PARIS – UFI, the global association for the exhibitions industry, has released the latest edition of its Global Barometer, which takes the pulse of the industry. While the barometer reveals the impact of the COVID-19 pandemic on the global exhibitions industry in 2020, there is reason for optimism. The situation is gradually improving, according to the barometer, and in-person exhibitions and professional events will rebound quickly.
The numbers are promising. Global companies that expect no activity in the last quarter of 2021 have fallen from 53% in January to less than 10%. The number of companies reporting normal activity has increased from 12% to nearly 50%. Results vary by region and are primarily driven by currently confirmed or planned exhibition reopening dates.
“Data from nearly 500 leading exhibition companies worldwide shows that our industry’s recovery has already begun, with solid year-on-year growth expectations for 2021 almost everywhere. Only a fraction of shows are still planned to be online-only, while it is interesting to compare the splits between hybrid and on-site shows across markets,” said Kai Hattendorf, UFI Managing Director and CEO.
Digging deeper into the data, the Barometer reveals that across the 28 markets surveyed by UFI, US industry colleagues are the most optimistic, with the vast majority expecting the sector to operate largely as normal in the fourth quarter. “As everywhere, the need to address current travel restrictions is a priority for a successful reopening internationally, and we call on the US government to reopen US borders to business travelers from across Europe – just as we call on China to do the same. Our data also shows that our industry’s advocacy work through the ECA and other channels has been somewhat successful, with around 70% of participating companies reporting that they have received some form of government financial support,” Hattendorf added.
The reopening has started
While many industry sectors reopened in June, most companies expect local and national exhibitions to resume over the next year and international exhibitions to resume online in the first half of 2022.
The lifting of current travel restrictions is the most impactful factor on the resumption of trade shows, with 71% of respondents believing this would be the most important factor. The willingness of exhibiting companies and visitors to participate again was cited by 58% of respondents, and the lifting of current government policies was cited by 55% of respondents as key factors.
Other results show that 48% of companies received some level of public financial support and that, for the majority of them, this represented less than 10% of their overall costs in 2019.
The results are worrying: 57% of companies have had to reduce their workforce, and more than half of them have made reductions of more than 25%. In addition, 10% of companies say they will have to close permanently if they do not have any activity in the next six months.
Unsurprisingly, as in the last Barometer published six months ago, the impact of the COVID-19 pandemic on businesses and the state of the economy are the two most pressing issues for companies. Other issues include the evolution of the global economy, the impact of digitalization and internal management challenges.
Fifty-eight percent of respondents report adding digital services/products, including apps, digital advertising and digital signage to their existing exhibition offerings. Additionally, 40% have developed a digital transformation strategy for individual exhibitions or products.
Related. UFI reports staggering industrial losses in 2020
In terms of future exhibition formats, global results indicate that 78%, up from 64% six months ago and 57% 12 months ago, of respondents are confident that what the industry has experienced during COVID-19 confirms the value of face-to-face events, anticipating that the sector will bounce back quickly.
“The Barometer results confirm the considerable impact of the pandemic on our sector. But with most markets having reopened or knowing when they are likely to do so, the rebound is underway and the sector is confident that COVID-19 will have reinforced the value of physical events while fostering the development of new digital products and services,” said Mr. Hattendorf.
The 27th Global Barometer survey, conducted in June 2021, provides information from 474 companies, covering 64 countries and regions, and was conducted in collaboration with 20 UFI member associations.
In line with UFI’s aim to provide vital data and best practice to the entire exhibition industry, the full results can be downloaded at www.ufi.org/research
Contact Kai Hattendorf at +40 171 5441198 or [email protected]