UK business events are set to be worth £27.6bn by 2026, a new report has claimed. This represents a 43 per cent increase in the value of the sector compared to 2019, according to the research by pro-cities advocacy group Cities Restart.
The report, titled The Importance of International Conferences and Business Events to Restarting City Economies, says that spending on international conferences and business events for the UK is estimated to have been worth £19.4bn in 2019. Despite spending on business events in 2020 plummeting by around 80 per cent due to the pandemic, by 2026 it is forecast to hit £27.6bn.
The analysis also found that inbound international delegates to international conferences and business events are significantly more lucrative than domestic delegates. The research shows that in 2019 the average international delegate was worth £864, whereas the value of an average domestic delegate was £154. But by 2026 this is forecast to grow to £1,078 for an international delegate and £180 for a domestic delegate, making international delegates worth six times more than their domestic counterparts.
Immediate challenges
However, the research has also highlighted several immediate challenges for the sector, which is not forecast to rebound to 2019 levels until 2023, in a slower and more protracted recovery than has been predicted for the wider economy.
London’s business events sector, which accounts for 40 per cent of all spending on international conferences and business events across the UK, faces a potentially more challenging future, in part because of its greater dependence on lucrative inbound international delegates. The research's worst-case scenario found spending on business events in the capital may not return to 2019 levels until 2028 at the earliest. On the upside, if the worst-case scenario is avoided, by 2026 spending on business events in London alone, is forecast to be worth £10bn.
In the wake of the report, business leaders are now calling on the Government to introduce additional support measures, particularly those aimed at boosting confidence and attracting delegates back to business events.
Jeremy Rees, chief executive of ExCeL London and Cities Restart advisory board member, said: “This research further highlights the crucial role business events play in driving positive economic impact in our major cities. Events are a huge catalyst for trade, driving billions of pounds worth of import and export activity, supporting thousands of jobs. They are also a key driver of the visitor economy, helping sectors including public transport, hospitality, accommodation, and aviation to thrive.
“We need to ensure that this vital sector gets the support it needs, including measures to open-up international travel. This will enable the UK to retain a globally competitive, world class sector, that will drive our economy for years to come.”
Interconnected economic eco-system
Kate Nicholls OBE, chief executive of UK Hospitality, said: “International conferences and business events support an interconnected economic eco-system. People attending these events also spend money on hotels, in restaurants, pubs and bars. The fact is the hospitality sector will not fully get back on its feet until the business events sector is properly restarted. It is therefore imperative that the Government goes further in restarting and boosting the virtuous economic circle that business events help to drive.
“First and foremost, the Government must reassure the public and businesses that it is safe to attend events once more, confidence is key.”
Michael Hirst OBE, chair of the Events Industry Board, said: “Business events have a unique role to play in showcasing Global Britain to the rest of the world in the post-Brexit economic era, as well as fulfilling the Government’s Tourism Recovery Plan ambition to make the UK the world’s meeting place. This ambition will be realised by a reinvigorated industry, working together with enhanced support from Government and its agencies, attracting major international conferences to be held here in the UK.”
M&IT editor Paul Harvey is a journalist with more than 15 years of experience. He began his career in the local press, working for various titles across the north. Since joining M&IT in 2013, he has become a trusted and respected voice in the sector, championing event professionals and reporting on all aspects of the events industry for the brand.
