Shinsegae Duty Free said on the 6th that it signed a strategic business agreement with the China Association of Travel Services MICE Committee to promote MICE tourism between Korea and China. MICE is short for Meetings, Incentives Travel, Conventions, and Exhibitions/Events. It generally refers to a tourism industry aimed at corporations.
The China Association of Travel Services is the only nationwide travel industry cooperation body under the supervision and oversight of the Ministry of Culture and Tourism, a government organization.
Through this partnership, the two companies plan to proactively secure a large-scale visitor-sending network in China and create tangible sales synergies by using local promotion channels. Specifically, they will continue exchanges in multiple areas, including ▲ cooperation on promoting Korea's outstanding MICE assets ▲ customized promotions and joint marketing for Chinese MICE group tourists ▲ improving duty-free store convenience and enhancing service quality ▲ identifying cooperative projects to boost Korea-China exchanges in tourism, distribution, and culture.
Including the MICE Committee, the China Association of Travel Services has about 3,000 member companies (travel agencies, airlines, lodging businesses, etc.) across 17 subcommittees such as rail and school trips. In particular, the MICE Committee, centered on 141 member companies, carries out international forums, market research, policy consulting, and exchange support.
Through this agreement, Shinsegae Duty Free has established an official cooperation channel for networking with Chinese MICE channels to expand opportunities to attract inbound Chinese MICE groups and expects brand promotion effects by participating in local MICE-related events. Through this, it plans to boost Korea-China exchanges in tourism and distribution at major tourist hubs, including the Shinsegae Duty Free Myeongdong store.
Shinsegae Duty Free is moving away from a traditional business model centered on large group tours and is pursuing a qualitative growth strategy focused on high value-added business travelers, such as small, high-spending groups for corporations' business trips and incentive tourism, medical, and beauty groups. The average per-customer spend of MICE groups is more than three to four times higher than that of general tour groups, and they currently account for about 35% of sales from foreign group tourists.
Shinsegae Duty Free plans to secure more than 60,000 MICE tourists through an incentive group program by the end of this year and attract a total of 140,000 Chinese tourists. For corporate delegations and tourists traveling for business purposes, it is enhancing the premium experience by providing VIP welcome services such as exposure on the media facade welcome board (greeting message) inside the Myeongdong store.