An Interview With Bernard Walsh

Bernard Walsh is the Managing Director of dmg World Media Dubai Limited.

dmg World Media Dubai Limited is part of the giant dmg World Media group, one of the world's leading trade show companies with over 400 events worldwide annually. Since establishing in Dubai five years ago, the company now owns and operates four highly successful trade events, including the Big 5, the Index interiors exhibition, The Hotel Show, the trade event for suppliers to the hospitality industry and The Office Exhibition for the office and facilities management sector.

Plumbing-info.com: Would you please provide our audience with a brief history of dmg Index?

Bernard Walsh: Dubai-based dmg Index Exhibitions Ltd, recently re-named dmg world media Dubai Ltd, is part of the giant dmg world media group, one of the world's leading trade show organisers with over 400 events worldwide annually. Since establishing in Dubai five years ago, the company now owns and operates four highly successful trade events, including Index - the International Furniture & Interior Design Exhibition, the Big 5 construction and contracting exhibition, the Hotel Show, the trade event for suppliers to the hospitality industry, and the Office Exhibition for the office and facility management sector.

dmg world media Dubai Ltd acquired The Big 5, one of the oldest and most established trade events in the region, in 1998.

Plumbing-info.com: What are your views about the role of the Big 5 show in the Middle East market?

Bernard Walsh: The Big 5 exhibition plays an extremely important role in the Middle East market, serving as it does the vital construction and contracting industry throughout the GCC and beyond. It offers local suppliers and overseas manufacturers who are already established in this market, an opportunity to meet their clients, to expand their representation, to explore new markets, to bid for contracts, to meet potential new clients, and to keep up-to-date with the construction market in the Gulf. It also offers overseas manufacturers and suppliers - especially small and medium companies - who are not yet exporting to the Middle East countries, an opportunity to explore these markets, to meet with buyers and specifiers, and to establish a presence in one of the most buoyant regions in the world. Finally, for architects and designers, for contractors, agents, distributors and buyers in the Middle East, the Big 5 is the important annual meeting place, the best opportunity to keep up-to-date with the latest technical developments and innovations in a fast-changing industry, to meet with established and new manufacturers and suppliers, and to specify for new and ongoing projects.

Plumbing-info.com: Please tell us the importance of Trade Shows as a whole?

Bernard Walsh: Even in this age of e-trade and the Internet, there is still no substitute for meeting manufacturers and suppliers face-to-face, to see products and systems at close quarters. Especially in the Middle East markets, the importance of individual, face-to-face business dealings cannot be overstated. Trade shows give visitors an opportunity to keep up-to-date with their industry, and exhibitors a first-hand chance to meet with the decision-makers in their target market.
As far as Dubai and the United Arab Emirates is concerned, as a regional and global hub for trade and commerce, the presence of many important trade shows across a wide variety of industries, provides a boost to commerce and import/export activities, as well as to the hospitality industry since trade shows bring tens of thousands of exhibitors and visitors into the market.

Plumbing-info.com: Do Trade Shows really attract buyers?

Bernard Walsh: Quality Trade Shows such as the Big 5 attract all the important decision makers in the industry. Each year, business dealings worth millions of dollars are conducted during the show, while the post-show business is impossible to gauge. Many exhibitors tell us that their participation in the exhibition is responsible for a substantial part of their annual turnover.

Plumbing-info.com: Do you think Trade Shows contribute towards closing sales?

Bernard Walsh: Considering the importance of face-to-face contacts between suppliers and buyers, trade shows contribute hugely to closing sales. Many exhibitors do not just come to the Emirates for the duration of the exhibition, but stay on for a number of days or even weeks to follow up on leads obtained during the event and to meet and conclude business deals with buyers and specifiers they first made contact with at the exhibition.

Plumbing-info.com: Is there any increase in the exhibitors and visitors compared to last year's Big 5?

