Chapter 10 Business Tourism

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Chapter 10Business Tourism

• Very high spending tourist
• Differs from leisure in that the focus of travel
  is on conducting business
• Ireland lacks in terms of international market
  share of business tourism
• Problem is currently being addressed

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• More than 250,000 visitors took part in what is
  sometimes called MICE tourism (Meetings,
  Incentive, Conferences and Exhibitions) in
  Ireland in 2005, accounting for a total 857,000
  business-related visits or around 1 in every 8
  visitors.
• This 5 increase on the previous year was worth
  457 million to the Irish economy.
• Business tourism can be divided into the
  following key areas
• Business Meetings
• Incentive Travel
• Exhibitions and Trade Fairs

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• The principal characteristics of business tourism
  (NITB)
• It is at the high quality, high spend end of the
  tourism spectrum.
• It is year round, peaking in Spring and Autumn,
  but generally balanced year round, sustaining
  full-time employment.
• It competes with leisure tourism, and relies on
  much the same physical infrastructure (and so
  facilities built for either business or leisure
  tourists can be enjoyed by both).
• Investment in business tourism facilities has a
  proven track record of regenerating urban and
  inner city areas (e.g. Belfast, Manchester,
  Birmingham).

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• Business Tourism stimulates future inward
  investment as business people see the attractions
  of a destination while travelling on business or
  to attend a conference, exhibition or incentive,
  and then return to establish business operations
  there. They can also become unpaid ambassadors
  for a destination by communicating to colleagues
  and others their positive impressions and
  favourable experiences.
• The higher quality of personal service demanded
  by the business tourist requires more
  labour-intensive service suppliers, which in turn
  translates into higher levels of job creation.
• Approximately 40 of business travellers will
  return with their families as leisure visitors to
  destinations they have enjoyed visiting on
  business.

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Visitors Citing Business as Main Reason for
Visiting Ireland 2005 ()
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• Any destination wishing to benefit from business
  tourism of any kind must be able to answer Yes
  to the following checklist
• 1. Does the city have excellent conference
  facilities?
• 2. Are they easily reachable from the airport?
• 3. Does the city have a comprehensive transport
  network?
• 4. Are there resources for cultural activities
  and entertainment in the delegates spare time?
• 5. Is the cost favourable?
• 6. Is the culture (a) similar to the
  organisations or (b) accepting of the
  organisations culture?
• 7. Is the organisations language understood by
  at least some in the destination?

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• Business Meetings
• Can be divided as follows
• Corporate meetings aim of attending is to do
  business with each other
• Associate meetings people with a common
  interest/belong to a common organisation meet to
  exchange ideas and info

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• sometimes known as conferences or conventions
• congress international conference
• UIA (Union of International Associations
  Brussels)
• 7,000 to 10,000 congresses annually

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• Top congress destinations
• USA
• France
• UK
• Germany
• Netherlands

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• 60 of congresses held in Europe (1990s)
• Down from 80 in the 1950s
• More future planning to Thailand, India South
  Korea
• Exotic places/appeal to delegates

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• Paris is worlds top destination for Business
  tourism
• Paris
• London
• Brussels
• Vienna
• Geneva
• Berlin

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• Why are these cities so prominent?
• Conference facilities
• Resources for cultural activities and
  entertainment
• Comprehensive transport networks
• Question Why is Dublin/Ireland not in the top
  20?

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• Most popular congress months are September,
  followed by May
• Winter months (December, January, February) are
  least popular
• A third have fewer than 100 participants
• lt a third have between 100 and 250 participants
• A quarter have between 250 and 1000 participants
• 10 have over 1000 participants
• Two thirds of delegates bring their spouses
• Congresses can be booked years in advance, given
  the amount of organisation necessary

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Incentive Travel

• Acknowledgement of work done, incentive to sales
  staff
• Different elements of package usually chosen to
  match the lifestyles and aspirations of the staff
  who are participating
• Predicted to be a major growth market
• Only 30 of incentive travellers in Europe take
  their spouses, compared to 70 in USA
• Paris and London top European incentive
  destinations

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• Eastern Europe projected to be major future
  incentive destination
• Main barriers to Eastern Europe as an incentive
  destination (infrastructure, poor ground
  handling) are being addressed.
• Region has lots to offer such as cities full of
  culture and heritage, attractive scenery,
  national cuisine, local customs, some well known
  wines and beers.
• Question What about Ireland? Dublin?

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Exhibitions Trade Fairs

• Trade shows
• Large events offering various products and
  services
• displayed to general public or invited
  specialists
• e.g. Paris Air Show latest aircraft, civilian
  and military
• ITB Travel Trade Fair Berlin 30,000 visitors
  from the trade and 100,000 from the public
• Ideal Homes Exhibitions, Opportunities 2004 etc.
• Cause immediate boost for transport,
  accommodation and other services in the host city

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• Also retailing, communications, entertainment.
  Therefore national governments get involved.
• There is fierce competition between governments
  to host these events. Close to ST1bn (1.5 bn)
  spent in Britain by exhibitors and visitors. At
  least 10 times this amount in France and Germany.
• Exhibitions are often combined with conferences
  potential buyers, and adding exhibition to
  conference can be a useful way of offsetting
  cost of conference
• Question What are the differences and
  similarities between business tourism and leisure
  tourism?

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• Future for Business Tourism
• FI Business Tourism Forum
• www.irelandinspires.com
• Abolition of Aer Lingus short-haul business class
• High cost
• National Conference Centre