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Growth & Employment Project (GEM) Federal Ministry of Industry, Trade & Investment World Bank Assisted Final report – Meetings, Incentives, Conferences & Events (M.I.C.E) Industry Value Chain Reliance Restricted 15 May 2018 | Version 1.0 15 May 2018 | Version 1.0 Reliance Restricted The Project Coordinator, Block G, Room 225, Old secretariat, Area 1, Garki, Abuja. Nigeria. Ernst & Young Nigeria Market Study Report - MICE Segment 15 May 2018 UBA House 10th Floor Dear Sirs, 57, Marina Lagos In accordance with your instructions, we have performed the work set out in your engagement agreement dated 11 September 2017 (the “Engagement Agreement”) in connection with the market study of four (4) value chains across different locations (the ey.com “Market Study”). Purpose of our Report and restrictions on its use This report was prepared on the specific instructions of the Federal Ministry of Industry Trade & Investment for the Growth and Employment (GEM) project objectives and should not be used or relied upon for any other purpose. This Report and its contents may not be quoted, referred to or shown to any other parties except as provided in the Engagement Agreement. We accept no responsibility or liability to any person other than GEM or to such party to whom we have agreed in writing to John Uwajumogu accept responsibility in respect of this Report, and accordingly if such other persons choose to rely upon any of the contents of Partner this Report they do so at their own risk. Transaction Advisory Services Nature and scope of the services T +234 1 844 9962 M +234 815 082 9090 The scope and nature of our work, including the basis and limitations, are detailed in our engagement letter. F +234 1 844 9963 E [email protected] This report comprises the MICE segment market assessment, where we have summarised our key findings, together with references to the supporting analysis. Our work commenced on 15 November 2017 and was completed on 23 February 2018, therefore, does not take account of events or circumstances arising after 23 February 2018. Whilst each part of our Report addresses different aspects of the terms of reference for this engagement, the entire Report should be read for a full understanding of our findings and advice. We appreciate the opportunity to provide our services to Federal Ministry of Industry Trade & Investment. Please do not hesitate to contact us if you have any questions about this engagement or if we may be of any further assistance. Yours faithfully, John Uwajumogu Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 2 of 64 15 May 2018 | Version 1.0 Dashboard 1 Background, objectives & s ... 7 Competitive landscape 2 Executive summary 8 Policy, legislation & case ... Table of contents 3 International overview 9 Business & policy factors ... 4 Nigerian overview 10 Risk assessment 5 Market sizing and growth ... 11 Strategic recommendation ... 6 Value chain 12 Appendices Background, Executive International Nigerian overview objectives & ... summary overview 1 2 3 4 Page 4 Page 7 Page 14 Page 18 Market sizing and Value chain Competitive Policy, legislation growth forecast landscape & case studies 5 6 7 8 Page 23 Page 27 Page 31 Page 39 Business & Risk assessment Strategic Appendices policy factors ... recommendat ... 9 10 11 12 Page 45 Page 50 Page 54 Page 61 Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 3 of 64 15 May 2018 | Version 1.0 1 Background, objectives & study methodology In this section Page Background, objective and study methodology 5 Definition of MICE 6 Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 4 of 64 15 May 2018 | Version 1.0 1 Background, objectives & study methodology 1 Background, objectives ... 7 Competitive landscape 2 Executive summary 8 Policy, legislation & case ... Background, objective and study methodology 3 International overview 9 Business & policy factors ... 4 Nigerian overview 10 Risk assessment 5 Market sizing and growth ... 11 Strategic recommendation ... 