Dealmakers
akers
As of mid-May, the UK government hadn’t given any clues as to
whether they understand that exhibitions are not the same as beer
festivals and that organisers can control their environment, for
example by using pre-booking systems for specific visiting times.
Whether they appreciate that allowing exhibitions to restart is key to
restoring economic growth remains in question.
The US approach has so far divided along political lines with
Republican states more bullish about when tradeshows can resume.
The news that some Las Vegas casinos are planning to re-open in
June is a good first step.
While all of this shows positive steps, the challenges for
international events is to deliver their overseas audiences in the face
of travel restrictions and in many cases the requirement for two
weeks quarantine on arrival.
On the negative side, associations that own exhibitions often rely
on them for the bulk of their income and, as non-profit organisations,
they are limited in the Covid-related financial assistance they can
receive. In the USA, where there is a high level of association-owned
events, we can expect to see many of these change ownership – with
either an outright sale or as a joint venture with one of the larger
organisers that already has shows in their sector.
Independent organisers are also at risk. Those who postponed
their shows to later in the year are currently unsure about what to
do. Although most can currently cover their overheads – often as a
result of increased digital revenues - crunch time may come when a
postponement turns into a cancellation and exhibitors start to ask for
their money back.
Let’s hope that the lifeblood of the sector – the independent
organisers along with all of their suppliers and freelancers – soon
receive the same good news as China, South Korea and Germany.
Investors still see exhibitions as a good long-term bet. Informa’s
£1bn capital raise was reportedly fulfilled in less than one hour. The
Private Equity-owned organisers such as Clarion, Closerstill Media
and Tarsus will presumably be able to rely on their owners’ financial
muscle to get through this, although we can expect their inevitable
exits to be delayed by at least a couple of years.
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