MICE tourism is the highest revenue generator segment of tourism industry in many countries around the world as well in Ethiopia. Arsi Zone has good potential for MICE tourism development. But the area is not appropriately used the existing potentials. Thus, as to look into the problems and achieve the objective of the study used descriptive research design with mixed research approach. The data was collected through questionnaire, interview, focus group discussion, and field observation. So as

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... to collect data and information the study used both primary and secondary sources. The collected data were coded, processed and analyzed with the help of SPSS. The findings of this study show that athletics sporting events, Irreecha Ritual practices, Epiphany & Meskel events, Meetings of regional and zonal level and local Exhibitions were the major types of MICE tourism in the area. Also the finding shows MICE Tourism provides an opportunity for shared experience, expanding cultural perspective, building community pride, social cohesion, attracts tourists to the area, job creation and boosts local economy, and increase the interaction between locals and tourists. The finding also shows the challenges of MICE tourism development; that includes lack of attention to this segment of tourism, lack of infrastructure, crime, and inflated prices during the time of celebrating events. To promote MICE tourism development; encourage private sectors and sponsors participation in event tourism development activities, create awareness for the local community towards the importance of event tourism development in the area.