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The meetings, incentives, conferences and exhibitions (MICE) industry is an important revenue source for the hospitality sector, with around 90 percent of all business events within the region done in hotels and visitors spending 1.7 times more compared to leisure tourists.
Asia Pacific emerged as the world’s second biggest and fastest growing region for the meetings, incentives, conferences and exhibitions (MICE) industry, according to Colliers International.
MICE is an important revenue source for the hospitality sector, with around 90 percent of all business events within the region done in hotels and visitors spending 1.7 times more compared to leisure tourists.
In its Hotel Insights Q3 2019 report, Colliers revealed that meeting and event-based travel generated US$229 billion (S$317.4 billion) in 2017, or 28.4 percent of global revenue.
“Hotels across the Asia Pacific continued to have a tough year in Q2 2019 compared to the prior year quarter, with overall room occupancy and average daily rate showing decreases to 68.1 percent and US$99.76, respectively,” said Govinda Singh, executive director of valuation & advisory services for Asia at Colliers.
“The recent escalation in the US-China trade dispute continues 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.”
It noted that Cambodia, Indonesia and Malaysia are focused on holding events that promote trade activities within the region, while more established destinations such as Singapore, Hong Kong and China are reinventing themselves by offering unique experiences using content, cuisine and technology.
Singapore, for instance, has taken advantage of it being only seven hours away from half the world’s population.
Marina Bay Sands has welcomed over 330 million visitors, which in turn has attracted around 700 new MICE events to Singapore. In fact, the venue hosted 3,600 events last year, attracting 1.4 million people to the Sands Expo & Convention Centre.
In 2018, the MICE industry made up 15 percent of all arrivals to the country, generating S$2.2 billion in tourist receipts.
Throughout the region, investors are, however, taking stock following a politically eventful quarter which saw mass protests in Hong Kong and large scale-elections in Indonesia and India.
Activity in some areas may continue to be muted as investors digest recent developments which include the slowing global growth and China-US trade tensions.
With this, Colliers expect the transaction market for this year to remain subdued “as owners consolidate their portfolio and seek opportunistic investments”.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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