MICE is among the four key emerging industries the Macau SAR Government is targeting. With Macau now open for business, and more large-scale convention and exhibition facilities in town, how will Macau’s MICE industry differ in the future?
The MICE (Meetings, Incentives, Conventions and Exhibitions) industry has always been one of the target industries that the Macao SAR Government puts on its key promotion list. According to the Government’s “1+4“ Adequate Diversified Development Strategy, it is among the four key emerging industries. With the reopening of the city at the beginning of 2023, and the opening of more large-scale convention and exhibition facilities in town, how will Macau’s MICE industry differ in the future? Compared with other relatively developed cities, what advantages does Macau have?
Being one of the SAR Government’s priorities, the MICE industry has been developing for more than two decades and it is now regarded as a symbol of the diversified development of the local economy. Special attention has been given to the growth of the industry since early 2002, with the Government continually striving to improve the city’s economic structure, which is considered as too homogeneous, by proposing “the service industry as the mainstay of the economy so as to sustain coordinated development of all other industries”.
In 2007 the opening of Cotai Expo, a large-scale convention and exhibition center in Cotai, saw the start of the local MICE industry journey. A total of 1,536 MICE events were held in Macau in 2019.
However, the COVID-19 pandemic dealt a significant blow to Macau’s MICE sector, with the number of events dropping to 381 in 2020, even though it slightly increased to 449 in 2021 and 460 in 2022. Fortunately, the city reopened its doors to the world in January this year, and the industry finally embraced the long-awaited recovery.
It is reported that the total number of participants in MICE events in Macau reached nearly 200,000 in the first quarter of 2023, including over 15,000 business visitors who travelled to Macau for meetings, up by 21% and 143% respectively year-on-year.
In early July, the President of the Macao Trade and Investment Promotion Institute (IPIM) Vincent U told media that more than 1,000 MICE events are expected to be held in Macau this year. He said, “The second half of this year will be the peak season for the sector. In addition, local integrated tourism and leisure enterprises will progressively launch a variety of leisure, cultural and MICE projects.”
Increase of venues
With the opening of two new convention and exhibition centers in Cotai that can accommodate up to 16,000 delegates and 6,000 seats this year, the total exhibition venue capacity in Macau has exceeded 240,000 square meters, making the city one of the most dynamic exhibition hubs in Asia. The scale of convention and exhibition facilities even surpasses that of Hong Kong, while the MICE venues in town are diversified enough to meet the needs of various sizes and types of events.
Dr Amy So Siu Ian, Associate Professor in Integrated Resort and Tourism Management of the Faculty of Business Administration at the University of Macau, believes that hotel and hardware facilities, as well as support services for the venues, are one of the strengths of the local MICE industry.
“Macau boasts a wide range of international brand hotels which offer comprehensive facilities and excellent services, satisfying needs of different customers. In addition, Macau also has a wealth of convention and exhibition venues with advanced hardware facilities that are capable of hosting large-scale international exhibitions and conferences.”
Compared to nearby cities, Macau benefits from its large number of resort hotels, which offer more than 240,000 square meters of MICE space. However, when compared to Singapore, another key player in the Asia-Pacific region, Macau still falls short.
The indoor exhibition venues in Singapore span 302,000 square meters, while Las Vegas, known as the convention capital of the world, commands 900,000 square meters of convention space.
Lo Wang Chun, the Managing Director of Sensation Advertising, agrees that the advantage of local convention and exhibition venues lies in their luxury and integration. “Compared to Hong Kong and Singapore,“ he says, “Macau’s exhibition venues are more attractive because of the luxurious services provided by integrated resorts, as well as the integration of exhibition venues and hotels, which is outstanding in the region.”
Hotel facilities
As a tourism city, Macau has positioned itself as a World Centre of Tourism and Leisure. From five-star luxury hotels to affordable hotels, the city provides a wide variety of hotels with more than 41,000 rooms, meeting the needs of different customers and bringing high-end travel and leisure experiences to visitors. Macau has become a popular destination for MICE business travelers.
However, when it comes to accommodating a large number of international business travelers, the question remains whether the 41,000 hotel rooms are sufficient to meet their needs. While the total MICE space in Hong Kong is not as large as Macau’s, the number of hotel rooms is about 83,000, twice as many as in Macau.
Singapore, which is approximately 65% of the size of Hong Kong, has 69,500 hotel rooms, eclipsing Macau by more than 20,000 rooms. As for Las Vegas, the capital of MICE, the number of rooms is over 150,000, more than three-and-a-half that of Macau’s room inventory.
However, Professor Amy So believes that local hotels and restaurants are highly recognized internationally, and Macau‘s reputation as a UNESCO Creative City of Gastronomy has created certain advantages in the international market. “Hotels in Macau have received a variety of recognition, such as Forbes awards and MICHELIN restaurant recommendations. These awards prove that local hotels and restaurants provide high-quality services and products, which is also a competitive advantage in the international market.”
International standard
The SAR government launched the Second Five-Year Plan for the Economic and Social Development of the Macao Special Administrative Region (2021-2025) in 2021.
