Convention centers are a key source of business

Introduction

Convention centers are a key source of business for most of the hotels and hospitality firms in the modern day business environment. It cannot be denied that growth and development of hospitality organisations is primarily connected to the effective connection and communication of various stakeholders in the market. Most of the time, it has been seen that, business travelers have achieved greater success by collaborating with different individuals from different business domains hence, meeting in a wellfurnished setup largely allows greater communication and efficient display of resources available in an effective manner. A new meeting, incentive, convention, and exhibition center plays a crucial role in bringing together people from different professional backgrounds that creates an excellent opportunity for business development in an effective manner (Marinelli, 2021). Development of a MICE facility is a massive construction project therefore; it becomes important for the organisation Exhibition Bahrain to make sure its feasibility is assessed in an effective manner. A feasibility study is something that helps to analyse the financial viability and success of a project in the best possible manner. The hospitality business environment has become highly competitive in nature especially in Bahrain as the country embraces opportunities for growth, its investment on infrastructure development has been extremely active which has led to achievement of systematic success however, with more and more global businesses showing interest to come to Bahrain for business and relevant events, Exhibition Bahrain has significant potential to cash in on the current opportunities in the best possible manner (Zhang et al., 2019). Hence, the current project aims to discuss the need for construction of a new MICE facility for Exhibition Bahrain project which would involve analysis of a SMART aim, objectives, viability analysis, environmental factor influencing the project and finally the profits and positives for the stakeholders involved in the project in the best possible manner.

Exhibition World Bahrain

The Exhibition World Bahrain is one of the leading and the biggest convention center located in the Manama, the capital of Bahrain. Over the years, this stunning piece of architecture has become an important part of the business culture in the country as it provides massive support to the global business summits as well as holds events successfully. During the covid 19 pandemic, the Bahrain government emphasised on using the facility as the biggest testing center which helped to address the healthcare cases in the country in an effective manner. However, as compared to the other middle eastern nations, Bahrain is yet to consider more investment on infrastructural development.  Even though, it cannot be denied that Bahrain is one of the richest and most developed gulf nations but, to be able to attract more tourists especially the business travelers, the government must emphasis development of infrastructure that attracts global attention (Adzmi and Hassan, 2018). The Exhibition World Bahrain project has been looked at as a revolutionary construction project that is likely to increase the potential of the country to attract business clients from all over the world in the most effective manner. The construction of a  new MICE facility by the above mentioned organisation would be another feather in the crown of the country considering the fact that it is likely to elevate the opportunities for business tourism in the country. According to the existing tourism literature, business tourism has become an important part travel and hospitality tourism in an effective manner therefore, in this scenario, assessing the need for developing a new facility increases the possibility of business success in the market (Shafieezadeh et al., 2020).

MICE Industry

MICE is a kind of tourism in which big groups, usually plan in advance and are brought along with particular motive. In the field of tourism, MICE is an acronym for Meeting, Incentives, Conferences, and Exhibitions. MICE tourism includes various components. It includes planning conventions and meetings of hotel departments, management of food and beverages, firms in logistics, travel professionals, cruise ships and conference centers, and private tourism operators and companies. It is a creative event management industry which promotes the economic perspective of organizing events and meetings on regional, local, and international levels. The MICE industry is one of the major pillars of national economy for Bahrain. Some of the top economies in world have been able to develop well developed and planned business infrastructure which has helped to develop a strong hold in the global business environment in the best possible manner. It cannot be denied that countries like UAE have become extremely visible due to its business infrastructure that attracts lot of business tourists throughout the world. To be able to compete with these countries Bahrain must emphasise on developing a new MICE project headed by Exhibition world Bahrain. To be able to develop a strong construction framework it is firstly important to develop mission aim and objectives that would allow better understanding of the project and accordingly help to involve different stakeholders in the market in an effective manner (Mardiani, 2018).

