SINGIDUNUM UNIVERSITY Department of Postgraduates Studies Study Program Business Systems in Tourism and Hospitality MASTER THESIS MICE Tourism and Sustainable Development - The Challenge and Potential for Belgrade Mentor: Candidate: Professor Jovan Popesku, PhD Sladjana Skopljak Kresović 405638/2013 Belgrade, July 2015 TABLE OF CONTENTS Introduction ......................................................................................................................................3 Subject of the research .....................................................................................................................5 Goal of the research .........................................................................................................................5 Research hypotheses ........................................................................................................................6 Research methods ............................................................................................................................6 PART ONE – MICE TOURISM IN THEORY AND PRACTICE 1.1. Definition of MICE tourism.................................................................................................6 1.2. The MICE industry in figures ..............................................................................................7 1.3. Typology of MICE tourism .................................................................................................8 1.3.1. Meetings ...................................................................................................................9 1.3.2. Incentives ...............................................................................................................13 1.3.3. Conferences............................................................................................................13 1.3.4. Congresses ............................................................................................................14 1.3.5. Conventions ..........................................................................................................14 1.3.6. Exhibitions ............................................................................................................15 1.3.7. Non-Standardized Terminology...................…………………………….……….16 1.4. The stakeholders of the MICE Industry .............................................................................16 1.4.1. Suppliers ................................................................................................................16 1.4.2. Byers ......................................................................................................................19 1.4.3. Intermediaries ........................................................................................................21 1.5. The concept of marketing and its importance for MICE industry .....................................22 1.6. Austria Center Vienna........................................................................................................24 PART TWO – IMPORTANCE OF SUISTAINABILITY IN THE MICE INDUSTRY 2.1. Definition of sustainable development ..............................................................................25 2.2. The concept of sustainable development and its importance for MICE industry ..............26 2.3. Economic benefits and environmental issues ....................................................................26 2.4. The stakeholders of the MICE Industry and their role in the sustainable development ......................................................................................................................29 2.4.1. Suppliers ...............................................................................................................30 2.4.1.1. Destination ................................................................................................30 2.4.1.2. Venues.......................................................................................................31 2.4.1.3. Other suppliers .........................................................................................33 2.4.2. Byers ......................................................................................................................33 2.4.3. Intermediaries .......................................................................................................34 1 PART THREE – THE CHALANGE AND POTENTIAL FOR BELGRADE 3.1. Position of Belgrade on the tourist market ........................................................................35 3.2. Characteristics of MICE industry in Belgrade ...................................................................40 3.3. Stimulating environment – Reasons for choosing the city of Belgrade for MICE destination ...............................................................................................................41 3.4. Resources of MICE tourism...............................................................................................42 3.4.1. Venues....................................................................................................................42 3.4.2. Hotels ...................................................................................................................46 3.4.3. Transportation ........................................................................................................48 3.4.4. Attractions ..............................................................................................................50 3.5. Destination and venue marketing.......................................................................................51 3.6. SWOT analysis of competitive position of Belgrade ........................................................53 PART FOUR – DIRECTONS FOR BELGRADE MICE INDUSTY 4.1. Belgrade MICE industry in the frame of sustainable development ...................................56 4.2. Participation in international institutions and adoption of sustainable development standards ......................................................................................................58 4.3. Position of MICE tourism resources in sustainable development .....................................59 4.3.1. Venues ...................................................................................................................59 4.3.2. Hotels ...................................................................................................................62 4.3.3. Transportation .......................................................................................................65 4.3.4. Supporting infrastructure ......................................................................................67 4.4. Sustainability issues ..........................................................................................................69 4.4.1. Tourist satisfaction .................................................................................................69 4.4.2. Community satisfaction and economic benefit for host .......................................70 4.4.3. Destination planning and controlling ....................................................................71 4.4.4. Sustainability of tourism operations and services ..................................................72 4.5. Roles of Government and Public Sector ...........................................................................72 PART FIVE– CONCLUSION AND RECOMMENDATION ....................................................74 LITERATURE ..............................................................................................................................76 Appendix 1 ....................................................................................................................................80 2 Introduction The MICE tourism refers to meetings, incentives, conferences and exhibitions. It is one of the most important sectors within global tourism industry. Driven by the globalization and increase in cross border trade, business tourism has been growing over the past few decades and becoming one of the most rewarding type of tourism for the development of a certain destination. This type of industry also creates employment opportunities and generates foreign exchange. Even of this very important impact for development of economy and balance of payments for each country, until 80s, business travel did not have right position on the tourism market. According to R. Davidson: “Despite the huge economics importance and its very considerable contribution to the development of world trade and commerce, business travel in its many forms has remained, until recently, the Cinderella sector of the travel and tourism industry- at least in academia. “ 1 Nowadays, business industry as integral part of tourism industry is recognized and highly valued in theory and practice as generator of development and vital source of income for many countries. For this reason business travel and tourism in many countries holds a very important position in development strategies. Austrian National Tourist Office has been promoting Austria as “convention land” with 2 opportunities to” combine work and pleasure” and “offers something to fit every taste” With the slogan “There is nothing like Australia. For incredible business events” Australia is promoting business tourism. Beyond all these simple sentences is a great effort and coordinating action from