141 International Peer Reviewed Journal Readiness of Legazpi City, Albay in Becoming the Top 5 Meetings, Incentives, Conventions and Exhibitions (MICE) Destination in the Philippines MARIA LUISA N. GONZALES http//orcid.org/0000-0001-6316-9776 mangluisa12221963@gmail.com Bicol College, Daraga, Albay, Philippines Originality: 100% • Grammar Check: 99% • Plagiarism: 0% ABSTRACT Tourism played a significant role in the development of a country’s economic development. Tourist expenditures contributed a lot to the economy of destination areas. With this tourism activity, it illuminated MICE to be a unique opportunity for the development of a certain locality. This study determined the readiness of Legazpi City in becoming one of the top 5 MICE destinations in the Philippines, aimed to determine the perceptions of the respondents towards hotel/resorts, convention/exhibition centers and public/private sectors along with its physical, technology and services offered, likewise the challenges encountered by the industry. It uses the descriptive method of research employing a survey instrument lifted from ASEAN MICE Venue Standard to 160 respondents of the study was 100 are tourists, ten from Local Government Unit, and 50 Private sectors. Findings revealed that the city is on the result of the study. However, challenges were identified, such as City Planning, External Competition, complete vulnerability, information technology revolution, and human resources are the city’s difficulty. Thus, this research will provide conceptions of a logical framework that will resolve the city’s dream of inclusion to be one of the top 5 MICE destinations. Vol. 38 · October 2019 DOI: https://doi.org/10.7719/jpair.v38i1.729 Print ISSN 2012-3981 Online ISSN 2244-0445 This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. https://orcid.org/0000-0001-6316-9776 https://creativecommons.org/licenses/by-nc/4.0/ https://creativecommons.org/licenses/by-nc/4.0/ 142 JPAIR Multidisciplinary Research Keywords — Social Science, Readiness, MICE Destination, Tourism, Technology, descriptive research design, Philippines INTRODUCTION Tourism played a significant role in the development of a country’s economic development. Tourist expenditures contributed a lot to the economy of destination areas. Over the decades, according to the World Tourism Organization, the tourism industry continued to grow and become diverse and considered as the fastest-growing economic sectors in the world. αWith this activity, the effect on the development of a certain country was eminent, and a new destination area evolved. These dynamics have turned tourism into a key driver for socio- economic progress. Many countries considered tourism as significant because tourism expenditures on goods and services consumed in destination areas contributed a lot to the income side of the government and the hospitality industry that, in effect, increase employment and improved the economic life of the workers working in the industry. The importance of tourism has been considered by many countries. Hence the tourist expenditures have a multiplier effect along with the service industry, manufacturers, taxes for the government, and employment opportunities for the community and likewise the improvement of economic activity of people working in the tourism industry. (Gmelch and Kaul, 2018) With this regard to tourism activity, Schlentrich (2008) elaborated that MICE is a complicated industry since it comprised the major part of the market segment, such as the tourist, advertiser, service providers, and suppliers as form part of the planning and execution of an event. He also emphasized that because of rapid globalization and technological advancement have also affected the tourism industry. However, it was stressed-out that an external event also affected the MICE industry, such as economic and political instability, wars, terrorism, environmental disasters, oil price hike, crimes, health threats, but these occurrences in a particular country will not affect the tourism activity but considered to be growing globally. (Coshall, 2003). And according to Khan (2015), MICE is a combination of business with pleasure. It accorded that this is considered an opportunity for businesses to grow significantly, be it considered to be an informal meeting with old friends or meetings with investors, customers, and suppliers, exchange of information, or new technologies. The MICE are 143 International Peer Reviewed Journal extensively growing and is mostly linked with travel for business purpose that as a service industry along with trade, transportation, finance, and travel - has been active in Europe and America for over a century. Mistilis and Dwyer (1999) emphasized that the MICE industry is a rapidly expanding sector of tourism worldwide, but particularly in the Asia Pacific region. Of the many challenges underlying the development of this sector, none is more important than determining the economic benefits from devoting resources to industry growth. The paper argues that although research has been undertaken on the economic impacts of MICE events and MICE destinations, regionally and nationally, the issue of the distribution of these benefits between tourism gateways and more remote regions has been neglected. While the study of Dwyer and Forsyth (1997) discussed the neglected issues