The exhibition industry in the Czech Republic operates predominantly out of two key cities, Brno and the capital, Prague. Of the two it is Prague, as a city destination, that holds the greatest attraction for overseas visitors. The city is a regular fixture in tourism Top 10s in Europe, due to its varied and rich historical architecture, compact layout, nightlife and, of course, world-renowned breweries.
However, the city doesn’t get quite the same billing as either Brno or its Euro competitors in terms of popularity as a home for international exhibitions and conventions.
Today the Czech Republic’s National Association of Fair and Exhibition Organisers, SOVA, is working with the Government to change that. Plans are in place to boost the stock of Czech organisations involved with international trade fairs from 2012, pumping new life into the city’s visually impressive but ageing venues, and establishing a formalised and cohesive support network for the country’s exhibition industry.
Currently, the Ministry of Industry and Trade supports Czech organisations by combining state and EU funding to bring international experts and journalists to major national fairs.
This may be putting the cart before the horse. Concerted business alliances, revitalised venues and other concessions must be in place if those people attracted to the city are to return. It’s the reason SOVA is putting its efforts into funding what it calls ‘incoming missions’.
“This programme offers specific financial support for international experts who attend local fairs at the invitation of confederations, professional associations and chambers of commerce,” says Jan Novotny, president of SOVA and Incheba business director. “The funds invested in this way have a double positive effect: negotiation and execution of contracts is being supported, together with prospective exports of Czech producers.
“At the same time the fairs can benefit from the presence of top experts. This year 24 local fairs will be supported in this way; of course we try to make sure that this number and funding limits grow.”
However, while SOVA is looking to develop the trade fair industry outside Prague and Brno (there are six regional trade fair facilities in the Czech Republic), it is those two cities that will take the lion’s share of the international exhibitions.
In this context SOVA plays a supporting role. For example, it recently started cooperating with the Association of Regions of the Czech Republic to strive for maximum transparency of the Czech trade fair industry.
Prague is home to two main exhibition venues. Prague Exhibition Grounds, home to the impressive secessionist tradeshow venue Incheba, offers 13,800sqm of space just north of the city centre. The venue has been operating since 1891, and counts among its major exhibitions the Prague Book Fair, Holiday World and dental show Pragodent.
Incheba, with its echoes of the Musee d’Orsay in Paris, comprises three main exhibition halls: a central 1,800sqm hall, flanked by two wings 3,000sqm and 4,800sqm respectively.
Admittedly not the most hi-tech venue, Incheba, located just two tram stops from Municipal House in the centre of the city and a single metro stop, is completed by four other multipurpose pavilions (two at 1,900sqm and two at 850sqm) surrounding the central Krizik Fountain. There is also the 2,200 Tesla Arena, although this is now an ice-hockey arena run under separate management.
Perhaps some criticism for the venue lies in its need simply for a fresh coat of paint. But this is an issue that has been picked up by the current management, which is discussing significant investment from the Government. Some of this will potentially go towards restoring the roof of the rebuilt west wing to its original height.
A little further from the town centre is the Exhibition Centre Prague Letnany (PVA).
With a little over 34,000sqm of space across nine halls it is larger than Incheba, although it offers significantly less distinctive exhibition space.
Among the biggest events organised at PVA are the International Building Trade Fair For Arch, Aquatherm, motorbike show Motosalon 2011, and living, renovation and building show For Habitat.
According to general manager Jaroslav Cížek, PVA is being modernised. Two new halls, 3 and 4, are under construction and expected to increase exhibition space by 10,000sqm, alongside the introduction of other services including improved conference facilities.
ABF, the company that operates PVA, is hunting for overseas business by establishing regular communication with embassies, foreign commercial chambers, unions and associations. ABF is in regular contact with the foreign Trade Fair Administrations and there are foreign representatives of the ABF abroad, in places such as Bulgaria, China, Poland, Slovakia and Turkey.
According to Cížek, the trade fair industry is not yet perceived as a “support to business” in the Czech Republic. “There is neither support from the Prague City Hall, nor from the State sector. This is an obstacle for investors,” he opines. As a result, ABF is using private sources to fund PVA’s modernisation.
To Prague City Council’s credit however, some initiatives are coming through. It recently approved a new incentive for exhibition and congress organisers in the form of free public transport for events with more than 500 participants. The support is specifically for organisers approved by the council, working on events featuring 20 per cent overseas visitors or delegates, spending a minimum of two nights in Prague. Public transport in Prague is typically used by 10-15 per cent of all exhibition and congress participants.
SOVA officials belong to committees and boards at the level of ministries, or the Czech Chamber of Commerce and similar professional associations. It is state involvement that will be crucial to the association’s success in establishing Prague as a true contender for international exhibitions in Europe.
One of SOVA’s greatest challenges for the upcoming period is pushing through what Novotny calls “proper and honest” business relations, with a special focus on fighting against discounting. ”Unfortunately, these efforts for unacceptably low rent for exhibition areas have emerged in consequence with the global economic recession,” he points out.
As ever, close involvement with other national and international associations such as UFI is key. “From among the global organisations it is UFI and the German AUMA where we find most inspiration,” says Novotny. “We also have good contacts with our colleagues in Poland who we recently assisted in negotiations with their Government authorities.”
For its size, the Czech Republic could still emerge as an important fair trade centre in Europe. More than a million square metres of exhibition space is sold at local fairs, its major trade fairs such as the International Industrial Trade Fair, Holiday World, Ampér and Aquatherm are attended by people from all over the world, and its visa entry legislation is not restrictive.
And despite a number of persistent problems, namely cross-border accounting for value added tax, Novotny remains positive that Prague, and the rest of the Czech Republic, will soon join Europe’s best-known destinations for international exhibitions.
“The effects of subsiding global economic crises have brought about the question of internal quality of fairs,” he says. “The crisis still has more of a negative impact, but we can see one major benefit: the market is being cleansed, some events have disappeared that were more or less just passively profiting from the work and success of others. And the key point – all fair organisers had to take a close look and consider the quality of the services they provide to their customers.
This, he says, includes a “better planned field definition/nomenclature and choice of focus through improved cooperation with professional confederations and associations to the content and structure of follow-up programs and conditions for business meetings”.
Because it’s not just Prague’s expo centres that offer the greatest benefit to organisers. It’s the package that comes with putting on an event in Prague that really adds value, and tradeshow visitors would be hard-pressed not to leave the city with a long-lasting impression.
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