MICE and F&B recovery a mixed bag in Asia, report says
In Mainland China, upscale hotels have been setting up street food stalls to boost revenue as event and F&B activity declines in part due to austerity measures limiting lavish banquets, according to a Global Asset Solutions report, Addressing the Mixed F&B and MICE Performance across Asia.
From lavish banquets to street food
Zhengzhou’s Yonghe Bojue International Hotel, for example, has set up a street food stall that attracts long queues even before opening, generating up to RMB 30,000 (US$4,100) daily. This is no “marketing experiment”, but a response to structural pressures.
Average F&B revenue at five-star hotels fell 38% from 2019 to RMB 10.21 million (US$1.42 million) in 2024.
Policy-driven austerity measures have intensified the impact on event-related revenues, with alcohol, lavish banquets and other luxury perks for government staff now banned. In some regions, high-end restaurants have reported 60–80% plunges in alcohol sales, and revenue losses exceeding 50% in the same period.
“Instead of returning to banquet-led growth, five-star hotels are resorting to street food stalls to generate cash flow and visibility. This trend underlines a structural shift: traditional banquet and event revenues are no longer reliable, and operators are being forced to balance accessible, mass-appeal offerings with attempts to rebuild premium dining through Michelin- or Black Pearl-level concepts,” the report stated.
Towards lightweight formats in Hong Kong
Similarly, in Hong Kong, hotel restaurants are under strain, while independent, “lighter F&B formats” such as grab-and-go, standalone eateries, shared kitchens and smaller shopfronts gain relevance.
Overall, however, the MICE segment has solidified its role as a key driver of high-value travel to Hong Kong. In 2024, the city recorded approximately 1.42 million overnight MICE visitors, a 10% year-on-year increase, representing around 72% of the 2018 peak of 1.97 million, which was an all-time high.
Southeast Asia’s gatherings fuel hotel F&B
Meanwhile, in Southeast Asia, F&B revenues are rising across the region, led by urban hotels and the return of domestic tourism and social gatherings. The issue for Asia is not one of revenue growth, but rising costs and their impact on profitability. Labour costs have continued to climb since 2019, while food price inflation – driven in part by climate change – is placing further pressure on margins, according to the report.