CEIR Preliminary Projections on Economic Impact of COVID-19 on U.S. Exhibition Industry

March 18, 2020

The Center for Exhibition Industry Research released preliminary projections today that outline the impact that the novel coronavirus pandemic will have on the U.S. B2B exhibition industry in the coming months. According to CEIR officials, these calculations were obtained from data it collected from exhibition and event organizers who have cancelled their events.

“We have been closely monitoring the progress of COVID-19 in anticipation of how it will impact our industry for weeks,” said Cathy Breden, CEO of CEIR. “Data collection and analysis takes time, and we are pleased to have enough information now to answer some of the questions we have been receiving.”

CEIR reports that there are about 9,400 B2B exhibitions held in the U.S. annually. The updated figure for the industry’s total impact on the U.S. GDP is $101 billion in 2019, up from $97 billion in 2018.

As of March 15, 50 B2B trade shows and events have announced cancellations, resulting in a total loss of 5.2 million NSF and $318 million in show organizer revenue. When considering the direct spending of exhibitors and attendees, CEIR projects the loss to the economy to be around $1.8 billion. 

New cancellation announcements are appearing daily, which is likely to ramp up following the CDC’s March 15 recommendation that events attracting 50 or more people be cancelled for the next eight weeks. On March 16, the Trump Administration escalated guidelines, advising people to avoid gatherings of more than 10 people.

CEIR officials went on to emphasize that simply counting the number of announced cancellations published in news reports significantly underestimates the actual number of event cancellations, since many small- to medium-sized event cancellations fly under the media radar. This is especially true for events held in hotels, they added.

With about 2,500 B2B events held between March 1 and May 15 each year, CEIR believes that about 50-80 percent of those events have already canceled or will likely cancel in the coming weeks. Based on the cancellations reported as of March 15, CEIR calculates that this will result in a loss of 41 to 65 million NSF and $2.3 billion to $3.6 billion in show organizer revenue. Combined with direct spending by exhibitors and attendees, CEIR estimates the total loss to the economy to be between $14 billion and $22 billion.

However, not all of CEIR’s projections were bleak.

“At this point, the decline in the exhibition industry is a one-off retraction of the industry’s size,” said CEIR Economist Allen Shaw, chief economist for Global Economic Consulting Associates. “Since this is a transitory event, we expect a full recovery for the exhibition industry in 2021.”

According to Carrie Ferenac, 2020 chairperson of the CEIR board of directors, the information CEIR compiled can be a helpful resource for helping federal legislators understand the economic impact of the B2B exhibitions industry.

“The information is being shared with industry associations who are advocating on the importance of trade shows to the U.S. economy, and the tremendous negative impact COVID-19 has had on organizer companies, venues and service providers, and to the people they employ,” said Ferenac.

For a more in-depth analysis by Shaw on the market effects of COVID-19, go here.

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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. There’s no ceiling to what you can do when you’re doing events in Las Vegas.  Allegiant Stadium As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward? Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. 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.