JP/DON

There were 1.1 billion trips made worldwide, of which 154 million, 14 percent, were business trips in 2014, according to data from the World Tourism Organization (UNWTO).

Furthermore, approximately 83.16 million or 54 percent of the travels were related to meetings, incentive, conventions and exhibition (MICE) events.

Meanwhile, another organization, the World Travel Monitor, indicated that the number of MICE travels across the world had increased by 6 percent to 94 million travels in 2015 from 88.1 million in 2014. The incentive sector tops the list of growth with 61 percent, followed by the convention sector with 44 percent.

South Korea, Hong Kong and Indonesia are the three main incentive travel destinations in Asia. While, Bali is the number one incentive tourist destination in the world.

In light of the trend, the MICE industry in Indonesia is growing at a rapid pace, bringing about a multiplier effect on the nation’s economy.

The Passenger Exit Survey, conducted by the Tourism Ministry in 2013, for example, cited that 25 percent of international tourists who visited Indonesia that year attended MICE events in the country. The same survey also revealed that tourists joining MICE events spent an average US$ 2,200 per visit, twice as much spent by tourists who travel for leisure purposes only.

In 2013 alone, at least 282,000 people attended MICE events nationwide, generating Rp 19.9 trillion and 262,000 new job opportunities.

The rapid development of the MICE industry in Indonesia has the potential to increase the number of inbound tourists, which in turn can impact the country’s macroeconomic growth. With this potential, the development needs to be supported by adequate infrastructure construction and destination management organization to groom potential sites to be the centers of Indonesia’s MICE industry.

To boost its reputation as a MICE destination, however, Indonesia needs to strengthen a number of supporting systems, including accommodation facilities, safety and security, human resources as well as brand identity.

At present, the government is seeking to increase the number of travels in Indonesia by 1.9 percent to 260 million in 2016, from 255 million recorded last year.

Inaceb

The government said earlier it established recently a new bureau within the Tourism Ministry to help MICE industry in the country to flourish and eventually attract more visitors.

The new bureau, officially called the Indonesia Convention and Exhibition Bureau (Inaceb), will help the ministry promote up to 16 cities across the country to become international-level MICE destinations.

Inaceb will also have a role in integrating all related MICE players to compete globally by uniting them through association partnerships.

Inaceb chairman Budi Tirtawisata said the body will mostly focus on developing and improving three things, namely a proper database of possible MICE destinations in Indonesia, promotional efforts and bidding on international MICE events.

“As of our formation, we have already outlined our plans for the next five years, but in a nutshell we will focus on those three aspects in order to help boost the Indonesian MICE industry on a global scale,”€ Budi told reporters.

“We would also want to improve the capabilities of some cities here to help meet the MICE standards.”€

At present, there are only five regions in Indonesia that have suitable infrastructure to host international-level MICE events, namely Jakarta, Bali, Surabaya, Bandung and Yogyakarta.

“We also want to know how we can work together with many other cities to develop MICE facilities. Inaceb is based in Jakarta, but we would have dispatch offices in about 19 other cities,” Budi said.

Earlier, Budi said the average MICE visitor would spend up to US$2,000 over the course of three to four days. This is because of a tendency for business travelers to spend more than leisure travelers, he added.

Meanwhile, Tourism Minister Arief Yahya said the ministry has invested up to $10 million in Inaceb. While acknowledging that the funds are not relatively massive, Arief said he wants to use every cent of that investment to achieve the fullest result.

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