Singapore - Continued MICE growth in 2012?

A recent report, published in The Business Times (1 November 2011), noted that Singapore's MICE sector can expect to see continued growth in 2012, based on the number of events that major venues have already secured. Here's a summary of some of the points highlighted in the article:

1. Since commencing operations in April 2010, close to 2,400 events have been booked at Marina Bay Sands and participant numbers have exceeded the 1 million mark. The convention centre is running at close to full capacity where trade show space is concerned.
2. Some of the events held (or to be held) at Marina Bay Sands include Cruise Shipping Asia 2011; WasteMET Asia 2012; Singapore International Water Week 2012; and CommunicAsia 2011.
3. More than 1,200 events have been held at Resorts World Sentosa between January 2011 and June 2011.  These events included the World Chinese Entrepreneur Convention and the 13th Asia Pacific Life Insurance Congress.
4. Resorts World Sentosa expects the number of events held in 2012 to be twice the number for 2011.
5. Singapore Expo plays host to some 600 events each year, with participant numbers exceeding 6 million people.  The convention centre is to launch a new wing in 2012 (March).  This will increase its capacity by more than 8,000 sq metres
6. Suntec Singapore International Convention & Exhibition Centre expects to host a total of 1,500 events in 2011, and have 7.1 million participants walk through its doors.
7. Suntec City has also announced a S$410 mn asset enhancement initiative which will lead to an increase in retail space and value adding to its exhibition venues.  Of this amount, S$180 mn will be spent on the convention centre with a view to increasing the levels of flexibility, functionality and convertability of the convention space, and integrating advanced technology into its systems and operations.

As much as Singapore's MICE sector growth for 2012 appears to be pushing ahead, I do have concerns given the current developments in Europe and the unexpected collapse of MF Global in the United States.  It is already becoming apparent that global economic growth over the next 6-12 months will be dampened. What remains uncertain is the speed of deterioration and level of impact some of these recent developments will have on the health of the global economy.  It could lead to a cut back on spending on meetings, conferences and trade shows - fewer number of participants, delegates, exhibition and even sponsors. Companies will be more reluctant to send their employees on overseas trips to attend meetings or participate in other MICE activities etc.

The negative impact on the MICE sector is in part due to the misunderstanding of the sector's contribution to business and industry growth and development. MICE events are foundational blocks for companies and business executives wanting to increase sales and business opportunities.  As such, MICE events take on greater importance when economies are going downhill.  This is a point worth addressing in detail and I intend to write more on this in a later blog.