Asia Pacific's MICE revenue hit $229b in 2018
The region had the fastest growing MICE segment, accounting for 28.4% of global revenue.
The Asia Pacific region emerged as the fastest growing region for meetings, incentives, conferences, and exhibitions (MICE) globally, generating US$229b or 28.4% of global MICE revenue, according to Colliers International.
China continued to dominate the MICE regional industry, making up for more than 55% of market share in Asia in terms of sqm sold for exhibitions and hosting 70% of the venue capacity in Asia at 4.85 million sqm. Colliers expects the country to retain the top spot through to 2025, buoyed by the government’s encouragement of SMEs and Chinese trade associations to expand their overseas operations and commercial activities.
Meanwhile, Southeast Asia collectively made up 10% of the market share in Asia in terms of sqm sold for exhibitions. In particular, Singapore’s MICE market accounted for US$1.58b or 22% of its tourist receipts in 2018.
Thailand is also gaining ground in the MICE market, attracting 1.3 million overseas MICE visitors in 2018, a 19.8% YoY increase from the previous year. As a result, business tourism receipts jumped 8.1% YoY to US$3.1b.
Another established MICE market, Hong Kong, received 2 million MICE arrivals in 2018, up 2.1% from 2017.
Meanwhile, Japan continued to boast a large domestic market which, Colliers said, suggests long term MICE potential. India, which made up 5% of the market share last year, was described as an “emerging giant” that is expected to be worth an estimated US$9b by 2025.
Accordingly, 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; whilst other destinations such as Malaysia, Indonesia and Cambodia are focused on events promoting trade activities within the region.
However, investors are noted to be taking stock after a politically eventful Q2 on the back of 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 US$99.76, respectively,” commented Govinda Singh, executive director of valuation and advisory services for Asia at Colliers.