Where’s my incentive?

Incentives have taken a significant precedence in the fledgling Indian MICE market 

It is difficult to overstate the excitement of the players. Yes, they were playing cricket, and at the birthplace of Test cricket, the iconic MCG, Melbourne Cricket Club to the less clued in. Aussie great Adam Gilchrist was, unusually for him, umpiring, and that only seemed to add to the number of appeals to the umpire! While the players came from diverse parts of India, and donned colourful uniforms, they were not part of the national cricket team. Instead they were there as part of direct selling giant Amway’s incentive tour. With 4,000 participants, all flown from distant corners of India to Australia, and with the company spending an average of Rs two lakh per person, no surprises that this mega event had the city government excited over the kind of revenue it was bringing.

Yes, as the Indian economy grows, even though currently spluttering, the MICE (Meetings, Incentives, Conferences and Exhibitions) business is only growing as companies seek greater productivity from their employees and more sales from their dealers. Board meetings in Bora Bora, or is it Boracay, are just a way to reward top management! Whatever be the reason, corporate India is pulling out all stops to retain the productive worker and reward the biggest revenue generators. And one of the best ways of doing this – by unique MICE experiences. Amway India closed revenues at Rs 2,400 crore mark last year, and CEO William Pinckney says the incentive trip is getting bigger each year. “Incentive trips are popular,” he says, explaining that the qualification mark for this trip lasted 18 months, and saw an unprecedented number of qualifiers. Nor is the company alone as companies from sectors such as FMCG, pharmaceuticals, automobiles, auto ancillaries, IT, cement, paints and insurance vie to incentivize through incentive trips.

Mauritius is a favoured destination for incentive travel

According to estimates, the outbound MICE market is estimated to be around $550-600 million. As a segment it has grown at about 20% annually in the last five years, despite the economic slowdown. Incentives seem to have gathered a greater share of attention. “Incentive tours are a direct outcome of a company’s performance and the sustained growth in incentive tours is a validation of the Indian economy’s resilience despite the global slowdown,” says Rajeev Kale, COO – MICE, Domestic, Cruises & Sports Holidays, Thomas Cook (India). Vishal Suri, Deputy COO Tour Operating, Kuoni India explains, “Companies are now looking at MICE specialists who can initiate unique and exciting experiences with entertainment options to reward holidays as incentives for their employees, understand that business associates and customers need to be taken care of. The services need to take care of every tedious detail, and trained personnel need to understand the requirements and offer innovative suggestions to differentiate your tour from the rest.” Karan Anand - Head, Relationships, Cox & Kings says exhibitions is the nest largest segment as senior executives from major corporate houses travel to China, Germany, Switzerland for them. He says there is lack of data for meetings and conferences as bookings are often fragmented.

“MICE as a concept has matured over the years and clients now seek fresh new and exciting destinations to provide impactful and engaging experience to their top performing dealers, partners and employees,” says Kale. “Given that the MICE market is rapidly evolving with increasingly sophisticated preferences and interests, our corporate clients are looking for experiential trips and hence higher budgets - music to our ears!” Budgets for incentives are already pre-approved and decided for incentives which is helpful, adds Sushil Wadhwa, Chairman & Managing Director, Platinum World Events. “Other sections are perceived more as a luxury than necessity, hence the growth is not as fast as the incentives.” He estimates incentives to be around 40-50% of $2 billion total MICE market in India.

Budgets are still in place. Anand says the incentive market is predominately dominated by countries in South East Asia - Thailand, Hong Kong, Malaysia, Macau. The reasons for this include convenient connectivity from most of our airports, a vibrant night life and also casinos, availability of Indian food and ease of negotiating one’s way through in these destinations. Corporates usually look at one tour a year per segment of dealers. The duration varies from a 3 to 5 night programme with budgets varying from Rs.30,000 to Rs.1.7 lakhs per person, depending on the destination, says Kale.

Indians are value seekers, points out Wadhwa. “At the same time, they have the capacity to buy luxury products and services. I have seen Indian clients pay $ 900 for a room per night and then contemplate before spending $10 on a bottle of water in the room! Typically good access, value for money hotels and services, good venues, easy visas, good nightlife and shopping are some of the things that Indians are constantly seeking.” Yeishan Goel, Chief Operating Officer, THRS, says the factors that influence the choice of a destination vary as per the kind of the movement. “For example, a group of 75 top executives on their annual company offsite with high budgets may be influenced more by the destination profile/image, experiences, security, gastronomy and luxury. However a group of pan India sales professionals on their bi-annual incentive trip are more likely to be influenced by visa procedure, connectivity, accommodations, Indian food, entertainment options and price. Having said that, we are all big on the value for money sentiment and negotiate relentlessly.”

Despite improvements, challenges for the sector remain. Along with the given challenges of logistics for a tour, challenges include limited airline connectivity and often lengthy visa regulations. Added complications include currency fluctuations, airline taxes, and concern over room sizes, especially in Europe. However changes are creeping in. Kale says “Given that our MICE corporates are increasingly looking for that special ‘wow factor’ with fresh destinations coupled with unique experiences, we observed that the traditional deciding factors have become almost redundant! Our movement of about 1,100 MICE travellers to Russia is a case in point. Despite strong concerns including language, infrastructure, governmental approvals, our MICE movement to Russia was a resounding success with the delegates with reviews like “a once in a life time experience that will be difficult to beat!” Wadhwa also points to the considerable taxes. “The government is levying a service tax of 12.36% on the entire invoice, which drives up the cost substantially,” he says.

