Dem Basler Messebetreiber MCH macht die Krise in Dubai zu schaffen

The MCH Basle Messemaker has been making the crisis in Dubai worse due to the Iran war. Despite numerous conferences and client events being canceled in the Gulf region due to the war, MCH remains optimistic about recovery. The Art Basel fair is set to continue in Qatar in 2027. However, the Iran war has hit Dubai hard as a tourism destination.

In January-August, the city only had just over 7 million foreign guests, compared to 19.6 million for the whole previous year. The crisis in tourism affects not just hotel, restaurant, and amusement park operators in Dubai, but also the Basle Messemaker. The British-American billionaire James Murdoch, along with the canton of Basel-Stadt, controls MCH Global, which set up a new base in Dubai.

In the past year, the company recorded a "record turnover" in the Middle East, though the exact revenue is not disclosed. No individual fair or subsidiary revenue figures are provided. However, the first half of this year may have seen a downturn in Middle East business as customers stopped live events from early March when the Iran war began.

MCH has not disclosed how much business has recovered since then. Hotel occupancy in Dubai reached 66% in August, up from 36% in the war's first month of March. In the previous year, hotel rooms were 89% booked. Before the Iran war, Dubai was popular throughout the year due to its beaches, entertainment, and diverse shopping. However, Dubai also positioned itself as a destination for international conferences, conferences, and fairs.

Almost 2.2 million visitors were recorded at the Dubai World Trade Center, the city's main venue for such events, with 44% coming from abroad. MCH Global partners in organizing several events in the Middle East, including for German sports car manufacturer Porsche and the social media platform TikTok. Since last year, MCH Global has also had a branch in Saudi Arabia.

Despite negative impacts due to the Iran war, MCH Group increased its first-half sales by 12% to 249 million francs, thanks to Conexpo in Las Vegas and Swissbau in Basel, as well as the first Art Basel Qatar. The Qatar fair took place at the beginning of February and was not yet affected by the Iran war's outbreak. MCH emphasizes that it plans to hold the event again in January next year, but if the situation in the Middle East does not stabilize, the latest regional Art Basel edition may mainly attract a regional audience.

MCH is also forced to reduce its ambitions in the Gulf region. The company plans to focus more on local target groups. Dubai and the neighboring emirate Abu Dhabi have attracted international visitors due to their good flight connections. In the first half of the year, however, Dubai's airports saw 31% fewer passengers than the previous year.

Several airlines reduced their flights to the city due to falling demand. According to investment bank Morgan Stanley, the crisis in aviation and thus the city's tourism sector may drag on for a longer period. MCH's share price rose by 4.2% to 6.48 francs on Thursday, mainly due to further improvement in profitability. The company's profit rose from 5.3 to 18.6 million francs in the first half of the year.

While MCH has its main branch in Paris, Miami, and Hong Kong, the fair remains empty. James Murdoch, son of media mogul Rupert Murdoch, saved the Basle Messemaker, but the halls remain empty.