SORSOGON STATE UNIVERSITY | TPC 4 – MEETINGS, INCENTIVES, CONFERENCES, AND EVENTS MANAGEMNENT CHAPTER 1

Republic of the Philippines

Sorsogon State University
Sorsogon City Campus
Sorsogon City
Tel No. (056) 211-0200
sorsogostateuniversity.edu.ph

CHAPTER 1:
THE MEANING AND
IMPORTANCE OF MICE

Prepared by:

Dharwin Almiñe
Arjay Estur
Laleska Borromeo
Myka Dometita
Crystel Nicole Pareja
Angelica Lelis

Author | ZENAIDA L. CRUZ 1

SORSOGON STATE UNIVERSITY | TPC 4 – MEETINGS, INCENTIVES, CONFERENCES, AND EVENTS MANAGEMNENT CHAPTER 1

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I. Module Title: The Meaning and Importance of MICE.

II. Learning Outcomes:

At the end of this chapter, you should be able to:

1. explain the meaning of MICE;

2. define meeting, incentive, conference, convention, exhibition, exposition,
and event;
3. describe the role of the MICE industry in the tourism and hospitality
industry;
4. identify the components of the MICE industry;
5. describe the history of the MICE industry;
6. explain the growth of the MICE industry; and
7. discuss the importance of the MICE industry.

III. Lecture Notes:

Meaning of MICE

MICE is an acronym for meetings, incentives, conferences, conventions, and exhibitions

industry. The MICE industry is one of the fastest-growing and lucrative areas of the
tourism and hospitality industry.

In discussing the MICE industry as a whole in this book, the terms "MICE" and
"conventions, meetings, and events" are used interchangeably.

Definition of Terms

The following are the definitions of each sub-sector of MICE:

Meeting - gathering of people for a common purpose such as business, social, or

religious purpose. Meetings do not include exhibits.

Incentive - reward event intended to showcase persons who meet or exceed sales or
production goals. It is also called incentive program.
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Conference - participatory meeting designed for discussion, fact-finding, problem-

solving, and consultation. It is used by an organization to exchange views, convey a
message, open a debate, or give publicity to some area of opinion on a specific issue.

No tradition, continuity, or periodicity is required to convene a conference. Compared to

a congress, a conference is smaller in scale.

Convention - gathering of individuals in which the planning activity of the attendees is

to attend educational sessions, participate in meetings/discussions, socialize, or attend
other organized events. Conventions include exhibits. Congress is the European term
for convention.

Exhibition - the display of products or promotional materials for purposes of public

relations, sales, and/or marketing. It is an activity designed for suppliers of products,
goods, and/or services to demonstrate and promote to a certain market. It is the
European term for exposition.

Exposition - larger in scale than an exhibition. It generally consists of a huge public

display of the goods and services of a particular industry.

Event - an occurrence, happening, and activity designed around various themes in order
to create or enhance interest in a destination.

The Role of MICE in the Tourism and Hospitality Industry

The MICE industry is an exciting and profitable segment of the tourism and hospitality
industry. A major source of revenue for the tourism and hospitality industry comes
from the meetings, incentives, conventions, and exhibitions segment of the industry. As
the tourism and hospitality industry saw great increases in expenditures, meetings,
incentives, conventions, and exhibitions experienced great growth as well. With the
many changes the tourism and hospitality industry has undergone in the past20 years,
the importance of MICE has become more recognized. The need to communicate with
one another face-to-face has been the driving force behind the growth of this industry.

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Components of the MICE Industry

There are four major components of the MICE industry, namely: planners and
groups they represent, host facilities, services, and exhibitors.

1. Planners are individuals or groups that plan meetings, conventions, and

exhibitions. Planners are classified into a number of categories such as
corporate meeting planners, association meeting planners, and independent
meeting planners. Corporate meeting planners work exclusively for a
corporation. Association meeting planners work exclusively for an association.
Independent meeting planners contract their services to both associations
and corporations.

2. Host facilities provide lodging, meeting rooms, food and beverage, as well as a
number of other services for groups attending meetings, conventions, or
exhibitions. Host facilities include hotels, conference centers, resort hotels,
universities, bed and breakfast inns, etc.

