12th March 2009
Events industry 'predict increased spending'
Procurement professionals predict an increase in MICE budgets in the next 16 months. . .
Procurement professionals predict an increase in MICE budgets in the next 16 months.
According to a recent report commissioned by Macdonald Hotels and Resorts and leading event organisers Confex Group, nearly three-quarters of the procurement decision makers questioned stated budget as the most important factor when making their purchasing decisions.
Ruaridh Macdonald, Business Development Director at Macdonald Hotels and Resorts, explains; “It has been a difficult situation, as procurement decision makers seek to find the best ROI, suppliers find they are not able to be as flexible as they would like. The lack of confirmed bookings due to a considerable decrease in the length of planning time and an increase in the number of last minute bookings could be a reflection of this current trend for procurement decision makers looking to negotiate on price, and feeling they are in a strong position as suppliers compete for their business.
"The more procurement decision makers spend, the more they want to see a greater return on investment and excellent value for money."
VisitBritain estimated that UK businesses spend £3 billion on events held in the UK with around 80 million people attending just over 1.5 million conferences and meetings each year. As a result the UK meetings and events industry provides one of the largest sources of revenue for the economy, valued at £22 billion, forming a significant segment (26%) of what is now widely known as ‘business tourism’.