We heard from the German trade association AUMA and its analysis of the effects of Covid-19 to date in this sector, and from the design of exhibition stands and builders with reminders of the interesting basics of the Deutsche Messe dynamo.
A recent survey by AUMA, the German Tradefair Industry Association, regarding the macroeconomic impact on the country resulting from the recent cancellation and postponement of trade shows, has put the cost for this sector at € 3bn.
Tradefair operators and service providers such as stand constructors suffer huge financial losses, AUMA said, with many other business branches affected, mainly the hotel and catering industry, the transportation industry and a number of local suppliers and contractors. “These industries suffer huge losses in sales with a direct impact on employees,” AUMA added, noting that sales losses meant tax revenues would fall and thus impact on the local economy.
The German Institute of Trade Industry at AUMA, for the first time, estimates the consequences of Germany based on the calculation of the Munich-based Ifo Institute for economic research in relation to the macroeconomic relevance of the German trade show in 2018.
The association projects, on that basis, a loss of around € 3 billion for the national economy just by canceling and postponing trade shows in the country. It also affects more than 24,000 jobs and the tax authority will lose more than € 470m of tax revenue, the AUMA study concluded.
This amount does not include lost company sales, which are expected to generate turnover during trade shows. The numbers will be many times higher than the amounts mentioned above and can only be replaced to some extent through other steps. There is no other marketing tool that can represent the company and its products as completely as face to face, AUMA underlines.
Philipp Harting, Chair of AUMA, said there might be a 10% decline in trade industry input into the national economy.
“Almost all plans for trade shows during the following months are null and void. Organizers, exhibitors, visitors and contractors lose the reliability of planning. They have high upfront costs without any prospect of benefit and they suffer severe and acute sales losses. “
AUMA says it must be ensured that the future German economy – and especially small and medium-sized companies – will be able to rely on a very effective instrument, the ‘Messe’ (tradefair) and can continue to work with contractors. . Without government support this would not have been possible, despite the great efforts of the exhibition industry itself.
Germany claims the number one place worldwide in terms of organizing international trade shows, with 160-180 occurring throughout the country each year. Add to the 180,000 exhibitors and 10 million visitors who met at the German exhibition site and the fact that German exhibition companies invested almost half of their B2B communication budget in trade show participation.
The combined expenditure of exhibitors and visitors at trade shows in Germany produces a macroeconomic production effect of more than € 28bn, AUMA added.
Further evidence provided in the AUMA survey on the strength of the sector in Germany is the 230,000 jobs provided by trade shows and tax revenues of around € 4.5bn.
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