3. Services refer to individuals and organizations that provide support for the
meetings, conventions, and exhibitions segment of the tourism and hospitality
industry. Service suppliers include transportation companies, attractions, tour
guide companies, and entertainers.

4. Exhibitors are financially linked with all segments of the MICE industry. They
provide much of the revenue needed for the planners to hold meetings,
conventions, and exhibitions. Exhibitors are persons who work for the
company. Other names for an exhibitor are advertising director,
communication director, or director of marketing, who is involved with the
corporate exhibit program. The main aim of exhibitors is to introduce their
products, both new and old, to an interested audience.

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History of the MICE Industry

Archeologists who investigated ancient cultures have found ruins that served
as places where primitive people gathered to discuss common interests such as hunting
plans, war activities, peace negotiations, and tribal celebrations. Each village or hamlet
had its common gathering place. As geographical areas grew, cities became the
meeting places for people who wanted to trade goods or discuss common problems. As
cities became the center of activities for geographical regions and transportation
improved, the desire of the people to gather and discuss things of common interest
became more widespread. Trade associations, professional, fraternal, and religious
organizations assembled to discuss relevant issues. Discussions of trade regulations,
as well as selling or trading of goods, were the main reasons for convening. Many
trade, professional, fraternal, and religious associations have historical roots in
Europe. In the United States, such activity took place only in the mid-1800s. As
America grew, so did its trade, professional, fraternal, and religious associations.

In the Philippines, Manila, its capital, is proud to have pioneered the

international meeting industry in Southeast Asia. 1976 was a memorable year for the
region. It was in this year that Manila opened its door to Asia's first full-fledged
convention center - the Philippine International Convention Center (PICC) - to the
International Monetary Fund/World Bank Meeting. Since then, Manila has developed
its professionalism and expertise. It has developed an infrastructure of deluxe
accommodations, efficient transportation network, and modern telecommunications to
support a versatile range of meeting facilities. In 1996, Manila celebrated 20 years as
a leading destination for meetings, conventions, and exhibitions.

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The Growth of the MICE Industry

The growth of the MICE industry has been remarkable. Most of this development has
occurred within the past 10 years. This growth has been due to several factors:
meeting planner’s associations, the airline industry, the lodging industry, convention
centers, conference centers, meeting technology, and ground handlers.

Meeting Planners Associations

Development of associations is connected with meeting planners. These associations
not only grew in numbers but also expanded the list of services they offered to their
members. Majority of these associations increased their emphasis on education. Other
growth factors included the rise of the independent meeting planners, the increase in
the number of women planners, certification and development of standards, and the
integration of travel agents into the profession.

Airline Industry
The advancement of the airline industry enabled people to travel quickly and
efficiently. This was made possible by the introduction of the jet airplane - an
invention that revolutionized transportation worldwide. A relevant factor was the
deregulation of the airline industry which resulted in vigorous competition among
airlines to attract more passengers. This caused a reduction in the cost of air travel.

Lodging Industry
The lodging industry recognized the financial importance of MICE. Hotels grew and
became convention centers. Hoteliers learned to adapt their services to different
clients. Property marketing directors learned how to work with meeting planners.

Convention Centers
Convention Centers Convention centers expanded in terms of exhibition spaces,
accessibility and storage facilities. They were able to accommodate all the activities
of a convention and trade show under one roof. Traffic was improved, allowing large
numbers of people to move quickly from one area to another.

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Convention Bureaus
Convention bureaus grew rapidly both in numbers and size of operations. The number
of bureaus has doubled since 1980, from 100 to more than 250. Their operators have
become more professional. They actively participate in industry and association
affairs.

Conference Centers
Conference centers changed their appearances during the past two decades. For some
time they maintained a "business only" appearance. This has been replaced by modern
restaurants, recreational facilities, and the latest high-tech audiovisual equipment.

Meeting Technology
Modern audiovisual equipment gave meeting planners a greater degree of flexibility
and creativity that was never possible in the past. Video projectors, 360-degree
projection techniques, multi-image presentations, and unique sound systems have
become very common.

Ground Handlers
Effective ground arrangements became necessary as MICE became more complex.
Ground arrangements include planning tours, transportation, sightseeing, banquets, and
hotel reservations. Convention service companies were established in the 1970s to
develop creative meeting programs.

