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0 Comment(s) 17/04/2008
by Didier Scaillet, VP of global development for MPI
Who does not know the famous quote from Conrad Hilton on the three
conditions necessary to have a successful hotel? “Location, location
and location.”
I would argue that, in this day and age, there is
another key to success: “education, education and education”, which is
increasingly relevant in the hospitality and hotel sector, and is
rapidly becoming a key to success in the meetings and events industry
too.
Infrastructure development
The Middle East is
witnessing a staggering development of its meetings infrastructure:
convention and exhibition centres are flourishing in all the Gulf
countries’ capitals and new hotel developments, with tens of thousands
of rooms added over the last few years and a lot more to come, are hard
to keep up with.
This development creates a massive need for
additional workforce within the region. Hundreds of thousands of jobs
(300,000 according to some recent research) will be created in the
coming ten years in the hospitality sector alone, with an estimated 20%
of these jobs being within the meetings and events sector. Where will
these 60,000 meeting professionals come from?
The problem is
that the phenomenon is far from being limited to the Gulf region… new
venues, hotels and meeting facilities are being built all around the
globe.
Las Vegas casino and hotel operators are developing
massive new properties, Singapore looks forward to the opening of the
Integrated Resorts, the vast majority of India’s major cities have
dedicated convention centres under construction, China is building over
80 convention and exhibition centres while Macau keeps on expanding its
casino hotel operations. The list goes on…
Talent shortage
This
is certainly great news for our industry, which goes from strength to
strength, and can certainly be considered as a sign of increased
recognition of the meetings and events industry as a key economic
contributor.
But it also increasingly causes a major
challenge: talent shortage. There will be simply not enough trained
professionals to lead and operate all these properties in a near future.
Already
today, we are seeing new venues and hotels opening up at reduced
occupancy, not because of a lack of demand (we have a seller’s market
in most destinations) but because they cannot recruit enough talent to
operate at full capacity.
This is likely to have few major consequences:
•
Increased costs of operations on a global basis. If the demand is
higher than the supply, price goes up. And it certainly applies to the
labour market as well.
• Diminishing demand for meetings. Increased
cost of operations will further increase spend in an environment where
the increase of travel fares as well as higher prices for food and
beverage are already making meetings and events more expensive than
before.
• Compromised service standards. The lack of available
qualified talents might also force brands to compromise on their
service and operations standards, impacting the quality of the
experience by delegates.
• Lowering the return on investment. Both
organisers of meetings and property owners or operators might see the
return on their meetings and events investment diminish.
Meetings
and events are very powerful communication tools, now well-established
in the marketing mix of organisations. But they are also expensive. We
need to make sure that we have an educated, largely available workforce
available to deliver experiences.
Trained professionals
For
decades, the workforce entering the meetings and events industry did it
by accident, discovering our industry and its opportunities at random.
The
past few years has seen the emergence of dedicated curricula at an
academic level: undergraduate, graduate and masters programmes in
meetings and events are now widely offered in the North America, Europe
and Asia. As a result, we are seeing the first generation of trained
meetings and events professionals entering the workforce.
Unfortunately,
this is still not the case in the Middle East where the investments
have been focused on the hardware and not yet on the ‘humanware’. The
problem is that, while beautiful buildings certainly contribute to
meetings and events delivery, they do not create experiences:
knowledgeable professionals with high service standards do.
The
Middle East has enormous advantages to fulfil its vision of becoming
one of the major hubs for the meetings and events industry during the
21st century: striving airlines, sophisticated airports, modern and
adapted meeting venues.
But its competitiveness in the global
market will also very largely depend on its capacity to develop an
educated workforce and a supply chain of operators who can deliver
meetings and events experience. Leading meetings and events
destinations like Paris, Vienna, Las Vegas, Barcelona, Singapore, to
name a few, are attracting and retaining meetings not only because of
their infrastructure but also thanks to the level of knowledge and
expertise that their professionals have acquired.
Part of this
workforce can certainly be acquired by attracting talent from abroad
but there is certainly a need, and, I believe, an opportunity, to
develop educational and training programmes locally. And this will take
time: it is quicker and largely easier today to build a hotel than to
develop and retain talents to run it. So, it should happen soon with a
great sense of urgency.
Association education
Associations have always played a key role as knowledge and education centres within their respective industries or sectors.
Organisations
like the International Congress & Convention Association (ICCA),
the Society of Incentive Travel Executives (SITE) and, of course,
Meeting Professionals International (MPI) have all developed programmes
for students or young professionals entering the workforce as well as
education offerings for more senior professionals.
And the good
news is that they are all already present in the Middle East to support
the emergence of its meetings industry. For example, MPI has just held
its inaugural Gulf Meetings and Events Conference with 150
participants, a yearly event that is dedicated to providing knowledge
exchange and global networking opportunities for Middle East meetings
and events professionals. The organisation is also discussing with
various governmental agencies and academic institutions in the region
to create training programmes.
The Middle East has tremendous
opportunities ahead of itself in the meetings industry: an ideal
location between East and West, rapidly developing airline hubs and an
increased capacity to host meetings. It now needs to build a
knowledgeable, well-trained workforce to compete effectively on a
global scale.































