Delegates from around the world attend a meeting at a convention centre in South Africa. Picture: Pexels
Africa's MICE (Meetings, Incentives, Conferences, and Exhibitions) industry is poised for exponential growth, with the continent’s growth rate predicted to outperform other regions such as the Americas, Europe, and the Asia-Pacific.
However, more work needs to be done to unlock this potential.
That’s according to the South African Convention Bureau, the business unit of South African Tourism.
The bureau said that data from the Allied Market research report highlights that Africa’s business events industry was valued at R295 billion in 2023 and is projected to reach an estimated R1.2 trillion by 2032, at a compound annual growth rate of 16.8%.
It also added that South Africa’s MICE industry was valued at R121.8 billion in 2023, expected to reach R477.9 billion by 2032.
Bjorn Hufkie, the GM of Sales at South African Tourism, said that 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.
“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,” said Hufkie.
He said that additionally, the highly competitive environment for securing business events has led to enduring cost-consciousness among event organisers whilst the need for innovative strategies to cut costs, such as incorporating group fares into meeting programs, has become crucial.
Hufkie said that despite these challenges, there are several factors driving the continued growth of Africa’s MICE sector and the continent can leverage experiential travel to drive growth in the industry.
“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,” he said.
He also added that the meetings segment dominates Africa’s MICE market, holding 60.4% of the market share, followed by conventions at 19.5% and incentives at 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,” said Hufkie.
“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,” said Hufkie.
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