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12 Keywords for the Change in Meetings Industry Trend 9. The Economic Impact Studies

Today, we are witnessing speedy development of new technologies such as mobile, social media, and virtual reality, and an outpouring variety of social issues such as economic depression and environmental questions. Under such circumstances, meetings industry people, who should lead the change, need to smartly cope with trends in the world with their brilliant insight into the world affairs. In this light, we have identified twelve major trends that reflect latest changes in the global meetings industry. Ninth keyword is the economic impact studies.

9. The Economic Impact Studies

Recognition of the Economic Effect of MICE Industry Needs to be Enhanced

While MICE industry is registering a continuous growth worldwide and contributing to the development of national economy in many respects, the fact is that no extensive publicity is given to the various contributions and positive effects made by MICE industry such as spillover effects on regional economies and the development of related industries. In fact, at the time of the 2008 US financial crisis, MICE events held or joined by the corporate beneficiaries of the Troubled Asset Relief Program were smeared as moral hazards, thus putting the entire MICE industry on the griddle. In consequence, with events cancelled in response to the negative public opinion, the MICE industry organizations and associations suffered a severe setback. Currently, the MICE industry, which is maturing, perceives the dire need to the upgrade the governmental and public understanding of MICE industry. And for this, research on its economic effects is being conducted in advanced countries for MICE to bring publicity to the economic effects of the industry.

UNWTO Discloses in 2006 its Recommended Method for Analyzing Economic Effect of MICE Industry

Before 2006, quantitative studies on the economic spillover effects of the MICE industry were conducted in a very limited way, while a comparative study on data on different nations was impossible due to the absence of a unified worldwide research standard. It was just for a bit over 10 tears that a quantitative analytical tool was prepared for analyzing the spillover effect of the tourism industry. Before 2001 when Tourism Satellite Account (TSA) was established, both the industry’s people and academic researchers simply guessed the economic spillover effects of the tourism industry. TSA was created with minimum 10 years of research and strenuous efforts, and five years later in November 2006, in cooperation with World Tourism Organization (UNWTO), MICE Professionals International (MPI), Reed Travel Exhibitions, and International Congress and Convention Association (ICCA), a quantitative method was presented for analyzing the economic effect of the MICE industry.

[Case 1] ‘Canadian MICE Industry Status Report’

“2006 Canadian MICE Industry Status Report”, which was conducted jointly by Maritz Research Canada and Conference Board of Canada, was the first project for analyzing the economic effect that was conducted for the Canadian MICE industry. The project was also the first research report that applied the method for analyzing the economic effect of the MICE industry, which was published in late 2006 by UNWTO, working with MPI, Reed Travel Exhibitions, and ICCA).

[Case 2] ‘Analytical Report on the Economic Contribution of the US MICE Industry (2009)’

The US objectively measured the economic contribution of the MICE industry by applying the research method recommended by UNWTO, as Canada did. The project for analyzing the economic effect was supervised by the Convention Industry Council (CIC), which formed a task force designed to analyze the economic effect of the US MICE industry. And CIC entrusted PricewaterhouseCoopers LLC (PwC) with a research project. For an efficient implementation of the 2009 project, the industry’s research institutions from ASAE, DMAI, Tourist Destinations & Travel Foundation, MPI, PCMA, and USTA formed the Economic Significance Study Research Task Force (RTF) to conduct the research in cooperaton with PwC.

The above project was the first quantitative study in the US, designed to analyze the economic significance and contribution of the MICE industry. The purpose of the study is to analyze the economic contribution of the MICE industry, which means the weight and importance of the MICE industry in the entire US economy, instead of ‘the economic effect’ which refers to the change in the economy caused by the influence that a specific event has on the MICE industry.

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