Unpacking the recent IFES research

The recent International Federation of Exhibition and Event Services (IFES) research examined the impact of the pandemic on the global exhibition and live events industries. Justin Hawes, incoming president of IFES and managing director of Scan Display offered some insights into the research.

Background

The Brussels-based International Federation of Exhibition and Event Services (IFES) represents suppliers to the exhibition and events industry throughout the world. In September 2020, the its members to understand the impact the pandemic is having on members in different countries.

Sample

Eighty-six members responded from 31 different countries, spread across all six continents. Some countries only had a few respondents, so the research mainly provides qualitative insights, as some of the sub samples are too small. The majority of responses were from association conducted research amongst members in Europe, North America and Asia – where the majority of IFES members are based. The responses from Africa were from four South African member companies.

Government support

The survey reviewed types of government support received in different countries, including loans, subsidies, tax reductions, rent subsidies, short time work subsidies and wage subsidies.

• The respondents in Africa (represented by four South African companies) said they benefited from tax reductions and wage subsidies (probably reflecting TERS). They did not receive any short time work subsidies and rent subsidies

• Government loans were highest in Australia – and lowest in Africa (South Africa) and Asia

• Short time work subsidies were highest in Australia and Europe

Upcoming shows

The research indicated there was some activity in the global industry with a few smaller national shows taking place.

• Most activity was taking place in South America (represented by an Argentinian member) and Asia (represented by members in China, Russia, Iran, United Arab Emirates, Hong Kong and Taiwan)

• Travel restrictions played a big role in the cancellation of shows

• Respondents from Europe said that there were quite a few shows set to take place before the end of 2020. However, given the recent second wave of infections on the continent, these shows have more than likely subsequently been cancelled or postponed

• The South African respondents said that no exhibitions would take place in 2020 as, under the current government regulations, they are not allowed

Shows planned for 2021

• At the time of the research, fewer than half of the responders believed that the shows postponed to or planned for 2021 would take place

• Thirty-one per cent said that some shows planned for 2021 had already been cancelled

• Three of the four South African respondents indicated that many shows planned for 2021 had already been cancelled

Safety protocols at shows

The safety protocols reviewed included: using sanitiser, mask-wearing, distancekeeping, managing the flow of visitors, using waiting areas, preregistration, temperature screening and managing the maximum number of visitors per square metre.

• Sanitising was considered the most important protocol, followed by social distancing

• Managing the flow of visitors at an event was not considered an important protocol by respondents

• All African (South African) respondents said that they would be using sanitisers, masks, social distancing, managing the number of visitors and taking temperatures as safety protocols at events

Future viability of businesses

Respondents were asked about the viability of their businesses in the event of no exhibitions taking place before March 2021 – a whole year from the start of the pandemic and the cancellation of large-scale shows and events.

• Only eight per cent of the respondents said that they had extended their product offering sufficiently to survive the year-long loss of exhibition-related income

• Fifteen per cent said they would have to shut their businesses down

• Seventy-six per cent said that they would be able to survive until March 2021 – just keeping their heads above water by relying on savings and subsidies

Impact on revenue

Respondents were asked to indicate the impact of the pandemic on their company revenue levels.

• Two per cent of the respondents said that their revenue had dropped by under 25 per cent, compared with their 2019 revenue for the same period

• The majority of the respondents had experienced a significant drop in revenue, with 36 per cent saying their revenue had dropped by between 76 per cent and 90 per cent, and 38 per cent saying their revenue had dropped by more than 90 per cent. Therefore, almost three-quarters (74 per cent) of respondents had lost at least 75 per cent of their revenue, showing the severity of the impact of the pandemic on the live event industry

Alternative income sources

Respondents were asked what other income-generating activities they have pursued to keep afloat since the pandemic started.

• The activities mentioned included shopfitting, interiors, showrooms, and redesigning offices for social distancing

• Some respondents said that they had become involved in organising virtual events and performing consulting and training

• A few respondents said that they had sold Covid protection products

Challenges facing the industry

The respondents were asked to identify the challenges facing the live events industry in future. Their responses provided some insight into the severity of the pandemic’s impact, and include the following:

• The uncertainty facing the industry

• Slow opening and recovery of the industry

• Complete lockdown of all events

• International trade and travel blocks

• Smaller and fewer shows

• Re-attracting exhibitors and rebuilding their trust

• Limited visitor numbers

• Extra costs required to comply with Covid regulations

• Merging virtual events with live formats

• Staying in business until the industry recovers cannot be served effectively by digital