Global Exhibitions Market Looks to Indonesia for Lucrative Growth Opportunities
September 6, 2016
Despite the global exhibitions market experiencing a slowdown in 2015, the Indonesian tradeshow market continues to accelerate, offering lucrative opportunities for international organizers and investors, as reported in Globex 2016: the global exhibition organizing market: assessment and forecast to 2020, produced annually by AMR International.
“For the first time we dedicated an entire chapter on the Indonesian exhibitions market
because it’s an underserved market that shows no signs of slowing,” said Diana Gineva, editor of Globex 2016.
Since 2011, Indonesia has grown at close to 13 person CAGR with further growth of 16 percent CAGR forecast to 2020.
This acceleration largely is driven by Indonesia’s growing middle class and infrastructure improvements, such as the expansion of exhibition venue space.
“The Indonesian market remains smaller than its actual potential, and was valued at $218M in 2015, with Jakarta hosting 90 percent of international events,” Gineva said. “Indonesia is an attractive destination that’s very much on the radar for international organizers.”
Indonesia - Key insights
· Launching or cloning new events is a possibility for international organizers, as the market is far from saturation. Joint ventures with local organizers or events tend to be the preferred growth strategies, as they give access to local expertise and connections, while relying on the international organizer’s resources.
· The more profitable B2B exhibitions market remains underserved. Although organizers are increasingly shifting their focus to B2B industries, B2C events remain the largest segment.
· While machinery and automotive are the largest sectors in terms of net square meters, sectors that appeal to the growing middle class, such as consumer products, posted the highest year-on-year growth in 2015.
· Exhibition venue space is expanding with the 2015 opening of Indonesia Convention Exhibition (ICE) having total capacity of 50,000 square meter indoor space.
Global Market Outlook – Key Insights
The global exhibitions market experienced a slowdown in 2015, expanding by only 1.7 percent compared to 4.2 percent in 2014 to reach $24.3 billion.
This was due to significant declines in Russia and Brazil, stagnation in Turkey and France, and a weak biennial year in Germany.
China overtook Germany as the second largest market after the U.S., which is an indicator of the permanent shift in market power in favor of China.
“Overall emerging markets and the Gulf region continue to drive growth, together with a recovery in mature markets driven by overall improved macroeconomic conditions,” Gineva said. "Whichever way you look at it, the exhibitions market still remains a highly attractive sector as events are highly profitable, plus they have excellent cash flow characteristics with stand space deposits often paid a year in advance. The exhibitions market also remains fragmented with considerable opportunities for consolidation.”
To find out more about Globex 2016 visit: amrinternational.com/globex2016
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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