The global association for the exhibition industry UFI has updated its global evaluation of the growing economic impact of Covid-19 on shows and fairs:
The news headlines from UFI reveal that contracts worth at least €134bn (US$ 145bn) were not signed because activities were not scheduled until Q2 2020. UFI also noted that by Q2, €81.6 billion of total economic output will not now be produced for the exhibition industry.
The annual update of the organization represents the effect of displays and cancellations for the exhibiting companies as well as for the trade show industry around the world.
The value of €134.2 billion not earmarked for shows in the second quarter of 2020 is almost five times higher than that reported by UFI in the previous week’ s survey (€23 billion). This study only takes cancellations into account until the end of the current section.
“Right now, the markets on which businesses are based are closed worldwide. This is without precedent. Activities have now soon come to North and South America concerning Covid-19, which means that the entire global exhibition and event industry is ending, “says Kai Hattendorf, Managing Director / CEO of UFI.
The estimated economic production of 81.6 billion euros not reached by the end of Q2 is divided into regions. The respective total economic impact not to be produced is:
- 21,8 billion euros and 378,000 FTE jobs for Asia / Pacific
- 28,8 billion euros and 257,000 European FTE jobs
- €29.2 billion and 320,000 North American FTE workers.
The backbone of the exhibition industry is many small and micro companies, which are immediately at risk of bankruptcy due to a lack of enterprise, the report notes.
UFI says that it partners with several national organizations to ensure policy and international support for badly-affected companies. It states that there have already been many instances of economic relief for our industry from Hong Kong to Denmark.
“We encourage every government, through direct subsidy and credit schemes, to secure our sector ‘s future. Our savings are now highly lucrative. We are building, and operating market and meeting places for all sectors and industries to meet and do business following the pandemic-our industry is the quickest way to any economic recovery, “explains Hattendorf. No stranger to adaptation, exhibition venues around the world are supporting the respective health sectors. “All of our leaders favor the disaster response in their respective cities, the construction of temporary shelters, and the provision of beds should the demand not be met by local hospitals. It is disappointing to see how in tough times, our business gets together, “says Hattendorf.
UFI directly represents over 50,000 employees worldwide in the exhibition industry and also cooperates closely with 60 members of the national and regional association. More than 800 member organizations are currently registered as members in 89 countries around the world.
Check out the Recovery Townhall 14th Ed.: Kai Hattendorf
