MICE taking Indian tourism to new highs
Domestic tourism together with inbound tourism has emerged as a key driver of economic growth. Last year India recorded Foreign Tourist Arrivals (FTAs) of 6.19 million (provisional) with a growth of 305.4% over the corresponding period of the previous year which account for Foreign Exchange Earnings (FEEs) of Rs. 1,35,543 crore (provisional estimates) with a growth of 106.77%. As per official data, there were 677.63 million Domestic Tourist Visits (DTVs) all over the country in 2021. MICE tourism is growing continuously with noticeable increase in ‘Meetings, incentives, conferences and exhibitions’ (MICE) facilities. There has been 15 to 20% of annual growth in the inbound MICE segment with an estimated Rs. 8500 crore annually. India ranks 31st in the global meeting market according to ICCA (International Congress and Convention Association). The Union Government has set India an ambitious two per cent target of the global MICE market share by 2025. It is currently at an insignificant 0.5%. Delhi, Chennai, Bangalore and Hyderabad are among the cities that have hosted major events.
According to panelists, a conference traveller, on an average, spends $ 1511 a day during a four-day stay compared to $600 spent by an inbound leisure traveller staying for the same duration. According to industry estimates, the global MICE market supports four lakh conferences and exhibitions worldwide, making it a $280-300 billion market annually. The country’s diverse culture and geography is adding to the incentive travel business in India making it one of the emerging destinations in that category. India is also being targeted by other nations for its contribution in their country’s market share. MICE tourism is one of the fastest segments of outbound travel from India. The revival began almost as soon as travel restrictions were eased and regular international flights were allowed into India from March 27, 2022. Reportedly, MICE could account for well over a third of the total outbound travel from India and its share may have been even higher in the year gone by as group travel, another big segment, is yet to take-off. If you look at MICE as a whole, the business has become big here. Though air fares are high, you get better hotels and better experiences, so MICE is booming, says an expert.
Tourism is one of the fastest growing economic sectors with a significant impact on employment and accelerating regional development with a multiplying effect on the activity of related sectors. Among economically advanced states, domestic tourism has become a springboard to the sector’s development. It can generate resources for conservation of cultural and natural heritage and has huge potential to make a positive contribution to sustainable development goals. As per the third Tourism Satellite Account (TSA), the study conducted by the Ministry of Tourism, estimated the share of tourism jobs in India during 2020-21 at 12.91%. Facilitative visa regime is a prerequisite for increasing inbound tourism. A coordinated effort by the ministries of Tourism, Home Affairs and External Affairs will work wonders on this front.
