Telangana Bolstering MICE for Growth - Feature

As India strives to increase its current share of the global Meetings, Incentives, Conventions, and Exhibitions (MICE) market to significantly impact our economy, the exhibition or event industry in Telangana, particularly in Hyderabad, is thriving. The city has emerged as a preferred destination for attracting investors and organizing significant events. Here's an overarching perspective on the state's MICE industry, the government's offerings, and the way forward... 

The MICE sector has been a major economic driver since the global economy began to recover from the effects of COVID-19. According to market research, the developed economies of the United States and Europe have reached their maximum capacity, while the Asia-Pacific region is quickly becoming the next hotspot for the international Convention and Exhibition industry. This development presents an excellent opportunity for India, which would benefit from exploring its potential and reviving demand in this sector. 

India is a promising new market for corporate travel since its destinations offer the ideal balance of factors crucial to the expansion and maturation of the MICE industry, as dictated by international standards. 

Demand Patterns and Indications 

Despite a two-year COVID-19 pause, MICE tourism appears to be regaining momentum and will remain among the most critical revenue producers. India's enormous outbound MICE and Business Travel sector is anticipated to be valued at roughly US$93 billion by 2030, with a resurgent outbound tourism market worth US$45 billion. The Indian Hospitality sector expanded substantially in the second quarter of 2022 (April-June), thanks mainly to the rising demand for MICE and business travel. 

Regarding the Indian corporate market, India is positioned for incredible growth in MICE, generating opportunities for domestic and foreign industries. It is an ever-changing market with its own expectations and a maelstrom of change, so having a better perspective on finding opportunities can do wonders for the  

Indian MICE and Tourism sectors in general. Sustainable growth in this industry is being ensured with the backing of the State and Central Governments. The MICE provides numerous job opportunities for local residents, other indirect beneficiaries, and stakeholders. 

Telangana & Hyderabad in Focus 

Telangana is India's youngest state, and since its inception in 2014, the state's economy has risen exponentially. The state has only 2 percent of the country's population but generates the fifth-largest share of GDP. According to the Government, Telangana's per capita income climbed by 130 percent to `2,78,000 in seven years from `1,24,000 in 2014. In the same year, the Gross State Domestic Product grew from `5.6 lakh crore in 2014 to `11.54 lakh crore. Agriculture and related industries are major contributors to the state's economy. 

Hyderabad, the state capital and one of India's most populated cities, is a popular destination for business meetings, conferences, and events. It also serves as a center for the information technology (IT) and pharmaceutical industries. Experts predict that the booming growth of MICE events and medical tourism will put Hyderabad on the international map, propelling the city's hospitality business to new heights. In JLL's City Momentum Index (CMI) 2019, Hyderabad was ranked second among the top 20 global cities. 

Hyderabad is well-connected both globally and locally, and this, combined with state-of-the-art infrastructure, convention facilities, and world-class services, makes it a particularly appealing MICE destination. The southern states provide the way for inbound incentives to imbibe India's mysterious and diversified heritage, history, and culture. 

Government Impetus 

According to the State Government data, during the last year, Hyderabad has received investments totaling almost `7,500 crore (US$965.25 million) in the Pharma, Biotech, and Medical devices sectors. The Telangana Government has collaborated with pharma companies, including Dr. Reddy's Laboratories and Laurus Labs, and has also received a `15,000 crore investment from Microsoft. The Telangana State Government has authorized a `1,479 crore administrative sanction for establishing eight new medical colleges and improving associated government general hospitals. The Indian Railway Catering and Tourism Corporation (IRCTC) expects to earn `26 crore from 2,00,000 tourists in Hyderabad during the fiscal year 2022-23. Domestic tourist arrivals in the state were 35 million in 2020, while overseas tourist arrivals exceeded 0.05 million. 

The State Government has prioritized tier II cities like Warangal, Karimnagar, and Nizamabad. In addition, the state is seeking to build three new airports in Adilabad, Nizamabad, and Warangal. With the recently announced Indigo's direct daily service from Hyderabad to Dhaka, Hyderabad International Airport has added yet another international destination to its portfolio, enhancing medical travel to the city as well as tourism and leisure travel between Bangladesh and Telangana. The state's overall growth is also heavily supported by sustained physical infrastructure development, which includes the extension of the railway network, greenfield and brownfield airports, industrial corridors, the Regional Ring Road, and metro train routes.  

Furthermore, as India aims to capitalize on its G20 leadership by hosting a worldwide meet on investments in its Tourism sector and a conference on corporate tourism next year, Indian states may exhibit their capabilities to international investors to attract tourism infrastructure investments. 

In the future, the MICE business in the State is positioned to grow, as seen by rising investments, government efforts, and medical tourism, which will provide the necessary impetus to its already thriving MICE industry. 

Telangana has only 2 percent of the country's population, but generates  the fifth-largest share of GDP. According to the Government, Telangana's per capita income climbed by 130 percent to `2,78,000 in seven years from `1,24,000 in 2014. In the same year, the Gross State Domestic Product grew from `5.6 lakh crore in 2014 to `11.54 lakh crore. 

Experts predict that the booming growth of MICE events and medical tourism will put Hyderabad on the international map, propelling the city's hospitality business to new heights. In JLL's City Momentum Index (CMI) 2019, Hyderabad was ranked second among the top 20 global cities. 

India's enormous outbound MICE and business travel sector is anticipated to be valued at roughly US$93 billion by 2030, with a resurgent outbound tourism market worth US$45 billion. The Indian hospitality sector expanded substantially in the second quarter of 2022 (April-June), thanks mostly to rising demand for MICE and business travel. 

India aims to capitalize on its G20 leadership by hosting a worldwide meet on investments in its tourist sector and a conference on corporate tourism next year. Indian states may exhibit their capabilities to international investors in order to attract tourism infrastructure investments. 

Telangana is seeking to build three new airports in Adilabad, Nizamabad, and Warangal. In addition, with Indigo's recently announced direct daily service from Hyderabad to Dhaka, Hyderabad International Airport has added yet another international destination to its portfolio, enhancing medical travel to the city as well as tourism and leisure travel between Bangladesh and the State.