Journal of Korea Trade

Korea Trade Research Association (한국무역학회)
권호 표지
DOI QR코드

DOI QR Code

Crisis Management Strategy for the Korean MICE Industry Using SWOT-AHP-TOWS Analysis

  • Received : 2020.12.29
  • Accepted : 2021.10.11
  • Published : 2021.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

Purpose - This study presents strategies to overcome the COVID-19-induced crisis in Korea's meetings, incentives, conferences, and exhibitions (MICE) industry. It aims to quantitatively identify the environmental factors affecting the industry and their degree of influence, and derive optimal countermeasures. Design/methodology - The study applied the SWOT-AHP-TOWS framework. An AHP analysis was first performed within the SWOT frame, and then a TOWS analysis was conducted using the results of the SWOT-AHP analysis. In the AHP analysis, the number of pairwise comparison questions was limited to four for each SWOT factor to increase the consistency of responses by reducing the burden on respondents. Findings - The plunge in demand (threats factor) has had an overwhelming impact on the MICE industry, more than any other environmental factor. To overcome the crisis, the ST alternative that takes advantage of dynamic pop culture to minimize the business damage caused by the plunge in demand was the top priority measure. Based on the results, this study presents suggestions for overcoming the crisis in the MICE industry. First, the industry should develop profitable business models to supplement scarce financial resources by exploiting Korea's success with quarantine management. Second, the government must provide emergency relief funds or bailout support to protect MICE facilities and employees. Originality/value - Unlike previous work on the MICE industry, this study utilized the SWOT-AHPTOWS framework to derive quick research results in an abnormal situation. This approach can be expanded to other countries with different industrial environments and situations. Additionally, when applying this method to MICE sub-sectors, countermeasures should be tailored to each field.

