UFI BAROMETER REPORT

Feedback on the results from South African exhibition industry leaders

Gill Gibbs, chairperson of EXSA

Looking at the statistics, there are some clear indications as follows:

• By June 2021, only 33 per cent of respondents are expecting some sort of exhibition to take place. Before that time, reduced or zero activity is anticipated.

• It will be interesting to see the stats from July 2021 onwards, once UFI conducts their next survey, to evaluate at what stage respondents perceive that exhibitions will be starting to return – and if so, in what format – hybrid, physical or dual?

• An item that is clear with regards to the bouncing back of the exhibition industry, is that government will have to look at relaxing the current travel restrictions – 73 per cent of the South Africans surveyed, believe that this is critical to enable exhibitions to return.

• From the detailed revenue stats, the exhibition industry has downsized dramatically, compared to that of 2019, as well as operating profits that have turned into losses of up to 80 per cent, according to respondents of this survey.

• Looking at the stats where they mention benefit from public financial support, an overwhelming 73 per cent of respondents did NOT receive the support and 87 per cent of all companies in the survey had to reduce their workforce as a direct result of the pandemic.

• On the question raised: “if there is no business for the next six months, which best-scenario applies?” – an overwhelming 80 per cent indicated that they will be struggling, and out of that 80 per cent, 33 per cent cited that they would have to close their businesses.

• When reviewing the most important business issues in our exhibition industry, the South African stats are much higher than that of the global average for: - The impact of Covid on business. - The state of the home economy. - The global economy developments, with the state of the home economy being 33 per cent versus 19 per cent for the global average, which is extremely high.

• If you look at the stats for the format of exhibitions in the coming years for South Africa, hybrid events with more digitalisation are prominent, although the concept of virtual replacing physical events is definitely not on the cards – 43 per cent of respondents cited that virtual will not replace physical.

Projeni Pather, chairperson of AAXO

Despite the South African exhibition industry’s optimism for reopening exhibitions in quarter one of 2021, in the UFI Global Exhibition Barometer, the stroke of midnight on New Year's Eve didn’t wave its usual charm of welcoming in a new year with a brighter tomorrow. Instead, the pandemic’s second wave continued to weave a path of disaster for the South African exhibition industry. Further reinforcement of stricter lockdown conditions was the only means to stop the virus’ violent spread. But it need not weaken our industry’s spirit.

We have to continue working together to focus on the top three indicators for our industry to bounce back:

1.Building confidence amongst the public, business and government.

2.Working together globally to lobby for the lifting of travel restrictions within safety protocols.

3.And lobbying the SA government for the lifting of the current public policies that have categorised exhibitions as social gatherings.

The South African results indicate very limited financial support from the government compared to the rest of the world. And with 87 per cent of participants showing a vast reduction in the workforce, compared to 54 per cent globally, our industry is clearly in dire straits. With a reduced capacity to provide financial support to the South African exhibition industry and avoid further reductions in workforces, the South African government must permit the exhibition industry to be self-sustainable by reopening for business under safe parameters.

Our industry is committed to the safe implementation of organised gatherings to create employment and rebuild the economy.

Carol Weaving, managing director, Reed Exhibitions Africa

There is a huge appetite for live events and the complementary digital activities that form part of the overall magic of being there.

Commenting on the recent UFI report, Ms Weaving noted: “Government regulations and the resultant lockdowns coupled with recovery time from the pandemic is not likely to allow any live events in the first half of 2021; very few in Q3 and possibly a saturation of events postponed from H1 taking place in Q4.

“Sadly, some companies will not survive the pandemic in 2021, whether organiser or supplier,” Ms Weaving said, noting that organisers should work together and co-locate shows for maximum operational efficiencies and staffing resources,” she asserted.

“Predictions, of course, depend largely on the speed of vaccines being accessed and administered. In the meantime, government should allow the industry to open events with Covid19 safety protocols such as rapid testing in place. Testing must be affordable and should be packaged for our exhibitors and visitors.”

Trade shows will recover quicker than consumer shows, Ms Weaving affirmed, given compliance with capacity protocols and consumer confidence.

Justin Hawes, managing director of Scan Display

The expectation that exhibitions will reopen in 2021 was greater in the Middle East - Africa group of respondents compared to the total sample of respondents. Perhaps this group of respondents was more optimistic as their second wave of infection was still some way off, when the survey was conducted in July 2020. At that time, 51 per cent of the Middle East - Africa sample believed that the industry would be operating normally in June 2021, compared with only 37 per cent of the total sample.

When the respondents were asked to say which factors would help the exhibition industry to bounce back, the ‘readiness of exhibitors and visitors to participate again’ and the ‘lifting of travel restrictions’ were the factors that scored highest. In the Middle East - Africa group the lifting of travel bans scored slightly higher than the readiness to participate. This may be because the African exhibition industry relies heavily on international exhibitors and visitors participating in its exhibitions and these respondents are aware how damaging travel bans would be.