Primary Aim of the Report

The primary aim of this report is the conduct a feasibility study regarding the MICE project headed by Exhibition World Bahrain. This project is extremely important to the organization as well as the country. Once successfully completed, the MICE project by Exhibition World Bahrain will be very fruitful for the economy of Bahrain. The development of the new MICE facility by Exhibition world Bahrain would help to bring Manama the capital city of the country into the radar that eventually increases the possibility of higher traffic in terms of business travelers in the nation. The parent organisation of the Exhibition World Bahrain, ASM global has been successful in managing the facility in an efficient manner that has improved the overall business of the tourism industry in the country hence, it could be said that development of the convention center would create added opportunity for the organisation to hold better events or meetings and provide a better experience to business tourists visiting the country (Veselitskaya, Karasev and Beloshitskiy, 2019).

SMART Aim

To develop a complete and well suited meeting, incentive, convention, and exhibition center at the heart of Bahrain within the coming three years. The current aim helps to show the urgency that the organisation feels is needed to achieve success in the market. The present aim is to develop a strong MICE facility in Manama where another architectural milestone ie the Exhibition World Bahrain event center is located. This would help to have two important business edifices in the country available for all sorts of events and conventions which would elevate the importance of the capital city exponentially. It cannot be denied that growth and development is a relative term however, implementing a construction plan would help to raise the possibility of foreign currency in the country that would help to place Bahrain in the global business environment  in an effective manner.

Objectives

1. To complete the construction of a new MICE facility by the end of 2026.
2. To recruit a complete project team by the end of 2022.
3. To raise funds for the development of the project by the mid of 2023.
4. To increase the profit of business tourism in the country by at least 30 % by 2028.

Rationale for the Convention Center Project

The rise of business tourism has been quite visible in the country for a long period of time. It cannot be denied that growth and development of business tourism has opened up new avenues for a lot of hospitality and travel business organisations. However, in countries where travel and tourism is considered key source of revenue, it becomes extremely important to improve the tourism infrastructure to enhance the possibility of higher revenue. For instance, Las Vegas in the last decade or so, generated around 31% of the total profits from business tourism. Similarly, other top cities like Paris and London have also contributed significantly towards the revenue of business tourism for their respective nations (Fyall et al., 2022). Hence, this clearly shows that, business tourism is indeed an important aspect in the modern day tourism industry. However, it cannot be denied that business tourism could do wonders for a region especially when a location is built to suit the needs of business travelers in an effective manner. Bahrain government in the recent past has emphasised more on developing crucial infrastructure which enables greater possibility of success for its tourism industry. According to the current trend in business, there are number of organizations all across the world who aim to improve their business reach by organizing business events in different locations (Matovic, 2020). The project will boost the business tourism as well as overall tourism in the country. Tourism remains a leading economic sector for Bahrain. The growth of tourism sector has been a vital driver of the Kingdom’s comprehensive development.

In this scenario, it is also important to note that the stakeholders involved in the current project would be largely facilitated because it would help to explore their abilities and strengths in the best possible manner. Stakeholders stand to be important for any business project especially when it comes to a construction project, they are imperative in nature. Without effective support from the stakeholders, a massive construction project like a MICE project cannot be developed. Hence, it is extremely important to highlight the core benefits for the stakeholders in an effective manner. Firstly, the top management of ASM global the managing organisation of Exhibition Bahrain project is one of the key stakeholders (Ahn and Back, 2018). Being the top management, they are likely to enjoy the best possible profits and perks of the newly developed MICE facility. The financial and social success of the project is likely to elevate the organisational status not only in the country but also in the foreign environment. It is extremely important to note that organisations that aim to achieve global partners, must display effective abilities to collaborate with the different stakeholder. The top management therefore, should collaborate with effective workforce for whom one of the key benefits of the project would be a sure shot working tenure with the company. ASM global is a renowned employer therefore, the workforce attached with the new construction job would be facilitated by the new project as they would have long term agreement for the construction of the new project (Bennington et al.,, 2019). On the other hand, the suppliers stand to be another key project stakeholders who must be effectively communicated with, in order to continue with the business activities effectively. Having effective connection with the suppliers is likely to continue the job in an effective manner. However, it is important to note that having a strong business relationship with the suppliers is likely to provide them with financial profits as well as long term business relationship with the organisation. Apart from that the local people surrounding the construction site would be facilitated in terms of business because having increased number of business travelers are likely to elevate their business opportunities in the best possible manner leading to complete development of the local ecosystem which is extremely important for the overall growth and development of the country (Sofronov, 2019).

