Fostering Korea's MICE industry

By Lee Chul-hwan

The latest MICE industry boom is sweeping through Korea. Municipal governments are actively pooling resources to build convention centers and host a diverse range of events. The Seoul Metropolitan Government has also announced its plans to foster Korea’s capital into one of the top three MICE cities in the world. As a part of this effort, the World Trade Center Seoul complex, specifically COEX, was designated as a key destination for MICE tourism.

Short for Meetings, Incentives, Conventions and Exhibitions, MICE is a business tourism sector that encompasses international conferences, exhibitions and fairs. It attracts large numbers of overseas visitors and these visitors spend significantly more money than regular tourists, making MICE not only a source of tourist revenue but a driver of job creation. Also known to cause a positive ripple effect on related businesses, MICE is a promising industry which can help push progress in achieving a creative economy in Korea.

The domestic MICE industry has indeed grown substantially over the years, much thanks to proactive policy support from the Korean government.

However, MICE industries in other countries are developing at a much faster pace and the fact is Korea’s competitiveness is relatively lagging behind. Adding to the pressure are municipal governments jumping into the MICE competition, determined that MICE is Korea’s future growth engine. If local governments continue to pursue their respective agenda without any direction or a national mid- to long-term strategy, it will inevitably lead to excess spending and waste of resources. With this in mind, it is time for Korea to take effective measures and steer its course towards fostering a more robust MICE sector.

To this end, the first principle that must be implemented is “selection and concentration.” Convention centers should be designed based on its intended use, whether it’s domestic or international. Convention centers built in various regions for domestic purposes can be beneficial for stimulating the local economy. On the other hand, international convention centers would need a unique, competitive edge to set them apart from other major MICE centers.

Then what does it take for a convention center to be world-class? First and foremost, the size of the main venue must be spacious enough to accommodate international events, and have the necessary resources and facilities to support such events. Location is also crucial, as visitors should be able to find and conveniently access the venue without much difficulty. Furthermore, the convention center must be in short distance to and from hotels, recreational facilities and shopping attractions so that visitors can relax and enjoy their leisure time.

Global MICE cities Singapore and Las Vegas both demonstrate these strengths. The two cities have a strong image as popular tourist destinations, and are each known for its safety, cleanliness, convenience and entertainment. Singapore, in particular, has begun shedding its conservative image by approving the construction of two casino resorts in 2010.

The next principle is “harmony and balance.” Aside from the construction, event operations and other software capabilities must be simultaneously developed. Without the placement of a professional staff and systems for effectively managing events, top-of-the-line facilities alone will not guarantee success. This is why educating and providing training for event professionals is especially important.

MICE professionals must have excellent planning skills, a global mindset, outgoing personality and foreign language ability. It is therefore necessary to recruit candidates with these qualities and establish a cooperative network among industries, universities and government ministries to equip these individuals with the essential tools.

“Integration and cooperation” is also key. In order to become globally competitive in any field, there must be a collective effort on a national level. When bidding for international conferences or events, the government and the business community need to come together and put their best plan forward. The MICE industry can bring numerous advantages to the economy and to maximize these effects, the government will have to expand connectivity amongst various industries. It can also be beneficial to utilize the Korean Wave for hosting and operating future events.

Finally, the exhibition industry needs more promotion and support. Although there is still relatively little interest in this sector in Korea, the exhibition industry can bring economic benefits, as well as help create a national cultural brand and image. A case in point is Art Basel, which has turned a small city with a population of 200,000 into a hub that leads global art trends. To bring this fair to success, staff at art galleries in Basel worked tirelessly with an encouraging local government.

If the Korean government’s strategic MICE development policies, rational decision-making and execution of local governments, and voluntary efforts of MICE industry professionals could come together in coordination, Korea is sure to soon become one of the leading MICE destinations in the world.

The author is an invited fellow at the Korea International Trade Association.