Caspian World, Kazakhstan
July 17 2004
Expo-Industry in Post-soviet Area
How did the collapse of the USSR influence the CIS countries?
Collapse of the Soviet Union out an end to the monopoly of state in
holding of international and national exhibitions. Since then the
exhibition structure started to develop in CIS countries. How long
were the former Soviet republic waiting in vain since 1990th, and
what did they achieve for the last decade? «ExpoToday» interviewed
the directors of leading companies – organizers of the exhibition in
four CIS countries: Armenia, Kazakhstan, Uzbekistan and Azerbaijan.
Before and after
During the Soviets all rare exhibition held beyond Moscow and
Saint-Petersburg were arranged in local VDNKhs (Soviet Exhibition of
National Achievements) and were actually the exhibition of the
national achievements, says Nigora Khasanova, Director of
«Itesa-Osiyo/UEF» in Kazakhstan.
«I remember only one exhibition – a bright event (in Kazakhstan),
which was arranged 17-18 years ago. This exhibition was «Electronics
in USA»,- she continues. In Azerbaijan, besides VDNKh, several food
and oil and gas exhibition were held by «Expocenter», again together
with Chamber of Commerce and Industry (CCI), adds Farid Mamedov,
Director of «Iteca Caspian» (Azerbaijan). «However, there were ones
arranged by individual companies», – he adds.
The collapse of the Soviet Union differently affected the development
of expo-industry of the former Soviet Republics as well as their
economy in general. Some of them, for example Armenia and Azerbaijan,
have been busy settling the international conflicts. Others were
dealing with formation of new economic relations.
Expo-industry of Uzbekistan «very soon joined the exhibition
business. It happened independently as well as with the appearance of
foreign exhibition companies, – Khasanova says. – International
exhibition companies immediately showed their interest to a new
market ». Independent profile exhibition held in country, e.g.
«Health Care Exhibition», held by ITE Group Plc (Great Britain) since
1995, «Tashkent Tourism Fair », held for the 10th time this year, and
of course different local trade exhibitions-fair, held by the Chamber
of Manufacturers of Uzbekistan.
The path of exhibition business was more arduous in Armenia and
Azerbaijan. «The first stage was a difficult period of establishment,
which was accompanied by liberation war in Nagorno-Karabakh, and the
second stage was a stable after-war period », – said the Export
Development director of Armenian Development Agency (ÀÀÐ) Musheg
Sargsyan.
As per Mamedov’s words, exhibition industry of Azerbaijan has been
stagnating within the first three years after the country obtained
independence. Since 1991 through 1994 in Azerbaijan there were only
annual national exhibition of Iran, Turkey, and OAE. However in 1994
in Azerbaijan there was the 1st International Oil Exhibition
dedicated to the signing of the main contract in the history of
Caspian oil fields development. The exhibition was organized by
«Spearhead Exhibitions» (Great Britain) and CCI of Azerbaijan. One
year later ITE Group Plc company arranged Azerbaijan International
Trade Fair (AITF). «Due to wide network of partners all over the
world, ITE Group Plc could attract many foreign companies to
Azerbaijan», – added Mamedov.
Today
Azerbaijan
Besides ITE, today’s main players at the Azerbaijan market are
«Caspian Events» and «Iteca Caspian», exclusive partner of ITE in the
Caucasus. It has arranged 8 exhibitions in Baku. Local companies are
working in other market segments and hold inexpensive local
exhibition. This year «Iteca Caspian» will also arrange 5 specialized
exhibition and conferences in Georgia. First of them dedicated to the
Telecommunications and Information Technologies, «GeorgiaTel 2004»,
has been held in Tbilisi in April of this year.
Central Asia
As per the words of Executive Director of ITECA Yuriy Borodikhin,
Kazakhstan is the most developed region in Central Asia. «Here we
hold about 40 exhibitions and conference a year. Some of them present
50-60% Kazakh companies. Double taxation between Russia and
Kazakhstan complicates the situation, so that Russian companies have
to pay double VAT», he says. In Kyrgyz Republic ITECA has been
working since 2003. Besides slow pace of economic development, the
growth of expo-industry is limited due to absence of modern
exhibition areas. «Exhibitions are held in Palaces of Sport, not
adjusted for these purposes», – says Borodikhin. Company stopped its
activity in Turkmenistan in 1999 due to political reasons.
