HISTORY OF EVENTS & SIGNIFICANCE OF

EVENTS INDUSTRY
 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.

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 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
 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
 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
 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