Importance of the MICE Industry

One of the most rapidly growing segments of the tourism and hospitality
industry is the MICE industry. In the United States, it has developed into an industry
that is worth more than $25 billion. The international convention and exhibition
market has grown considerably in Western Europe mainly in France, Belgium, Great
Britain, and Switzerland.

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SORSOGON STATE UNIVERSITY | TPC 4 – MEETINGS, INCENTIVES, CONFERENCES, AND EVENTS MANAGEMNENT CHAPTER 1

Conventions and exhibitions generate a tremendous amount of revenue within

the tourism and hospitality industry. Travel sales from meetings, conventions, and
exhibitions are so important to the economy that all levels of government have
organized, advertised, and provided services to attract these groups.

The United States has offices in major industrial countries to help

organizations with travel arrangements to the country. Each state allots a major part
of its budget to advertising to encourage conventions and business travel to their
state. Majority of cities with a population of around 200,000 have visitor and
convention centers that aim to attract and support meetings, conventions, and
exhibitions.

Over the years, the International Association of Convention and Visitors

Bureaus has undertaken an assessment of the economic impact of MICE. It was found
out that out-of-town convention delegates spend an average of $638 for a 3.5-day
stay. Delegates to international, national, or regional conventions/ exhibitions stay an
average of 4.1 days and spend an average of $818. Trade show delegate expenditures
exceed $1,000, including exhibitor and association expenditures.

The International Association of Convention and Visitors Bureaus has

conducted these studies for several years involving the United States and non-U.S.
cities. These studies showed that approximately 82 million delegates attended
267,810 meetings with a direct economic impact of more than $56.6 billion.

IV. Summary:

A meeting is a conference, workshop, seminar, or other event designed to bring

people together for the purpose of exchanging information. Meetings do not include
exhibits. An exhibition is an event designed to bring together providers of products,
equipment, and services in an environment in which they can demonstrate their
products and services to a group of participants in a convention or trade show. A
convention is an event in which meetings are combined with exhibitions.

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SORSOGON STATE UNIVERSITY | TPC 4 – MEETINGS, INCENTIVES, CONFERENCES, AND EVENTS MANAGEMNENT CHAPTER 1

The MICE industry is an exciting and profitable segment of the tourism and
hospitality industry. A major source of revenue for the tourism and hospitality
industry comes from the meetings, conventions, and exhibitions segment of the
industry.

There are four major components of the MICE industry. These are the
planners, host facilities, services, and exhibitors. Planners are individuals or groups
that plan meetings, conventions, and exhibitions. Planners are classified into corporate
meeting planners, association meeting planners, and independent meeting planners.
Host facilities provide lodging, meeting rooms, food and beverage, and other services
for groups attending meetings, conventions, and exhibitions. Services refer to
individuals and organizations that provide support for meetings, conventions, and
exhibitions.

In ancient times, archeologists have found ruins that served as places where
primitive people gather to discuss common interests. Each village had its own common
gathering place. Later, cities became the meeting places for people who wanted to
discuss common problems. Trade associations, professional, fraternal, and religious
organizations were established to discuss relevant issues. In the United States, these
associations were organized in the mid-1800s. In the Philippines, Manila opened the
PICC to the International Monetary Fund/World Bank meeting in 1976. Since then,
Manila has been known as the Convention City of the Philippines.

The growth of the MICE industry has been due to the following factors:
meeting planner’s associations, the airline industry, the lodging industry, convention
centers, conference centers, meeting technology, and ground handlers. The MICE
industry is one of the fastest-growing segments of the tourism and hospitality
industry. Conventions and exhibitions generate a considerable amount of revenue
within the tourism and hospitality industry. Hence, most cities have visitors and
convention centers that are designed to entice meetings, conventions, and exhibitions.

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SORSOGON STATE UNIVERSITY | TPC 4 – MEETINGS, INCENTIVES, CONFERENCES, AND EVENTS MANAGEMNENT CHAPTER 1

V. Reference

Lansangan-Cruz, Z. (2020, January 1). INTRODUCTION TO MEETINGS,

INCENTIVES, CONFERENCES AND EVENTS MANAGEMENT (MICE).

In-Text Citation: (Lansangan-Cruz, 2020)