Name:Eric John Narvaez

Year and Course:

Subject:
Teacher:

Why have special events emerge so strongly in the recent years?

Special events have emerged so strongly because Australia is getting more popular since the Olympic
games were held in Sydney. The opera house is also a world-known building and is known for being in
Sydney, which , in turn, brings more and more tourism, which brings more acts or events to the area.
These events also bring writers and journalists, who then write books about the country. In his book, A
Sunburned Country (also known as the Down Under), Bill Bryson talks about how his first visit to
Australia was through a conference in Melbourne. After arriving here, he wanted desperately to come
back. Another one of his visits was through the same conference, this time in Sydney. It was after this
that he wrote his book on Australia. In turn, his book would probably make other people interested in
Australia so they will want to come here. So, after all that, the main reason why special events have
emerged is because each event brings more people here who will then, in the future, hold other events
here.

What are the key political, socio-cultural, economic, environmental and technological trends that
determine the growth of MICE Industry?

PEST analysis will evaluate the success or effectiveness of any business or organization from the angle
of political, economic, social and technological features.
Political situation of a country plays a very vital role in the success of any business. Abu Dhabi
Tourism Authority’s (ADTA) plans to promote Abu Dhabi as a leader in MICE tourism in the Middle
East, the favorable political situation in the country gives them an edge over there competitors. The
UAE consists of 7 Emirates with Abu Dhabi as its capital and Sheikh Khalifa Bin Zayed Al Nahyan as
the president of the country and ruler of Abu Dhabi. Abu Dhabi is the largest Emirate consisting of
86.7% of the country’s total area. The population of Abu Dhabi was 2.9 million at the end of 2011 and
is expected to grow to 3.1 million by the end of 2012. The total population of UAE was 7.2 million at
the end of 2011 and is expected to reach 7.6 million by the end of 2012. 88.5% of the total population
is made of expatriates and only 11.5% account for Emaratis. The government of UAE has been very
successful in creating a very healthy business environment.
The major advantage of the political system in the country is that they have a very stable government.
Ever since the formation of the nation in 1971, the country has enjoyed stability in governance. There
have never been any instances of political unrest in the nation. Even when Sheikh Zayed Al Nahyan,
the first President and ruler of Abu Dhabi passed away, the country has seen smooth transition of
power. The harmony between the 7 emirates has been very effective. The country enjoys a very good
law and order system and the courts in the country manage to deliver comparatively fair judgments to
the huge mix of population living in the UAE. During the Arab spring, when most of the countries in
the region have seen political unrest, UAE has enjoyed political stability. The rulers of the country have
been successful in taking the country towards major developments by keeping the total population of
the country on their side. This very smooth political situation in the country makes UAE an attractive
destination for business and leisure travelers from all over the world. Therefore we can conclude that
the very healthy political situation in UAE is great news for the tourism industry of Abu Dhabi.
The government policies that control businesses also determine the success of any business or
organization. The government of Abu Dhabi has positive approach towards businesses in the emirate
although there is still room for improvements in various processes compared to Dubai. The government
supports FDI, free trade and globalization. This favorable stand towards businesses taken by the
government of Abu Dhabi provides perfect impetus to the MICE tourism industry of the emirate. The
government also has clear vision on market ethics and consumer protection. The economic policies of
the government are very clear and by coming out with the Abu Dhabi 2030 plan, the government has
shown very clearly its intensions of taking the nation forward.
Although UAE is an Islamic country, the government shows tolerance to all the other religions as the
88.5% expatriates living in the country follows different religions. The tolerance shown by the
government towards other religions gives UAE and Abu Dhabi a very good image in the world and that
is again favorable for growth of MICE tourism in the region. The other major political factors
influencing the growth of MICE tourism in the region are involvement of government in foreign trade
agreements and laws of employment in the country. Regarding involvement of government in foreign
trade agreements, the processes are pretty fast due to absolute power of the leader. There is still space
for improvement in government process and communication between various government departments.
The employment laws of the country have evolved over the last four decades. From being a very
employer friendly law system, it has now moved towards protecting the interests of the employees.
These are positive signs which create a very healthy political environment in the country for the growth
of the MICE tourism sector.
Economic
The economic conditions of the nation also play a very vital role in the success of various businesses.
Businesses are always built on capital therefore, interest rates fixed by the central bank of the country
becomes very vital for its businesses. The UAE has seen its maximum interest rate of 4.8% in
November 2007 and an all-time low of 1% in January 2009. From 2007 till now, the central bank has
