lOMoARcPSD|9484490

Module 2 - MICE - Lecture notes 2

BS in Agriculture (Isabela State University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)
 lOMoARcPSD|9484490

HM 223 – INTRODUCTION TO MICE

UNIT 2: HISTORY OF EVENTS & SIGNIFICANCE OF EVENTS INDUSTRY

INTRODUCTION
In recent years, the meetings, conventions, and incentive travel industry evolved into an even
wider representation of several specialized sector of tourism to encompass exhibition and events. MICE
management is a huge industry which has a big impact on companies and brands in general. Managing
an event isn’t a child’s play and everything revolves around various forms of planning and execution. An
industry that is as versatile and dynamic such as event management is bound to evolve faster than one
can think of. Previously, event management was all about face-to-face seminars, meetings, conferences,
exhibitions, product-launches etc. However, with the digital revolution, the face of event management
has changed drastically. Therefore, the need to have better schools that have dedicated programs toward
event management has grown more than ever.
At the end of this module, it provides a comprehensive overview of M.I.C.E. events, analyzes the
elements of their success focusing on the operation and marketing strategies. We will learn about the
concept and importance of M.I.C.E industry, the different types of events and also its trends and issues.

OBJECTIVES
At the end of this chapter, you will be able to:
• Discuss how the Philippines developed as an event/MICE destination
• Identify the significance of the Events Industry to the learner’s and country’s development
• Explain the multiplier effect as an act instrument to measure the economic impact of
Tourism and Hospitality activity

DISCUSSION PAPER

Lesson I. HOW DID THE EVENT INDUSTRY BEGIN AND DEVELOP?

• Event management: How it began

Event management existed even before the 19th century. In fact, every era had people with skills of
managing an event. Event management as a crucial skill started to surface in the 20 th century where
people no longer relied upon limited resources and started needing a professional hand in carrying out
complex events. The need for face to face meetings and large-scale events started growing with the
advent of industrialization. And decades later, the rise of globalization put the final stamp on the need of
event management to rise as an independent industry.

• History

The meetings in ancient times were discussions of communal interests. Primitive people gathered to
discuss common interests such as hunting plans, war activities, peace negotiations and tribal
celebrations. Later, cities became the meeting places.

o Rome, for example, had its Roman Forum and Comitium.

o In Europe, the history of conventions began with the Congress of Vienna in 1814-15.
o In the United States, Detroit established the first convention bureau, a government authority to
promote and manage conventions, in 1896. This was followed by many other cities in the early
1900s after witnessing the benefits convention brought to the city.

Page 1
Patrick Jr Bolanio, Kathleen Mae Lopez & Sheryl May Apostol
Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)
 lOMoARcPSD|9484490

HM 223 – INTRODUCTION TO MICE

UNIT 2: HISTORY OF EVENTS & SIGNIFICANCE OF EVENTS INDUSTRY

o In 1902, the first formal incentive travel program was set up by the National Cash Register (NCR),
a U.S. company.
o The International Association of Convention Bureau (IACB) was established in 1914. IACB was
then reformed to become the International Association of Convention and Visitor Bureau (IACVB)
in 1974. From 2004, the IACVB turned into the Destination Marketing Association International.
o By the 1960s, long-distance incentive trips overseas came into view. Sometimes, training
activities would also be included.
o Europe and North America still play the leading role in the world convention and exhibition market
in terms of number of events.
o But the convention and exhibition industry in Asia has shown stronger-than-average growth
since the 1960s.However, there was very little convention activity in the 20th century until the
1950s due to the influence of the two World Wars.

• MICE in the Philippines

In the early 1980s the Philippines was considered Asia’s undisputed leader when it came to hosting
international events and conferences, with Metro Manila’s 4000-sq-metre Philippines International
Convention Centre (PICC), constructed in 1976, the first of its kind for the region. In subsequent years,
as other countries ramped up their efforts to expand their share of the increasingly lucrative meetings,
incentives, conferences and exhibitions (MICE) market, due to a confluence of factors, the segment found
itself slipping from the tourism authorities’ priority list.

o International Monetary Fund (IMF) Meeting in 1976 held in Manila.

o Asian Institute of Tourism (AIT) was established in same year granting unit degree of the UP
System.
o 1976 – Establishment of Philippine Convention Bureau (PCB) was created (PD 867)
o 1977 – Launch of the “Make it Manila” campaign
o 1979 - Sub-thematic campaigns: “Make It Cebu”, “Make It Zamboanga” and “Make It
Baguio”.
o 1980 - A banner year for PCB
o The Philippines hosted four (4) major international events:
▪ PATA Conference
▪ World Tourism Conference (WTC)
▪ 20th Congress of the International Hotel Association (IHA)
▪ 50th ASTA World Congress
o 1982 - Manila becomes top convention city in Asia – Manila moved up from its previous
position of (18) to (8) in the Union of International Association’s (UIA) annual listing of leading
world convention destinations, making it top city the Asia region.
o 1994 – 1996
▪ In 1995, the Asian Association of Convention and Visitor Bureaus (AACB) started its
“Convene in Asia” campaign, focusing the attention of the world on Asia
▪ In 1996, PCB was reorganized into the Philippine Convention and Visitors Corporation
(PCVC)
▪ The “Convention City: Manila” CMM campaign was implemented by PCVC
o 2001 – “Meetings Make Manila” (MMM) campaign in partnership with the Philippine private
sector introduced a package of incentives to make it rewarding for MICE organizers and planners
worldwide to bring their events to Manila through substantial discounts and special amenities
and privileges. Unfortunately, MMM was not sustained in view of the new priorities of the DOT.
o 2004-2009 – MICE continued to be a non-priority of the DOT and the PCVC was directed to do
general tourism programs and handle/ implement special events. In 2009, through Republic Act
9593, PCVC was reorganized into the Tourism Promotions Board.
o 2011-present – with the new administration’s pronouncement that MICE will be one of the priority
programs of DOT, TPB renewed its efforts to market the Philippines as a MICE destination
Page 2
Patrick Jr Bolanio, Kathleen Mae Lopez & Sheryl May Apostol
Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)
 lOMoARcPSD|9484490

