Wednesday, January 19, 2011

PEST Analysis of MICE industry in Middle East

                                fig: Abu Dhabi Ferrari theme park( source: http://www.coated.com/)                                                                  
In the past two decades one of the regions in the world that had witnessed phenomenal growth is Middle East. It had shown excellent growth not only in the traditional oil and gas sector in which it has abundant resources but also in other sectors like services, retail, tourism and hospitality. Having some of the fastest growing cities with state of the art infrastructure carved in the midst of the dessert Middle East attracts a large chunk of tourist from all around the globe. Along with the leisure tourism the segment which is growing by leaps and bound is the “Business tourism” or the MICE segment. In the following blog the author will attempt to do a comprehensive PEST analysis of the MICE industry in Middle East. ( #)


PEST Analysis: -

Political factors: -

• The political factors in Middle East have both pros as well as cons.

• It has real sincere govt. machineries which want to put the region on the forefront of the tourism as well as business tourism market.

• Strong initiatives are taken, delegates are sent to different parts of the world, programs and promotional campaigns are conducted and meetings and conferences are high on the government agendas.

• The region has huge geo- political significance which attracts the attention of policy makers, corporate, officials, diplomats etc towards it.

• The down side is that many parts of the Middle East are politically volatile and disturbed which can create apprehensions about it.

Economic factor: -

• Middle East had been among the fastest growing regions in the world.

• In the past two decades the region had witnessed phenomenal growth.

• After the dip in the oil prices its growth rate went down and it witnessed a modest growth rate of 2.9% in 2009. ( Business intelligence middle east.com, 2010)

• Though yet to catch with the other developed markets the economy is poised for a strong growth in 2011. Govt. expenditure and rising oil price will facilitate stronger GDP growth in the region. ( arabnews.com, 2011)

• Middle East has cities like Dubai, Abu Dhabi, Kuwait, with state of the art infrastructure. There are also cities like Doha, Muscat etc which are growing very fast and investing hugely on infrastructure.

• The region can boast of some exquisite hotels, resorts, spas, leisure park and super market stores such as Burj al Arab, Emirates palace, Marina Mall tower, Abu Dhabi ice rink, Abu dhabi Ferrari theme park, Palm islands, etc.

• States run efficient and effective airlines such as Emirate airways, Etihad airways, Qatar airways etc that connects the region smoothly and frequently with the rest of whole world.

• Many parts of the region are going to invest heavily on infrastructure. Qatar which is hosting 2022 football world cup is going to invest 250 Billion US dollars in infrastructure, housing, roads, stadiums etc. Oman is going to invest 80 Billion in the next five years where as Kuwait 104 Billion us dollars in the next four years. Abu Dhabi will be investing 27 Billion US dollars in establishing world class museums and attraction centers. ( arabnews.com, 2011)

• It can be assumed that since Middle East is an emerging market it puts the meetings and conferences high on the govt. agendas compare to other matured markets. The basic region is that not only MICE is a growing and lucrative industry in itself but it also helps in driving investment and overall branding of the place .

• Middle East is comparatively economical and cost efficient in providing various goods and services in comparison to its more developed Western counter parts. But over the period of time it had been seen that cities like Dubai has become very expensive.

• A matter of concern could be the current Economic condition of Dubai, the city state considered as the epicenter of business and tourism activities in the Middle Eastern region has a debt of around 110 Billion US dollars and in 2010 it recorded a sub standard GDP growth of 3.2%. ( arabnews.com, 2011)

Social factors: -

• Islam plays a very important role in Middle Eastern culture.

• The primary inhabitants of Middle East are Arabs which are known for their warmth and hospitality.

• Many of the leading cities in the region such as Dubai, Muscat, Abu Dhabi and Kuwait etc are very cosmopolitan in nature with more than 50% of population comprising of expat population.

• The downside can again be the political turmoil and fundamental forces existing in the society.

Technological: -

• Middle East has some state of the art convention centers like the ADNEC (Abu Dhabi national exhibition center), DWTC (Dubai world trade center), QNCC (Qatar national convention center), Bahrain international convention center etc with excellent technical facilities to conduct meetings and conferences of international standard.