MacroEconomic Environment

Macro environmental analysis is extremely important for an organisation as it helps to identify the key external issues which affect the operation of a business in the business environment. The macro environmental factors involve debiscussion of the political, economic, social, technological, legal, and environmental aspects. It is extremely important for an organisation to make sure they understand these external factors and their implications on the business in an effective manner.

Political: The political environmental factor is one of the most important aspects that shape up the operations of a business firm. The political environment plays an important role because, political decisions force business organisations to alter business decisions. A convention center needs to consider the current political scenario because, in the last couple of decades, the global environment of meeting and convention centers has expanded due to globalisation. Globalisation has reduced business barriers in the market thereby creating more opportunities for MICE facilities in the business setting. It is extremely important to maintain a strong understanding of the local political environment (Da Costa, Timuneno and Nursiani, 2020). Bahrain has emerged to be a key place in the Middle Eastern region that corporates have preferred to hold their business events in an effective manner. The political environment in Bahrain has helped to develop a greater communication with the different corporate houses which has also raised potential of business development in the country. In the current business environment, destination marketing stands to be an important aspect for convention centers which is where the support from the political bodies stands to be important to achieve complete success. It could be said that, Bahrain’s political stability is more or less effective which has helped the corporate businesses to operate in an effective manner (Sofronov, 2019). On other hand, Bahrain government has developed trade treaties with foreign countries especially in European nations which also increases the trade possibilities to a large extent. This being said, Bahrain must emphasise on collaborating with different level of political control that would enable better operations of the convention center. For instance, it is important for the local councils to promote security and safety of the business delegates as well as reduce political hassles in the country which is likely to improve the growth and development of the new MICE facility developed in the best possible manner. Instable political environment, in the country as well as improper diplomatic relations with the foreign country is likely to affect the growth potential of the new facility developed for business tourists. Hence, the government must emphasise on consistent development of the political environment to achieve growth and success in the best possible manner (Alananzeh et al., 2019). All forms of government are in favor of developing the MICE facility. There is no kind of opposition of the MICE facility. The positive stance of the ruling family towards the development of MICE facility is a great sign for the country and the project.

Economic: The economic environment plays an important role for the overall operations of convention centers in the best possible manner. Due to covid 19 pandemic, the global economic crisis highlighted certain key problems for most of the governments however, the Middle Eastern countries have been able to improve their operational condition due to effective availability of financial and other resources. Bahrain has one of the strongest currencies in the world that addresses most of the problems for the government. However, while developing MICE facilities it is important to understand the target segment for the property that would enable greater success for the organisation (Boo and Busser, 2018). Due to economic crisis post pandemic, most of the business organisations have cut down on their cost of business events hence, providing complete business package for these organisations at an affordable rate would be a great idea for the organisation. The economic environment also plays an important role in understanding the movement of the global economy when it comes to tourism industry. Business tourism is a key part of the national and global tourism industry thus, the organisation ASM global must emphasise on controlling its cost structure which would help to provide a competitive package to the business houses in the best possible manner (Nurov, Khamroyeva and Kadirova, 2021). Apart from that, in the current business environment, most of the organisations have cut down of their travel costs hence, of ASM is able to manage the complete business tourism package for a respective business organisation, it is likely to address the growth objectives of the organisation in the best possible manner. The Economic environment of Bahrain is positive towards the creation of MICE facility. The different economic factors are supportive of the MICE facility. In return, the country will experience great economic push once the project is completed. The MICE facility will attract business from different parts of the world.

