Staffing issues, increasing costs and the impact of world
events are the biggest challenges facing the sector, according to the Business Visits and Events Partnership (BVEP).
BVEP began collecting data for the quarterly UK Events Business Barometer from August 2021, with the aim of providing a regular and consistent report of the business climate in the sector.
Writing in the report about the first full year of data, John Gallery, BVEP research lead, said: “After the upheaval
caused by Covid 19, the results track the uncertainty experienced during the
months of the relaxation of restrictions. As we were coming through the latter
part of the pandemic situation businesses showed resilience in returning to
growth and ‘normality’ but with new challenges when compared to 2019.
“Staffing issues, increasing costs and the impact of other
world events has increased the challenges faced by the UK events sector in
2022. With a new government forming and the change of sovereign at the time of
writing, this is a significant period of change.
“Shifts in policy will doubtlessly affect our industry and some
of the measures that emerge will no doubt be reflected in our regular study as we begin the next
year of the Business Barometer.”
More than three quarters of respondents reported business
levels as being the same or on the increase in the current quarter (Aug-Oct 2022).
This is the most confident period since the start of the survey, the
uncertainties of the previous three quarters having eased for short term
expectations.
Gross margins have declined in value over the year, with 44 per
cent of respondents reporting decreases in the three months to the end of July 2022
and just 11 per cent reporting increases.
Employment levels during the year have followed the demand
cycle to a large extent, with rises being recorded in the six months from November to April.
Employment levels stabilised in the May to July period with most businesses
reporting the same staff levels for the next six months.
Gallery added: “This indicates a period of stability in the
summer months but in the subjective commentary many businesses are still
finding the right staff to be a challenge.”
The two key growth areas were in person events and conferences, while
hybrid and online meetings were the top two areas of decline. Around two thirds of respondents said they were “quite confident”
about business prospects in the next 12 months.