It devoted a large section to the development of the MICE industry. The official plan provides for a spillover effect of convention and exhibition business to the tourism industry. Through connections with international MICE organizations and enterprises, the plan is to cultivate a group of convention and exhibition brands with international influence while enhancing professional service standards.
Regarding the international influence of Macau’s MICE industry, Professor So says, “Compared with international cities such as Hong Kong and Singapore, Macau’s MICE tourism has certain advantages.
“These advantages include the concentration of integrated resorts, internationally recognized facilities, unique cultural and historical heritage and Macau’s cooperation platform for Portuguese-speaking countries. These competitive strengths make Macau’s tourism and MICE industry more competitive and attractive in the international market, generating potent support for the continuous growth of the city’s economic development and tourism industry.”
Many conventions and exhibitions in Macau have been accredited by the Global Association of the Exhibition Industry (UFI). Since IPIM officially joined UFI in October 2005, at least 10 events in Macau have gain UFI accreditations successfully, in fields covering tourism, commerce, environmental protection, automobiles, yachting and aviation.
These include the Macau International Trade & Investment Fair (MIF), Global Gaming Expo Asia (G2E Asia), and the Macao International Travel (Industry) Expo (MITE).
In an interview, Lo Wang Chun expressed confidence that Macau will welcome more international events in the second half of the year. “Most UFI-approved activities will return to the city in the second half, many of which are internationally renowned exhibitions,” Lo said.
“Over 20 international conferences will come to Macau, from MIF and MFE to the 1st China-Portuguese-Speaking Countries Economic and Trade Expo (Macao). A large-scale watch exhibition is also in the pipeline.”
The World’s Top 50
IPIM joined the International Congress and Convention Association (ICCA) in 2012, the most powerful convention and exhibition organization in the world. At that time, IPIM launched a “One-stop Service“ for MICE Bidding and Support in Macau, attracting more international exhibition organizers to bring their MICE activities to the SAR.
According to the 2019 Statistics Report released by ICCA in 2019, a total of 54 international association conference activities held in Macau received accreditations from ICCA, making the city one of the top 50 international conference cities in the world, ranking at number 48.
However, the pandemic has undone all this effort. After a two-year hiatus, ICCA published the market ranking again in 2022. Only six events in Macau were recognized, and the ranking dropped to number 292.
Professor So points out that after COVID-19, some international MICE events have moved elsewhere, therefore Macau should be more active in international promotion in a bid to enhance its international popularity and attractiveness.
“Macau needs to train more professionals to cope with the increasingly complex and diverse demands of MICE business, and to improve the innovation and competitiveness of the industry.”
Lo Wang Chun says, “The tourism industry always moves side-by-side with the MICE industry, tourism service experience is a vital factor for MICE travelers, who are major targets of Macau in the future.”
Traffic deadlock
Transportation has always been a controversial topic in Macau. Unlike Hong Kong or Singapore, there is no railway system to connect major attractions in Macau. Although the Light Rapid Transit system is now open, it only serves the Cotai area, without connection to the city center. Shuttle bus services provided by local comprehensive tourism and leisure enterprises bring convenience to tourists, but they can only provide limited point-to-point transportation. Macau clearly lacks an effective and convenient public transportation tool.
As for the airport, compared with world-renowned international airports such as Hong Kong and Singapore, the Macau International Airport is not competitive, which undoubtedly hinders the goal of attracting international tourists. Although the Air Macau franchise will come to an end this year, it is still too early to say whether the city is able to attract other airlines to enter and run more international routes.
Professor So says, “Macau’s transportation capacity still needs to be improved. In terms of international flights, the scale of flights and routes is relatively small, which limits exchanges and cooperation between Macau and the rest of the world. In addition, Macau’s local transportation capacity is also to be further improved in order to better serve international tourists.”
The Hong Kong-Zhuhai-Macau Bridge has been in operation since 2018 and has reduced travel time between Macau and Hong Kong International Airport, but travelers are required to clear immigration and customs twice, inevitably causing inconvenience. Shuttle bus services from the restricted area of Hong Kong International Airport to the Macau Port are also limited, with only three buses a day.
Lo Wang Chun believes that Macau’s transportation facilities have improved considerably, but if the city wants to expand international tourist markets, it must pay attention to the sufficiency of air lift. “Can the efficiency of the Hong Kong-Zhuhai-Macau Bridge, which is the key connection between Hong Kong and Macau, be improved? Can the traffic between the port and the other regions be smoother? All these are determining factors which will impact the experience of international tourists to Macau.”
Future Development
With MICE as one of Macau’s key industries, the SAR government is actively developing the global market after the pandemic, and expecting to introduce international tourists into the convention and exhibition industry. At the 11th Macao International Travel (Industry) Expo held in early July, MGTO brought 380 international convention and exhibition exhibitors to Macau, hoping to boost the synergistic effect between MICE and the tourism industry.
Macau’s Committee for the Development of Conventions and Exhibitions held its first ordinary plenary meeting of the year on 4 July. The government said that Macau has established a professional team that is capable of undertaking top international conferences and exhibitions, while the quality of software, hardware and venues is in line with international standards. In the future, the focus of Macau’s MICE industry will shift from quantity to quality. It’s hoped to see the cooperation between the MICE industry and other industries in Macau strengthened.
