With no signs of an early closure to the war in the Middle East, as usual, the world of meetings and events has hit another storm. Given the rising energy costs affecting food and travel, is the meeting and events industry ready to face its biggest challenge post-Covid-19?
Quoting the World Travel and Tourism Council, “estimates that the escalating conflict in Iran is already impacting the Travel & Tourism sector across the Middle East by at least US$600 million per day in international visitor spending, as disruptions to air travel, traveller confidence and regional connectivity affect demand. The Middle East plays a vital role in global travel, with the region accounting for 5% of global international arrivals and 14% of global international transit traffic. Any disruption affects demand worldwide, which impacts airports and flights, hotels, car rental companies, and cruise lines. The major regional aviation hubs, including Dubai, Abu Dhabi, Doha and Bahrain, which together normally process around 526,000 passengers per day, have experienced closures and operational disruption as the conflict escalates, significantly affecting regional and global connectivity.”
India, though, has been facing the brunt of rising food and beverage costs and has been quite measured in its approach. The airfares have already been a spoiler for anyone planning a conference. As the norm is, when airfares are high, hotels invariably short-sell and vice versa. With the last couple of bumper seasons, it is probably a law of averages taking over.
The next couple of years will see more rooms being added in the country than ever before. Just last year alone, 550 new hotels were added in the country, with most of them in Tier 2, 3 and 4 cities. With most hotels now going for enhanced banqueting and conferencing space, the event space in India will get more competitive with pressure on rates and occupancies. In spite of all the new developments, Indian hotel inventory will continue to be undersupplied. With new standalone convention centres popping up in cities across the country, hotels will find themselves another competitor. As standalone convention centres get organised and better managed, Indian hotels will find themselves vying for space, exclusivity and rates as well. The rating agency ICRA envisaged a growth of 9-12% in terms of revenue and clearly laid the onus on growing MICE sectors and rising domestic leisure.
The new financial year began soberly with the war clouds in the immediate neighbourhood, with energy resources on a sticky wicket. Most economic indices emanating from the companies are sound, with increased earnings across sectors.
India Tourism, for reasons best known to itself, has drastically cut marketing budgets for both international and domestic markets. Reducing budgets for tourism just does not make sense. When you reduce budgets in a brutally competitive market, it also brings in an element of national security as we further lose the battle of narratives. On the MICE front, the ministry has introduced ‘Meet in India’ as a specialised sub-brand within the ‘Incredible India’ campaign. The press release did add, “This sub-brand hopes to enhance promotional initiatives, showcasing India as an appealing MICE destination equipped with top-tier connectivity, cutting-edge infrastructure, a vibrant knowledge hub and a plethora of distinctive tourist attractions!”
Just building world-class meeting infrastructure is not enough to bring events into the country. The success of ‘Meet in India’ will lie hugely in marketing the country as a viable, safe and stable meeting host. This will only happen when you back it with a sustained marketing campaign across markets and sectors.
The G20 summit, which was held in India, brought in praise for showcasing the entire country as a meeting venue. Since then, the foot is off the pedal. There has been no consistency in marketing nor any effort to claim headlines. Recently, there has been an effort to revive the Buddh International Circuit in Noida. The Indian sports minister announced the possibility of India once again hosting the F1 as early as 2027. Though it looks unlikely at present, and with the current geopolitical situation, India might once again just make the pitstop. Last time around, India had to lose the opportunity to re-host the F1 due to a bizarre tax policy that treated it as entertainment rather than a sport! The tax laws have not changed yet, but it is a strange world!
The one huge star performer in the event space in the country over the last couple of years has been the world of concerts in India. A white paper released by the Ministry of Information & Broadcasting, “India’s Live Events Economy: A Strategic Growth Imperative,” said, “India’s live events landscape is transforming—from a fragmented sector to a structured and influential pillar of the country’s cultural and creative economy. Key trends in the sector include the rise of event tourism, with nearly half a million attendees travelling specifically for live music events—indicating the emergence of a robust music-tourism economy. Premium ticketing segments—such as VIP experiences, curated access, and luxury hospitality—have witnessed over 100% year-on-year growth, pointing to an increasingly experience-driven audience. Participation from Tier-2 cities has surged, driven by multi-city tours and the growing popularity of regional festivals. In 2024, the organised live events segment recorded 15% growth, contributing an additional ₹13 billion in revenue—establishing it as one of the fastest-growing verticals within India’s media and entertainment ecosystem. Large-scale events in the current landscape typically generate approximately 2,000 to 5,000 temporary jobs each, underscoring the sector’s growing contribution to employment and skill development.”
The report also added that “India is on track to position itself as one of the top five live entertainment destinations globally by 2030!” In the real world, where organising events of this scale in India, where procuring event-based permissions is as good as wading through a sticky quagmire, if we achieve even half of our aspirations, it will signal a huge victory.
As someone announced, “From boardrooms to ballrooms—and now to stadiums—India’s MICE story is no longer emerging; it’s arriving. And of course, increasingly ending with a concert.”