Role of event management in the economic development in Kazakhstan
Кайратова Г. К., Жолдасбекова Ж. М. Role of event management in the economic development in Kazakhstan // Молодой ученый. 2016. №25. С. 284-288.
The article deals with problems of event management in Kazakhstan, as part of the event-industry, and its role in the development of domestic economy and image of the state. The characteristic of the modern market of event management is given, also the main features of domestic economy in Kazakhstan are revised. Potential of event industry as part of a long-term strategy for the development of domestic economy is justified. To analyze the relevance and prospects of this field in Kazakhstan, particular in Almaty, there was made a SWOT analysis, conducted a social survey. Also author gives a comparative table of the Brazilian carnival, as one of the largest and most well-known events in the world with the Kazakhstan holiday «Nowruz». Also there are given some examples of holding events like the initial stages of the implementation of the concept of development of domestic economy in the country.
Keywords: domestic economy, event management, event marketing, destination, image-making
The role of Management in the variety of industries is made through economic, social, political, cultural, ecological and other impacts. Currently, the full list including types of management consists of nearly 60 items. Except the traditional human management, increasing its popularity constantly, today we allocate rare “subtypes” of management, such as conflict management. The histories of management rise in many countries are based on the birth and evolution of only one type of strategy, so the problem of decision, what type of management can act as a domestic economy catalyst is one of the key moments in economic development.
Event management — is relatively young though extremely interesting direction. The main purpose of the activity is timed to some event. Popularity of unique tours that combine traditional holiday and participation in the most spectacular events of the planet is increasing exponentially. Event management — is an enduring holiday atmosphere, the individual conditions of stay and an unforgettable experience with the corresponding organizational moments. The main feature of the event management — a lot of bright unique moments, promising and dynamic form of management. Examples of events that cause a surge event management may be the Olympics, the World Cup, music festivals, film festivals, carnivals, economic forums, the air show etc.
Scientist A. V. Babkin allocates following types of activities in event management
a) national festivals and holidays;
b) theatrical show;
c) film festivals and theater;
d) gastronomic festivals;
e) festivals and flower shows;
f) fashion shows;
h) music festivals and music competitions;
i) sporting events.
In our opinion, along with festivals and exhibitions of flowers can distinguish animal exhibits (handling, rodeo, fish exhibitions) as well as a separate event highlight the ecological character of the event, such as the world famous Green Festival in America, which has been held for 12 years. All of the listed events mostly are considered to be very expected and have great announces and resonance.
The idea of event marketing, or organization of events with the purpose of entertainment or to raise public interest in a service or product — is one of the most effective methods. Conducting events in Kazakhstan still remained at a relatively low level. In the past decade, however, Kazakhstan has been very rich in a variety of social, cultural, political and sporting events and activities. Under the auspices of international organizations there were held world-levelevents: Arrival in Kazakhstan Pope, joining a club UEFA congress of world leaders, the chairmanship of the OSCE and the summit in capital city Astana, the Asian Games in 2011 and the entry in the list of top 50 most competitive countries of the world. Such events are valuable primarily for the role in image strategy, the country brand is advertised, crucial step towards success in the international market. For example, Company Brand Finance, engaged in the evaluation of so-called «intangible property» of the countries estimated that in financial terms, the national brand can range from 2 to 10 % of GDP (depending on the level of its development).
To estimate the costs of bringing about a good campaign on destination branding for Kazakhstan(particular cities of the country), at the first place public opinion research is necessary, also program development, PR-activities and creative works. Currently tourism is a priority sector for Kazakhstan, as worldwide share of services sector has significantly increased and still this tendency is being kept. These activities very favorably impacted on the interest of foreign citizens in Kazakhstan thanks to the high level of organization. Which, unfortunately, can not be said about the local events, the organization of which is left without proper attention. Participation in special events is expensive, but the stubs of problem are not the price itself, but its non-correspondence to the quality. While creating the concept of domestic development within a country the governmental supervision and participation must be taken into account. Currently in Kazakhstan there is no organization, engaged in the collaboration of events, as a part of domestic economy development strategy implementation. Which, however, are not only but also can carry out the task of education and bringing up process. Activities made in frames of event holding awakens new interests. With the establishment of the Organization, which specializes precisely in such events elaboration, a large segment of the market will be covered. Small enterprises cannot act on this position due to narrow specialization, inadequate level of competence as a result of the event-management training level situation in state generally. This Organization must operate on the basis of the local administration and local population requirements synthesis, coordination of the semantic content of event (how it exerts the social and cultural life) with financing, expenses and registers.
