The Gulf Incentives, Business Travel & Meetings Exhibition’s – GIBTM – Fourth Middle East Meetings Industry Report presented today (Tuesday 30 March) provided valuable insights into the developing meetings industry across the Gulf and wider Middle East region. The report predicts significant growth potential, with increased numbers of events using a wider range of destinations.
Report at-a-glance summary
Buyers
· 458 buyer respondents from 57 countries – highest number of respondents since survey began in 2007
· 58% held events in the Gulf/ME over the last 12 months –primarily incentive travel and meetings
· Mean number of events in region per buyer respondent is 4.6 (down from 5.7 last year but up from 4 in 2008)
· Mean number of delegates 204 (up from 154 last year and 143 the year before)
· Mean budgets for events in ME US$495,400 (down slightly from US$505,000)
· 26 different destinations used throughout the region remain dominated by Dubai. Egypt, Abu Dhabi, Morocco, Jordan, Qatar and Oman all attracting significant numbers of events
· 35% said budgets for events in the region in 2010 have increased – 47% said they have stayed the same
· 50% of buyers predict they will organise more events in 2010 – 35% said they will organise the same amount
· 55% anticipate selecting new destinations this year
· Abu Dhabi predicted to increase number of events held this year
· Cost is the most important influencing factor when placing events.
Suppliers
· Experienced lower levels of events business in the region in 2009
· Average percentage of business in the region was 12% (down from 28% last year).
· Mean value of suppliers business in the region was US$966,000 (down from US$1,030,250).
· 55% predicting increased number of events in 2010.
· 87% looking to develop more business in the region.
· 58% think the region has the most growth potential in the world.
View from buyers
The 2010 report produced responses from 458 buyers from 57 countries.
58% of respondents had held events in the region over the last twelve months with 25% having organised more events than in the previous year; the most frequently organised type of event being incentive travel and meetings.
Events had been held in 26 different destinations with the most popular being Dubai, Egypt, Abu Dhabi, Morocco, Jordan, Qatar and Oman. Both Bahrain and Saudi Arabia had slipped down the chart since last year.
Those destinations where buyers expected to hold events in the next year were headed by Dubai followed by Abu Dhabi, Egypt, Morocco, Oman and Jordan. For the first time, there is a higher percentage holding events in Abu Dhabi as well as Algeria being considered to host events.
The mean expenditure for events in the region reduced slightly to US$495,400 from US$505,000 in 2009. The mean budget for events worldwide was US$2,300,000, clearly influenced by the 15% who manage budgets of over US$3,000,000.
35% had seen budgets for the region increase, with 47% saying they have remained as last year and 18% seeing a decrease. The research highlighted that 56% expected the number of events to increase in the next twelve months with incentives and corporate conferences likely to benefit.
43% expected the duration of events to increase, whilst 43% expected them to remain the same.
In terms of influencing factors when placing an event, buyers put cost top of their list, followed by quality of accommodation and service, overall appeal of the destination, travel time and security. Quality of facilities has reduced from three in the table last year to eighth.
Overall buyers are looking to the coming year with optimism with 50% believing they will organise more events. Budgets will remain under pressure and with more destinations being considered for events, Dubai’s dominance is likely to be challenged.
The key trends influencing whether events will be organised is headed up by the economic climate and pressure to reduce costs and development progress in the region. Green and environmental issues, which were making headlines in recent years, are no longer a major concern.
View from suppliers
Responses were gathered from 72 suppliers with the largest proportion from Dubai, Abu Dhabi, Egypt, Qatar and Saudi Arabia.
Suppliers have experienced lower levels of business in the region during 2009. 15% reported that all their business took place in the Gulf/Middle East whilst the remaining 85% saw an average percentage of 12% of business reduced from 28% in the previous year.
Most clients came from the pharmaceutical, medical and financial services sectors, with less this year from construction and engineering.
The mean value of business in the region was US$966,000, down from US$1,030,350 last year, though 8% reported that the value of their business was over US$10,000,000.
The mean number of events experienced is eight with the mean duration 2.6 days – down from 3.1. Typical size was 150 delegates, down from 188.
Topping the table of influencing factors to hold events were location, cost, quality of accommodation and meeting facilities. 87% are looking to develop more business in the region with the focus on the following top destinations – Dubai, Abu Dhabi, Saudi Arabia, Kuwait, Qatar and Bahrain.
Overall, suppliers are looking to 2010 with increased confidence, predicting increased volume of events. The four key issues mentioned for increasing business were increased awareness of the region, value for money, improving infrastructure and security assurance.
Despite concerns over budgets, 58% of suppliers believe that the region has the most growth potential as compared to anywhere else in the world. China, Europe, India, Asia and Russia are considered other areas for growth.
Sally Greenhill, Managing Director, The Right Solution Limited who compiled and independently analysed the report concluded: “We have had a very positive response to the survey with 458 buyer respondents contributing this year, the largest number since the survey began. Clearly 2009 saw a downturn in the region, however it was lower than that experienced in Europe and elsewhere. According to the predictions made by buyers, this year will see the region bounce back with increased numbers of events using a wider range of destinations. Overall, suppliers predict that the region has significant growth potential.”
Research for the report was undertaken by GIBTM, in conjunction with meetme during January and February 2010. The full report can be found at www.gibtm.com <http://www.gibtm.com> .
