The G20 meetings held under India‘s Presidency have not only acted as a pivotal platform for the country but also brought forth a windfall for its tourism sector, particularly in the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment. With over 200 meetings, the G20 in India showcased the country’s ability to host global events while reaping the rewards of a thriving tourism industry.
Recently, Prime Minister Narendra Modi mentioned in one of his statements that India, across its various states, union territories and cities has so much potential to welcome, host and connect with the world. He said that by the time India’s G20 Presidency wraps up, more than 220 meetings have been held across 60 cities, spanning all 28 states and 8 union territories. These events engaged over one lakh participants representing approximately 125 nationalities, offering them a glimpse of Indian skills and hospitality.
Additional Secretary at the Ministry of Tourism, Government of India, Rakesh Kumar Verma, hailed the organisation of G20 meetings across Indian cities as a ‘visionary and bold move’. “All these cities spruced up their infrastructure, facilities and capacity of service providers and successfully organised the G20 meetings demonstrating their readiness to host any prestigious event, which has strengthened India’s position as a MICE destination,” he told ETTravelWorld.
Not only did these meetings push the graph up for regional tourism but they also coincided well with the recent launch of Bharat Mandapam, India’s largest Convention Centre at Pragati Maidan, Delhi. Built at a cost of INR 2,700 crore and spanning 123 acres, it boasts 24 meeting rooms, a G20 summit room, two auditoriums (600 and 900 capacity), and a 3,000-seat amphitheater. In total, it can accommodate around 14,000 people, surpassing Australia’s Sydney Opera House in size.
Inaugurated in the G20 year, Bharat Mandapam is also the chosen venue set to host the G20 Summit in Delhi from September 8 onwards.
Other than this, Dwarka in New Delhi is also awaiting the launch of IICC, the country’s other largest convention and exhibition centre, scheduled for its Phase 1 opening in October this year.
“Around 83 per cent of conferences worldwide have fewer than 1000 attendees, and most major Indian cities can comfortably accommodate such events within their hotels and venues. We possess the necessary infrastructure including the Jio Convention Center, multiple venues in Kolkata, the upcoming facility in Dwarka and more,” asserted Chander Mansharamani, Chairman – ICC Tourism Committee.
“With several international delegates from invitee countries, international organisations and media representatives visiting India, these meetings have had a notable impact on sectors including hospitality, transportation and tourism,” added S D Nandakumar, President & Country Head – Corporate Tours, SOTC Travel.
Jumping on the bandwagon, the Ministry of Tourism plans to launch a campaign to promote India as a MICE destination.
Manisha Saxena, Director General of Tourism, Government of India, emphasised that the Ministry of Tourism has meticulously selected the 57 locations where the G20 meetings took place. These locales are now earmarked for dedicated promotion as MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism destinations. “Collaborative planning is in progress to execute active campaigns in the near future in ongoing dialogues with state tourism departments,” she added.
Saxena also highlighted the recent launch of the Wedding Tourism Campaign by the Ministry as part of their strategic initiatives.
The G20 Tourism and SDG Dashboard is a comprehensive online public platform, consolidating the collective knowledge of the G20 Tourism Working Group. It includes the GOA Roadmap, survey results, case studies, and best practices from G20 countries. The dashboard offers insights into sustainable tourism practices and provides a platform for knowledge exchange, collaboration, and growth.
Effective marketing & policies, not just lip service, say stakeholders
Despite these global level events lending push to the local economies, building city infrastructure and enhancing the MICE ecosystem, the experts feel that much more work needs to be done to increase India’s share in the global MICE segment – which by last year, stood at just one per cent.
“We are potentially on the brink of a prosperous decade ahead that will be driven by sustained economic growth. However, I think there is very little, if any, emphasis on tourism other than lip service once or twice a year, given the fact that the industry has a limited influence on policies,” said Ajay Bakaya, MD, Sarovar Hotels.
“We, as associations, have been actively fighting for our two crucial demands: obtaining infrastructure status and industry status for hospitality. Infrastructure status would provide access to lower tax and longer-term loans, providing investors confidence. While some states have declared hospitality as an industry, there’s been little progress at the national level,” he added.
