The inbound MICE sector in India is a long way from achieving its full potential. Despite the many sporadic developments happening around the country, lack of a MICE Policy and coordinated strategic vision is preventing India from becoming a leading global conferencing destination By Sudipta Dev
India is positioned 27th globally as per International Congress & Convention Association (ICCA) rankings, with 142 international meetings organised in 2013. While the MICE sector in the country has been growing at a rate of 20 per cent annually, when it comes to incoming MICE the potential is yet to be realised. Percentage of inbound MICE in India is much less when compared to the outbound MICE segment. The challenges have been many and some efforts have been made by the government and the industry bodies to analyse and address the issues, but still there is a long way to go for India to become a leading global MICE destination of distinction.
A MICE Policy is the need of the hour. A critical handicap is that the size of the industry is not known, which is necessary for planning manpower and infrastructure. Sensitisation of the state governments is another important factor, to make them aware of the economic impact of MICE events. “Result oriented initiatives should include roadshows overseas involving state governments, the corporates and associations. India is an attractive incentive destination with good MICE infrastructure in some locations but it is not marketed well. Aggressive marketing is necessary – both in Indian and overseas,” says Chander Mansharamani, MD, Alpcord Network Travel & Conferences Management Company and former vice-chairman, India Convention and Promotion Bureau (ICPB). He feels that the Market Development Assistance (MDA) Scheme under which the government provides assistance towards bidding for international conferences needs to be looked into again. “In other countries they have incentives for bringing in an event, the scheme has to be a bit more modified,” states Mansharamani.
What the country needs is at least two integrated convention centres, near international airports. “We have suggested one on the Delhi- Jaipur highway,” says Sarabjit Singh, vice-chairman, FAITH, the apex organisation for tourism and hospitality in India. He points out that while piecemeal efforts are being made, with a convention centre coming up at a destination or a hotel with large conference facilities in another, however complete infrastructure required for convention or exhibition venue is lacking. Further, FAITH has requested the ministry of commerce under Indian Brand Equity Fund to get marketing collaterals ready which can be used by anyone bidding for conferences overseas. “This would be a big help as the cost of preparing collaterals require Rs 10 to Rs 12 lakh. Now ICPB has to take this initiative forward,” mentions Singh. In 2014, FAITH had brought the United States tour operator’s association to India, while in September 2015, it will will host German tour operators’ association, DRV. “About 250-300 top level tour operators will come for site inspection and next year 1200 people will come for their convention. We are also in talks with British, Turkish and South African tour operators associations,” informs Singh. Another positive development that has happened now is that convention visitors now get Indian tourist visa, earlier visa for those attending conferences used to take a much longer time than tourist visa.
Considering the fact that many Indian companies are taking their conference and incentives out of India, FAITH has made categorical recommendation to the ministry of finance that any corporate incurring extensive MICE within India should be allowed to have double weightage on income tax, that is if they are spending Rs 10 lakh they should be allowed to claim Rs 20 lakh as income tax. “It is being considered very actively and we are hopeful. The basic problem is that they are taking business out of the country and also foreign exchange. We have also suggested that any Indian who spends Rs 50,000 on air tickets, hotels in India, should be given income tax benefit. This will give a fillip to the Indian hospitality market,” informs Singh, with evident optimism.
The business of MICE is said to generate 2.5 to three times more revenue than leisure business, per person. “Associations and event organisers need to be confident that India is capable of organising large scale events,” says Rajeev Kohli, Rajiv Kohli, joint MD, Creative Travel.
Why India?
