TravelDailyNews: What are your estimations for the MICE Industry in Australia this year and how does the MICE business contribute in Melbourne’s economic growth?

Sandra Chipchase: In Australia, business events attract 19.9 million delegates per annum and are valued AU$11.5 billion. We expect the MICE industry to continue to grow in the future.

Business events contribute AU$3.4 billion in direct expenditure to Melbourne and the State of Victoria’s economy per year.

More than 5.4 million delegates participate in meetings in over 360 different venues which generates over 22,600 jobs in Victoria. Our share of the business events sector is 25% and business events generate 9% of our total tourism revenues.

(Figures taken from the National Business Events Study)

TDN: How would you characterize Melbourne’s MICE future and what are your plans for 2007?

S. C.: The outlook for Melbourne’s MICE future is extremely positive. It has been full steam ahead since the State Government announced plans to build a new 5,000 seat, six green star convention centre by 2009. This has allowed us to bid for larger international conferences and to offer concurrent meeting facilities.

To date we have secured ten major conferences for the new centre between 2009 and 2012. These conferences will bring 19,000 delegates whose spending is worth over AUD 100 million to the State.

Another major market for us is the Asian incentive market. We recently opened offices in Hong Kong and Singapore to tap into this lucrative market. We believe Melbourne has all the ingredients to attract large incentive groups to Australia.

We recently won the Amway Greater China incentive group that will come out in 2008. Amway Greater China will be the largest incentive group to visit Melbourne with 10,000 delegates, and will inject more than AUD 59,314,000 into the Victorian economy.

TDN: What is the role of technology in MICE events?

S. C.: Technology is vitally important in terms of ensuring a conference runs smoothly, that delegates have access to the latest and fastest forms of communication, and to ensure that ‘Wow’ factor in entertainment and spectacular functions for incentive groups.

Australia is know for its early adoption of technology and can provide the most up to date equipment for business events. When the new convention centre opens in 2009, technology will be one of the key attributes of the centre that will place it ahead of the competition.


TDN: What is your opinion on e-conferences and what role can they play in the MICE industry?

S. C.: E-conferencing does make it easy to communicate with people all over the world but nothing can surpass the value of face to face meetings at conferences and events.

Physically being in the same room as like minded colleagues gives delegates a greater opportunity to foster learning, network and form strategic alliances. E-conferences have their place but they will never be a substitute for the productivity found in traditional conferencing.

TDN: Which markets in the international level have Australia and Melbourne in their top list for incentives and meetings and which are you focusing on?

S. C.: There has been growing demand and interest from Asian operators looking for new Australian experiences and Melbourne is seen as a fresh and exciting destination.

We are currently focusing on the Asian incentive market and with our representative offices in Hong Kong and Singapore we believe the number of incentives coming to Melbourne is set to grow rapidly. We are also seeing a resurgence of interest from the UK, Europe and West Coast USA.

The new Asia offices will provide greater in-market presence and the capacity to engage with trade and corporate end-users to develop the business events market with a particular focus on incentive travel. In addition each office will be able to focus on specific countries and the emerging market potential from China and India.

Melbourne really is a purpose-built convention destination with excellent transport facilities, over 20,000 accommodation rooms, with approximately 14,500 of these located within the CBD and metropolitan district, and an airport that caters for 430 direct international flights per week.

With the new 5,000 seat convention centre, fully integrated with the Melbourne Exhibition Centre, Melbourne will have Australia’s most comprehensive convention facilities.

Our main focus is the international association market. This is an important market for us with the new convention centre coming on line in 2009.

On top of the outstanding infrastructure, Melbourne is Australia’s centre for shopping, fashion, dining, entertainment, sports, arts and culture.

On average, one international business event visitor to Australia spends AU$3,526 per trip, based on an average 7.6 night stay, versus an international leisure visitor spending AU$2,569 per trip over an average period of 27.4 nights.

TDN: At what level do private and public sector cooperate to boost MICE business in your city?

