UFI Report: Exhibition Industry Is on Track to Bounce Back in 2022

February 24, 2022

The recovery of the exhibition industry is accelerating, with global show revenues expected to reach 71% of 2019 levels this year, according to the 28th edition of the Global Barometer report, released on Feb. 24 by UFI, the Global Association of the Exhibition Industry. 

Designed to assess the impact of global economic conditions on the exhibition industry, UFI’s latest research report provides updates on the impact of COVID-19 and perspectives for the industry in the year ahead. 

Conducted in collaboration with 21 UFI member associations and concluded in January 2022, the biannual Global Barometer survey provides insights from 401 companies across 53 countries and regions. The results highlight the quickening pace of the industry’s recovery in 2022, primarily driven by in-person exhibitions and business events following the continuing impact of the pandemic throughout 2021, according to UFI officials.

“The sun is finally rising at the end of a long, dark pandemic,” said Kai Hattendorf, UFI managing director and CEO. “The perspectives for 2022 are brighter and continue to improve quickly. As the industry bounces back, the key issues now facing companies are around internal management issues and the impact of digitization. As the value of physical events is constantly reinforced, we are well on track to achieve pre-pandemic levels of activity.” 

The study also includes outlooks and analysis for 24 focus countries and regions, including Argentina, Australia, Brazil, Chile, China, Colombia, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Mexico, Russia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey, the UAE, the U.K. and the U.S., as well as five aggregated regional zones.

Key highlights include:

  • Globally, the industry expects two-thirds of markets to operate at normal levels in the second quarter and one-quarter of the global market to operate at reduced activity levels.
  • The proportion of companies declaring normal operational activity has increased from less than 2 in 10 in July 2021 to around 4 in 10 between October 2021 and February 2022. This looks set to increase to around 6 in 10 companies expecting normal activity levels starting in March 2022. 
  • The proportion of companies expecting “no activity” dropped from 34% to 16% during the second half of 2021, and only 4-5% of companies expect no activity moving forward from March 2022. The results vary depending on location and are primarily driven by confirmed or expected reopening dates for exhibitions. 
  • When asked what elements would most enable exhibitions to bounce back, 7 in 10 companies selected “Lifting of current travel restrictions,” while 5 in 10 selected “Readiness of exhibiting companies and visitors to participate again,” “Mid-term visibility in terms of public policies, including travel restrictions,” and “Lifting of current public policies that apply locally to exhibitions.”
  • Overall, 53% 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.
  • In line with the previous edition of the Global Barometer, released in July 2021, “Impact of the COVID-19 pandemic on the business” remains the most pressing business issue, although this has dropped to 19% of respondents, from 29% six months ago. 
  • There has also been a shift in the second and third most pressing issues, with “Internal management challenges” (19% of respondents, compared to 9% six months ago) and “Impact of digitalization” (16%, compared to 10% six months ago) forming the top three. 
  • “Competition with other media” is now the fourth most pressing issue (14%, compared to 5% six months ago), while “State of the economy in home market” drops to the fifth spot (12%), from being the second most pressing issue just six months ago (19% of respondents).
  • The three components of “Internal management challenges” are all almost equally represented within the responses: “Human resources” (56% of respondents), “Business model adjustments” (54%) and “Finance” (48%).
  • In terms of future exhibition formats, 80% of respondents (up from 78% six months ago and 64% 12 months ago) agree that “COVID-19 confirms the value of face-to-face events” and anticipate the sector to bounce back quickly (with 38% stating, “Yes, for sure” and 42% stating, “Most probably”). Thirteen percent of respondents are unsure.

The Barometer also surveyed the perception and engagement of the industry on the recently launched Net Zero Carbon Events initiative, with global results indicating that: 

  • 66% of respondents are confident that “This initiative is of key relevance to secure the future of the industry,” just weeks after it was launched.
  • 91% of companies agree that “It is important that the event industry works together to reduce the environmental impact of the components it controls (production of the event).” 
  • 89% of companies believe that “It is important that the event industry works with its clients (participants) and other stakeholders (destinations, transport and accommodation) to reduce the environmental impact of the other components attributed to events.”
  • 1 in 4 companies say they are already on track to achieve Net Zero Greenhouse Gas emissions before 2050.

The next UFI Global Barometer survey will be conducted in June 2022. Download the full report here.  

 

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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.