Impact of MICE activities on GDP

With changing times, India, Brazil, Indonesia, UAE, Saudi Arabia and other developing nations have gained significance given the contribution they make to the global GDP, workforce, consumer market, supply chain and overall economy

MICE tourism has a significant impact on the world economy. It is recognized as a major money-spinner for the travel and tourism industry. International tourism industry faces unique challenges, and the activation and development of services in MICE tourism can help revive the industry.

MICE tourism contributes to the growth and development of the world economy, acting as a significant source of foreign exchange, employment growth, and improvement of the country's balance of payments structure.

It also has a multiplier effect on the economy, with accommodation, travel and other related industries benefiting courtesy of MICE events. MICE tourism can accelerate development of regions and cities, shape their image, and widen the reach of technology and information. It is regarded as a roll booster for regional and urban economic development, and as a receiver of occupations for practitioners. It has the potential to contribute to the overall economic development of countries and regions worldwide.

The global MICE industry market was valued at $782.80 billion in 2023 and grew at a CAGR of 5.5 per cent from 2024 to 2033. The market is expected to reach $1,337.14 billion by 2033. Growing government support and incentives for the industry will drive its global growth. The rising business expansion is also driving the market. Developing regions will create future opportunities for the industry, as there will be increased business activities. The rise in investment in the tourism sector will also attract MICE events.

The exhibition industry contributes $325 billion to the global economy and approximately 32,000 exhibitions are held in a year across the globe.

MICE events benefit people, companies, and the host cities in addition to themselves. MICE promotes partnerships, learning, networking, and knowledge exchange. Additionally, the growth of the MICE sector boosts sustainable regional development, generates jobs, and promotes these places as a sought-after tourism destination. It produces foreign exchange and expands commerce and investment. MICE events offer business development opportunities through seminars, training sessions, and workshops. These activities help the employees upgrade their skills, enhance their knowledge, and gain new insights about their industry. MICE can bring people from different cultures together, which can increase understanding and sharing of cultural experiences.

Governments are increasingly focusing on developing the MICE industry – previously, high-level and most anticipated events of consequential nature were restricted to Europe and North America, given the dominance of stakeholders from these regions and the availability of the right infrastructure to organize these meetings and events. However, with changing times, India, Brazil, Indonesia, UAE, Saudi Arabia and other developing nations have gained significance given the contribution they make to the global GDP, workforce, consumer market, supply chain and overall economy. Therefore, governments of these countries are increasingly focusing on developing their MICE industry with the right attitude and funding to attract opportunities to elevate their citizens' lives. Therefore, the government's increasing focus on developing the MICE industry to attract opportunities to boost the economy will drive the growth of the global MICE industry market.

Despite India’s natural and cultural advantages and its status as one of the world’s fastest-growing economies, the MICE sector remains largely untapped, with less than one per cent share in the global market.

MICE industry was expected to be upward of $800 billion globally. India’s share was expected to be around less than one percent. MICE sector is said to have the strongest and direct contributions to GDP across the tourism sector. Every Rs. 100 spent in India can make an indirect impact of Rs. 160. In the MICE sector, economic output globally is estimated at $1 trillion or more.

Hence, it is imperative that the Union and State governments must double the MICE share to 2.5 per cent by targetting more than Rs. One lakh crore in direct economic and Rs. 1,60,000 crore in indirect benefit to all our states.

A thriving MICE industry is supported by several factors, including the right infrastructure, which is well-equipped to accommodate the attendees, conduct the event, has a seamless commute, and is aesthetically pleasing and comfortable without any pressing safety concerns.

Governments recognize these factors and have invested heavily in developing MICE centres with conference halls, meeting rooms, well-equipped virtual rooms for meetings over screens, and other requirements. The air connectivity and road infrastructure are being improved for seamless and hassle-free travel. All these factors will support the MICE industry’s growth during the forecast period.