Keywords

References

  1. Abdel-Basset, M., M. Mohamed and F. Smarandache (2018), "An Extension of Neutrosophic AHPSWOT Analysis for Strategic Planning and Decision-Making", Symmetry 2018, 10.116; doi:10.3390/sym10040116
  2. Aburumman, A. A. (2020), "COVID-19 impact and survival strategy in business tourism market: the example of the UAE MICE industry", Humanities and Social Sciences Communications, 7(141). https://doi.org/10.1057/s41599-020-00630-8
  3. Ahn, Kyung-Mo, Ju-Yeon Kim, Doo-Yeon Chung and Do-Hee Kwon (2008), "Empirical Study for Strategies Korean MICE Industry Development - Based on MICE Professional Opinion", Journal of MICE & Tourism Research, 8(2), 7-23.
  4. Aslan, I., O. Cinar and V. Kumpikaite (2012), "Creating Strategies from Tows Matrix Forstrategic Sustainable Development of Kipas Group", Journal of Business Economics and Management, 13(1), 95-110. https://doi.org/10.3846/16111699.2011.620134
  5. Buathong, K. and P. C. Lai (2017), "Perceived Attributes of Event Sustainability in the MICE Industry in Thailand: A Viewpoint from Governmental, Academic", Venue and Practitioner", Sustainability, 9, 1151; doi:10.3390/su9071151
  6. Chen, Ching-Fu (2006), "Applying the Analytical Hierarchy Process (AHP) Approach to Convention Site Selection", Journal of Travel Research, 45, 167-174. https://doi.org/10.1177/0047287506291593
  7. Chiang, Che-chao, B. King and T. H, Nguyen (2010), "Taiwan's MICE visitors: business, leisure and education dimensions", International Journal of Culture and Hospitality Research, 6(1), 21-33.
  8. Cho, Jae-Geun and Tae-Suk Nam (2016), "A Study on the Building Strategy of Regional MICE Industry in GyeoungBuk", Journal of Tourism Services Research, 14(1), 1-18.
  9. Choi, Byeong-Choon (2010), "A study on Korea's MICE Industry Trend Study", The Korea Contents Association Review, 8(4), 46-53. https://doi.org/10.20924/CCTHBL.2010.8.4.046
  10. Crouch, G. and J. R. Ritchie (1998), "Convention Site Selection Research: A Review, Conceptual Model, and Preposition Framework", Journal of Convention and Exhibition Management, 1(1), 49-69. https://doi.org/10.1300/J143v01n01_05
  11. Dwyer, L. and N. Mistilis (1999), "Development of MICE tourism in Australia: opportunities and challenges", Journal of Convention and Exhibition Management, 1(4), 85-99. https://doi.org/10.1300/J143v01n04_07
  12. Dwyer, L., N. Mistilis, P. Forsyth and P. Rao (2001), "International Price Competitiveness of Australia's MICE Industry", International Journal of Tourism Research, 3, 123-139. https://doi.org/10.1002/jtr.292
  13. Eslamipoor, R. and A. Sepehriar (2014), "Firm relocation as a potential solution for environment improvement using a SWOT-AHP hybrid method", Process Safety AND Environmental Protection, 92, 269-276. https://doi.org/10.1016/j.psep.2013.02.003
  14. Gartrell, R. B. (2002), "Strategic partnerships for convention planning: The role of convention and visitor bureaus in convention management", International Journal of Hospitality Management, 10(2), 157-165. https://doi.org/10.1016/0278-4319(91)90038-J
  15. Gottfried, O., D. De Clercq, E. Blair and C. Wang (2018), "SWOT-AHP-TOWS analysis of private investment behavior in the Chinese biogas sector", Journal of Clear Production, 184, 632-647. https://doi.org/10.1016/j.jclepro.2018.02.173
  16. Hong, Heather, Yu-Jin Jung and Joo-Hyung Lee (2018), "A Study on the Environment and Improvement Plan in Jeonbuk: Focused on Sarawak", Journal of Tourism Management Research, 22(3), 721-741. https://doi.org/10.18604/tmro.2018.22.3.32
  17. International Congress and Convention Association (ICCA) (2020), The International Association Meetings Market 2019: ICCA Statics Report - Public Abstract, Netherlands: Author.
  18. International Monetary Fund (IMF) (2020), World Economic Outlook Update: A crisis Like No Other, An Uncertain Recovery (June, 2020), Washington, D.C.: Author.
  19. Jafari, H., H. Jafari and C. Loyes (2013), "Strategic Analysis of Seaports using Multi-Criteria Decision-Making Methods and TOWS", Journal of Asian Business Strategy, 3(7), 182-191.
  20. Jiao, Wei-Ling (2013), "Study on Mergence of E-commerce in MICE Industry", 2013 6th International Conference on Information Management, China, Innovation Management and International Engineering, 210-213.
  21. Kim, Cheol-Won (2016), "MICE industry Status and Development", Korea Tourism Policy, 64, 10-19.
  22. Kim, Nam-Hyun, Joung-Koo Park and Jeong-Ja Choi (2017), "Perceptual differences in core competencies between tourism industry practitioners and students using Analytic Hierarchy Process (AHP)", Journal of Hospitality, Leisure, Sport & Tourism Education, 20, 76-86. https://doi.org/10.1016/j.jhlste.2017.04.003
  23. Kim, Young-Mi and Yang-Lim Lee (2012), "A Study of destination marketing strategies for developing of MICE industry of Gwangju City South Jeolla Province", Journal of MICE and Tourism Research, 12(3), 83-106.
  24. Korea Tourism Organization (KTO) (2019a), Research on 2018 MICE industry Statistics, February, 2020, Seoul: Author.
  25. Korea Tourism Organization (KTO) (2019b), Analysis on MICE industry's contribution to Korea Economy, November, 2019, Seoul: Author.
  26. Krip, Jurakanit (2018), "Potential Development of MICE industry in Hat Yai District, Songkhla Province", E-review Tourism Research, 16(1), 15-37.
  27. Kurttila, M., M. Pesonen, J. Kangas and M. Kajanus (2000), "Utilizing the analytic hierarchy process (AHP) in SWOT analysis - a hybrid method and its application to a forest-certification case.", Forest Policy and Economics, 1, 41-52. https://doi.org/10.1016/S1389-9341(99)00004-0
  28. Lee, Chang-Hyun and Lee, Hee-Jun (2016), "A Study on the Standardization Plan of Statistics and Economic Impact Analysis for MICE Industry", Journal of MICE & Tourism Research, 16(4), 97-120.
