Trade fair market in Asia grew by 3.8% in 2009: Reports UFI

Lots of trade show markets saw significant losses last year as the global economic downturn plagued the industry. In Asia, though, the sector continued its robust growth by expanding 3.8 percent in 2009

While the exhibition industry in the U.S. and Europe struggled to find their feet in 2009, Asia posted another year of substantial growth.

The new report by UFI shows a growth in Asian trade Fair market, The ‘Asian Tradefair Industry’, as per UFI survey is expanded by 3.8% in 2009 despite a very challenging global economic environment.

According to the sixth edition of UFI’s annual report on the trade fair market in Asia. Net area sold by organisers in Asia reached a total of 14.9 million m2. The research was once again undertaken for UFI, the Global Association of the Exhibition Industry, by Business Strategies Group (BSG) in Hong Kong.

The Indian economy is expected to quadruple in size between now and 2020, according to a report by Edelweiss Capital.

India Trade Promotion Organisation (ITPO), which falls under the Ministry of Commerce, is the lynchpin for the future success of the Indian exhibition industry, ITPO is doing its bit by creating new Exhibition Venues in JV with state governments across major cities, but indication of closure of Venues Projects such as Reliance Convention Centre in Mumbai , Dwarka Convention Centre in New Delhi, MMF Exhibition and Convention centre In Mumbai and MCCIA Exhibition and Convention Centre in Pune are just not a positive sign of growth in Indian Exhibition Industry, There is need of urgent and serious efforts by Government of India , ITPO and big players of our industry to address the need of the hour

If the organisers, venues and service providers can make a convincing argument to invest in the industry, then they can win the attention of India’s public sector.

Currently worth US$160m, India’s exhibition industry has the potential to grow to US$990m, according to a recent report compiled for UFI by the Business Strategies Group.

While UFI Talks about the growth in Asian Market, The India is just struggling for want of suitable event venues to cope up with the current challenges.

According to the BSG report, venue space dedicated to exhibitions in India was 254,707sqm in 2009, and no new venues are planned for at least two years. The shortage of space in cities like Mumbai and New Delhi is a particular problem, as it is these cities that have the critical mass of potential visitors necessary to support a busy trade fair calendar.

Having the bigger Venus, Population factor and the advanced technological developments China continues to dominate the exhibition industry in Asia. It is the largest market in the region by any measure: net space sold industry revenues, number of exhibitions and number of venues. Year-on-year, net m2 sold in China grew by 6.7% outperforming the regional average of 3.8%. Over 8.1 million m2 were sold in China in 2009 – accounting for almost 55% of 14.9 million m2 sold across Asia. The second largest market, Japan, continued to lose ground to China. The Japanese market was the worst performing market in Asia in 2009 shrinking by 3.9% with 1.9 million m2 sold.

The exhibition sector in India is yet to get an industry status, hence, fragmented the ITPO should also lobby with private organizers to get this sector as an industry.

China, with its favorable economic policies and exemption of taxes for those who create venues for more than 200 booths remains the largest market, one much smaller market did grow faster than China last year. Space sold in Macau expanded by 47.5% largely on the back of the resurgence of Macau’s gaming-based economy. It is worth noting that Macau’s growth was from a very low base (i.e. 98,000 m2). Two other markets also performed above the regional average: Malaysia (4.7%) and Korea (3.9%).

Though much smaller, a market that grew even faster than China’s was Macau’s, mainly because of the resurgence of the region’s gaming industry. Space sold in Macau expanded by 47.5 percent, compared with 2008, according to the report.

On the other hand Japan continued to lose ground, selling 1.9 million sq. m. (20.4 million sq. ft.) of space, which was a loss of 3.9 percent, compared with 2008.

Two other markets that also performed above the regional average were Malaysia, with 4.7 percent growth in showfloor space, and Korea, with 3.9 percent growth in showfloor space.

Revenues from trade fairs in Asia were mostly flat year-on-year. This can largely be attributed to the weak global economic environment and to discounts offered by many organisers across the region in an effort to attract more exhibitors. Regional revenues in 2009 were US$3.39 billion (vs. US$3.44 in 2008). China generated revenues of US$1.14 billion accounting for 1/3 of all revenues in Asia last year, followed by Japan at 24% and Hong Kong which now accounts for 10% of total industry revenues in Asia on the back of just 88 exhibitions.

This report provides detailed information on the development of trade fairs and supporting facilities in 15 markets: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Macau, Malaysia, Pakistan, Philippines, Singapore, Taiwan, Thailand and Vietnam. The report also includes detailed analysis on actual market performance in 2009 as well as forecasts and commentary on key trends in each of those 15 markets.

Vincent Gerard, the outgoing UFI Managing Director, commented, “While the exhibition industry in the U.S. and Europe struggled to find their feet in 2009, Asia posted another year of substantial growth. As China, Asia’s largest trade fair market, grew by nearly 7% and the regional as a whole grew by 3.8%, it is clear that in 2010 and beyond the global exhibition industry will be looking to Asia for opportunities to grow existing events as well as launch new ones.”

As an added-value service, each UFI member will be entitled to receive a four page executive summary of the research and to purchase the full report at a substantial discount.

This report has been edited by UFI Asia/Pacific Regional Manager and BSG Managing Director, Mark Cochrane. He commented, “Asia will continue to provide the key platform of growth for the exhibition industry worldwide. The growth here has been impressive. In 2004, 8.2 million m2 were sold in Asia. Last year, China alone recorded net space sales 8.2 million m2 and over 14.9 million m2 were sold across the region. By the end of 2010, we expect that figure to reach more than 15.8 million m2.”

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