6 Value chain 12 Appendices Background Objectives of the assignment ► The Government of Nigeria has emphasized the importance of diversifying the economy, ► The objective of this assignment is to provide the GEM project with a deep market supporting sectors that have potential for growth and creating massive employment. understanding of selected value chains within Nigeria and an appraisal of their competitiveness in relation to other countries recognized for significant trading in ► In line with this commitment, the Federal Government has sought the assistance of the World Bank in supporting Micro, Small and Medium Enterprises (MSMEs) operating in different high these value chains and also increase growth and employment in participating firms in potential sectors throughout Nigeria. Nigeria. ► This analysis will be used to inform the development of GEM supported interventions, ► This support is being implemented under the Federal Ministry of Industry, Trade and Investment (FMITI) and operationalized in the Growth and Employment (GEM) Project by the Project as well as providing valuable insights to private sector value chain stakeholders, Implementation Unit (PIU). towards the goal of creating jobs and economic growth. ► The project focuses on manufacturing and service sectors, specifically supporting ICT, entertainment, tourism and hospitality, light manufacturing and construction. Study methodology We adopted three methodologies namely desk research, qualitative interviews with industry stakeholders and a quantitative survey on selected value chain players across several states in the locations listed below. The table summarizes the population samples of the primary research conducted. Location Event Planners Rentals Event Centers Entertainment Catering/Drinks Incentive Travel Sub-Total Lagos 98 96 95 60 58 95 502 Calabar 17 16 17 16 16 16 98 Abuja 51 50 50 50 50 50 301 Kano 18 16 17 16 16 18 101 Total 184 178 179 142 140 179 1,002 Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 5 of 64 15 May 2018 | Version 1.0 1 Background, objectives & study methodology 1 Background, objectives ... 7 Competitive landscape 2 Executive summary 8 Policy, legislation & case ... Definition of MICE 3 International overview 9 Business & policy factors ... 4 Nigerian overview 10 Risk assessment 5 Market sizing and growth ... 11 Strategic recommendation ... 6 Value chain 12 Appendices Overview The International Congress and Convention Association (ICCA) defines MICE as Meetings, Incentives, Conferencing and Exhibitions, a type of tourism in which large groups, usually planned well in advance are brought together for a particular purpose. The industry trending towards using the term 'meetings industry' to avoid confusion from the use of an acronym. Other industry educators are recommending the use of "events industry" to be an umbrella term for the vast scope of the activities in the meeting and events profession. Meeting: General term indicating the coming together of a number of people in one place, to confer or carry out a particular activity. Frequency: can be on an ad hoc basis or M according to a set pattern (e.g annual general meetings, committee meetings, etc.) Incentive: Meeting event as part of a programme which is offered to its participants to reward a previous performance. Incentive tourism is usually undertaken as a type of employee reward by a company or institution for targets met or exceeded, or a job well done. Unlike the other types of MICE tourism, incentive tourism (festivals & carnivals is I usually conducted primarily for entertainment, rather than professional or education purposes). Conference: Participatory meeting designed for discussion, fact-finding, problem solving and consultation. As compared with a congress, a conference is normally smaller in scale and more select in character - features which tend to facilitate the exchange of information. The term "conference" carries no special connotation as to frequency. Though C not inherently limited in time, conferences are usually of limited duration with specific objectives. E Exhibition: Events at which products and services are displayed. Recently, there has been an industry driven initiative to not use the "MICE Market" label and instead say "The Meetings Industry" which encompasses all the above. Most components of MICE are well understood in the market place perhaps with the exception of incentives. For the purpose of our report, the MICE sub-categories focus will be on Event Planning, Event Centres, Incentive Travel, Catering & Drinks, Entertainment and Rentals. We will detail our findings across four major locations: Lagos, Abuja, Calabar and Kano. Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 6 of 64 15 May 2018 | Version 1.0 2 Executive summary In this section Page Summary 8 Strategic recommendation and road map 13 Growth & Employment Project (GEM): Federal Ministry of Industry, Trade & Investment | Page 7 of 64 15 May 2018 | Version 1.0 2 Executive summary 1 Background, objectives & s ... 7 Competitive landscape 2 Executive summary 8 Policy, legislation & case ... Summary 3 International overview 9 Business & policy factors ... 4 Nigerian overview 10 Risk assessment 5 Market sizing and growth ... 11 Strategic recommendation ... 6 Value chain 12 Appendices Background and Objectives of the study International overview ► The Government