TPB predicts more in-person MICE events in 2023
THE tourism promotions board (TPB), the marketing arm of the Department of Tourism (DOT), sees the Meetings, Incentives, Exhibitions, Conventions (MICE) sector bouncing back in 2023.
At the recent MICE consultative dialogue organized by the DOT, TPB Acting Head for MICE Arnold Gonzales said while many are still hosting hybrid or online MICE gatherings, “virtual fatigue is real,” that is, participants are getting tired of attending such events online. So he predicts more “in person events” by next year.
In particular, he said, “We see the return of incentive travel groups which have been stopped at the height of the pandemic. Employers see the need of organizing incentive travel as part of cultivating the mental health and creative juices of their employees.”
This will be aided by the return of most major airline routes in 2023 such that “travelers, both business and leisure, will be more confident about booking international flights.” This will likely lead to more MICE participants.
MICE is a key element in the tourism recovery of the country because it attracts higher spending visitors, said Gonzales. It provides companies with a business and trading platform, allows the transfer of knowledge among participants, as well as increasing employment opportunities, he explained.
In 2018, the DOT, along with the
Department of Trade and Industry, launched an ambitious MICE Roadmap 2030, targeting to raise country’s MICE revenues to some P20 billion by 2030, from P4.6 billion in 2016. The intervening years, including the international travel restrictions brought on by the Covid-19 pandemic, derailed the roadmap’s targets and thus, will need recalibration.
Spending will rise
THE MICE industry has yet to fully benefit from the increase in visitor arrivals to 1.9 million from February 10 to November 8, mainly due to the absence of the Chinese market, industry representatives recently told the Businessmirror. Events have been smaller and mostly local, such that many organizers are now relying on government meetings and conferences to boost their revenues and remain in the game.
(See, “International travelers are coming, but not all tourism businesses are benefiting,” October 31, 2022.)
Gonzales predicted companies will invest more in meetings and events, such that meeting spend will rise in 2023. However, he also warned companies to brace for higher costs per attendee, which will “continue to rise due to higher labor cost, food, and other fixed costs, along with the impacts of inflation.”
On the upside, more MICE spaces will be available as more conventions facilities either break ground or open, he noted. For instance, SMX Convention Center has just opened a convention facility in the Clark special economic zone, while the Megaworld Group has just opened a convention space in Boracay.
The MICE industry in Asia is also seen perking up next year as the Philippines’ neighbors target other source markets like the United States and ease their entry regulations for business travelers.
Malaysia believes the strong US dollar will make the country and other Asian nations more attractive destinations for MICE gatherings. It has also set up a special business events lane at its airport immigration section to fast track the entry of MICE participants.
For those not fully vaccinated, meanwhile, Singapore, requires a negative Covid-19 result from either RT-PCR or antigen test taken two days before departure, and have travel insurance with $30,000 medical coverage.