To truly develop tourism and encourage investments in the hotel sector, Bakaya feels that significant changes are needed in government policies and structures.
“The hotel infrastructure supporting MICE involves substantial capital expenditure, lengthy approvals, high land costs, and steep interest rates. While the change won’t happen overnight, India has seen considerable transformation in the last decade,” Bakaya noted.
While there were over 200 meetings during the presidency year, not all locations had suitable infrastructure for hosting events, added Mansharamani. He said that many places lacked the necessary facilities for hosting large-scale meetings and for a few meeting venues like Rann of Kutch in Gujarat which has nill air connectivity, delegates were hosted through charter flights.
“What we could have done was to identify and promote cities with the right facilities for conventions and meetings, accommodating at least 300 to 500 people. Undoubtedly, India has gained visibility through the G20 meetings, both domestically and internationally. Still, we must be realistic in our approach to identify and market destinations effectively,” he said.
Marketing, he asserted, plays a crucial role in promoting India as a MICE destination and currently, there’s a massive lack of comprehensive marketing efforts.
“After the G20, India should consider conducting roadshows globally and within India, leveraging the fact that 68 per cent of international associations have a presence here. The government needs to take the initiative to market India’s infrastructure effectively. While India boasts excellent venues in cities like Delhi, Mumbai, and Kolkata, these need better promotion through a strategic marketing plan,” he added.
Giving an instance, he added that there are 70 conference venues in India that have recently come into notice, a fact that took him by surprise despite his four decades of experience in this industry.
Amaresh Tiwari, Vice Chairman of ICPB, emphasised that although our country has proven its capability to host significant events in various cities and brought a visible change to the MICE landscape, he expressed concerns about restrictions on common life ahead of the summit in Delhi. “The pressure city infrastructure is facing is immense, because of the VVIP presence,” he said.
He further stressed the need to have a comprehensive MICE strategy to ensure smooth public life during such events, comparing it to how global cities manage UN events without disrupting public activities.
Given the current scenario, the aspects including prioritising safety and security, reciprocal commitments for global travel, agile marketing campaigns by Convention and Visitors Bureaus and city administration, leveraging AI and digital innovation, focusing on legacy, internal re-skilling, and increased government support, are key to bridge the gaps, according to Tiwari.
The Silver Lining
Undoubtedly, India’s G20 Presidency created a valuable opportunity by putting India’s MICE capabilities into the spotlight like never before. Being bullish on the opportunity and recording the surge in business, Thomas Cook (India) Ltd. saw between 60 to 70 per cent jump in bookings from corporates during the presidency year.
“As an empanelled event partner for the G20 Summit, our MICE Team was contracted to manage approximately 33 per cent of the overall business,” said Meera Charnalia – Executive Vice President and Head – MICE, Thomas Cook (India) Ltd.
Thomas Cook India managed multiple domestic MICE events across Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Goa. The Company’s MICE team has also managed inbound groups – 400 customers in the National Capital Region, 300 delegates in Delhi from across 32 countries and 6000 delegates from across 130 countries including UK, USA, Africa, Australia and Singapore – in Mumbai.
The demand during the G20 meetings caused a 20-30 per cent increase in premier hotel tariffs, resulting in nearly full occupancy. This led corporates to book accommodations in surrounding areas, such as Gurugram before the G20 Summit in Delhi.
A recent update says that approximately 3,500 rooms across large and mid scale hotels in Delhi and Gurugram have been booked to cater to the summit in the capital, which is expected to be attended by leaders from the world’s largest economies, representing about 70 per cent of the global tourism market.
The Southern group of hotels, owned by Krishna Mohan Alapati, also witnessed a 30 per cent surge in inquiries, especially for the dates coinciding with the G20 summit and the company is anticipating near-full occupancy similar to peak seasons.
“While some 5-star hotels have hiked rates by up to 400 per cent, we’ve chosen a conservative approach, maintaining standard pricing but monitoring the situation closely. Our priority is striking the right balance between affordability for our guests and capitalising on the heightened demand generated by the G20 meetings,” Alapati added.
