Istanbul, for so long tagged with the cliché of being the physical and political bridge between Europe and Asia, is now using its location as a major geographical centre for the exhibition industry. Domenic Donatantonio reports.
Turkey is in the midst of an economic boom, standing in stark contrast to most of its European and Middle Eastern neighbours. In a recent address, president Abdullah Gül said the economy had 8.2 per cent GDP growth in 2010 due to strong exports.
The annual UFI Global CEO Forum at the Pera Palace Hotel in Istanbul on 1-3 February this year, while last year saw the arrival of a new event, Expo Summit Turkey, organised by Manch Communications.
Istanbul is Turkey’s largest city, ahead of the nation’s capital Ankara, and has nearly a fifth of the country’s population with 13 million inhabitants.
According to UFI board member and GM at organiser HKF Trade Fairs, Bekir Çakici, around half of all Turkish exhibitions are held there.
“Even if a sector doesn’t exist in Istanbul, like cattle breeding, still people prefer that the cattle breeding fair is organised in Istanbul,” he said.
“Or, for example a lot of the food processing companies are outside of Istanbul, but fairs about food and food processing technologies are organised in Istanbul.”
Tarsus, a UK-based organiser, has already made a splash in the Turkish exhibition arena in recent years. Last May, the firm agreed a deal to buy a 75 per cent stake in Istanbul-based IFO, one of the largest independent exhibition businesses in the country. The US$15.6m cash deal is part of Tarsus’ expansion strategy to generate 50 per cent of total revenues from emerging markets by 2013.
Group MD Doug Emslie said economic conditions have improved hugely in the country in recent years. “Back when we first looked at the Turkish market in 1998, inflation was 80 per cent,” he said. “In 2002 they passed key economic reforms that helped make the economy a lot more stable. As a result, inflation is now only six per cent. The infrastructure has improved hugely, in terms of airports, roads and hotels.”
ITE Turkey spokeswoman Burcu Yilgor says Istanbul offers a route into one of the fastest growing economies in the world. “Istanbul is the heart of Turkey’s trade.”
“Its widespread economic reforms, increase in foreign direct investment, ongoing changeover to privatisation and growing infrastructure has created a rich environment for business opportunity.” She names agriculture, textiles, automotive, construction and tourism as the main sectors for exhibitions in Istanbul.
To tap into the construction market, CNR Expo has teamed up with the Association of Turkish Building Materials Producers and had discussions with the European and International Federation of Natural Stone Industries for the upcoming Megabuild exhibition in September.
“The Turkish building materials industry is in the global top five with a $70bn production volume and 11.5 per cent growth rate,” said CNR Expo’s executive vice president Ali Bulut.
“The industry’s exports reached $19bn in 2010 but lacked an international exhibition to serve their needs.”
European influx
Hannover-Messe International Istanbul is the Turkish offshoot of the German organiser and venue and is now one of the largest international organisers in Istanbul. General manager Alexander Kühnel says there is now an influx of European exhibitors.
“The exhibition organisers are targeting more international visitors, especially from the Middle East and Africa.”
A youthful city
Kühnel believes one of the striking features of Turkey is its young population. “This booming economy boasts a broad industrial and services base and produces consistently high growth rates,” he said.
And it’s still affordable. Emslie says floor space in Istanbul is around 40 per cent of, for example, UK prices at €100 (US$134) per square metre. But due to the demand in the city, prices are creeping up to €150 in Istanbul.
“Istanbul is just three and a half hours away from western Europe by air,” said Emslie. “It has a more commercial attitude and greater stability. I would urge EW readers to head there. It’s an exciting, cultural and very young city.”
It appears our readers are already taking note.
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➤ CURRENCY
Turkish lira: TL100 = $53.2
US$100 = TL188
➤ POLITICS
Abdullah Gül is president, while Recep Tayyip Erdoğan is prime minister. Interestingly Erdoğan served as Mayor of Istanbul from 1994 to 1998.
➤ FOUR-STAR HOTEL RATES
TL100-TL240
➤ AIRPORT TAXI TO THE CITY
Around TL30
➤ AVERAGE PRICE OF A BURGER
Big Mac Meal TL10.50
➤ DID YOU KNOW?
1. Istanbul is a cosmopolitan city built on two continents, Europe and Asia.
The most recent population census shows that it has a population of about 12 million people, of which almost 65 per cent are inhabitants on the Asian side.
2. Agatha Christie’s 1934 novel Murder on the Orient Express was written in the Pera Palace Hotel in Istanbul, Turkey.
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via.