This report from the Japan Tourism Agency examines the current state and challenges of capital investment in MICE (Meeting, Incentive, Convention, Exhibition) facilities in Japan, comparing them with overseas best practices and understanding organizer needs.
The survey reveals that 90% of domestic MICE facilities have been in operation for over 20 years and are preoccupied with addressing aging infrastructure and safety concerns. Capital investments to date have focused primarily on legally required repairs and maintenance, with limited investment in functional enhancements. While some facilities have utilized subsidies for equipment installation, the utilization of such programs remains limited.
Main Challenges in Capital Investment
Financially, private facilities struggle to allocate funds due to their financial conditions, while public facilities face difficulties obtaining budget approval from local governments, making functional enhancement investments challenging. Beyond financial issues, challenges include a lack of personnel to accumulate capital investment knowledge and insufficient information gathering on trends and organizer needs.
Differences Between Japan and Advanced Countries
MICE-advanced countries view facilities as "economic infrastructure" and "common urban assets," treating them as active investment targets, whereas Japan perceives them as "event boxes" and views capital investment as an expense. In South Korea, public facility capital investments undergo pre-evaluation by the evaluation agency PIIMAC, enabling systematic investment decisions. In Frankfurt, MICE facilities are positioned as "places that attract people to the city," with investments emphasizing economic ripple effects on the region.
Trends in New MICE Facilities and Organizer Needs
New MICE facilities show trends toward sustainability initiatives, cutting-edge technology adoption, and flexible layout designs. Particularly in technology, high-speed internet infrastructure is being developed, while sustainability efforts include renewable energy use such as solar panel installation and energy conservation. High-speed internet has become a mandatory requirement for some organizers.
Major overseas facilities are expanding and renovating to meet growing conference demand, while strengthening sustainability measures such as solar panel installation and water usage reduction (with some achieving 27% reduction). However, increased bookings were observed only in facilities that underwent major renovations such as expansions or reconstructions; the attraction-enhancing effects of sustainability and digital-related capital investments have not yet been confirmed.
The article suggests that for Japanese MICE facilities to maintain and improve international competitiveness, they need to transform their positioning from "event boxes" to "economic infrastructure" and implement strategic capital investments.