2016 tough year for MICE industry in ME

Dubai - Sector to witness opportunities in coming years

 2016 is set to be a challenging year for the Middle East Meetings Incentives Conferences & Exhibitions (MICE) segment, yet opportunities will continue to crop up as competition in the segment increases, experts at the annual MICE Arabia Congress noted.
Speaking at a session at the fourth edition of the event, Firas Al Khateeb, senior vice-president and head of procurement at National Commercial Bank, noted that technology will play an important role for the MICE segment in the GCC region. "Technology is a factor that players in the region need to focus on more in the coming years. 2016 will be a tough year for the MICE segment, but I believe that there will also be a lot of opportunities that will arise," he said.
Abdullatif Albastaki, group head of procurement and realty services at Emirates NBD, noted that Dubai was an international market in the long run and that he expected the MICE segment to grow in the coming years. "It meets all the requirements for being a valuable international player. It is an attractive, beautiful and dynamic city that is constantly growing. The future of the MICE industry to me looks bright and I expect the city to continue to attract both visitors and international players in growing numbers. It is safe to say that the city is well positioned for growth in the coming years," he said.
Like Al Khateeb, Mohamed Zahra, purchasing manager for the Mena region at Boehringer Ingelheim, agreed that 2016 was set to be a tough time for the MICE industry in the region, but stressed that there were going to be a lot of opportunities for growth and expansion, not just for the older, more well established players, but also for the newer players entering the market. With the younger companies entering the market, competition, he explained, was going to become tougher. He also noted that many of the younger players were more cost efficient with their offerings, which gave them an edge. This, in turn, would force the bigger and older players to look at being more cost efficient themselves.
"There are several new players in the market today, many of which have proven their competence in the recent years by skillfully setting up quality events. Big suppliers might come with a proven guarantee, but the smaller suppliers will often end up surprising you. When it comes to events, price is not the only factor that we look at; every detail is scrutinised as part of their pitch and this is where the newer suppliers might have an edge," he said. Zahra's words were echoed by both Albastaki and Al Khateeb, who stressed that while cost is an important factor, creativity and competence are also taken into account. They noted that the major selling point is value for money when deciding on a supplier.
Albastaki also pointed out that while it was true that the recent dip in the economy was controlling the events segment, it was also true that the events segment was in turn controlling the economy. "The only major effect that we will see on the MICE segment in the UAE is that clients are going to be more conservative in their decisions. People will choose to spend more wisely, rather than lavishly, as has often been the case in the past. You might see some less lavish events as people become more stricter on limiting their spending, but overall the MICE segment will continue to be an important and growing segment in the region," he said.
- rohma@khaleejtimes.com