With corporates looking at experiential trips to wow their customers, MICE travel is no longer restricted to traditional destinations and experiences. Newer areas are emerging. Scandinavia, South America, Japan, New Zealand, Morocco, Kenya, east Europe, Borneo are among the for the Indian MICE tourist is beginning to explore. Goel says that amidst the diverse new destinations trying to court the Indian customer, there's a keen interest in cruise based incentive trips this year. “Clients are also expanding their focus from entertainment and accommodations to include activities and experiences build around adventure, culture, gastronomy and wellness,” he says. Wadhwa expects East European countries such as Croatia, Ukraine, Slovenia, Hungary, Lithuania and Latvia to gain popularity. Suri says the trips have great inspirational value, and those who qualify for overseas trips tend to perform better than their peers. New opportunities for tourism boards and travel companies are key to fuelling this potential. Ease in visa regulations, increased air connectivity from India regional hubs, increased flexibility from international hotel chains towards Indian consumer sensibilities, would be invaluable in expanding the scope of MICE.

Welcome India

Thailand had about 75,000 MICE travellers from India last year

Khun Vichaya, TCEB (Thailand Convention & Exhibition Bureau) Director of Meetings Industry Department says incentive tourism accounted for 24% of the Thai MICE industry in 2012. “Last year Thailand welcomed almost 75,000 MICE travelers from India. They represented 15.7% of the total Asian MICE travelers to Thailand. Over the six-year period (2006-2012), MICE travelers from India to Thailand recorded a year-on-year increase of 24.3%.” While Bangkok firmly retains its status as one of the world’s most popular destinations, new MICE destinations such as Chiang Mai, Pattaya, Phuket and Hua Hin are ensuring Thailand has new offerings for even the repeat Indian visitor. Direct flights to other cities in Thailand are helping attract more tourists, as are “the attractiveness, value and variety of attractions at destination,” she says.

Incentive tourism is on the rise on Turkey as well, which was the sixth most popular destination for tourism globally in 2012, with 31.8 million inbound travelers (India had 6.2 million). Today most of the big group companies and even upper-middle size ones can afford and easily consider overseas “annual meetings” for their directors or even employees, usually around 50 to 100 people,” says Ozgur Ayturk, Culture and Tourism Counselor, Turkey. “Last year was a very good year with regard to MICE tourism in Turkey and we looking at an increasing rate this year as well,” he says. Turkey hosted some big MICE groups from travel industry as well like TAAI (Travel Agents Association of India) and ACAAI (Air Cargo Agents Assocation of India). The country wants to up numbers out of India and Ayturk says “as Turkey’s tourism board, we regularly participate in trade shows and conventions and hold seminars for travel agents to market Turkey as an attractive MICE destination by offering advice regarding accommodation, venues, transportation and other services”. While Istanbul is the most popular destination, the board is looking to increase visitors to places such as Cappadocia and Antalya, which are also popular MICE destinations for Indian organizations, he says. A major challenge he mentions is the lack of load factor in flights to Turkey, though Turkish Airlines has already applied for an increase in the number of the flights and get new slots pan India. Almost 91,000 Indians visited Turkey in 2012 and the growth rate was 24% over 2011. Ayturk expects a growth rate between 25 to 30% from India this year.

Malaysia is strongly perceived to be a real value for money destination in India and we will continue to be a favourite with the Indian traveller, says Manoharan Periasamy, Director, Tourism Malaysia. “Malaysia offers an extensive and affordable choice of exotic, beautiful and exciting experiences within one destination. Indians are amazed by lush tropical rainforests, idyllic island resorts, abundant wildlife, historic towns and UNESCO world heritage sites. Where MICE movements from India are concerned, most of the pharma sector considers Malaysia as a MICE destination. 2011 and 2012 saw a large number of IT companies and banks consider Malaysia for their team-building off sites. “There is a demand from Indian companies for new activities and destinations every year they visit Malaysia. MICE movement from India to Malaysia has multiplied in recent years, largely due to the efforts of the Malaysia Convention and Exhibition Bureau (MYCEB), which drafted the theme “Malaysia – Asia like Never Before” for the corporate and incentive market.”

Hongkong is not just a financial centre, but as one it attracts a huge number of tourists, many of whom combine business with pleasure. It offers an elegant mix of authentic cultural sites and modern facilities that MICE groups can enjoy Chinese tea appreciation, Chinese cake-making as well as to learn about the development of local food delicacies. Special moments could include a unique theme party or travel back in time and enjoy an evening ride on a vintage, open top tram or join the nightlife at Hong Kong’s legendary hotspots like Lan Kwai Fong, SoHo and Knutsford Terrace or watch handcrafted chocolates being made whilst listening to a wine master talk about wine pairing. The city earmarked HK$12.5 million as its marketing budget in 2012-2013 to target key growth cities in India, and expects a rise of about 5.5% in overall visitor arrival numbers.

Bali of course is one of nature’s most blessed corners on this planet, and great for tourism. Indonesia however has much else to offer and is Indian friendly, stresses Vasudha Sondhi, Managing Director, Outbound Marketing. “Visa is provided on arrival and there is good connectivity provided by various airlines. Also Indian vegetarian food is readily available and English is widely spoken throughout the country.” Apart from Bali and Jakarta, other potential MICE destinations in Indonesia include  Batam, Medan,Padang, Palembang, Bandung, Surabaya and Yogyakarta among a host of others – and with 13,000 plus islands on offer, there’s more than ample tropical paradise spots for all.

An emerging Asian destination for Indian MICE groups is South Korea, and 92,000 Indians visited Korea in 2012. “Business, technology and leisure blend well at the same time in Korea. For Indians who need to find the business opportunity, to search technology and quality with extra leisure and fun, Korea is the best destination,” says Jae-Sang, Lee, Director, Korea Tourism Organization. “Korea is an untapped holiday destination for the Indian market and hence there is a sense of curiosity in the minds of the Indian traveller.” Well for a nation that is simultaneously one of the most technologically advanced and offering the best of traditional culture, including cuisine, Korean  themed meetings, to more outdoor activities, there’s a lot on offer.

