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1. 1 © 2015 Ipsos.1
© 2015 Ipsos. All rights reserved. Contains Ipsos' Confidential and Proprietary information
and may not be disclosed or reproduced without the prior written consent of Ipsos.
GCC MICE OUTBOUND
March, 2016
MICE ARABIA CONGRESS
Karthik Ramamurthy, Head – MEA & India

2. 2 © 2015 Ipsos.
OPTIMISMNAVIGATING
tentative

3. 3 © 2015 Ipsos.
Source: IMF WEO, IPSOS Analysis
THE REGIONAL ECONOMY IN A STATE OF FLUX
Predicted Real GDP Growth for 2014
0
1
2
3
4
5
6
7
KSA UAE Oman Qatar Bahrain Kuwait
As of OCT 2013 As of OCT 2014
0
1
2
3
4
5
6
7
KSA UAE Oman Qatar Bahrain Kuwait
As of OCT 2013 As of OCT 2014 Actual 2014
Actual Real GDP Growth (2014)
2015(E) - 3.3% 2016 (F) - 2.8%
Oil
Forex Security

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WITH VISIBLE PRESSURE ON INDUSTRY
Source: Trading Economics, HSBC Markit
Manufacturing PMI (2012-2016)

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BUT, THERE IS OPTIMISM TO TIDE THROUGH, INDICATING RESILIENCE
Source: Korn Ferry Hay Group business outlook study, 2016; EIU
65% of the business are
forecasting their revenue to grow by 5
to 15% or more in 2016
30% of the business are expecting
business to look more or less the same as
2015
5% of the business forecast a
reduction of more than 5% in revenue
Business Outlook 2016
50% of the businesses have set cost reduction and higher
profitability as their strategic priority for 2016 as against 26% in
2015
Cost Reductions Profitability

6. 6 © 2015 Ipsos.
BUILT ON FAVORABLE FUNDAMENTALS
Source: UN Population Data 2016, World Bank Data, IPSOS
8% 3% 2% 7%
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
Agegroup
FemaleMale
GCC Population Demographics
More than 50% of the
population is in 26-45 years
age group and contribute to
70% of outbound travel
GCC Population (‘mn)
2013 2018F
49.7 56.3
GDP (Nominal) Per capita
UAE KSA Qatar Kuwait Bahrain Oman
$96,732
$43,962 $43,594
$24,161 $24,855
$19,309
USA
$54,370
UK
$45,729

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SO, WHAT IS THE SIZE OF PRIZE?
2014 2020F
USD 13 Bn
USD 19 Bn
Source: IPSOS Estimates & Analysis
INHIBITORS
Slowing
Economies
Increasing
Security Concerns
Economic impact
of oil price
ENABLERS
Favorable
Demographic
Increasing presence
of multinational
businesses
Increasing
Connectivity
Major events
GCC Business Outbound

8. 8 © 2015 Ipsos.
KEY DESTINATIONS FOR MICE TRAVELERS
Most
frequented
destination
markets
Growing
Destination
Markets
USA
South Asia
SE Asia
Switzerland
Germany
UK
France
Morocco
17% to India,
Pakistan and Bangladesh
31% to North
America
62% to Europe with
24% travelling to UK
Source: IPSOS Research

9. 9 © 2015 Ipsos.
DRIVEN BY…..
Key Purpose for
MICE Travel
Business
Development
~80%
Conferences/
Exhibitions
~45%
Training
~25%
Sourcing
~60%
Incentives
~10%
Source: IPSOS Research

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PARAMETERS CONSIDERED FOR CHOICE OF DESTINATION
Business Relevance Security Access Weather Food
Promotion/ Packages BudgetShopping Social Media Entertainment
Source: IPSOS Research

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IMPORTANCE OF PARAMETERS BY SEGMENT
Meetings
Conferences
Incentives
Exhibition
Business Services
Financial
IT
Retail
Hospitality
Financial
Healthcare
Telecom
Financial
Hospitality
Business Services
Retail
Construction
Manufacturing
Healthcare
Food
Business
Relevance
Security Access
Promotion
/Packages
Budget Food Shopping Entertain
- Very Important - Less Important
KEY VERTICALS
Source: IPSOS Research

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KEY CHALLENGES FACED BY ORGANIZERS
SECURITY CONCERNS
VISA/IMMIGRATION
PROCESS
MULTICULTURAL
GROUPS
FOOD
Source: IPSOS Research

13. 13 © 2015 Ipsos.
TYPICAL GCC LUXURY TRAVELER
PROFILE
GCC National
Age: 25+
Strong emphasis on family
activities
Western Expat
Age: 30+
Influenced by country of origin
9% increase in
outbound luxury travel
in 2015
14% residents
spend $7,000 on a
family trip
GCC OUTBOUND LUXURY TRAVEL
MARKET
LUXURY TRAVEL – SOMETHING THAT CHARACTERIZES THE REGION...
1/4TH
of GCC outbound
luxury travel is
MICE
Source: Kippreport - Luxury Travel’2015, IPSOS Research

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AND THAT BUCKS THE ECONOMIC CLIMATE
On Air
Travel
Travel in
business class
On
Accommodation
On Dining
SPEND BY GCC TRAVELER
COMPARED TO REST OF THE WORLD
2.6X
40-60%
4.3X
5.6X
LONDON
PARIS
SOUTH OF FRANCE
ITALY
GERMANY
SWITZERLAND
AUSTRIA
Europe Continues to be the Most Popular
Destination for Luxury Travel
Natural Experiences Drive
New Trending Destinations
TURKEY
CROATIA
SOUTH AFRICA
AUSTRALIA
NEW ZEALAND
POPULARDESTINATIONS
TRENDINGDESITNATIONS
Source: Kippreport - Luxury Travel’2015, IPSOS Research

15. 15 © 2015 Ipsos.
When the going gets tough,
the tough get going
the tough differentiate and standout!
TO CONCLUDE…

16. 16 © 2015 Ipsos.