Despite Ethiopia’s aspirations in tapping its rich tourism resources, the Meetings, Incentives, Conference and Exhibitions (MICE) tourism has not been paid due attention unlike the leisure tourism. Yet, for Kumneger Teketel, the nation could lure multiple benefits with a closer understanding and support of the industry, describing it as a “new industry frontier”.
Kumneger Teketel W/Gabriel, (MBA International Business, LLB, Finance), Managing Director and Lead Consultant of OZZIE Business & Hospitality Consultancy and International Events Company – Ethiopian Head Quartered Company in Hotel & Tourism sector that exclusively hosts Hotel Show Africa- Hospitality Investment Trade fair and MICE East Africa- Meetings Industry/Travel Industry. Regarding this The Ethiopian Herald held a short discussion with him in an effort to look at the concept and possible recommendations. Excerpts:
What is the concept of MICE?
Though the hospitality industry has taken a new dimension ahead, we are a bit lagging behind from celebration of its full advantages. African economies are already dragged to the global investment map, and also adding continental voice in global issues. This globally trending shift has added a new industry frontier to the existing leisure tourism. MICE are the new tourism concept arrived in our modern times. At this particular era, the hospitality industry has reached a new height where it can yield much more to economies. Therefore, MICE which is complementary to conventional leisure tourism is a growing industry with promising opportunities to our nation and the continent.
What are you doing to introduce the industry to the nation and the region?
It is three years since Ozzie Business and Hospitality Group, as an industry player, advocating a flexible turn to the utmost exploitation of MICE industry. It is with such a great pleasure that we pioneered in organizing MICE East Africa editions. MICE’s industry concept has already touched the ground.
In this 2nd MICE East Africa 2017 & 5th Hotel Show Africa 2017 edition, 180 plus exhibitors present latest products and services in the global hospitality industry. Over 250 international hospitality brands has created exposure and global value chains, not to mention the side discussions and forums. The success in attraction of industry players sends clear signal that suggest launching such constant platform is an essential element to integrate Ethiopia to the international meeting industry.
So far in Ethiopia, this effort is not accorded with institutionalized momentum from the government. It is now there is the need to establish a National Convention and Visitor Bureau. Establishment of the bureau will definitely elevate the competitive edge in modern tourism that can fuel multidimensional economic growth. It is time to redefine tourism and Ethiopia is no exception. We Ozzie Business and Hospitality Group established under the essence “thinking out of the box” philosophy.
Why do you think is it the time for the boom of this industry?
We witness an era when spending capacity drive markets and the service sector, particularly the hospitality industry is contributing hugely to economies. The industry revenues will increase exponentially in years ahead, coupled with governments’ efforts in attracting international investors in global value chains.
The long existing luxury tourism has evolved. In addition to selling sight of natural and cultural heritages to tourists, MICE evolved to selling hospitality services, by capturing delegates arriving for international businesses, conferences and exhibitions. By adopting global MICE business strategies that extract available potential, industry professionals plan on how to increase staying time at pre- and post- events.
What are the potential benefits that could be earned from MICE?
Meetings and conference tourists increase to five times more than leisure travelers as they are sponsored by their companies during their stay unlike leisure tourists who need to pay for themselves. According to some researches, this spending power difference stood around 500 percent to 600 percent, which falls between USD 100 to USD 600 difference. Additionally, Nearly 19 percent of delegates bring accompanies.
Moreover, international business tourism accounts for 45 percent of annual tourism revenue generated globally. Conference tourism is growing at 9 percent rate since 2008. Sub-Saharan tourism arrivals contribute USD 3.5 billion each day. MICE is a year round industry that can create huge permanent job opportunities, comply to the leisure tourism sector, further boost the construction of facilities, among others.