Social: One of the major goals for brand events and meetings is to elevate the performance of a particular business organisation, however, in the recent past, with the covid pandemic, most of the business meetings are held online despite of their scope and importance. Therefore, ASM global must understand the need for developing a new MICE facility. One of the major social aspects of conventions center is to improve the socialization part for the business houses. Business meetings and conferences help business organisations to connect across different levels which is extremely important for the overall growth and development of an organisation (Morrison, 2022). Effective socialization also helps to improve business possibilities with new partners and stakeholders hence, from the social point of view, convention centers allow greater support and development of business in the best possible manner. Hence, a MICE facility will emphasize on developing the infrastructure in a way that would enable greater hold over the business activities, improve communication that improves social connectivity of the business houses to great extent. Brand performance is elevated by better brand awareness and convention centers enable a brand to improve the brand awareness by addressing many people together hence, it definitely strikes a bell to the bigger corporates and multinationals in the best possible manner. From the business point of view, convention centers play an important role as it provides a greater opportunity for interaction with different stakeholders and communities (Ratra and Ratra, 2018). However, from the social point of view, it becomes extremely effective as it allows companies to understand the different cultures in an effective manner. Therefore, the social factor could be considered the most important aspect for efficient operations of the convention center. With social aspects in mind, the exhibitors aim to develop a friendly social culture that improves the possibility of brand awareness and revenue generation in the best possible manner. The present social environment in the country is positive towards building the MICE facility.

Technological: Technology is the lifeline of modern day business. Without effective technological infrastructure, no organisation would be able to achieve success in the market. Hence, in this scenario, it becomes extremely important to make sure the MICE facility is influenced by technology. One of the primary aspects of technology is it helps to connect people faster and, in an environment, friendly manner. Therefore, to be able to deal with the growth aspect of the convention center technology must be kept in mind. A convention center is well equipped with next generation technology that enables better communication display of concepts and products hence, it is important to have well balanced technological infrastructure that would allow better response from the market (Rittichainuwat et al., 2020). ASM global is an organisation that believes in advancement of information and communication technology hence, it is extremely important to implement AI powered technology which would help to connect with the needs and wants of the clients in the most effective manner. ASM’s work is completely powered by IT hence, it would take into account the technological aspects to address the needs of the client company in an effective manner. The organisation would achieve its operational objectives by integrating virtual technology which would help to achieve success in the market in the best possible manner. The technological environment in Bahrain will be beneficial for building the MICE facility. The technology will play a crucial role in attracting large numbers of businesses towards the MICE facility. The facility will have all the stateofart features required for meetings, conferences, exhibitions, and business gatherings.

Legal: Legal operations are indeed important for an organisation to make sure there’s legal implication of the operations. In the current business environment, ASM global must emphasise on developing a clean legal record by developing a clear connection with the employees and other unions, which would help to achieve success in the best possible manner. So far, Exhibition World Bahrain has not had any legal implication which clearly shows that there is a greater possibility for this organisation to achieve success in the market (Rittichainuwat et al., 2020). The legal environment of Bahrain is supportive to the creation of MICE facility. The organization must be very careful about ensuring employees are not exploited. The construction of MICE facilities involves various people for different tasks. There are large numbers of labor involved in the creation of the facility. Exhibition World Bahrain must provide adequate working conditions to all the people involved in the project.

Environmental: Environmental implications could affect the growth and development of an organisation to a large extent. Therefore, in this scenario, considering the various environmental barriers is must. Environmental factors like use of nonrenewable source of energy, carbon emission have been the most common issues in the current business environment. It is extremely important for an organisation like ASM global to develop a strong energy plan which would help to control emissions and other environmental issues in an effective manner. for instance, ASM has implemented complete solar electrical framework which would help to achieve success in providing energy to the entire Exhibition project hence, the organisation aims to implement similar strategy to manage emission. It has also embraced ecofriendly transport system in the country which largely helps to deal with the environmental controls in an effective manner (Bernini, Emili and Medei, 2021). This project is necessary for demonstrating that Bahrain has the ability to use clean energy. The project should involve minimum carbon emission and maximum utilization of clean energy.

