International Conference and Exhibition Center Feasibility Study for Saudi Arabia's Business Tourism

International Conference and Exhibition Center Feasibility Study for Saudi Arabia's Business Tourism

Blog Article

Introduction

Saudi Arabia is undergoing a significant economic transformation under the banner of Vision 2030, diversifying from oil dependency toward sectors such as tourism, entertainment, and logistics. One particularly promising segment is business tourism, including Meetings, Incentives, Conferences, and Exhibitions (MICE). To position itself as a global hub for MICE activities, Saudi Arabia requires world-class infrastructure, especially purpose-built international conference and exhibition centers.

However, before embarking on such large-scale investments, conducting a detailed feasibility study is crucial. This ensures that development plans align with market demand, financial sustainability, and national strategic goals. In this context, feasibility study consultants play a vital role by providing the technical, financial, and operational assessments needed to guide investors, government bodies, and developers.

This article explores the feasibility of establishing an International Conference and Exhibition Center in Saudi Arabia and the indispensable role of feasibility study consultants in evaluating its success potential.

Business Tourism in Saudi Arabia: A Rising Sector

Business tourism is a fast-growing industry worldwide, valued in trillions of dollars, with demand driven by globalization, corporate networking, and professional development. For Saudi Arabia, business tourism represents a powerful tool to attract high-value visitors, increase non-oil revenue, and create job opportunities for its youth.

Major cities like Riyadh, Jeddah, Dammam, and Al Khobar are witnessing increasing demand for high-end conference and exhibition facilities. The success of events like the Future Investment Initiative (FII) and LEAP Tech Conference demonstrates Saudi Arabia's potential to host global-scale business events.

A well-planned International Conference and Exhibition Center (ICEC) can act as a catalyst for urban development, hospitality growth, and international recognition. But identifying the right location, sizing the facilities, and understanding market dynamics require specialized insights—precisely what feasibility study consultants provide.

The Role of Feasibility Study Consultants

Feasibility study consultants in Saudi Arabia provide data-driven evaluations that help determine whether proposed projects are viable. For a major development like an ICEC, consultants consider the following areas:

1. Market Feasibility
   
   
   
   
   
   • Demand analysis: projected number of events, exhibitors, delegates.
     
     
   
   
   • Competitive landscape: existing centers in the GCC and their capabilities.
     
     
   
   
   • Target audience: domestic vs international businesses.
     
     
   
   
   
   


2. Technical Feasibility
   
   
   
   
   
   • Site selection: accessibility, space, utilities, and zoning compliance.
     
     
   
   
   • Design considerations: scalable floor plans, modular exhibition halls, green building codes.
     
     
   
   
   • Technology integration: digital ticketing, virtual conferencing capabilities.
     
     
   
   
   
   


3. Financial Feasibility
   
   
   
   
   
   • Capital investment estimates: land, construction, equipment.
     
     
   
   
   • Operating cost forecasts: staffing, maintenance, utilities.
     
     
   
   
   • Revenue models: space rental, sponsorships, ticket sales, ancillary services.
     
     
   
   
   
   


4. Economic and Social Impact
   
   
   
   
   
   • Job creation, regional GDP contribution, and downstream benefits for hotels, transport, and restaurants.
     
     
   
   
   
   


5. Legal and Regulatory Compliance
   
   
   
   
   
   • Permitting, municipal regulations, environmental assessments, and alignment with Vision 2030 mandates.
     
     
   
   
   
   

Leading feasibility study consultants such as Deloitte, PwC, and local firms like MBS Consulting are actively working in the Kingdom, offering localized expertise and global benchmarking tools.

Site Selection and Infrastructure Considerations

Choosing the right location is among the most critical components of the feasibility study. Feasibility study consultants assess cities based on:

• Connectivity: Proximity to international airports and major highways.


• Existing Hospitality Infrastructure: Availability of 4- and 5-star hotels.


• Government Support: Incentives, land grants, and fast-track approvals.


• Complementary Industries: Tech parks, universities, and corporate offices that could generate event demand.

For example, Riyadh offers strategic advantages due to its position as the political and economic capital, whereas Jeddah boasts better international connectivity and appeal for both leisure and business travelers.

A detailed feasibility study would outline multiple site options, compare their viability, and recommend the most suitable one based on long-term return on investment.

Demand Forecasting and Event Potential

Feasibility study consultants use a combination of historical data, market trends, and forecasting models to estimate potential demand. Key metrics include:

• Annual number of events (conferences, exhibitions, conventions).


• Average attendance per event.


• Peak season trends and international participation rates.


• Industry verticals most likely to hold events (e.g., energy, technology, healthcare, education).

Saudi Arabia's rising international profile and strong government-to-business (G2B) ties mean a well-designed ICEC could attract both regional and global events. High-profile exhibitions, summits, and business expos could become annual fixtures, boosting year-round occupancy.

Financial Viability and Investment Analysis

The capital investment required for a large-scale ICEC can range from hundreds of millions to over a billion SAR. Therefore, financial feasibility analysis becomes a cornerstone of the study. Consultants calculate:

• Construction and land acquisition costs.


• Annual revenue from event bookings, sponsorships, and additional services.


• EBITDA and break-even timelines.


• Public-private partnership (PPP) models and funding sources.

To ensure profitability, feasibility study consultants may also recommend mixed-use components like integrated hotels, office towers, or retail zones within or adjacent to the ICEC, creating a sustainable ecosystem for revenue generation.

Environmental and Sustainability Factors

With Saudi Arabia’s commitment to sustainable development under the Saudi Green Initiative, environmental factors must be considered in any new construction. Feasibility study consultants evaluate:

• Energy-efficient designs and LEED certification potential.


• Waste and water management systems.


• Smart building technologies to reduce operational costs.


• Urban mobility integration (e.g., metro, electric buses).

Incorporating these elements not only helps meet regulatory standards but also enhances the project’s appeal to international stakeholders.

Policy Alignment and Strategic Fit

Government alignment is crucial for any major development. Feasibility study consultants examine how the project fits into national priorities:

• Vision 2030’s goals for tourism and economic diversification.


• Saudi Exhibition & Convention Bureau strategies.


• Regional development plans like NEOM, The Red Sea Project, or King Salman Park.

Such alignment ensures that the project can benefit from government incentives, international promotion, and policy support.

The development of an International Conference and Exhibition Center represents a transformative opportunity for Saudi Arabia to elevate its global business tourism profile. However, to ensure success, such a project must be built on solid research, planning, and financial modeling.

This is where feasibility study consultants prove indispensable. By offering comprehensive assessments—covering technical, market, financial, legal, and environmental aspects—these consultants help mitigate risks and maximize returns for both public and private sector stakeholders.

As Saudi Arabia accelerates its journey toward becoming a regional powerhouse for business events, investing in thorough feasibility studies is not just wise—it is essential for sustainable success.

References:

Feasibility Analysis of Drone Delivery Services for Saudi Arabia's E-commerce and Healthcare Sectors

Marine Aquaculture Feasibility Study for Sustainable Seafood Production in Saudi Arabia's Coastal Waters

Feasibility Assessment of Modular Housing Solutions for Saudi Arabia's Urban Development Projects

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