While the focus so far has been on Incredible India campaign, there is a need to highlight ‘Why India’ to those planning their next conventions, meetings and exhibitions. “Targeted campaigns run by the government for international associations and exhibition management companies would help to boost India’s image as a MICE destination and help Indian organisers bid for congresses and conventions,” says Monimita Sarkar, MD, KW Conferences. Sarkar believes that industry bodies have a role to play to make policy recommendations to drive this change. “There is a need to actively engage with associations and multilateral agencies which hold international meetings. A sustained approach to promote India to bodies which hold international meetings, by offering incentives for them to bring their meetings to India. Several leading MICE destinations offer government subsidy to international associations wanting to hold meetings in their destinations. As done in major global cities, the Indian government agencies need to start measuring the economic impact of congresses and conventions which will lay further importance of promoting MICE for the country,” she adds.
With improvement in infrastructure and up-gradation of airports in cities like Hyderabad, Mumbai, Delhi NCR, Bengaluru and Chennai, India is on its way to establish itself as a quality MICE destination. “Opening of convention centres and hotels with facilities of holding large conferences have helped India in bidding and winning international conventions. Primary challenge for the Indian MICE industry is infrastructure. Though there has been considerable improvement in the number of hotels and convention centres being opened, lack of quality infrastructure is still a major concern for the MICE business in India,” states Naveen Rizvi, senior VP – India & Head, TUI- Meetings & Incentives & ICE- Integrated Conference & Event Management. While the country offers myriad experiences but the concentration is limited to few places only, acknowledges Rizvi. For example, while infrastructure development in North East India is un-touched, the city of Taj Mahal- Agra does not have a big convention centre to hold conferences and events. Also, the Andaman & Nicobar Islands offering exotic beach vacations on the Indian Ocean lack good quality hotels and have extraordinary high airfares for an incentive tour.
Development of facilities
There have been quite a few positive developments in recent times. Earlier there was a gap in large scale convention and exhibition infrastructure in the country, with the exception of Hyderabad, the country lacked purpose built centres. Now there is the India Expo Centre & Mart at Greater Noida, and Mahatma Mandir Centre at Gandhi Nagar. “The newly opened Jaipur Exhibition and Convention Centre offers a fresh look at a city which doesn’t need a hard sell,” states Sarkar, pointing out that with the expected opening of the Reliance Centre at Bandra Kurla, Mumbai in 2018, India will have five centres with large scale facilities. This in addition to the many four and five star hotels with meeting facilities in metros as well as Tier II cities. This apart, the branded international hotel chains have added significant value. She avers that it is essential to understand that ROI in the MICE sector in the long term. The public sector can play a vital role in developing the MICE infrastructure in popular destinations. Developing MICE infrastructure in Tier II cities, many of which still lack adequate convention venues, can not only enhance tourism but also open the avenues for economic growth in these region.
New facilities have been developed in cities like Mahabalipuram such as the Confluence Banquet & Resort or have been upgraded such as Hotel Radisson Blu Temple Bay for organising conferences, events and incentive groups. “Goa- the jewel of Indian Ocean is a major MICE destination of the country but lacked any conference centre for organising conferences and events. The recent announcement by the government on opening of a conference centre in the state will boost MICE traffic considerably,” says Rizvi, adding that, opening of ITC Grand Chola in Chennai has pushed major MICE business to the southern city. Talking about developments in Delhi NCR, new hotels like Kempinski Delhi, JW Marriott, and Hyatt Manesar offer good facilities to host big conferences and events and the opening of entire inventory at Delhi Aerocity will boost the MICE industry with more rooms to offer now.
To increase India’s ranking in the Global MICE industry, government should focus on infrastructure – develop centres like Vigyan Bhawan (Delhi) and open a convention centre in Aerocity (Delhi) which can be a part of public private partnership. “Uniformity in tax structure is also needed as India tends to lose conference bids to other destinations due to high price owing to high tax structures prevalent. Recent announcement by the finance minister of India while presenting the Union Budget 2015-16 proposals in the Lok Sabha on the grant of Visa on Arrival to citizens of 150 countries travelling to India – a sharp rise from the current 43 countries was a commendable initiative taken by the government and it will be beneficial for the growth of MICE industry in India,” mentions Rizvi.
