MICE TOURISM IN VIETNAM

Trang Q. Nguyen Vietnam National Administration of Tourism

Hangzhou , October 2012

Potentials for MICE tourism development in Vietnam

• Be one of the ASEAN’s fastest growing economies. The world’s sixth highest growth rate over the next ten years (ranked by WTTC). 10 world’s best travel destinations and in tenth place as the most improved country brand (by Future Brand).

• Distinctive culture, exotic natural beauty, biodiversity, many World Heritages sites and over 3,200km of pristine coastline surprises even for jaded business travelers.

• Stable political system. Increasingly attractive to foreign investors.

• World-class facilities and infrastructure at major business centers. The chains of luxury hotels developed. Major hotels equipped with state-of-the-art facilities to cater for most of types of MICE. New hotels, exhibition halls and convention centers being planned or constructed. Some resorts equipped to handle meeting and incentive groups (providing opportunities for sightseeing and team-building events).

• The country’s accessibility getting easier. Transportation infrastructure considerably upgraded in last few years.

• New and fast-emerging MICE destination in the region.

The National Conference Center (NCC) in Hanoi

Saigon Exhibition and Convention Center (SECC) in HCMC

Hotels and resorts 5-star: 53 4-star: 138

Source: VNAT (2011)

Major venues for international MICE

in Vietnam

Exhibition/

Convention

centers

No of 4 and 5

star

hotels/resorts

Airport

Hanoi NCC, Giang Vo,

Cultural Friendship

Palace

22

Noi Bai

Ho Chi Minh

City

SECC, HIECC, Tan

Binh International

Convention Center,

Phu Tho race-course

29

Tan Son Nhat

Da Nang 10 Da Nang

Hue 14 Phu Bai

Nha Trang 11 Cam Ranh

Phu Quoc

Island

01 (and 02

three-star

hotels)

Phu Quoc

Tourism Products

Main products - Coast - Eco-tourism - Culture

Supporting products

- MICE

- Urban

- Education

- Sports

- Health, Wellness & Spa

- Cruise

Policy

- MICE identified as one of “supporting products” aiming at product diversification in the product development strategy in the Vietnam Tourism Strategic Plan until 2015. - Strategic directions: “Developing MICE tourism products in some major cities nationwide. Building some regional-standard tourism and business centers. Prove the country’s ability to host international MICE events . And building brand for some selected cities as MICE destinations”

Structure

Government

MCST (VNAT)

Dept. of Tourism

Mktg

Provincial People’s

Committees

Provincial Dept. of

CST

Governmental bodies’

responsibility

in MICE tourism

development

in Vietnam:

• MCST (VNAT) – at the

national level

• Provincial People’s

Committees – at the

provincial level

Structure (cont.)

What have been done? • MCST (VNAT) – at the national level -Formulate the Master Plan for Vietnam Tourism Development until 2015 -, including MICE tourism development. Provide strategic directions in investment projects in the industry infrastructure, improvement of product and service quality, promotion, training, cooperation between the public-private sector, among the concerned governmental agencies... - Incorporate MICE in products offered in promotional activities/events oversea, in promotional materials, video films, advertisements, TVC, FAM/press-trips etc... - Seminars/workshops on MICE tourism dev. - Provide regular training courses for leaders of hotels/resorts nationwide - Organize International Exhibition Travel ITE annually - Form MICE Vietnam Club • Provincial People’s Committees – at the provincial level - Define MICE as one of core tourism products that would be given high priority to develop until 2015 (HCMC, Da Nang). Design the detailed Plan for MICE development. - Preferential policies for investment projects in the MICE infrastructure (building new exhibition halls, convention centers and high-end hotels/resorts). - Plan to establish the Convention and Exhibition Center in HCMC. - Promote to the foreign industry professionals to bring more MICE business to the cities - Training

Promotion

• Promoted at the road-shows, tradeshows, exhibitions and fairs, seminars and workshops oversea; promotional publications; advertising on mass media..

• MICE Vietnam Club

• Local authorities’ efforts in marketing for MICE

• The private sector’s efforts: Saigontourist, Vietravel, Fiditour…

MICE tourists to Vietnam

• Business arrivals accounted for about 16% of

inbound tourists to Vienam, amounting to over

800,000 tourists, of which 74% were MICE

tourists (2011)

• MICE tourists spend about three times as much

as regular tourists MICE generates high

revenue.

• MICE tourists made up for 60-70 percent of the total tourists of some tour operators.

Key constraints/challenges

• Insufficient industry infrastructure - Shortage of large scale exhibition/convention centers and luxury hotels. A variety of

branded hotels but limited capacity, often being overbooked, high price, ect… - Insufficient transportation infrastructure - Limited accessibility (international flights) - Lack of innovation in and low diversification of MICE products/service provision. Low

level of investment in R&D activities.

• Promotion - Lack of full cooperation between the public and private sector, among MICE service

providers (hoteliers, travel agents, airlines, ect….) - Lack of a National Convention and Exhibition Bureau (NCEB) as a key organization

promoting the country's MICE - Limited budget

· Shortage of labor force qualified in MICE tourism sector

• The ongoing global economic recession, esp. the European debt crisis leading to the smaller size of MICE events from long-haul markets

• Tight competition from ASEAN neighbors - Singapore -the well-established MICE destination. Thailand & Malaysia making massive

investment in and aggressively promoting MICE tourism industries with strong backing by their governments. Indonesia is increasingly attractive to business travelers.

- Improve the industry infrastructre: Build new high-end hotels/resorts in cities as

selected in the Master Plan. Build or ugrade international standard convention/exhibition

centers. Renovate airports, innovate transportation infrastructure, telecommunications,

visa, ect.

- Improve and diversify MICE products/services to satisfy demanding MICE

travelers. Develop designated product lines for each part of M.I.C.E. Strengthen

cooperation among MICE service providers to ensure the provision of comprehensive,

consistent full-itinerary and competitive services. More investment in R&D activities.

- Foster promotion in various forms (roashows/sales missions, trade shows,

FAM/presstrip, advertising, esp. via internet). Design MICE designated campaigns.

Establish the Vietnam MICE database and make it available to MICE professional

planning teams, and integrate with other kinds of tourism resource for comprehensive

recommendations. Establish NCEB to unify and strengthen efforts in marketing for

MICE.

- Stimulate training to improve the capability of the labor force in MICE service provision given the critical role the quality and innovation of the products/services plays in MICE tourism. Establish MICE schools. Seek foreign partners’ assistance (experts

and other kinds of technical assistance) to do training, conduct workshops, ect...

- Enhance international cooperation for MICE dev., esp. with its MICE contenders in

ASEAN.

Key proposed measures

Key Strategies

Thank you

Vietnam National Administration of Tourism 80 Quan Su, Ha Noi, VIETNAM www.vietnamtourism.gov.vn