Nr_19 AUMA Autumn Press Conference Trade fair industry cautiously optimistic German exhibitors aiming to maintain trade fair budget levels Probable decline in exhibitors and visitors at trade fairs in 2009 28.10.2009 German exhibitors are cautiously optimistic about their trade fair plans for the next two years. In 2010/2011, 20 % of companies intend to take part in more trade fairs than in 2008/2009, with 20 % aiming to take part in less. Exhibitors clearly recognise that if they want to encourage business growth there is no point in reducing face-to-face communication. This was underlined by Hans-Joachim Boekstegers, Chairman of the Association of the German Trade Fair Industry (AUMA), at the association’s Autumn press conference on 11 November 2009 in Berlin. The results are based on a representative survey by TNS Emnid which polled 500 German companies who exhibit at fairs which mainly target trade visitors. Overall, in 2010/2011 companies intend to attend an average of 5.5 domestic trade fairs, only marginally less than in 2008/2009 (5.7). By contrast, German exhibitors plan to take part in less trade fairs abroad. Over the next two years 14 % of the companies polled intend to take part in more trade fairs, 18 % in less. During the same period the average number of trade fairs they aim to take part in will fall from 3.2 to 2.8. Only a year ago they had planned to take part in more trade fairs. AUMA Chairman Boekstegers: “The decline in exports has clearly left its mark“. Over the next two years companies plan to spend a total of EUR 345,000 on taking part in trade fairs, the same amount that was actually spent in 2008/2009. But according to Boekstegers, the amount they planned to spend fell considerably within the space of a year. In the last survey, companies had planned to spend EUR 386,000 in 2009/2010, and when the financial crisis turned into an economic crisis these budgets were promptly reduced. AUMA Chairman Boekstegers: “Clearly the worst of the recession is over and we are now looking towards the future“. 27 % of the exhibitors polled intend to spend more on trade fairs and only 19 % on less. Smaller companies in particular aim to invest more in trade fairs. Boekstegers noted that trade fairs continued to be a highly rated communication instrument. 83 % of the exhibitors considered trade fairs to be important or very important (previously 81 %), with only the companies’ own websites rated even higher (90 %). Sales force activities ranked next (76 %), followed by direct mailshots (57 %), both of these gaining slightly in importance. Instruments with a less direct influence on business, such as events and sponsorship, fell back in the rankings. The share of the trade fair budget spent by B2B exhibitors on communication rose marginally yet again, reaching 43 %. From the exhibitors’ point of view the mid-term prospects for trade fairs as a marketing instrument have hardly suffered. 68 % of the exhibitors polled see trade fairs being just as important in five years, 14 % think their importance will increase, and 16 % think it will decline. Based on this exhibitor survey AUMA forecasts that in 2010 international trade fairs in Germany will retain more or less the same exhibitor attendance as previous events. The trend in domestic participation appears to be almost stable, whereas exhibitor numbers from abroad are likely to drop by around 5 %, with stand bookings likely to decline marginally as well. Due to the unstable economic situation it is difficult to predict visitor trends in 2010. Following a significant decline in certain areas in 2009 figures are now forecast to be lower, although stable. A return to positive trade fair statistics in 2010 is not to be expected at this point. Trade fair industry in marginal decline in 2009 According to Boekstegers, in terms of trade fair business 2009 was the most difficult year since the end of the new economy boom in 2002. For the first time since 2004 all the statistics were negative. According to preliminary figures, some of which are estimates, exhibitor attendance fell by 3 to 4 %. The 2 % drop in German exhibitor numbers actually helped steady the decline. By contrast, exhibitor numbers from abroad fell by 5 %, the result of a relatively large downturn in global trading. Boekstegers: “Considering how widespread the economic crisis is, the effects on the trade fair industry could have been worse. Compared with the situation in the engineering industry we remain almost unaffected.” Boekstegers noted that at around 5 % the figures for rented space had fallen a little more sharply than exhibitor numbers. This was also the result of exhibitors cutting costs, by renting smaller stands, for instance. On average visitor numbers fell by around 8 to 9 %. One of the reasons was significantly lower attendances at consumer trade fairs, for example at car shows. However, looking at certain fairs there were all kinds of developments taking place. Which direction they took depended on the situation in respective industries and on the standing of individual trade fairs amid international competition. Some trade fairs actually achieved double-digit growth in 2009. Trade fairs in Germany were by no means in decline throughout. Overall, AUMA anticipates the following figures for domestic trade fairs in 2009: 154,000 exhibitors, 8.9 million visitors and 5.7 million m² of rented space. According to Boekstegers, the recession made it clear that one could no longer view the economic situation in the trade fair industry as a whole. Correspondingly, those trade fair organisers hosting a wider range of industry were the ones who fared best. What was more, export trade could temporarily not be considered as the trade fair industry’s driving force. Faced with a widespread decline in attendance from abroad the organisers’ main task was to ensure additional efforts to attract exhibitors, in order to maintain the global relevance which their trade fairs frequently held. Developments around the world in 2009 had shown that the leading trade fairs, many of which take place in Germany, were in relatively good health. By contrast, numerous second-tier and third-tier events abroad had experienced difficulties. Boekstegers: “For this reason many German trade fairs have an excellent opportunity to emerge from the recession in better shape than before“. German organisers planning more trade fairs abroad AUMA’s managing director Dr. Peter Neven stressed that the number of trade fairs abroad held by German organisers continued to grow. There were 240 trade fairs in 28 countries planned for 2010. In 2009 the fall in the number of trade fairs caused by the recession was only marginal, from 220 in 2008 to 214 this year. Annually, these trade fairs were attended by a total of 90,000 exhibitors and close to 5 million visitors. A survey completed by the ifo Institute in early October underlined the substantial impact which trade fairs have on the German economy. Every year trade fairs boost German economic output by EUR 23.5 billion. They also ensure that 226,000 people have full-time jobs. Exhibitors spend a total of EUR 7.8 billion, visitors EUR 3.8 billion. To this can be added an indirect impact on all sectors of the entire German economy. Thus the trade fair industry represents one of the most important services sectors in Germany. Press contact: Harald Koetter, phone: +49/30/24 000-140, fax: +49/30/24 000-340, email: h.koetter@auma.de Figures download download download download download download Veröffentlichung kostenfrei Beleg erbeten / Publication free File copy requested Copyright © 2009 AUMA_ Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. Last update: 11/2009