MICE destinations
Over the years, Hyderabad has emerged as the convention capital of India. Novotel Hyderabad Convention Centre (NHCC) and Hyderabad International Convention Centre (HICC) has helped in promoting the MICE business in the country. “HICC due to its strategic location and world class infrastructure has emerged as one of the best MICE destinations in South East Asia,” says Neil Paterson, general manager, NHCC & HICC. NHCC has noticed a visible augment in both national and international conferences. “Medical conferences have taken a front seat and the numbers have been soaring ever since. We also see an increase in tourism in the country due to introduction of Visa on Arrival for various countries,” says Paterson.
Goa has been India’s favourite MICE destination for more than two decades now. With the new convention centre coming up here, it will be big boost to the MICE sector. So far, it is the few luxury resorts that have attracted international MICE guests. The Leela Goa has hosted many global conferences including the World Energy Conference in 1996 that saw 50 heads of states from all over the globe attending the event. “With international air connectivity to Goa increasing significantly in the last two years, the resort is now easily accessible for guests from Europe, Russia and the Middle East who are exploring the destination for organising large MICE events in the future,” says Shridhar Nair, general manager, The Leela Goa. The property is scheduled to host a large convention of around 300 guests from France and Spain later this year and there are many more such events that are being finalised at the resort. Goa, according to Nair, is as an ideal MICE destination for top corporate houses in Europe and the Middle East. The Leela Goa has been working very closely with the state government in Goa to ensure that the destination is marketed effectively in the major source markets ( Europe/ Russia/ CIS & Middle East ) through road shows as well as participation in MICE-focused international trade fairs. “One of the major hurdles for the growth in this lucrative segment is the lack of infrastructure which the government is now keen to address and find solutions,” adds Nair.
Then there are the new MICE destinations like Chandigarh, which has an excellent air connectivity to major metros and presence of leading hotel groups with state-of-the art MICE facilities. As The Lalit Chandigarh is located in Rajiv Gandhi IT Park – the city’s business hub, which is minutes away from the airport and railway station, the hotel serves as an important MICE hotel in the city. “Our primary focus is to achieve excellence in service with adherence to quality. We have observed a growth of about eight per cent in-terms of revenue coming from MICE events,” says Imit Arora, GM, The Lalit Chandigarh. With the construction of the international airport at Mohali, there has been a huge inflow of leisure and corporate travellers in the city from other metro cities. “There has also been a rise in the inclination of leisure travellers and international visitors towards golf. Hence, the presence of the Chandigarh Golf Club, just minutes away from The Lalit Chandigarh, proves to be an added attraction for the international/ leisure travellers,” mentions Arora.
Optimising resources
One of the significant changes observed in the last few years, according to Nair, has been the focus on optimising utilisation of resources (time/ technology/ manpower, etc.) by the conference organisers so as to make these gatherings as cost-effective and as benefit-optimal as possible. “Needless to say, technology has also played a huge role in the organisation of such large events in order to make them efficient,” he adds.
Technology and social media are effective tools in the MICE segment. Use of technology to enhance the conference experience has been adopted at NHCC. “The aim has been to deliver more inspiring, more engaging, and more results driven meeting experiences to meet the customers demand. We are transforming the meeting experience with engaging technology, flexible workspaces to inspire collaboration, and with creative solutions for the way you work today,” states Paterson.
It is necessary for MICE service providers in India to achieve global benchmarks. Sarkar believes that standardisation of services across event managers, professional conference organisers, exhibition organisers is crucial to the development of the MICE sector, and in order to achieve this, setting up of training and certification courses is essential. “In leading MICE destinations the service providers are accredited and therefore a certain benchmark is established. This has to be set-up in India,” she adds. Lack of trained manpower to handle big conferences and congresses in India was a major challenge, avers Rizvi, but many educational institutes have recently included MICE as a subject in their curriculum which will benefit the MICE industry as a whole.