relating to the assessment of the narrower economic impacts, the economy-wide impacts and the net benefits of an expanding MICE sector within a tourism destination, it is an attempt to enhance the stakeholder understanding of issues important to the subsequent task of assessment and thus to more informed policy in the area of study. The study of Lau, Milne, and Johnston (2005) on MICE, ICT, and Local Economic Development investigated how information and communication technologies (ICT), and the World Wide Web (Web), enhanced the role of MICE properties play in local economic development (LED). Their study revealed that the Web has considerable potential to facilitate linkages between MICE and local economies. But this potential can only be realized through careful planning, and the realization on the part of managers, developers, and planners, that the Web is not only simply a marketing tool but also an integral part of attempts to improve internal ICE performance and external links to local development. Mistilis (1999) described the challenges to MICE in the Asia-Pacific region that delved on the nature and scope of the MICE, such as the potential economic, social, and cultural forms of this form of tourism are then discussed, before going on to elucidate about some of the challenges which must be met to maximize the scale and scope of these benefits. The challenges relate to the level of government support for MICE tourism, appropriate levels of infrastructure, service, and training standards and marketing issues. Although these challenges are discussed in the context of the development of MICE tourism in Australia and the Asia Pacific, they are relevant worldwide. The paper concludes with some observations concerning the development of the global MICE industry. The report of Sable (2019) on the Asia-Pacific Mice Industry had produced an income of $229.0 billion in 2017, that it anticipated a mark-up of $441.1 144 JPAIR Multidisciplinary Research billion by 2025. He emphasized that the clientele of MICE are the travelers engaged in business transactions such as customer meetings, product marketing, employee training and development, and others. These activities brought about major changes in the tourism sectors that stimulate the MICE industry. The MICE industry in the Asia-Pacific regions was classified by event type and by country, it is analyzed across China, India, Singapore, Thailand, Indonesia, Australia, New Zealand, Japan, Malaysia, South Korea, Vietnam, Hong Kong, and rest of Asia-Pacific. This was expected that the meetings segment subjugate the Asia-Pacific MICE industry accounted to $159.4 billion and counting as the tourism industry continued growing. The impact noted progress in the economy, more infrastructure projects, and improved tourism and the global expansion of Asian companies. Recent trends in organizing hybrid meetings and the use of social media and meeting apps are also expected to boost market growth shortly. However, China was considered as the leading country in the Asia-Pacific Mice Industry. For 12 months, Beijing and Shanghai had hosted mostly of MICE trips in China, followed by Guangzhou, Hongkong, and Macau. What makes China as the leading MICE industry is because of its manufacturing utility and agriculture, forestry, and fishing, likewise the aging population being anticipated that will developed in the growth of the health care industry and social work segment. One of the most important factor to consider in selecting a MICE are its venues. This particularly being wed out through the ASEAN MICE Venue Standards (AMVS) and served as references by the ten ASEAN Member Countries, such as Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam. The AMVS cover three categories, namely (1) Meeting/Conference Venue or Room (2) Exhibition Venue, and (3) Event Venue. The standards cover the Meeting/ Conference Venue within a Hotel or Resort Setting, having multiple criteria along with 1. Physical Setting 2. Technology, and 3. Service. Maguigad (2013) in his Tourism planning in the archipelagic Philippines: A case review stressed that tourism considered an engine in the development of the Philippines even in late 1970 up to present. His research noted that foreign arrivals are undoubtedly increasing significantly. This eventuality legislation on tourism places importance since tourism considered an engine of growth. This legislation viewed against the local governance structures, power relations, and stakeholders’ linkages that may affect land use planning and tourism. However, he stated that the country lacked environmental planners, where tourism planning 145 International Peer Reviewed Journal is a sub-specialization. These are the challenges facing the current political interrelationship of the national government to renounce its powers in land use and tourism planning to local government. He recommended that with the wider environmental planning spectrum in the country, requires re-evaluating linkages, working relationships, and power relations among the various stakeholders in the land use-tourism planning processes, with the present political and administrative frameworks in the national and local governments. In 1976, the Philippine convention industry had become the government official policy. It is the year were the establishment of Southeast Asia’s first