Although venue management company SMG Europe prides itself on a fleet of sports and entertainment venues, it also runs its share of exhibition venues and has recently expanded its portfolio of venues with several conference and exhibition centre projects.
However, while some commentators continue to insist that the European market has reached saturation and levelled off, SMG Europe’s director of new business development Tracey Short says it’s a good time to be a venue manager in Europe.
The present
In a surprising twist, the austerity measures and cut-backs being rolled out by many European governments have created a commercial opportunity for private venue managers such as SMG.
“As a private venue operator, SMG Europe has seen a dramatic increase in the number of enquiries over the past year,” said Short. “This is partly due to the austerity measures being put in place and the desire to investigate opportunities to transfer publicly-funded venues to the private sector.” Short said when a fiscally stricken government looks to make cuts, it sometimes goes to its venues to trim the fat. A publicly-funded venue owner can save money by employing a management company like SMG, which knows the right strings to pull to cut deals with suppliers.
“It’s a trend I started to see in the US before I left,” said Short. “A lot of the local jurisdictions were having their funding cut so they were looking for other options for some and were looking to see if they could be run more effectively by a private company.” Although many publicly-funded buildings are very well-run, they don’t have access to the same economies of scale as a global company like SMG when it comes to supplies and services, she claimed.
“Sometimes we are able to leverage our relationships with promoters where we can get improved deals because we are operating in multiple venues,” said Short.
“We have seen it before so we know what traps to expect and avoid.”
Short said the European exhibition market is witnessing a shift from pure exhibition venues to buildings with integrated conference space. “Associations require exhibitions as a major revenue generator for their business, but the increasing demand for quality meeting content means the optimal venue combines flat floor space and meeting facilities.”
The future: Turkey and beyond
One example of this for SMG is unfolding in Istanbul. The company hopes to capitalise on the second-tier European exhibition markets trying to boost their national infrastructure. It will operate the multi-use Ora Arena and Convention Centre (10,500sqm) in Istanbul, Turkey and the Wroclaw Stadium and Conference Centre in Wroclaw, Poland when they open later this year.
“Poland continues to be characterised as an emerging market because until recently they have not had venues that met the standards and specifications demanded to host global events,” Short said.
Although some commentators say the European market is saturated for organisers looking to bring their shows to new territories in Europe, the pace of venue construction suggests there is still strong enough demand to justify expansion. Combined with the trend of governments handing venue management to private companies, now is a promising time for companies like SMG to strengthen their European foothold.
Any comments? Email exhibitionworld@mashmedia.net