• Telecommunication facility varies in the Middle East from being very advanced to very rudimentary. Most of the nations have their own national operator though of late many of them are introducing foreign players as well. (budde.com, 2008)

Note: -

# (A point to be noted over here is that Middle East has a wide range of diversity within itself, there are places, which are growing very fast where as those just trying to catch up, which have huge oil and gas deposits as well those with almost no oil, which are very cosmopolitan and open in nature where as those which are comparatively less open. Hence the given analysis is just a generalized analysis and tries to look at Middle East as a single entity. Individual analysis of individual places and states will follow in subsequent blogs. )



Reference: -

1> Business intelligence middle east.com, 2010, Middle East economic growth to rebound to 3.7% in 2010, says World Bank, available at <  http://www.bi-me.com/main.php?id=43642&t=1&c=34&cg=4&mset=1011  >

2> Arabnews.com. , 2011, Faster growth in Middle East economies expected in 2011, available at <  http://arabnews.com/economy/article232333.ece?service=print  >

3> Arabnews.com. , 2011, Faster growth in Middle East economies expected in 2011, available at <  http://arabnews.com/economy/article232333.ece?service=print  >

4> Arabnews.com. , 2011, Faster growth in Middle East economies expected in 2011, available at <  http://arabnews.com/economy/article232333.ece?service=print  >

5> Budde.com, 2008, Executive summary: Middle Eastern Fixed Voice and Telecommunications Infrastructure Market, available at <  http://www.budde.com.au/Research/2009-Middle-Eastern-Fixed-Voice-and-Telecommunications-Infrastructure-Market.html  >

28 comments:

  1. nice analysis, no quarries regarding it...:)

    ReplyDelete
  2. This simple app provides lots of funny facts that you have ever known.
    Men2hire is the best friendship, companionship & London Escorts
    Agency available for online dating and booking. A few young superstars have
    made their name just from being spread across the internet
    in videos and photos.

    My homepage; funny pictures and cartoons and jokes

    ReplyDelete
  3. One can find lot of such funny sports moments very easily.
    But my favorite is the link that tells you about bad dates stories, of course they are the funniest.
    While wasting your time watching something marginally
    funny may actually frustrate you, watching truly
    hilarious movies and shows is an easy way to get laughter into your life whenever
    you need it.

    My site clean funny pictures and sayings

    ReplyDelete
  4. Pretty! This has been a really wonderful article. Many thanks for supplying this information.


    Feel free to visit my web page: Food Biotechnology

    ReplyDelete
  5. Great web site. A lot of useful information here. I'm sending it to several friends ans additionally sharing in delicious. And of course, thanks on your effort!

    Feel free to surf to my blog post - diets that work fast for women

    ReplyDelete
  6. What's up mates, how is the whole thing, and what you wish for to say regarding this article, in my view its genuinely amazing in support of me.

    My web site; diets that work

    ReplyDelete
  7. Put it someplace where you cannot miss it if you tried.
    My grandma can really feel vindicated at such a claim,she's been saying this all my life. Avoid burnout by mixing up your exercises so that you will stay interested in doing them.

    My blog post: alleanzadellasalute.info

    ReplyDelete
  8. Thousands protest in Russia at rallies across the nation.

    I also have to wonder if the evening news shows are more
    interested in ratings or in reporting the real news. The reliable reviews on business and forecast about products
    and services.

    Also visit my web site ... Latest Daily News

    ReplyDelete
  9. Hi, this weekend is good in favor of me, because this point in time i am reading this fantastic informative paragraph here at
    my house.

    my blog post ... fitness tips women

    ReplyDelete
  10. Howdy! I know this is kind of off-topic however I had to ask.
    Does managing a well-established blog like yours take a lot of work?
    I'm completely new to writing a blog however I do write in my diary every day. I'd like to
    start a blog so I will be able to share my experience and views online.
    Please let me know if you have any kind of ideas or tips for brand new aspiring bloggers.
    Appreciate it!

    Also visit my web blog; uebersetzung russisch deutsch ()

    ReplyDelete
  11. Excellent blog here! Also your website rather a lot up very fast!
    What host are you using? Can I am getting your
    associate link to your host? I want my website loaded up as fast as yours lol

    Look into my page: solar tauchpumpen *http://thelovestore.com/*

    ReplyDelete
  12. If you are going for most excellent contents like myself, only pay a quick visit
    this web site every day since it presents quality contents, thanks

    Here is my homepage ... Nike Air Max 90

    ReplyDelete
  13. I visited many blogs but the audio quality for audio songs current at this
    website is truly fabulous.

    Review my website; ways to get your business noticed

    ReplyDelete
  14. Hi to every single one, it's really a fastidious for me to
    pay a quick visit this website, it contains priceless Information.