Jordan has been emerging as a major incentive destination in recent times. Ashit Taneja, Country Head, Jordan Tourism Board, India Office says that “Going by the number of Indians that travelled to Jordan last year, we are aiming to increase these numbers significantly by focusing more on the MICE segment. Till recently, people were travelling to Jordan more as a transit destination or for two nights. Focusing on MICE will ensure that the length of stay in Jordan will increase as incentive groups usually stay for 3-4 nights. What helps is that Jordan has a VOA (Visa on Arrival) scheme for Indian travelers. However it is Jordan’s wow factors that it counts upon to woo more Indians. Whether it is the long lost magnificent city of Petra, or the experience of floating on Dead Sea, dune bashing in Wadi Rum or even the re-enactment with legionnaires, gladiators and chariot races as they were 2000 years ago at the Roman ruins of Jerash, diving in the Red Sea, great cuisine, luxurious hotels and great shopping, Jordan often catches the Indian visitor by surprise for its wealth of diversity. Taneja also says that direct flights from Delhi and Mumbai and the ease of travelling within Jordan helps cut down on domestic travel time and cost.

European destinations such as Barcelona are a favourite with
sectors like pharma

Europe has always been a much sought after destination for many Indians. United Kingdom has been the starting point for Indians getting to Europe historically, and that role continues as UK, and its constituent parts, Wales, Scotland and Northern Ireland, enourage MICE tourism from India. In 2012, 95,000 Indian business visitors travelled to England. Visit England’s priority is to bring MICE business to England or encouraging more business visits and events to England, especially beyond  London. Visit England has been creating awareness about the various destinations and venues in England that are particularly suited for MICE and events that can be great occasions for corporate hospitality. There’s a lot for the incentive traveler, from Premier League matches and stadia to Royal Ascot, theatre shows to festivals, country manors to bustling cities, there's a lot on offer to the corporate visitor. Reem Khokhar, Asia-Pacific Regional Manager, Visit England, says, “We are a one-stop shop for all MICE inquiries for England and will help trade, corporates, event planners, conference organizers, etc., with information, ideas, itineraries and suggestions on suitable venues and destinations for their business event. We will put them in touch with the relevant regional/destination convention bureaux or any UK suppliers they may require.” She points out that England has always been a popular destination of choice for Indian tourists, but there is always so much new on offer to explore."

Neighbouring Ireland is on to the MICE bandwagon too, and already about 30% of the business out of India comes from MICE, most of which is incentive travel. Ireland is strongly promoting MICE in India, says Huzan Fraser of Tourism Ireland. It has extended the short-stay visa waiver programme, by which tourists or business people who have lawfully entered the UK, including Northern Ireland, on a valid UK visa are able to travel on to Ireland without the requirement to obtain an Irish visa. This scheme has helped us increase movement to Ireland in 2012 and has also seen a rise in MICE movements to Ireland for 2013 as well, says Fraser. Tourism Ireland usually assists with Irish visa process for big group movements to the Republic of Ireland. Ireland’s iconic attractions besides Dublin and Belfast, include the Giant’s Causeway and the Cliffs of Moher, the newly opened Titanic Belfast, built to commemorate the 100th anniversary of the demise of the Titanic. But perhaps you would like to live like a king in a castle, complete with a medieval banquet?

If its high end precision engineering, luxury cars, and autobahns, Germany has to be part of that sentence. “Over the years Germany has maintained its leading position as the top MICE destination for Indian MICE travelers to Europe and many of our trade fairs and events are well known must visit industry events for Indian business travelers,” says Romit Theophilus, Director Sales & Marketing, German National Tourist Office, India. “Our 2012 Indian arrivals stand at 5,84,508 overnights. Out of this number MICE is the major contributor with a share of roughly 60%. So you can make out its great importance for us as a segment.”  With about two-thirds of   global trade fairs happening in Germany, it stands out in terms of facilities, trained staff, innovation and reach. However it is Germany’s considerable other offerings that the nations seeks to promote – its great cities, vibrant art and architecture, high quality urban living, cuisine and varied landscapes. Then there are unique experiences - driving a World War II tank just outside of Berlin or going skydiving by jumping off a World War II plane. Then there is the Don 2 base jump from the roof of the Park Inn, Berlin Alexanderplatz, 125 metres off the ground. Or the Munich Beer Tour – a tour of breweries, beer gardens and cellars and the legendary Oktoberfest. Among major trips to Germany include one by Asian Paints for 1,200 people in 2011, besides significant ones by Sony Set Max and Standard Chartered. ICICI plans to take 1,800 persons on an incentive trip in 2013.

Spain has been high on recall value for many Indian since the success of Zindagi na Milegi Dobara. Arturo Ortiz, newly appointed director of Tourism Office of Spain says Indian MICE represents about 15%, and up to 25% including business trips. For Indians, the most popular destinations till date have been Madrid and Barcelona, both offering a vibrant cultural and nightlife, with shopping facilities and gastronomic offers, not to speak of the flamenco and tomatino experiences, combined with tapas or sangria making classes. Already on the horizon are other popular centres such as Valencia, Sevilla, Toledo, Cordoba, Segovia, and Malaga-Costa del Sol.  “We assist in recommending vegetarian or Indian restaurants in Spain, but mainly we help to speed up the visa process and make it smoother, issuing it within five days, even if it is a larger incentive group,” says Ortiz. “We can put them in touch with the local tourist boards, to get some maps and brochures delivered in the hotel. And of course assist them finding the right providers and hotels in the destination.”

Leading the emerging east European destinations is Poland. Soćko Kinga of the Poland Convention Bureau says MICE has always been a significant part of our promotions in India. “Despite the lack of direct flights, we have been host to many MICE groups, especially to Warsaw & Krakow, ever since we have been promoting Poland as a leisure and business destination since 2006.” Kinga says “Krakow has always been an all time favorite, not only for Indians but the world over. Warsaw gets its share and so does Poznan. We are now focusing more to divert some movements in to Zakopane, Wroclaw and Gdansk regions.”

