Subvention and other MICE challenges

According to the Oxford Dictionary, subvention is defined as “grant of money especially one from government in aid of an institution”’.  In MICE terms there are a number of variations including hard cash for securing international association conferences such as sponsoring functions, site inspections and the like.  The subvention bottom-line for just one conference can amount to many barrels of money. This could be the very reason the National Convention Bureau is covering all the bases to ensure the return on investment is one hundred percent assured.

Despite the media reports of tens of millions of rands being spent on a number of public sector-type gatherings which have left tax-payers breathless for all the wrong reasons – the National Convention Bureau via SA Tourism through to the Department of Tourism will allocate a mere R38m to this endeavour.

As a long-haul destination from the main international association markets, many of whom would not consider leaving their continent let alone logistically considering travelling to darkest Africa especially the foot of the continent, the percentage of this market for high capacities of over 500 are seriously limited.

Doubtless much research has gone into tapping the statistics of what is worthy of putting forward a subvention and in particular those international association’s RFP that should not be touched with a barge pole.

The Academy has met with a number of association decision-makers – some with genuine intentions of pursuing the African destination while other association’ committee members are renowned for going along for the freebies without the vaguest intention of recommending South Africa. But then what’s new? A number of South African hosted buyers to the major international shows and national hotel group’s elaborate site inspections are faced with the same challenges.

Perhaps several other promotional angles should be considered – but that is a vast subject which takes creativity and bold decisions.

MICE challenges abound and until the entire South African industry takes stock of acceptable standards which are taking place in other industry sectors (see ‘Raising the Bar’ published 5^th July – www.miceacademy.co.za  side-bar Editorial Archives) the private sector organisers will continue to seek their own means of ‘subvention’.