ANALYSIS Research reveals differing geographical impact of downturn on global trade show market

Europe’s exhibition industry appears hardest hit by the recession than any other world region, and looks likely to be the slowest to recover, according to UFI’s Global Exhibition Barometer survey.

Compiled in December 2009, the research provides new insight into the impact of the economic crisis on the exhibition industry and identifies significant differences across the various regions of the world.

A “bottom-out” of the turnover decrease is anticipated in 2010, by a majority of respondents from all regions, except Europe. When looking more specifically at the combined results for the second half of 2009 and forecasts for 2010, 60% of European respondents declared decreases for all periods as compared to 32% in Asia/Pacific, 25% in the Middle East/Africa and only 8% in the Americas.

In 2009, in terms of operating profit, the Americas and Europe were more affected than the other regions, with 54% and 51% respectively of respondents experiencing a decrease of more than 10% of their 2008 operating profit, or even a loss.

The same was felt by only 29% of respondents in Asia/Pacific and 11% in Middle East/Africa. For 2010, however, 41% of respondents in the Americas expect an increase of 10% or more, and the remainder anticipate a stable situation.
 
Respondents from other regions have comparable expectations, except in Europe where only 19% of respondents expect an increase of 10% or more in 2010.

Finally, a majority of respondents from the Americas and from Asia/Pacific believe that the global exhibition industry’s economic recovery will occur in the second half of 2010. However, once again differences can be noted across the regions. A majority of respondents from Europe and Middle East/Africa believe this will not take place before 2011.

UFI, the global association of the exhibition industry, decided to assess the impact of the economic downturn by developing a Crisis Barometer based on the perceptions of UFI members in 82 countries. For the USA, an identical survey was conducted by the Society of Independent Show Organisers (SISO) and for Central & South America by the Asociacion International de Ferias de America (AFIDA) of their respective members. The findings were combined in the Global Exhibition Barometer.

“It now appears that although all regions have been affected by the crisis, the impact is being felt with significant difference between regions, and sometimes also within regions,” said UFI managing director Vincent Gérard. “It’s interesting to see that while the Americas and Europe appeared to be hardest hit by this economic crisis, the Americas seem first to recover.”