The Russian stock market suffered badly in the early days of the recession but has since shown a steady recovery. The shock of the virtually un-expected crisis, lead to many highly publicised companies having to re-schedule their debts for the first time. After many years of substantial and relatively easy growth, Russian business was presented with a new challenge of how to become competitive, creative and reduce costs in a very short period.
For many Russians the economic downturn has had limited effect. Private debt is minimal and consumer spending continued through 2009. The travel industry was substantially effected but the MICE sector was even able to post some increases due to the new highly competitive nature of business.
The number of high profile MICE bookings held in 2009 was noticeably reduced but in general MICE business continued as companies were increasing attendance at International Exhibitions/Conferences and the importance of incentives for increased sales were recognised. Savings had to be made but the underlying importance of MICE travel enabled most Russian specialists to maintain business levels.
The 2009 brief survey was carried out through a representative cross-section of the Russian MICE sector, including MICE professionals and Corporate Buyers.
Q.1. MICE business in 2009 has increased/decreased or remained stable?
65% answered that business had remained stable over previous years
25% answered that business had decreased in 2009
10% reported an increase in business
Q. 2. What differences have been noted in client preferences?
82% answered that clients had downgraded flight & hotel categories
10% answered that clients continued to book business travel as previous years
8% answered that their clients had virtually stopped MICE activity
Q. 3. What changes have been noted in the MICE sectors:
Meetings:- 45% Increase 34% Decrease 21% Remain stable
Incentives:- 59% Increase 14% Decrease 27% Remain stable
Conferences:- 61% Increase 16% Decrease 23% Remain stable
Exhibitions:- 53% Increase 24% Decrease 23% Remain stable
Q. 4. What are your projections for 2010?
79% answered that they expect business to increase to former levels
12% answered that they expect business to remain as the last year
9% answered that they expect a further reduction
Most Russian businesses have successfully re-structured their debts and extensive cost-cutting has enabled many companies to become lean and highly competitive. Consumer confidence has resulted in an increase in Christmas spending and early indications for travel trends in 2010 are positive.
Conclusion: The Russian market was slightly affected in 2009 but Industry confidence for 2010 is high and offers a multitude of opportunities. The Russian MICE sector is buoyant and poised to continue it’s dynamic growth. Bookings for the primary MICE event in Russia, the Moscow International MICE Forum, have increased and only a few stands remain available. Obviously International MICE specialists recognise the potential in Russia and are eager to repeat their attendance.
About the aiGroup:
The aiGroup specialise in organising highly targeted events. With more than 17 years experience in the growing Russian tourism market, the aiGroup have been organising the Moscow International MICE Forums successfully for the past 5 years. Further details on the aiGroup and on the 6th Moscow International MICE Forum can be found on the companies website at www.MiceForum.ru
By: N. Peter Kramer