In 2014, there were 1.1 billion tourists arriving around the world and a sound estimation puts the figure at 1.8 billion by 2030. Out of them, 14 percent or 252 million arrivals will be business travelers. According to Global Association of Exhibition, the revenue from meetings and exhibitions has reached 400 billion USD and 760 billion USD, respectively. Africa’s share has stood at 3.3 percent, while Europe took 55 percent. Developed countries already have the institutional infrastructure and are exploiting MICE to the most.
As many as 40 percent of business and conference delegates return to those destinations as a leisure tourist bringing their families with them, if they had a good experience in the host country. Globally, close to 24,000 association meetings generates over 280 billion USD annually. Therefore, we can see that, every MICE delegate is a potential leisure tourist.
MICE, simply speaking, diversifies the tourism sector, build country image, attract investors, and create ample opportunity for the domestic private sector. It also benefits airlines, hotels, venues, car rentals, event organizers, banks, interpreters, booth owners, tour operators, logistics, catering companies and tourism and travel consultants and more. The cumulative effect will jump start the tourism sector and the country’s economy. Totally, it comply to and significantly increase revenue from leisure tourism.
What do you feel should be done to harness this immense potential?
Action on the understanding of the MICE concept. Creating institutions and platforms for better exposure and attraction of MICE. Developing hospitality facilities that fit for international events. Providing incentives for industry players focus on MICE investments and capacity development. Investing in higher education institutions, training, and human capital development of the MICE industry.
MICE tourism slims to Ethiopia’s strategy in diversifying tourism and hard currency sources, national image building and exposure of tourism assets. It highly contributes in FDI attraction, building reliable infrastructure and facilities, and boost private sector development, among others. There are 377 association meetings opportunities available for Ethiopia, according to International Congress and Convention Association.
Due to the late coming concept of MICE, Ethiopia is on the way to benefit from the rising MICE industry revenue. Even though one of the few diplomatic cities globally, Addis Ababa currently does list in Top Ten African countries ranked by number of international meetings hosted.
Lack of National Convention Bureau (NCB) is the major drawback to that end. Such independent institutions are essential to rebrand and sell Ethiopia’s image in the meeting industry. Once the Bureau is established, it will become member of the International Congress and Convention Association (ICCA) and bid with other such bureaus of other countries, to win over and bring the events be held in Ethiopia. In addition, the Convention Bureau can also organize professional membership of the Society of Incentive Travelers Excellence (SITE), International Association of Professional Congress Organizers (IAPCO), International Association of Exhibitions and Events (IAEE).
Of course, the fact Addis Ababa is one of diplomatic seats that houses AU, UNECA and own competitive airline is a plus advantage. International brand hotels have long started eyeing the capital. At least, a hotel is opened every month in the capital. However, lack of internationally competent service, in terms of adequate number of hotels, service standard, MICE targeting facilities and irrational pricing remain drawback.
MICE industry is government led tourism and private sector driven by nature. We highly recommend that, our beloved Ethiopia will better utilize its natural and cultural heritages, diplomatic destination and eventually catch up on MICE industry offerings predominantly through; establishing NCB- foster access to attract international meetings and conferences. Moreover, developing a national MICE strategy- essential tool for holistic approach for MICE development and integration to the economy.
Human capital development- including hospitality and event organizing courses in the higher education curriculum up to second degree is highly recommendable for professional and up to standard service sector, in addition to training, knowledge transfer methods.
Infrastructure projects management, hospitality functions need to have MICE targeting facilities. Offering incentives to such investments is basic to shift the traditional hotel investments. Rebranding of venues and other iconic locations that fit international standards and event appetites will be part of the effort. MICE national forum, constant platforms are highly needed for regional as well as international exposures, value chain links and further market explorations.
Even though the MICE concept arrived late in Ethiopia, a fast embrace can help to set off equal growth with all respective sectors. Especially at this particular stage when the country is thriving to attract investors to industrialization and increase hard currency earning, MICE is beating two targets with a stone. Providing incentives for investments in facilities that accommodate the new tourism dimension is crucial.