May 16, 2014 Welcome to AAICEC S. C.
May 16, 2014
Welcome to AAICEC S. C.
Introduction
●AAICEC share company is a state of the artconvention and exhibition center thatprovides world-class venues for businessevents and entertainment which createsgreat economic benefits to the businesscommunity and the country as a whole.
IntroductionIt
1. is a first in its kind in East Africa as a result of itssheer size and international standard.
2. is a public-private partnership venture pioneerwith Addis Ababa administration and A.A.Chamber of commerce working together as two ofthe initial major share holders.
3. has secured 11 hectares (over 110,000m2 ) of landin a prominent location.
4. its profitability has been substantiated by the wellknown Industrial Projects Service bureau (IPS).
Problem
• No easy way exists to access an international standard venuein Addis Ababa that is critical for the expansion of business,investment and export in Ethiopia.
• Currently, Ethiopia has no world-class convention andexhibition center to host major summits and internationallyrenowned events that can be crucial drivers of economic growthas well as strengthen local trade and intellectual engagement.(WTO)
• Ethiopia is missing from over a trillion dollars annual outputMICE industry.
Solution
• The development of one of the key urbaninfrastructures. That is a state of the art conventionand exhibition center called Addis-Africa InternationalConvention and Exhibition Center (AAICEC) sharecompany to:
Host nationally and internationally
renowned events
Be a focal point of business in Africa
Facilitate regional and international trade and
investment
Extend access to global markets for Ethiopian
firms
Increase publicity of Addis, Ethiopia and
Africa
Create revenue by multifaceted
integrated services
Market Validation
Regions No. of venues
Size of venues
(Million m2)
Shares (%) in
2011
No. Size 2006 2010 2011 2006 2010 2011
North America 359 370 389 7.1 7.7 7.9 32.50 24.09
Europe 465 477 496 14.3 16.2 15.6 41.44 47.56
Asia 127 143 163 3.9 4.6 5.8 13.62 17.68
Oceania 16 17 21 0.3 0.3 0.8 1.75 2.44
Middle East 32 33 33 0.6 0.9 0.9 2.76 2.74
Africa 25 24 25 0.5 0.5 0.5 2.09 1.52
Latin America 38 40 70 0.9 0.9 1.3 5.85 3.96
Total 1,062 1,104 1,197 27.6 31.1 32.8 100 100
Sources: The Global Exhibition Industry Statistics http//www.ufi.org;
Global trend in the number of exhibition centers and available spaces.
Market Validation
North
America, 12,500
South America,
1,200
Europe, 13,700
Asia and Pacific, 2,770
Middle East, 700 Africa, 500
Sources: The Global Exhibition Industry Statistics (2011) http//www.ufi.org;
No. of exhibitions
0
50
100
150
200
250
300
Number of Visitors in M
No. of Visitors in M
Market Validation
, 0.00%
Europe, 54.00%
Asia/Middle East, 18.20%
North America, 12.00%
Latin America, 10.00%
Africa, 3.30% Oceania, 2.50%
Source: ICCA Statistics Report: The International Association Meetings Market (2012)
Market Share per Region by Number of Meetings
U.S
.A.
Ger
man
y
Spai
n
Un
ited
Kin
gdo
m
Fran
ce
Ital
y
Bra
zil
Jap
an
Net
her
lan
ds
Ch
ina
Sou
th A
fric
a
Eth
iop
ia
833
649550
477469390360341315311
977
No. meetings
Top 10 Countries Ranking by Number of Meetings Organized
Market Validation
10,000
11,000
13,200
16,700
18,000
18,000
19,600
20,600
20,668
24,000
26,700
27,000
31,000
33,200
36,300
51,000
56,300
83,000
213,700
Namibia
Madagascar
Sudan
Zambia
Malawi
Ghana
Libya
Angola
Mozambique
Togo
Zimbabwe
Senegal
Morocco
Egypt
Tamzania
Nigeria
Algeria
Tunisia
South Africa
Source: The Global Exhibition Industry Statistics http//www.ufi.org;
African countries ranking in total indoor exhibition space (m2) 2011.
Market Validation
1.16T USD MICE industry annual global output (2011).
57 new venues and 3.4 million m2 additional exhibition space 2006-2011 globally.
The biggest expansion by emerging economies.
14% more trade fairs & 21% growth in exhibition space 2006-2012 in the Middle Ease.
15% more trade fairs & 33% growth in exhibition space 2006-2012 in Africa.
About 1/3 of exhibition spaces are in South Africa
Source: www.UFI.org
Market Validation
Source: Addis Ababa Exhibition Center
0
5
10
15
20
25
30
35
Local Exhibition International Exhibition
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
Number of visitors
Product
State of the art facilities
World class services
Competent & professional
staff
Modern health
facilities
Innovative business center
ProductFacilities to be built in phases
Exhibition Hall – 1
Exhibition Hall - 2 (50%)
Outdoor exhibition ground
Multi-purpose hall
Conference Center
Office
Shops
Cafe and restaurant
Amphitheater
Phase One
Exhibition Hall – 2 (50%)
Exhibition Hall – 3
Exhibition Hall – 4
Shops
Phase Two
Play ground
Plaza
Hotel
Phase Three
Business Model
Total investment capital - 1.9B
Yearly revenue at full capacity - 990m
Internal Rate of Return - 32.56%
Net Present Value at 10% discount rate - 2.758B
Payback period is 5 years after completion of construction
Net profit is 220M at completion of phase one, and 644M at the end of the project life.
That is a 51%-65% net profit as% of sales revenue.
Feasibility study done by IPS
CompetitionHotels providing conference venues
Venues for exhibition and entertainment
Competitive Advantage
1st to Market International Standard
Geographic location
Safety and Security
Design and BrandKey Diplomatic
Center
Thank you
Presented by: Meseret MamoD/G/Manager - MarketingMob 093 800 8872Tel 011 667 0082/011 667 [email protected]
Medihanialem Bldg. 6th floor, room No. 601
Visit us on WWW.AAICEC.com