The meetings industry in the Gulf: the story so far and the challenges ahead

Any visit to the Gulf region or indeed any read of a meetings industry (the official term for ‘MICE') trade magazine reveals the rapid development of hotels with meetings and conference facilities and state of the art exhibition venues that also have meeting/convention facilities. The quality of the facilities in Dubai, Abu Dhabi, Oman, Qatar and Bahrain in particular, is being widely commended.

As the international meetings industry becomes more knowledgeable about the Gulf region, the facilities planned or actual in Sharjah, Fujairah, Kuwait, Saudi Arabia and other destinations will also feature more prominently. These facilities enhanced by ever-improving air routes augur well for the region.

The focus on the quality of the accommodation is also to be applauded, as the area is becoming a byword for high quality. The GIBTM research study conducted early in 2007 revealed a number of trends, the most notable arguably being that demand for the Gulf region is very strong, with Abu Dhabi and Oman being the fast movers up the demand chain with Dubai still firmly in first place.

What are the challenges? At the strategic level, it needs to be recognised by politicians, investors and entrepreneurs that the meetings industry is quite distinct from its larger cousin, leisure. The meetings industry generates an economic multiplier of between four and 10 times that of leisure, and of course generates repeat meetings business and subsequent leisure spend.

This strategic recognition is important because a destination/venue/hotel can be most successful if it adopts a philosophy of adding value to the objectives of an event. What do I mean by this? There are in essence five main imperatives as to why meeting planners (buyers) select a venue/destination. These are access, price (including price flexibility) quality of facilities, quality of service and security/safety.

Despite claims by many Gulf-based venues that weather is the number one reason planners choose the Gulf, this is NOT a principal reason why planners choose the region for their events - clearly evidenced by the GIBTM research study.

The challenge for some suppliers therefore is to understand better the criteria that planners use. There are some specific challenges; high price/price inflexibility continues to be spoken about as a major issue. Destinations in the region are putting international associations as a target sector, but to attract substantial business from this sector will without doubt require a more flexible pricing strategy.

Despite the very impressive and fast moving developments, challenges remain with traffic congestion in some locations, and the inconsistent availability of taxis (and receipts from taxi drivers). In addition, choices of function venue could go beyond hotels and the standard desert dining experience. There is a virtual absence of large-scale (3500 pax) bespoke convention centres. These are needed to attract large conferences/conventions.

These are just some of the issues that our research reveals, and it is backed up by regular anecdotal evidence from meeting planners with whom I come into regular contact.

However, what must be beyond doubt is that as a major region for the meetings business, the Gulf is here to stay.

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