Market Overview and Growth Highlights 2017-2027
Meeting, Incentives, Conferences, and Exhibitions (MICE) is a form of tourism activity in which groups of people are brought together for a particular purpose. It consists of people organizing conferences, seminars, exhibitions and other events. These include professional conference organizers, professional exhibition organizers, destination management companies, tour operators and professional trade organizations. The Singapore MICE tourism industry is thriving on the back of increasing advancements in technologies, that promotes effective communication via onsite social media networking, group announcements, creating appointments and convenient business contact exchange among others, along with the development of sharing business economy across nations.
Additionally, increasing number of international visitors in the country coupled with rising number of business activities, for instance, client meetings, brand promotions and employee training activities amongst others, held in the region is estimated to foster the growth of the Singapore MICE tourism market. According to Singapore Tourism Board (STB), the visitors arriving in the country for meetings constitute to almost 20% share of the total visitor population and contributes to around 33% of the overall tourism receipts.
The Singapore MICE Tourism attained a market value of USD 2332.1 million in the year 2017 and is anticipated to achieve a valuation of USD 5214.9 million by 2027 by a CAGR of 8.4% throughout the forecast period, i.e. 2019-2027. The market is further anticipated to achieve a Y-o-Y growth rate of 8.56% in 2027 as compared to the previous year.CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
The Singapore MICE tourism industry is segmented on the basis of Industry into retail, hospitality, transportation, entertainment and others, out of which, hospitality segment is anticipated to hold the largest market share of around 38.10% in the year 2027. The market is further was valued at USD 947.3 million in 2017 and is anticipated to reach USD 1986.9 million by 2027 by growing at a CAGR of 7.7% during the forecast period.
Singapore boasts for some of the best meeting hotels in comparison to other business meeting hotels around the world. Additionally, the country has developed state-of-the-art infrastructure for conducting large meetings and conferences. Furthermore, with the evolving consumer lifestyles globally and with the advancements in technologies, the hotel industry has also observed several digital transformations to aid the services provided by the industry, such as, pre-booking to post-day booking of rooms via online digital platforms. Such factors are anticipated to drive the growth of the hospitality segment in the Singapore MICE tourism market.
Market Drivers & Challenges
Rapid Growth in Travel & Tourism Industry
According to the statistics by The World Bank, number of arrivals of international tourism in Singapore grew from 11864 (000’s numbers) in the year 2014 to 13903 (000’s numbers) in the year 2017.
Singapore is known for offering premier business and leisure destinations that offer customized experiences. The travel and tourism industry in the nation is considered as an important economic pillar in the contribution to the country’s GDP. The nation expects an increase in the number of visitors from around the world on the back of various customized tourist experience offerings which is anticipated to contribute significantly towards the growth of the Singapore MICE tourism market. According to Singapore Tourism Board (STB), international visitor arrivals (IVA) in the nation increased to 9.3 million visitors in 2019. Moreover, overall visitor arrivals in the region stood at 18.5 million numbers in 2018. The upsurge in the arrival of tourists have also impacted positively to the revenues of the hotels. According to another statistics by the STB, gazette hotel room revenues in Singapore reached around USD 2.94 billion with Y-o-Y growth of 7.5% in 2018, and the average occupancy rate (AOR) increased by 1.4 percentage points to 86.2% in the same year. Such factors are anticipated to boost the growth of the Singapore meetings incentive conferencing exhibitions (MICE) tourism market.
Pro-Business Environment and Strong Knowledge Economy
Singapore is a hub for several multinational companies. Owing to the presence of numerous multinational companies with headquarters in the nation, along with the government’s effort to provide lucrative initiatives for prospering a vibrant business environment, the nation has been progressing towards the provision of a favorable business community. Furthermore, the nation also has the presence of numerous international non-profit organizations (INPOs) and has a massive infrastructural network chain of hotels which are equipped with business centers, meeting facilities and internet access for business meetings and events. The presence of such large infrastructure, backed by ongoing developments in the country for tourists with attractive tourist destinations, all of these factors are anticipated to contribute towards the growth of the Singapore meetings incentive conferencing exhibitions (MICE) tourism market.
High Operational Costs of MICE Events
MICE events are held at centers which are equipped with loads of advanced IT technical infrastructure. Owing to high associated costs of these infrastructure, the price of event platforms remains on the higher end, thereby impacting the operational costs of MICE events. Such a factor is considered to hamper the growth of the Singapore meetings incentive conferencing exhibitions (MICE) tourism market during the forecast period.
Some of the affluent industry leaders in the Singapore MICE tourism market are ATPI Ltd., BCD Travel, BI WORLDWIDE™, Carlson Wagonlit Travel, Ace:Daytons Direct (international) Pte Ltd, EXO Travel, World Express Pte Ltd, 1 M.I.C.E. LLP, Freeman Company, Adrenalin Group Pte. Ltd.
Companies are making various efforts to expand their product portfolio to strengthen their position in the market by increasingly offering tourist experiences which are helping them to maintain their growth and gain competitive edge in the MICE tourism market.