Germany: Cancelled Trade Fairs Likely to Increase the Unemployment Rate

Germany: Cancelled Trade Fairs Likely to Increase the Unemployment Rate

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Many commerce festivals in Germany have been cancelled because of the present corona disaster. One of the primary ones was ITB Berlin, which was cancelled solely 5 days earlier than it ought to open its doorways. Now, it was introduced the Frankfurt’s IMEX is cancelled as properly.

The enterprise occasion was initially supposed to deliver collectively exhibitors and patrons within the Frankfurt Fair and Exhibition Centre from 12 May to 14 May 2020. The subsequent IMEX will happen from 25 May to 27 May 2021.

Since the annual gross sales quantity of commerce honest organizers in Germany is round four billion euros and the MICE trade is very essential for the financial system, the present disaster is predicted to hit the sector laborious, in line with the German Association for Industry Communication (Bundesverband Industrie Kommunikation e.V.). (BVIK)

With round 10 million guests to nationwide commerce festivals, Germany is among the world’s most essential commerce honest areas. According to the affiliation, 178 nationwide commerce festivals had been counted – together with well-known main occasions such because the Hannover Trade Fair and numerous smaller, extremely specialised main commerce festivals.

For the capital items trade, postponements and cancellations imply the lack of one in all its predominant order channels. Numerous corporations within the exhibition stand development, lodge and catering sectors are threatened with critical financial harm.

The BVIK – Industry Association for Communication and Marketing – expressly warns of the immense, nonetheless unforeseeable, however typically existence-threatening penalties of the cancellations and postponements of main occasions of this sort. The roughly 220 company members of the affiliation are instantly affected and face challenges which might be partly tough to unravel. The Research Institute for Exhibition and Live-Communication (R.I.F.E.L.) has put the harm within the exhibition development sector alone at 670 million euros, and the overall harm to the commerce honest trade at over 1.6 billion euros.

“It is to be feared that many suppliers will not survive the crisis and that jobs will be lost on a large scale in Germany,” warns Rainer Pfeil, Managing Director, bluepool GmbH Trade Fairs & Events and Board Member of BVIK.

TRADE FAIRS CANCELLED AND POSTPONED – GERMAN ECONOMY FEELS THE LOSSES

Almost 40 % of the annual advertising and marketing funds of business corporations has been continuously flowing into the commerce festivals over the previous few years, because the BVIK research “B2B Marketing Budgets” exhibits. Online channels are growing, however German SMEs proceed to depend on private contact with prospects out of conviction.

From the viewpoint of the trade, it must also be borne in thoughts that the dates of main main commerce festivals signify essential milestones within the product improvement cycles of business corporations. All communication is geared to this and should now be digitally bridged at the very least for 4 months, as within the case of the Hanover Fair, which is cost-intensive. But many advertising and marketing managers within the BVIK community doubt whether or not digital commerce festivals will obtain the identical success as actual festivals. Cancelling main occasions akin to commerce festivals due to this fact not solely means immense harm within the advertising and marketing sector, but in addition in gross sales because of a scarcity of orders from the commerce honest enterprise.

The further prices on one aspect and the actually anticipated lack of gross sales because of misplaced commerce honest orders on the opposite aspect will in no way depart the medium-sized trade and the German labor market unaffected.

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