RObert Habeck is asked directly. “As sorry as we are, we cannot give 100 days of closed time”, says Jörn Holtmeier in the direction of the newly sworn Federal Minister of Economics of the new traffic light government. The situation is currently just too serious for that, explains the managing director of the Association of the German Exhibition Industry (AUMA). “We ask Mr. Habeck to act immediately. The trade fair industry needs support because the current situation is threatening the very existence of the company. “
In fact, the industry continues to crash in view of the corona restrictions. “2020 was bad, 2021 is even worse,” says Holtmeier. 71 percent of the planned trade fairs should have been canceled. This results in losses in the billions for the organizers.
But that’s not all. In addition, there are also failures at trade fair service providers and craftsmen, hotels and restaurants, transport companies and taxi drivers. According to the Munich ifo Institute, the economic damage caused by failed trade fairs will add up to around 24.4 billion euros in 2021, compared to 21.8 billion euros in the previous year. In addition, according to the economic researchers, around seven billion euros less taxes for the federal, state and local governments in the past two years.
The industry was allowed to start again in September after a forced break of around one and a half years. But now this new start is being slowed down hard again, reports Holtmeier, and is therefore sharply critical of the policy. “Trade fairs are trading centers for the economy – neither a carnival nor a football game.” Nevertheless, in many places they are treated and regulated like major leisure-time events.
And that at extremely short notice. “We recently had the case that access rules and hygiene requirements were changed three times within 72 hours.” After that, the trade fair in question should have been canceled. “Shaky foundations and vague formulations are increasingly making impossible what would actually still be feasible,” complains Holtmeier, demanding foresight from politics instead of rule chaos and maneuvers at sight. “Clarity and planning security are more important than ever.”
“We have our backs to the wall”
The trade association for trade fairs and exhibitions (FAMA), which mainly represents small and medium-sized exhibition venues, has also criticized the short half-life of political decisions and guidelines. “We are today where we were a year ago – with our backs to the wall and with a perspective in front of our eyes that again does not provide any planning security over a longer period of time,” says FAMA CEO Henning Könicke.
At the same time, proportionality is completely lost. “At trade fairs with aisle widths of up to six meters, a 2G + certificate is required in some places, while politicians consider a 3G standard with a few random samples to be sufficient for the ten million passengers a day in local public transport.”
Both associations are demanding that trade fairs remain possible despite the pandemic – according to uniform rules that are not changed every four weeks. “Insecurity is poison in business life,” says Holtmeier. This would discourage exhibitors from participating in trade fairs. In the first quarter of 2022 alone, however, there would be a good 130 industry shows in the event calendar of German providers.
Fund only pays in the event of government bans
“Trade fairs are based on trust. And anyone who cannot assess today which rules will apply in four weeks’ time will not have this confidence, ”says his association colleague Könicke, who heads the private trade fair organizer AFAG as his main job.
The federal government has set up a default fund to support the industry, the so-called federal special fund for trade fairs and exhibitions, or SOMA for short. After all, 600 million euros are available to compensate for damage caused by short-term trade fair cancellations, for example for rental and leasing costs, cost of goods and service providers or also personnel, marketing and communication.
However, payment is only made in the event of corona-related trade fair bans on the part of the state. But these are currently only available in Saxony, Brandenburg and Thuringia. In the other federal states, trade fairs remain possible, at least subject to conditions. “In some places, however, trade fairs are hardly economical anymore due to all kinds of restrictions,” says AUMA representative Holtmeier. However, there is still no money from the fund in the event of a cancellation.
Exhibitors must make advance payments
Holtmeier also sees a fundamental problem. “The investments of exhibiting companies and trade fair service providers are still not secured.” What the AUMA boss means: Trade fairs have a lead time of several weeks or even months. And during this time, companies have to pay the organizer’s stand rental in advance, commission service providers with the design and construction of stands, and book hotels and travel by plane or train.
“These specific expenses must be secured, at least 80 percent of the volume,” demands Holtmeier. Otherwise the economy will hold back in the current situation. Politicians had already been told that when the default fund was designed. “But the legislature did not follow this.”
The coming weeks will have to show how accessible Robert Habeck is to the appeals and arguments of the trade fair industry. At least there have been enough points of contact in the past. After all, the Green Week in Berlin was a must during his long time as Minister for Economic Affairs in Schleswig-Holstein. There will be no Green Week in 2022. Organizer Messe Berlin recently canceled the world’s largest agricultural trade fair due to a pandemic.
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