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Economic and Strategic Value of MICE industry in Australia and Future Strategies

The Association of Australian Convention Bureaux Inc. (AACB) organized by 15 local convention bureaux in Australia published ‘Australia’s International Business Events Sector: the Economic and Strategic Value Proposition’ with Deloitte Access Economics, an economic research institute in Australia. This report analyzes the economic impacts of the MICE industry on the Australian economy and sorts out issues that the industry and the governments need to focus on in order to maximize the economic value. This report is significant as it examines the present and predicts the future of the Australian MICE industry. Its significance also lies in the fact that local convention bureaux, which are competitors to one another, have cooperated and shared their common concerns from a long-term perspective. This journal is to examine the current status of the Australian MICE industry and the future strategies that AACB has diagnosed.

Today in the Australian MICE Industry: Visible or Invisible Economic Effects

The Objective Evidence to Prove the Australian MICE Industry as a Higher Value-added Business

The MICE industry in Australia is drawing attention as a highly value-added business just like the one in Korea. Among those who visit Australia, people whose purpose of visit is to attend MICE events spend a lot of money, and the amount is greatly increasing. The following figures directly support this.

Fact 1. “One in five dollars spent by international visitors in Australia is spent by an international visitor attending some form of business event.”
Fact 2. “Expenditure by international business events delegates generated an estimated $2.2 billion in GDP and 22,500 jobs in 2012.”
Fact 3. “International business events delegates spend, on average, 21% more than other international visitors over the course of their trip ? and 77% more per day.” To be specific, while general international visitors spend $2,456 per trip and $84 per day, visitors to international business events spend $2,960 per trip and $149 per day.
Fact 4. “Days by international business events delegates have grown at twice the pace of overall visitations over the last four years, while expenditure has grown nearly five times as faster.”

Like other countries, AACB has played an important role in obtaining such results in the MICE industry. They work to provide security and facilitation in international business events, while marketing a city/region/country as a high-quality destination for such events. The number of international visitors attracted to business events by AACB accounts for a substantial part of the total number of attendees in all MICE events. International events directly secured by AACB in the fiscal year 2014 contributed about $241 million to Australia’s GDP and created 2,460 jobs.

BTB (Beyond Tourism Benefits) – Invisible Economic Effects

In addition to these objective and visible figures of economic impacts ? as shown above – that international business events generate, there are immeasurable/unquantifiable/subsidiary economic effects. For instance, the effect of elements such as the creation of knowledge, and the exchange of information, innovation, and investment cannot be concretely quantified, but these elements do have a positive effect on the Australian economy. Deloitte Access Economics labels such unquantifiable economic effects as BTBs (Beyond Tourism Benefits, benefits beyond quantification).

Future of Australian MICE Business: Goal Setting in Cooperation with Convention Bureaux, Industry, and Government

There is a diverse range of efforts and policies being made in the MICE industry, in cooperation with convention bureaus, the industry and the government. In this regard, AACB is also adjusting its overall trajectory and major activities to the future targets that the industry pays attention to. The best example is ‘Tourism 2020’, strategies of Australia’s business and political leaders. With reference to Tourism 2020, AACB examined priorities of governments and businesses and came up with according strategies.

The Australian government has set a goal to increase the spending of overseas visitors and domestic visitors staying in Australia by $115 billion up to $140 billion by 2020. To this day, they strive to expand the market share in the key markets which constantly attract lots of visitors and improve the quality and productivity of the industry. Besides, the Australian government and the convention industry work toward targets of Tourism 2020 by making efforts to reinforce manpower, expand accommodations, and increase the number of domestic/overseas flights. In Tourism 2020, six strategic areas are suggested to achieve that goal.

1. Utilize the increase of Asian tourists actively.
2. Build competitive digital capability
3. Reform investment regulations
4. Expand the tourism transportation environment support.
5. Prepare a policy of increasing the supply of labor and participants skilled in tourism.
6. Build industry resilience, productivity, and quality

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