UNPACKING THE ECONOMIC SIGNIFICANCE OF MICE: EVIDENCE FROM DOMESTIC MICE TOURISM IN INDONESIA
DOI:
https://doi.org/10.33649/iconmths.v2i1.785Keywords:
MICE, IRIO, Economy Impacts, IndonesiaAbstract
MICE has great potential as a driver of inclusive and sustainable economic growth, but the study is still limited. In fact, MICE is not just a tourism subsector, but a node of interaction between industries and regions. This study aims to measure the economic contribution of MICE domestic tourists to the Indonesian economy, both in terms of output, income, employment, and added value, as well as to evaluate sectoral linkages and spillover effects between regions.
The methodology used is the Interregional Input-Output (IRIO) model, which tracks economic impacts sectorally and spatially. MICE travelers' spending is converted into a final demand vector, which is then used to calculate changes in output, income, labor, and added value at the provincial and sector levels.
The results show that domestic MICE spending generated additional output of IDR 219.10 trillion, revenue of IDR 44.77 trillion, creation of 1.36 million jobs, and added value of IDR 122.75 trillion. The largest sectoral impact was felt in the accommodation, trade, land transportation, and food and beverage sectors. Spatially, provinces such as DKI Jakarta, East Java, and Bali received the greatest absolute benefits, while S.R. Yogyakarta, NTB, and Southeast Sulawesi recorded the highest percentage growth. These findings affirm the role of MICE as a lever for the national economy and a tool for regional equity.
In conclusion, the MICE sector has demonstrated its role not only as a driver of economic growth but also as a catalyst for deeper regional economic integration. Recommendations include promoting policies that the impact of MICE is not only temporary, but also the foundation for inclusive and sustainable long-term economic growth.
References
Ahmad, I. (2022). Microfinance for Poverty Reduction in Pakistan: A Sectoral Analysis. Journal of Development and Social Sciences, 3(IV). https://doi.org/10.47205/jdss.2022(3-IV)10
Bari, M. W., & Shaheen, S. (2020). Constraints of business tourism and proposed remedies: China-Pakistan economic corridor-based view. 1–17. https://doi.org/10.4018/978-1-7998-3142-6.ch001
BPS-Statistics Indonesia. (2021). Interregional Input-Output Tables of Indonesia 2016 for Fiscal Year 2021: Vol. 07100.2113 (Direktorat Neraca Produksi, Ed.). Direktorat Neraca Produksi. https://www.bps.go.id/en/publication/2021/12/29/3ea49c0d856eceaba836792d/tabel-interregional-input-output-indonesia-tahun-2016-tahun-anggaran-2021.html
BPS-Statistics Indonesia. (2025). Domestic Tourism Statistics 2024 - BPS-Statistics Indonesia. https://www.bps.go.id/en/publication/2025/03/26/a7dd5a107d0dac1a41a3e414/statistik-wisatawan-nusantara-2024.html
Chang, I. Y., & Chang, W. (2020). Influence of environmental friendliness in the meetings, incentives, conferences, and exhibitions (MICE) industry on green perceived quality and green trust. Journal of Environmental Protection and Ecology, 21(4), 1194–1202. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85095780863&partnerID=40&md5=2c75fc3a3a2c55c5c0893bd98db2ffe9
Delaney, E. (2022). Employment as a professional conference organiser. 70–91. https://doi.org/10.4018/978-1-7998-7781-3.ch004
Draper, J., Dawson, M., & Casey, E. (2011). An Exploratory Study of the Importance of Sustainable Practices in the Meeting and Convention Site Selection Process. Journal of Convention & Event Tourism, 12(3), 153–178. https://doi.org/10.1080/15470148.2011.598353
Eriksen, L., & Ahmt, T. (1999). Measuring and Modelling the Regional Impact of Tourism in Denmark. International Journal of Tourism Research, 1(5), 313–327. https://doi.org/10.1002/(SICI)1522-1970(199909/10)1:5<313::AID-JTR199>3.0.CO;2-4
Hardini, R., Lestari, R., Digdowiseiso, K., & Tri, N. D. (2024). MICE and the future of tourism in Indonesia. Multidisciplinary Output Research for Actual and International Issue Journal, 4(3), 27–34. https://doi.org/10.54443/morfai.v4i3.1458
