DESTINATION REPORT / SAUDI ARABIA “Generally, the study illustrates that for every
riyal (US$0.27) spent by an exhibitor, SAR475 (US$128) is generated. In addition, every event held needs more than 100 employees. These factors stimulate the national economy,” the bank reports. Among the facilities evaluated, RICEC posted
the largest domestic market share as it generated a direct economic impact of SAR158.1 million (US$43 million), followed by DIEC with SAR87.5 million (US$24 milion) and JIECC contributed SAR51.4 million (US$14 million). World Bank analysts who conducted the study
believe there is potential for Saudi Arabia to expand its meetings industry, given the country’s robust economy and commitment to develop national infrastructure. However, in order to capitalise on the industry’s economic prospects, there is a need to establish a Visitor Convention Bureau (VCB) in Saudi Arabia, dedicated to promoting the kingdom as a world-class meetings destination. “Most VCBs around the world follow motiva-
tional regulations such as facilitation of visa proce- dures, reducing meetings restrictions and increas- ing the number of events during the whole year,” the report notes.
EVOLVING EVENTS INDUSTRY
William O’Toole of Event Project Management System (EPMS) has been involved in designing events and festivals for some of Saudi Arabia’s government agencies and major companies. Since 2004, the events industry in the kingdom, he says, has witnessed tremendous growth and this is tied to the development of various sectors.
“Every sector in the country is on the move: transport, tourism, information and communications technology, banking and agriculture. These are internal drivers to diversify the types of events,” he says.
O’Toole agrees that the creation of a Saudi Convention Bureau, or a one-stop shop for anything related to the meetings and events sector, will help develop industries and related events.
Asked what advice he can offer companies, event organisers and meeting planners looking to enter the Saudi market, he said patience and the ability to build relationships. “In my experience, the country is based on trust.”
“It is a good idea to demonstrate your expertise and products in the
Above & Below: Saudi Travel and Tourism Investment Market (STTIM) 2012 at RICEC
country. Saudi companies and government agencies take a while to form a relationship with you. Making quick conclusions without understanding the complexity behind decisions is a big mistake. First rule is to meet locals who you can work with and feel there is a common understanding,” he adds, reitering that Saudis are excellent business people and negotiators and they expect to develop a long-term relationship with their business partners.
ONE STEP AT A TIME SCTA’s Al Jehani confirms that the creation of a Saudi Convention Bureau (SCB) is cur- rently being considered by the Saudi Coun- cil of Ministers and a decision is expected within 2013. In the meantime, the commission is
exerting efforts to promote the kingdom’s meetings industry through events such as the Saudi Travel and Tourism Investment Market (STTIM) in Riyadh from March 31 to April 4 and the Saudi MICE Convention in Jeddah from November 3 to 5. “The convention will put prime focus on
the Saudi meetings industry and its role not only in the development of national econ- omy, but also on a social level. Through this event, we also aim to increase the volume of investments in projects related to exhibi- tions and conferences,” Al Jehani says. The creation of an SCB was also empha-
sised in a study conducted for SCTA in 2012 by KISL. According to the research, the establishment of such an agency should be taken as a matter of urgency if the king- dom wishes to compete on a regional scale. “Establishing a national convention bureau is a statement 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 cre- ating 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 perception of the kingdom, the research adds. The report also highlights the need for
Saudi Arabia to review its current regulatory framework, which analysts at KISL believe stifles the sector’s growth, including its ability to create jobs and increase contribution to the country’s gross domestic product. “I believe this is vital in positioning Saudi
as an international destination for MICE. Most other countries only have regulations focusing on issues of personal and organisa- tional 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, how- ever, it is simpler for international companies to do business in other Gulf destinations.”
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