The coronavirus outbreak has caused the cancellation of 162 trade fairs and major events in Germany, resulting in a loss of at least €470 million in tax revenue and putting 24,000 jobs in the trade fair and event industry at risk. The Center for Systems Science and Engineering (CSSE) at the University of Baltimore reports that there are now almost 137,000 confirmed cases of coronavirus worldwide, with exponential spread in Italy, Germany, and other EU countries. The virus has devastating effects on the global economy, particularly on the trade fair and event industry, which has already had to cancel 773 events worldwide.
According to a study by the ifo Institute, 56.2% of all companies in Germany are already suffering from the economic consequences of the coronavirus. Trade fairs and other major events generate €28 billion in economic effects in Germany, and the industry provides €4.5 billion in tax revenue and 231,000 jobs. The real damage caused by the coronavirus is much higher, as the effects on lost revenue are not yet included. The situation for the trade fair and event industry is worrying, as organizers, exhibitors, visitors, and service providers lose all planning security, incur high upfront costs without any benefit, and suffer from acute revenue losses.
The Research Institute for Exhibition and Live-Communication (RIFEL) estimates that small and medium-sized companies, which make up the majority of the trade fair industry in Germany, have already suffered €426 million in damages. These companies employ around 150,000 people, whose jobs could be lost without government assistance. The longer the situation persists, the more companies will face existential challenges. The trade fair industry will have to adapt to a new reality, and only timely government aid can prevent the bankruptcy of many companies and the loss of jobs.
