The Mice (meetings, incentives, conventions and exhibitions) industry this year is estimated to recover to 80% of the 2019 level in terms of revenue, but it may slow in 2024 as pent-up demand eases, according to the Thailand Incentive and Convention Association (Tica).
Sumate Sudasna, president of Tica, said business travel grew faster than leisure travel as corporations continued to meet partners and clients, especially after the pandemic.
Thailand remains a favourable Mice destination thanks to facilities for business meetings and a variety of tourism destinations, said Mr Sumate.
He said the exhibition segment picked up faster than the other three branches of Mice this year as companies sought trade events that enabled their purchases or deals to be finalised within a short period.
Corporate meetings and incentives improved as companies were keen on face-to-face meetings to update their businesses and allow workers to meet.
In terms of markets, the Mice industry was dominated by groups from Asia, particularly Singapore, Malaysia and India, followed by Europe and the US, according to Tica.
Chinese groups have been slow to return because of the mainland's sluggish economy and real estate slump, while many firms chose to restrict business travel to domestic trips, said Mr Sumate.
Given the labour shortage in the tourism industry, the Mice segment still requires 30% more skilled workers, although the situation has improved from the beginning of the year, he said.
Mice workers left the industry for other jobs during the pandemic, while many remain unsure about the industry's future and its stability, said Mr Sumate.
Looking ahead to next year, he said the Mice segment could slow as pent-up demand that drove the market in 2023 fades.
Mr Sumate said obstacles include the conflicts in Ukraine and Gaza affecting business travel from European markets such as Poland and Israel, which are among the top leisure markets for Thailand.
Although the US Federal Reserve has signalled reduced interest rates next year, he said it is uncertain how soon companies globally will spend or increase their investment, which affects business trips.
Thailand's Mice industry next year will be mainly driven by regional markets, especially Southeast Asia and India, which benefits from the visa exemption policy, said Mr Sumate.