Exhibition World Issue 4 — 2020 | Page 13

Research 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% and 33% of last year’s revenue) than in the Asia-Pacific region (39%) or Europe and North America (44% for both) • 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 public 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 27% Top concerns of exhibition industry leaders globally 0% Impact of Covid-19 pandemic on the business 21% 26% State of the economy in home market respectively 31% and 38% benefitted from any. - 60% of companies have stopped all their 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). Notably, “State of the economy in home market” is ranked as the top issue in Central and South America, and the Middle East & Africa. Format of exhibitions As far as possible driving trends, global results indicate that: • 57% are confident that “Covid-19 18% 19% Golbal economic developments 10% 10% Impact of digitalisation July 2020 January 2020 7% 15% Internal challenges confirms the value of face-to-face events” anticipating that the sector will bounce back quickly (19% “Yes, for sure” and 38% “Most probably”), but 31% are “Not sure”. • 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. 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. www.exhibitionworld.co.uk Issue 4 2020 13