Project Report for the MICE Sector

Introduction

The World Association of Travel Agencies is an accredited institution mandated to meet the diverse needs of both leisure and business tourism. It is an institution with a robust corporate social responsibility policy and as such, is heavily inclined towards becoming a full fledged green organization. In August of 2016, the institution will be holding a three day conferences estimated to attract about 250 participants. The participants are expected to come from different nations as the conference is aimed at reaching out to a global audience. Participants will include government officials, personnel as well as other major stakeholders in the industry. It is important to point out that the participants will also include prominent individuals from various commercial and academic establishments. The conference is expected to appeal to both genders in equal measure and will be held in the city of Aqama in Jordan.

Primary infrastructure

The Kingdom of Jordan boasts over 18,600 hotel rooms whereby, more than 60% are accredited as being in the 4 and 5 star classifications (Alhroot 2007, p. 19). The bulk of rooms in the country are concentrated in its capital, then in Aqaba, the Dead Sea and in Petra. There are over 70 venues in Jordan bearing an adequate capacity to host all manner of meetings. This includes three stand alone convention centres with two located in the Amman region and the other along the Dead Sea regions. The over 70 hotel establishments account for more than 11,700 guest rooms with about 16% associated in Aqaba (Alhroot 2007, p. 21). Expected MICE sector developments within the nation’s tourisms and hospitality industry in Aqaba could be a powerful marketplace signal about Jordan’s developing MICE significance. The present infrastructure is of commendable quality and is regarded as adequate for the short term projections concerning the MICE sector requirements (Saoudi 2006, p. 15).

Connectivity

Jordan’s airports have a solid capacity records, operating nearly 5 million confirmed flight seats via more than 34,200 flight arrivals in 2014 alone through 38 different airlines from 36 countries (Alhroot 2007, p. 44). Domestic flights connectivity between the cities of Amman and Aqaba is however limited as well as inconvenient. Public transportation within and between destinations in the country is also not at optimal levels and may require the conference attendees to rely on private transportation that is often expensive (Saoudi 2006, p. 17). The Jordan civil aviation authority provides that high taxes and mandatory fees charged for international air flight arrivals in Jordanian airports (Chiu and Ananzeh 2012, p. 62). As such, this inhibits international route growth to support the development of the MICE sector industry competitiveness. Jordan’s connectivity may be adequate for the present demand but is both constrained and expensive thereby putting the country’s hospitality and tourism industry at a marked disadvantage in comparison to its competitors in the global markets (Saoudi 2006, p. 18).

Industry Operation and Leadership

There is an urgent need for the government to establish a robust national business unit or institution that will consistently market and sell Jordan as a viable MICE destination (Harahsheh 2009, p. 15). The Jordan Tourism Board (JTB) recently opted to focus on leisure tourism marketing activities incorporating the entire country rather than the individual destinations (Alhroot 2007, p. 48). However, a direct sales or call to action initiative is lacking as only brand positioning is in place. It is important to note that a National Tourism Strategy is in place though the implementation process is inconsistent and slow. The JTB also has budget allocations aimed at attracting and promoting global events which are also inconvenient and small. The MICE sector in Jordan is in essence not effectively organized (Chiu and Ananzeh 2012, p. 64). Stakeholders often pursue individual interests is apposed to seeking collaborations towards developing and delivering a uniting vision that contributes to success of the sector in the marketplace. A poor continuity record of programs pushed for by the government is evident as is the government’s leadership (Harahsheh 2009, p. 15). For instance, the country has had 13 different Tourism ministers in the last decade have led to a situation where there is no direct or limited policy support or investment for MICE sector development in Jordan. Jordan’s MICE sector labour force lacks internationally recognised training thus inhibiting development of an appropriate MICE sector mind-set as separate from leisure tourism and appraise is as an international MICE marketplace that is credible to supports it as a diversified destination brand (Chiu and Ananzeh 2012, p. 68). Jordan should also take a proactive approach to embracing MICE sector leadership in the region as well as establish a dedicated institution for such development.

