
MICE sector transformation? 5 actions for CVB’s to consider
April 2020, Brussels
COVID19 outbreak created an unprecedented crisis. Even though currently is impossible to estimate its impact, one thing is sure, life will never be the same again. Projecting on scenarios on how the “new normal” will look like, might be feasible only after the end of the first big wave of the outbreak and this with a lot of uncertainty. Nonetheless, what tomorrow will bring depends on what we do today. Every crisis demand change and thinking out of the box, out of the ordinary. The need for social distancing during this crisis is accelerating the digital transformation of our societies and changing social norms and consuming behaviors. While most of the societies reject the idea of staying in the long-term home and living a virtual reality, many of the behaviors that will be developed during this crisis and the technologies used will stay in the “new normal”.
The financial impact of the COVID19 will be first addressed -if not sooner- on the fall of 2020 when budgets and memberships will have to be approved and it will be certainly felt beginning of 2021 when the memberships fees are due. Unavoidable fees will be reduced, operations and budget will be revised, and some associations might have to answer successfully the critical question of their “raison d’ etre” to continue existing. In a cost-cutting approach it is very likely to see association with similar purpose and common membership to merge. If so, consequently their respective events could merge as well.
Travel restriction might stay longer than expected and financial resources from international association will be scarce, and this might be for a period much longer that an average” healthy” business in MICE industry can afford. In their first response to COVID19 outbreak many associations have postponed their events for the end of 2020, beginning of 2021, others have completely cancelled 2020 edition and finally some retain the 2020 edition by transforming their event to digital. If virtual conferences prove successful, association could consider the digital option even when the travel restriction are over, as they are cost-efficient and environmentally friendly.
Currently, many experts are considering the future as hybrid. This will result in designing new event experience for the participants and new technical and reliable solution will be required by venues. It is also very luckily to see hygiene pre-requisite measures coming as strong as anti-terrorism measures following the 9/11 period and the last period of terrorist attacks.
It is true that until we reach the new normal, we will experience a very unstable period. But as in every transitional period a multi-stakeholder approach to stabilise the different forces and support a sustainable growth will be necessary. In addition, recovery will depend largely by international, European and national funds and support mechanisms and therefore stakeholders will need to come together and identify needs and actions. International cooperation and knowledge sharing will be key for the recovery.
Destination’s Convention Bureau, as the collective bodies representing the national and/or city meeting industry, can be one of the leading forces in this transitional period for the MICE industry. It is in their role to unite the key actors, define a new collective vision that will create socioeconomic value and accelerate decision making and actions. Now is the time to fix things!
WHAT TO DO
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Vision & Cooperation: Reinforce transparency, trust and cooperation between the main stakeholders (i.e. Convention Bureau and key event industry actors) to create a collective new vision.
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the collective vision should look the broader impact and legacy of events and meetings and therefore not solely the flow of visitors and the direct economic impact but more importantly the knowledge generated and the integration of this knowledge in national and regional level to support sustainable growth. (its not only about beds and rooms)
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Invite in the dialogue key customers; associations/unions, foundations, universities, institutes, authorities, etc, to understand their new needs. What value is needed? to whom? how is being delivered? how you capture value back?
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The exercise should involve an understanding of who is the non-customer that you consciously choose not to serve and identification of the currently non-customer that could be future customer.
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Create a new platform to share knowledge, identify system bottlenecks, facilitate decision making /action, and
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Reposition MICE industry as a leading force of sustainable socioeconomic and cultural growth (related to the new vision/purpose).
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Actively lobby national and regionasl authorities (Min.Toursim, Min. Economy/Development) to promote needs, design policies and receive support
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