Kuwait and see

Kuwait is known as a predominantly business-traveller oriented destination, certainly not associated with a luxury incentive offering boasted by some of its Middle Eastern neighbours.

The meetings and conference industry primarily resides in Kuwait’s hotels and in terms of the infrastructure provided to conduct meetings business, everything is in place.

But meetings industry professionals – including hotel management – generally feel that the lack of tourism outside of business circles is seriously restricting Kuwait’s meetings offering – particularly in terms of incentive travel.

Many feel that Kuwait has a lot to offer the meetings and incentive industry, it just needs to develop its product, a view shared by PR and marketing manager for Marriott Kuwait City, Amal Mikahil.

“Kuwait has the ability to cater to all meeting requirements related to business. It has all the facilities that enable it to cater to large conferences too – we had the NATO conference last year,” he explains.

“With regards to incentives, Kuwait is still in the beginning, we believe that Kuwait needs to continue to work on developing incentive requirements.”

This opinion is endorsed by general manager of Mövenpick Hotel and Resort Al Bida’a, Gary Moran, who says, “Kuwait is starting to position itself as an inbound GCC business tourism destination with a strong emphasis on business traveller meetings and exhibitions”.

Current figures suggest 15% of the inbound business to Kuwait is linked to the meetings and exhibition industry, however, Moran says “as for incentives, due to the country’s restrictions, it is still a very new segment that needs developing”.

And it would appear that the Kuwaiti Government is of a similar opinion.

“A 20-year tourism master plan is being developed by Kuwait in co-ordination with the World Tourism Organisation and United Nations Development Programme,” Moran explains.

“It is to be implemented next year and will include major developments in the country’s hotels and resorts.”

Furthermore, changes in immigration and investment regulations and an increase in the number of meeting incentive travel packages will certainly go some way to address the issue.

As it stands

In the meantime, Kuwait’s meetings market is predominantly local, with the majority of hotels stating 90% of their business is with Kuwaitis.As a result, companies involved in corporate travel, meetings and conference organisation are largely geared up to cater to the local market, but some are developing their products to be ready for the future, according to director of operations for Alghanim Travel, Mashkoor Siraj.

“We have a dedicated corporate section that handles a vast range of multi-national clients, regionally and globally based.

“We have developed a 24/7 service which is quite unique; our staff have systems at home so that they can meet clients’ requirements in emergencies out of office hours,” he explains.

Alghanim Travel is also in the process of developing an online portal that will allow corporate travellers to alter their itineraries online.

“It will be a one-stop-shop system where the traveller will be able to check their travel plans and get information.

“But the most important aspect will be that they can change their plans online and it enters into our system,” he explains.

Alghanim Travel uses hotels for its conference and incentive groups, but although it is possible to cater to conferences and meetings, incentive options are limited.

“We develop our packages with our clients’ requirements, whether it’s an interactive conference or classroom session.

“But there isn’t an incentive group as such, because Kuwait is limited in terms of what is available for sightseeing or tourism at the moment,” he adds.

But Siraj is determined to be ready when the incentives market develops by investing in Alghanim Travel’s offering.

“Our developments are a very heavy investment for us, but we are looking to the future,” he says.

However, sales and marketing coordinator for Radisson SAS Hotel Kuwait, Annette Coutinho, says Kuwait is already more than prepared for meetings.

“We offer all clients the services of internet, video/conferencing and other contemporary necessities. Hotels in Kuwait can match up to any in terms of service and facility provision to conduct a proper MICE event,” she says.

Markets

Even if the 20-year master plan achieves its goals, opinion is split in terms of the markets that Kuwait should be aiming to attract.

Primarily there are those that believe Kuwait should be tapping into its own market potential with the addition of a few neighbouring states – a view held by Mövenpick’s Moran.

“The local market is a priority as the majority of meetings are organised through a locally based company. The second priority is Dubai – the demand has been building in the last few years from event organisers in Dubai for regional meetings and events,” he says.

However, for others, the aim is to attract wider markets, particularly Europe.

Certainly, Coutinho would like Radisson SAS Hotel Kuwait to entice other markets.

“We would like to see more interaction with the GCC, MENA, Levant and from the European sector,” she says.

“But currently the GCC and MENA region are at the forefront of our business.”

Mikahil says that Marriott’s business mainly comprises of the local Kuwaiti market, the GCC, USA and UK.

“Recently the Asian markets have increased for us, but we would love to have more of the European market,” he says.

The future

Once again, it would appear there are mixed feelings when considering the future of Kuwait as an attractive incentive destination, ranging from skeptical to optimistic.

For Coutinho the jury is still out on whether the desired changes will happen.

“There is definitely a mild popularity for Kuwait as a destination due to its economic growth and progressive oil sector trend.

“High-level GCC conferences are now attracted or held by the Kuwait authorities to highlight the country’s potential,” Coutinho explains.

With the easing in visa requirements and the promotion of tourist-based activities, Coutinho believes “developing meeting and incentives are definitely possible”.

“But currently these plans are only indicative with economic growth and no concrete strategy is shown that it will materialise in the near future,” she adds.

Coutinho saysthat unless major changes are implemented, the hospitality industry as a whole will struggle to develop.

“With oil and real estate booming and inflation as well for that matter, Kuwait needs certain radical changes to allow the growing hospitality industry to develop,” she concludes.

But there are signs that things are starting to move forward in terms of developing facilities for international meetings business.

“There is a business centre being built not far from Sharq, which is going to be quite good for Kuwait,” says Siraj.

In terms of other developments, new hotels are being built, but this is another area industry experts are looking at cautiously, Moran explains.

“With 20 new hotels or hotel extensions currently under construction in Kuwait, it will be interesting to see whether demand will keep pace with supply.”

There is only one option that will see Kuwait develop into the meetings and incentive destination it would like to be, according to Moran.

“The implementation of the Tourism Master Plan mentioned earlier is essential,” he concludes.

But for Siraj there is another issue that needs to be resolved before Kuwait can take off as a meetings and incentive destination.

“I think when Iraq settles down there will be a scope for Kuwait to be an inbound destination, but only time will tell in terms of what volumes and how fast it will happen.

“We will wait and see,” he concludes.