full- fledged convention center, the Philippine Conventions Center (PICC); creating the Philippine Convention Bureau (PCB) that served as the promotional arm of the government in promoting meetings and convention destination. That same year, the Philippines successfully played host to the International Monetary Fund - World Bank Joint Conference that allows the entry of the Philippines into the world conventions market. Since then, the Philippines has hosted some of the biggest and most important international and regional meetings, conferences, conventions, congresses, and events that have made its capital city, Manila, one of the acknowledged “Convention Cities” of the world. In the Philippines, areas considered as MICE destinations are Subic, Clark, Manila, Boracay, Cebu, and Davao. These destinations are considered competitive when it comes to huge commercial, industrial complex with hotels and resorts, convention sites, international airport, and bus companies and another mode of transportation that made the destinations accessible to tourists, may it domestic or international tourists. Tourism in Albay, based on Provincial Tourism and Cultural Affairs Office and APSEMO (2019), is a wonderful experience for every domestic or foreign traveler. Since Albay is known for its Mayon Volcano shortlisted in UNESCO’s World Heritage Site. It is a hidden tourism gem offering numerous activities for leisure, fun, relaxation, and travel. Many destinations were not yet touched by commercialism, never been featured in travel literature, and still awaits for its discovery. Albay was declared as Biosphere Reserve in UNESCO’s MAB Programmed being the proud home of approximately 462 flora and fauna, and 137 of which are endemic. The province has 19 festivals being celebrated all year round by its different municipalities and cities. According to the inaugural speech of Salceda (2013), “Let me reiterate the goals of our province. Our goal is to become the most livable province of the Philippines known for a good education, good healthcare, and a good 146 JPAIR Multidisciplinary Research environment where people are healthy, happy, and employed and live full lives. This meant three things 1. Short term goal is to achieve the MDGs. DONE. 2. Medium-term is to become a bastion of education and a tourism hub. BEING DONE 3. Long-term is to become a California in 30 years. ON OUR WAY Albay was accorded as the most number of combined domestic and foreign tourist arrival in the first half of 2016 having 569,547. With this numbered tourist arrivals also noted multi-billion pesos revenue to the government and the economy and generated employment for Bicolano’s in several tourism-related establishments. According to the Former Region V Tourism officer Ravanilla, she stressed that tourism in Legazpi City under the Mayoralship of Noel Rosal had fast-tracked the construction of coastal road known as the 4.08-kilometer Legazpi Boulevard. This Boulevard passes through barangays (villages) Victory, Dapdap, Puro and Lamba, contributed to boosting such growth rate,” she said. Barangay Lamba in Legazpi City connects to the Bicol International Airport in Barangay Alobo, Daraga. The groundbreaking of the new airport was attended by President Rodrigo Duterte early in December 2015. Ravanilla said this had meant more jobs, investments, and more tourists for the Bicol region as a whole. DOT: Bicol among PH’s Top Five Tourist Destinations; By Features desk (MS) - January 28, 2017   The trend and issues reviewed makes the researcher thinks that despite the province of Albay is considered as prone to different fortuitous events, still survive when it comes to tourism activities, and as Legazpi City is the capital of Albay, and considered as most livable city in Bicol Region, and how it is ready becoming a MICE destination area, thus this research is being conceived. FRAMEWORK For a place to be considered as destinations, satisfaction, expectations, and quality must be an assurance. According to Kotler and Keller (2011), they considered that once the customer was satisfied with the products and services offered by the industry, they tend to go back and continue patronizing the industry. While, expectations that a product or service will provide outcomes beneficial to the clientele, were measured through importance, such as overall affect-satisfaction expectations, the fulfilment of expectations, and expected value from use. The expectations theory, as reviewed by Chen and Murphy (2019), is an attempt to predict what short-term interest rates will be in the future based on the current long-term interest rates. Another one is the Deming’s theory of Total Quality Management which approach is to have a long term success of making 147 International Peer Reviewed Journal customers satisfied by improving processes, products, services, and the culture in which the system works. Figure 1. Theoretical Paradigm These theories relate to the study in the sense that to be MICE destination these theories are significant bases in creating and formulating more satisfying destinations resources. OBJECTIVES OF THE STUDY This study assessed the readiness of Legazpi City in becoming one of the top 5 MICE destination in the Philippines, specifically, 1) It determined the perceptions of the respondents regarding the readiness of Legazpi City as top 5 MICE destination area in the Philippines considering Hotel/Resorts, Convention/Exhibition Centers, and Public/Private sectors, along a. Physical, b. Technology, and c. Service. 