Sri Lanka possesses significant potential to attract tourists from the Meetings, Incentives, Conventions, and Exhibitions (MICE) sector, primarily owing to its strategic location in the Indian Ocean, stated First Capital in its review ’Sri Lanka Tourism Sector Bright Horizons: Navigating Tourism’s Growth Revival’.
“In the MICE segment, tourists typically spend three times more than leisure travellers.”
Sri Lanka has been steadily approaching pre-pandemic levels in the MICE sector, with India, Bangladesh, Pakistan, Germany, the Middle East (including Saudi Arabia, Doha, and Dubai), and the UK playing vital roles in contributing to this positive trend. Sri Lanka’s tourists’ authorities are promoting MICE tourism in the hope of filling 12.0% of the 1.5 million tourists target for 2023 as MICE tourists are anticipated to pay three times the amount of leisure tourists. South Asia, Middle East and Europe are the key markets for drawing MICE travellers.
Sri Lanka has been gradually reaching the pre pandemic MICE levels and the main source market has been India, Bangladesh, Pakistan, Germany, the Middle East, Saudi, Doha, Dubai and the UK have also been contributing positively.
India organised multiple conferences, Tata Tiscon and V institute of India in 1Q 2023 which attracted over 500 travellers. Furthermore, Sri Lanka is anticipated to host a number of events namely Lupin and Pfizer, Indian Travel agents AGM and the inaugural Jaffna MICE EXPO which are set to be major events.
The India outbound MICE tourism market is projected to reach USD 13.4 bn by 2031, driven by growth in the Indian economy amidst the increase in larger disposable income for businesses and individuals. This has led to increased corporate spending on MICE activities, including international events, conferences, and exhibitions.
World-class infrastructure from hotels and many in-progress developments, such as Cinnamon Life, ITC Hotels and Port City Colombo, is also slated to open more doors to growth and investment in the future out of which the officials anticipate USD 3.0Bn to enter the country in 2023 as Sri Lanka is now identified as a potential market place.
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“Minimum room rate will kill emerging MICE market”
The implementing of the Minimum Room rate will completely kill the emerging MICE market said three key travel associations, Sri Lanka Association of Inbound Tour Operators (SLAITO), Sri Lanka Association of Professional Conference, Exhibition & Event Organisers (SLAPCEO) and the Association for Small and Medium Enterprise in Tourism (ASMET) at a joint a media conference at the Ceylon Chamber auditorium on Thursday.
They all said that the MICE activities are centered on Colombo (where the MRR is implemented) as there are no large conference facilities available out of Colombo. “However with room rates moving up by over 40% due to the MRR the MICE market which was building up will move away from Sri Lanka and remain either in India itself or to Malaysia Indonesia or Thailand which are all cheaper than Colombo.”
“We have already lost two events that were under negotiation for Colombo that would have brought over 1,000 guests.”
