Latest UFI Global Exhibition Barometer Indicates Industry Bouncing Back, Highlights Global Outlook for 2023

July 26, 2022

UFI, the Global Association of the Exhibition Industry, has released its latest flagship Global Exhibition Barometer research report, designed to take the pulse of the global exhibition industry, with results pointing to a continued wave of positivity.

Concluded in June 2022, the 29^th edition of the bi-annual survey includes data from 366 companies across 57 countries and regions, and outlooks and analysis for 23 focus countries and regions, including Argentina, Australia, Brazil, Chile, China, Colombia, Germany, Hong Kong, India, Italy, Japan, Malaysia, Mexico, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey, the UAE, the UK and the U.S., as well as five additional aggregated regional zones.

According to data gleaned from the global survey, the exhibition industry is bouncing back quickly, with the pace of recovery speeding up in 2022 following the continuing impacts of COVID-19 throughout 2021. Not only are 70% of companies expecting to be operating at normal levels from Sept. 2022, but revenues for the first half of 2023 are also expected to reach 87% of pre-pandemic levels (compared to 2019, the industry’s record year to date).

According to Kai Hattendorf, managing director and CEO at UFI, the bounce-back of exhibitions around the world has entered its next phase, and pre-COVID levels will be within reach as early as next year in some markets.

“As the industry manages this amazing recovery, it is also dealing with significant staffing challenges and is working to apply key learning from the pandemic around the digitization of events and services into its business model,” Hattendorf said.

Here are some highlights from the report:

In terms of operations, around six in 10 companies are reporting “normal activity”—up from just three in 10 six months ago. By the end of 2022, seven in 10 companies expect to be operating at normal levels, while only around 5% of companies still expect to have “no activity” from September 2022.
When asked what elements are most crucial to supporting the “bounce-back” of exhibitions, six in 10 companies selected “Lifting of current travel restrictions” and “Readiness of exhibiting companies and visitors to participate again.”
As the two next most influential drivers, “Financial incentive packages (leading to reduced costs for exhibitors)” and “Lifting of current public policies that apply locally to exhibitions” were mentioned by four in 10 and three in 10 companies, respectively.
In terms of 2022 operating profits, 25% of companies globally are expecting either a loss or a reduction of more than 50%, compared to 2019 levels. Overall, 73% of companies received no public financial support during the pandemic, and for the majority of those that did, financial public aid represented less than 10% of their overall costs.
The most pressing business issues reflect how the industry is currently focusing on post-pandemic challenges and opportunities, with “Internal management challenges” (highlighted by 20% of respondents), “Impact of digitization” (17%) and “Competition with other media” (15%) as the most common.
Meanwhile, the “Impact of the COVID-19 pandemic on the business” dropped from being the most pressing business issue to the sixth-most pressing issue (a drop from 19% to 11%), compared to the previous edition of the barometer.

Reopening Exhibitions, Turnover, Operating Profits and Financial Support

Standing out as markets where the majority of companies returned to normal activity levels in early 2022 are Spain, Turkey and the UK in Europe; Saudi Arabia and the UAE in the Middle East; and Australia and Brazil. Globally, the majority of markets reached this point in March 2022.

Notably, as a region, Asia only reached this point in May (with China not expecting to reach this point until October and Hong Kong not until next year).

Globally and on average, companies have seen a significant increase in their 2022 turnover, representing 73% of 2019 levels. They also project this to increase to 87%, using the same baseline for the first half of 2023.

For 2022 revenues, many countries are performing well above average, including:

UK (89% of 2019 levels)
Italy (86%)
Saudi Arabia (85%)
Turkey and South Korea (82%)
Japan (80%)

Contrasting this are the results from Hong Kong (34% of 2019 levels), China and South Africa (both at 57%), and Malaysia (59%).

For projected revenues for the first half of 2023, most markets are expecting at least 75% of 2019 levels, with only Hong Kong (58%) China (69%) and South Africa (72%) expecting lower levels.

In terms of operating profit for 2022, 10% of companies globally are expecting a loss, and 15% are expecting a reduction of more than 50%, compared to 2019 levels.

Several regions include countries with a higher-than-average proportion of companies foreseeing a loss in 2022. They include:

Brazil (13%) in Central and South America
Germany (15%) and Italy (13%) in Europe
Australia (14%)
China (21%)
Hong Kong (20%)
India (17%)
Singapore (20%)
South Korea (11%) and Thailand (40%) in Asia-Pacific

In terms of public financial support, Asia-Pacific and Europe experienced the highest proportions of businesses receiving this funding (37% and 35% respectively).

In all regions, there are significant differences across markets, as can be seen in the following percentage ranges of companies declaring they received “no public support”:

from 10% in Hong Kong to 92% in India (Asia-Pacific)
from 38% in Germany to 86% in Turkey (Europe)
from 58% in Colombia to 100% in Chile (Central and South America)
from 69% in Saudi Arabia to 100% in the UAE (Middle East and Africa)

Key Industry Challenges and Business Issues

According to the survey, management challenges (such as staffing and digitization) are the most pressing industry issues at this time, with 69% of companies currently undergoing recruitment drives

Globally, 69% of exhibition companies are currently undergoing staff recruitment drives, with 62% facing challenges in sourcing the appropriate candidates. In all regions, most companies are working to recruit more staff, while at the country level, China is the only country where a majority of companies are not recruiting.

As far as digitization, 65% of respondents said they have added digital services and products (such as apps, digital advertising and digital signage) to their existing exhibition offerings, especially in the Asia-Pacific region (71%).

Additionally, while 49% of global respondents indicated they have digitized internal processes and workflows, this number was higher in the Middle East and Africa (62%) and Europe (55%).

While 32% of global respondents said they have developed a digital or transformation strategy for exhibitions and products, this number was higher in Central and South America (38%).

Overall, “Internal management challenges” is the key business issue for all regions and the most selected issue for most markets, with staffing being the most prevalent challenge.

Some differences can be seen related to “Impact of digitization,” which is the most pressing issue in Colombia (24%) and Germany, followed by Malaysia and Thailand (20%). Meanwhile, “Impact of the COVID-19 pandemic on the business” remains the top business issue in China (21%) and Hong Kong and Japan (20%).

An analysis by industry segment (organizer, venue and service provider) demonstrates no differences in regards to the three most important issues: “Internal management challenges,” “Impact of digitization” and “Competition with other media.”

Future Exhibition Formats: In-Person and Digital Events

In addition to the 87% of companies that are confident that “COVID-19 confirms the value of face-to-face events”:

31% (compared to 44% in the previous edition, and 46% in the edition prior to that) believe there will be “Less international ‘physical’ exhibitions and, overall, less participants” (with 4% stating “Yes, for sure”, 27% stating “Most probably” and 26% remaining unsure).
61% (compared to 73% and 76% previously) believe there is “A push towards hybrid events, more digital elements at events” (with 19% stating “Yes, for sure”, 42% stating “Most probably” and 20% remaining unsure).
6% (compared to 10% and 14% previously) agree that “Virtual events are replacing physical events,” with 16% being unsure and 57% stating “Definitely not.”

The results are similar across regions, with the exception of a significantly higher proportion of companies in Central and South America (35%) being “unsure” that “Virtual events are replacing physical events.”

The complete barometer report includes dedicated profiles for 28 markets and regions, as well as a list of the 19 UFI member associations that helped conduct the survey. Download the full results here.

The next UFI Global Exhibition Barometer survey will be conducted in December 2022.

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Partner Voices

Women at the Helm: Lisa Messina, Chief Sales Officer, Las Vegas Convention and Visitors Authority

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.