Innovation and initiative — are the primary and most priority characteristics in the organization of events. Professional event holding requires considerable resources, time and efforts. Often, tasks to promote the brand of the destination, as well as any service or product attracting tourists cannot be achieved by using inappropriate, outdated methods. In Kazakhstan, the problem of underdevelopment, unfortunately, is typical not only for the tourism industry. In Kazakhstan, as part of the «Concept of development until 2020" geographically identified five clusters. East Kazakhstan is considered as the center of development of eco-tourism, altogether with Almaty — with its nature based tourism in mountains. Furthermost, Astana and Almaty are positioned as the point of business development. The territory of South Kazakhstan is defined as a center of cultural tourism, Western Kazakhstan — as a place of cultural and «beach» tourism. In all five clusters there is a direct connection with the events, which is why the search for new creative solutions for the development of event management industry is key to the development of both domestic and international flows. The southern capital of Kazakhstan, Almaty, is the clear leader for both domestic and international economu of the country, as evidenced by the statistics of tourist flows (583 456 people by the number of tourists served in placements in 2013). Besides, Almaty has long established itself as a cultural center and the business capital of Kazakhstan, in connection with which it is advisable to start the event activities as a prerequisite for the increase of domestic tourists to the city.
Historic and cultural capital of Kazakhstan.
Concentration of architectural and natural monuments, main tourist attractions and facilitites. High standards of life and economic indicators: nominal income of the population — 113 914 tg per capita(2014). One of two millioner-citites of the republic
Developed platform for entrepreneurship activities (state support on preferential terms, possibility for subsidies and investment) The city has to 27.5 % of the total production of goods (works, services) by small businesses in Kazakhstan and 22.7 % of employment in small businesses in the country. Presence of the biggest airport in Kazakhstan (Almaty International Airport), development of transport infrastructure
Inadequate awareness and attention towards reservation and advertising of the existing tourist sites, preference of outbound trips.
Heightened prices for leisure and other activities.
Improper level of education and training for provision of services in hotel and lodging industry, excursion services, catering etc. Unskilled and non-competent staff in the related spheres.
Increasing number of ecological problems: air and water pollution, greenhouse effect, smog.
All the conditions for development of all types of events, due to the climatic features: sharp continental climate allows conducting any kind of activities and events, which are capable for stimulating of flows increase within the country.
Development of ecotourism, taking into consideration geographical features of the region: mountains, as prerequisite for trekking tours, ski resorts, rivers for rafting etc.
Development of business in provision of domestic tours. Starting from 2008, the main activities to reduce administrative barriers are being undertaken: improving tax and customs administration; works on improvement of permitting procedures, expanding the network infrastructure support and development.
Increasing gap in economic and social upgrowth between Almaty and less developed cities of the state.
Exacebration of existing problems: ecological problems, deificit or proficit in supply.
High level of competition. 661 out of 1705 tour firms in Kazakhstan were established in Almaty city(2013), so market is saturated by the diversity of suggested services.
Enhancement of the ecological problems and other negative impacts of tourist activities. Other big-cities problems, common for the city are overcrowding in the places used for the economic activities.
To understand and evaluate the relevance of domestic event management a social survey was conducted, 50 respondents were interviewed with the following questions:
– How often do you travel within the country?
– What kind of event would you like to participate in?
– Would make domestic trips to attend or participate in a big event?
Results show that only 6/50 people travel within a country 1 a month or more. 16 respondents make trips 1 or 2 times a year. Biggest share of interviewed (21/50) travel once within 2–3 years. The rest 7 replied they never make trips within a country.
More than half of respondents (28/50) prefer attending in cultural-entertaining events. 5 of respondents more prefer educational and professional events, 11 tend to sport events participation, only 2, and 14(28 %) don’t engage in participation of any events. At the same time 31/50 respondents gave affirmative answer to the question: “Would you like to travel within country to participate in a big event?”
34/50 respondents are not satisfied with the prices for domestic flights.
The analysis of the survey allow to make following conclusions. There is adequate demand for domestic trips as well as for attending the events. The most popular types of events, which are capable to attract the great masses still remain cultural-entertaining and sport. Also the professionally oriented events as training or educational courses are popular. Events of ecological character still are not recognized by the masses. One of the barriers for domestic economy is high prices for flights.
There is a huge number of events, which stimulate growth, both domestic and international. One of them is Brazil Carnival — the celebration originated in the Catholic countries as a party before the coming of Lent — the forty days Christ spent in the wilderness. It was traditional for the celebrations to end Ash Wednesday, people then respected the period of abstinence for forty days.
