India Is Poised to be Next Big Mice Magnet

THE MICE industry is vastly dependent on a multitude of factors, hospitality is just one of them. India has always been renowned for its great standards of hospitality, but the inflow of MICE business into a city, destination or country depends on a lot of other macro-economic and political factors. With a stable government that is focused on economic development, India has become an attractive country for investments from across the globe. This, coupled with the recent spurt in Infrastructure development, has given the in-bound MICE segment a much-needed boost.

The state of infrastructure at the local level has improved greatly. This has led to a massive improvement in both the cost and ease of access to various destinations in the country. With the growing number of flights taking off from and landing in its many airports, India today has become accessible from any part of the world. The quality of roads and highways has also improved greatly, adding to an improved quality of experience for the guests.

A stable government, steady economic growth, improving infrastructure and increased flight connectivity, coupled with the fact that India is a culturally diverse, English-speaking country, makes us very attractive for both domestic and International MICE. With all these factors working together for us, it is evident that India is poised to become the next big MICE destination.

Indian hospitality, and Indian hospitality brands, are globally renowned today, and are synonymous with highest levels of service standards. For the past few decades, India has been hosting travellers from across the globe and our service excellence is acknowledged around the world today. The consolidation of technology and hospitality suppliers plays a huge role in driving MICE business to the country. Earlier this year, New Delhi was rated as one of the top 10 meeting destinations in the Asia Pacific region. The list, though, continues to be topped by cities such as Singapore, Sydney and Bangkok.

This is because MICE infrastructure in India is short of what developed countries offer today in terms of convention centres and general logistics. With more than 100 destinations competing worldwide for conventions, it is a tough field. More than 12 venues are coming up with large convention spaces in India. These give us the optimism to predict that the country is poised for a larger share of the global pie.

Among the upcoming venues is the mega facility at Pragati Maidan, New Delhi, being given a bottom-up makeover by the India Trade Promotion Organisation -- the completely refurbished destination will include a five-star hotel and several meeting spaces. There is also the ambitious ₹25,700-crore, 90-acre India International Convention and Expo Centre coming up in Delhi’s Dwarka area, where 20,000 delegates can congregate easily. Down South, the Bangalore International Convention Centre is coming up on 35 acres of land adjacent to the Kempegowda International Airport.

Apart from the government, the private sector, too, is adding volume and depth to the country's convention infrastructure. Reliance Industries is rolling out an international convention centre at its Jio World Centre in Mumbai’s BKC area. In Kerala, the Lulu Group International, which opened a one million sq. ft. convention centre plus five-star hotel project last year at Bolgatty Island in Kochi, is creating more such spaces this year. But, as a nation, we must also focus on attracting smaller events that we now have the infrastructure to cater for. Approximately 90 per cent of conferences in the world are for less than 2,000 delegates, according to International Congress and Convention Association (ICCA) reports.

Recent research by the India Convention Promotion Bureau (ICPB) on the country's MICE market points to the immense opportunities for growth for the industry, which is lagging behind mainly because of inadequate marketing and communication efforts by the stakeholders. I believe the hospitality industry must work closely with the state governments and industry bodies such as the ICPB to actively promote both individual cities and the country in its entirety as ideal MICE destinations.

For ITC Hotels, MICE is an important revenue generator. The segment's contribution to the company's topline has shown a growth of more than 30 per cent in the first half of FY2019-20,

despite the general economic slowdown and the general elections. We have a wide array of MICE offerings in both business and leisure destinations, and we also have the capability of hosting some great MICE events. Hotels such as the ITC Grand Chola in Chennai, ITC Gardenia in Bangalore, ITC Grand Goa in Goa and the recently launched ITC Royal Bengal in Kolkata are all capable of playing host to large-scale events.

The recent relaxation of GST rates will also help increase tourism inflows and, consequently, lift the MICE business as well. Our proposition of Responsible Luxury also goes hand in hand with the government's focus on promoting sustainable MICE tourism. We work closely with local artistes and craftspeople to provide a unique and local Indian experience to global customers.

Having said that, for us at ITC Hotels, whereas large-format Luxury MICE is definitely a profitable revenue source, we are also strongly placed today with our growing footprint of WelcomHotels in the Upper Upscale category in strategic locations, which range from Metros to Tier-II and -III cities, and leisure destinations (beaches, hills and deserts). These hotels give us the flexibility to host a variety of MICE events, from the large and luxurious to the small and bespoke.

Take the case of our newest luxury hotel -- ITC Royal Bengal, Kolkata. Coupled with ITC Sonar, it has been well-accepted in the city and we are being applauded for the magnificent edifice that has been built to attract tourism into West Bengal. Kolkata, as a result, has started seeing the steady flow of prestigious domestic and international delegations, and we have kept our promise to promote Kolkata as a preferred MICE destination not only in India, but also in international target markets.

This important development has already paid us rich dividends -- the company's MICE business has seen a 29 per cent growth since the debut of ITC Royal Bengal. Event managers, finally, have a delight of offer, with the hotel's state-of-the-art, column-free hall giving them an opportunity to pitch for top-end events. Additionally, with the new hotel being inter-connected with ITC Sonar, we can say with confidence that we have the capability to offer 693 rooms and 100,000 sq. ft. of meeting venues, apart from 15 F&B options, under one roof.

Additionally, with the modernisation of Milan Mela (the West Bengal government's initiative to build a world-class trade fair venue), this part of Kolkata's Eastern Metropolitan Bypass will be the preferred MICE destination in the coming years. With its position as the gateway city for the north-eastern states and the south-east Asian nations, Kolkata is all set to storm the international MICE market, and we will certainly be around to celebrate the sunrise.

Our other big MICE venue, ITC Grand Chola, is in Chennai, which, being a global automobile manufacturing hub, and home to vibrant IT/ITES and healthcare sectors, has seen a significant influx of International and domestic conferences in the city.

To serve this market, as well as to cater to weddings and medical tourism, ITC Grand Chola has a lot to offer -- 600 keys; 30,000 sq.ft. of pillar-less convention and banqueting space; 10 landmark food and beverage outlets; and 23,000 sq.ft. of the internationally acclaimed spa brand, Kaya Kalp. The ballroom can be divided into eight smaller spaces, which could also be clubbed together strategically to form three larger halls, so, whether you choose to make a big splash with big numbers, or host a small, intimate gathering, ITC Grand Chola is your go-to destination.

With MICE magnets such as these, it is not surprising that our numbers in this business have seen a significant rise. There is no seasonality anymore. We have high occupancies throughout the year and our ADRs are seeing significant growth.