UFI Survey: Downturn's Impact Not Evenly Felt

While there is little doubt the global economic recession is having an impact on tradeshow managers around the world, the impact seems to be more serious in the United States than in other countries.

That is one of the conclusions of a new Economic Crisis Barometer prepared by UFI, The Global Assn. of the Exhibition Industry. UFI surveyed its members from around the world, as well as members of the Society of Independent Show Organizers in the United States.

While 63 percent of the more than 200 respondents in 44 countries said their business declined last year, the percentage was higher (71 percent) in the Americas. Sixty percent of European organizers said their business declined last year, and the figure dropped to 25 percent for those working in the Middle East and Africa.

When asked if they expected at least a 10-percent decrease in revenue in the first half of this year, 71 percent of Americans said they did. Only 50 percent of those in the Middle East and Africa said the same thing.

“I'd say there were no surprises from America,” said Lew Shomer, SISO executive director. “The surprises were from Europe and Asia. The impact has been less in some parts of the world than others.”

That assessment was confirmed by others.

Michael Duck, senior vice president of CMP Asia, said primarily of the Chinese market, “Results have been quite encouraging to date. Especially we see larger established shows being resilient.”

And Marco Giberti, president of Reed Exhibitions Latin America, who did not participate in the survey, said of South America, “Based on important growth in some domestic markets, like Brazil, we should be more protected from a severe crisis like we are experiencing in the U.S. and some European countries.”

UFI Research Coordinator Christian Druart said the survey will be conducted on a quarterly basis “for as long as the crisis continues” in order to gauge the intensity of the economic problems the global exhibitions industry is facing.

While respondents throughout the world were generally pessimistic that a turnaround could be expected this year, more seemed to believe that 2010 and 2011 would be better.

Globally, 80 percent expected a turnaround in 2010. Americans were only slightly less optimistic, with 77 percent. The most optimistic about the future were Asian organizers (88 percent).

Respondents were asked if the global economic downturn was being exaggerated by the media. While the global average indicated 41 percent believed that to be the case, only 25 percent of the Americans thought so. Those most pessimistic about the media's coverage of the economic downturn were in the Middle East and Africa, where 50 percent thought it was being overplayed.