Globally is the flavor of the season as far as tourism goes, and leading African nations are eyeing India as an important source market. Kenya has been marketing its safaris, and been drawing good response out of India. Egypt has been the most popular destination, but the events of the previous year have seen a drop in visitor numbers. Adel El Masry, director, Egypt Tourism Office, says MICE is a priority and incentive travel to Egypt had always been popular. The Egyptian Minister of Tourism Hisham Zaazou was recently in India to promote tourism to Egypt. Egypt is looking at visa-on-arrival to Indian tourists visiting Egypt and increasing flights to India, he said. “India is a high potential market for Egypt and the current inbound numbers from the country doesn’t justify the potential the market holds. We haven’t given the required attention to India so far. It is time we evolved some innovative and tactical steps to improve the engagement with this market,” he said.

Paragliding in South Africa is high on the agenda of the MICE traveller

One country that is cashing into the adventourous new Indian is South Africa, which with its wide variety of attractions, is high on the list of priority destinations for most corporate executives. Hanneli Slabber, Country Manager South African Tourism, says tourism from India grew 18% last year and half the visitors are MICE tourists. “Significantly, corporate houses are going for team building exercises in larger numbers. Indians are going for incentives largely, and Cape Town is the most popular destination. She says that while there is a lot of adventure tourism, from game parks to safaris to para sailing and sky diving, there is also ‘soft’ adventure, such as going to vineyards. “Indians appreciate the way we can mix and match our offerings, and offer great value for money. We get a fair level of top end executives, and while the biggest group to date has been of 750 people, the usual number is about 100 people per group. South African Tourism is known for doing the biggest roadshow in India, and has made the visa process simpler, though direct connectivity remains a challenge.

One of the most aspired for destinations, for most a once in a lifetime travel is to New Zealand. Mischa Mannix-Opie, Regional Manager South & South East Asia says incentive travel to the country is growing fast, and last year a group of 470 went. Along with the honeymoon and family segments, incentive is a priority area, especially as Indians tent to stay long – about 11 days. A number of groups have been travelling, she says, from about 40 people to 200 is the usual number per group. And there a lot on offer for the lover of outdoors – from scenic flights to penguin and whale watching, glacier lakes, tropical forests, bungee jumping, skywalking, kayaking, punting, even star gazing - truly Lord of the Rings country. Mannix-Opie is confident the market will grow this year. She says that if one company from a particular industry makes a trip, there is a tendency for other companies to follow suit.

An unusual, but emerging destination is the Pacific nation of Fiji. “Fiji is best suited for high-end, small MICE groups for whom budget is not a constraint and who are searching for new, never-before-explored destinations and experiences,” says Kajal Somaiya India Representative, Tourism Fiji. “In May 2012, we had our first incentive group from Deutsche Bank to Fiji. Their 4-night Fijian itinerary included activities like island hopping, jet boat, Nadi city tour and culture tour. Since Fiji is a popular honeymoon destination, our main focus for 2013 is to target other segments like high-end MICE, family and scuba divers/ adventure enthusiasts out of India.” She says that with several resorts offering fantastic packages for children under 14, Fiji is an ideal destination even for children with several water and land activities to choose from.

It’s not just tourism boards that are holding up the welcome placard. Major hotels such as The Venetian Macao, which along with other hotels on the Cotai strip offer some of the biggest convention facilities in Asia, actively market themselves in India. Natasha Tomé, Executive Director of Marketing, Cotai Strip Macao says “20% of our room revenue in 2012 was generated from MICE”. With about 9,000 rooms and 1.3 million square feet of meeting and exhibition space, nearly 60 international restaurants, bars and lounges, and around 600 luxury and mid-market retail shops, live entertainment it is surrounded by a unique cultural heritage, Cotai Strip Macao is the region’s event planning and management leader.

The rapid growth of India’s outbound numbers has made tourism players, private and public, take note. India’s outbound numbers have grown rapidly in recent years, and the final figure for 2012 is expected to be about 15 million, up from 5.4 million in 2003.  About 50 million Indians are expected to travel overseas by 2020, estimates the Ministry of Tourism, a huge spurt, though this will still be half of 100 million outbound Chinese. No surprises then that national tourism boards are rolling out the red carpet, arranging for guides, facilitating visas, ensuring vegetarian fare, participating in Indian trade shows, and even learning about India beyond the clichés!

Given that Amway has set itself a target of doubling revenue by 2020, many of the partners at Melbourne were already planning ahead to where they would like to go on their next trips.

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INCENTIVE TRAVEL COUNTRIES: AN INDIAN VIEWPOINT
Very popular
Visa on arrival/ easy to get, high awareness amongst Indians about destination, multiple direct flights, value for money, easy to navigate, availability of Indian cuisine, language little or no barrier, range of destinations
– Thailand, Singapore, Malaysia, Hongkong, Macau, Dubai

Quite popular 
Ease of visa/ visa, not always high awareness, fairly good connectivity, easy to navigate, availability of Indian cuisine, language no barrier, value for money / expensive, aspirational destinations
 – Switzerland, UK, Germany, Jordan, Turkey, Egypt (currently off the radar), South Africa, Mauritius, Maldives, Sri Lanka, Bhutan, Nepal, China, Indonesia, Philippines, Australia, New Zealand, US, Canada

Emerging destinations 
Visa process not always simple, awareness low, fairly good to indirect connectivity, not always easy to navigate, limited, though increasing availability of Indian cuisine, language often a barrier, value for money / expensive, aspirational destinations
– most Schengen countries including France, Spain, Italy, Belgium, Ireland, Poland, Finland, Greece, Austria, etc, Russia, Romania, Croatia, Slovenia, Serbia, Israel, Kenya, Tanzania, Ethiopia, Morocco, Botswana, Oman, Abu Dhabi, Central Asian nations, Mongolia, South Korea, Japan, Fiji, Vietnam, Cambodia, Laos, Taiwan, Papua New Guinea

