Executive Vice President Min Min-hong, head of the International Tourism Strategy Division at the Korea Tourism Organization (KTO) speaks at the 2016 Hangzhou Korea MICE & Culture Festival sponsored by the KTO at the Hangzhou Garden Hotel on May 20.

Korea’s efforts to nurture the MICE industry into a new growth engine have paid off. 

The nation placed 2nd in the world and 1st in Asia, setting the bar high by attracting 890 international conventions in 2015, following only the United States, which hosted 930 international meetings or conferences. The nation had ranked high in recent years: ranking 3rd in 2013 and 4th in 2014. 

The following are excerpts of an interview with Executive Vice President Min Min-hong, head of the International Tourism Strategy Division at the Korea Tourism Organization (KTO), in which he spoke of the Korean MICE industry and steps to boost the inbound travel industry.

Question: Of late, the MICE (meetings, incentive travel, conventions & exhibitions) industry has been highlighted as an industrial field creating added value. Will you tell our readers about the current status of the Korean MICE industry and major projects the KTO implements?

Answer: In accordance with the Act on the Nurturing of International Convention Industry, which was legislated in 1996, the KTO has carried out such functions as attracting international conventions, supporting hosting, promoting public relations abroad, gathering information and others boosting MICEs as a central international convention bureau. 

In 2009, the government designated the MICE industry as one of 17 new growth engine industries. In 2013, it set the realization of the Korean tourism industry based on multidisciplinary combination and convergence for creation of added values as one of 140 major state tasks. 

Thanks to the concentrated efforts to nurture the MICE industry, Korea has made strides: The nation saw its ranking in terms of hosting international conventions surge from 28th place to 2nd in the world. 

The MICE industry is recognized as a new growth industry that not only reinvigorates the national and regional economies, but also creates added values in consideration of rising awareness toward its direct and indirect spill-over effects.

Foreign tourists participating in MICE events have turned out to be staying longer and spending more than ordinary tourists, contributing to beating off-season woes and boosting foreign exchange earnings. Figures showed those attending meetings and conventions spent an average of $3,127 in 2015, 1.8 times more than ordinary tourists’.

Dignitaries attend a ceremony to open the Korea MICE Expo 2016 at Songdo Convensia in Incheon on June 8. (Photos: KTO)

Major Achievements

Korea placed 2nd in the world and 1st in Asia, setting the bar high, by attracting 890 international conventions in 2015, following only the United States, which hosted 930 international meetings or conferences. The nation had ranked high in recent years; ranking 3rd in 2013 and 4th in 2014.

The KTO offers financial support varying according to such evaluation categories as the size of the convention and possible spill-over effects, and support of each stage, ranging from attracting to publicizing and hosting. We’ve provided support to attract 45 international conventions, publicize 47 and host 183. 

We’ve provided specific support to attract 29 mid- and large-sized international conventions with more than 500 foreign participants, including the 12th IOHA International Scientific Conference, to be held in Daegu in 2020. Seventeen support cases, including the 12th World Biomaterials Congress, have been successfully attracted. 

The KTO has assisted the hosting of 23 international conventions, including The 12th World Congress on Computational Mechanics & 6th Asia-Pacific Congress on Computational Mechanics, in which 2,000 foreigners participated. 

For instance, about 45,000 people, including 21,000 foreigners from 153 countries, assembled for the 2016 Rotary International Seoul Convention at KINTEX north of Seoul from May 28 to June 1. Out of the attendees, 2,290 participated in 27 tourist products, including 561 on the Demilitarized Zone (DMZ) tour. 

A survey of 305 foreign attendees showed that the percentage of those who said they have a good image toward Korea jumped from 19.5 percent prior to visit to 65.9 percent after their visit. According to the survey, 97.4 percent replied that they were “satisfied” or “very satisfied.”

The KTO has joined forces with the private sector to diversify the countries “making incentive group tours” to Japan and Southeast Asia, a departure from its concentration on China. We’ve conducted joint marketing activities with foreign and Korean incentive tour agencies. 

About 48,000 foreign tourists from 21 large incentive groups, including 5,295 Chinese from the Guangzhou-based cosmetics company Aurance, came to Korea in 2016 on top of 180,000 incentive tourists from small groups who visited the nation for the eight months of the year. About 31,000 tourists from 10 large-size incentive groups are expected to visit Korea in the second half of the year. The nation has a target of a combined 280,000 incentive tourists in 2016, a 52 percent jump over 2015.

The KTO is firing on all cylinders to promote public relations and marketing activities as Korea’s destination of MICEs. We offer information on the Korean MICE industry to foreign media outlets, international organizations and potential buyers. We place joint image advertisements and hold online events with 10 MICE branch offices, inviting journalists to write stories on the Korean MICE industry. 

We endeavor to boost each region’s MICE industry and enhance its competitiveness by nurturing their own specialized convention industry in connection with its culture, social and strategic industries. 

Dignitaries attend a ceremony to open the Korea MICE Expo 2016 at Songdo Convensia in Incheon on June 8. (Photos: KTO)

Future plans

Incentive group tourists’ dependence on the Chinese sphere is too high as they account for 60 percent of the total. As part of efforts to diversify the market, the KTO has strengthened marketing activities to attract corporate meetings and incentive tour groups in Japan and Southeast Asia. We plan to hold road shows in Thailand in October, and Vietnam in December. We also have held or will hold explanation sessions in such places as Taiwan, Jakarta, Tokyo and Osaka on 17 occasions. 