maintained an average of 1.4% interest rate. The interest rates being very low compared to other
countries in the world, provides investors better chance of competing with the best in the world.
Inflation rate of .5% in October 2012 and an average of 2.4% from 1990 to 2012 in the country provide
a perfect economic atmosphere in the UAE for new businesses to prosper. The per capita income of the
country stands at AED 95,000 per annum which is amongst the best in the world. The recession has
resulted in reduction of per capita income but still maintains its place among the best in the world. The
high per capita income also results in very good business environment in the country. MICE tourism
industry which will prosper only by involvement of government and individual business units gains
huge momentum in Abu Dhabi due to the very high per capita income. The country’s oil based industry
as enjoyed an average of 4.5% growth rate in GDP over the last ten years and now the country is
looking forward to diversification of the economy by promoting non-oil based sectors. MICE tourism
sector is all set to take advantage of this favorable approach from the government. The very high oil
prices during the last decade have resulted in the country’s economy becoming very strong. With a very
strong economy the MICE tourism sector of Abu Dhabi has all the resources to compete with the best
in the world.
Social
Social factors also provide opportunity for businesses to grow rapidly. UAE is an Islamic country but it
has great levels of tolerance for all the other religions in the world. The country gives freedom to
everyone living in UAE to practice their religion and because of this the people living in the country
lives with mutual respect and harmony. There has never been an incident of religion based riots or any
other incidents of that nature. This gives the country an edge over other destinations for MICE tourists
within the region. The UAE’s population is very multicultural and this makes them tolerant towards
different cultures of the world. When tourists from different parts of the world come to UAE they feel
comfortable because of the cosmopolitan nature of the city. Although, Arabic is the official language of
the country, English is widely used as a business language. The multicultural nature of the population
also results in usage of various other prominent languages like Hindi, Chinese etc. The wide range of
languages used in the country also helps in promoting Abu Dhabi as a prominent MICE destination in
the region.
Predominantly, the Arab world has been a male dominated society but the trends have now started
changing. Female participation in governance and in influential positions has seen a considerable rise
in the last decade. The message given to the outside world regarding the country’s transition in
approach towards female participation in governance is changing the perception of the world towards
UAE. This change in approach will help in the growth of tourism sector in the country.
The country is now focusing on green sources of energy and has invested a lot in sustainable sources of
energy. The efforts taken by the government is slowly passing on towards the people living in the
country. There has been a considerable increase in green initiatives in the country. This change in
positioning of the government gives UAE and image of green nation in the world. Thus overall social
situation in the country is extremely favorable for the growth of MICE tourism in Abu Dhabi.
Technology
Last two decades have seen considerable amount of improvements in the use of technology. With
government support, improvements in technology become even more effective. MICE being a service
sector will become more effective with the improvements made in technology. The use of technology
in MICE industry helps in reduction of cost without compromising on quality. The advancements made
in the online services provided by different service providers in the MICE sector has resulted in
continues reduction of cost to the end user without compromising quality. Reduction of cost without
compromising on quality is absolutely crucial to remain competitive in the global MICE industry and
the advancements in technological innovations in the country fully supported by the government has
given advantage to the MICE sector in Abu Dhabi. Technological advancements also results in making
Abu Dhabi a hot destinations for business meetings during which delegates from different parts of the
world will be interested in coming to the country. The government of UAE is also encouraging
innovations by investing a lot in education, R&D etc.
Majority of the hotels in Abu Dhabi follow international standards in terms of usage of technology for
various aspects like CRM, Security, Online transactions etc. This attracts more business travelers from
all over the world. Usage of modern technology in the field of tourism sector gives confidence to
international travelers. When the confidence of travelers increases, it will automatically result in
increased number of travelers to the country. The MICE tourism sector in Abu Dhabi is well poised to
take advantage of enormous technological advancements in the emirate during the past ten years.
From the PEST analysis of the MICE tourism sector we have arrived at the conclusion that the
industry has all the right ingredients to prosper in the region. All the key factors like political,
economic, social and technology have seen considerable advancement in the country during the last
two decades. The possibility of moving forward with continuous improvements in all the sectors
mentioned earlier is also very high thus creating perfect environment for the MICE tourism industry to
grow considerably in years to come.