Future destinations 
Visa process not always simple, awareness low, mostly indirect connectivity, not always easy to navigate, limited availability of Indian cuisine, language often a barrier, expensive, aspirational destinations with high end potential
– Mexico, Brazil, Argentina, Peru and other Latin American nations, Bahamas and other Caribbean nations, Greenland, Iceland, Antarctica, most sub Saharan nations, Algeria, Libya, Tunisia, Cyprus, Qatar, Bangladesh, Myanmar, Brunei, Ukraine, Belarus, Latvia, Lithuania, Estonia, Scandinavia, remaining Balkan states, south Pacific islands

Off the charts 
Little to no present incentive tourism potential
–  some sub Saharan and south Asian nations, parts of west Asia, North Korea, Georgia, Azerbaijan, Armenia, Moldova, parts of central America

Suman Tarafdar

(This article was published in Business India in April 2013)

Bargains, in historic settings

Looking into Senado Square, the heart of central Macau

Place: MACAU

For those looking for a Macau experience away from casinos, the destination of choice for most is Senado Square. Located in the peninsula in the older part of Macau, it is today part of the UNESCO World Heritage Site as the 'Historic Centre of Macau'. It is hardly ever free of

Lovely cobbled stone art is all over the area,
adding to it charm

This central area is distinctly European in its look. Located close to the former Senate building,are pastel coloured neo-classical buildings, creating a consistent and harmonious Mediterranean atmosphere.

Like many city centres around the world, it has an old world charm that makes for a great relaxing stroll around the area. Budget a few hours if you have the time, especially if you plan to shop.

It's an area that intermingles heritage and history. The ruins of St Paul's, easily the most popular historic site in Macau, is just around the corner, about five to six minutes walking. Just theoretically, for all along the way are little shops - shoes, clothes, antiques, wooden chess boards done up in Chinese styles, jewellery, cosmetics, t-shirts, curios, tea sets egg tarts and cookies, there is a lot that will continually distract you. Few, tourists or locals, can resist stopping, usually to buy, but sometimes to just look. The first time I went, my return luggage was massively overweight! A suggestions, the cookie boxes look really attractive and sell like, well hot cookies, but they are rather dry for Indian sensibilites.

Magnets come in
tempting shapes

My pick - the magnets, especially the cocks that are a symbol of Macau and the distinctive city. A lot of the stuff is made in China, so you will momentos that relate to outside Macau too. There are a number of beautiful antiques or antique looking pieces for those interested, from replicas of Chinese soldiers, to tea sets and much more. Some are exquisite, and you can bargain!

Macau in general is less expensive than say Hongkong or Singapore, but of late, shopping here is getting pricier. Though there are enough bargains for those interested. Seriously, it wont compare to Orchard Road or Chatuchak Market, but who knows you might just find your bit of travel nirvana here. 

View from the top

Place: MACAU

The ruins of St Paul's at Macau is the city state's most well known historical landmark. Today a UNESCO World Heritage site, only the southern facade of the 16th century complex survives, dating to the early part of Portuguese presence in the area.

Built from 1582 to 1602 by the Jesuits, the cathedral, dedicated to Saint Paul the Apostle, was one of the largest Catholic churches in Asia at the time.

Close to Senado Square, the focal point of old Macau, the ruins see thousands of visitors go up these steps to get themselves photographed. Even newly married couples in Macau make a beeline for it. 

Golgappas in Macau

Yes, so popular is MICE tourism getting that operators, both global and domestic, are going all out to ensure that all whims of the well paying and increasingly frequent Indian client 

The ruins of St Paul in Macau, a top MICE destination
out of India

Unlike most perceptions about MICE travel, it is not a new practice for AB Pal, a dealer for electric equipment giant Havell’s. Except once when he was not well, this Bhagirath Place, Delhi-based dealer, has not missed any of the company’s trips over the past 37 years! Though he admits they have taken really off in the last seven or eight years. “The trips are advantageous both for business and leisure,” he beams. There are clear business advantages, he says. “On the last trip, about 650 dealers from across India had gone to Macau. I knew only about 50 of them personally. So this was a good opportunity to meet the others. In our business, there is often a sudden requirement, and then you can tap a dealer you know to meet the customer requirement.” The leisure purposes are also met. “We go with our families, and the ladies like to travel. They were very surprised and pleased to have chaat and golgappas in Macau.” The organizers had also flown Bollywood stars Bappi Lahiri and Anant Mahadevan, and this made our spouses very excited, he says. “They carry cooks who can prepare food even for the fussy Indian, who wants his kadi chawal or can prepare food by specific instructions.” No wonder MICE is popular!

Setting up to meet 4,000 at a meal in Melbourne's Convention Centre

The company benefits too. Vijay Narayanan, vice-president, marketing and communications, Havell’s, says the trips serve to bond between the dealers and the customers. “There are open meetings between the top management of the company and the dealers, and concerns are discussed in open forums. There are also awards presentations, ‘gala’ nights and a lot of entertainment” A lot of queries get sorted out, and a relationship gets built, which has stood the company in good stead over the decades. While the initial trips costs little and were domestic, last year the company spent about Rs 15 crore. “There are usually two to three trips a years, for about 600 dealers each that last for about a week,” he says. The destinations depend on the level of dealers and achievements.

Vinayak Kumar Lal, GM-Marketing, Intex Technologies, a 15-year-old IT company, agrees, saying his company spends about 3 per cent of the marketing budget on MICE as it clearly helps business. “We generally go twice a year, which depends on the rewards or schemes.”