In our country, as well as in many others, one of the most recognizable and promising events is Nowruz, also known in Western World as Nauryz. It is a name of the New Year holiday by astronomical solar calendar which is celebrated by Iranian and Turkic peoples. It is one of the most ancient and known as well as expected holidays.
In order to compare main patterns of these two events, different criteria can be taken. But for those which can identify what are the similarities and differences, in order to figure out how they can be applied for practical and academic studying purposes.
Comparison of Nowruz Festival and Brazil Carnival
Origin and Subject
Is held to appoint the beginning ofLent Ash Wednesday which is mentioned in the earliest copies of the Gregorian Sacramentary, and probably dates from at least the 8th Century. First notes about festival itself refers to 1600 year as the development of the Entrudo, imported from Portugal
Marks the first day of springor Equinoxas and the beginning of the year in the Persian calendar. Origins refer to preliterate era of human history. Official status was acquired in the Achaemenid Empire, as a religious holiday of in about 648–330 years b. c.
Is held during the Friday to the Tuesday beforeAsh Wednesday which in turn can fall as early as 4 February or as late as 10 March totally comprising 4 days.
Comes in spring, begins at 21th of March and is celebrated from 4 to 6 days depending on the country
Is popular not only among local people, but among the coming foreigners More than 5 million attendants annually (5,3 mln, 2012)
Is celebrated annually as an old custom. Attracts the majority of local population
Fig. 1. Carnivals: a) Brazil Carnival; b) Nowruz Celebration [Source: www.independent.co.uk; Source: www.news.kz]
Concept of development activities. The works related with the collaboration and future development of events for local trips stimulating, including all formal procedures, public relations, advertising and the concepts must be carried with taking into account all the features of this activity, mainstreams, challenges and forecast. For this purpose world events practice can be the a benchmark. For example «Apple Fest». World-renowned farmers' fairs are held annually in Canada, the USA and England. Conducted in Canada, Ontario took place in 1975, and to this day is traditionally a celebration of harvest and abundance. In 2006 America Bayfild among the best festivals in the autumn version of the American Community travel writer. Number of visitors in Franklin has 300,000, and profit from the New York allow organizers to allocate $ 5,000 of financial assistance to hospitals, libraries and local farms. Despite the fact that Almaty since the time of the Soviet Union was recognized as «apple capital» not only in Kazakhstan but also the entire region, growing delicious and unique sort of apple «Aport» in Almaty, “Apple-Fest” still cannot be called large-scale event. Each year, the program and format of the event is improved, however, in order to turn Almaty into a grand event, it is necessary that will also help in shaping the image of the city, combining the traditional image of the «City of Apples» already new ideas about Almaty, as a modern city offers tourists international events scale.
Fig. 2. Apple Fests a) Apple Fest in New York; b) Almaty Apple Fest
Summary and Conclusions. Considering the event management as a factor in the development of domestic economy, it is necessary to develop strategies and concepts for its correct functioning. Ever-growing event-market needs real professionalism, creating not only viable new ideas, with the knowledge how to direct an event, combining it with the implementation of an embodiment of the task. Also using of ATL and BTL-technologies is crucial while advertising activities. Event-marketing has a clear social orientation, this is a very close contact with the customer. Specificity of event management is that it has long-term effects, since begins long before the events in the announcements, posters, press conferences and continuing thereafter in the course of the event, and after it in the publications in the media, this fact positively effects on tourist’s motivation to travel. Events in this case will be the whole of the country in promoting strategies that can act as a single component of a long-term strategy (Kazakhstan 2030).
Development of Event-industry on expectations will be profitable for the country, but more importantly, it is not only commercially, but also socially and culturally important concept, which will bring significant changes in the modern Kazakh culture and style way of life of the population, a variety of range of interventions and improving their quality. It will certainly result in an increase tourist flows within the country at times, that as a result, will give new impetus to the development and progress.
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- Бабкин А. В. Специальные виды туризма. — Ростов-на-Дону: Советский спорт, 2008. — С. 117.
- Paulo Miguez (2001). Creative Economy: A feasible Development Options. — P. 39.
- Iraj Bashiri (2001). Nowruz: Origins and Rituals
- Jaclyn Michael (2008). Celebrating Nowruz The Outreach Center for Middle Eastern Studies Harvard University.
- Warwick Applefest [Internet resource]. URL: http://warwickapplefest.com/
- Ministry of national Economy of the Republic of Kazakhstan, Committee on Statistics [Internet resource]. URL: http://stat.gov.kz/getImg?id=ESTAT084310