A pre-Christmas survey of the Russian MICE sector has revealed cautious optimism for this market.

"The aiGroup are the organisers of the Moscow International MICE Forum on March 17^th and as so many of our Participants travel a long way to Moscow we felt that it was our duty to make a survey of the market to establish the prospects for the coming year" Kim Waddoup - organiser of the Moscow International MICE Forum

Russia has been affected by the global downturn with a substantial loss on the country's stock exchange but, as an emerging market, businesses in general are confident that it will be a relatively short situation that will improve within the next months.

The brief survey was carried out through a representative cross-section of the Russian MICE sector. The results indicate that whilst some down-grading or reduced budgets may happen, the market is destined to continue and will again recording growth within the year.

The general consensus amongst Corporate Buyers indicated that the number of delegates travelling on Incentives and Conventions may actually grow as Russian companies realise the importance of International trade contact and as incentives are offered to staff to improve sales in this competitive environment.

41% believe that the crisis in Russia will be over within 6 months

33% believe that the crisis in Russia will take up to a year

26% believe that the crisis in Russia will take more than 1 year

35% indicated that MICE budgets will continue as they are

47% indicated that they expect MICE budgets to be reduced by 15%

18% indicated that they expect MICE budgets will be reduced by more than 25%

57% Corporate Buyers indicated that the number of delegates travelling in 09 will increase

43% Corporate Buyers indicated that the number of delegates travelling in 09 will decrease

45% Corporate Buyers indicated that the value of MICE travel in 09 will remain the same

55% Corporate Buyers indicated that the value of MICE travel in 09 will be reduced

As a developing country most of Russia is not burdened with excessive debt. Whilst some large companies have difficult situations, most Russian middle and medium-large organisations are well capitalised and secure. Cost cutting is being carried out and efficiency being carefully scrutinised for the first time. The fall in value of the Rouble will affect imported goods but Russian industry has improved greatly in the last years and the domestic market continues to grow.

Conclusion: Yes the market will be affected, some high profile events will be downsized but the importance on sales productivity is highly recognised by Russian management. MICE suppliers should look towards creative ideas as opposed to the availability of high budgets for previous spectacular events. The Russian MICE sector is cautiously optimistic and the number of participants booked for the Moscow International MICE Forum is higher than previous years.