Stakeholder/Strategic Partner

Effective stakeholder management is extremely important for the growth and development of an organisation. In order to complete a construction project successfully, it is important for the managing organisation to deal with the stakeholders in a systematic manner. The stakeholders play an important role in the process of business management as they provide ample funds and insights which improves the efficiency of the project in the best possible manner. In a construction project there are number of key stakeholders. Stakeholders are mainly of two different types internal and external. The internal stakeholders involved in the current project is the top management of ASM global who are responsible to develop a strong construction plan for the current project (Safaeva, 2021). It is extremely important to have clear connection with the board of directors because it helps to improve the communication in the project management team in the best possible manner. The project management team stands to be another key internal stakeholder who must coordinate with each other in order to achieve project objectives in an effective manner. A project would not be successful if the project management team fails to coordinate and collaborate successfully. Therefore, the project manager must take significant responsibility to establish greater communication with the individuals in an effective manner. Apart from that the employees both involved in project management as well as the staff members of the ASM global must take ownership of the project or else it might not be able to achieve the objectives in a systematic manner (Henderson, 2018).

The government of Bahrain stands to be one of the most important external stakeholders who must have regular communication with the project management team that would help them to provide all sorts of available support in an effective manner. For instance, the disaster management plan and the construction plan must be sanctioned by the government which helps to officiate the entire project in a successful manner. Apart from that, it cannot be denied that the business tourists are another key external stakeholder who need to be communicated with in an effective manner considering their role in making the construction project a success. Without a doubt, the suppliers of raw materials stand to be another major external stakeholder who must have strong communication with the project management team as it helps to achieve systematic success in an effective manner (Ahmed and Akbaba, 2018). The suppliers stand to be one of the key stakeholders because, they tend to provide supplies for efficient achievement of project deliverables. The construction industry is highly competitive in nature therefore, having an excellent relationship with the stakeholders is extremely essential to achieve growth and success in the market.  The strategic partners of a construction project are the employee procurement management organisations, operator management, disaster management team, asset management team et cetera are some of the key strategic partners that contribute towards the growth and development the project (Hossain et al., 2022). The government is already playing a very important role in this project. The permission for this entire project and all the activities related to it. The government is highly supportive to the project due to various reasons. The project is a vital part of Bahrain government’s overarching ‘Economic Vision 2030’.

PESTLE

The host region is Manama, the capital city of Bahrain. Manama is one of the most exposed regions in the country that consists of some of the bigger business organisations in the market. In the current business environment,  the development of a convention center is likely to have significant impact on the host region. For instance, the development of convention center is likely to develop the business infrastructure in the region which is likely to contribute towards the economic development of the region. Manama being the capital city exerts great culture development in the country and with a new convention center emerging in the area, it would become a cynosure in the country. Certain level of political flexibility is required to continue with the construction project therefore, being able to address the political requirements related to construction project would help to reduce negative political implications to a large extent (Levy, 2018). Conferences and business meetings and official events have significant financial worth closely over 22 billion USD all across the world which clearly shows the need for a strong business strategy in place to improve the social, political, and economic hold of the business in the best possible manner. Creation of new business operations, higher business tourist footfalls is likely to improve the tourism ecosystem around this place which is a great positive for the organisation (Henderson, 2018).

Financial analysis and Viability

Financial viability is extremely important for a construction project. It is extremely important for an organisation to understand the financial feasibility of a project to implement investment on a project. In the current business environment, the development of a fully furnished convention center would be massive however, it is important to assess the external factors which would help to analyse whether the investment required is financially viable or not. for a project plan that aims to develop a convention center with banquet halls, different screening theaters, audience halls it becomes extremely important to consider ample investment for the project. According to the current market in the host region, and the trends in labor market and raw materials it could be said that the investment for the development of a new MICE facility it is important to invest around USD 200 million (Hossain et al., 2022). With the present approximate figure, the organisation would be able to achieve the construction deliverables in the best possible manner. Without a doubt, the approximate amount is a massive amount which must be invested by the organisation ASM global to develop a strong convention and business center that would help to attract global business tourists in the market. A complete state of the art technology powered convention center would helm business meetings, global political summits, global events et cetera and would provide complete support for business tourism to the country. According to existing financial assessment, the rentable space is calculated in per square foot which largely helps the organisation to address its cost in an effective manner. Hence, as per viability analysis, per square foot charge of the convention center would be around USD 80 to USD 90 that covers up common costs of using the space in an effective manner. Excluding parking and refreshment charges which are added as per the needs and wants of the event in an effective manner (Kerzner, 2022). Considering the current calculation, it could be said that the organisation would be able to address its investment in 10 to 15 working years. Therefore, critically analysing the project viability, it could be said that it would be a good idea to invest on a new MICE facility in the targeted region as it would help to elevate the financial possibilities of this place in the best possible manner.

