The annual pre-Christmas survey of the Russian MICE sector reveals interesting growth, despite a difficult year.

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 stabl
• Conferences:- 61% Increase  16% Decrease  23% Remain stabl
• 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.

www.MiceForum.ru