All set for a conference at Singapore's Resorts World in Sentosa

Karan Anand, Head, Relationships, Cox and Kings Ltd says the MICE industry is growing at 30 per cent both from the inbound and outbound perspective. “Indian corporate houses eager to keep their high performing employees, dealers and associates happy, are wooing them with exotic holiday options. It may be a cruise on the Bahamas or a stay at the Burj Al Arab in Dubai there is enough demand.” He says that “at the lower end, people travel to Thailand, Sri Lanka and Nepal. This is followed by Singapore, Malaysia, Hong Kong, Macau and Dubai. The more exotic ones travel to Istanbul, Australia etc.” The budget, he says, varies from Rs 60,000 per person to up to Rs 2 lakh per person.

Kashmira Commissariat COO Outbound Division Kuoni India travel is perhaps the most preferred leisure activity, and travel incentive products serve as immense motivation for internal and external customers. “They have great inspirational value, and those who qualify for overseas trips tend to perform better than their peers.” She points out that the average numbers of trips vary according to the different industries. For instance: pharmaceutical industry arranges multiple number of MICE trips, whereas insurance industry arranges the trip on half yearly basis.

Stephane Fabregoul, General Manager, The Westin Hyderabad Mindspace, says the trend is still emerging with various industries performing in different months. “Conferences is a budgeted head in companies across industries. Hyderabad also has a significant share of international conventions, which is poised to grow with the launch of Visit Hyderabad – Hyderabad Convention Promotion Bureau. Large inventories coupled with matching infrastructure help generate demand for larger conventions.”

While cements, paints, FMCG, are industries that are spending more, sectors like pharma and mutual funds have reduced their spend, Keyur Joshi, COO and Co-founder, MakeMyTrip.com. he classifies company budgets and average spends as follows:
Category 1 = Rs.10 – 20K (Usually domestic)
Category 2 = Rs.25 – 35K (Usually one stop destinations like Far East/Middle East)
Category 3 = Rs.40 – 60K (Usually Bali, Turkey, Egypt, HongKong & Macau, Philippines)
Category 4 = Rs.60 – 80K (France, Switzerland, Italy, South Africa)
Category 5 = Rs.100k + (Australia, USA)

Incentives, exhibitions… 

At an exhibition and conference in Manila's Convention Centre

Incentive tourism is often still the biggest within the MICE segment, especially as infrastructure within India does not match up the rest of the region. Incentive tourism is big for us, says Amanpreet Bhatia of MSC Cruises. He points to the advantages cruises have for corporate clients. “Cruises give time for people to interact, provide 5-star luxury, a captive audience and a one vendor contact, all of which make it easier for the client.” He says that cruises are an increasingly popular option for Indians. The choice of destination is considerable, and this depends on the time and value. Food is a major concern for Indians, he admits, but also points out that adequate care is taken to provide for food. While the charge per night ranges from Rs 6,000 to Rs 15,000, the usual tariff is about Rs 10,000 to 12,000.

MICE often ventures into the more offbeat as well. Team building is what Colonel Nirmal Mahajan, who runs an outdoor adventure company, Colonels' Adventure, says is the biggest benefit that those participating derive. “The best place to learn is at rafting camps, where they get a lot of time to bond,” he says, explaining that among the benefits are the development of calculated risk taking ability, team spirit, decisiveness and physical and mental toughness. “A lot of people who want to get away from the 5-star culture come to our camps,” he points out.

Priority for hotels
For hotels too, MICE generates considerable business. “About 15 to 20 per cent of our revenue comes from MICE, points out Roger Wright, General Manager, The Leela Kempinski, Gurgaon. Given that this hotel is adjacent to a mall in a business district and near the airport, it is unabashedly a business hotel and caters to the high end of the meetings markets – board meetings and conferences. “A lot of the MICE business comes from northern India, and it is an absolutely vital market for us,” he stresses.

“MICE is key to the survival and growth of hospitality,” sats Pradeep Kalra, Senior Vice President, Sales & Marketing, Sarovar Hotels. “We have mid scale hotels, with a stress on conference facilities. “15 to 2- per cent of our revenues come from MICE.” He points out that leisure locations derive more from the MICE segment due to its very nature such as the requirement for a conference with residential facilities, only city hotels can cater to really large conference that have about 10,000 people attending. He points to the opportunities in cities such as Hyderabad and Bangalore. In the latter Sarovar is coming up with a 234 room Park Plaza. Certain hotels such as Taj Palace, is a popular MICE destination with the capital’s largest conference venue and luxury convention centre, offering a cumulative 40,000 sq feet. Renowned  large scale conferences such as the World Economic Forum, World Atomic Nuclear Organization and Global Steel Conference among others have opted for it. It has been named as ‘Asia’s leading meeting and conferences hotel’ at the 17th World Travel Awards 2010 and awarded the India’s Leading Conference Hotel by World Travel Awards 2009 Asia.

Hotels outside India are as eagerly looking at Indian market. Oliver Bonke, Senior Vice President, Sales & Marketing, Starwood Hotels & Resorts, Europe, Africa and Middle East says 30 per cent of its overall business comes from MICE. Europe is a major incentive market for Indians, he points out. “Sectors such as pharmaceuticals, construction and finance are choosing their destinations in our region, pointing out that industry conferences too have significant Indian presence.

“An innovative approach to conventions like the signature Westin Clutter Free meetings and the meetings concierge can help drive the demand of conferences across hotel categories,” says Stephane Fabregoul of Westin, Hyderabad. “MICE is a potential growth segment for hotels, which drives both the occupancy, and thereby the RevPAR of the hotel. As India Inc reports higher profitability and returns, they tend to spend more on MICE through new launches, dealer meets, sales incentives, review meetings and the like.”

