Dr James MorganNew research from the University of Westminster revealed that 40 per cent of survey respondents implied that the business they are involved in may not exist in its current form within the next year.
The global study of 675 event professionals from 59 countries aimed to understand global sentiment into the predicted impact of Covid-19 on the events industry and the stance that some organisations may take in the future.
The research explored the three key areas of staffing, premises and capital management, all of which have a strong influence on business survival in a recession.
The report indicated significant staff lay-offs and furloughs, with more than 25 per cent of respondents having furloughed full-time employees, while 13 per cent have made job cuts.
There was also significant evidence from respondents that downsizing, sharing and the relocation of premises to decrease premises costs were taking place throughout the sector.
“We have seen some parallels to recession planning from 1991 and 2009 where businesses have had to take similar actions to stay afloat,” said Dr James Morgan, principal lecturer in event design and lead researcher at University of Westminster.
“This includes redundancies and business closures. What is different about this ‘health recession’ is that working from home has become habitual on a large scale. This amplified factor needs to be taken account of in the wider economy as it has negative implications for the commercial property market.”
The report also suggests that the events industry is not well-positioned to see demand returning to the levels experienced in 2019, with one-third of respondents suggesting that demand will significantly decrease due to the pandemic. A further 66 per cent of respondents said that a downward change in pricing is needed for the sector to survive.
“Many companies are taking advantage of government loan schemes or approaching banks for loans,” added Morgan.
“However, there is anecdotal evidence that as business valuations decrease in 2020, cash-rich companies may start to acquire devalued companies, or merge both vertically with a supply chain and horizontally with competitors."
A desire to travel led Holly Patrick to the business meetings and events world and she’s never looked back. Holly takes a particular interest in event sustainability and creating a diverse and inclusive industry. When she’s not working, she can be found rolling skating along Brighton seafront listening to an eclectic playlist, featuring the likes of Patti Smith, Sean Paul, and Arooj Aftab.
