UFI’s Global Barometer Points to Positive 2018 for Exhibition Industry

February 2, 2018

Last year ended on a positive upswing that will follow into 2018, according to the 20th edition of UFI – The Global Association of the Exhibition Industry’s Global Barometer report.

"Globally, the exhibition industry is growing at a healthy rate. Companies around the world are looking into expanding their activities within and beyond their present activities and geographic borders,” said Kai Hattendorf, UFI managing director/CEO.

He added, “In parallel, new business models are under development, and many players in the industry expect them to deliver a relevant share of their company's revenues in the coming years.”

The top business issues remain the state of the economy in home markets, and global economic development - the first one rising in importance, the latter one's importance declining.

Results also indicate that a very large majority of companies are looking to develop new activities, while a significant proportion is also considering investments in new geographical markets.

Revenue generated from new business models is expected to grow considerably in the coming years as the exhibition industry embraces evolving business models.

The research presents a global overview of industry data, broken down into company types and 17 separate market profiles.

This edition’s data is based on input from a record 290 participants from 53 countries and regions.

Seventy percent of companies around the world declared an increase in turnover for the second half of 2017, while 72 percent anticipate an increase for the first half of 2018 and 77 percent for the second half.

Companies in several markets are well-positioned to out-perform these previsions in 2018: Brazil, Germany, Macau, the U.S. and the U.K., whereas a significant level of uncertainty still exists for many countries in Asia, including most parts of China.

In terms of operating profit, most markets maintained or improved a good level of performance in 2017: 44 percent declared an increase and 43 percent a stable profit.

A majority of companies declared an increase their operating profit in 2017 in nine of the markets analysed: Brazil, China, Germany, Indonesia, Macau, Mexico, the Middle East, the UK and the US

When asked about the revenue share expected from new business models (such as different event formats, digital revenues or marketing services), a majority of participants responded that they expect this revenue to represent between 5 and 10 percent of total revenue in five years’ time, and more than 10 percent in 10 years’ time.

One quarter of the companies is expecting these new business models to generate a share of more than 25 percent of their revenues in ten years’ time.

Most notably, an above-average share is expected in the following markets: Australia, China, India, Indonesia, Macau, Mexico, Thailand, the U.K. and the U.S.

The top business issues for the coming year remain the “State of the economy in the home market”, (for 25 percent of the respondents), “Competition from within the industry” (21 percent), “Global economic developments” and “Internal challenges” (16 percent each).

This means that "Global economic developments” have become less important than in previous years. Detailed results indicate that “Competition from within the industry” is the top business issue in the following 4 markets: China and Macau, India and Germany.

In terms of the range of revenue-generating activities, a large majority of companies intends to develop new activities in either the classic range of exhibition industry activities (venue/organiser/services), other events (live or virtual), or in both of these areas: 72 percent in the Middle East & Africa, 78 percent in Asia/Pacific and 88 percent in the Americas and Europe. In terms of geographical exposure, an average of 4 out of 10 companies declared their intention to develop operations in new countries, and this is the case for a majority of companies in five of the 17 markets analysed: the UK and the Middle East (67 percent), China (57 percent), India (53 percent) and Germany (50 percent).

This latest edition of UFI’s industry survey was concluded in January 2018 and includes data from 290 companies in 53 countries. This constitutes the largest-ever number of participants in this global survey.

The study delivers outlooks and analysis for 14 major markets: Australia, Brazil, China, Germany, India, Indonesia, Italy, Macau, Mexico, Russia, South Africa and Thailand, Thailand, the UK and the US. In addition, three aggregated regional zones have been analysed.

“This is the 20th edition of our Global Barometer and we are very pleased to report a record number of participants, allowing us to include data from 290 companies,” Hattendorf said.

He added, “We are also pleased to welcome EEAA (The Exhibition and Event Association of Australasia), IECA (Indonesia Exhibition Companies Association) and MFTA (Macau Fair Trade Association), as partners for this report. These partnerships have enabled us to add a new country profile for each of these markets.”

The full results can be downloaded at www.ufi.org/research.

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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.