Main organizers of exhibition in Uzbekistan today is Republican Trade
and Exhibition Center «Uzepocenter» under the Agency of Foreign
Economic Relations of the Republic of Uzbekistan, International
Exhibition company ITE Group Plc (Great Britain), Itesa-Osiyo
(Uzbekistan) and UEF company (Uzbekistan).
The local exhibitions are arranged by the Chamber of Manufacturers
and Businessmen of Uzbekistan and Trade Exhibition Center
«Uzkurgazmasavdo». The main foreign organizer in Uzbek market is also
ITE Group Plc, which holds 10 exhibitions a year, American TNT (1
exhibition a year), Italian InterExpo (2 exhibitions a year) and
Russian Polros (1 exhibition a year). Itesa-Osiyo company,
established in 2001, is an exclusive partner of ITE Group Plc. This
year ITE Group Plc opened new foreign exhibition entity -UEF, acting
as organizers and constructor of exhibition.
«We started from 4 projects, this year planning to hold 10
exhibitions, all in Tashkent. In 2005 we are planning to hold 15
exhibition», – says Khasanova from Itesa-Osiyo/UEF. This October
together with ITE Group Plc its company will held exhibition in
«Tajikistan Infrastructure» in Dushanbe.
Armenia
As per Sargsyan, besides ÀÀÐ (Armenian Development Agency), founded
in 1998 under the Resolution of Armenian President, the main players
at the Armenia market are Chamber of Commerce and Industry and
«Expocenter CCI», «Exposervice», «Erexpo», ÌÈÒÑ of Armenia. Artists’
Union, Jewelers Union and Agro-Business Center are also arranging
specialized exhibitions. There are no foreign players in Armenian
market, foreign embassies play their roles attracting Armenian
organizers. In 2001 ÀÀÐ organized exhibition of Armenian products
«Made in Armenia» in Yerevan, Los-Angeles, Tokio, and in 2002 – in
Los-Angeles, Moscow and Tehran. Besides that, ÀÀÐ presented Armenian
products and manufacturers at the Jubilee exhibition, dedicated to
the 10th anniversary of CIS in VVTs (Russian Exhibition Center) in
Moscow, at the 36th Egyptian International Fair, Kiev exhibition of
CIS in 2003, the 16th International Exhibition in Dubai in 2003 and
Professional International Exhibition in Machinery Manufacture in the
USA «Westech-2004»
Law whether exists or not
None of the CIS country today has the Law about exhibition
activities. The rationale for its adoption is acknowledged only in
Kazakhstan where its clauses are worked out by Intergovernmental
exhibition commission under the Ministry of Industry and Trade of
Kazakhstan. However, the organizers are not the members of the
commission, says Borodikhin. First results of commission activity the
Industry was waiting at the end of May.
Sargsyan in contrary thinks that it is a waste of time to discuss
this Law in Armenia. «This is a common industry which is anyway obeys
certain working laws, normative acts, and to my mind, we should not
transfer it to another rank or legal area»,- he said. Khasanova, who
thinks the adoption of the law is untimely, supports him: «I still
don’t think that the Law is necessary now. We don’t have so many
exhibition companies which activity should be regulated. This is the
issue for future».
Same says Mamedov: «ítoday we do not need it. We are trying to solve
the issues between each other and independently defend interests of
our clients that we do not want to loose. It helps us to be more
flexible to the rapid development of the industry».
Showrooms
«After 1983 fire in Exhibition Center with 15 thousand sq.m area,
Baku is the only capital of the former USSR without professional
exhibition showrooms», – says Mamedov. Today we hold the exhibitions
in Sport Complex named after H. Aliyev that reminds Olimpiyski in
Moscow».
