Africa's MICE industry eyes growth amid global competition and economic hurdles
The global MICE (Meetings, Incentives, Conferences, and Exhibitions) industry is thriving, valued at approximately $523.3bn (R9.7t) in 2023, and projected to reach $1,384.9bn (R25.5t) by 2032, with a compound annual growth rate (CAGR) of 11.4%.
Source: Freepik
Africa's business events sector is also experiencing significant growth, estimated at $16.6bn (R295bn) in 2023 and expected to reach $65.6bn (R1.2t) by 2032, reflecting a CAGR of 16.8%. Specifically, South Africa's MICE industry was valued at $6.6 billion (R121.8bn) in 2023, with projections of $25.9bn (R477.9bn) by 2032, according to an Allied Market research report.
Notably, Africa's MICE industry is expected to outperform growth rates in other regions, including the Americas, Europe, and Asia-Pacific.
Inflation and high costs hinder growth
Despite the promising outlook, Africa’s MICE industry faces significant barriers, with inflation being a key challenge. The pandemic exacerbated inflationary pressures across the continent, impacting supply chains, devaluing local currencies, and increasing import costs due to global trade disruptions.
Governments’ responses, to curtail inflation, included fiscal stimulus measures and borrowing. In 2023, Africa’s inflation rate stood at 18.4%, much higher than the global average of 6.8%. This rising inflation has led to increased operational costs in the MICE sector, with expenses for lodging, transportation, catering, and convention services increasing by 15%.
These rising costs not only reduce Africa's competitiveness in attracting international events but also make it more expensive for delegates to attend.
Inflation and high operational costs are significant challenges to the growth of Africa's MICE industry, threatening its competitiveness.
Additionally, the highly competitive environment for securing business events has led to enduring cost-consciousness among event organisers. The need for innovative strategies to cut costs, such as incorporating group fares into meeting programs, has become crucial.
Using experiential travel and growth to tackle challenges
Despite these challenges, several factors are driving the continued growth of Africa’s MICE sector. The rise of experiential travel has created demand for unique and immersive MICE experiences, boosting the popularity of boutique hotels, eco-lodges, and themed accommodations. Changes in lifestyle, increased tourism promotion, and improved transport facilities are all expected to fuel further growth.
The meetings segment dominates Africa’s MICE market, holding 60.4% of the market share, followed by conventions (19.5%) and incentives (12.7%). The incentives market, which is experiencing the highest growth rate at 17.2%, reflects the growing trend toward rewarding employees and clients through immersive travel experiences.
Additionally, sectors such as information technology and telecommunications (25.7%), agriculture and food (19.8%), and finance (18.5%) are key contributors to the MICE industry.
South Africa’s stronghold in the African MICE market is notable, with the country attracting 70.8% of its events from the international segment. Its leading sectors—information technology, agriculture, finance, and hospitality—ensure continued growth, even amid inflationary pressures. South Africa's MICE industry is set to benefit from the projected CAGR of 16-17% for both its international and domestic segments through 2032.
By capitalising on the rise of experiential travel, industry diversification, and sectoral growth, Africa's MICE industry can overcome inflationary challenges and maintain its strong growth trajectory.
