Tuesday, March 22, 2011

MICE is nice; incentive rulebook in the offing

SANGAM PRASAIN
KATHMANDU, MAR 23 -

The government is in the final stage of endorsing the guidelines for the meetings, incentives, conventions and exhibitions (MICE) incentive packages for the private sector aimed at boosting the Nepal Tourism

Year campaign, a government official said.

The government has also announced a grant of Rs 500,000 to any organiser holding meetings, seminars, workshops or interaction programmes involving at a time more than 100 foreign passport holders entering Nepal by air. The incentive will be provided within seven days of the completion of such programmes on submission of evidence and relevant documents.

According to a Finance Ministry official, a draft of the MICE guidelines has been forwarded to the cabinet for final approval. “The guidelines prepared by the Tourism Ministry have incorporated provisions for submitting a record of the programmes, invitations, visitor figures and copies of IDs and passports of participants, among other evidence, so as to be eligible to receive the incentive,” said Murari Bahadur Karki, joint secretary at the Tourism Ministry.

“The Finance Ministry forwarded the draft to the cabinet last week,” said a Finance Ministry official. The Tourism Ministry had sent the draft to the Finance Ministry a month ago. The government has announced that the incentive programme will run till the end of Nepal Tourism Year.

The government’s readiness to promote MICE tourism has encouraged tourism entrepreneurs. Hoteliers said that they had been receiving more corporate clients these days. International airlines and hotels have reported healthy bookings for the coming peak tourist season. They said that MICE programmes are also increasing compared to past years.

As of now, only Global Asia Tours and Travels has applied for the incentive. Entrepreneurs have criticized the delay in issuing the guidelines as three months have already passed since the announcement.

Mahendra Raj Poudel, managing director of Global Asia, said that it organized an international meet at the Soaltee. According to him, 163 visitors from different countries attended the programme.

Tourism entrepreneurs have said Nepal has a good chance of winning international bids for MICE, a high potential tourism segment, because of its scenic allure and improving political climate. They said that MICE tourism brings high-yield tourists and has no seasonal bottlenecks. Hoteliers said that among the events held under MICE, professional and business meetings accounted for 50 percent; product launches 35 percent, fashion shows 10 percent and other events 5 percent in the previous year. Also, workshops, trainings, interactions and cultural programmes made up most of the domestic MICE events.

In 1998, Nepal received 463,684 visitors with 24 percent of them preferring trekking, mountaineering, rafting and jungle safari as their purpose of visit while 11 percent put down business, official and conference as the purpose.

However, the conflict and deteriorating security situation took a heavy toll on tourist arrival and MICE was affected, tourism entrepreneurs said. MICE tourism was good in 2007 and 2008; it slumped in 2009 due to the global economic crisis but bounced back in 2010.

Nepal well positioned to catch MICE

SANGAM PRASAIN
KATHMANDU, MARCH 12, 2010-

Tourism entrepreneurs have said that Nepal has a good chance of winning international bids for MICE (meetings, incentives, conventions and exhibitions), a high potential tourism segment, because of its scenic allures and an improving political climate.

They said that MICE tourism brings high-yield tourists and has no seasonality bottlenecks. At a time when hotel entrepreneurs are worried by low occupancy rates, MICE can be the answer, they added.

In addition to international conventions, resort destinations like Nagarkot, Dhulikhel, and Godavari are hosting domestic conferences which shows that MICE offers good business prospects.

Hoteliers said that among the events held under MICE, professional and business meetings accounted for 50 percent, product launches 35 percent, fashion shows 10 percent and other events 5 percent.

Similarly, workshops, trainings, interactions and cultural programmes made up most of the domestic MICE events.

Nepal Tourism Year 2011 implementation committee coordinator Yogendra Sakya said that international conferences, meetings and sports and adventure activities would be major products during the upcoming national campaign.

“We don’t have a new product immediately, but the focus will be on international events and activities through business perspective plans during 2010 and 2011,” he added.

Marketing manager of the Hotel Yak & Yeti Bharat Joshi said that they expected a 10 percent increase in the MICE segment. In 2009, 130 international programmes were held at the Yak & Yeti. A total of 7,830 persons participated in different conferences, product launches and other activities in 2009 yielding Rs. 40.5 million in revenue. Similarly, there were 725 domestic programmes in which 8,695 persons participated.

In 1998, Nepal received 463,684 visitors with 24 percent of them stating trekking, mountaineering, rafting and jungle safari as their purpose of visit while 11 percent out down business, official and conference purposes.

The conflict and deteriorating security situation took a heavy toll on tourist arrivals and MICE was similarly affected, tourism entrepreneurs said.

Subodh Rana, former president of the Nepal Incentives and Convention Association that collapsed in 2001, said that MICE started recovering after 2007.

MICE tourism was good in 2007 and 2008, however, it slumped in 2009 due to the global economic crisis.

Tourism experts claim that the revenue generated from MICE is almost double that from other tourism segments.