Yerevan also does not have professional exhibition showrooms, though,
as per Sargsyan, many areas adjusted for exhibition with 300 up to 2
thousand sq.m. area. «Construction of professional ExpoCenter is
soon. The state already allotted the area for this purpose», – he
says.
In Uzbekistan international exhibitions are held in Tashkent Republic
Trade and Exhibition Center «Uzexpocenter» under the Agency of
Foreign Economic Relations of the Republic of Uzbekistan.
First pavilion of the center corresponds to the international
standards and has 3,5 thousand sq.m. area. Besides it, exhibitions
are held in Trade and Exhibition center «Uzkorgazmasavdo», total area
– 5 thousand sq.m.
In Kazakhstan the exhibition centers will probably be built in Atyrau
and Astana. «As to the capital to Kazakhstan (Astana city), the
construction of the complex here is more real because it is
stipulated by Governmental program and there is a certain place for
it in the General Plan of the city. – says Borodikhin. – Now it is
still a draft, but the opening is scheduled for 2005». New exhibition
center will comprise a hotel, business-center and showroom for 10
thousand sq.m exhibitions.
Support of the State
Established the expo-industry from zero, the exhibitors of the CIS
countries only anticipate a territory from the state to construct new
exhibition complexes «To my mind, state assistance, huge and
unlimited one will bring back the monopolization of the Soviet times.
State assistance is necessary during establishment, determination of
conditions, game area, and rules of activity in this direction,
allotment of loans and territories for construction of exhibitions
and centers», – says Sargsyan.
Mamedov agrees: «Surely, we would like to hold exhibitions in
specialized exhibition complex and now this issue is under
discussion.» All exhibitions of Iteca Caspian are supported by the
government and have international status. In 2001 Iteca Caspian was
awarded with a national for price UGUR for contribution in
International cooperation of Azerbaijan business, he added.
In Uzbekistan, as per Khasanova’s words, the government fully
reconstructed the first pavilion of the Republican Trade and
Exhibition Center «Uzexpocenter» under the Agency of Foreign Economic
Relations of the Republic of Uzbekistan.
In neighboring Kazakhstan the situation is opposite, as thinks
Tatyana Zhdanova, Director of Foreign Economic Relations Department
of CCI of Kazakhstan. «The State does not provide enough support to
the exhibition business. Even in the matter of financing national
expositions. For e.g. our enterprises will not be exposed at
Intergovernmental exhibition in VVTs – «CIS: fuel – energy and
natural resources- 2004» forum (August 24-27) but at the same time
Government and Committee decided to finance national stand of
Kazakhstan in Germany»,- she says.
The state does not benefit from lack of attention to the exhibitions,
Borodiskhin thinks.
«Support of profile ministries and participation of their
representatives in opening ceremonies influences the prestige of the
event. There are many cases when the exhibition, especially leading
one, positively influences the prestige of the minister and image of
smart politicians, who know that the support of the exhibitions
reflect their opening for new ideas, willingness to know the
industry, as well as respect for business, major an minor, internal
and external», he says.
Together or apart?
Organizers from former Soviet republics which broke political links
during the independence establishment, as a rule, would like to
maintain the current economic relations between CIS countries and
build new ones.
«For 70 years of Soviet power the economy of former Soviet republics
has been so integrated that after the collapse of the USSR all 15
republics were seriously impacted, – Mamedov says. – We are actively
working with our partners in CIS. In particular our Saint-Petersburg
partners, PrimExpo and CCI of Saint-Petersburg, held a joint action
and attracted a number of Russian manufacturers to the Jubilee Food
Exhibition in Baku held on May 12 – 14, 2004». In Khasanova’s
opinion, the determining factor in cooperation is «not a country, but
a partner, his professionalism and reliability». Her company
cooperated with «Iteca» (Kazakhstan), Iteca Caspian (Azerbaijan) and
Primexpo (Russia, Saint-Petersburg). And in Armenia CCI of Armenia
holds the first universal exhibition «CIS Expo 2004».