Monday, December 20, 2010

Analysis of MICE business in China

In the last three blogs the author attempted to give a brief introduction to business tourism & MICE industry. Now he will like to take this further and will like to delve deeper into it. In the next stage he will attempt writing on the trend of MICE industry in various individual regions. Along with the traditional hot destinations such as Europe and USA there are lots of new places such as Middle East, China, Singapore are emerging as favorable destination for business tourism and MICE activities. The next few blogs will like take a deeper look at these individual places along with the socio economic conditions and developing industry trends in the background. The very 1st one will be dealing with the neighboring China.

Ever since the Chinese economy was opened in the year 1978 China has shown phenomenal growth in the past three decades. Known as the factory of the world it holds a very strong influence in both world geo-politics as well as world economy. Al most all the major companies in the world has their manufacturing unit in China. Because of its investor friendly government policies, low cost of labor and strongly developing human resource it is considered as one of the most favored location for investment. Under such circumstances the importance of MICE industry increases many folds because of following reasons:-

• It is a lucrative business in itself that is a source of an end number of high end employments.

• Business tourism can stimulate leisure tourism as well.

• Since it brings in investors and business houses from all over the world it can stimulate investments in other sectors.

• It can play a very important role in local as well as regional developments. Since primarily it does not brand a whole country but a particular region or a city to the investor & business communities.

• Can stimulate govt. initiatives in building state of the art infrastructure.

The current status of Chinese MICE industry:-

• The Chinese MICE industry has grown rapidly in last 10 years. Most of the 1tier and 2 tier cities have state of the art exhibition halls of international standards. ( Michael Dreyer, 2010)

• The various kind of MICE activities include: Local events where local products are displayed to local buyers, Import events where foreign products (both capital goods as well as luxury products) are displayed to local consumers and buyers and sourcing events where Chinese exporters show their goods to sold to the international buyers. (Michael Dreyer, 2010)

• Important venues for MICE activities in China are Sanghai, Beijing, Hong Kong, Dongugan, Guangzhou etc.

• Business tourism plays an important role in inbound tourism in China.

• According to international Congress and convention association ( ICCA) by 2020 with 137 million business travelers China will account 8.6% of Chinese business tourism market.( Dongugan news, 2006)

• China is the third largest business travel market. ( BEDOUK.COM, 2010)

• Chinese government taking strong proactive steps to boost MICE industry in China. Recently in august the govt. had established two organizations, ICCA China committee & MICE advisory committee for covering eastern half of Chinese capital. (Travel, 2010)

China national convention center was opened in October 2009. With a gross floor area of 270,000 square meters its main purpose is to provide international standards for conducting exhibitions, conventions and meetings. It is expected that in the 1st five years of its operation it will be conducting some 173 events with almost 3, 20,000 attendees. Out of this 66 will be of international or regional association congresses and 56 will be national level meetings. (Rob Davidson, 2009).

• Since travel and tourism industry as well as MICE industry are growing very fast in China hence it complements each other.

SWOT Analysis:-


• China has invested hugely in the infrastructure recently. They have got state of the art infrastructure which includes top quality hotels, transportation, telecommunication, well equipped convention centers etc.

• China has a cost advantage since it is comparatively much economical than its western counterparts.

• China today stands in the centre of world economics and politics. Hence this is an added advantage for its prospect as a venue for meetings, events etc.

• China , a vast nation can provide a wide range of delight to its visitors ranging from its magnificent monuments, aesthetic oriental culture, exotic food, landscapes to state of the art modern amenities such museums, theme parks, sports complex etc.

• China is also a hot destination for travel and tourism business. This is an added advantage for its MICE industry.

• Traditionally most of the events have taken place in the same old European cities such as London, Dublin, and Paris etc. In contrast to them China can provide an all together new experiences to the business travelers. (, 2009)

• World class events like Beijing Olympics 2008 & world expo 2010 have been conducted in China. This had reaffirmed Chinese strength in handling big events successfully and also recognizes the fact that it had travelled a long way as a nation.


• Language is still a major concern in China. Most of the Chinese still don’t speak or even understand English.

• For China MICE is still a new idea. In Europe and USA, MICE activities are happening since hundred years where as in China it had started in the last ten years only. Hence China is still undergoing through its learning curve and it has got many things to learn. It even does not have too many organizations to take care of these things in contrast to USA or Europe. (, 2009)


• Most of the transnational organizations such as Honeywell, GM, and Kodak etc have their regional head quarter at China. Hence it can be added advantage since they will prefer conducting annual meetings at Chinese locations. (, 2009)

• The China considered as the next super power, had got strong hold in the world geo-politics as well as geo-strategy. China has a very prominent role to play in the new world order that will be multi polar in nature. Hence this wide spread craze for China can act as a latent force in promoting China as a destination for MICE activities.

• East Asia and South East Asia themselves are under growing strong economic growth. There are lot of exciting business events happening in these areas. Being the strongest regional force China as a venue for MICE activities will always attract attention of regional industry players towards itself.


• So far in Asia Singapore is considered as the strongest MICE destination. Beating Singapore will always be a tough for the Chinese players.

• Lot of new players such as Dubai, Abu Dhabi, South Africa, India, Vietnam etc are joining the MICE bandwagon and can provide stiff competition to China.

• Players like India and Vietnam can be good alternative to China both in terms of cost efficiency as well as in terms of services.

• Though there is a China fever all across the world but at the same time there is a lot of reservations for China also because of its non democratic government, restrictions imposed on press etc. This kind of resentful thinking in some quarters of the world might deter some companies and associations from conducting events in China.


1. Michael D, 2010, The rapid growth of China’s MICE industry, CEI, available at <>

2. Michael D, 2010, The rapid growth of China’s MICE industry, CEI, available at <>

3. Dongugan news, 2006, South China’s MICE boosts business tourism, available at<> < accessed on Jan, 2011>

4., 2010, China develops MICE industry, available at <>

5. Rob D., 2009, EIBTM trend analysis and market share report, p-20.

6., 2009, Chinese Mice analysis, available at <>

7., 2009, Chinese Mice analysis, available at <>

8., 2009, Chinese Mice analysis, available at <>


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