Chapter 8. The future of mice-tourism: analysis, problems, tendencies

On completion of this chapter students should:

- appreciate the tendencies in business travel industry

In 2006, the Europeans made a total of 54 million business trips. This accounts for 14% of all European trips abroad. Over the past ten years, there has been a 53% growth in all business trips, exceeding the overall growth in tourism. The conference and incentive travel segments are predicted to grow at a faster rate than any other tourism sector up to 2010. The revenues from international business tourism are estimated to account for up to 45% of total international tourism income by 2010. Whereas ten years ago, business travel was just for board directors and high flying executives, nowadays it has become much less a status symbol and more a corporate necessity in order to attend trainings, conferences and seminars and to conduct client meetings around the globe. The total spending of MICE travel is substantial, approximately 25% of the total travel budget of an organization.

Business tourism operates with a wide range of commercial societies, tourism agencies, hotels, fairs and exhibitions organizers, interpreters' agencies, business centers, which, in most countries, are divided in professional structures or associations that bear the name of Convention Bureau.

Professional associations in business tourism have the merit of promoting our country as a possible destination for specific events, providing training and support to this form of tourism.

Business tourism is the provision of facilities and services to the millions of delegates who annually attend meetings, congresses, exhibitions and business events or make use of incentive travel and corporate hospitality. These so-called MICE travellers – Meetings, Incentives, Conferences & Events – are influenced by several trends. For one, MICE planners are choosing destinations closer to home. As a result of terrorist threats and downward pressure on budgets, they are reluctant to take participants on long-haul business trips.

 At the same time, there is an increasing demand for events in the Gulf region, the Middle East and North Africa due to growing awareness of the region’s attractive destinations, improved infrastructure and high-quality developments. MICE visitors are increasingly demanding value from the events they attend. This implies not just educational content, but also a positive social and destination experience. At the same time, many associations are more dependent on a good turnout to generate revenues for their organisations as a result of prevailing economic conditions. This offers opportunities for lesser-known facilities that can offer unique experiences. Many planners are more and more interested in looking at smaller and newer centres for their events. Environmental issues are creating pressure on individuals and organisations to travel less frequently or to apply carbon offset for their travel.

 There are moves towards greener events held in environmentally conscious venues. As a result of a growing sense of corporate social responsibility, there is an increasing demand for destinations at which travellers can contribute to the local area and population.