A pioneering research study, set to become annual, has been produced by GIBTM which takes place for the first time in Abu Dhabi. The research provides the first view at an aggregate level of both the demand and supply trends for the…
A pioneering research study, set to become annual, has been produced by GIBTM which takes place for the first time in Abu Dhabi. The research provides the first view at an aggregate level of both the demand and supply trends for the industry in the Gulf and wider Middle East according to RTE.
The research has been undertaken during January and February 2007 in conjunction with MICE International and Reed Travel Exhibitions both using their regional and global databases of international meeting planners and suppliers with the survey also running online. The results were assessed by Sally Greenhill, Director of The Right Solution, and a conference market consultant. Sally is also an independent industry commentator.
“There can be no question that the pace of development of meetings industry facilities within the Gulf is the most dramatic of any region globally,” says Paul Kennedy MBE, Group Exhibition Director Meetings & Incentive Events, Reed Travel Exhibitions.
The survey combined a database of several thousand and produced responses from 368 buyers and 192 suppliers. The average size of the organization for buyers was 154 employees with origins from Europe, America, Asia, Middle East, Africa and Australia. Suppliers were from destination management companies, hotels and spas, incentive specialists, travel suppliers, airlines and venues.
Highlights of the results from the BUYERS:
- In the last 12 months 35% of buyers had organized events in the Gulf/Middle East/North Africa
- A dramatic surge in demand will see 74% will hold events in destinations in the Gulf/Middle East/North Africa in the next 12 months
- A further 25% will hold increased numbers of events in the Gulf/ME/NA region in the next 12 months
Over the last 12 months the top five destinations where events were held were: Dubai, Egypt, Morocco, Tunisia and Jordan. However, the next 12 months shows a different trend with the top five being Dubai, Abu Dhabi, Egypt, Morocco and Oman.
The top influencing factors when placing international events shows a major disparity in what the supplier and the buyer believe are the key influencing factors. Buyers see cost as number one while Suppliers see location as the leading factor. However, both see quality of accommodation and quality of service as being second and third most important in the decision making process. Whilst buyers see weather as the least important influence, suppliers rate it 5th on their list.
The top influencing factors for buyers’ choice of hotels and meeting venues were:
- Location
- Price
- Facilities
- Service Level
- Client preference
Highlights of the research from SUPPLIERS:
96% of the 192 respondents for suppliers are currently developing new business from the Gulf/ME region. Respondents demonstrate global representation with clients spread throughout the world, however 64% think the Gulf/ME region has the most growth potential worldwide for their organization. 83% will target business from corporates in the region in the future, 61% from agencies/third parties and 23% from thenot for profit sector.
The top five client locations for suppliers currently are Dubai, Abu Dhabi, Egypt, Saudi Arabia, Qatar and Jordan (equal 5th). The top destinations where they believe they will attract business in the future are Dubai, Abu Dhabi, Qatar, Saudi Arabia, Bahrain.
Sally Greenhill says, “It will be interesting in the future whether this focus increases the volume of international and regional association events in the region as Egypt at 36th position, is currently the only country in the region in the top countries worldwide to attract international association events, according to the Union of International Association statistics 2006 and 49th position for the ICCA statistics 2006, with Morocco at 54th position.”
The key corporate business sectors for suppliers’ clients in the Gulf/Middle East region are: finance/banking/insurance, pharmaceuticals/medical, electronic/communications, oil/gas/utilities, construction/engineering.
“This research shows that there has been too much reliance on pre-conceptions rather than concrete facts of the meetings industry in the Gulf (otherwise known as MICE). For the first time we now have knowledge that can be utilized to maximize the region’s potential. Traditionally there has been a lot of focus on bricks and mortar development but we hope to see a shift towards education and knowledge to understand the requirements of the international business community. This research is a major first step in bridging the gap,” says Rob Nicholas from MICE International.
“In launching this research we wanted to add an enhanced focus to the meetings industry in this region at a time when GIBTM is raising the awareness of what is on offer. The findings provide much ‘food for thought’ and I hope that the findings will accelerate the recognition of the importance of the meetings industry as a rapidly growing economic activity and assist in the formal recognition of those working in the industry as ‘meeting professionals’,” commented Paul Kennedy MBE, and member of the International Board of Directors of Meeting Professionals International (MPI).
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
