2015 Perspectives

on MICE Industry in ASEAN

MICE industry in the ASEAN region has grown steadily during the past 5-6 years and has served as a key driver for ASEAN economic development. By far, the industry still has more growth potential as a result of the continued growth of the overall ASEAN economy and the advent of the ASEAN Economic Community (AEC).

The AEC, which will be effective in 2015, is expected to be a major factor contributing to the economic growth of the ASEAN economy. The movement of capital and labour will enable Southeast Asia to attract more investors from all over the world. The effects of AEC integration will have a positive impact on the MICE industry as well, according to a report by the IPK’s Asian Travel Monitor®. MICE industry accounts for 54% of the overall business travel market which has a rapid growth rate. The growth of incentives accounts for 61% while conventions grew 44% and conferences by 27%. The figures are cumulative percentages since 2009.

In addition, the development of large-scale infrastructure, including transportation by land, sea and air, expanding connections with neighbouring countries, will give investors see more business opportunities in this region. In terms of the MICE industry, many countries have expanded their international exhibition centres to accommodate the influx of business travellers. Kuala Lumpur’s New MATRADE venue is scheduled to add 100,000 m2 in 2414. Jakarta will add 160,000 m2: BSD Convention Center and Alam Sutera International Exhibition and Convention Center offer 100,000 m2 and 60,000 m2 of event space respectively. In Thailand, IMPACT Muang Thong Thani, is already ASEAN’s largest exhibition centre. It recently announced an expansion to create a total indoor space of over 140,000 m2.

Basic infrastructure systems, facilities, transportation and moderate cost of living, will boost confidence among investors and encourage them to organise MICE events in the ASEAN region in the future. Many investors are showing signs of interest and joining with local business operators to organise MICE events in the ASEAN region. Many of them bring MICE events that have been ever organised in Europe to ASEAN to expand their customer base. This also provides new business opportunities for local MICE business operators.

Thus ASEAN is now recognised as a global MICE destination. In 2013, three of ASEAN’s major cities – 1) Singapore (ranking second), Bangkok and Chiang Mai (ranking joint fifth), and Ho Chi Minh and Hanoi (ranking eighth) – were among the top 10 cities for meetings and events in Asia and Oceania; 2) major ASEAN destinations hosting more than 100 association meetings are Singapore (175 meetings), Thailand (136 meetings), Malaysia (117 meetings), and Indonesia (106 meetings); 3) the Philippines and Vietnam followed suit with 53 and 52 association meetings. The remaining countries are still in the initial stage of development in terms of the number of association meetings held.

Although the ASEAN region will have more rooms to grow the MICE industry, the important thing that ASEAN member countries must consider to support the growth is the development of MICE industry standards that must be practiced in the same direction by all member countries. Thailand Convention and Exhibition Bureau (TCEB) has collaborated with organisations and institutes involved in the MICE industry, both domestically and at ASEAN level, to drive the development of ASEAN MICE industry effectively. A noticeable feature of this cooperation is the development of the ASEAN MICE Venue Standard (AMVS) which is an effective tool to raise the standard of MICE operators within the region and helps boost confidence among investors and MICE travellers. TCEB has also initiated cooperation in MICE education and development of MICE human resources with related agencies.

In order to expand the network of cooperation at ASEAN level, TCEB is pushing forward an “ASEAN MICE Collaboration” project which was initiated in 2011. TCEB has collaborated with other agencies of Indonesia, Laos, Vietnam, Philippines, Myanmar, and China. This aims to build cooperation with member agencies that have high potential to push forward the continuous development of Thailand’s international exhibition market.

In conclusion, the MICE industry is a major driving force of the ASEAN economy as it can generate more revenue than traditional incentive travel business. With the positive potential in ASEAN, plus with the rise of the Asia market which attracts the global economy’s interest, the MICE industry in ASEAN is surely destined for a brighter future.