S. C.: In Melbourne we take a city wide approach to securing business events. The World Psychiatric Association (WPA) International Congress being held next year, is a prime example of how a number of organizations worked together to help secure an event for Melbourne.

To win this conference for Melbourne we brought together organizations within Melbourne that could support this major event. Our collaborative approach involved not only the Bureau and the Melbourne Exhibition and Convention Centre (MECC), but also the City of Melbourne, Destination Melbourne, Melbourne Airport, Metlink and SmartVisit Australia.

The collaborative City-wide support package included promotional support to attract delegates, Official Visitors Guides, Melbourne maps, shopping and dining guides, special transport arrangements at Melbourne airport, a reception hosted by the Lord Mayor of Melbourne and discounts on SmartVisit Cards and MetCards.


TDN: What is the percentage of the Australian companies and tourism organizations that launch their meetings in other destinations outside the continent and which are these destinations?

S. C.: We do not have this data.

TDN: Melbourne is the hosting city of AIME 2007. How important is it for the city to have such an event strictly dedicated to MICE business and what is the feedback from the industry so far?

S. C.: AIME has been held annually in Melbourne since it first started in 1993. AIME was established by MCVB and has grown to become one of the leading global business event tradeshows and the premier show in the Southern Hemisphere. The event is managed by Reed Travel Exhibitions.

MCVB is the only CVB in the world to own such a major international meetings and incentives industry event and the rewards are significant. Each year AIME helps Melbourne to showcase the destination to over 2,600 visitors, including some of the most important meetings and incentive buyers in the world. We also introduce many of the 850 exhibitors from 50 countries to Melbourne and regional Victoria, who may not have visited here before.

Melbourne is also a major exhibitor at AIME, and in 2007 Melbourne and regional Victoria combined will have the largest space in the exhibition.

AIME also contributes significantly to Melbourne’s ability to attract business events to the city and the State. More than 1,100 business events are expected to be booked in Victoria as a result of AIME 2006, held earlier this year at the Melbourne Exhibition Centre.

The business events booked as a result of AIME include conferences, incentives, meetings, road shows and other corporate and special events and exhibitions. They will be held between 2006 and 2009.

Independent research following AIME showed that buyers attending had on average an annual budget of more than US$600,000 to spend on business events in Australia.

The research also found that 16% of buyers and 13% of visitors said they intended to book an event at the new Melbourne Convention Centre.

Feedback from the industry in regards to AIME has been extremely positive.

Of the exhibitors who responded to AIME’s independent research 93% stated that it was beneficial to exhibit at AIME 2006 and 87% said they intend to exhibit at AIME 2007.

92% of Hosted Buyers respondents considered AIME to be a ‘must see’ event and the same percentage said they were ‘satisfied’ to ‘very satisfied’ with AIME in terms of meeting their objectives.

97% of visitors surveyed were ‘satisfied’ to ‘very satisfied’ with AIME having met their objectives.

Research also showed that business results for exhibitors were strong, with the total estimated value of business placed, or to be placed as a result of AIME 2006 valued at close to US$450 million.

TDN: What are the major problems that the Australian MICE Industry faces today?

S. C.: The outlook for the Australian MICE industry is currently very strong. However, Australia is sometimes unfairly viewed as a long way to travel for a convention, particular in an era when people are so time poor.

However, results from the Melbourne Delegate study show that 82% of international delegates stated that the time taken to travel to Melbourne had no, little or minimal impact on the overall enjoyment and satisfaction they found in Melbourne.

The study also found that found that over 71% of international and domestic convention delegates are ‘extremely satisfied’ or ‘very satisfied’ with Melbourne as a convention destination. International delegates commented that Melbourne is a ‘friendly’ and ideal ‘location’ for a convention.

Our challenge in the future is to market the factors that out-weigh the long haul travel element such as the unique experiences, exciting activities, great shopping, fabulous food and wine, friendly people and the natural, clean and safe environment.

[1]The Melbourne Delegate Study 2004 was conducted at seven conferences held in Melbourne during October and November 2004.