IN THE NEXT FIVE YEARS, SCTA EXPECTS THE KINGDOM’S VENUE CAPACITY TO INCREASE BY 50 PERCENT FOLLOWING THE BUILDING OF A PLANNED NEW CONVENTION CENTRE IN JEDDAH AND THE ENTRY OF NEW HOTELS ACROSS THE COUNTRY
“Several investments in the hotels sector
will definitely add value to Saudi’s venues inventory. On the other hand, wedding halls are spread out in Saudi Arabia and they occasionally function as meetings facilities. These halls can be upgraded to become offi- cial meeting venues,” says Al Jehani of SCTA. He said promotional activities will be one
of SCTA’s undertakings as the agency seeks to spread the word about Saudi Arabia and its travel and tourism sector. “Our main goal is to develop a competent Saudi meetings industry in order to be able to create and host events of both regional and international scale. This will be achieved by improving the regulatory environment in the country (including visas and licensing), the quality of meetings-related infrastructure and the professional skills’ set of employees in this field,” Al Jehani explains. In the next two to three years, SCTA’s
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KISL. According to the research, the establish- ment of such an agency should be taken as a matter of urgency if the kingdom wishes to compete on a regional scale. “Establishing a national convention bureau is a state- ment of intention and commitment by the government, which is primarily about attracting inbound international conferences, events and exhibitions,” the report notes. Acting as a representative body, conven-
tion bureaux carry the responsibility of creating and improving the brand image and value of a destination, which, in Saudi Arabia’s case, will surely go a long way in developing (or changing) the world’s percep- tion of the kingdom, the research adds. There is also a need for Saudi Arabia
to review its current regulatory frame- work, which analysts at KISL say stifles the sector’s growth. This includes its ability to create jobs and increase contributions to the country’s gross domestic product (GDP). “I believe this is vital in positioning Saudi
as an international destination for MICE. Most other countries only have regula- tions focusing on issues of personal and organisational health and safety. The current system in Saudi is, in my opinion,
the major barrier to the development of a successful industry, which is based in part on inbound business, but also restricts domestic business,” says KISL’s Kennedy. In order to compete, any destination
needs to be accessible in all aspects from travel and facilities to ease of operation and minimal regulation, he adds. “If Saudi Arabia can get these conditions right, then clearly it will be able to successfully compete against other Gulf nations. At the current time, however, it is simpler for interna- tional companies to do business in other Gulf destinations,” Kennedy comments.
FUTURE OUTLOOK In the next five years, SCTA expects the kingdom’s venue capacity to increase by 50 percent following the building of a planned new convention centre in Jeddah and the entry of new hotels across the country. Property management consultancy firm
Jones Lang LaSalle estimates that the capital Riyadh’s inventory of hotel rooms will steadily grow from 8,400 in 2012 to 15,026 in 2015. Hotel supply in Jeddah, meanwhile, will climb from 11,310 in 2012 to 13,249 in 2014 as investments in the hospitality sector pour in.
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strategy will gradually shift towards contrib- uting to developing a knowledge-based economy and creating meetings and events based on the needs of various sectors that are vital to Saudi Arabia’s economic expansion. “After four to five years, we aim to build and strengthen our relations with international associations so we can attract more interna- tional events to Saudi Arabia,” he says.
4 Riyadh International Convention and Exhibition Center (RICEC)
5 Paul Kennedy, Director and Owner of Kennedy Integrated Solutions Limited (KISL)
6 William O’Toole of Event Project Management System (EPMS) 7 Te Ritz-Carlton, Riyadh 8 Al Faisaliah Tower
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