Ministry of Tourism Prioritizing the Domestic MICE Industry for the New Normal

JAKARTA (BPN) – The Ministry of Tourism and Creative Economy/Tourism and Creative Economy Agency (Kemenparekraf/Baparekraf) will be prioritizing the domestic Meeting, Incentive, Convention and Exhibition (MICE) industry as a strategy to increase the industry for the “new normal” post-COVID-19 pandemic, by conducting activities which are a combination of online and offline events.

Rizki Handayani, the Deputy for Events for the Ministry of Tourism and Creative Economy, on Wednesday, stated that the MICE industry has an essential role in the GDP growth of the country.

The data from the Event Industry Council in 2018 stated that the MICE industry in Indonesia generated a GDP growth of USD 7.4 billion in 2017, and created 278,000 jobs.

“MICE tourists have a higher average of stay and ASPA (Average Spending per Arrival) compared to leisure tourists. MICE tourists have an average of spending of USD 2,000 per day with an average stay of 5 days,” according to Rizki Handayani as quoted from the ministry’s press release.

However, since the COVID-19 pandemic, the situation has changed due to the pandemic’s effects on the MICE industry. The pandemic significantly affected the convening of international meetings, through cancelation, delays, change of venues, etc.  The Asia Pacific is recorded as the most affected region.

The Data International Congress and Convention Association (ICCA) stated that as of 6 April 2020, there has been a 48 percent adjustment on the convening of meetings or 1,749 international meetings, which were scheduled to be held from February to June 2020.

Meanwhile, in Indonesia, the data from IVENDO stated that there has been a 96.4 percent of delayed meetings and 84.8 percent of event cancelation across 17 provinces. The estimated loss for 1,218 organizers in Indonesia is estimated to be between IDR 2,7 Trillion to IDR 6,9 Trillion and has affected a total of 90,000 workers.

“The COVID-19 pandemic affected 90 percent of cancelation and delays of events until the end of 2020,” as stated by Rizki Handayani.

In this regard, in moving forward, as part of the government effort to tackle the spread of COVID-19, it is hoped that the industry could prepare and anticipate the changes that will occur in the convening of MICE. The pandemic has truly created a change of behavior within the public, which will be more focused on cleanliness, security, and comfort factors.

More importantly, there has also been a technological disruption, in which digital technology acceleration and faster spread of information has occurred. As such, it is expected that there will be a shift from offline to online or a combination of online and offline activities.

The existence of the disruption factor would make online and offline events to support one another. Virtual events will expand the potential for a bigger audience and would create a new revenue stream.

“The increase of online meetings and technological developments has made virtual events as the “new normal.” As stated by Rizki.

According to Rizki Handayani, will ensure that the strategy to restore the MICE sector would involve the relevant industry.

Apart from designing protocols on the convening of MICE activities post the pandemic, which will be directed to sustainability trends and risk management procedures, health and safety procedures, the Ministry will also urge for the development of industrial capabilities, technological network infrastructure, and new innovation.

“We will be pushing for the domestic market first so that they can resume the operation of MICE events. We will also be pushing for more government and corporate meetings to be held in the country, as stated by Rizki Handayani.

However, she also stressed that the implementation of activities/events in the destinations would also consider the readiness of the region.

The Ministry has drafted a protocol for the “new normal” in tourism, which would be implemented in the regions that are classified as ready for operations.

“The implementation of these stages must be monitored very closely with disciplined and consider the readiness of each region as well as the role of local government in the monitoring and evaluation,” as stated by Rizki.