2) Evaluate the challenges encountered by the respondents of Legazpi City, becoming a MICE destination area. 3. Address the challenges encountered by designing a logical framework for Legazpi city. METHODOLOGY Research Design This research is done based on the descriptive method of research. The respondents’ were asked to fill the questionnaire and rate the importance of the items based on a five-point Likert scale. 148 JPAIR Multidisciplinary Research In line with the research purposes of this study, a questionnaire-based survey was administered among the target population. Some part of the questionnaire was lifted from a study, and modifications were established to provide information to the objective of the research. Since this research was focused on determining the readiness of Legazpi City to become the top 5 MICE destination in the Philippines, copies of the survey were distributed among DOT officers, local and foreign tourists. The survey was conducted on 80 respondents residing temporarily or permanently in Legazpi City. This research covered a wide array of professions like students, housewives, employees working in a private company, government employees, businessmen, etc. Research Site This inquest was conducted in Legazpi City, Albay. Legazpi City is a first- class component city and capital to Albay with 196,639 population-based from the 2015 census. It is the largest city among the cities in the Bicol Region and considered as the center of tourism, education, health services, commerce, and transportation in the Bicol Region. Participants The participants of this study comprised of one hundred sixty (160) respondents, were one hundred (100) are from the tourists, ten (10) local government unit (DOT Legazpi), and fifty (50) in private sectors. Instrumentation The instrument used in gathering the data was lifted from the ASEAN MICE Venue Standard Special Meeting Hotel/Resorts, Convention/Exhibition Centers, Public/Private Sectors with 144 indicators from each cover 3 categories, namely (1) Meeting/Conference Venue or Room (2) Exhibition Venue, and (3) Event Venue, with the permission of the Department of Tourism, Bicol Region. Data Collection In the conduct of the research, initial permit from the DOT for the use of the instrument in gauging the competitiveness of the site, and from the different respondents of the study. The questionnaire was prepared to gather data along Legazpi City to be considered as the MICE destination area. The researcher, with the aid of the reviewed literature and help from the adviser and the ethics committee, the questionnaire was approved for distribution. The questionnaire 149 International Peer Reviewed Journal had been administered and retrieved. The retrieval of the questionnaire was done after its distribution to the tourist while giving sufficient time to the LGU and private sectors to accomplish. The data in the field-up questionnaire were tallied, tabulated, analyzed, and interpreted. Before the data were distributed, the participants of the study were informed and being given a letter for their consent and were given assurance that the data that will be derived from their answer will be treated with the utmost confidentiality. The results of the study were presented to the college designated research panel with a representative from the department of tourism as an external panel. And the agency concerned was informed of providing them a copy of the output of the study. Statistical Techniques This study used the percentage, frequency, rank, and weighted mean. It was used to analyze based on the requirement of the data. RESULTS AND DISCUSSION This part discussed the data gathered from the questionnaires retrieved. The study has 3 parts that concern about the perceptions of the respondents regarding Legazpi City as top 5 MICE destination area in the Philippines considering Hotel/Resort (H/R), Convention Centers (C/C), and Public/Private sectors (P/ Ps), challenges encountered and how to address these challenges by designing a logical framework as shown in the preceding discussions. A Tourist destination serves as motivators to arouse tourists to visit a particular area. And these areas benefit from the tourist expenditures regarding its economy, government income, employment, and community’s lifestyle. The perception of the respondents somewhat conforms to the standard set for a destination area(s) as MICE destination. However, the different provisions on Physical considering the Hotel/Resorts industry is the sustainability of these physical facilities is a requirement. Skinner (2017) on attracting MICE: Business Tourists’ Perceptions of Destinations. The International Congress and Convention Association (ICCA) is the industry body for the global meetings industry, using a definition of business tourism providing facilities and services to millions of delegates attending MICE. All indicators for Convention/Exhibition Centers are considered to be ‘somewhat favorable to the concept” based on the total average weighted mean 150 JPAIR Multidisciplinary Research of 4.22. All provisions in the data are all SWFC, but some indicators have lesser evaluated perceptions that need to be reconsidered for improvement and sustained its capacity to augment the need of the guest or tourists; the different provisions may be sufficient enough to some areas but not to other areas.  