Bernard Walsh: Visitor attendance at the Big 5 2002 was 25,146, compared to 21,223 in 2001. This represents an increase of 18%. The regional analysis of visitors is summarised in the table below:-

	2000	2001	2002
Dubai	8,515	9,720	10,314
Abu Dhabi	1,951	2,231	2,715
Other Emirates	3,507	3,607	3,777
	--------	--------	--------
UAE	13,973	15,558	16,806
Saudi Arabia	1,270	1,715	1,680
Kuwait	384	477	731
Bahrain	337	398	432
Qatar	489	471	515
Oman	642	744	689
	--------	--------	--------
GCC TOTAL	17,095	19,363	20,853
Other Arab Countries	809	753	1,170
India and Pakistan	532	324	608
Iran	170	186	791
Europe	1,003	308	764
Other Countries	542	229	900
	--------	--------	--------
Registered visitors	20,151	21,163	25,086
VIPs (estimate)	9	60	60
	----------	----------	----------
	20,160	21,223	25,146
	======	======	======

There were 1,044 (2001: 902) stands at BIG 5 2002 exhibiting the products and services of 1,701 (2001: 1,460) companies. These companies came from 49 (2001: 46) countries and included 22 (2001: 19) national and regional groups

Plumbing-info.com: What is the motive behind adding one more sector (Marble & Machinery) to the Big 5 show?

Bernard Walsh: One of the Big 5 sectors that has experienced massive growth this year, is the Marble & Machinery sector. Construction activity in the UAE, now running at around 15 billion dirhams per annum, is currently characterised by large-scale projects, which favour marble and granite against cheaper alternatives. These products are mostly dependent on imports, reaching 325.4 million dirhams in 1999 (the latest year for which statistics are available), of which 8.1 million was re-exported, leaving a net internal demand of 317.3 million dirhams for the year. The sector obviously required special attention at the major trade show for the industry in the region.

Demand for marble and granite products has been growing at around 6% per annum. Demand for flooring stone in the UAE is the highest in the entire region, higher than Saudi Arabia and Kuwait. This can only be attributed to the higher level of construction activity in the country, both in quantitative and qualitative terms.

Plumbing-info.com: How is dmg different from other organisers?

Bernard Walsh: Rather than comparing ourselves with other organising companies, we at dmg world media Dubai Ltd pride ourselves on the services we provide to our exhibitors and visitors. Working through our global network of agents and representatives, we aim to assist exhibitors in whichever way we can to make their participation in our shows successful and profitable. This assistance starts from first contact with market information etc, continues throughout the period before the exhibition, culminates during the show and continues after the event if required.

In close co-operation with the venue operators, we provide an attractive and efficient environment for companies to do business in. Our close contact with exhibiting companies before, during and after the event, as well as structured feedback from exhibitors as well as visitors, allows us to continually improve our service to both audiences. A recent example was the change in opening times for the Big 5 on the first day of the exhibition, when we introduced continuous opening times rather than the split sessions of the next four days. This allowed especially our visitors from abroad to spend a full day at the show without a break, and our first-day attendance figures confirm this was the right way to go.

Plumbing-info.com: How do you increase the size of your market? How do you expand your market reach?

Bernard Walsh: Our sales effort is structured around our global network of agents and representatives. Many governments and export agencies around the world recognise the importance of our exhibitions for their local manufacturers and suppliers, and organise National Pavilions. The Big 5 2002 for instance featured no less than 22 such Pavilions from all over the world, compared to 19 the previous year.

As far as our attendance is concerned, we make strenuous efforts to promote the exhibition to as wide a professional audience as possible: through direct mail campaigns, above the line advertising in our target markets, and public relations and press campaigns.

Plumbing-info.com: What is the role of dmg world media Dubai vis-à-vis the construction industry in the Middle East?

Bernard Walsh: dmg world media Dubai Ltd operate four exhibitions in Dubai, all successfully aimed at the wider Middle East region, and all related to the construction and contracting industry: they cover the construction sector, the interior design sector, and the hotel and office niche markets. As such, our trade shows provide an important service to the industry.

Plumbing-info.com: Do you conduct any surveys or studies?

Bernard Walsh: Apart from ongoing contacts and feedback with exhibitors, we also conduct a formal questionnaire with our exhibitors at the show, providing us with feedback about the organisation, promotion and efficiency of the exhibition in helping exhibitors to achieve their targets. This information informs our decision-making in organising future exhibitions.

Plumbing-info.com: What important trends do you see in the Trade Shows industry?

Bernard Walsh: Trade Shows will continue to be one of the mainstays of international commerce. In the case of the Middle East, as markets and industries mature, so will the trade show sector. In our case, for instance, alongside the major general Big 5 and Index exhibitions, we now also organise niche events specifically targeted towards to the Office and Hotel sectors, two important developing commercial sectors. The same will probably happen in other industrial and commercial niche markets.

