the Olympic Games and the FIFA World Cup over the next six years. This will prompt strong construction pipelines to increase supply in preparation for the events, creating increased competition that will keep rate growth down until closer to the events and again after the crowds have subsided.
According to the CWT Travel Price Forecast, meetings and events spending throughout EMEA as a whole will increase less than in other regions, with flat to 2 percent increases in average costs per attendee per day. As a result, there is less pressure on organizations to reduce group sizes to offset higher prices, which will produce slight increases in group size next year. More broadly, CWT is observing that many EMEA-based planners are containing costs by planning meetings closer to home, with international bookings expected to decrease. This is likely given the economic uncertainty in the region. Planners in the region are advancing their meetings and events programmes by consolidating spend with fewer suppliers, increasingly outsourcing small meeting and venue sourcing services, and incorporating virtual meetings and telepresence into their overall strategies. These trends are expected to continue throughout 2013 as planners remain under pressure to get the most impact for every meetings and events dollar spent, particularly if economic conditions worsen.
The survey notes that the UAE has experienced decreased hotel pricing for the past several years, but the continued appeal of Dubai, particularly for an increasing number of Chinese leisure travelers, should improve the country’s outlook for 2013, although soft business travel demand could keep prices down.
The 3-crown/economy hotel category is expanding in Saudi Arabia, with these midscale properties presenting a viable alternative for many international business travelers. This will put pressure on competing 3-crown properties, as well as on 4-5 crown properties, which could lose some business to these more affordable competitors. Rate increases of 1-2 percent are expected in Saudi Arabia, depending on the class of hotel.
- Asia Pacific and China
Australia, China, and Singapore are among the countries that will experience the most significant growth next year, according to the CWT Travel Price Forecast. Although it is a major focus for international expansion, India will face challenges in 2013 as its airline and hotel industries navigate some of the effects of rapid expansion in recent years.
In terms of air travel within this region, international capacity growth is the headline for China in 2013, with carriers like Air China, China Eastern, and China Southern focusing on expanding their global footprints by offering services to more foreign markets. Based on its location, China continues to serve as a gateway between Asia and the European and North American continents, and Chinese national carriers are increasingly positioning themselves to capitalize on this market. More broadly, as
Reed Exhibitions | EIBTM Trends Watch Report 2012 28
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