UFI Report: Global Exhibition Industry Remains Stable

July 18, 2018

UFI, the Global Association for the Exhibition Industry, has released the latest edition of its flagship Global Barometer research, taking the pulse of the industry.

One of the key findings: for the first time in the past 10 years, all four global regions have reported a positive turnover development simultaneously.

In terms of operating profit, most companies maintained a good level of performance in 2017, and more than 40 percent of companies from all regions declared an increase of more than 10 percent, compared with 2016.

However, the prospects for 2018 are currently lower globally.

"We are pleased to see that the growth for 2018, anticipated 6 months ago, appears to be confirmed, and that this is the case in all regions of the world; at the same time, geopolitical uncertainty and specific industry shifts lead to cautious expectations in terms of profits,” said Kai Hattendorf, UFI Managing Director / CEO.

He added, “We also notice that a wide range of companies around the world are embracing the digitisation of our industry," 

Results also indicate that the top business issue for the industry remains the “state of the national/regional economy” (listed by 24 percent of all respondents), ahead of "Competition within the industry" and "Global economic developments" (listed by 18 percent of each respondents).

For the second year running, the barometer included a section focusing on the state of digital conversion in the industry. The headline “Digitisation Implementation Index - DIX”, has moved slightly up to +32 (up +1 from last year). 

This latest edition of UFI’s semi-annual industry survey was concluded in July 2018 and includes data from a record 312 companies in 55 countries.

The study delivers outlooks and analysis for fourteen major markets: Australia, Brazil, China, Germany, India, Indonesia, Italy, Macau, Mexico, Russia, South Africa, Thailand, the UK and the US. In addition, four aggregated regional zones have been analysed.

Regarding turnover for the two halves of 2018 and the first half of 2019, all four global regions report that a majority of companies declare an increase in turnover, even when taking into account the companies who are uncertain about their turnover for the coming year: this is the case for around 7 companies out of 10 in the Americas, in Asia/Pacific and also in Europe.

In addition, in Europe, more than 8 companies out of 10 have positive expectations for the first half of 2019. In the Middle East and Africa the levels are a bit lower (6 companies out of 10, with higher levels of uncertainty).

In terms of operating profit, 44 percent of companies from all regions declared an increase of more than 10% for the year 2017 compared to 2016. The highest proportions of companies declaring such an increase are observed in India (72 percent), Germany and the U.S. (70 percent).

However, the prospects for 2018 are currently lower globally, with 37 percent of companies expecting a profit increase of more than 10 percent.

Thus, while there is still a very healthy share of companies (35 percent to 45 percent) that, in each of the markets analysed, expect their profits to rise by more than 10% in 2019, this share of optimistic companies is generally lower than one year ago. 

This indicates a rather more cautious approach in light of international developments.

With digitisation accelerating in businesses around the world, this edition of the Global Barometer survey included questions on the state of digital activity for the second time. The results of this edition indicate that the “Digitisation Implementation Index” (DIX) towards a “full digitisation” is now at 32 globally, up slightly (+1) from last year's inaugural research.

Sixty-four percent of survey participants reported that they have added digital services/products (like apps, digital  advertising, digital signage) around existing exhibitions and 54 percent stated that they have changed internal processes and workflows to be more  digital.

Germany, the U.K. and the U.S. are identified as the exhibition markets who are currently most active in the digital transformation process, with respective DIX scores of 46, 44 and 42.

The 21st Global Barometer Survey, conducted in June 2018, provides insights given by 312 companies from 55 countries. It was conducted in collaboration with 12 UFI Associations Members: AAXO (The Association of African Exhibition Organizers) and EXSA (Exhibition and Events Association of Southern Africa) in South Africa, AEO (Association of Event Organisers) in the UK, AFIDA (Asociación Internacional de Ferias de América) for Central and South America, AMPROFEC (Asociación Mexicana de Profesionales de Ferias y Exposiciones y Convenciones) in Mexico, EEAA (The Exhibition and Event Association of Australasia) in Australia, IECA (Indonesia Exhibition Companies Association) in Indonesia, IEIA (Indian Exhibition Industry Association) in India, MFTA (Macau Fair Trade Association) in Macau, SISO (Society of Independent Show Organizers) in the USA, TEA (Thai Exhibition Association) in Thailand and UBRAFE (União Brasileira dos Promotores Feiras) in Brazil.

In line with UFI’s objective to provide vital data and best practices to the entire exhibition industry, the full results can be downloaded at www.ufi.org/research

The next UFI Global Barometer Survey will be conducted in December 2018. 

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Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors. TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders. Lisa Messina, Chief Sales Officer, LVCVA With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role? Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”  These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. 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As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees. What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events? We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.  Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city. Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.  What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization? We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.  What are your favorite ways to recharge? My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.  Valley of Fire What advice would you give to women following leadership paths in destination marketing? I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.   This interview has been edited and condensed. This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.