By Charles Muchoki | Africa Guardian
Africa’s MICE (Meetings, Incentives, Conferences, and Exhibitions) industry is set for remarkable growth, with the continent’s expansion rate projected to surpass that of regions like the Americas, Europe, and the Asia-Pacific. However, substantial efforts are still needed to fully realize this potential, according to the South African Convention Bureau, a business unit of South African Tourism.
The bureau cites data from the Allied Market Research report, which estimates that Africa’s business events sector was valued at R295 billion in 2023, with a forecast to reach R1.2 trillion by 2032—a compound annual growth rate (CAGR) of 16.8%. South Africa’s MICE industry alone was valued at R121.8 billion in 2023 and is expected to climb to R477.9 billion by 2032.
Despite this optimistic outlook, significant challenges remain. Bjorn Hufkie, GM of Sales at South African Tourism, highlighted inflation as a key issue holding back Africa’s MICE sector. “The pandemic worsened inflation across the continent, disrupting supply chains, weakening local currencies, and driving up import costs,” Hufkie explained. “This has increased operational expenses for the MICE industry, with lodging, transportation, catering, and convention services seeing a 15% rise in costs.”
These inflation-driven cost hikes not only threaten Africa’s ability to attract international events but also make it more expensive for delegates to attend. Additionally, the competitive landscape for hosting business events has heightened the need for cost-conscious strategies, such as offering group rates for travel, to remain competitive.
Despite these hurdles, Africa’s MICE sector continues to grow, bolstered by the rise of experiential travel. Hufkie pointed out that the demand for unique, immersive MICE experiences has fueled the popularity of boutique hotels, eco-lodges, and themed accommodations. “Lifestyle changes, increased tourism promotion, and improved transport infrastructure are all expected to drive further growth,” he said.
The meetings segment currently dominates Africa’s MICE market, accounting for 60.4% of the market share, followed by conventions at 19.5%, and incentives at 12.7%. Hufkie noted that the incentives market is growing at a rapid rate of 17.2%, reflecting the increasing trend of rewarding employees and clients through immersive travel experiences.
“By capitalizing on the growth of experiential travel, diversifying offerings, and addressing inflationary challenges, Africa’s MICE industry is well-positioned to sustain its impressive growth trajectory,” Hufkie concluded.
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