Business and Social Diversity

Jordan is politically and economically sound country though this aspect is commonly misconstrued in the international marketplace. The country has the capability to ensure delivery of compelling and relevant local MICE sector content experiences in an effort to further appraise delegates’ experiences and support the primary business goals of MICE stakeholder organizations. It is important to note that Jordan is in essence an acknowledged leader in the region concerning the pharmaceutical, medical and humanities fields. This has been enabled by concerted efforts from supportive leaders focused on enabling more international MICE events to the country. In comparison to other regional competitors, this country accords great diversity relative to locally genuine tourist experiences and products (Beirman 2002, p. 167). Its business and social diversity is another compelling aspect but the largely unmentioned element of the county’s marketplace value proposition. Jordan’s main external challenge stems from the market’s knowledge deficiency concerning the value proposition of the MICE sector, its socio-political certainty and its original Arab experiences. There is also the global perception that the country is as insecure as the neighbouring countries (Beirman 2002, p. 168). There is also the misconception that political crises amongst the neighbouring countries also have similar impacts in Jordan. Jordan also lacks a consistent and definitive MICE value proposition (Zamil 2011, p. 42). It is a country that can offer a consistent and genuine Arab experience that’s unique from similar products from its competitors. The country is also for its unique incentive travel experiences.

Proposed Budget

The organizing committee has proposed a budget of 205 pounds for each participant which does not appropriate for accommodation and flight expenses into and out off Jordan. The event is slated to cover a total of three days whereby a networking exercise which will also pair as a teambuilding activity will be heal on the first day. This will involve refreshments and lunch for the participants as well as hiring of teambuilding exercise equipment at about 80 pounds per participant. On the second day, optional leisure activities will be accorded to participants. Participants may opt for a tour around the city to visit institutions and locations where the green initiative is taking hold in Jordan. The budget for the second day is also budgeted at 80 pounds per participant. The final day will involve a formal evening dinner along with entertainment and is budgeted at 90 pounds per participant.

Marketing Plan

World Association of Travel Agencies is responsible for the optimum positioning Aqama, Jordan as a unique MICE destination.

Pricing

World Association of Travel Agencies members are fully able to provide value for money for money MICE solutions. The cost of hotel accommodations as well as venue rentals is essentially competitive as conference rates are aligned to airlines serving the region (Harahsheh 2009, p. 15). Price is a significant selling point for the hosting meetings within the region.

Promotion

World Association of Travel Agencies will also promote Jordan in the international Meetings, Incentive, Conferences and events (MICE) market through various advertising campaigns, market sales events and promotional literature (Harahsheh 2009, p. 15). As such, familiarization site inspections and tours will be employed to offer follow-throughs relative to promotional activities so as to offer prospective conference participants a first-hand understanding of Jordan.

Promotional Material

The sales kit will feature novel branding together with a catching tagline, ‘Experience Jordan’ as well as other supporting graphics. The novel branding will utilise assorted image selection of activities, attractions and venues (Chiu and Ananzeh 2012, p. 267). This kit will include advertising, a PowerPoint template, add-on brochures, presentation CDs, sales brochure as well as exhibition booth graphics. The organization’s website, rack cards, virtual visit and any other relevant additional materials will be periodically updated to ensure a consistent overall image that is easily recognizable with the green initiative (Hazbun 2006, p. 205). The material will also outline services offered by the World Association of Travel Agencies, describe the accommodations and meeting facilities available in Aqama and subsequently promote for extended stays by the conference delegates (Hazbun 2006, p. 207). Distribution is to be through in-market sales events and also as part of the different follow-up packages on offer for contacts.

Advertising

The World Association of Travel Agencies will select publications ideal for optimised media placement that will address geographic markets and as such, will specifically target to meeting stakeholders in government, associations and industry (Chiu and Ananzeh 2012, p. 267). The marketing plan will involve the creation of a dedicated website that will promote optimization and seeding of the planned conference. This is projected to drive potential conference participants to the World Association of Travel Agencies website (Zamil 2011, p. 42).

Trade Show Program

Attendance at major marketplaces and trade shows is a critical component this particular marketing program (Alananzeh 2012, p. 20). Participation in such events offers the prime opportunity to develop new contacts as well as cultivate relationships with major decision-makers. Maximizing exposure in such trade shows will be buoyed by greater participation in sponsorship opportunities (Mustafa 2012, p. 9).

Market Sales Events

Direct sales requires for the provision for opportunities to further develop viable relationships between clients and the different destination partners (Alananzeh 2012, p. 23). The World Association of Travel Agencies will also formulate targeted sales events in tandem with Trade Show opportunities towards meeting with the many planners personally and eventually follow up on acquired leads. Sales luncheons will be incorporated into the in-market sales initiative. Industry and sector stakeholders will be openly invited to participate (Alananzeh 2012, p. 23).

SWOT Analysis

The World Association of Travel Agencies holds the perception that the country has the opportunity to consistently improve the tourism industry in line with its macroeconomic ambitions. This is possible through producing, organising and securing more MICE events for international as well as national agendas.

