The 20th edition of UFI’s Global Barometer for the exhibition industry, published 30 January, reported strong results for 2017 and very good prospects for 2018 in terms of turnover growth.
This latest edition of the barometer added three new partners to UFI's semi-annual industry research: EEAA (The Exhibition and Event Association of Australasia); IECA (Indonesia Exhibition Companies Association); and MFTA (Macau Fair Trade Association).
“….These partnerships have enabled us to add a new country profile for each of these markets,” said Kai Hattendorf, UFI managing director/CEO.
Results also indicate that a very large majority of companies are looking to develop new activities, while a significant proportion is also considering investments in new geographical markets. Revenue generated from new business models is expected to rise considerably in the coming years, as the exhibition industry embraces evolving business models.
“Globally, the exhibition industry is growing at a healthy rate. Companies around the world are looking into expanding their activities within and beyond their present activities and geographic borders. In parallel, new business models are under development, and many players in the industry expect them to deliver a relevant share of their company's revenues in the coming years,” Hattendorf added.
Turnover and operating profit
Globally, 70 per cent of companies declared an increase in turnover for the second half of 2017, while 72 per cent said they anticipate an increase for the first half of 2018 and 77 per cent for the second half. Companies in several markets are well-positioned to out-perform these previsions in 2018: Brazil, Germany, Macau, the US and the UK.
A significant level of uncertainty still exists for many countries in Asia, including most parts of China.
In terms of operating profit, most markets maintained or improved a good level of performance in 2017: 44 per cent declared an increase and 43 per cent a stable profit. A majority of companies declared an increase in their operating profit in 2017 in nine of the markets analysed: Brazil, China, Germany, Indonesia, Macau, Mexico, the Middle East, the UK and the US.
When asked about the revenue share expected from new business models (such as different event formats, digital revenues or marketing services), a majority of participants responded that they expected this revenue to represent between 5 and 10 per cent of total revenue in five years’ time, and more than 10 per cent in ten years’ time. One quarter of the companies were expecting these new business models to generate a share of more than 25 per cent of their revenues in ten years’ time. Most notably, an above-average share is expected in the following markets: Australia, China, India, Indonesia, Macau, Mexico, Thailand, the UK, and the US.
Top business issues
The top business issues for the coming year remain the “State of the economy in the home market”, (for 25 per cent of the respondents), “Competition from within the industry” (21 per cent), “Global economic developments” and “Internal challenges” (16 per cent each). This means that "Global economic developments” have become less important than in previous years. Detailed results indicate that “Competition from within the industry” is the top business issue in the following four markets: China and Macau, India and Germany.
Strategic priorities
In terms of the range of revenue-generating activities, a large majority of companies intends to develop new activities in either the classic range of exhibition industry activities (venue/organiser/services), other events (live or virtual), or in both of these areas: 72 per cent in the Middle East & Africa and 78 per cent in Asia/Pacific.
Americas and Europe
In terms of geographical exposure, an average of 4 out of 10 companies declared their intention to develop operations in new countries, and this is the case for a majority of companies in five of the 17 markets analysed: the UK and the Middle East (67 per cent), China (57 per cent), India (53 per cent) and Germany (50 per cent).
Size & scope
This latest edition of UFI’s industry survey was concluded in January 2018 and includes data from 290 companies in 53 countries. This constitutes the largest-ever number of participants in this global survey. The study delivers outlooks and analysis for 14 major markets: Australia, Brazil, China, Germany, India, Indonesia, Italy, Macau, Mexico, Russia, South Africa and Thailand, Thailand, the UK and the US. In addition, three aggregated regional zones have been analysed.