Adding to this, SOTC’s Nandakumar said that with the unprecedented demand during the G20 meetings, room rates for premier hotels witnessed an uptick of approx. 50 per cent surge with nearly 100 per cent occupancy.
Bakaya explained that the G20 had the most significant impact on the upscale hotel segment, while the mid-scale sector saw limited effects, primarily in certain cities. Sarovar Group, his hotel brand, experienced a 5 to 10 per cent rise in bookings during specific events. However, during the G20 summit in Delhi, he observed that many people opted to leave the city for an extended weekend, benefiting hotels in places like Jaipur and Agra. This surge in demand also provided a welcome boost to hotels in hill stations.
Tiwari added that while high-quality hotels were used, there was a significant emphasis on utilising local products, boosting cities’ confidence to host future events.
In addition to benefiting tourism businesses and hotels, the G20 Meetings transformed local tourism in various states and UTs. A significant example is the G20 Tourism Working Group Meeting in Kashmir, which significantly boosted foreign tourist arrivals (FTAs). The tourism department reported a substantial increase in FTAs after the three-day event. Additionally, several national and international corporate bodies and companies have also planned their events in UT, attracting high-profile dignitaries to the region..
For Uttar Pradesh, these meetings held in its various districts have already begun to benefit the state’s tourism sector. “Multiple development authorities and smart city initiatives implemented interventions that significantly improved the cities’ visual appeal. This transformation will undoubtedly shape the perception of Uttar Pradesh, which is no longer depicted as it was in old movies. It is now recognised for its law and order, excellent infrastructure, and well-planned urban aesthetics, dispelling the outdated notion of lawlessness,” said Prakhar Mishra, Director Tourism, Uttar Pradesh Govt.
The way forward
As the G20 baton passes to the next nation, India’s legacy remains imprinted on the platform. The country’s ability to orchestrate over 200 meetings across 60 locations showcased its organisational prowess.
However, the key to long term success and bringing international level events to India, is holding on to the capabilities and sharpening them according to the MICE sector needs.
Experts unanimously supported a multifaceted strategy encompassing economic growth, year-round appeal, high-value tourism, infrastructure development, and the enticing prospect of extended stays for MICE participants.
Alapati added that these strategic pillars will not only position India as a coveted global hub for conferences and events but also assure the enduring growth and influence of the MICE sector on the nation’s economy.
The country’s one per cent share in the global market is a mere fraction of its potential. “To improve our market share, we must address the gap between our capabilities and the actual business we attract,” added Mansharamani.
To promote MICE more effectively on an international level, India should take concrete actions, stressed Tiwari, adding that the government should support the Indian Convention Promotion Bureau (ICPB), provide bidding support, and fund marketing campaigns.
“Creating a separate MICE brand like ‘Meet in India’ is a step in the right direction. However, additional measures include collaborating with structured partners for well-designed events, establishing a clear purpose, focusing on content delivery and audience experience, engaging stakeholders, considering a shared risk model in uncertain situations, and continuously reimagining and redesigning events with attendees’ needs in mind,” he said.
Charnalia stressed that the MICE industry in India requires sustained support from the government towards policy/regulations, outstanding infrastructure for meeting, accommodation and entertainment, better connectivity and marketing, to sustain long term impacts and results.
“The government needs to create a progressive and inclusive tourism policy, involving the senior industry experts and a think tank to contribute ideas,” added Bakaya, advocating for a dramatic shift in the tourism policy to foster growth.
With a year filled with approximately 220 meetings, including the 8th BRICS Summit in Goa and the 2nd FIPIC Summit involving numerous Pacific Island nations in Jaipur, India stands at a pivotal juncture. The time is ripe for India to seize the opportunity to sharpen its MICE sector prowess; otherwise, a missed chance may prove challenging to recover from.
Logically the benefits of G20 could flow only in the long term. The great challenge in the post G20 period will be to sustain these initiatives. Naturally the states will have to play the key role, providing a suitable policy framework, putting together an atmosphere where doing business is easy and creating a suitable climate for constructive partnership with the private sector.