Strengths

The country’s infrastructure offers commendable meeting spaces to attract as well as host different events subject to demand (Hamarneh 2015, p. 12). The quality of accommodations is of international repute as is the country’s highways and modernised airports. Jordan’s connectivity is another commendable strength as it’s strategically situated to appeal to clients from Asia and Europe (Mustafa 2011, p. 7). The MICE organisers in the country are professionally trained such that the service delivery, attitude, quality and reliability are guaranteed (Hamarneh 2015, p. 12). The country’s stability, excellent weather, unique cuisines and authentic culture also add to the suitability of Jordan as a prime MICE destination.

Weaknesses

The country’s operations and leadership is perceived as one of the major weaknesses affecting its MICE sector (Beirman 2002, p. 168). The Tourism Ministry is also not proactive towards promoting the country as a prime MICE destination. The sector also suffers a significant shortage of professionally certified personnel. The excessive control procedures and regulations make it difficult for new entrants to venture into this particular sector (Hazbun 2006, p. 210).

Opportunities

A host of opportunities are available for the MICE sector in Jordan. For instance, most competitors in the region offer more expensive services while failing to offer unique experiences (Christian, Fernandez-Stark, Ahmed and Gereffi 2011, p. 67). Relative to its connectivity, the country should be keen on increasing the numbers of international flight by appropriately reducing associated taxes. Jordan continues to be considered as an unknown MICE destination and promoting it as a prime destination can serve to improve the performance and contributions to the country’s overall tourism industry (Christian, Fernandez-Stark, Ahmed and Gereffi 2011, p. 67).

Threats

Geopolitical conflicts in the Middle East remain a significant threat (Beirman 2002, p. 168). The fact that the country has no clear policy for the MICE sector impedes its development as such as its hospitality and tourism industries thrive. There are also countries in the region with lower value propositions and more so, better infrastructure, connectivity and social diversity.

Recommendation

As this paper has provided, Jordan is a country with significant infrastructure developments, standard connectivity and a unique Arabian experience. It is therefore a suitable destination for the planned green initiative event and as such, this will play an important role in appraising the MICE sector in the country. However, it is important to consider the threats the face the country by reason of its geopolitical status. As such, it is recommended that the budget be increased by 50 pounds to counter for any arising security contingencies. Given the international audiences that the event will attract, it is envisaged that the Jordanian government will ensure that all delegates are ensure of maximum security during the three days of the event.
References

Alananzeh, O.A.A., 2012. The Roles and Importance of Promotion Tools and Destination Attributes of Mice Tourism on Jordan’s Destination Image Formation (Doctoral dissertation, Universiti Utara Malaysia).

Alhroot, A.H.H.J., 2007. Marketing of a destination: Jordan as a case study (Doctoral dissertation, University of Huddersfield).

Beirman, D., 2002. Marketing of tourism destinations during a prolonged crisis: Israel and the Middle East. Journal of Vacation Marketing, 8(2), pp.167-176.

Chiu, L.K. and Ananzeh, O.A., 2012. Evaluating the Relationship between the Role of Promotional Tools in MICE Tourism and the Formation of the Touristic Image of Jordan. Academica Turistica-Tourism and Innovation Journal, 5(1), pp.59-73.

Chiu, L.K. and Ananzeh, O.A., 2012. The role of MICE destination attributes on forming Jordan touristic image. Academic Research International, 3(1), p.267.

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Hamarneh, I., 2015. Tourism in Jordan–Current Situation and Future Development. Journal of Tourism & Services, 6(11).

Harahsheh, S.S., 2009. An evaluation of the image of the Hashemite Kingdom of Jordan in the British and Swedish markets and the implications for marketing the country as a tourism destination (Doctoral dissertation, Bournemouth University United Kingdom).

Hazbun, W., 2006. Explaining the Arab Middle East Tourism Paradox. The Arab World Geographer, 9(3), pp.201-214.

Mustafa, M., 2011. Potential of Sustaining Handicrafts as a Tourism Product in Jordan. International Journal of Business and Social Science, 2(2).

Mustafa, M.H., 2012. Improving the contribution of domestic tourism to the economy of Jordan. Asian Social Science, 8(2), p.49.

Saoudi, R.H., 2006. Recovery from crisis: Jordan tourism facing political instability.

Zamil, A., 2011. The Role of Jordanian Local Community in Marketing Tourism. Journal of Business Studies Quarterly, 2(3), p.42.