Colombia looking to grow M.I.C.E. business

I haven't written in a few months because of my heavy speaking and travel schedule,

which was highlighted by a trip to Colombia for a three-day symposium on the meetings, incentives, conventions and exhibitions industry.

The first International Symposium for the Conventions and Event Management Industry

was put on by COTELCO, Columbia's Hotel and Tourism Association, and took place at the Plaza Mayor in the city of Medellin.

I was very pleasantly surprised to see first hand Medellin's impressive recovery from the

urban wars and drug cartel reign of terror a decade ago where still today locals remain missing and a drop in population as others fled in exile. Instead I experienced a vibrant business climate, warm greetings and extended hospitality in all corners of the city - - and, thanks to the local government, new infrastructure, housing and running water for so many previously displaced residents.

Why would Colombia's hotel and tourism industry put on such an event? I discerned two

(2) reasons:

1. Colombian hotels and M.I.C.E. venues are realizing now the real value and future potential of M.I.C.E. business; and
2. the symposium afforded COTELCO an opportunity to showcase both its current and future M.I.C.E. venues and its genuine interest in capturing a share of future hosted international M.I.C.E. events.

M.I.C.E. industry impact in the U.S.A.

As one of the two speakers from the United States, I was asked to present on the

impact of the M.I.C.E. industry in the U.S. - - its size, economic impact, jobs created, hosting venues, and marketing strategies and tactics used to grow the M.I.C.E. segment, sourcing various industry sources as well as my own research.

M.I.C.E.'s economic impact in the U.S.:

• Contributes $458 billion to the U.S. gross domestic product;
• More than the automotive manufacturing and air transportation industries;
• $1 trillion in total economic activity;
• $263 billion in direct spending;
• $14.3 billion in federal tax revenue;
• $11.3 billion in state and local; and
• Supports 1.7 million U.S. jobs.

U.S. lodging and event venues profile:

• 1.8 million meetings/events annually, comprising:
• 52% corporate/business meetings
• 25% "congresses" (conventions, conferences)
• 12% trade shows
• 4% incentives
• 7% others
• attended by 205 million people annually; and
• 250 million overnight stays annually.

Human capital value factor

U.S. M.I.C.E. events have great human capital value as well:

• Participation in off-site M.I.C.E. events makes employees feel more valued.
• Fortune 1000 chief marketing officers surveyed said business travel and M.I.C.E. event participation produced the highest return on investment of any marketing channel.
• Non-cash incentives (trips/events) are two-to-three times more effective in motivating employee performance.
• 5-percent-plus employee retention can generate a 25% to 85% increase in corporation profitability.
• Face-to-face meetings/trips build trust, opportunities for bonding, networking and growth.
• Such events are critical for strategic planning, corporate development, creating culture, strengthening business relations, and educating employees and customers.

I shared with the 200-plus attendees the key strategies and tactics employed by U.S.

hotels and destination marketing organizations in order to solicit and capture M.I.C.E. events in a very competitive market place.

My closing recommendations included:

• tapping into hotel brands, third-party intermediaries, and hospitality sales and marketing consultants for advice, sales training and lead generation;
• establishing local chapters of Meeting Professionals International, Hospitality Sales & Marketing Association International; and
• becoming active members of International Congress & Convention Association and International Association of Exhibitions and Events.

Other international speakers' contributions

Joe Goldblatt, Executive Director of the International Centre for the Study of Planned

Events, Queen Margaret University, Edinburgh, Scotland, spoke on innovation and creativity as a key in the industry of events.

A few of the topics and commentary from Goldblatt's presentation:

• The power of live events
• Aging and the impact on events
• Global warming and the environmental impact on events
• Event sustainability (economic, social, cultural, and political)
• Cyber security may make it difficult to protect privacy of individuals
• Attendees may be required to sign informed consent forms to participate.

Mari Carmen Obregón, professional meeting planner and CEO of Efecto Wow!, Mexico

City, presented ideas that help speed-up and make events memorable and surprising with innovation and creativity.

Fellow U.S.A. speaker Corbin Ball, Corbin Ball Associates, Bellingham, WA, the guru of

meetings and events technology, spoke on the top technology trends transforming meetings and events including social media, mobile technology, location-based technology, and hybrid meetings.

Other speakers presented on a wide range of topics that included positioning strategies

for a country to compete for global tourism events, the present and future of M.I.C.E. industry in Colombia and the competitive advantages of meeting and events sustainability.

The symposium concluded with a panel discussion and recommendations on risks in the

planning of events, conventions and trade shows (for more information on the Symposium, visit www.cotelco.org ).

Benchmarks bode well for Colombia as a global M.I.C.E. player

According to a Jones Lang LaSalle report "Lodging industry in numbers – Colombia

2012," Colombia is dominated by commercial demand given the increase in business activity and still-developing nature of the country as a tourist and group destination.

Future growth of M.I.C.E. business in Colombia appears to be very good. Less than 10%

of demand for Colombia hotel facilities today comes from the group side. That can be traced to the abundance of economy and limited-service hotels.

Bogota, with more than half of the country's hotel room inventory, boasts several group-

friendly hotels and high-capacity convention centers. Medellin's Plaza Mayor convention center is an excellent venue featuring a Great Hall that accommodates 3,000 people theater style.

The benchmarks bode well for Colombia becoming more of a player in the global

M.I.C.E. arena. Several global brands including Starwood and Hyatt have formed new viable partnerships with strategic local partners to develop properties ranging from luxury to upscale.

Development plans are driven by a number of factors, including Colombia's strong

economic outlook. It is the third most populous country in Latin America and among the 25 largest economies in the world. Colombia is on path to overtake Argentina in the next few years as third largest economy in Latin America, with real GDP annual growth expected to be 3.7% in 2013 and 4.2% in 2014, according to the International Monetary Fund.

The country also boats a newly acquired reputation as a business friendly country. Some

contributing factors, according to Jones Lang LaSalle:

Final memorable observations: a VIP tour of the entire city

introduced us to Medellin's modern Metropolitan rail transportation system and an elevated cable car system that takes passengers on breath-taking rides above the city to the top of the surrounding mountains and beyond. I saw new schools and a state-of- the-art library with a special children-only room loaded with computers.

We embarked from cable cars for a walking tour of the infamous Santo Domingo

neighborhood - - the very place where 10 murders a day once occurred. I couldn't help notice so many locals who lined the sidewalks staring at me. Granted, I stood out on the tour being non-Latino, over six feet tall, and with my all-white head of hair.

I asked one of the host committee members, "Are they looking at me?" "They think

you're Bill Clinton," he replied.