What's Next for Globalization? And What Will it Mean for the Exhibition Industry?

November 5, 2016

Kai Hattendorf

Kai Hattendorf is managing director and CEO of UFI, The Global Association of the Exhibition Industry. 

The exhibition industry has seen huge growth in the past 20 years, driven by economic growth around the world, as the global economy expanded at the fastest pace in recorded history. This happened in part, as a recent article in the British Guardian pointed out, thanks to greater freedom of movement for goods, capital and people. Essentially, globalisation has boosted the growth of living standards for millions of people around the world. And our industry, providing the market places for international trade all around the world, played a vital role in this.

Yet, at the same time, already 15 years back the „Economist“ magazine warned that „western governments do a poor job of explaining and defending globalisation – so poor as to breed disaffection with democratic politics.“ Reading this magazine editorial today, in 2016, it seems that many leaders in politics and society took it for granted that the benefits of globalisation were somehow to be understood and accepted by everyone.

Todays political developments in major exhibition markets around the world show a different picture. The complexities of globalisation, and the speed of change makes many people feel that they are being „left behind“. Uncertainty is on the rise, fired up by policital campaigning, the recent string of terror attacks around the world, and the British vote on Brexit, to name just a few. This matters for our industry - for exhibitions as well as for the broader meetings market in general.

Traditionally, the success of exhibitions is linked to the success of the industries they serve – a strong automotive industry is holding strong motor shows around the world, as an example. Trade shows quickly bounce back from economic slumps, as our industry on the whole has proven after the 2008/9 global economic slowdown globally. However, presently we are seeing what economists around the world describe as “ever slowing pace of growth”, and this is translating into more challenging times for us as well.  

The 2017 “Global Meetings and Events Forecast”, just released by American Express, states that there is “some hesitancy” in the meetings industry: “While this sentiment has yet to have a meaningful impact, we do expect this shift may result in some slowdown in the growth we have witnessed over the last couple of years… Overall activity, including number of meetings or number of attendees per meeting, may see a decline.”

So one of the challenges we will have to address as an industry is how to prepare and deal with this sentiment, as one of the driving forces of our industry’s growth seems to lose strength. And, at the same time, help to support and bolster the growth of industries and economies both on the national and international levels. I am confident that, as a global industry, we have a vital role to play here. The fact that, just a few days from now, we will welcome hundreds of global exhibition industry leaders from 50+ countries at UFI's Global Congress, is a huge testament to the global connectedness of our industry. I look forward to seeing many of you in Shanghai!

This post originally appeared on the blog of UFI - The Global Association of the Exhibition Industry.

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Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors. TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders. Lisa Messina, Chief Sales Officer, LVCVA With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role? Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”  These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.  Allegiant Stadium As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward? Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees. What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events? We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.  Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city. Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.  What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization? We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.  What are your favorite ways to recharge? My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.  Valley of Fire What advice would you give to women following leadership paths in destination marketing? I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.   This interview has been edited and condensed. This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.