US$2.3bn
economic, cultural, social and political development of the kingdom. “The direct impact from events can help
strengthen a country’s economy and create employment opportunities for our citizens. There are also substantial benefits beyond the direct economic impact, including the development of research, education, and cultural exchanges, in addition to the transfer of technological ideas and industry-specific best practices,” continues Al Essa. However, if Saudi Arabia is to truly harness the sector’s potential, the kingdom must first address some of the hurdles hindering growth. Perhaps the main one, initially at least, is that the country simply isn’t on the radar of global planners. “The perception is one of a market of
limited access and even more limited awareness among meeting planners of what’s on offer and how best to plan a meeting in Saudi,” says Paul Kennedy, Director and Owner of Kennedy Integrated Solutions Limited (KISL). “In the short term and until the
conference infrastructure develops and licensing and visa restrictions are eased, the country would do well to focus on business from neighbouring GCC countries where, culturally, it would be more straightforward to operate.” Kennedy stresses: “There is clearly
major potential [for the Saudi meetings industry] and the recent creation of the SECB is a key step forward.” The next steps, he advises, should involve relaxing visa regulations, making them “available online with a speedy turn around”.
ACTION PLAN FOR SAUDI MEETINGS Paul Kennedy speaks with authority given he is the author of the Strategy and Action Plan for the Development of the MICE Market in Saudi Arabia report, commissioned by the Saudi Commission for Tourism and Antiquities (SCTA) and released in 2012. The report stresses that to develop
the industry and facilitate “meaningful progress” two issues need to be addressed – the formation of a convention bureau (a goal achieved last year with the launch of the SECB) and a review of the current event licensing system – a challenge the SECB is working to improve.
“SAUDI ARABIA IS ALSO THE CENTRE OF ISLAM, WHICH OFFERS ISLAMIC-RELATED EVENTS AN IDEAL LOCATION WITH AN ARRAY OF PRIVATE- AND PUBLIC-SECTOR RESOURCES”
Kennedy’s study also highlights the
absence of a truly “world-class convention centre” with the Riyadh International Convention and Exhibition Center (RICEC) currently limited capacity-wise, covering just 15,000 square metres and with no adjacent hotel accommodation. Both issues have been recognised by the Riyadh Chamber of Commerce’s Committee of Exhibitions and Conferences with plans revealed last year to expand exhibition space at the centre and build a four-star hotel nearby. Of the additional recommendations
made by Kennedy, many of which are being taken up by the SECB, the need to compile studies to evaluate the economic impact of the industry was also highlighted. This was begun in February 2013 when
the SCTA-commissioned World Bank study, Prospects for Meetings Industry Growth in Saudi Arabia: Economic Study of Major Convention and Exhibition Centres, was released. “The report found the sector generates more than US$2.3 billion (SAR8.6 billion) to the country’s economy annually,” says Al Essa. In addition, 20 percent of all tourism
expenditure in Saudi Arabia is attributed to business trips. However, KSA was ranked by the World Economic Forum’s Competitiveness Report 2013
3 2
Total revenue generated by conference and exhibition visitors to the Kingdom of Saudi Arabia in 2012
at 141 out of 151 top countries hosting exhibitions, indicating the amount of work required to transform the country into a global meetings hub of note. “Historically, this sector in Saudi Arabia
has not been viewed as a strategic focus within the country’s overall development and most of the past government-related activities within this sector have been
1 Riyadh International Convention and Exhibition Center (RICEC) 2 Saudi Travel & Tourism Investment Market (STTIM) at RICEC
3 Paul Kennedy, Director and Owner of Kennedy Integrated Solutions Limited (KISL)
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