MICE tourism targets 150,000 visitors by year’s end

by Lalin Fernandopulle

The MICE – Meetings, Incentive Travel, Conferences, Exhibitions and Events sector targets around 150,000 visitors to the country by the end of this year, CEO, Sri Lanka Convention Bureau (SLCB) Vipula Vanigasekera said.

He said the number of meetings and conferences will increase to 365 this year and 375 next year compared to 325 last year. The number of exhibitions will increase from 95 last year to 110 this year and 120 in 2016 and employment opportunities from the sector would grow from 35,000 last year to 42,000 this year and 45,000 next year.

Foreign exchange earnings from the sector will be around US$ 235 million this year and US$ 320 million in 2016. Revenue from the sector last year was US$ 210 million. SLCB hopes to attract 175,000 MICE visitors next year and 225,000 visitors in 2017. The budgetary allocation for the sector next year will be US$ 126 million. The allocation for the MICE sector this year was US$ 120 million.

Vanigasekera said the MICE sector attracts high-end tourists who spend at least three to four times more than leisure travellers. They generate repeat holidays with families and friends. The meetings sector which needs more support services, generates additional employment opportunities. As indirect benefits, MICE visits lead to trade and investment opportunities, building the image of the country as a high profile venue for MICE activities and promotes infrastructure development.

Despite being optimistic about the growth of the MICE tourism sector, the SLCB CEO said the sector faces many challenges. The absence of multipurpose convention centres with more space and specifications to meet international standards was a major drawback.

One could ask what about the BMICH, SBMEC and the Sri Lanka Exhibition and Convention Centre. True enough. But there is a space crunch. Certain exhibitions which started on a ad hoc basis have become full-fledged annual events. The Architect, Techno, Construct, Motor Show, Hotel Show, Adyapana, Boat Show, Facets and the Book Fair are some of the regular exhibitions in the country which attracts a large number of local and foreign visitors.

He said the SLCB has presented a proposal for a convention centre to be built on a nine-acre block of land belonging to the Sri Lanka Tourism Development Authority. The MICE sector has been performing well with the number of visitors increasing from 50,000 in 2009 to 144,000 in 2014. The growth has not been on a par with the boom in tourism due to many limitations.

“We have been unable to address some of the main issues which need high level intervention as in Singapore, Malaysia and Hong Kong which support the MICE sector with exhibition venues and multipurpose convention centres,” Vanigasekera said.

The MICE sector is a high-end tourism segment which is given pride of place in Singapore, Malaysia, Thailand, Hong Kong, Korea and Japan.

Vanigasekera said the role of the Convention Bureau, first as a company by guarantee and now as a statutory body is considered less important. When an allocation of 6% was proposed for the SLCB from the tourism fund, certain policymakers made a big hue and cry to have it reduced to four percent.

The inability to comprehend the true meaning and potential of MICE tourism has been a stumbling block for the sector. Over 1,000 Convention Bureaus operate across the world, an indication of the contribution it could make to the economy.

He said the conference sector is performing well. All the new hotels being built will have conference facilities. However, there is a need to create awareness on the potential of various organizations to bring in high profile conferences to Sri Lanka. The biggest host in this respect is the Government – the Ministries, Departments, Boards, and Corporations. State officials attend a large number of conferences overseas but they hardly make any attempt to bring these conferences to Sri Lanka.

Sri Lanka biggest strength is in the incentive travel and corporate meetings sector because of the diverse locations and tourism products we offer.

“We need to tap the European market for incentive travel and the Indian market for corporate meetings. Promotions must be consistent. At present, we take part in a limited number of MICE fairs in Europe and China and a few country promotions in India. We are not keeping pace with our competitors,” he said.