PARIS – Trade fairs and exhibitions are rebounding from the pandemic shutdown, with revenues in the first half of 2023 expected to reach 87% of comparable 2019 levels. This is good news for the sector, with 2019 being the record year to date.
These are some of the latest findings from the Global Exhibition Barometer survey conducted by UFI, the global association for the exhibition industry.
The news is improving, with many countries reporting well above average results. In particular, the UK’s 2022 revenues are at 89% of 2019 levels, Italy (86%), Saudi Arabia (85%), Turkey and South Korea (82%) and Japan at 80%. In terms of projected revenues for the first half of 2023, most markets expect to reach at least 75% of 2019 levels, with only Hong Kong (58%), China (69%) and South Africa (72%) forecasting lower levels.
“Globally, despite all the challenges, our industry’s recovery is progressing well. U.S. colleagues in particular are the most optimistic, expecting to get close to pre-pandemic revenue levels again in the first half of 2023. Despite travel disruptions, inflation and staffing issues that keep us busy around the clock, I am encouraged by this positive outlook for the future,” said Kai Hattendorf, UFI Managing Director and CEO.
Based on a global survey, this study was completed in June 2022 and represents current information on the development and prospects of the global exhibition industry in more than 28 markets and regions.
Trade show industry returns to normal
Other highlights include global exhibition revenues forecast at 73% of pre-pandemic levels this year, and 70% of companies anticipate normal operating levels from September 2022.
Management challenges (such as staff shortages) and digitalisation are the most pressing issues in the sector, with 69% of companies currently undertaking recruitment campaigns.
When it comes to operations, about six in ten businesses report “normal activity,” up from just three in ten just six months ago. And by the end of the year, seven in ten businesses expect to operate at normal levels, while about 5% of businesses expect “no activity” from September 2022.
Related. UFI Global Barometer Report Shows Reasons for Optimism
When asked to identify the most critical elements to support the “rebound” of trade shows, six in ten companies selected “lifting current travel restrictions” and “the willingness of exhibiting companies and visitors to participate again”. The next two most influential factors were “financial incentives (resulting in reduced costs for exhibitors)” and “lifting current government policies that apply locally to trade shows”, mentioned by four in ten and three in ten companies respectively.
Looking at 2022 operating profits, 25% of global companies expect a loss or a reduction of more than 50% compared to 2019. Overall, 73% of companies received no government financial support during the pandemic; for most of those that did, government financial support represented less than 10% of their overall costs.
Post-pandemic challenges
The most pressing business issues reflect the industry’s focus on post-pandemic challenges and opportunities. “Internal management challenges” (highlighted by 20% of respondents), “the impact of digitalization” (17%) and “competition with other media” (15%) are the most frequently cited. In comparison, “the impact of the COVID-19 pandemic on the business” has dropped from first to sixth place among the most pressing business issues (from 19% to 11%) compared to the previous edition of the Barometer.
“The recovery of trade shows around the world has entered its next phase, with pre-COVID-19 levels within reach as early as next year in some markets,” said Hattendorf. “As the industry navigates this tremendous recovery, it is also facing significant staffing challenges and is working to apply key lessons learned from the pandemic around digitizing events and services into its business model.”
Spain, Turkey and the UK in Europe, Saudi Arabia and the UAE in the Middle East, and Australia and Brazil stand out as global markets where most businesses returned to normal activity levels by early 2022. However, the majority of markets reached this milestone by March 2022. It is worth noting that Asia only reached this point in May (with China not expected to reach this point until October, and Hong Kong in 2023).
Globally, companies on average saw significant revenue growth in 2022, representing 73% of 2019 levels with growth projected at 87%, using the same baseline for the first half of 2023.
The full survey can be found here.
Contact Kai Hattendorf at kh@ufi.org