They pointed out that regional destinations like South Korea, Singapore and Thailand provide incentives to MICE organizers, including subsidies for entertainment and airfare costs, as well as cash allowances.
“That's why we're losing to (these) neighboring countries in terms of bringing Mice business,” said Josef Victor Chiongbian, general manager of Savoy Hotel Newtown Mactan, during the forum, “Biz Talks” organized by The Freeman on Aug. 19.
“That's (incentives) a big help for the organizers. That's why they bring their event to these countries,” said Chiongbian, also a trustee of the Hotel, Resort and Restaurant Association of Cebu Inc. (HRRAC) which has about 120 members.
Hosting MICE events is a significant economic driver since it generates activity across a broad range of interconnected industries and businesses, said HRRA president Mia Singson-Leon, who is also the general manager of Crimson Resort & Spa Mactan.
“It provides benefits not only to the hotels but also to the transport services, tour guides, retailers, even airlines,” she said in the same forum.
She added that the economic benefits extend even to farmers who supply food to restaurants, as well as businesses that provide hotels with linens, toiletries and other essential supplies.
Part of history
MICE has the potential to generate sustained business for a destination, as cities that successfully host major international conferences and conventions can build a strong track record, enhance their reputation and increase their chances of attracting repeat events and other large-scale gatherings.
“Historically, if a city hosts a big or international MICE conference, it repeats, meaning to say you'll be part of the history that hosted this specific event. For example, the recently concluded ASEAN Summit. That's so huge for us, for Cebu, to host this,” said Waterfront Cebu City Hotel & Casino general manager Ali Banting.
The emergence of new infrastructure projects and facilities in Cebu makes the province attractive to MICE business, said Seda Hotels Cebu cluster general manager and HRRAC trustee Aaron Manalang.
These include a world-class international airport which offers direct international connections, the Mactan Expo in Lapu-Lapu City, SM Seaside Cebu Arena and soon-to-open SMX Convention Center. Some hotels such as Waterfront Cebu City Hotel & Casino, have their own facilities for hosting MICE events.
Manalang said attracting a larger share of MICE business to Cebu would create opportunities not only for hotels but also for businesses across the tourism and hospitality value chain.
Losing opportunities
But Cebu is losing out to some regional competitors, such as Vietnam, Thailand and Singapore, which offer incentive programs to attract organizers of major MICE events.
Chiongbian said individual hotels already offer their own incentives to organizers who bring MICE events to their properties. However, he said Cebu would be in a stronger position to compete if the government provided similar support.
“We have brought this up several times and we will not stop asking them,” said Chiongbian.
He admitted that it was disheartening to hear that tourism was not mentioned during the recent State of the Nation Address (SONA) of President Ferdinand Marcos Jr.
While tourism does not yet appear to be a government priority, Chiongbian said industry groups such as HRRAC and the MICE Alliance, a two-year-old organization focused on attracting MICE business to Cebu, would have to make their voices heard.
HRRAC and other industry groups have repeatedly called on the government to provide incentives for the MICE sector, but a comprehensive national program has yet to be established.
Banting proposed that the government and private sector work together to craft an incentive program, acknowledging that developing such a policy would not be an easy undertaking.
Singson-Leon agreed, saying the policy might even need legislation since it required allocation of public funds.
Competitiveness
Banting said promoting Cebu could help draw visitors, but the bigger challenge was ensuring they had an experience that would encourage them to return and recommend the destination to others.
“Marketing can bring in the travelers here, but what will happen after? Would they (tourists) come back because we wanted a repeat business. Aside from repeat business, would they (tourists) recommend it?” Banting said.
To make Cebu competitive, the government must improve its infrastructure, ensure the safety of visitors and bring in more MICE events here, said Manalang.
“Domestic and regional travelers would come to Cebu and patronize our product.,” he added.
Singson, however, acknowledged that Cebu was not yet equipped to accommodate as many as 20,000 delegates for a single MICE event, citing the need for additional hotel capacity.
At the same time, investors may be hesitant to build more hotels while occupancy rates remain low.
At present, Cebu hotels have an average occupancy rate of about 50 percent, with demand particularly weak in the second quarter as higher fuel costs stemming from the conflict in the Middle East dampened travel.
While industry players consider a 50-percent occupancy rate “good enough” amid the global slowdown in travel, hotels with MICE facilities, such as Waterfront Cebu City Hotel & Casino, are banking on more conventions and other large-scale events to boost room bookings.
“So the lesser convention, the harder it is for me to fill the inventory of rooms,” Banting said. —Ed: Corrie S. Narisma
Contributor
