MPI Projects Industry Growth for 2006

Staff -- Tradeshow Week, 2/13/2006

The global meetings industry is expected to grow for a third consecutive year, according to FutureWatch, an annual research report from Meeting Professionals Intl. and American Express. Several key indicators are forecast to rise, including the number of meetings planned and expenditures per event.

"All FutureWatch 2006 respondents expect to have more frequent, longer and larger meetings this year, suggesting that organizations are increasingly recognizing the value of meetings as strategic business tools that can achieve business goals," said MPI President and CEO Colin Rorrie Jr.

However, he added, "from what we've seen, cautious optimism seems to be the theme in 2006. While key indicators point to growth and increased meetings spend, concerns about the economy and rising oil and travel costs loom."

Corporate, association, government and non-profit planners projected the number of meetings planned by their groups would grow by 7 percent, expenditures by 7 percent and that they would get a larger share of their organizations' budgets.

Independent and third-party planners, destination management companies and association management companies forecast a 21-percent increase in the number of meetings and a 14-percent rise in expenditures over 2005.

Suppliers predicted a 9-percent increase in expenditures per meeting in 2006.

The report also said expected changes in lead times, hotel rates and attrition, and price concessions suggested that the demand for meeting space and accommodations could outpace supply in 2006. In addition, respondents' discussions within their organizations focused more on cost savings and efficiency than on ROI.

In its fourth year, FutureWatch is a compilation of data collected via an online survey of 1,268 meeting professionals worldwide by the Dallas-based independent firm Syndics Research.