  29. Meeting Professionals International (MPI) (2018), Leading MICE Industry Association Come Together to Make the Industry Stronger. Available from https://www.mpi.org/media/press/leadingmice-industry-associations-come-together-to-make-the-industry-stronger (accessed March 25, 2021)
  30. Nam, Yoon-Seob and Hwa-Soon Lim (2011), "A Study for MICE Multiplex location attributes which use AHP", The Korean Association of Professional Geographers, 45(1), 125-136.
  31. Oppermann, M. (1996), "Convention destination images: analysis of association meeting planners' perceptions", Tourism Management, 17(3), 175-182. https://doi.org/10.1016/0261-5177(96)00004-0
  32. Park, Chang-Soo and Seung-Hee Kim (2011), "A Study of the Structural Changes and the Contribution to Growth in the Regional MICE Industry", Journal of Hospitality and Tourism Studies, 13(1), 118-131.
  33. Park Yong-Hee (2016), "A Study on the Environment and Marketing Strategy of MICE Industry in Incheon, Korea", Journal of Service Marketing, 9(1), 59-71.
  34. Phadermrod, B., R. M. Crowder and G. B. Wills (2019), "Importance-Performance Analysis based SWOT analysis", International Journal of Information Management, 44, 194-203. https://doi.org/10.1016/j.ijinfomgt.2016.03.009
  35. Phu, M. M. (2020). The Challenges of MICE Industry After Covid-19 in Myanmar. AU Virtual International Conference 2020, Entrepreneurship and Sustainability in Digital Era, Assumption University of Thailand, 210-216.
  36. Proctor, R. A. (1992), "Selecting an appropriate strategy: a structured creative decision support model", Marketing and intelligence Planning, 10(11), 21-24.
  37. Ranasinghe, R., Damunupola, A., Wijesundara, S., Karunarathna, C., Nawarathna, D., Gamage, S., Ranaweera, A. and Idroos, A. A. (2020). Tourism after corona: Impacts of COVID 19 pandemic and way forward for tourism, hotel and MICE industry in Sri Lanka, Department of Tourism Studies, Uva Wella University, Badulla, 9000, Sri Lanka.
  38. Rittichainuwat, B., Laws, E., Maunchontham, R., Rattanaphinanchai, S., Muttamara, S., Mouton, K., Lin, Y. and Suksai, C. (2020). "Resilience to crises of Thai MICE stakeholders: A longitudinal study of the destination image of Thailand as a MICE destination", Tourism management perspectives, 35, 100704, 1-15.
  39. Rwigema, P. C. (2020), "Impact of Covid-19 Pandemic to Meetings, Incentives, Conferences and Exhibitions (Mice) Tourism in Rwanda", The Strategic Journal of Business & Change Management, 7(3), 395-409.
  40. Saaty, T. L (1997), "A scaling method for priorities in hierarchical structurers", Journal of Mathematical Psychology, 15(3), 234-281. https://doi.org/10.1016/0022-2496(77)90033-5
  41. Seker, S. and M. Ozgurler (2012), "Analysis on the Turkish consumer electrics firm using SWOTAHP method", Procedia - Social and Behavioral Sciences, 58, 1544-1554. https://doi.org/10.1016/j.sbspro.2012.09.1141
  42. Sevkli, M., A. Oztekin, O. Uysal, G. Torlak, A. Turkyilmaz and D. Delen (2012), "Development of a fuzzy ANP based SWOT analysis for the airline industry in Turkey", Expert Systems with Applications, 14-24.
  43. Shahabi, S. S., M. H. Basiri, M. S. Kahag and S. A. Zonouzi (2014), "An ANP-SWOT approach for interdependency analysis and prioritizing the Iran's steel scrap industry strategies", Resources policy, 42, 18-26. https://doi.org/10.1016/j.resourpol.2014.07.001
  44. Singapore Tourism Board (STB) (2019), Tourism Sector Performance, Q4 2018 Report, Singapore: Author.
  45. Tahernejad, M., R. Khalokakaie and M. Ataei (2013), "Determining proper strategies for Iran's dimensional stone mines: a SWOT-AHP analysis", Arab J Geosci, 6, 129-139. https://doi.org/10.1007/s12517-011-0331-6
  46. Tang, Hui-Wen (2014), "Constructing a competence model for international professionals in the MICE industry: An analytic hierarchy process approach", Journal of Hospitality, Leisure, Sports & Tourism Education, 15, 34-49. https://doi.org/10.1016/j.jhlste.2014.04.001
  47. The Global Association of the Exhibition Industry (UFI) (2018), World Map of Exhibition Venues, 2017 Edition revised January 2018, France: Author.
  48. Union of International Associations (UIA) (2020), 61st International Meetings Statistics Report (61st): A robust year of international association meetings, Brussels: Author.
  49. Wang, Min-Sheng and Luo, Qiuju (2018), "Exploring the MICE industry career path", International Journal of Contemporary Hospitality Management, 30(5), 2308-2326. https://doi.org/10.1108/IJCHM-04-2017-0199
  50. Weber, K. (2001), "Meeting planners' use and evaluation of convention and visitor bureaus", Tourism Management, 22, 599-606. https://doi.org/10.1016/S0261-5177(01)00040-1
  51. Weihrich, H. (1982), "The TOWS Matrix: a tool for situational analysis", Long Range Planning, 15(2), 45-66. Doi:10.1016/0024-6301(82)90120-0
  52. Weihrich, H. (1999), "Analyzing the competitive advantages and disadvantages of Germany with the TOWS Matrix: an alternative to Porter's Model", European Business Review; Bradford, 99(1), 9-22. https://doi.org/10.1108/09555349910251822
  53. World Tourism Association (UNWTO) (2006), Measuring the Economic Importance of the Meetings industry Developing a Tourism Satellite Account Extension, Madrid: Author.
  54. World Tourism Association (UNWTO) (2008), Global Meeting Initiative (Volume 1, 2, 3), September, 2008, Madrid: Author.
  55. Yoo, J. and K. Weber (2005), "Progress in convention tourism research", Journal of Hospitality and Tourism Research, 29(2), 194-222. https://doi.org/10.1177/1096348004272177
  56. Zahedi, F. (1986), "The Analytic Hierarchy Process: A Survey of the Method and its Application", Interfaces, 16(4), 96-108. https://doi.org/10.1287/inte.16.4.96