The growing importance of MICE in tourism
Print Edition
THE MICE (meetings, incentives, conferences and exhibitions) industry is considered a big part of Hangzhou’s tourism sector. According to hotel industry insiders, the per capita consumption of domestic meeting participants reached 2,000 yuan (US$308) in 2014, while the figure for foreign guests was 4,000 yuan.
Though meeting participants only constituted 18 percent of the total number of tourists, they contributed 32 percent of annual tourism revenue. Therefore, hosting events is considered a highly effective way to augment the city’s tourism income.
Official statistics show that there were 11,662 conferences held in the city in 2014, up 9.78 percent from the previous year. There were 290 exhibitions held in nine professional exhibition halls, a 30.04 percent increase over the previous year.
More than 300 companies are involved in the MICE industry.
In addition to increasing revenue for restaurants and hotels, holding professional conferences could also boost the development of specific industries. For example, the International E-commerce Forum boosted the city’s e-commerce industry, while the Hedge Fund Summit helped attract investment.
According to the International Congress and Convention Association, Hangzhou’s conference industry is ranked third among Chinese mainland cities after Beijing and Shanghai.
However, there is still a gap between Hangzhou and Beijing/Shanghai.
Every year, Hangzhou hosts around 20 international conventions, while the two others each hold around 100.
The city still has a way to go in establishing the groundwork for the development of an international MICE industry.
Most meetings have to be held in hotel conference rooms and only a few can accommodate 1,000 or more people, and they are unable to meet multiple demands such as simultaneously holding banquets and group discussions.
Many industry insiders have suggested building a large meeting center with a capacity of 3,000 to 4,000 in Qianjiang New Town.
According to municipal planning officials, Hangzhou International Expo Center, which covers an area of 840,000 square meters, will be operational by the end of 2016. The exhibition area covers 150,000 square meters, accommodating 7,500 booths, and the conference center has 29,000 square meters of space that could be used to host large-scale international conventions such as the G20 summit and APEC.
In the meantime, the city needs a convenient transfer system between railway stations, subways and airports, more international flights and correct bilingual public signs. At present, Xiaoshan International Airport only serves 22 international airlines, much fewer than Beijing and Shanghai, according to industry insiders.
This is why improving competitiveness is at the core of the city’s 13th five-year plan.
In the future, Hangzhou plans to attract more Western tourists by launching guesthouse-oriented travel routes and improving its tourism information service.
The government expects to develop Hangzhou into China’s model international tourist city by the end of 2020. Its tourism revenue is expected to reach 300 billion yuan when the number of foreign tourists reaches 4 million by 2017.
According to the five-year plan, improving the international public service system will give a major boost to the tourism and leisure industry.
More international flights are expected to be operating and a passenger distribution center is planned for nearby Hangzhou East Railway Station. The ecological environment along the Qiantang, Xin’an and Fuchun rivers will be improved and a tourism trail along the Fuchun and Xin’an rivers is planned.
“The internalization of the tourism industry could reflect a city’s competitive power,” said Li Hong, director of Hangzhou Tourism Commission. “The G20 summit and Asian Games provide the city with an unparalleled chance to build an international image.”
Though Hangzhou was No. 16 on the New York Times’s “52 Places to Go in 2016” list, the local government still only promotes traditional attractions. “Stylish cafes found favor with guests along with pian’er chuan noodles; the Wushan night fair is popular with visitors along with Wulin Women Apparel Street; family-run guesthouses are booming with five-star hotels. When showcasing the city’s antique elements, people forget that the modern parts are more attractive to tourists,” said Zhang Chunxia, member of Hangzhou Committee of Chinese People’s Political Consultative Conference.
Zhang hopes that government departments will promote more of the city’s modern elements and integrate the old with the new.
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