Profitable, always on the go, ambitious: IFEMA is out for more
Constant construction seems to be inspirational for Madrid's exhibition centre, and to the plans of the powers-that-be. They see themselves well on the way to becoming Europe’s top gun, their declared aim.
With a 42 % share, IFEMA is the undisputed frontrunner in the Spanish exhibition landscape. This year the company is looking to shoulder the biggest expansion surge in its history with a one-year investment plan worth 86.1million. 79.8million of this is earmarked for special projects under IFEMA's planned expansion in Madrid. Among other things, old abattoirs in the city centre are to be refurbished and developed. Moving forward, this setting will host the annual international art fair ARCO. The expo company has reserved another 54-hectare site in Madrid's Valdebebas suburb, where new exhibition halls with space of 250,000m2 are to be built. Alongside all this building work Madrid is developing into an exhibition magnet. In 2005 74% of all exhibitors and 61% of all professional visitors came from abroad or from the autonomous Spanish regions. For 2006 the Spaniards are budgeting sales of roughly 170.9million. This represents 10.9% growth versus the reference year 2004. Based on this, exhibition officials are reckoning on net earnings of 31.6million, up fully 18.2% on 2004. With this the Institución Ferial de Madrid is sending out clear signals in terms of competition at the European level, already warming up the engines in preparation for the major international thrust. Recently the exhibition makers developed an aspirational strategic four-point plan, scheduling 77% growth in the 2004 figures by 2010. Revenues of around 2.2billion and the creation of 50,000 jobs are slated. By 2010 the number of international exhibitors is projected to expand by 70% on 2004 and the number of visitors from abroad by 56%. The plan focuses on internationalisation. The main objective is to hold competitiveness stable and capture the top position as "the European leader in everything, most notably business management", IFEMA president Alvárez del Manzano says. Point two: to grow exhibition business. Point three: to improve service quality and, last but not least, to develop non-exhibition-specific business projects.IFEMA's success has a lot to do with its positive locational conditions. Twenty-six years ago Madrid, as the political, economic and geographic centre of Spain, did all it could to get the exhibition company on board. Although the capital lacked the necessary infrastructures, unlike Barcelona, Valencia or Bilbao, IFEMA was set up in 1980 under the terms of an agreement between the Madrid administrative district, Madrid municipal authority and the chamber of industry and commerce. Each of the three institutions holds a 31% stake and the savings bank Caja Madrid the remaining 7%. Initially the fair resided in the old exhibition palace in downtown Madrid. Work on construction of the present exhibition centre began in 1988; its inauguration took place in 1991. Eight exhibition halls were constructed on an area of roughly 100,000m2 in all. The rapid development in business led to the opening only eight years later, in 1999, of another two halls, bringing the exhibition grounds up to their present-day 150,000m2. But demand for exhibition premises escalated steadily, with the result that in July 2003 the board of governors approved a multi-year extension plan costing 115million. Halls 12 and 14 are currently under construction and scheduled for completion at the beginning of next year. They will bring another 50,000m2 exhibition area."The reason behind this rapid development lies in the synergy of various factors," director general Fermin Lucas explains. "From the outset IFEMA produced quality service." Lucas also stresses the exhibition company's "iron resolution" to support and take part in corporate promotion of all kinds. "We have launched a development programme for new products, something the exhibitors asked of us." Of the 81 fairs - 8% more than in 2004 - that IFEMA plans for 2006 40 are of an international nature. The jewels in the crown of international exhibitions are the tourism fair FITUR, the annual art fair ARCO and the giftware, jewellery and costume jewellery week.The aim is to attract foreign exhibitors, to internationalise the shows and to strengthen standing and importance abroad. IFEMA is the official patron and sponsor of the Tour of Spain, a sporting event followed by millions of television viewers in Europe, notably France, England, Italy and Portugal, the very countries in which the Madrilenos are working hard to strengthen and expand their internationalisation plans. Lucas continues: "So far we have worked intensively on the international sector, we have 13 offices all over the world and agreements with Argentina, the USA and China. Our intention is to grow further. We therefore plan to open more offices in Eastern Europe, North Africa and, in the long run, in South America." Bärbel Martens de Marina
m+a report Nr.2 / 2006 vom 24.03.2006
m+a report vom 24. März 2006