It's all about volumes

The conference business picks up "" but do we have the infrastructure?

In a move that points to MICE becoming big business in India (Rs 800 crore in 2006, with a 10-15 per cent annual growth opportunity, estimates IndiQuest Research), the Messe Dusseldorf group recently announced the formation of its 100 per cent Indian subsidiary.

Explaining the decision to buy out its joint venture partners, Werner Dornscheidt, president and CEO of Messe Dusseldorf GmbH, one of the world's largest trade-fair organisers, said the group believed the timing was perfect to aggressively exploit India's potential.

And though primary efforts will be to boost Indian participation in trade activities in Dusseldorf, Dornscheidt suggests that the company will offer consulting services for infrastructure projects through its Shanghai subsidiary SNIEC.

With the government realising that building infrastructure is the only way to increase India's MICE (which stands for meetings, incentives, conferences and exhibitions) revenues, the two early birds that entered the fray last year are reporting some success.

The Hyderabad International Convention Centre (HICC) "" a JV comprising Dubai-based EMAAR group and Andhra Pradesh Industrial Infrastructure Corporation, that can accomodate 6,500 delegates "" was reportedly booked for 200 days last year, the largest event being the National Cardiologists' Meet over six days and involving 10,000 delegates.

"The existence of a set-up like ours means that large-scale events are being planned now that could never have happened earlier," says Philip Logan, general manager, HICC.

Barbara Hanlon, managing director, The India Expo Centre XXI, which launched in Greater Noida last year, is equally gung-ho "" "We're the only multi-purpose venue that can seat 10,000 people theatre style."

It already has a booking for 2013 "" from the International Society for Hand Surgery. While Logan claims up to 80 per cent of its customer base is local, he does mention that IEC XXI positions itself as an international alternative to Singapore or Dubai.

According to Hanlon, IEC XXI sees no harm in pursuing an international clientele. "The revenues are clearly an advantage, plus it raises your profile," she says.

Besides these two players, other convention centres are being developed. Thirty-five acres have been allotted for a 6,000-seat international convention centre adjoining Bangalore's Devanahalli international airport, due to be ready in 2009.

HICC is partnering Nirmal Lifestyle for a 5,000-seater convention centre (part of a large project that includes three hotels and service apartments) at Mulund in Mumbai. However, work hasn't started on the 7.5 hectare plot in Bandra-Kurla reserved for a Reliance convention centre. Industry experts say Mumbai's missed out on the convention centre race because of high land prices.

Hanlon is unfazed by new arrivals. "A gateway city like Delhi will always have a distinct advantage. The other underestimated factors are things like sightseeing, reviltalised public spaces and entertainment options. Like the fact that we're right next to a Greg-Norman designed golf course will always be a pull."

Logan admits Hyderabad is still a bit of a sales challenge but only till 2008 when the international airport will improve accessibility.

Shekhar Grover, former editor and founder, MICE India, says the bigger worry is that India won't have a convention centre designed for 15,000-20,000 delegates for some time to come. "That's the kind of scale India needs to be really taken seriously."

The hotel room shortage will have to be addressed as well. "According to a Knight Frank study, between Noida and Greater Noida 24 hotels will come up in the next two years," says Hanlon. IEC XXI is supplementing that by starting its own 400-room four-star hotel by 2009.

Logan believes that the case for building more convention centres is pretty straightforward. "Convention centres should be part of a city's standard development plan because it is never an independently functioning enterprise; it drives the economy of the whole city." And that's the reason, industry experts say, the government is getting involved "" for the foreign exchange.

Grover, though, sounds a warning, "There's not even a common association of industry players. Until everyone stops trying to cut into each other's business, no amount of isolated infrastructure building will work."

New Projects

Four convention centres of 5,000-seat capacity in public-private partnership in Delhi, Mumbai, Goa and Jaipur to come up

In November 2006, the Goa government invited bids from developers for a state-of-the-art international convention centre in Panaji on a build-operate-transfer model for which it will provide 24.76 acres in Dona Paula, Panaji, on lease

Delhi plans at least two more world-class convention centres ahead of the Commonwealth Games

To create a "brand" for Bangalore, the department of tourism is planning an international convention centre near the international airport in Devanahalli, with a seating capacity of 5,000 and hotel accommodation for 3,000 tourists

Vedic Village, the international spa resort in Kolkata, will have a 60,000 square feet, eight hall "eco convention centre"

Madhya Pradesh has proposed a convention centre capable of seating 1,000 in Indore, along with a hotel

An international convention centre on the banks of Akkulam Lake in Trivandrum, Kerala, is proposed as a public-private venture over 46 acres