Conferences and events take a detour

O NGOING geopolitical instability in the Middle East is exerting pressure on South Africa’s outbound conferences and events sector, forcing corporates and their travel management companies to reroute itineraries, rethink incentives and reassess risk in long-haul conferencing programmes. However, despite travel agents’ daunting task of liaising with airlines and rerouting clients, there is an upside – the re-emerging need for the advice, expertise and knowledge of experienced travel consultants rather than a ‘DIY’ approach. Additionally, there’s a gathering windfall for African destinations in the hosting of events. Maureen Masuku, Chairperson of the Global Business Travel Association South Africa (GBTASA), pointed out that the Middle East had been and remained a critical aviation hub linking South Africa to Europe, Asia and North America, with nearly half of Africa’s transit air traffic flowing through Gulf hubs. “Any disruption here directly affects the entire outbound travel system, not just travel to the Middle East,” she said. FCM Meetings & Events Business Leader South Africa, Lance Nkwe, told Travel News that “almost everything” booked through the Middle East had been rerouted, either via Europe or Asia. “For big groups, it’s meant serious coordination. For example, we’ve had upward of 300 travellers on one PNR. Reworking those itineraries means speaking to each and every traveller about their preferred routing, any transit visa requirements and other challenges. It’s the kind of work that needs senior consultants who know exactly what they’re doing,” he said. There is a cost element too. “Routing through the Middle East has been generally slightly cheaper – Europe and Asia have proven more expensive. But through our group negotiated rates, we were able to make some savings and using a dedicated, specialist groups team has made a real difference,” Nkwe said. Pressure Masuku agreed that widespread airspace closures and rerouting had increased operational pressure on agencies, with high volumes of rebookings, cancellations and itinerary redesigns adding to servicing costs and reputational risk. She added that airlines rerouting around conflict zones were increasing flight times, while rising fuel prices, insurance premiums and longer routes were contributing to airfare inflation and pricing volatility. Beyond cost and complexity, Nkwe highlighted a more structural change in incentive travel demand due to the conflict in the Middle East. “The bigger shift is that high- profile incentive programmes simply can’t happen in the region at the moment,” he said, pointing to cancelled flagship events such as the Bahrain and Saudi Arabian Grands Prix due to security concerns. “Customers who had built incentive trips around those events have had to pivot entirely,” Nkwe added. Similar trends have been observed by Tourvest Meetings & Events, where Team Leader of Sports & Incentives, Shelley Duffield, said the ongoing conflict had driven increased caution around transiting or hosting events in the region, with corporates prioritising perceived safety, air route stability and insurance certainty. “In the incentive space, we have had to reroute incentives already booked to alternative destinations. This has cost our clients in cancellation fees and they might be having smaller incentives this year. Even future tenders are asking for non-Middle Eastern carriers,” she said. Alternatives As rerouting intensifies, interest in Europe, Asia and South Africa is picking up. “Asia tends to be the first choice because it’s affordable, both the flights and as a destination. Europe is winning on the slightly scaled-down end, where clients keep the same budget but adjust the scope. And local interest has grown significantly, simply because the rand goes further at home,” Nkwe said. Nkwe added that FCM Meetings & Events was seeing real growth locally and in the region. “Namibia, Zanzibar and Mauritius are all benefiting. Domestically, venues like Sun City are getting more interest because they offer the scale and facilities big groups need, but South Africa offers an incredible choice across the board, all easily holding their own against international destinations.” Duffield identified Europe (Spain, Portugal and Greece), Asia (Thailand and Vietnam) and Africa (Mauritius and Rwanda) as destinations gaining momentum, due to strong value, reliable airlift, visa simplicity and proven MICE infrastructure. “South Africa and nearby SADC destinations are increasingly preferred as both fallback and intentional choices, driven by cost efficiency, ease of logistics and high-quality experiential offerings,” she added. Short haul The shift towards alternative destinations is heavily influenced by short vs long- haul preferences. Duffield also noted a noticeable shift toward short- to medium-haul trips, with long-haul reserved for top-tier incentives where the return on experience clearly justifies the complexity and cost. Nkwe said short-haul trips were largely unchanged. “The shift is in long-haul, where rerouting, cost and access have all forced rethinks. That’s where most of the planning conversations are happening right now.” Flexibility According to Nkwe, lead times have stayed broadly the same, but added that what has changed is how customers are thinking about flexibility at the point of booking. “Historically, consultants would offer flexible fare options and clients would default to the cheapest. Now they’re asking the right questions upfront: ‘Can I change this free?’ ‘Is the re-routing included?’ ‘What does a re-issue cost me?’. “Cancellation leeway and booking-class considerations are firmly part of the planning conversation in a way they weren’t before,” Nkwe said.