US downgrade to affect PHL bid of becoming a MICE hub

CEBU, Philippines - The recent credit rating downgrade imposed by Standard & Poor’s Ratings Services on the United States may affect the Philippines’ bid of becoming one of the preferred destinations for MICE (Meetings, Incentives, Conferences, Exhibits) market around the world.

Foreign expert Bill LaViolette, managing director for I&MI Media publications in France, said that US’ downfall in the credit rating may create problem in the incentive market, as the United States is one of the largest outbound markets for incentive travels.

“Companies try to pull-back money. Although some companies continue to motivate their employees in order to battle the competition—and the greatest motivator is travel,” he said.

However, he said while slight effect will be expected in incentive travel, meetings, and exhibitions, negative effects of travel re-routing, less attendees of executives to corporate meetings, and companies’ hesitation to participate international exhibition, would be interim.

He mentioned, that even in the 9/11 crisis, while the incentive travel was affected, it recovered in just 12 months.

Foreign experts on the other hand, believe that the Philippines, specifically Cebu has a huge potential to take part of the US$52 billion MICE market in the world.

Cebu, is now the host of the 2nd MICE Conference which will open today at the Cebu International Convention Center (CICC), organized by the Department of Tourism (DOT) through its marketing arm, the Tourism Promotions Board in partnership with the Cebu province, the Philippine Association of Convention/Exhibition Organizers and Suppliers, the Hotel Resort and Restaurant Association of Cebu (HRRAC), and the Meetings, Incentive Travel, Events/Exhibitions (MITE) Philippines Inc.

According to Corbin Ball, owner Corbin Ball Associates, USA the largest employers that are actively sending their employees for incentive travels are in America. While the MICE market is now considering Europe as number destination for these events, the Philippines can get larger chunk of the market, if promotions and relationship building with employers and buyers will be taken into serious consideration.

Vienna in Germany is now the hottest destination for MICE marketing, followed by Barcelona. Philippines’ warmth and amazing hospitality could be on the advantages that could make the country a top choice of the multi-billion-dollar market.

But, these foreign experts warned that aside from promotion and building relationship with front liners in the world’s MICE market, the country also has to work hard in establishing good infrastructure.

While US is still struggling, deViolette said the Philippines should start to consider China, as it is one of the fastest growing outbound market for MICE.

MICE travelers are known as the most lucrative tourists, particularly the incentive travelers as they spend four times than a normal tourist.

This year’s MICE Con expects over 400 delegates from all over the world, including buyers and vendors from Vietnam, Singapore, Taiwan, India, China, Thailand, among others.

Carrying the theme, “I Share, You Connect, We Change,” foreign experts will discuss or tackle issues and trends in the MICE market in the world, including the role of “social networking” and technology—how these developments changes rules and preference of the market. (FREEMAN)