A recent Forbes magazine list of the world’s most powerful people showed Vladimir Putin relegating the US President from the top spot. To go with the increased political muscularity, Russia is flexing its economic muscle as Europe’s biggest economy, ahead of Germany, and globally behind only the US, China, India and Japan.
Russia’s capital Moscow has concrete plans, not just wish lists, to become one of the global centres of the business travel industry over coming years.
Andrey Sharonov, until recently Deputy Mayor of Moscow responsible for the economy and now head of the Skolkovo School of Management, recently said that although the Russian capital still lags behind other leading capitals in terms of the number and scale of organised major events, much can change in the near future.
In late summer 2013, the Moscow government established a special council for the development of business tourism in the city, along with a convention bureau. Alexey Komissarov, Head of the Department of Science, Industrial Policy and Entrepreneurship in the city government, said at the time the new bodies would focus on the promotion of Moscow in the international business tourism arena.
The new council and bureau, at the initial stage, will be responsible for the construction of all the necessary infrastructure and in particular venues.
New centres will be built in the district of Novaya Moskva, as well as within the Moscow Ring Road. There are also plans for the expansion of the area of the All-Russian Exhibition Centre, currently Moscow’s largest event centre.
Sources close to the Moscow government believe the investments could total US$4bn.
Part of the funds for the project will be provided by the city authorities, while the remainder is expected to be come from private investors.
The Moscow authorities have also promised to invest funds in the development of the city’s transport infrastructure and to finally solve the problem of the capital’s traffic jams.
“We see a huge potential for Moscow in the development of congress and exhibition activities. The current situation remains poor, although there is a possibility it can be improved in the near future,” said Sharonov, who noted Moscow was steadily moving up the ranks in terms of hosting large-scale exhibitions and events, from 100th to 72nd in the world.
The new Moscow Convention Bureau has started work and has been negotiating on hosting up to 48 international congresses to the city already in 2014. Its team was recently represented at the EIBTM industry trade show in Barcelona.
Analysts of the Russian Tourism Union predict business tourism has the potential to grow to be worth 40 per cent of the city’s overall tourism value.
Sergei Spilko, Chairman of the Moscow Committee on Tourism and Hospitality Management, said most business tourists come to the city in spring and autumn.
“Moscow has many similarities with New York, as in both cities the number of business travellers is sometimes higher than ordinary tourists,” he said, noting the annual number of business travellers to Moscow is over two million a year, with most coming from Germany, China, France, USA and Italy.
Ksenya Boykova, Director General of the new Moscow Convention Bureau, founded in August 2013, tells CMW her agency is open for new partnerships.
“The main goal of the Moscow Convention Bureau is to attract large-scale international meetings to the Russian capital and to enhance the success of hotels, venues, convention suppliers and the destination’s industry stakeholders through a coordinated effort that will allow the destination to achieve its full potential as a place for hosting business events.” Such ambitious goals, Boykova believes, will be achieved as the bureau begins the task of marketing the city and its ability to attract high-level international conferences, conventions and exhibitions.
Boykova’s target is for the MCB to become a player and intermediary in the international MICE business, able to act as an independent expert facilitator and resource for international organisers.
“Bright and memorable representation of Moscow as a convention destination in the international market is one of the most crucial tasks, alongside that of creating a ‘single window’ for Russian and international congress initiators and organisers,” says Boykova.
“The bureau is developing a consolidated information resource reflecting the reality of Moscow’s meetings industry and the positions of its main actors,” she adds.
And the MCB has advance ambassadorial plans. Boykova notes the bureau is working on a partnership programme with Moscow’s academic and business communities designed to combine efforts and attract top conferences and exhibitions to the city.
So, what can Moscow offer delegates?
There is no shortage of luxury hotels and fully equipped conference halls, and one of the world’s most dramatic settings offers numerous sightseeing and unusual venue options. More middle ranked accommodation is still probably required but coming on stream fast.
There are at least 10 venues in Moscow able to host conferences for 1,000 delegates and around 30 PCOs operating in this space, says Boykova.
Moscow is glitzy, no longer grim, and ever more tourist-friendly with new information centres and a good supply of English-speaking locals.
The Moscow Government has set an ambitious goal for the Russian capital to become, within a decade, one of the world’s most attractive cities for business meetings and events. Part of the means to achieving that is the new bureau which promises to help international PCOs with the following free services:
- Providing information about opportunities for organising meetings in Moscow and venue sourcing
- Undertaking RFPs and connecting organisers with local suppliers
- Providing advice for social and tourist programmes
- Preparing bid documents
- Assisting in communication with local government and media
- Helping to plan incentives, fam and press trips.
This was first published in issue 74 of CMW. Any comments? Email cmw@mashmedia.net
