The FINANCIAL — Georgia is participating in the EIBTM, the largest global meetings and events exhibition of MICE tourism for the first time.
The exhibition will be held in Barcelona in November.
More than 3,000 exhibitors take part in the annual exhibition. The event has more than 8,000 visitors with 3,700 service buyer organizations or individuals from around the world.
The EIBTM exhibition is one important stage of the process of MICE tourism development in Georgia, which was announced as one of the priorities for the country’s economic development recently.
The abbreviation, MICE, means Meetings, Incentives, Conferences and Exhibitions. MICE tourism is a type of tourism which is oriented on grand corporate and professional tours, concluding events like wedding and birthday parties.
Generally MICE tours are on a well-planned agenda centered on a particular theme, such as a hobby, a profession, an educational topic, etc.
The Georgian National Tourism Agency is currently working on tourism infrastructure around the whole country.
“We are working to make a MICE tourism directory of hotels, conference and exhibition halls, spaces for all type events, tourism and event companies,” Maia Sidamonidze, Head of the Georgian National Tourism Agency (GNTA) told the FINANCIAL. “This directory will be distributed at the EIBTM exhibition and will be sent to the big corporations and event companies.”
According to Sidamonidze the country has a large potential for MICE tourism development.
“New hotels are built, new conference halls are added, many tourism resorts are renovated. All of these are essential for the tourism sector,” she said. “The availability of incentive tours gives extra potential to the country.”
Georgia has made significant developments of hotels during last several years. There are some hotels of global brands as well as a few ones of middle level.
Sheraton Metechi Palace Hotel was the first 5-star hotel in the Caucasus region opened in Tbilisi in 1996. In 2010 Batumi Sheraton was also opened.
The price of a conference hall for 50 people in Batumi Sheraton is 700 GEL (425 USD) per day in August, while the same sized hall in Sheraton Metechi Palace costs 300 GEL (180 USD). LCD projectors and screens cost 120 GEL (72 USD) each in both of the hotels, table microphones cost 30 GEL (18 USD) each in Batumi and 25 GEL (15 USD) each in Tbilisi per day.
Water by the bottle costs 5 GEL (3 USD), coffee, tea, mini cakes and juices for breaks are 8.50 GEL (5 USD) per person.
There are many exhibition halls located in Tbilisi as well. The price of a one day exhibition at the gallery Vache on Kiacheli Street is 300 GEL (180 USD). Gallery Vernisaji on Brother Zubalashvili Street has a lower price – about 170 GEL (100 USD) per day.
MICE tourism is one sector the USAID funded Economic Prosperity Initiative (EPI) is planning to develop.
“After analysis of the potential of MICE tourism in Georgia, we made it EPI’s priority,” Zviad Kvlividze, Manager of the MICE tourism sector of EPI told the FNANCIAL. “We already carried out research and managed to make a strategy of the sphere development in the country accordingly.”
“We promote Georgia internationally as a favorable events destination. EPI is assisting the sector through training and support to local companies in improving their efficiency and competitiveness,” he added.
GNTA, with the help of EPI, has carried out a workshop introducing MICE tourism techniques to the Georgian tourism sector in Tbilisi a week ago. A similar workshop was held in Batumi as well. The objective of the workshops was to increase the knowledge of global trends and the best practice in this sphere. Representatives of the seminars were Danielle Keogh, Sales Director of EIBTM, and David Benitez, Sales Manager of EIBTM.
“EIBTM highly recommend that the Georgian private sector companies market themselves in a very proactive, creative and segmented way using the tools that the EIBTM exhibition provides. And therefore managing to reach a higher level of return on investment whilst participating in the event,” Danielle Keogh advises.
“This global event provides the platform for Georgia to professionally communicate the Unique Selling Points (USP) as a country. What it offers is to attract business meetings and events and place Georgia on the map in terms of being a future destination of choice,” she added.
Sidamonidze and Kvlividze agree with the opinion of the EIBTM representative that the country can already receive MICE tourists, especially for middle-sized events. But all of them name the problems and challenges the sector is currently facing.
“We see the need for increasing the number of direct international flights especially from the important Association and Corporate Markets such as the UK / Europe, Middle East, China, Australasia and the Americas,” Keogh said.
“Georgia has to provide education for improving customer service of the Meeting and Tourism supplier chain,” Kvlividze said.
“Georgia’s infrastructure has to continue to develop as the meetings industry matures within the region,” Sidamonidze added.
According to the data of International Congress and Convention Association the biggest event destinations are the USA, German, Spain, the UK, France, Netherlands, Italy, Australia, Austria and Switzerland.
Potential MICE tourists for Georgia will come mainly from neighboring countries as transport prices are very important, according to EPI.
“On the other hand, this is part of the country’s strategy,” Kvlividze said. “It depends on which countries marketing measures will be implemented and what type of client base we aim towards. It will be clearer after the private sector becomes more experienced.”
At the moment GNTA expects to receive MICE tourists from the biggest event destinations. “As well as tourists from those countries we are waiting for those from the neighbouring and Baltic countries,” Sidamonidze noted.
For the sector’s development, GNTA plans to arrange info-tours in Georgia for MICE tourism agents and tour-operators in order for the country’s potential and infrastructure to get recognized. The agency also plans to become a member of the global MICE tourism organization. GNTA with the support of EPI is planning on carrying out some other seminars and workshops for the private sector.
MICE tourism is one of the most profitable and rapidly growing businesses in the world. According to the International Congress and Convention Association about 400,000 conferences and exhibitions are held in the world annually.
The total expense of them is more than 280,000,000 USD. According to the Global Association of the Exhibition Industry the annual global cost of the MICE industry is more than 1.16 trillion USD.
“Statistics show that each USD dollar spent on MICE tourism brings approximately 7-10 USD of profit,” Sidamonidze said.
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