After two lackluster years, the Middle East’s event industry is poised for a rebound in 2003, that is if the industry can overcome some big ifs, predicts the Middle East's events industry magazine The Big Event.
Managing director of event market research company Media Matters, Alan Searles, asserted, “Most event professionals believe that the doldrums of the past two years are, for the most part, the trough of a normal business cycle, and that the climate is ripe for an upswing in special events. The wild card, one that is driving the event industry wild, is continued uncertainty. Even in cases where companies know they are doing events, they are waiting until the last possible moment before signing a contract.”
“Companies are cautious because they must cover themselves in case their stock goes sharply down, their CEO winds up on the wrong side of the law or there's problems around the globe” he said. “The result: an industry stuck in neutral”.
While they wait for the rebound, established companies are responding to the tight market with a combination of discipline and flexibility. “An analysis of 2002 exhibitor budgets indicates that exhibitors are spending a larger portion of their exhibiting dollars on space. The share of exhibit budgets being spent on exhibit space increased 17.4 percent, from 23.5 percent in 2001 to 40.9 percent in 2002” said Searles.
“More than ever, the events industry is taking a hard look at its business models and finding ways to make exhibitions more cost-effective and valuable for the exhibiting community”.
Commenting on the potential for growth in 2003, Searles said, “The future of the exhibition industry is bright. There will be the inevitable casualties just as there is in any business but there will also be new launches based on new concepts. Associations will continue to be the reliable cornerstone of the industry and the leading growth industries will be the growth industries for the exhibition business.”
“In the months ahead we will hear and read comments about the ‘shrinking exhibition industry’ and the repercussions of an over supply of exhibit space as new and expanded facilities open their doors. Competition for conference business will continue to be keen because the reward is great. New venues offer organizers more alternatives so the competition is about to get tougher.”
“Those cities opening new buildings or new additions that have the infrastructure in place to support new business will prosper if they rally and lead their local hospitality community and aggressively and effectively market their city and compete for business”.
Searles also predicted that exhibitions would come under pressure this year. “Exhibitions will become increasingly more targeted because of industry trends towards niche marketing. 2003 will be the year where all communication efforts need to have a reason. Special event measures have to come from this reason and—at the end of the day—have to deliver proven results.”
However exhibitors will gain in 2003. “The pressure to cut prices without cutting profits demands as much flexibility as possible without giving away the store. Event organizers will give clients the feeling that they are getting a little more bang for their buck, but still hold the line on profitability. Co-operation and mutual benefit through increased communications will increase between organizer and company while event organizers will seek out companies who are interested in understanding the events business and adapting themselves to meet the organizer’s needs” concluded Searles.
The Big Event targets four main industry groups: organizers, venues, governmental, agencies, plus companies servicing and supporting the Middle East events industry. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
