Vietnam's tourism industry has yet to attract MICE tourists, who are willing to pay high prices when going on vacation.
According to data from the CBI (Center for the Promotion of Imports from Developing Countries) of the Dutch Ministry of Foreign Affairs, MICE is the market that contributes the most revenue to the tourism industry. In 2019, the MICE market generated USD 916 billion globally and is expected to reach USD 1,439 billion by 2025. By 2030, the revenue is expected to reach USD 1,780 billion. Europe is the world's largest MICE market, while Asia is increasingly paying attention to MICE tourism.
However, up to now, Vietnam has not really gained much profit from this high-paying customer base, although the tourism industry considers the development of MICE tourism as one of the important orientations until 2025. "We almost do not have statistics or in-depth research on this market," said Director of the Institute for Tourism Development Research Nguyen Anh Tuan at the seminar MICE Tourism: Trends and Opportunities, held in Hanoi on the evening of September 14.
Corporate employees participate in group fun activities during a MICE tour. Photo: Novaland
MICE is an acronym for Meeting Incentive Convention Exhibition or tourism combined with conferences, seminars, incentives, exhibitions or events. MICE tourism groups are large, often up to hundreds or thousands of guests, spending more than regular tour guests.
MICE guests are those who are invited to attend tourism events organized by a unit. The portrait of MICE guests sketched globally is usually VIP guests, with important positions, wide influence, high income or high spending ability. Conferences included in MICE tours are often held at 4-5 star hotels and resorts and use high quality services. However, these are also demanding customers, requiring high professionalism in service.
MICE is not a new type of tourism product and is being promoted by many countries because the value it brings is much higher than individual or group tourism. Thailand and Singapore are the leading countries in MICE tourism in Southeast Asia.
Dr. Le Anh, Vice President of the Vietnam MICE Club (under the Vietnam Tourism Association), commented that before the pandemic, Vietnam emerged as the leading MICE tourism destination in the region. According to estimates from domestic businesses, MICE guests at travel agencies account for an average of 15-20% of total guests and up to 60% at some large units during peak months. European MICE guests account for about 20% and are high-end guests, spending 700-1,000 USD per day, while Asian guests spend more than 400 USD per day. This is a high amount of money, when the average spending of a tourist to Vietnam in 9 days is 1,200 USD, according to a survey by the National Tourism Administration.
CEO of Vietluxtour Hanoi Le Hanh commented that after the pandemic, the economies of countries around the world and Vietnam are facing more difficulties. Customers are tightening their spending but there are still businesses setting aside budgets for MICE tourism. Therefore, after Covid-19, Vietnam still has a lot of room for development and opportunities to make money from this luxury tourist stream.
According to tourism experts, Vietnam has great advantages for MICE tourism such as cultural identity, rich cuisine, long and beautiful coastline, diverse and safe natural landscapes. Although Singapore is the leading market for MICE tourism in Southeast Asia, this place is too modern, visitors mainly come to shop. Meanwhile, MICE visitors are looking for experiences to find pristine places, close to nature or learn about local life and culture after the conferences end. Vietnam has all the advantages to meet that need of tourists.
"If we do a good job of promoting to attract MICE guests, Vietnam can earn a lot of money from this type of guest," said a representative of a travel company specializing in welcoming Asian MICE guests to Vietnam.
Besides, low prices are also a competitive advantage of Vietnamese tourism. CEO of Dat Viet Tour Do Van Thuc said he once had to rent an LED screen at an "astronomical" price when organizing an event for 300 Vietnamese guests in Bali, Indonesia. "Meanwhile, in Vietnam, everything is available, professional and the prices are more competitive," he said.
Director Nguyen Anh Tuan said that developing MICE tourism requires synchronization in policies and strategies. Currently, Vietnam does not have a separate strategy for developing this type of tourism. In Vietnam, businesses are doing it themselves and mainly based on personal experience, while state agencies are still "finding their feet".
According to Dr. Le Anh, the exploitation and development of MICE tourism products in Vietnam is facing many challenges. Vietnam currently has many 5-star hotels, but the number of rooms and meeting room capacity is still low. Not many convention and exhibition centers can meet the requirements of organizing events for large groups of guests, with a scale of several thousand people. Human resources serving MICE tourism are still limited in both quantity and quality. The promotion of this type of tourism to the international market is still weak and fragmented.
The biggest challenge now is the lack of human resources, although companies are constantly recruiting new employees. Many MICE businesses have had to pay high salaries to attract tourism staff who have switched to other industries and are now providing intensive training to students of tourism schools.
The lack of working capital also makes MICE businesses stressed because accommodation facilities, restaurants, and transportation all require advance payment guarantees. However, during peak season, when there are many guests, even though MICE businesses have money, service providers still do not have enough capacity to meet customer needs.
Dr. Le Anh believes that in order for MICE tourism to truly become a "specialty" of Vietnamese tourism, localities need to combine destinations, continue to invest in infrastructure, implement synchronous solutions, and have effective coordination between related industries and services. Attracting investment and promoting strongly will help MICE tourism accelerate in the coming time.
"High professionalism is the most essential factor for MICE tourism in Vietnam today, along with connectivity and strict selection of destinations and tourism products," Dr. Le Anh commented.
Phuong Anh
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