Global Arab Network | Malaysia to cash in on the growing MICE segment

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Malaysia to cash in on the growing MICE segment

Saturday, 09 January 2010 13:21

Malaysia is looking to cash in on the growing meetings, incentives, conferences and exhibitions (MICE) segment of the global travel industry, building on its already strong tourism brand recognition and a new generation of purpose-built facilities.

The country has already carved itself a sizeable position in the international MICE tourism segment, being ranked 32nd in the world by the International Convention and Conference Association (ICCA) in its 2008 report on the meetings market, having drawn more than 80 such events. Kuala Lumpur faired even better on the ICCA's city ladder, being placed on the 27th rung last year as the venue for 61 MICE.

While commendable, Malaysia is working to do better, both by promoting its MICE potential and by increasing the venue options on offer. In mid-November, the government announced it had struck a deal with TTDI KL Metropolis, a unit of the Naza Group, for the development of a new exhibition and convention centre in Kuala Lumpur specifically targeting large-scale MICE events.

Work on the 93,000-sq-metre Matrade Centre, to be built at a cost of $185m and located at Jalan Duta, is scheduled to begin in the second quarter of 2010, with the development due to open its doors in 2014. Along with three floors of exhibition space, the centre will also have a multi-purpose hall, plenary hall, meeting rooms and display areas.

It is not just in Kuala Lumpur that Malaysia is looking to cash in on MICE tourism, some of the country's outlying regions have also been promoting their credentials as a business meetings destination, with a good degree of success.

According to Tan Sri Abdul Taib Mahmud, the chief minister of Sarawak, the state will be hosting 23 conventions in 2010, with MICE tourism predicted to generate $27.4m in direct delegate expenditure, while the Sarawak Convention Bureau is expected to generate 136,000 delegate days next year.

Addressing the state assembly on November 18, Taib said Sarawak was in a position to combine more traditional forms of tourism with the business segment of the industry to offer a premium package, allowing the state to fully exploit its assets.

The state of Melaka is another that is seeing the MICE component of its tourism trade boom. According to Chief Minister Datuk Seri Mohd Ali Rustam, based on the strong showing this year Melaka could host up to 1m MICE tourists in 2010.

"From January to August this year, Melaka received 635,482 MICE tourists as compared to 565,748 for the same period last year," he said while attending a tourism fair on December 4.

With 6.6m visitors to Melaka in the first 10 months of the year, of whom 1m were foreigners, the MICE contribution to the total is significant and rising. Promoting tourism sub-sectors such as MICE would not only create more business opportunities to develop the tourism industry into a major contributor to the state's economy but would also generate more employment, Ali Rustam said.

Despite the global economic downturn, Malaysia's overall tourism industry has enjoyed a very good year, with arrival numbers well up on 2008 and the month-on-month figures climbing steadily as 2009 draws to a close.

The 2009 total up to the end of October stood at 19.45m visitors, a 7.2% increase on the 10-month period for 2008, and higher than the government's projected year-end figure of 19m. Arrivals topped the 2m mark for October alone, a jump of 14.3% compared to the same month last year, according to Tourism Ministry data released in mid-November.

However, despite an increase in tourism numbers, the sustainability of this growth has come under question considering the large number of MICE developments cropping up in the Klang Valley over recent years. Besides the new Matrade Centre, these include the Sime Darby Convention Centre (SDCC), launched in December 2007, and the MATRADE Exhibition & Convention Centre (MECC), which opened its doors in January of 2007.

These joined the ranks of existing venues such as the Sunway Pyramid Convention Centre, with over 10,000 sq metres of function space, the Malaysia International Exhibition & Convention Centre (MIECC), the Putrajaya International Convention Centre (PICC), and the Kuala Lumpur Convention Centre.

This has raised questions regarding the feasibility of additional convention space. MP Liew Chin Tong told parliament, "PICC was built at a cost of RM600m ($177.6m), fully paid for by the government and is underutilised. Last year, it collected RM2.8m ($829,000) and this year it is expected to collect rental of RM2.5m ($740,000)."

Whilst PICC may not enjoy close proximity to Kuala Lumpur's commercial centre, the industry is on an upward trend. The ministry's figures do not give a breakdown for MICE tourists, all indications are that the numbers of those visiting for professional reasons are on the rise.

If Malaysia maintains its commitment in promoting MICE activities and supporting private sector initiatives, the segment has sound potential for growth in the coming years.

Global Arab Network

This article is published in partnership with Oxford Business Group

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