It was on 19 February last that a press release from UFI, theUnion des Foires Internationales indicated that, according to the recommendations of the World Health Organization (WHO) and national authorities, the cancellation of major trade fairs and events in Europe, America, the Middle East and large parts of Asia was premature. Clear instructions were to be given concerning hygiene measures before, during and after the event itself, it was stated at the time.
That was just ten days ago. Since then, clear instructions have been issued by the authorities, and they are now all pointing in the same direction: that of cancelling the events, as the health authorities consider the risk of large-scale contagion to be too great.
The first event to decide to cancel - a decision with far-reaching consequences for local economies - was the MWCthe world's leading mobile exhibition. It takes place every year in mid-February at Barcelonain 2019, bringing together some 1150 names in industry and attracting nearly 110,000 visitors in Catalonia. In a press release, the GSMA, which brings together the industry's leaders, explained the decision on health safety grounds. This decision, taken even before the phenomenon had taken hold in Europe, was justified by the fact that the China plays a crucial role in this industry.
Two of the world's biggest trade fairs have announced their cancellation in quick succession. The 90th edition of the Paris Motor Show Geneva (Geneva International Motor Show) had to be cancelled on 28 February, following an injunction by the Swiss Federal Council to ban events bringing together more than 1,000 people until 15 March 2020, following the announcement of two cases of coronavirus in Switzerland. Every year, the GIMS hosts 600,000 visitors. The decision also affected the Salon de l'Horlogerie of Bale, BaselWorldWith 125,000 visitors, this is the largest trade fair in the world for this sector.
Four days before it opens, the world's largest tourism trade fair is taking place, ITB Berlinwas also cancelled. Some 160,000 participants 10,000 exhibitors from 1,700 countries were expected to attend throughout the week. According to Messe Berlin, the organisers, the conditions imposed by the health authorities - strict checks on every participant, with tests for anyone coming from a contagion region - proved impossible.
In France, the government ban all gatherings of more than 5000 people is also having a major impact on trade show organisers in France, such as the famous "Livre Pariscancelled, and the MIPIM CannesThe exhibition for property professionals will finally take place in June. Visit Paris Tourism Fairscheduled for the end of March, has also been cancelled.
In fact, the authorities' decision will mainly affect the major cities hosting trade fairs, which are generally the most popular. In Berlin, for example rumours of postponement of the ITB Berlin were immediately denied by Messe Berlin, which indicated that the exhibition space was fully booked for the rest of the year and had already announced the dates for the 2021 show. Paris, Frankfurt, London, Barcelona, Milan and Vienna are in similar situations. Only cities with a lower level of exhibition activity - such as Cannes, for example - will be able to postpone the event.
It is now up to each authority to assess the economic consequences cascading cancellations in the short term. The cancellation of a trade show at the last minute also means that hotels are deserted, as are restaurants and other activities linked to the service industry. According to theUFIThe cancellation of trade fairs will have an impact on the post-crisis economic recovery, as it puts millions of businesses around the world in difficulty. Not to mention the losses for the city hosting the event.
Losses of Geneva with the cancellation of the Motor Show are estimated at between 188 and 235 million eurosThe ITB Berlin, for example, generated seven billion euros worth of contracts signed during the show. In total, trade fairs around the world had an impact of 116 billion euros in direct sales and more than 275 billion in direct and indirect benefits in 2018 for 32,000 events worldwide. Certain events can certainly be replaced by a video-conferencing solution in certain cases. But for how long? The coronavirus crisis shows that direct contact is still often essential. This is good news for the business travel industry...
