MICE market accounted for $2.2b of tourist receipts in 2018: report
The Sands Expo & Convention Center hosted approximately 1.4 million delegates last year.
Singapore’s meetings, incentives, conferences, and exhibitions (MICE) market accounted for $2.2b or 22% of tourist receipts in 2018, according to Colliers International.
The Marina Bay Sands (MBS) alone welcomed 330 million visitors last year and attracted approximately 700 new MICE events to Singapore. The Sands Expo & Convention Center reportedly hosted 3,600 events and 1.4 million delegates.
“With a new 15,000 capacity conference center at MBS recently announced and The MICE 2020 Roadmap, Singapore will continue its focus on improving delegate experience through interactive technology, experience, convenience and thought leadership,” the report stated.
For the third quarter of 2019, Colliers noted that the most notable transactions in the city state include Bay Hotel Singapore, where the value per room is reportedly at $540,000; and Ibis Singapore Novena, where the value per room is reportedly at $510,000.
Additional investment in the commercial and leisure sector in Singapore will underline the city-state’s status as a commercial haven, the report added.
MICE is an important source of revenue to the hospitality sector both for Asia. Around 90% of all business events in the region are hosted in hotels, and MICE-related visitors spend approximately 1.7 times more than leisure tourists, according to Colliers.
In total, the Asia Pacific (APAC) region emerged as the fastest growing region for MIC globally generating 28.4% or $317.89b (US$229b) of MICE revenue.
However, the report noted that investors are taking stock after a politically eventful Q2 amidst slowing global growth.
“Hotels across the Asia Pacific continued to have a tough year in Q2 compared to the prior year quarter, with overall room occupancy and average daily rate showing decreases to 68.1% and USD99.76, respectively,” commented Govinda Singh, executive director of valuation and advisory services for Asia in Colliers.
“The recent escalation in trade disputes continue to weigh on business and consumer confidence, thereby tempering demand growth. However, intra-Asia and growing domestic travel in the larger destinations across Asia is likely to continue to underpin demand in the region,” she added.
Accordingly, Malaysia, Indonesia and Cambodia are focused on events promoting trade activities within the region, whilst more established destinations such as China, Singapore and Hong Kong are noted to be reinventing themselves through providing unique experiences with technology, cuisine and content. Furthermore, China dominates the MICE industry in APAC and is expected to retain the top spot through to 2025.