    My blog post: webpage - -

    ReplyDelete
  15. Hi there, this weekend is fastidious designed for me, for the reason that this time i am reading this wonderful informative article here at my residence.



    Also visit my website - paying old debt

    ReplyDelete
  16. What i don't understood is in fact how you're no longer really much more well-favored
    than you may be now. You're so intelligent. You know thus significantly in terms of this
    topic, made me in my view believe it from so many numerous angles.
    Its like men and women are not interested until it is one thing to accomplish with
    Woman gaga! Your own stuffs nice. At all times
    handle it up!

    Also visit my webpage bear grylls survival gear

    ReplyDelete
  17. My relatives every time say that I am wasting my time here at web,
    however I know I am getting experience everyday by reading
    thes fastidious articles.

    Here is my web site - brooks running shoes

    ReplyDelete
  18. Each of the companies and warranties differs from business to business and from one state to another.

    A property warranty is actually a contract allowing a home owner to acquire maintenance along
    with replacement services for things included in the plan from a home warranty provider.

    If there is something which you don't understand, ask the inspector to describe it for you.


    Check out my site Home Warranty Company Reviews

    ReplyDelete
  19. Whether payroll records are stored electronically or as a hard copy,
    bi-weekly payroll will generate fewer documents. Since 1986 MRG has authored a lot more than 200 reports published beneath the imprint, covering consumer packaged
    goods, demographic, retail, and financial markets. They must have strong communication, organizational and analytical skills, along with some cases, is going
    to be required to work under pressure.

    my blog post ... Payroll service providers

    ReplyDelete
  20. whoah this weblog is magnificent i like studying
    your articles. Keep up the good work! You know, lots
    of persons are hunting round for this information, you could aid them greatly.



    Here is my page :: best lasik michigan

    ReplyDelete
  21. Subject- Subject is a vital part while writing the letter it mentions the problem that's further discussed in the letter and supplies a title on the description.
    You require Carfax if you’re considering getting a pre-owned car.
    Establishing credit-worthy behavior isn't as difficult as you could
    think, even when you've got a prior bankruptcy, foreclosure
    or any other financial setback.

    Check out my site: free credit report online

    ReplyDelete
  22. There are three major credit-reporting companies: Experian, Equifax and Trans - Union. Until finally the 3D version becomes readily offered, this release can be your best option to get
    the Avatar fix. Debt settlement will be the technique of settling debt through the debtor using the creditor.


    Also visit my web blog - get credit report

    ReplyDelete
  23. Good site you've got here.. It's difficult to find high-quality writing like yours nowadays.
    I seriously appreciate individuals like you!
    Take care!!

    Check out my web blog http://wartrol.com

    ReplyDelete
  24. Each of the companies and warranties differs from company to company and from one
    state to another. How your own home warranty handles
    a machine which needs to be replaced depends upon the
    sort of home warranty you might have. If the developer desires to hold your deposit as a stake holder, the return of one's deposit
    may be tougher.

    Feel free to surf to my homepage; top rated home warranty companies

    ReplyDelete
  25. Some people can often be witnessed enjoying routines regarding wizard101 crown generator 2014.

    Let's finish using the thought from star Uma Pfeiffer: 'wizard101 crown generator could be
    the new good ole'. We will primarily be emphasizing
    the Fish-Out-Of-Water model.

    ReplyDelete
  26. A home warranty can be a protection tool, whereas a property
    inspection is an evaluation tool. The cost from the
    appraisal is paid for by buyer at escrow. The tariff of
    this warranty depends on the purchase price with the camera you purchased,
    how much time a policy last and also where you acquire you guessed it-your camera.


    Review my webpage; best home warranty company reviews

    ReplyDelete
  27. Many small business owners believe that this purpose of HR, besides payroll and benefits administration, is legal compliance, although not until the business grows to 50
    employees. The following points demonstrate the excellent and bad qualities of Schedule C, something every self-employed
    individual needs to be conscious of. Merchants have options if
    this concerns accepting bank cards online, but essentially the most popular options to use a alternative party vendor as it's generally most affordable and less work with businesses.


    my web-site; payroll processing companies

    ReplyDelete
  28. Online shopping centers of APPLE are incredibly helpful for phone lovers.

    Gold Bond Hotel Contract Cambridge Mattress is extra firm and
    seems like sleeping on the floor. Many people will also get these televisions
    because they are known for imitating really closely what 1 can see on the cinema theater screen nowadays.


    My web site best home warranty company reviews

    ReplyDelete