Retailers looking for family entertainment options to round out their product offering and tempt consumers away from shopping on their handheld devices can expect to find plenty of options at a Dubai exhibition this week. In the coming years, Family Entertainment Centres (FEC) will play a vital role in supporting the retail sector in the region, says the head of International Expo Consults (IEC), which organises Deal 2013, the Dubai Entertainment Amusement and Leisure Show, the largest event of its kind for the theme parks and amusement industry in the Middle East. “The surge in earnings is due to the influx of tourists from other regions and also the volatility in other markets,” says Abdul Rahman Falaknaz, Chairman, IEC.
Annual expo
Deal 2013 is the region’s annual focal point for all stakeholders in the amusement and related industries looking for a successful entry or greater growth in the region. The event kicks off today at the The Arena, Dubai World Trade Centre, and runs until Thursday. This year, more than 250 exhibitors from across 33 countries will participate in the show, which is expected to attract more than 7,000 trade visitors from around the world.
Last year, exhibitors signed contracts worth more than Dh800 million. The 2012 show generated a record number of exhibitors and visitors and saw the participation of industry leaders such as Amusement Services International (ASI), Warehouse of Games, Zamperla, Moser Rides, PRO-FAB, Brunswick, EOS Rides, Polin Waterparks and Pool Systems and Rainbow Productions.
Even before it opens, the show is already a success. “We are delighted to mention that the show is sold out already,” says Falaknaz. “In its 19th edition, Deal is the only platform in the Middle East for exhibitors in these industries to connect with buyers, for buyers to see and test the latest products and services, and for professionals to share best practice and make new contacts. We are aiming to propel the region’s theme parks industry through this show, thereby enabling the exhibitors and consumers to capture the potential this billion-dollar industry presents.”
Falaknaz says there’s plenty for visitors to do: attend dedicated seminars, see technology at its innovative best, network with industry peers, and develop profitable business relationships. “For an exhibitor, this is the best opportunity of the year to showcase their quality equipment and services to thousands of potential buyers at a single venue,” he adds.
Leisure zone
Retailers will benefit from the array of options on offer, as FECs see leisure facilities continue to bring in visitors where traditional retailers are struggling to compete. This is already a widely reported international trend. Squeezed by falling consumer spending and rising internet sales, retailers are rethinking how they build their businesses and how retail areas can benefit. In January, HMV, an iconic chain of record stores, became the latest of several famous retailers to enter administration.
“Leisure, in general, is an important component of malls: it brings families and their kids together. The trend is towards new-age retail entertainment where a large retail entity supports an entertainment zone that includes not just rides but cinemas, food and beverages among other forms of entertainment. Being in the Middle East and due to the climate, we cannot have outdoor theme parks throughout the year. We have to create facilities indoors for a 365-day approach so that people can enjoy the facilities throughout the year, regardless of the weather,” Falaknaz says.
FECs are key service anchors that support the many retail developments within the Middle East, adds Sharif Rahman, CEO, IEC. “This year looks promising for our industry as most amusement operations have registered a growth in revenue and footfall year-on-year. Today, consumers can make their retail purchases from their smart devices. However, the key differentiator that drives people to the brick-and-mortar retail stores is not just products but also the other leisure and entertainment facilities within a mall,” he says. “Some of the malls with the FECs have recorded a substantial increase in earnings in the past few months. Without them, the whole retail puzzle is largely incomplete.”
He notes that while children between two and twelve years are the biggest spenders on the entertainment segment, retailers must pay attention to a rising new category of big spenders.
“The past couple of years have seen a strong emergence of the market between the ages of 14 and 21,” he says. “Industry experts opine that indoor entertainment is the best performing segment in the amusement parks market. You can go to an outdoor theme park about twice a year,” says Rahman. But people are more likely to go to the mall every week and, therefore, visit the indoor theme park, he says.
This year, FECs will perform even better due to the change in the climate and the forthcoming vacation season, adds Rahman. Additionally, with several new projects coming up in Saudi Arabia, Qatar and Oman, the region is set to witness a remarkable growth in the entertainment sector in the future, he says.
Optimistic outlook
Exhibitors at the show are also extremely positive about their prospects. “In 2001, we started with a small stand at Deal. This year, we have one of the largest stands spread over 350 square metres,” says Nabil Kassim, General Manager, Warehouse of Games. “This is the only show that matters to us as a Middle East-based company, being in a region that is one of the best markets. Over the years, the event has grown and today attracts visitors from all over the Middle East, North Africa, India and some former Commonwealth of Independent States countries. This has tremendously helped our growth and increased sales.”
— With inputs from the GN Focus team
