Rising optimism in the exhibition industry among the 474 companies polled. Pictured: Hong Kong International Dental Expo and Symposium Photo Credit: Hong Kong Convention and Exhibition Centre
The proportion of exhibition companies reporting normal activity has increased from 12% to nearly 50%, according to the latest research by UFI (the Global Association of the Exhibition Industry), which shows companies in the APAC being in a less dire but more uncertain situation than other regions.
While the results highlight the strong impact the COVID-19 pandemic has had on the global exhibition industry in 2020, the situation is gradually improving, and there is a strong belief that the sector, primarily driven by physical exhibitions and business events, will bounce back quickly.
Business activity
In terms of operations, the proportion of companies globally expecting “no activity” for the last quarter of 2021 has fallen from 53% in January, to less than 10% in June, while the proportion of companies with “normal activity” has increased from 12%, to close to 50%.
Regional results for business activity show a moderately optimistic picture in APAC. Only 23% in the region reported no activity throughout 2021, compared to the hardest hit regions of the Middle East & Africa (40%) and Central & South America (34%). The figure is 31% in Europe and 25% in North America.
However, the APAC exhibitions sector is not normalising quite as much as Europe and North America. 27% of APAC respondents are seeing normal activity, compared to 30% in Europe and 35% in North America. Again, Middle East & Africa (22%) and Central & South America (20%) are most affected.
Digitisation is a key change throughout the pandemic, with 40% saying they developed a digital transformation strategy.Operating profits
Similar regional findings apply in the areas of revenue decline and loss of profits. The revenue drop anticipated for 2021 is highest in the Middle East & Africa and Central & South America (only 35% and 37% of 2019 revenues), followed by Europe (48%), Asia & Pacific (50%) and North America (55%).
In terms of profits, the percentage of companies who have seen a loss for 2020 is 41% for North America, 44% for Asia & Pacific, 51% for the Middle East & Africa, 55% in Europe, and 59% for Central & South America.
Future outlook
Interestingly, APAC companies show stronger sentiments of uncertainty for the future. The proportion of companies believing they will need to permanently close if business doesn’t resume within the next six months is highest in APAC at 16%. The number varies from 5% in North America and Europe, to 10% in Central & South America and 12% in the Middle East & Africa.
The majority of companies in all regions expect both local and national exhibitions to open again in the coming 12 months, and international exhibitions to reopen in the first half of 2022.
When asked what element would most help towards the “bounce-back” of exhibitions, the majority of companies rank “lifting of current travel restrictions” (71% of answers), “readiness of exhibiting companies and visitors to participate again” (58% of answers), and “lifting of current public policies that apply locally to exhibitions” (55% of answers) as the key drivers.
Digitisation with a stronger appreciation for face-to-face events
The digitisation of products and services gained momentum throughout the pandemic, and 58% of respondents said they have added digital services/products (such as apps, digital advertising and digital signage) to their existing exhibition offerings. In addition, 40% have developed a digital transformation strategy for individual exhibitions or products.
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 “COVID-19 confirms the value of face-to-face events”, anticipating that the sector will bounce back quickly.
Workforce reduction
Overall, 57% of companies have had to reduce their workforce; over half of these have made reductions of more than 25%.
APAC and Europe show the highest retention. The reduction in workforce was more significant amongst companies in Central & South America (79%), the Middle East & Africa (73%) and North America (63%), than in Asia & Pacific (52%) and Europe (43%).
“The Barometer results confirm the severe impact of the pandemic on our industry. But as most markets have reopened, or know when they most likely will reopen, the bounce-back is on its way, and the sector is confident that COVID-19 will have reinforced the value of physical events, while also pushing the development of new digital products and services,” says Kai Hattendorf, UFI Managing Director and CEO.
UFI’s bi-annual industry survey was concluded in June 2021, and includes data from a record number of 474 companies in 64 countries and regions.