MICE referring to Public/Private sectors were considered somewhat favorable to the concept with a total AWM of 4.07, considering other indicators as well. However, significant findings determined, that restrooms amenities and facilities must conform with the ASEAN Public Restrooms for Tourism Standards had an AWM of 4.86, stationary and materials be available for the meeting participants, had 4.37, and chairs are clean and sufficient and adaptable with variety of settings having 4.28, while on the other side with a low perceptions considered walls and/ or partitions of the meeting rooms, with 3.34, and parking sufficiency with 3.48, were all perceived to be somewhat favorable to the concept to consider Legazpi City as MICE destination area. These perceptions of the guest/visitors to Legazpi City are responsive to the goal of the city to be considered as Mice destination area, however, the concerned people in the industry must still improve the different facilities and equipment so as to cater for the standard being looked for by the guests and to determine increase of tourist arrival. Based on McCartney (2008) as Macao was known to be the leading gaming destination and had overwhelmingly surpassed the income of Las Vegas and Atlantic combined. The growth of Macao meetings, incentives, conventions exhibitions (MICE) tourism had been introduced at destinations. With the gaming industry in Macao, the government realized a convention product to develop Macao as a major leisure and entertainment center, widening and expanding its tourism market segment beyond gaming. Therefore, MICE was considered an increasingly important focus direction of resources for the Macao Government. However, the government faced challenges of changing traveler perceptions from being solely a gaming destination to that of being an attractive convention and exhibition destination image. This challenge calls for strategic planning and management considerations for Macao as it attempts to reposition itself to develop the MICE industry in the world’s most lucrative gaming market. Considering technological advancement is being adopted nowadays, technology in a destination area is very significant. Data shows the respondent’s perception of technology was only 3.94 interpret as SWFC. This meant that the provisions for technology had very limited connectivity to some establishment. Tourists nowadays rely much on technology, since their travel was all dependent on technology. Easy access to the destination area can motivate the tourist to 151 International Peer Reviewed Journal manifest their interest to a destination. In today’s marketplace, according to Mistilis (2008), MICE is growing rapidly in the Asia Pacific Region. And the challenge facing this rapidly growing industry not only in the ASEAN countries, but it’s a global concern to maintain service standards in the context of intense competition for this form of tourism. In the service industry, the development of skills in information technology is regarded as essential to the provision of quality service to tourists. The study of Mistilis highlighted the importance of information technology in tourism generally and MICE tourism specifically. On services perceived before, during, and after experiencing by the tourists from the different facilities offered by a tourist destination establishment. Before the service experiences, they had 4.07, during, 4.13, and after with 4.08.  This tourist experience, however, considered as somewhat favorable to the concept, must be further improved to be more competitive with other tourist destination areas in the Philippines, to consider Legazpi City as tourist hub capital. The services offered by some tourism industry considering that service is intangible in nature sometimes does not satisfies other tourist who are frequently travelling or the experienced tourist who already visited other destination areas not only in the Philippines but another country will try to compare the services being offered, so the services offered by the city tourism establishment must be improved. According to Chockalingam and Ganesh (2010) on problems encountered by tourists, considering tourism as a fast-growing industry in developing countries like India, considered problems and its intensity level. Problems are dependent on the kind of tourist and would be an experience they want in a destination area. There are perfectionist tourists who are females, elders, and business people who are expressive whenever they do not like the services is because of corruption, pollution, heavy rush, and beggars.  Hence, social awareness must be addressed to support the national pride to minimize the problems encountered by tourists. Better services must be evident on the part of the hospitality industry to meet the need of the tourists. Tourism considered an engine of transformation of a country into a facet of economic and social metamorphosis, therefore, coordination between and among the major players in the tourism industry. Destination areas are destined to encounter challenges as time and environment changes. Tourist destination areas and services are not perfect to meet some tourist demand. This demand served as a learning experience by the destination areas improving their services offered. 