When the respondents were asked whether they received public financial support during the Covid-19 pandemic, an overwhelming 87 per cent of the Middle East - Africa group said they did not receive any support. Only 56 per cent of the total sample said they did not receive any support. The lack of government financial aid for the Middle East - Africa region will make recovery more challenging.

I found it interesting that there were so many South African respondents participating in the research. There were 14 respondents from the UK, 16 from Germany, and 15 from South Africa. The South African exhibition industry is relatively small compared to the industry in some other countries represented in the study, but our level of participation shows how committed and engaged our industry members are. May this spirit of commitment drive our recovery.

Devi Paulsen-Abbott, vice president, DMG events

The SA expo industry is in distress, recovery will need to be steadfast and requires collaboration, support and action from all stakeholders. The data affirms the need and popularity of expos and events as an effective channel to support marketing, lead-gen and brand awareness.

Although the impact of digitalisation in South Africa is lower than rest of the world, there seems to be a lot more interest in hybrid events, with 80 per cent agreeing this will be part of exhibitions in the coming years. We can see that adding in an element of digital provides opportunities to grow attendance profiles and geographies. Though digital in no way replaces the live experience, it can offer short term solutions. With the current state of the SA economy, this may also be an option to entice more international funding at future expos.

Comments from the DMG team (across marketing, sales, content production, heads of portfolios):

• Impact on revenues, profits and staff levels seem accurate – with an extended, complete shutdown of live events there could be no other result.

• Even though companies have been pivoting to digital (we have seen this in the market) the stats on revenues still show that digital cannot replace live event revenues, so the results showing a majority of event organisers believing that digital will not replace live are accurate.

• The stat relating to exhibitions starting in the first half of 2021 is too high and agree more with the 2021 H2 stat.

• I also think that we will go from nothing to full national, with some international thrown in – straight away. This is an almost binary option – you can either do events or not. If they can run, that means all other restrictions are lifted so nothing will be stopping national and international attendance.

• Travel is already open nationally and internationally, so that hurdle is cleared already.

• The only thing that is of any importance to opening events again is the lifting of government and travel restrictions. We need vaccine penetration in both our

buy- and sell-markets and then events will come back.

• From our conversations with both buyers and sellers, the feedback we are getting is that the market wants to come back to live events, and do not see digital replacing live.

• Hybrid will be a feature of events and I believe this won’t go away – I think it is here to stay. All events will have some elements of hybrid going forward.

• Feedback from both clients and speakers is that they expect a return to events post June. Conditions affecting their decision are the state of Covid in certain African countries, travel bans and the timely distribution of the vaccine.

• The above statement supports the data pointing to the opening of events in 2021 as well as what the format will dictate – numbers will be lower than 2019.

• We have already seen a shift in events turning to digital for the first two quarters. Due to the second wave, the optimism has shifted from live events being held in the first half of the year, to the last half of the year. We are therefore currently seeing a trend to move towards a more hybrid offering, being able to offer access both digitally and live, whilst also giving an opportunity to remain agile and host events online should regulations regarding face-to-face change.

• The fact that hygiene measures is only ranked at number four out of six (SA) and six out of six (global) of six ways in which the industry can bounce back, being trumped by travel restrictions and government policies, is a clear indication that people are ready to return to live events should restrictions be lifted and they be allowed to do so.

• With the majority of companies not receiving financial support, the industry is struggling to stay afloat and keep people employed. Any further restrictions on gatherings will doubtlessly see even more job losses and businesses having to close doors. This has, however, given us the opportunity to work together as an industry, assisting each other where possible to decrease costs and protect what little revenue there is.

• Face-to-face events will never lose their popularity with people seeking human connection. In-person events will not be replaced by virtual. However, the way in which we host our events has changed. Although the exhibition and event industry has always had high health and safety standards, the introduction of social distancing and sanitisation has changed the way in which we host our events. With the ‘new normal’ of the latter already been widely accepted, the adoption of these new safety measures has already been integrated into smaller events with ease. The changes have also made us have to relook at our USPs. Our challenge now, as we move to a hybrid offering, is to ensure our participants and visitors get the same ROI if not more.

• There is definite optimism in the market with most businesses forecasting reduced activity as opposed to no activity for 2021 – we have seen that there is a focus on resilience and planning as companies prepare to re-engage with their markets post Covid-19.

• Currently we are faced with uncertainty and the outcome of our resilience and recovery as an industry will rely on the support and understanding of our Government and the rules and regulations that are put in place. We are currently seeing a lifting of lockdown after level two and have reason to believe that as lockdown levels decrease; the industry will be permitted to get back to business. The impact of Covid has left no company unscathed. However, there is a clear sense of comradery amongst organisers who are lobbying for the reopening of events. With AAXO and the SAEC leading the charge, we hope to instil the huge contribution and impact the events industry has on economic growth in the country.