Tradeshows Down Under: Looking for Space to Grow

By Gary Tufel -- Tradeshow Week, 9/27/2004

The Exhibition & Event Assn. of Australasia is working to expand the Australian and New Zealand exhibition industries, but it faces a number of challenges.

Among them are a lack of exhibit space and little cross-pollination between the two countries' exhibition industries, according to EEAA President Bryan Humphris and CEO Mark Baker.

The situation is most pronounced in New Zealand, where fairgrounds are still the norm. About 1,300 miles away in Australia, where the industry has been growing, many of the largest cities boast state-of-the-art convention centers.

However, officials are still working to quench demand for more exhibit space. Perth will soon open its first exhibition center, and the Gold Coast recently opened a 3,000 square meter (32,300 square foot) facility. Adelaide doubled its exhibit space by adding 3,000 sq. m., and Melbourne is considering adding another 15,000 sq. m. (161,400 sq. ft.) to its existing 30,000 sq. m. (323,000 sq. ft.).

Officials are studying whether there's a need to expand the Sydney Convention & Exhibition Centre. Right now, Pack Print is held in Melbourne because Sydney can't accommodate it, said Humphris.

"Since these buildings are all government funded, there needs to be a very strong case made to convince the government of the need to expand," Humphris said. "Demand comes first. That's the cycle here. Our growth is being impeded by the lack of new venues."

For example, such shows as the Sydney Intl. Motor Show, which attracts more than 300,000 visitors, could be even bigger if there were more space.

Humphris said the information technology sector has been hurting in Australia, heavily impacting such shows as CeBIT Australia. Segments doing better include printing, packaging, catering and nursing.

Reed Exhibitions, dmg world media, Australian Exhibition Services and Exhibitions & Trade Fairs are Australia's major players. There are a number of association shows, most of them national and biennial. Although typically managed by the associations, private organizers are increasingly taking a management hand in association shows. Among the top organizers, acquisitions outnumber launches.

Consumer shows are a vital part of the scene, comprising about 62 percent of all Australian shows and usually held in the capital cities. Most exhibitions are local rather than national, and annual rather than biennial.

Elizabeth Falloon, executive vice president of dmg world media Australasia, has seen a radical change in the Australian exhibition industry in the past five years. Prior to that, it consisted of many small operators, and one large operator, Reed. Then dmg and Diversified came in and shook things up.

"The corporations created a different way of life in the exhibition industry in Australia," she said.

She noted that pipe and drape is not seen at Australian shows; all exhibits are hardwall. "The industry has really grown a lot, and our contractors are very up-to-date, but it wasn't this way 10 years ago," she said.

One industry impediment is Australia's small population. But Falloon said that Australia still holds its own internationally. "Our shows could grow, but they're capped in terms of both space and dates. It would be fantastic to get relief there. Sydney and Melbourne are both working on this," she said.

Humphris noted that a few international events, such as dental and veterinary shows, are held in Australia. But by and large, Australian shows don't attract many overseas buyers because the country's manufacturing base is small. National shows typically attract about 30 percent of their attendees from out of state, and perhaps 5 percent from overseas. The percentages for exhibitors vary depending on the industry. It's easier for U.S. companies to enter the Australian market than vice versa; expect more American exhibitors at Australian shows than Australian ones in the United States.

Bev Malzard, editor of Australia's Convention & Incentive Marketing magazine, said one of the most significant changes in the industry is that exhibition companies are now being audited as a result of exhibitor demand. "The exhibitors need to know who is actually coming through the doors. The quality of the visitors needs to be assessed in order to quantify the true potential of buyers," she said.

All major exhibition companies that belong to the EEAA are using audits, Malzard added. "Up until now, numbers haven't always promised good business and the aim is to rectify the process of finding out 'who's who at the zoo' in the future with the auditing process."

She said that the Australian exhibition industry is healthy, and major exhibition companies appear to be developing and buying more shows with the potential to grow.

Humphris sees EEAA in its best position ever, with a full-time staff of three, a public relations consultant and a national conference now managed in-house, as well as a new three-year strategic plan. But it needs funding to meet its challenges.

EEAA's 220 current members now include 17 from New Zealand, said Baker, including the majority of exhibition organizers, venues and service organizations in the exhibition and event industry throughout Australia and New Zealand. Its annual membership growth is 8 percent, and although the major exhibition firms are EEAA members, many companies are still not. Humphris predicted a 15-percent increase in membership over the next year.

The EEAA is implementing training, a major issue, for all industry segments. Currently, it is presenting seminars on spam and offers educational programs year-round.

Its global focus includes a constantly developing relationship with the Intl. Assn. for Exhibition Management; Humphris has a continuing dialogue with IAEM president Steven Hacker. EEAA has also joined UFI, uses an Assn. of Exhibition Organizers marketing campaign and is considering a project with the Center for Exhibition Industry Research.