152 JPAIR Multidisciplinary Research Accordingly, the challenges encountered by Legazpi city’s destination areas signify that they are many challenges about the City planning having 4.10 and being ranked first among the indicators, followed by human resources with 3.96, external competition, 3.89, complete vulnerability, 3.87, and lastly was the information technology revolution. These challenges are factors that affect a place to become a MICE destination, hence to consider one must be perfect in all aspect of the trade. Tourist satisfaction is the aim of view of the MICE industry. Different hospitality areas must overwhelmingly be advance and updated, not only planning along but as well as other areas that served as motivators for tourist needs, wants, and desires. A log frame or logical framework matrix – a comprehensive project cycle management tool designed to sustain Legazpi City’s desire becoming a MICE- destination. This tool is a detailed planning procedure to address problems, identify success criteria, and enlist assumptions for the project. This log frame matrix taking the viewpoints of all stakeholders into consideration is a must – to ensure a high level of objectivity. LOGICAL FRAMEWORK FOR LEGAZPI CITY AS MICE DESTINATION BUDGET _________ Year 2019-2020 to 2024-2025 KEY RESULT AREAS OBJECTIVE(S) STRATEGIES PERSONS INVOLVED OUTCOME /OUTPUT IMPACT 1. City Planning - Organize a planning committee from the different stakeholders in developing the tourism experience in the destination areas of Legazpi City -Allocate funds and place for the committees to convene and plan. - City Government - DOT - Industry practitioner’s - Community/ Barangay Officials - Change in knowledge - Improved tourism practices - Improved Legislation - Budget allocation - Increased financing of tourism activity(ies) - employment - investment 2. External Competition - Determine the external competitors that may affect the City’s viability. - Conduct extensive research about competitors. - SWOT analysis - Research group - Improved practices - City competitiveness 153 International Peer Reviewed Journal 3. Complete vulnerability - Strategic plans to mitigate the city from being vulnerable to natural and man- made disasters. - SP be coordinated to people involved through proper dissemination. - City Government - DOT - Industry practitioner’s - Community /Barangay Officials - Mitigate the vulnerability of the city. - Development plan - Safe and secured tourists. 4. Information Technology Revolution - Upgrade/ update/ enhance the existing information technology to be competitive with the external competitors - Purchase a state of the art technology - City Government - DOT - Industry practitioner’s - Community /Barangay Officials - Improved information technology utilized by the industry and would be visitors/ tourists. - Increased information services would be tourists and the city as well. 5. Human Resources - Design a training program to improve the services offered/ rendered by the frontlines for continues human resources development. - Implement the training program every other month or after 6 months for continues human resources development. - City Government - DOT - Industry practitioner’s - Community/ Barangay Officials - Change in knowledge and/or behavior - Increased tourist arrival Prepared by: Submitted to: DR. MARIA LUISA N. GONZALES, CTP Department of Tourism Researcher Legazpi City CONCLUSIONS Legazpi City vying to be among the top 5 MICE destination in the Philippines has the potential to become one. Challenges can be overcome through proper city planning, analyzing the external competition, studying its vulnerability, updating its information technology, and training extensively its human resources to be made ready to compete with other places. The framework will serve as a guide in formulating a program of activities that will make the city competitive and become the top 5 destination areas. 154 JPAIR Multidisciplinary Research TRANSLATIONAL RESEARCH The city of Legazpi must be open to benchmarking of the best practices of other locality to provide them an idea of what to adhere and analyze to better serve the different tourists (foreign or domestic traveler) of the city. Time to frequently evaluate the different tourism industries, utilize the criteria to improve the services offered by the tourism industry, frequent visit to different destination and hospitality industries to assure compliance of the tourism industry requirements, clearly define destination framework, Stakeholders participation, Institutional ownership, Capacity building, Flexible planning approach, and Communication plan to enable to support the growth and expansion of the tourism industry around the natural and cultural sites of the city’s MICE destinations. Likewise, this study must be translated into a journal, newsletters, and article for reference to the different stakeholders as to the formulation of a strategic plan/action plan and/or policy formulation. LITERATURE CITED Chockalingam, M., & Ganesh, A. A. (2010). Problems encountered by tourists. Business and Economic Horizons (BEH), 3(1232-2016-101107), 68. Retrieved from https://bit.ly/2YwVufHel Coshall, J. T. (2003). 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