HM 223 – INTRODUCTION TO MICE

UNIT 2: HISTORY OF EVENTS & SIGNIFICANCE OF EVENTS INDUSTRY

Lesson II. SIGNIFICANCE OF THE MICE INDUSTRY

• Learner’s Point of View

The MICE industry has its significance to the national and global economy.
o Expenditures and number of people traveling to and staying in destinations to attend meetings,
tradeshows, or other events.
o The amount of investments pour into infrastructure and other developments, including roads and
remarkable venues
o Some professionals make a career out of organizing festivals and other events
o Some topics in the study of MICE management are also applicable to other disciplines and daily
lives:
▪ Budget preparation
▪ Sales and marketing
▪ Time Management
▪ Risk/crisis management
o Planning and implementing an actual event give you valuable experience which will help you
face the challenges in the workplace.

• Country’s Point of View

The UNWTO defined tourism as “the activities of persons traveling to and staying in places outside their
usual environment for not more than one consecutive year for leisure, business and other purposes,
except activities remunerated from within the places visited”.
The year 2012 marked a great year in tourism as international tourist arrivals reached the one-billion
marked. United Nation World Tourism Organization (UNWTO) counted about 1.035B tourists who stayed
overnight in another country, and Southeast Asia is one of the regions that posted a double-digit growth
at 12% in the same year.
The MICE industry is considered an important subsector of tourism for two major reasons:
1. Quantity – Events attract guests regardless of the season. MICE have the ability to offer a new
experience at destinations thus, attracting more visitors and repeaters and holding them beyond
peak days.
2. Quality – events attendees spend more compared to ordinary tourists hence, providing higher
revenue for the same length of stay compared to regular tourists. MICE attendees also have
higher disposable income and use more tourism facilities than ordinary tourists.

Lesson III. MULTIPLIER EFFECT: HOW TOURISM AND HOSPITALITY SPENDING

FLOWS INTO THE ECONOMY
Page 3
Patrick Jr Bolanio, Kathleen Mae Lopez & Sheryl May Apostol
Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)
 lOMoARcPSD|9484490

HM 223 – INTRODUCTION TO MICE

UNIT 2: HISTORY OF EVENTS & SIGNIFICANCE OF EVENTS INDUSTRY

The MICE industry indeed contributes greatly to a country’s economic development especially to
countries with events that attract international visitors. It does not only boosts tax receipts and
infrastructure development but also creates a ripple effect in the economy.

• The multiplier effect is a direct economic impact, which is equivalent to the “new” money
that visitors or outsiders bring and this money is circulated through spending in the local
economy.
• Multiplier effect is created when different persons use the same money several times. Each
time the money is transferred from one person to another means the money is counted as
that person’s income. More transfers means more aggregate income. More aggregate
income means a bigger economy.
• The multiplier effects is the idea of repetition or multiplication of economic activities and its
effect, such that the income gained from the tourist’s dinner does not end there but creates
a series of other purchases that help the local economy.

MULTIPLIER EFFECT EFFECT ON DESTINATIONS

▪ expenditures ▪ billion dollar industry

▪ investments ▪ Primary benefits
▪ jobs o Stakeholders of M.I.C.E
▪ foreign exchange ▪ Secondary Benefits
o Employment and income
▪ Tertiary Benefits
o attract new business or
visitors
o promote and enhances a
country’s image as a tourist
destination

• Impact created by MICE on Destination

Page 4
Patrick Jr Bolanio, Kathleen Mae Lopez & Sheryl May Apostol
Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)
 lOMoARcPSD|9484490

HM 223 – INTRODUCTION TO MICE

UNIT 2: HISTORY OF EVENTS & SIGNIFICANCE OF EVENTS INDUSTRY

Business tourist tend to be relatively well behaved, causing

help justify and fund infrastructure developments which

Tend to visit in off-peak

few problems for the host community

season, generally not in the Relatively high per head per
summer or school and public day expenditures
benefit the host community

holidays
BUSINESS
TOURISM
DESTINATIONS
help ensure viability of
bring business for a wide
community leisure facilities
range of local business
such as shops and theatres,
including photographers, sign
which are used by local people
makers, printers and florists
as well as business tourist

• Source: Swarbrooke and Horner, 2001

Page 5
Patrick Jr Bolanio, Kathleen Mae Lopez & Sheryl May Apostol
Downloaded by Shirley Soriano-Quinto (shengjhay_23@yahoo.com)