Travel company Yatra.com set up a dedicated section for MICE from April last year. Narendra Singh, Head, MICE Business, Yatra.com points to the popularity and growing importance of the segment. “Both domestic and international destinations have potential.” He points to the advantages dedicated teams like his have to offer for clients. “If a client is spending a crore, he wants it to be in safe, experienced hands. If you hand over the conference to a professional team, the responsibility goes to them for everything. As MICE PRs, we are cost effective, and have established relationships with channel partners.” He says that different clients have varying demands, and meeting them is a challenge.

Meeting far and wide

Entertainment is a significant part of conventions globally

Many global destinations are actively promoting themselves as MICE destinations. “There are many destinations presently that are packaging and promoting themselves as MICE destinations,” says MakeMyTrip.com’s Keyur Joshi. Some of the popular ones are: Hua Hin in Thailand, Bali in Indonesia, Manila in Philippines, Cape Town in South Africa, Tashkent in Uzbekistan, Macau, Spain apart from the traditional favourites Singapore, Dubai and Malaysia. Kuoni India’s Kashmira Commissariat says the preferred destinations at the moment are Dubai, Thailand, Kenya and Africa. Cox and Kings’ Karan Anand points out Australia, Macau, Singapore, Malaysia, Turkey and Hong Kong as the destinations promoting MICE very aggressively.

According to Hotels.com’s Hotel Price Index, prices paid in Asia Pacific, and their pace of recovery, shows clear variations across the region, points out Abhiram Chowdhry, Marketing Director- Asia Pacific, Hotels.com. “Large business and convention hubs, like Singapore and Hong Kong, have seen rates go up on the back of returning corporate travel demand.” According to the report, Singapore tops the biggest rise list - Indian travellers spent Rs.7,949 per room per night (up 27% from the same period a year earlier). With new conference facilities development in Macau, Vietnam, Hainan and Shanghai in China, these places are one of the new emerging popular MICE locations, he says.

The most popular city for MICE in Turkey is Istanbul and it offers many attractions for a MICE group, says a Angelina Ambrose of the Turkish Culture & Tourism Office. “Istanbul not only boasts excellent convention facilities with many world class heritage sites but also offers excellent dining and night life options too. Apart from Istanbul, beach city of Antalya and cave city of Cappadocia are getting popular with India MICE groups. There have been many groups ranging from 50 –500 persons and the average stay of the groups is about  3 to 4 nights in Istanbul.

Another favourite is Singapore, an award winning BTMICE destination, points out Jessica Sim, Area Director, Northern-Eastern India, Singapore Tourism Board. “The MICE market makes up a sizeable portion of our visitor arrivals, with a share of around 35% of total Indian arrivals. Singapore assures an enriching experience with an excellent range of state-of-the-art convention centers, exhibition halls and meeting spots to suit a variety of needs and budgets along with the convenience of nearby accommodation and dining. In the recently organized CEI Asia Industry Awards 2010, Singapore was announced as Asia’s Best City for Business Events and Asia’s Best Convention Bureau.” India is a significant market for Singapore and continues to remain as one of the top five visitor generating markets for the city-state. India recorded a whopping 829,000 visitor arrivals for the period January to December 2010, she says.

The Singapore tourism industry entered a watershed era in 2010 with the opening of two magnificent integrated resorts namely Resorts World Sentosa and Marina Bay, she underlines. “With the grand opening of integrated resorts, Singapore offers the Indian MICE segment a unique opportunity to organize a complete getaway with hotels, fine dining, shopping, entertainment and nightlife options as well as meetings and incentive facilities. Venues to hold corporate events at the Marina Bay Sands include a grand ballroom that can hold at least 6,600 people (one of the largest in Asia) or an exhibition hall which can accommodate approximately 2,000 exhibition booths and a flexible convention centre comprising more than 200 meeting rooms with capacity for over 45,000 delegates. At Resorts World Sentosa, themed functions among dinosaurs at ‘The Lost World’ and a gala dinner dressed up as movie characters at Universal Studios, is a hot favourite.”

Thailand is the premier destination for MICE tourism out of India, stresses Sheema Vohra,
Representative – India, Thailand Convention and Exhibitions Bureau.  She says there are no separate numbers for the MICE market, but many want MICE packages – usually a half day conference, gala dinner, award function, followed by leisure activities. “There is a growing interest from India in group activities within the MICE segment,” she says. She points to the advantages that makes Thailand the top destination – quick access from India, flights from different parts of the country, ease of visa regulations and excellent infrastructure. While Bangkok as the international gateway remains popular along with Pattaya, other emerging destinations include Phuket, Kosa Mui and Chiang Mai. “Indians are ready to spend, and they usually for 4 or 5 star hotels for their stays,” she says.

Time to upgrade 
India is still not seen as a MICE destination, bemoan most travel professionals. Sarovar Hotels’ Pradeep Kalra admits India will take to match the amenities South east Asia offers in terms of MICE infrastructure. “India is getting there, we have good accessibility, good food, tremendous sight seeing options, and rapidly improving infrastructure, so it should not be too long before we catch up,” he says.

“India’s infrastructure is insufficient and the government is not taking adequate steps, says Yatra.com’s Narendra Singh.  He points out the even on the Golden Triangle circuit, India’s top domestic tourist earner, there are hardly any facilities for clean drinking water and restrooms. “Even if the government can see to it that these two facilities are in place, there could be a quantum leap in the number of travelers, even for MICE.”

“India’s MICE sector is fast gaining its pace with the advanced technology and facilities being made available at a better cost than many other countries,” Abhiram Chowdhry of Hotels.com.  says  Simplified visas and greater accessibility (including both local infrastructure and new regional air services) are helping India to become an emerging MICE destination in Asia’.

If all the concerned players can act in concert, that day could come sooner rather than later.  