How can one categorize or classify events?

There are three main categories which events go under. These events are private, corporate and charity
which are explained below.
 PRIVATE CORPORATE CHARITY/FUNDRAIS
Private events Corporate events are used for a business to promote their ING
are used for companies brand and products such as Charity events are used for

 Ensuring team building exercises

individuals who individuals to raise money

 Business dinners
can book venues for a charity of their choice
by events such as
such as  Conferences
 Wedding  Networking events
 Society balls
 Wedding  Seminars
receptions  Sports events
 Product launches
 Birthday parties  Charitable auctions
 Meetings
 Festival
gatherings The corporate events industry is not a diverse event due
some charity events may ask
to events being aimed at business' Bowdin, Allen,
for sponsors for an
The private Harris, McDonnell and O'Toole (2012)
individual partaking in an
events industry suggests that corporate and business events supports
event to raise money for
is not diverse business objectives including management
charity these events range
due to events functions, corporate communications and to improve
from
being aimed at company morals and business procedures to increase
wedding  Sponsored runs
profitability and income this is due to individuals and
receptions companies promoting a product or business  Sponsored cycling
Naylor (2011) by expanding their brand meaning other organisations  Sponsored skydiving
suggests that will not use this type of event for these reasons.  Sponsored walks
private event and much more.
rooms A business will use corporate events to help build
are booked for professional relationships between employees which will The charity events industry
celebrations mai benefit staff communication to make a business expand. is a very diverse industry
nly due to any one can go to a
wedding events Corporate events can be used by businesses of all sizes to charity venue, contribute to a
this is due to the solicit new business, create a corporate or brand image, charity event or even run one
hosts wanting and retain and build loyalty with existing suppliers and Stephenson and
privacy for their customers. They can also be used Mintzer (2008) suggests that
event and can effectively to elicit suppliers and customers. They supporting the community
 afford a private can furthermore be used effectively to elicit peak that supports your local
venue unlike performance from employees and produce camaraderie business by picking a
other and teamwork among co-workers. The corporate bar has worthable local charity or
organisations been raised dramatically and the competition to craft charitable event you can gain
such as: something original that will help a business create much goodwill by
 Business' public awareness as well as industry and media buzz contributing to a charity
 Schools is fierce (Allen, 2009). within your community and

 Manufacturers over the long run it will

benefit your business

Private events through the contacts you

are used for make and the relationships

individuals who you build this is due to the

want certain public and community

guests to arrive getting involved to help raise

at the venue. money for charity such as

Private  Schools
events will have  Business
a guest list to  Manufacturers
ensure the venue
is not open to
the public. Sponsorship represents a
give and take between a non-
There are a large profit and a business. The
number of business donates money
private sector toward costs associated with
oganisations a charity event, and in return,
involved in the charity event affords the
commercial business low cost
activities in the public exposure and
events marketing. A charities
management sponsorship success rate is
business. Clients strongly dependant on the
who are looking perks that it can offer
for a suitable potential
venue for their business partners(Lyons,
event can do so 2012).
themselves,
which can
be time
consuming, or
they can place
their enquiry
with an agency
such as Inntel,
which will
lessen their
effort and
possibly benefit
them by
obtaining
more competitiv
e rates for venue
(Shone
and Parry,
2004).

Below are the types of events under each classification in which they mainly relate too.
 CORPORATE
LIVE
 Conference and
PRIVATE  Music events
meeting CHARITY
 Exhibitions and  Sporting
 Corporate  Outdoor events
trade shows events
hospitality
 Festivals
 Incentive travel

REFERENCES:
http://kimberlyevents.blogspot.com/2010/02/reading-1-responses.html

Essays, UK. (November 2018). Pest Analysis Of Mice Tourism Sector. Retrieved from
https://www.ukessays.com/essays/economics/pest-analysis-of-mice-tourism-sector-economics-
essay.php?vref=1

http://hndeventmanagement.weebly.com/classification--types-of-events.html