The domestic MICE (Meetings, Incentives, Conventions, and Exhibitions) industry is experiencing rapid growth, yet government support budgets have been cut.
During a National Assembly audit of the Ministry of Culture, Sports and Tourism on October 7, Democratic Party lawmaker Kim Yoon-deok criticized the ministry for reducing its MICE-related budget and urged for financial support measures.
According to the Korea Tourism Organization's '2024 MICE Industry Statistics Research,' the number of domestic MICE events is projected to reach 179,339 in 2024, marking a 33.2% increase from the previous year. The total number of participants is expected to rise by 53.9% to 29,239,602, with foreign participants increasing by 30.7% to 1,998,898.
Despite this growth, government support budgets have decreased. The proposed budget for MICE industry support in 2027 is set at 15.97 billion won, down from 17.32 billion won this year.
Kim noted that budget shortfalls have led to missed opportunities for hosting events. He explained that insufficient funding for international conference support resulted in losing events to China, which offered more competitive hotel pricing for a Malaysian group of 1,000 and an Indian group of 4,000.
Kim emphasized the need to distribute MICE demand, which is concentrated in the capital region, to local areas such as Cheongju, Gwangju, and Gyeongju. He also pointed out that the budget for fostering dedicated organizations for international conferences in regions like Jeonju and North Gyeongsang has been reduced.
"Reducing the budget for the growing MICE industry contradicts the policy direction of promoting local-led growth and revitalizing regional tourism," Kim said. "MICE is a high-value industry that benefits hotels, restaurants, transportation, shopping, and local small businesses, and is key to job creation."
He urged the ministry to prepare a proactive budget increase plan instead of the current cuts, emphasizing the importance of the MICE industry as a core component of inbound tourism.
Minister Choi Hwi-young agreed on the necessity of increasing the budget.
Choi stated, "The MICE industry is a high-value sector where per capita spending by participants is more than double that of regular tourists. Although the prioritization in the government budget adjustment process did not reflect our hopes, I will submit a document outlining our commitment and specific measures during the remaining National Assembly budget review process."
* This article has been translated by AI.
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