In India, the festive season brings with it a flurry of activity in the hospitality industry. Hotels are bustling, airfares are soaring, and the tourism sector is in high gear. It’s a time when businesses expect to rake in profits, compensating for the slower months when travel is less frequent. However, what if there was a way to sustain the travel and tourism industry throughout the year?
Enter the government’s ambitious plan to bolster tourism through the MICE program, which stands for Meetings, Incentives, Conferences, and Exhibitions or Events. Currently, India holds less than a 1% share in the global MICE business, which was valued at over $900 billion in 2019. Recent events, like the G20 summit and the upcoming ICC Men’s Cricket World Cup, have demonstrated the positive impact of business travel on India’s economy.
For instance, Delhi experienced a 40% higher travel demand than usual during these events, with international flight arrivals for business purposes increasing by a staggering 63%. Even companies like Thomas Cook (India) witnessed remarkable Y-o-Y growth of 289% in their MICE business in the first half of 2023. India now aspires to double its share in the global MICE business to 2% within the next five years.
However, there are challenges to overcome. In 2019, India ranked 28th in the world for the number of meetings held, while the US topped the list with over 900 meetings. In 2022, India dropped to 37th place. To achieve its goal of being in the top 20 by 2027, India must address two key issues: infrastructure and regulatory processes.
To attract more meetings and events, India needs international-standard hotels and venues. This requires substantial investments in land, permits, licenses, and amenities. Currently, only hotel projects costing over ₹200 crores receive “infrastructure status” from the government, enabling them to borrow at favourable interest rates. Extending this status to more projects could stimulate MICE infrastructure development and boost the tourism industry.
Moreover, large convention centres and meeting halls capable of accommodating 7,000 to 10,000 people are essential. The government has already granted infrastructure status to such projects meeting specific floor area requirements, leading to notable successes like the Bharat Mandapam and Yashobhoomi Convention Canter.
Exhibitions also play a vital role in India’s MICE ambitions. The Indian exhibition industry has seen rapid growth, generating ₹3 lakh crores annually, creating jobs, promoting ‘Made in India’ products, and benefiting businesses like event management companies and caterers.
To further support the MICE sector, the government plans to streamline regulatory processes. This includes providing simple single-window clearances for events and reimbursing bid costs for those securing global event tenders.
In summary, India’s MICE tourism holds great promise for year-round economic growth. By investing in infrastructure, promoting exhibitions, and improving regulatory processes, India aims to secure its place on the global MICE stage. With the right strategy and government support, India’s hospitality, tourism, and business sectors could flourish, benefiting both the economy and travelers.
