Some of the positive stories and feedback to emerge out of ibtm world that concluded in December last year was centred on the Middle East and its growing reputation as a meetings, incentives, conferences and exhibition (Mice) hub chipping away at the predominance of traditional favourites in Europe and US. The recently released ibtm world Trends Watch Report 2016 examines the surge of business interest in the region.
In 2016, Dubai grew at a robust rate in terms of Mice business, supported by a very strong increase in air traffic capacity – approximately 14.6 per cent in the first five months of 2016, as per the International Air Transport Association. One example of the power of the Gulf carriers to pour capacity into the market is Emirates expansion of services between Dubai and the UK.
INFRASTRUCTURE UPDATES
One metric that points to a positive forecast for the region is that 80 per cent of the region’s infrastructure is less than two decades old, yet, this year the Middle East has continued to add to its wide range of venues for meetings and incentive events.
Dubai welcomed three new world-class venues: Dubai Opera, Dubai Parks and Resorts, and IMG Worlds of Adventure, which will provide the emirate with important new venues for the hosting of conferences, team-building experiences and other corporate events. Other venues are in the pipeline. Dubai has announced plans to build a new convention centre in Al Jaddaf near Dubai Creek.
The new facility, which will span 55,000 square meters and provide space for 10,000 people, is scheduled to be completed in two years at a cost of Dh1.8 billion ($490 million). The new convention centre is part of the city’s run-up to World Expo 2020, which will take place in Dubai.
Apart from Dubai, Qatar and Oman are busy developing their infrastructure for business events. Qatar has been present in this market for some time, with its Qatar National Convention Centre (opened in 2011) and on August 15 last year, the Oman Convention & Exhibition Centre (OCEC) opened its doors, heralding a new era of opportunity for the Sultanate of Oman as a destination for business events. It will be a hub for sharing knowledge and driving commerce, as well as attracting investment, creating jobs, contributing to the economy and powering growth. The OCEC’s inaugural event was Infra Oman 2016, one of the largest building and construction exhibitions in the Middle East.
The Middle East’s hotel stock is also growing, with new properties opening across the region – not only in Dubai, Abu Dhabi and Qatar, but also in Saudi Arabia, Oman, Bahrain and Kuwait. Keeping pace with the Mice infrastructure growth are the addition of upscale hotel rooms in the region.
POSITIVE ALL THE WAY
Notwithstanding the geo-political turmoil, our colleagues in the Mice industry will do well to leverage new facilities, infrastructure, flight capacities and hospitality options to march ahead with their targets – a competent and professional response is the best chance to overcoming challenges, they have more assets and tools at their disposal than any time in the past.
It is predicted that cost per attendee per day, as well as group sizes will increase in almost all world regions. In the US, there is growing expectation that 2017 will bring a change in the balance of power from sellers to buyers, in terms of corporate and contract rate negotiations between hotels and planners and this may well be seen further afield.
India and China have seen demand from buyers at record levels, despite the slowing growth of the Chinese economy. If show participation reflects growing demand, then international exhibitor numbers up year-on-year across the portfolio of ibtm events, including most notably up 45 per cent at ibtm china, an increase of 20 per cent at ibtm arabia and an incredible rise of 165 per cent compared to 2015 at ibtm latin america.
ABU DHABI’S SUCCESS
Abu Dhabi’s constantly evolving infrastructure, value for money and support mechanisms are creating more opportunities for Mice industry professionals. Testament to this is the fact that a raft of new exhibitors have signed up for the first time to ibtm arabia 2017, the Middle East’s leading one-to-one event for the Mice industry, which takes place in Abu Dhabi, UAE, from February 7 to 9. For event organisers and meeting planners, there is always a new and exciting venue to consider. The world is intrigued to see the Middle East with their own eyes – no other destination on earth has been built from scratch in 50 years.
Shinu Pillai, exhibition director, ibtm arabia, commented: 'Such is the growing popularity of Abu Dhabi as a destination for corporate events and incentive experiences, that we’ve had some extremely high profile brands sign up as exhibitors for the first time, including, amongst others, Millennium Hotels & Resorts, Jumeirah, The Rezidor Hotel Group and IMG Worlds of Adventure. Returning exhibitor numbers are also growing year-on-year, in part given the extremely high calibre of new Hosted Buyers our event attracts each year.'
A major benefit to Abu Dhabi as a location is that it is extremely well connected globally, via Etihad and other premium airlines, and has world-class airport facilities which makes the beginning and the end of a delegate experience in Abu Dhabi at par with the best.
Staff report
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Quick 7
Strategies for Mice planners when budgets are downsized:
Shorten the trip
Book shoulder or off-season
Have fewer qualifiers attend
Avoid five-star properties
Cut the F&B budget (without cutting meal functions)
Use second-tier cities/avoid “glamour” destinations
Offer fewer meal functions
*Source: ibtm world Trends Watch Report 2016