UFI Report Estimates $27.7 Billion Current Negative COVID-19 Impact on Trade Shows Globally
March 10, 2020
UFI, The Global Association of the Exhibition Industry, released global numbers that reflect due to the spread of COVID-19 the impact that trade show postponements and cancellations are having for both the exhibiting companies, as well as for the trade show industry around the world.
“Globally, the fact that more than 500 trade shows have not taken place in recent weeks is creating an escalating ripple effect for whole industries,” said Kai Hattendorf, UFI managing director/CEO.
In the United States alone, with large trade shows such as The Inspired Home Show (est. 800,000+ net square feet) not taking place in Chicago and HIMSS (est. 600,000+ net square feet) canceling last week in Orlando, among several others, there have been considerable losses already.
According to UFI calculations, based on the 4.4 million total net square feet of shows that were postponed and canceled since the end of February on the TSNN Top 250 trade show list, the total negative economic impact so far is $1.2 billion, which translates to 11,200 jobs.
On every showfloor, business gets done.
Based on UFI data, the orders that exhibiting companies currently are not securing so far add up to $ 27.7 billion globally.
Of this, UFI estimates lost orders of around $14.8 billion in Asia/Pacific, $11 billion in Europe and $1.9 billion in the U.S.
As additional events continue to be postponed, these numbers will rise further in the weeks to come.
As an industry, the exhibitions generate a total economic output of $26.2 billion per month globally on average, translating into more than 270,000 jobs.
Besides the economic impact losses in the U.S. of events not taking place, in Europe and Asia/Pacific total losses so far are $16.5 billion. Hardest hit is Asia/Pacific, where the impact already is reaching more than $9.6 billion.
In Europe, with an ongoing wave of postponed and/or cancelled shows, the impact is reaching $6.6 billion. In addition, $1.2 billion so far in the U.S., as mentioned higher. Calculations for other regions are underway.
Calculations come from the UFI/SISO Global Economic Impact reports for the impact on the industry, and UFI estimates for the "business generated for exhibitions companies (ROI of 8 on the short term).”
Many of the events that are not taking place this quarter are being postponed and rescheduled to take place later in the year. This may help to reduce the mid-to-long-term impact, according to UFI officials.
“But even short-term postponements have an immediate impact because they delay scheduled business and revenues. This poses an existential risk, in particular for small and medium-sized companies,” said Christian Druart, UFI research manager.
“These numbers stress the critical importance exhibitions play in any economic recovery – marketplaces and meeting places are the fastest fast track to drive any economic recovery,” Hattendorf said.
He added, “We rely on the joint efforts from policymakers and global leaders to ensure that the companies that organize these events, creating those necessary market and meeting places, will be able to continue to fulfill that role in the future. All of these companies are already suffering massively under the current wave of postponements and cancellations.”
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
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