Exhibition News September 2020 | Page 11

News Feature Top concerns of exhibition industry leaders globally 27% 0% Impact of Covid-19 pandemic on the business 21% 26% State of the economy in home market 18% Australia, Brazil, China, Colombia, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, South Africa, Singapore, South Korea, Spain, Thailand, the UAE, the UK and the U.S. In addition, it analyses five aggregated regional zones. Regions Each region broadly follows the level of operations indicated above for the world, with two notable differences: » The Asia-Pacific region first faced a drop in activity: only 73% of companies declared a “normal” level in January compared to a minimum of 85% in all other regions; in February, the level had already dropped to 45% in the Asia-Pacific region. » The Middle East & Africa, and to some extent Central and South America, appear less confident as to the return to a “normal” level of activity than in other regions. In both those regions, a majority of companies expect that “national” exhibitions won’t open until 2021. Other regional results indicate that: » The revenue drop for all of 2020 is expected to be slightly higher in the Middle East & Africa and Central and South America (respectively only 31% 19% Golbal economic developments 10% 10% Impact of digitalisation July 2020 January 2020 7% 15% Internal challenges and 33% of last year’s revenue) than in the Asia-Pacific region (39%) or Europe and North America (44%). » In terms of profits, the percentage of companies expecting a loss for 2020 varies from 34% in the Asia- Pacific region to 48% in the Middle East & Africa, and around four companies out of ten in all other regions. Cost reductions and financial support Overall, 87% of companies have been cutting costs, and 17% have cut more than 50% of their overall costs. A majority of companies say they have not received any financial support. At the same time, 44% have, and for a majority of those, it related to less than 10% of their costs. While 2020 investments have been stopped for 44% of companies globally, with a further 32% of companies saying they are cutting back, there are some significant regional differences: » Financial public support is less frequent in the Middle East & Africa and in North America, where only respectively 31% and 38% benefitted. 60% of companies have stopped all investments in Central and South America. Most important business issues “Impact of Covid-19 pandemic on the business” is considered as the most important business issue (27% of combined answers). Also, for the first time, “Impact of digitalisation” (10% of answers) joins the “State of the economy in home market” (21%) and “Global economic developments” (18%) in the top priorities. “Internal challenges” and “Competition from within the industry”, always in the top four most important business issues, are ranked below for this survey, with respectively 7% (15% six months ago) and 5% of answers (20% six months ago). Format of exhibitions Global results indicate that: » 57% are confident that “Covid-19 confirms the value of face-to-face events” anticipating that the sector will bounce back quickly (19% “Yes, for sure” and 38% “Most probably”). » 56% believe that there will be “Fewer international ‘physical’ exhibitions, and overall, fewer participants” (13% “Yes, for sure” and 44% “Most probably”), and 25% are “Not sure”. » 82% of companies consider that there is “A push towards hybrid events, more digital elements at events” (30% “Yes, for sure” and 52% “Most probably”). A minority of 17% agrees with “Virtual events replacing physical events” (3% “Yes, for sure” and 14% “Most probably”), and 20% are “Not sure”. There is one significant regional differentiation: » “Virtual events replacing physical events”, with stronger and opposing views – from Europe, where 80% of companies disagree, and from North America, where “only” 50% do. EN The 25th UFI Global Exhibition Barometer survey was conducted in collaboration with 17 UFI Member Associations. The full results can be downloaded from the UFI website. September — 11