sites Imperial Citadel of Thang Long

4 Love Duet Folk Song Cultural Space of Gong Ca Tru -Ceremonial songs Doctoral Laureate Steles (Hanoi ) Xoan Singing Đờn ca tài tử The Worship of Hung Kings Hue Royal Court Music 10 ICH Wood blocks of Nguyen Dynasty Giong Festival

5 1.National MICE Development History of MICE industry: Hosted events APEC 2006 ATF 2009 Interpol GA 2011 Adasia 2013 VESAK 2011 & 2014

6 MICE Information Air accessibility: 8 international airports Ground transfer (airport to hotel): easy by bus, mini bus (2 USD) and taxi (20 USD) Hotels: 159 hotel 5*; 46 hotel 4* 375 hotel 3* MICE venues: The National Conference Center in Hanoi (NCC); Saigon Exhibition and Convention Center (SECC) in HCMC

7 MICE Information MICE technical tour (if available) Cultural programs for MICE delegates Post convention tour options (sightseeing)

8 Current state of MICE Flag/ logo Business arrivals accounted for about 16% of international arivals to Vienam, amounting to over 1.2 mil. (2013). MICE tourists made up for percent of the total tourists of some tour operators. Major tour operators in MICE: Saigontourist, Fiditour, Vietravel, Vietnamtourism-Hanoi, Peacetour, Ben Thanh Many hotels/resorts gain high occupancy all year around thanks to MICE tourists.

9 Positive factors for MICE Distinctive culture. Stunning natural beauty and biodiversity. Many UNESCO World Heritages. Over 3,200km of pristine coastline with the world-ranking beautiful beaches surprises even for jaded business travelers. Political stability. Fast growing economy, especially after being WTO member (2007). Emerging as a tourist destination of attractiveness, safety and friendliness in Asia Pacific.

10 Positive factors for MICE World-class facilities and infrastructure at major business cities. The chains of luxury hotels developed. Hotels equipped with state-of-the-art facilities to cater for most of types of MICE. Many hotels, exhibition halls and convention centers under construction. Some resorts equipped to handle meeting and incentive groups (sightseeing and team-building events). The country s accessibility from most parts of the world getting easier. Transportation infrastructure at all kinds (sea, land, air) considerably upgraded in last few years. Visa eased to attract more tourists from target markets.

11 How we support MICE organizers? Facilitate the visa entry procedures Transportation Priority Best price for accommodation Welcome by local authority and related ministry leaders

12 Success factors We understand the benefits of MICE tourism Economic benefits: Tourism income, employment Social benefits: Cultural exchange, removing barriers in languages, social class, custom, religion. Provides positive image to the country opportunities for export, trade promotion and investment. Act as a platform for transfer of knowledge and technology.

13 Success factors (Cont.) We understand the benefits of MICE tourism Multiple industry suppliers: Hotels, airplanes, travel and tour operators, exhibition venues, catering, entertainment, freight forwarders, booth suppliers and designers Contribute to deal with seasonal nature of travel and tourism business operation in some specific areas in Vietnam.

14 Challenges Insufficient industry infrastructure and accessibility - Shortage of large scale exhibition/convention centers and luxury hotels. A variety of branded hotels but limited capacity, often being overbooked, high price, ect - Insufficient transportation infrastructure (air, sea, land) - Limited accessibility (international flights) Quality of products/services: Lack of innovation in and low diversification of MICE products/service provision. Lack of ASEAN regional-class PCO (Professional Conference Organizer) and DMC (Des. Management Company)

15 Challenges (Cont.) PCO (Professional Conference Organizer) and DMC (Des. Management Company) Promotion - Lack of full cooperation between the public and private sector, among MICE service providers (hoteliers, travel agents, airlines, ect.) - Lack of a National Convention and Exhibition Bureau (NCEB) as a key organization promoting the country's MICE - Limited budget Tight competition from ASEAN neighbors - Singapore -the well-established MICE destination. Thailand & Malaysia making massive investment in and aggressively promoting MICE tourism industries with strong backing by their governments. Indonesia is increasingly attractive to business travelers

16 Supporting agencies Hotels, airplanes, travel and tour operators, exhibition venues, catering, entertainment, freight forwarders, booth suppliers and designers has been stimulating cooperation to offer package MICE tours (2003: Vietnam MICE Club founded - a joint effort of Vietnam Airlines, Saigontourist and the country s 20 high-class hotels and resorts. Its missions were to promote MICE in Vietnam with a wide range of promotional activities in target markets overseas).

17 2. MICE Destination Marketing City Break becomes one of four main tourist products lines with the sub-brand Creating brochures focusing on MICE tourism Encouraging MICE association membership or MICE networking

18 3. MICE Capacity Building - MICE defined as one of tourism products to be developed in the Vietnam Tourism Strategic Master Plan to 2020, vision Strategic directions: - Developing MICE tourism products in some major cities nationwide; - Building some ASEAN regional-class tourism and business centers; - Prove the country s ability to host international MICE events; - And branding for some selected cities as MICE destinations.

19 Future Plans for MICE Improve MICE products &services Foster promotion Build new highend hotels/resorts in big cities. Build or upgrade international standard convention/exhibitio n centers. Renovate airports, innovate transportation infrastructure. Improve telecommunications, visa, immigration procedures, ect. Develop designated product lines for each part of M.I.C.E Strengthen cooperation among MICE service providers to ensure the provision of quality package tours. More investment in R&D for MICE products to meet the demand of MICE clients. Foster promotion (roashows, trade shows, FAM/presstrip, ads, esp. via internet). Implement MICE designated campaigns. Enhance disciplinary cooperation in MICE marketing Establish NCEB to unify and strengthen efforts in marketing for MICE. Enhance education and training to improve capability and professionalism of the labor force in MICE through: -The National Action Plan on Tourism to 2020 & The National Tourism Promotion Plan to 2020 (VNAT); - Education & training establishments ; -- Foreign funded projects: EU, Luxembourg, JICA

20 Thank You LE TUAN ANH DIRECTOR GENERAL TOURISM MARKETING DEPARTMENT VIETNAM NATIONAL ADMINISTRATION OF TOURISM VIETNAM

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