Potential of MICE in Nepali Tourism

A survey conducted by Conference and Incentive Travel Agency (CIT) puts Nepal in the second position behind Vietnam as an emerging destination for incentive markets, thus showing potential of MICE in Nepal's tourism. Yogendra Sakya, President of NICA, explains the current situation in Nepal on this newly emerging business Tourism is believed to have overtaken oil business in terms of sales volume globally. More and more entrepreneurs in Nepal are entering this field. And this is in spite of the fact that all the existing hotels are complaining of low occupancy. This clearly indicates that the entrepreneurs have seen the potentials in this sector. MICE tourism offers one of such potentials. Though we do not have the exact data about contribution of MICE (Meetings, Incentive holidays, Conventions and Exhibitions) tourism in the overall revenue from Nepal’s tourism, we can estimate that 11% of the tourists coming to Nepal are for MICE. This estimate is made from the following data available with the then Department of Tourism and now Nepal Tourism Board. In 1998, a total of 463,684 visitors came to Nepal, out of which 112,644 (24%) were for Trekking, Mountaineering, Rafting, Jungle Safari and the like. Of the rest, 52,258 (11%) were for Business, Official and Conference purposes. It is safe to conclude that the latter category tourists were for MICE tourism. But what is more interesting is that, as experts in the travel industry claim, the revenue from this 11% is almost equal to the revenue from the 24% that belong to the category of Adventure Tourists. Hence if Adventure Tourism is the bread and butter of Nepal’s tourism industry, MICE Tourism could be the handsome cheese topping! The figure is also a reflection of the fact that Nepal’s tourism marketing is traditionally mistargeted. Our marketing so far has been such that tourism here has become a seasonal business, that is, the period between October and April is projected as ideal for visiting Nepal. But, also the period between May and September is not bad. We have to offer some alternative products. Searching such products, we the people in tourism industry have found MICE very promising. To see that this form of tourism takes off in an organized manner, an association called Nepal Incentive and Convention Association (NICA) has been formed. But MICE Tourism is not Nepal’s discovery. Therefore, many countries, and probably every one of them, are focussing on this potential segment of tourism; but because Nepal does have an exotic, intriguing, mystic and beautiful climate, and has peaceful connotation in the outside world, we do stand a good chance of winning the bids for MICE. But lots of questions will be asked by the organizers or the hosts before deciding on the venue. For example, the hosts would like to find out how easy it is to transport/air in and out the delegates and goods to and from the venue country. Nepal would need charter or non-schedule flights. The national and international carriers have agreed to help if six months notice is given for international flights and three months for flights from India. Next question would be about how rigid the frontier formalities, immigration and customs rules are. Visa is no problem. Ministry of Finance is also working out an easy process for temporary imports, and a very favorable attitude to imports for MICE use. About the venue and equipment hire for the event, Kathmandu has Birendra International Convention Center (BICC) and Royal Nepal Academy. And most hotels now are having, or are building, halls for big or medium conferences. Even Pokhara is gearing up to be a venue for middle size (upto 500 persons) MICE events. Many resort destinations like Nagarkot, Dhulikhel, Godavari etc. do have facilities for smaller meetings. As far as equipment hire building exhibition stalls etc. we have to encourage local entrepreneurs. However, BICC hall, though good for meetings and inaugural event, is a little lacking for conferences, because sub-rooms for group discussions, catering and dining facilities there are not enough. It also lacks covered halls for exhibitional events. At present, the hotels fit for small meetings, theme parties etc. So, I think BICC needs some additional investment. The host may ask: "What about Hotels, Travel Agents, PCOs (Professional Conference Organizers)? My answer is: "No problem. In fact too many!" Moreover, NICA is trying to encourage PCOs to become more efficient. Next question: What about the climate, the pre and post conference tours, special spouse programmes, shopping and entertainment after the hard day workshop? Again my answer is: "Fantastic!" Except for entertainment. To care for the latter we will have to encourage local entrepreneurs to come up with night food and shopping markets, good cinema halls etc. NICA's role in promoting MICE Lobby with the government and private sector to enhance facilities for MICE tourism - such as immigration, customs etc. Organize and co-ordinate to take part in MICE promotion fairs such as EIBTM etc. Join hands with RNAC and the online international airlines in organizing sales calls to corporate house abroad. NICA is co-ordinating such sales calls with RNAC in Bangalore and in South India (because RNAC is planning to add Bangalore in its destinations) and with Qatar Air in the U.K. market. NICA will be approaching other airlines for similar promotion programms, Mobilizing Nepali professionals and their organizations by taking the entire burden of bidding, partial funding for the bidding, and co-ordinating and organizing the event on behalf of the hosts. Importance of MICE in Nepal's Tourism MICE has no seasonality bottleneck MICE brings high-yield tourists MICE consists 30% of 5 star hotel's total business volume and more investments are being made to add halls and facilities for MICE in the hotels. MICE tourism is detrimental for the survival of the BICC