Not exactly Davos
But a glance at the ranking of the world's most popular business tourism destinations gives quite an opposite impression, as the city is ranked down at 66th worldwide, lagging behind more than 20 other European cities. Even within Poland, Poznań is the place more commonly thought of as venue for trade fairs. Can the summit, taking place this week, effectively spur the growth of Warsaw as a business tourism center?
The event, organized by the World Economic Forum (WEF), will be the biggest of its kind in the city's history, attracting 700 participants, including some 15 heads of state and dozens of ministers from across Europe. This, say some hopeful observers, could help realize the potential of Warsaw, which sits at the crossroads of some of the continent's chief transport links. So far, however, it has been Prague, which in recent years hosted World Trade Organization and International Monetary Fund meetings, and Budapest that have attracted the most lucrative conference business in the region.
"There is a lot of money out there for the taking," says Irena Sokołowska, conference director at the EXPO XXI center, referring to Warsaw's potential as an organizer of trade fairs and conferences. A number of businesses could benefit from such a development, starting with the many four-star hotels, which were built in overabundance in the more optimistic days of the mid-1990s, and which have barely broken the 50 percent barrier in occupancy ratios in recent years. They have contributed financially to the Warsaw Destination Alliance, an umbrella group for businesses interested in promoting the city abroad. But the municipal authorities have shown little enthusiasm for the initiative, with Mayor Lech Kaczyński saying that "letting them spend their own money" on the promotion of the city was the authorities' contribution.
Even if the summit proves a success, there can be little progress on Warsaw's position as a business tourism destination without a significant improvement in the city's infrastructure. There is a long history of failure in this respect, as in the case of the project to build a conference center in Park Żerański. In the late 1990s, the cornerstone was laid for the construction of this center for 2,200 people in the north-eastern part of the capital, but the project was torpedoed after city hall backed out of co-financing it.
Agnieszka Białczyk, president of Robexpo Targi Duesseldorf, describes the failure of another attempt to build a trade fair and hotel facility, this time in Mokotów in the south of the city. The project, initiated by Duesseldorf Fairs International, came to nothing after the investor was unable to sort out the ownership issues of the selected spot.
"There was no one to negotiate with, despite the fact that Warsaw and Duesseldorf are partner cities," Białczyk explains. Only investors in EXPO XXI managed to overcome such obstacles, though the site still remains blighted by poor surrounding infrastructure and a terrible approach road.
According to the Polish Tourism Organization (POT), Warsaw has the lowest number of conference facility seats, in proportion to population, of all the 25 capitals of the enlarged EU. Unless that is changed, the summit will have no follow-up acts.
But apart from the opportunity to promote the city as a whole, the summit offers a chance for international promotion for many of the country's leading companies. More than 200 businesses are taking part in the event, with some of the largest (Polkomtel, KGHM, Eurobank, PZU, Orlen and Citibank) sponsoring the event.
Veterans of similar events stress the opportunities for networking and the work-like atmosphere at the WEF summits. The Sofitel Victoria Hotel, which will host the summit, says its catering department received specific orders to provide "modest and comfortable" fare to participants.
"We were told that the participants come here to work, so fancy food would be a distraction," says one hotel manager. Although the event is not a place to do business, it is public knowledge that some of the most spectacular mergers in history were conceived at the Davos meet.
Some companies, however, remain unconvinced. One manager said that, after attending the Davos global event, which he found "a lot less useful than trade fairs where I meet people in my industry," he is not planning to attend the less-prestigious regional summit.
"Bill Gates won't even be there," he says, adding, "What's the fun in that?"
The event, organized by the World Economic Forum (WEF), will be the biggest of its kind in the city's history, attracting 700 participants, including some 15 heads of state and dozens of ministers from across Europe. This, say some hopeful observers, could help realize the potential of Warsaw, which sits at the crossroads of some of the continent's chief transport links. So far, however, it has been Prague, which in recent years hosted World Trade Organization and International Monetary Fund meetings, and Budapest that have attracted the most lucrative conference business in the region.
"There is a lot of money out there for the taking," says Irena Sokołowska, conference director at the EXPO XXI center, referring to Warsaw's potential as an organizer of trade fairs and conferences. A number of businesses could benefit from such a development, starting with the many four-star hotels, which were built in overabundance in the more optimistic days of the mid-1990s, and which have barely broken the 50 percent barrier in occupancy ratios in recent years. They have contributed financially to the Warsaw Destination Alliance, an umbrella group for businesses interested in promoting the city abroad. But the municipal authorities have shown little enthusiasm for the initiative, with Mayor Lech Kaczyński saying that "letting them spend their own money" on the promotion of the city was the authorities' contribution.
Even if the summit proves a success, there can be little progress on Warsaw's position as a business tourism destination without a significant improvement in the city's infrastructure. There is a long history of failure in this respect, as in the case of the project to build a conference center in Park Żerański. In the late 1990s, the cornerstone was laid for the construction of this center for 2,200 people in the north-eastern part of the capital, but the project was torpedoed after city hall backed out of co-financing it.
Agnieszka Białczyk, president of Robexpo Targi Duesseldorf, describes the failure of another attempt to build a trade fair and hotel facility, this time in Mokotów in the south of the city. The project, initiated by Duesseldorf Fairs International, came to nothing after the investor was unable to sort out the ownership issues of the selected spot.
"There was no one to negotiate with, despite the fact that Warsaw and Duesseldorf are partner cities," Białczyk explains. Only investors in EXPO XXI managed to overcome such obstacles, though the site still remains blighted by poor surrounding infrastructure and a terrible approach road.
According to the Polish Tourism Organization (POT), Warsaw has the lowest number of conference facility seats, in proportion to population, of all the 25 capitals of the enlarged EU. Unless that is changed, the summit will have no follow-up acts.
But apart from the opportunity to promote the city as a whole, the summit offers a chance for international promotion for many of the country's leading companies. More than 200 businesses are taking part in the event, with some of the largest (Polkomtel, KGHM, Eurobank, PZU, Orlen and Citibank) sponsoring the event.
Veterans of similar events stress the opportunities for networking and the work-like atmosphere at the WEF summits. The Sofitel Victoria Hotel, which will host the summit, says its catering department received specific orders to provide "modest and comfortable" fare to participants.
"We were told that the participants come here to work, so fancy food would be a distraction," says one hotel manager. Although the event is not a place to do business, it is public knowledge that some of the most spectacular mergers in history were conceived at the Davos meet.
Some companies, however, remain unconvinced. One manager said that, after attending the Davos global event, which he found "a lot less useful than trade fairs where I meet people in my industry," he is not planning to attend the less-prestigious regional summit.
"Bill Gates won't even be there," he says, adding, "What's the fun in that?"