We jointly participate in MICE fairs, including the IMEX America, to be held in October, and the IMTM World, slated for November, with the business community, or hold explanation sessions to ramp up publicity activities to attract added-value international conventions. We sponsor familiarization tours inviting overseas MICE dignitaries and journalists. Korean notables will be appointed as “civilian friendship ambassadors” to attract international conventions, which are large-sized, significant, and highly feasible. We place online and offline advertisements in about 20 media outlets in 10 core MICE areas, including New York, London and Tokyo, produce feature stories and hold events to enhance the image of the Korean MICE industry. 

Q: Will you explain Korea’s 2016 goal of attracting foreign tourists? What steps are in place to cope with South Korea’s decision to deploy a Terminal High Altitude Area Defense (THAAD) system against North Korea’s nuclear test and missile launch, which will likely have an adverse impact on the arrivals of Chinese tourists?

A: We have a target of attracting 16.5 million foreign tourists this year internally. Given stats showing that foreign arrivals stood at an estimated 11.46 million in the first eight months of the year, we see smooth sailing since the figure represents a 36.9 percent jump over the same period last year, and a 21.5 percent surge over that of 2014, when the nation was not hit by the Middle East respiratory syndrome (MERS) epidemic.

But Korea’s recent decision to install the THAAD system and the sagging Chinese economy are feared to dampen a rise in Chinese tourists after August. China has advised against official organizations’ taking trips here, indirectly restricting group tourist through travel agencies and associations and has discouraged the sale of South Korean tourist products in some Chinese areas. Negative articles from Chinese state-run media outlets have stoked adverse opinions, weakening demand for Korean tours.

The KTO operates a crisis management task force to cope with the repercussions of a possible future crisis and implements steps based on a plan on the implementation of special projects according to each market.

We focus our marketing activities on attracting targets that are less influenced by China’s political issues and government sanctions. We strive to explore new markets with a focus on university students, who are less sensitive to such political issues as the THAAD, third nationals and Muslims in Greater China. 

We’re seeking to develop products for fully independent traveler (FIT) students with local travel agencies. 

An Asian Korea Tourism SNS support group, the fifth such team, was activated in May 13 under the program called “Wow Korea Supporters” to help promote Korea tourism through SNS after traveling and experiencing Korea. 

The 41-member team covered Seosan, Taean, Gangneung, Jeongseon, Yeosu and Namwon on three occasions and posted 568 stories on the social network services. 

We plan to promote exchanges of such civilian organizations as swimming and angling clubs and Word Cup supporters’ groups, which are not as swayed by the Chinese government’s sanctions as other groups. We will come up with such high-end Korean travel products as 88 theme-based products tailored to meet needs travelers in Greater China and global tourist products. 

Premium content targeting family tourists and concierge services will be also pushed. 

The KTO is hitting the accelerator to expand projects to diversify inbound travel markets. We focus on marketing activities to explore Greater China markets, including Hong Kong and Taiwan. 

We aim to attract an additional 100,000 tourists from Greater China — 80,000 from Taiwan and 20,000 from Hong Kong. The KTO has an initial target of attracting 16.5 million inbound travelers, including 9.45 ethnic Chinese in Greater China — 8 million from China, 710,000 from Taiwan and 610,000 from Hong Kong. 

We plan to host such fall and winter marketing events as a year-end event designed to celebrate mutual exchanges of 1.5 million people between Korea and Taiwan. 

Korean local governments will hold joint explanation session to promote Korean autumn foliage and winter ski products in connection with the Korea Cultural Week in October. 

We aim to attract 2.3 million Japanese tourists in what is dubbed the Renaissance of Japanese Arrivals. 

“Korea-Gotochi” pay shuttle buses are operated on 10 courses to carry one-day round trip tourists, primarily FITs to the nation’s regions, including Chungcheongbuk-do, a newly added destination. We ramp up activities to attract Japanese FITs by utilizing the SNS platform “minakoera.jp” website with a membership of 9,385, which made its debut in late September 2015.

The KTO also aims to attract more tourists from Asian and Middle Eastern countries, focusing on three countries with high growth rates — Malaysia, Indonesia and Vietnam. We have a goal of attracting 2.35 million tourists this year, a 14 percent rise over 2015. 

We endeavor to explore long haul, added value markets in the Americas and Europe by releasing products associated with tours to Korea, China and Japan. 

Korean, Chinese and Japanese flag-carriers hold explanation sessions targeting travel agencies in the western United States. 

We plan to participate in the World Travel Market London 2016, slated for November, to publicize the PyeongChang 2018 Winter Olympic Games and local products. Medical service tour programs targeting the United States and Russia will be developed. 

Q: What steps does the KTO come up with to expand the Chinese inbound market?

A: We endeavor to improve infrastructure in five tour categories- accommodation, food, shopping, information, and transportation — to enhance Chinese tourists’ convenience. The KTO focuses on such things as accommodation and travel infrastructure improvement as well as product exploration in order to advance the realization of the goal of attracting 10 million and 20 million Chinese tourists in 2017 and 2020, respectively. 

Mid-low priced accommodations facilities for group tourists and those for FITs wanting to experience Korean lifestyles and culture will be expanded, and 37 university dormitories across the nation will be utilized as alternatives to cope with a shortage of accommodation facilities during summer and winter vacations. 

Such rental houses only for foreigners as Hanok Stay and Korea Stay will be expanded to 780, a three-fold jump.  

We’ve come up with steps to ease communication barriers at restaurants and explore diverse food tourist resources. 

Chinese on-line open market platform “Korea Station” has made its debut in May to attract tourists in Greater China. A selection of 88 “must-buy” Korean tourist products tailored to meet tourists in Greater China will be publicized on top of half-day and one-day tour programs for FITs jointly developed by local governments and RTOs.