Suman Tarafdar

(This article was published in Business India in March 2011)

Tart time

Place: MACAU

Most of those who make a list for their trip to Macau put just one thing to eat - egg tart. Macanese cuisine is a mix of local and European influences, especially of former imperial power, Portugal. The egg tart, a derivative of the Portuguese pastel de nata, has nevertheless become famous as a delicacy from the orient, especially Macau, Hongkong etc.

The egg tart, basically a roundish pastry shell filled by egg custard and baked, comes in different varieties. 

In Macau, they are available almost everywhere, even in supermarkets. Favourites for the egg tart are Margaret's Cafe, tucked away in the bylanes of old Macau, and Lord Stow's Bakery, situated in the southern island of Coloanne. The owners of the incidentally are former spouses, and the taste is slightly different, though there is little agreement on which is better. Try both to decide. 

Meet Vegas' big brother: Macau

Place: MACAU

There are only so many superlatives one can use to describe what is now the largest casino in the world

The Venetian shimmers in reflected glory. This, the world's second largest building when built, is Macau's latest step towards making it a regional casino hub

Part of a mega hotel-convention-entertainment centre, this casino is built to host about 6,000 slot machines in 5,46,000 sq ft. Its target is new Asian, young, rich and within five kilometres of Macau. In fact, with about half the world's population, about three billion people living in that five-kilometre flying radius of Asia's Sin City, it is no surprise that Macau left Vegas behind in where it matters most - the bottom line - raking in an estimated US$ 6.8 billion.

And the Venetian Macau is set to rule here in the coming few decades. Built on land reclaimed from the sea, today this is a giant anchor hotel of the 10.5 mn sq ft Cotai Strip. The strip, whose name is derived from two of Macau's lesser-known islands - Colanne and Taipa, is witness to 14 world class hotels coming up at top speed. With a combined room capacity of 20,000 and an estimated expenditure of US$ 25-50 billion by 2010, it is a whole new city coming up at great speed.

The Venetian has cost about US$ 12 billion already, with some work left, but the rest of the Strip will have three mn sq ft of retail, three mn sq ft of meeting and convention facilities as well as a 1,800-seat entertainment complex. Sheldon G Adelson, chairman of the board and CEO, Las Vegas Sands, the holding company of the Venetian, says he looks forward to the Strip changing the face of the gaming industry in Macau, changing its image of a rather seedy gambling den to a modern, legal global centre for gaming. "We wanted to build space for 60,000 rooms, but got permission for just a third of that capacity," he says.

This, for a place that has a total area of about 27 sq km and a population of half a million people. And the number of visitors to Macau last year - 26 million. It is hoping that at least 10 million travellers from India (with its 1.3 billion people) will visit its shore by 2010. (The tourism ministry's figures for 2006 are 4.43 million!) The Venetian has 16,000 people working in the property, 9,000 as hotel staff and the rest working for the 30 fine dining restaurants, 350 speciality shops - with every luxury brand one can think of, a 1,000-seat food court, a 15,000-seat stadium (which on October 18 hosted a dream match - Roger Federer v/s Pete Sampras) inside the hotel. The MICE part will see the world's largest convention and exhibition centre.

The numbers say it all. The hotel has 3,000 suites, each with a minimum area of 650 sq ft - each with a 130 sq ft bathroom and a sunken living room overlooking the surrounding bays. And most rooms are already booked till November, informs a hotel staff. But it is the facade that elicits the biggest gasps. It is built to recreate Venice complete with St Marks Square, the Doge's Palace, a 157-feet Rialto bridge, huge colonnades, massive halls, ceiling copied from famous Italian landmarks.

There are three 490-feet canals that water the equivalent of 11 Olympic-size swimming pools, with 51 gondolas on which travellers can even get married, as couples from South Korea, Malaysia and Thailand have done, after winning nationwide contests to get married on the opening day.

The shopping is in this ambitiously-named Grand Canal Shoppes area, and though not all stores have opened yet, the visuals leave one awestruck, especially as the entire area is topped by a manmade sky, complete with clouds, which forms part of the hotel superstructure. "I chose Venice as I had my honeymoon there, and here I have combined the romance of Venice with the luxury of Vegas," says this septuagenarian who walks with a stick, but whose energy is still infectious.

If this sounds like a brochure, please excuse, for it is not everyday that one comes across the largest single building in the world, as Adelson claims. His earlier hotel at Macau, The Sands, started in 2005, recovered its investment within a year, and Adelson is the third richest American according to Forbes.

A view of the main casino room, which, when built,
was the largest in the world

"Do you want one of these?" is his opening statement on meeting Indian journalists as he proudly shows off the Venetian. But he is unwilling to venture into India without the casinos. Convention venues do not make money, they serve to create a ripple effect where the individual who comes in for the business meeting gets attracted to the casino," is his blunt reply to queries about a similar destination resort in India. But he sees great potential in the land, and says he is ready to invest a similar amount here if rules permit. Las Vegas Sands is already building a casino-resort in Singapore, which will seek to attract Indians as well. "I want to create copies of Las Vegas around the world."

However, he claims only five per cent of the Venetian's area is earmarked for gambling, though he admits he expects two-thirds of the revenue to come from it. The comparative figure for the hotel this resort is modelled on - the Venetian Resort Hotel Casino in Las Vegas gets about a third of its revenue from gambling. Respectability is a mantra for him at Macau, for he is unwilling to risk losing his license in the face of strict Chinese supervision. "No loan sharks will be permitted," he stresses, and trots out names of chains like Hilton, Sheraton, Four Seasons and Shangri-la as among the 'respectable' chains designed to give confidence to the prospective indecisive visitor.

Getting to Macau is far from simple. But like the Burj Dubai, it is set to become the chosen destination for millions by the time Asia's fairytale city is complete. One thing that travellers need to keep in mind - don't plan a holiday with kids, for those under 18 are not allowed in the casino.