Courting the corporate traveller

When the Gulf Incentive, Business Travel & Meetings Exhibition (GIBTM) first opened its doors in 2007, the regional meetings, incentives, conferences and exhibitions (Mice) industry outside of Dubai was only in its infancy, reminisces Shinu Pillai, exhibition manager, IBTM Arabia, Reed Travel Exhibitions.

'Incentives were largely absent from a wider landscape that lacked the resort and attractions infrastructure to support them, and large-scale meetings simply couldn’t be supported as venues were not yet built and destinations lacked the requisite accommodation mix.

'Today economies have expanded, as has the meetings sector in the Gulf. From relying on European source markets, hotels and venues now enjoy a thriving intra-regional business travel and Mice industry.

'As no other destination on earth has been built from scratch in 50 years – with 80 per cent of the infrastructure less than two decades old – the world is intrigued by the Gulf. Want to see what the world will look like tomorrow? Come to IBTM Arabia today,' says Pillai.

IBTM Arabia is a dynamic three-day invitation only Mice event taking place next year from February 9 to 11 at Jumeirah at Etihad Towers in Abu Dhabi.

REGIONAL UPDATE

According to the last Amadeus report, the GCC’s Mice industry shows continuous growth and is set to expand even further while attracting high-profile global events and state-of-the-art infrastructural investments as an important generator of income, employment, international prestige, and foreign investments.

The key meetings and events hubs in the Middle East today are those with supporting infrastructure, which means not only convention centres and venues appropriate for conference, meetings and events, but also hotels that can provide the right facilities for the business traveller. 'These are in Qatar, Bahrain, Dubai, Abu Dhabi, Jordan, Egypt, Kuwait, Oman and Lebanon and not to forget the smaller, more niche locations such as Ras Al Khaimah,' says Pillai.

Qatar’s short-term strategy includes attracting business travellers through corporate conferences and events, says Pillai, and eventually pushing other segments forward, such as leisure and sports tourism.

Recognised as the Mice leader of the Middle East, Dubai dominates the $1.3 billion market with a leading market share and by 2020, it is set to attract three to four million business visitors. Of this figure, Mice visitors that currently equate to 0.9 million, are estimated to double to between 1.7 and 1.9 million; the remaining will be independent business travellers.

The Mice sector for Abu Dhabi is currently generating $1.4 billion per annum and is expected to reach $2.4 billion by 2020.

A recent US Institute of International Finance report said that few Gulf countries would grow stronger in 2016 as Iran, which would stand out with an expected growth increase from 1.4 per cent to nearly 6 per cent next year, says Pillai. 'Iran emerged as the region’s second-largest economy behind Saudi Arabia and ahead of the UAE. It has the most diversified economy of Mena before the UAE, according to the report. Interestingly, we had a destination management company from Iran participating in ibtm china this year.'

FACILITATING BUSINESS

The needs of a business traveller are distinct from a leisure traveller, he explains. 'It depends on the business, but access to free wi-fi, a fully operational business centre in hotels, a concierge that can respond immediately to support any of the guests’ needs whether it be quickly sorting transfers or chauffeurs, dining or even a quick familiarisation of the city or region. The business or corporate traveller is focused on achieving their own objectives within a short and busy schedule.'

Global corporate support provider Oakwood Worldwide helps travel managers take the guesswork out of securing long-term accommodation. Debbie Lundon, managing director, Europe, Middle East and Africa, says, 'As more businesses are establishing themselves in global markets, they are looking for cost-effective, comfortable, convenient and secure alternatives for their employees.

'Businesses need to keep their assignees safe and minimise potential risks in the event of a crisis, which goes far beyond the typical health and safety considerations of a familiar work environment,' says Lundon. 'This is why many organisations are turning to experienced housing providers for guidance and want to partner with those who can deliver a productive ‘home away from home’ experience for assignees as well a cost-effective, trackable solution that complies with company policies.'

Typically, corporate customers should be provided with a project coordinator who oversees the delivery of the programme supported by local fulfilment teams who are the main point of contact for clients, she advises. Local customer service teams should be available 24/7 to respond to guest enquiries, providing market intelligence and preferred rates, keep track of bookings and deposits and communicate directly with property owners about guest requirements.

'We also provide end-to-end management of multiple group accommodation including the sourcing of properties, site visits, rate negotiation and group orientation, and we have extensive experience delivering intern housing. We consult with our clients to build a product and service model that meets the needs of the programme and guest, collaborate with all parties involved to create a customised solution. Services to compliment the accommodation we have provided include orientation, transportation, hospitality lounges and events, and shuttle services,' says Lundon.

SERVICE SHORTAGE

There seems to be a shortage of quality serviced apartment residences in the region and as such, with rising need, the GCC is predicted to be the largest source market for serviced apartments within the region.

Excluding Dubai, the current supply of serviced apartments within the GCC is limited, predominantly managed by unbranded and locally branded operators, and lack international operational standards.

At the recently concluded Serviced Apartment Summit held in Dubai, Peter Henley, president and chief executive officer of Thailand-based ONYX Hospitality Group commented, 'Guests like to know they are staying with a recognised accommodation provider, offering consistently well-maintained international standards of service and comfort.

'The appeal of serviced apartments in the region has grown considerably in recent years, but is still an under-represented segment among international hospitality providers. ONYX has been successfully operating the upscale boutique serviced apartments, Shama, in Asia since 2010, and is now looking forward to the opportunity of expanding the Shama brand into the Middle East.'

Filippo Sona, head of Hotels for Colliers International in the Middle East and North Africa (Mena) region, agrees, adding, 'We have seen a boom in serviced apartments in the more mature markets of Dubai, Abu Dhabi and Doha where it currently exceeds 35 per cent of total serviced apartment supply.

'However, it is a relatively new concept to the rest of the region, where in many instances it is more of an afterthought, with residential buildings being converted into serviced apartments either after or during construction. Further scope exists for developing larger, more efficient, purpose-built properties that follow international operating standards,' says Sona.

Colliers International’s recent report The MEA Serviced Apartment Markets & Guest Experience Index says Dubai has the largest serviced apartment supply in the region at approximately 29,000 keys (232 properties), 36 per cent of which is managed by international brands. Outside of the UAE, in terms of number of serviced apartment keys, Riyadh follows with 5,500 keys, with only 2 per cent of the stock managed by international brands.

The Ascott Limited opened Ascott Tahlia Jeddah and Ascott Sari Jeddah within months of each other, marking the entry of the first international branded serviced residence in the Saudi city. The Singapore-headquartered holding group CapitaLand has further planned openings of Citadines Al Salamah Jeddah this year, Ascott Rafal Olaya Riyadh next year and Somerset Corniche Jeddah in 2017. This aggressive expansion comes from a firm belief that the Saudi market is underserved in terms of quality serviced residences. 

By Rashi Sen