Since 2000, the strategic partnership between the Mexico Tourism Board (MTB) and MPI has been successful in terms of sending strong messages to both sides: the Mexico tourism industry and the international meetings sector.
The key message to Mexico’s tourism suppliers and destinations deals with the profitability of the meeting and incentive segment, specifically in North America, and the importance of balancing our promotional and marketing efforts. This was necessary, as it became evident that our country was completely dependent on the seasonality of traditional leisure traveler demand.
The MTB tried to convince national industry players to invest in a segment that offered year-round possibilities, a higher average expenditure per attendee, a longer average stay, a natural multiplier effect (a good experience at a meeting in Mexico would encourage additional travel to Mexico) and a transversal benefit to suppliers such as audiovisual, transportation and exhibition service providers.
However, because the MTB is the main institution responsible for communicating the diversity, cultural richness and infrastructure of Mexico to the world, a second message to the global meeting market was more important.
We needed to tell the international players that we were ready to receive world-class events in most of our destinations; that we were willing to invest in education, infrastructure, convention centers and technology; and that we would do whatever we had to do in order to become a respectable player in this competitive arena. Of course, we were completely conscious of the fact that we were entering this industry a little late and that we had to accelerate the process in order to catch up with our main competitors.
Coincidentally, around the time of these decisions, the MPI Mexico Chapter was founded. From that moment on, many important things began to occur: discussion of the value-added tax exemption for international meetings began in our congress, the Mexico (National) Convention Bureau was created and new CVBs were formed as a response to the potential benefit of some emerging destinations in this economic segment. In addition, extensive educational efforts were being implemented throughout the country.
Designations in Mexico
In the middle of this process, when the convention bureau was installed within the MTB as the specialized office to focus on this industry, MPI helped us to bring the CMP program to Mexico. For the first time, the Convention Industry Council’s CMP exam took place in Mexico. The tourism board felt that an example had to be set from the national level and supported me in my efforts to obtain the CMP certification.
Two years after the Mexico Convention Bureau was created and its governance corps was working on an ongoing public/private formula—MICE association leaders in Mexico worked together on this project—the institution appointed me regional director for U.S. and Canada based in Chicago with responsibilities both in the leisure and in the meetings industries.
In a parallel pathway, we continued our efforts to reinforce our MPI partnership. In order to continue specializing in this industry, I applied for the Certification in Meeting Management (CMM) designation, which ended up becoming one of the most enriching experiences I have had—I consider the CMM the master’s degree of meetings education.
In a strategic environment—utilizing the expertise of the facilitators and working with a wonderful team—such that I had at the CMM retreat last year in Dallas, the elements were in place to work on a business plan to take the organizational scheme of the MTB in North America a little bit further.
Most of the business plans put together by CMM applicants are realized to some degree, specifically in the private sector. However, my mini thesis soon became a reality (thanks to the openness and inclusive vision of new federal government leaders in Mexico’s tourism sector). My thesis led to the development of a new Washington, D.C.-based MTB regional office. But my concept became more than an office, it created a new philosophy and way of working at the MTB.
This business plan was a formal proposal to create a strategic business unit (SBU) within the MTB to focus on U.S. and Canada key regional markets. It was meant to make the existing North American regional direction evolve from its current administrative, supervisory and operational roles to a business-oriented, integral and visionary structure that would help align the MTB strategies with a long-term perspective.
The MTB arrived at the conclusion that we needed a change for the following reasons:
- Tourism activity trends change constantly and require a focused, long-term vision.
- The MTB was required to consolidate its role as the ruling national entity (with local destinations and suppliers) and internationally (with business partners and clients).
- As a country, Mexico needed more accurate and profound strategic information to make better long-term decisions.
- The MTB required more independence and accountability from the offices abroad in order to increase the return on investment of the public resources for tourism promotion in the North American market—which represents 90 percent of the international market—due to the advantageous location.
- The MTB required structural alignment for all promotional operations happening abroad.
- The strategic alliances with business partners required a comprehensive approach within both the meetings and leisure industries.
- There should be more independence, from one region to another, to determine which products and market segments (and under what conditions) the marketing strategies should be applied.
- The MTB’s existing operation, at that point, needed to be actualized to determine priorities, alliances and working structures.
- Any decision had to be based on real data derived directly from the feeding markets.
The SBU in Washington, D.C., was inaugurated on June 14, with the first session of its North American Advisory Board. Now it is time to begin demonstrating its value and offering concrete results.
EDUARDO CHAILLO, CMP, CMM, is regional director for U.S. and Canada with the Mexico Tourism Board. He can be reached at echaillo@visitmexico.com.
