The Gulf continues to step up in class and, according to the International Monetary Fund, is expected to see growth of 3.4 per cent in 2013, rising to 3.8 per cent in 2014. Reed Travel Exhibitions (RTE) says this positive regional outlook helped triple corporate buyer attendance at the Gulf Incentives, Business Travel and Meetings (GIBTM) trade show earlier this year.
“According to Standard and Poor’s latest forecast, GDP growth within the Gulf economies will reach 4.6 per cent, valuing the GCC economy at $1.5 trillion,” says Lois Hall, RTE’s GIBTM Exhibition Manager.
“As a consequence, the region is clearly attracting an increasing number of meetings, incentives and business travellers, especially from key regional and international trading partners,” she adds.
Dubai
Dubai had a market share of over 60 per cent of international meetings in the UAE in 2012, according to the Dubai Convention and Events Bureau, and following a recent change in the law to allow international associations to open regional headquarters in Dubai the bureau expects to further increase its market share.
“Dubai is a safe destination and we benefit from offering the ‘thrill of the unknown’. Many delegates won’t have visited before and have that inherent curiosity to discover a new destination, which helps bolster attendance levels,” says Executive Director for Business Tourism at Dubai Department of Tourism and Commerce Marketing, Hamad bin Mejren.
The Dubai World Trade Centre (DWTC) experienced a record performance last year with more than 1.85m visitors, a 12.5 per cent rise on 2011, and a 5.5 per cent increase in exhibitor numbers.
“The rise in visitor and exhibitor numbers combined with their geographical diversity demonstrates the increasing global recognition for Dubai as an engine for business growth,” says Director General of the Department of Tourism and Commerce Marketing and CEO of DWTC, Helal Saeed Almarri. “Estimates show that over the next five years the city’s trade traffic will grow by an average of five to seven per cent per annum.”
DWTC delivered 150 trade and exhibition-related events in 2012 including 106 mega events, covering sectors such as healthcare, education, ICT and construction. DWTC attracted 12 new shows, including many firsts for the region. The World Congress of Cardiology was hosted in the Middle East for the first time in its 62-year history, while the World Energy Forum made its first appearance outside its UN headquarters in New York.
The Government has ambitious plans for the Emirate and recently announced it hopes to double business and leisure tourism visitor numbers by 2020 and triple the annual income generated by the sector.
“This inevitably involves considerable investment into infrastructure, including plans to double the current hotel stock,” says Hamad bin Mejren. “Dubai World Central Airport will open later in 2013 and is projected to become one of the world’s busiest airports with visitor numbers to the Emirate seeing a nine per cent increase in the last year.”
New investments include the recently opened tower at the JW Marriott Marquis. At 1,164 feet and 72 floors high, it lays claim to be the tallest hotel in the world. The second tower is due for completion within the next year. Once both towers are open the hotel will offer a meeting floor between them, with spaces including the Dubai Ballroom with capacity for 1,500 delegates.
Other venues opening with meeting space include The Ritz Carlton – Dubai International Financial Center; Fairmont the Palm; and The Conrad.
Abu Dhabi
With business tourism identified as a key economic diversification driver in Abu Dhabi, according to Nabeel Al Zarouni, Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) UK Country Manager, the authority launched the Abu Dhabi Convention Bureau (ADCB) earlier this year, with the intention of driving forward the Emirate’s business events ambitions.
His Excellency Jasem Al Darmaki, Deputy Director General for TCA Abu Dhabi says the launch is a “clear signal to the local and regional business events industry and its international counterparts, that Abu Dhabi is prioritising its sector as never before”.
Abu Dhabi’s 141 hotels and hotel apartments had their best April on record this year with increases in key performance indicators, according to the authority. During the first three months of 2013, 631,417 guests checked into accommodation throughout the Emirate, a six per cent rise on 2012. Guest nights rose 23 per cent with the average length of stay up 16 per cent to 3.36 nights. Total revenues rose 15 per cent.
“The business event visitor is traditionally a higher spender than the leisure tourist, sometimes by up to seven times as much,” says Zarouni.
The Abu Dhabi National Exhibition Centre (ADNEC) hosted the largest convention to date in the UAE capital last year with more than 10,000 delegates attending the World Ophthalmology Congress. ADNEC hosted 360 events last year, a 55 per cent increase.
Event management agency Conference Contacts recently organised a community forum event for a global banking software client in Abu Dhabi. Its Operations Director, Rosalyn Giles says the 2013 brief was for 700 delegates for a two-day conference to be held somewhere affordable, accessible and exciting.
With delegate flow an essential part of the planning process, ADNEC’s proximity to nearby hotels meant it was smooth and efficient and attendance numbers were high.
Giles adds that organising visas for the 700 delegates went without a hitch. “Taking on the responsibility of visa applications may seem a daunting task but when handled by an experienced team on the ground and when working with the UAE and their efficient systems, the refusal rate on this occasion was less than one per cent.”
Abu Dhabi is continuing to invest in its venue stock. The five-star St Regis Abu Dhabi opened in 2012 and offers 4,800sqm of meeting space. The Rosewood Abu Dhabi opened in May this year and offers 1,636sqm of indoor meeting space as well as outdoor space.
Abu Dhabi is looking ahead to further growth in the years ahead. “Research commissioned by TCA Abu Dhabi and ADNEC suggests the economic impact from business events in the Emirate is expected to increase by seven per cent on average up until 2020,” says Zarouni.
This was first published in issue 72 of CMW. Any comments? Email cmw@mashmedia.net