Kim, S., Williady, A., Wang, J., & Kim, H. (2024). A Mixed-Method Approach to Grounded Theory Regarding the MICE Industry at Busan Exhibition & Convention Center. Tourism and Hospitality, 5(4), 1012–1027. https://doi.org/10.3390/tourhosp5040057
Kitamura, Y., Karkour, S., Ichisugi, Y., & Itsubo, N. (2020). Carbon footprint evaluation of the business event sector in Japan. Sustainability (Switzerland), 12(12). https://doi.org/10.3390/su12125001
Klinmalai, S., & Kaewlai, P. (2024). Assessment and Selection Criteria for MICE Destinations and Convention Centers in Thailand. Journal of Architectural/Planning Research and Studies, 21(2), 245–262. https://doi.org/10.56261/jars.v21.258316
Kusuma, C. S. D. (2019). MICE - Masa depan bisnis pariwisata Indonesia. EFISIENSI - KAJIAN ILMU ADMINISTRASI, 16(2), 52–62. https://doi.org/10.21831/efisiensi.v16i2.27420
Liu, A. (2022). Impact of Tourism on Regional Economic Growth: A Global Value Chain Perspective. SSRN Electronic Journal. https://doi.org/10.2139/SSRN.4019859
Manente, M. (1999). Regional and Inter-Regional Economic Impacts of Tourism Consumption: Methodology and the Case of Italy. Tourism Economics, 5(4), 425–436. https://doi.org/10.1177/135481669900500408
Mena-Navarro, A., Almeida-García, F., & Cortés Macías, R. (2024). The role of the MICE sector in Singapore’s tourism policy. A historical perspective. Journal of Policy Research in Tourism, Leisure and Events, 16(4), 710–730. https://doi.org/10.1080/19407963.2022.2043880
Minohara, K., Muguruma, T., Tanizaki, Y., Gotoda, N., Lee, S., Aburatani, T., Yaegashi, R., & Kometani, Y. (2025). A Simulation-Based Decision Support System for MICE Event Design and Implementation in Blended Reality. Lecture Notes in Computer Science, 15775 LNCS, 191–206. https://doi.org/10.1007/978-3-031-93828-3_15
Momani, H. R., MAT SOM, A. P. P., Al-Qassem, A. H., Muhammad Salim, M. A., & Eppang, B. M. (2023). THE EFFECTS OF SEASONALITY ON MICE TOURISM DEMAND IN JORDAN. Planning Malaysia, 21(6), 425–439. https://doi.org/10.21837/PM.V21I30.1412
Mussina, K. P., Assylkhanova, A. Z., Mutaliyeva, L. M., Baitenova, L. M., & Teleubay, Z. B. (2019). Economical analysis of MICE tourism development in Kazakhstan; Análisis económico del desarrollo del turismo MICE en Kazajstán. Espacios, 40(6). https://www.scopus.com/inward/record.uri?eid=2-s2.0-85061653801&partnerID=40&md5=01eb2d514693a16d15b4667efab85047
Rudatin, C. L., Balqiah, T. E., & Assauri, S. (2019). The role of peripheral conference service in developing revisit intention to the host destination. Pertanika Journal of Social Sciences and Humanities, 27(S2), 181–196. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85076360200&partnerID=40&md5=0c4d5d014df32c627de057b1ce16af1d
Singh, P. K., & Chudasama, H. (2020). Evaluating poverty alleviation strategies in a developing country. PLOS ONE, 15(1), e0227176. https://doi.org/10.1371/journal.pone.0227176
Syah, F., & Rajoendah, I. K. (2022). The role model of MICE activities after the COVID-19 pandemic in Indonesia. Journal of Tourism Education, 2(1), 23–37.
Tohmo, T. (2018). The economic impact of tourism in Central Finland: a regional input–output study. Tourism Review, 73(4), 521–547. https://doi.org/10.1108/TR-04-2017-0080
Wang, W. C., & Lin, C. H. (2021). A model for sustainable tourism development of hot spring destinations following poverty alleviation: Understanding the tourists’ perspective. Sustainability (Switzerland), 13(17). https://doi.org/10.3390/su13179856
Wu, J., Liu, X., Ruan, J., Qi, X., Wang, C., & Fan, D. (2021). Space Power in Inclusive Development: Industrial Clusters and Rural Anti-Poverty. International Journal of Environmental Research and Public Health, 18(20), 10943. https://doi.org/10.3390/ijerph182010943
Wu, S., Hong, Y., Jia, Y., Xu, X., & Wang, J. (2023). Analysis of spatial structure characteristics and influencing factors of Beijing-Tianjin-Hebei Region MICE cities. PLoS ONE, 18(7 July). https://doi.org/10.1371/JOURNAL.PONE.0287695