Project Operations Management

Project management is an extremely important concept when it comes to addressing a construction project. It cannot be denied that consistent developmental approach is essential to address the efficient completion of the project. Hence, to be able to address the current project objectives it is essential to have strong work breakdown structure and must choose a systematic methodology that would make the work easier for the project management team. The project management group must have a strong work breakdown structure which would help to achieve each and every deliverable in a systematic manner. Most of the time, it becomes extremely important for an organisation to understand the requirements in an effective manner therefore, the work breakdown structure must be followed in a holistic manner (Brewer and Dittman, 2018).

In the current business environment, it is important to follow a sustainable style of operation especially during the construction phase. Hence, the project management team should follow a lean project management approach which would help to achieve success as well as reduce the impact of construction on the environment to a large extent. The lean project management approach is one of the key methodologies that helps to maintain effective sustainability even in a bigger project management system. Even though lean project management is efficient when the budget is limited but still, it becomes extremely important for the project management team to address the requirements of the project through efficient management of project resources (Meredith et al., 2020).

The concept of lean project management helps to implement reduce, reuse, and recycle in a strategic manner as well as helps to address the growth and development of the project in the best possible manner. This also enhances the communication with the key stakeholders and helps to seek participation in the best possible manner (Chofreh et al., 2019).

Conclusion and Recommendation

The current study has discussed the core aspects of project management as well as the key factors that influence the development of convention centers with reference to Exhibition World Project Bahrain. This has helped to achieve the core objectives of the study in the best possible manner. The project is very important to Bahrain and its economy. The tourism industry will rely heavily on this project. The ‘Economic Vision 2030’ by Bahrain government will affected by this project. The MICE facility is by Exhibition Bahrain is a highly ambitious project. The entire Arab region and rest of the world will be monitoring the progress of this project very keenly. The success of the project will depend upon many factors. The timely completion of the project is a very important factor that will determine its success. The organisation and the Bahrain government will be eyeing for completion of the project within the given timeframe. This will play a huge role. It is also essential for the organisation to complete the project within the given cost. It may be expected that the project will cross the estimated cost. Due to high prices of metals and energy around the world, the costs may increase a little. This does not mean that the cost should increase significantly. The success of the project will depend upon how much capital is spent on the project. Excess of cost will reflect on the poor management of the project. The third important factor for the project is marketing and promotion. Bahrain MICE facility is expected to draw attentions of many large businesses around the world. The expected return on investment for this project will depend upon the level of interest shown by these businesses. It is necessary for Exhibition Bahrain to promote the MINE facility in different parts of the world. This will generate awareness about the facility. It will have positive impact on the minds of business owners. The reputation of the facility and the team executing the project will be on the line.

There are some recommendations for the Exhibition Bahrain to make this project more successful. Firstly, management of human resources is very important part of this project. Thousands of workers and employees are involved in this project. The success of this project will largely depend upon effective strategy formulation and implementation. The organization must pay Greta amount of attention towards proper management of human resources. This will ensure that each task involved in the project is completed properly in much efficient manner. Secondly, financial management of the project is also very important. The organization should be able to evaluate costs involved in each activity of the project. Failure to manage the cost will attract more problems for the organization. The cost management is extremely vital to the success of the project. Thirdly, leadership is required to be robust. This project is not an ordinary project by any means. The project of such magnitude requires proper guidance. This can be done through great leadership. The leader of the project will determine its effectiveness. Lastly, support from Bahrain government is also necessary. This project is crucial to the entire country. It will open the doors to plethora of opportunities for Bahrain. It will not be wrong to state that Bahrain government needs to be fully supportive of this project. The reputation of the country will suffer immensely if anything goes wrong. This, it is the responsibility of the government to ensure complete support to Exhibition Bahrain with this project. 

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