Plumbing-info.com: Where do you see the dmg / the Big 5 show after 5 years?

Bernard Walsh: dmg world media Dubai Ltd will continue to provide an efficient and proactive service to the construction sector in the region. At present, our only limitation is the actual size of the exhibition venue: both Index and the Big 5 occupy all available space at the DIEC. As the venue grows, we will have an opportunity to further expand our exhibitions.

Plumbing-info.com: What do you see as Dubai's role as a hub in the Middle East?

Bernard Walsh: Thanks to the enlightened strategic policies of the Rulers and the government of Dubai, the Emirate has become the main commercial and import/export hub for the wider Middle East region, the Indian sub-continent, Iran, the CIS Republics, North and East Africa.

For example, approximately 59% of registered visitors at the Big 5 2002 came from outside the Dubai Emirate. Visitors from the GCC states increased by 6% in 2002 (up to 4,047 in 2002 compared to 3,805 in 2001). The number of visitors from Iran increased from 186 in 2001 to 791 in 2002.

Plumbing-info.com: What do you see as the future of Dubai's construction sector?

Bernard Walsh: The GCC spend on construction and building services has increased from US$ 33.7 billion in 1998 to US$ 40.5 billion in 2000 and it is expected to be in the region of US$ 45 billion in 2001. In the GCC, construction covers all the major sectors - oil and gas projects, tourism, housing, offices and shopping centres. Oil revenues in the GCC went up from about US$ 72 billion in 1998 to a current level of about US$ 125 billions per annum. This has provided the stimulus for the growth in the construction sector in the Gulf region.

The value of the construction sector spending increased by nearly 17% between 1999 and 2000. This rate of growth is expected to continue in 2001 and 2002. Saudi Arabia and the United Arab Emirates together make up almost 80% of the total construction market. UAE construction spend is expected to increase significantly as a result of the major projects, now under way to develop the infrastructure required for the rapid expansion of the tourist sector (tourist numbers in the Dubai Emirate alone are planned to increase from a current level of 3.5 millions to 15 millions per annum by 2010).

We expect the market to remain buoyant in view of the following factors:

The high oil price and the continuing construction boom in the Gulf region. Real GDP growth in the GCC states is expected to be 3% to 4% up to 2004.

The Gulf population has grown from 46 millions in 1970 to 100 millions in 1990 and is expected to increase to over 170 millions by 2010, one of the fastest growth rates in the world. The high purchasing power per head and the increasing sophistication of the Gulf markets will ensure a high and increasing demand for housing. Approximately 60% of the Gulf population is under 25 years old. This will result in the establishment of several hundred thousand new households in the coming decade. In Saudi Arabia, alone, 158,000 new houses are required annually.

Leisure developments totalling US$10 billion are under way or planned in the Gulf States in the next decade in response to the high level of internal and external tourism in the region. In Dubai alone, the number of Hotels has increased from 233 in 1996 to 265 in 2000, with rooms increasing from 13,000 to over 20,000 in this period. The current plans call for an increase of 150 new hotels in the next 5-7 years with hotel rooms increasing to 55,000. This is consistent with the plan to increase visitor traffic through the Airport from 13.5 millions in 2001 to 30 millions by 2010, with half this number being tourists.

Major new projects in Dubai now underway include a third terminal at the Airport (US$2.5 billion), the Palm Island Project (US$3 billion), the development of the Dubai Marina complex (US$1.6 billion), the new Festival City (US$1.6 billion). Internet City and Media City are both in Phase III and the new Convention Centre at the Dubai International Exhibition Centre will be completed in 2003. The Dubai International Finance Centre (DIFC) has recently been announced. This project will involve the construction of 13 towers.

There are now over 100 shopping malls in the Gulf region. Recent developments have included Sharjah City Centre (US$30 millions), the Al Ain Mall (US$70 millions), the Marina Mall (US$70 millions) and Abu Dhabi Mall (US$136 millions) in Abu Dhabi, the Bahrain Mall and Al Dana Mall in Bahrain and the US$150 million extension to the Doha City Centre in Qatar. Estimates indicate that the Gulf states all plan to increase the gross leaseable area per head, with Dubai planning an increase from 7 square foot to 30 square foot per head by 2007.

This is a remote interview conducted by Plumbing-info.com over e-mail

For more information on dmg World Media Dubai Ltd., please visit their website at http://www.dmgindex.com

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