Many think Vietnam is underrated as a MICE destination and point to the rapid expansion in development to support this lucrative segment.
Like any MICE contender, Vietnam must establish first-class facilities and infrastructure at its major business centres. Though the country has a way to go, it proved it is heading in the right direction by successfully hosting the APEC Summit last November in Hanoi’s new 60,000-square-metre National Convention Centre. A US$125-million exhibition-hotel complex is also on the board for Ho Chi Minh City.
“New hotels, exhibition halls and convention centres are currently being planned or constructed in major cities as the local authorities begin to foresee the increasing demand for MICE facilities in Vietnam,” says Victoria Hotels & Resorts’ regional director of sales and marketing, Irene Wong.
Adding to Vietnam’s allure are its alternative sites for events outside the metropolitan areas.
According to Vietnam Airlines’ MICE manager, Nguyen Thuy Phuong, Vietnam offers a host of unusual and exotic venues – from mountains to white sandy beaches, that are tailor-made for events with a difference.
Irene Wong agrees. She adds: “Vietnam is still considered an exotic destination with lots of fresh appeal, thus catching the attention of many international MICE organisers…there is certainly huge potential for MICE events in Vietnam’s beach and mountain destinations.
“However, at this moment, large-scale conventions and exhibitions might be difficult to manage in these areas due to accessibility. But there are some resorts in these locations equipped to handle meeting and incentive groups. Apart from hotel facilities, there are also many opportunities for sightseeing and team-building events.”
To qualify as an emerging MICE destination, you have to show the numbers, and the Vietnam National Administration of Tourism (VNAT) delivers the goods.
International visitor arrivals for 2006 reached 3,583,486, a modest but sustainable three per cent gain. Through July of 2007, the country enjoyed a 16.2 per cent leap over the same period in 2006 to close in on 2.5 million overseas arrivals. VNAT said business travellers account for 11.5 per cent of the traffic and MICE delegates are included in this segment.
But as long-time business tourism managers know, any successful national MICE destination relies on a coordinated effort among stakeholders. Many countries have fallen into the trap of creating a hodgepodge of public and private sector MICE organisations with overlapping and conflicting objectives and methods, thus leading to chaotic, ineffective and non-unified MICE strategies. Not so in Vietnam.
In 2002, Vietnam Airlines joined with the country’s top hotels, tour operators and industry leaders to establish the Vietnam Meeting & Incentive Club (VMIC), better know as the Vietnam MICE Club. Ms Wong says the VMIC “has been actively participating in regional trade shows together with leading hoteliers.”
According to The Vietnam MICE Club, Vietnam’s MICE visitors annually increase by around 20 per cent.
“To develop MICE in Vietnam, a convention bureau representing Vietnam is needed to enter the bidding process to host large international events,” suggests Vietnam Airlines’ Ms Nguyen.
“Procedures for MICE tourists should be simplified at airports. The image of the National Convention Centre should be promoted,” she adds.
Ms Wong lists other issues.
“There are constraints in local infrastructure and limited international air flights. However, the outlook is still very positive, especially after the successful hosting of APEC last year,” she says.
Accommodation is another contentious topic. Though Vietnam offers a variety of branded hotels with the latest MICE facilities, capacity isn’t enough, and this is apparently driving up rates.
Inbound operators say it’s a clear-cut case of profiteering and will eventually scar the nation’s MICE hopes.
Travel Indochina product manager, Eric Finley, told the Vietnam Economic Times recently: “We have been marketing Vietnam for more than 13 years and have never seen anything like this.
“When negotiating rates for 2008, we had some hoteliers insisting on immediate rate increases, and increases of 50 per cent on existing bookings.”
Saigontourist inbound department manager, Hoang Loc, agrees that capacity is an ongoing issue for this emerging market.
“We face difficulties when our clients order an event for 1000 participants upwards, or when they require over four function rooms at one hotel,” Ms Hoang says.
“We have to organise big events with a large number of participants at the Reunification Palace or hire several hotels at the same time to organise one event.”
Director of the MICE Travel Centre, Le Hoang Yen, says: “It is normal for hotels to increase room prices.”
He cites one hotel’s low-end rates went from US$80 in 2006 to US$120 per night this year. Another’s hotel’s price shot from US$120 to US$200 in under 12 months.
Ms Wong acknowledges the problem.
“Yes, room rates in Vietnam are indeed rising substantially, but this is mostly in the case of Hanoi and Ho Chi Minh City,” she says.
“I would think MICE buyers would naturally do a price comparison with neighbouring countries, and might be put off by the high hotel rates.
“However, it’s not fair to compare destinations and make decisions based solely on hotel room rates. Vietnam will appeal to those buyers who are looking for fresh ideas and a new destination choice.
“It’s politically stable here and free from big natural disasters. In addition, Vietnam boasts many UNESCO World Heritage sites and its cuisine is gaining popularity internationally. I would be taking all these factors into consideration if I was a MICE buyer.”
Director of the Tourism Promotion Department of the National Administration of Tourism, Pham Huu Minh says: “We have infrastructure and the ability to organise MICE events.
“We successfully organised the Francophone Summit in 1997, ASEAN’s conferences, the 22nd Southeast Asian Games, ASEM, and the recent APEC Summit. These events require tight security, absolute safety and organising ability. The world has acknowledged Vietnam’s ability to organise big events.”
To help drive this potential into a stable industry, the Vietnam MICE Club is planning to spend around US$100,000 this year to promote MICE tourism in Vietnam. The funds will also be used for MICE Club members to attend trade shows in Australia, China, Thailand and Spain.
That may not sound like a massive investment compared to some of Vietnam’s Asian neighbours, but it is a solid start with an industry seemingly equipped with a strategy and a unified approach to marketing the country for business events.
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