International price competitiveness of Australia's MICE industry

A special-interest tourist market that holds out great promise for continued growth well into the next century is that of MICE (meetings, incentives, conventions, exhibitions). At the same time, changing prices in particular destinations relative to others are regarded as one of the most important economic influences on destination shares of total international tourism flows. The question arises as to the price competitiveness of major competing MICE destinations. Although earlier research has recognised that a destination's price competitiveness differs according to a visitor's country of origin there has been relatively little attention paid to tourism price competitiveness from the perspective of those having different motives for travel. This paper has four major aims: first, to provide a method by which price competitiveness of tourism by journey purpose can be estimated; second, to construct price competitiveness indices that measure, absolutely and relative to major competitors world-wide, the price competitiveness of Australia's MICE tourism industry; third, to compare Australia's price competitiveness as a MICE destination with its price competitiveness for total inbound tourism; fourth, to discuss the implications of the results for travel and tourism decision-makers in both the private and public sectors.