UFI GLOBAL EXHIBITION BAROMETER

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UFI Global Exhibition Barometer 18th edition Report based on the results of a survey concluded in January 2017

Global

Southern Africa

United Kingdom

Central & South America

Mexico

US

Thailand

Brazil

Table of contents

Introduction

Page 3

Results by region 1. Gross Turnover development 2. Development of Operating Profits 3. Most important business issues 4. Priorities in terms of strategy 5. Impact of recent political developments

4 6 8 11 16

Detailed results for selected countries or zones North America: Mexico, US Central and South America: Brazil, other countries in Central & South America Europe: Germany, Italy, Russia, UK, other countries in Europe Africa: South Africa Middle East Asia/Pacific: China, Thailand, other countries in Asia/Pacific

17 18 20 22 27 28 29

Conclusion

32

Appendix: answers per country/region

33 18th UFI Global Exhibition Barometer © 2017 Page 2

Introduction

Welcome to the 18th edition of the “UFI Global Exhibition Barometer“ survey. This study is based on a global survey, concluded in January 2017. It represents up to date information on the development and the outlook of the global exhibition industry as well as on 14 specific countries and zones. UFI began assessing the impact of the global economic conditions on the exhibition industry twice a year in 2009, based on perceptions of UFI members around the world. In 2010, this biannual survey became the “UFI Global Exhibition Barometer“. For the United States, this survey includes Members of SISO (Society of Independent Show Organizers) and the scope of the Research has since been broadened to include members of AEO (Association of Event Organisers, UK), AFIDA (Asociación Internacional de Ferias de América), AMPROFEC (Asociación Mexicana de Profesionales de Ferias y Exposiciones y Convenciones), AAXO (The Association of African Exhibition Organizers) and EXSA (Exhibition and Events Association of Southern Africa) in South Africa, TEA (Thai Exhibition Association) and UBRAFE (União Brasileira dos Promotores Feiras) in Central and South America. Important remarks It should be noted that the number of replies to the current survey (240 from 54 countries - see full list on the page 33) provides representative results. However, the consolidated regional results may not reflect the situation of specific countries in that region. This is why the report also includes a set of detailed results for the 14 countries or zones where a significant number of answers were obtained are included (see list on the page 17). Questions related to this survey can be addressed to Christian Druart, UFI Research Manager, at [email protected].

18th UFI Global Exhibition Barometer © 2017 Page 3

1. Gross Turnover development The 18th Barometer surveyed the evolution of participants’ gross turnover expectations for the second half of 2016 and the two halves of 2017 compared to their turnover during the same period in the previous year (regardless of possible biennial effects). The chart on the next page presents, at regional level, the percentage of companies declaring an increase in their turnover. It combines these results with those of previous surveys since 2008 It does not take into account the “unknown” or “not applicable” answers. It shows a very positive and stable outlook for Europe, where 77 to 78% declare an increase. In the Americas, the situation improves over the period, from 55% to 81%. A positive trend is also noticed in Asia/Pacific (from 64-67% in 2016 to 74% in 2017) whereas the situation is relatively stable in the Middle East and Africa (56 to 60%). The charts included in the second part of this report (“Detailed results for selected countries or zones”) detail these regional results, adding the percentage of companies declaring decreases in their turnover and the percentage of “unknown” answers. They show a variety of situations: • In North America, the US and Mexico present a positive outlook with more than 60% of companies expecting increase in turnover for the 3 periods, and even more than 70% in the US or 90% in Mexico for some periods; • In Central and South America however, the 2nd part of 2016 has seen a decrease of turnover for around 80% of companies on average; the situation for 2017 is anticipated to improve importantly for Brazil, with 80 to 90% of companies declaring an increase, but not so much for the other countries, where a majority of companies still expect decreases; • In Europe, most markets declare a very positive outlook with around 80% of companies expecting increase in turnover for the 3 periods. Exceptions are however noticed for Germany and Italy where 2017 appears weaker than 2016. In Russia, a positive trend is noticed for the 2nd half of 2017, where 60% anticipate growth; • In Asia/Pacific, China outperforms the other zones studied, with 70 to 85% of companies declaring an increase on average for the 3 periods. This is the case for only up to 50% of companies in Thailand and 60% on average for the other countries; • In the Middle East or South Africa, 45 to 65% of companies expect increase in turnover for the 3 periods. 18th UFI Global Exhibition Barometer © 2017 Page 4

% of companies declaring an increase in turnover when compared to their projections for the same period the year before (regardless of possible biennial effects) 100% 90%

Americas Europe Asia & Pacific Middle East & Africa

80% 70% 60% 50% 40% 30%

20% 10% 0%

H2 2008

H1 2009

H2 2009

H1 2010

H2 2010

H1 2011

H2 2011

H1 2012

H2 2012

H1 2013

H2 2013

As declared in previous surveys

H1 2014

H2 2014

H1 2015

H2 2015

H1 2016

H2 2016

H1 2017

H2 2017

As declared in December 2016 18th UFI Global Exhibition Barometer © 2017 Page 5

2. Development of Operating Profits The 18th Global Barometer survey questioned the evolution of operating profits for 2016 compared to the previous year. The chart presented on the following page combines these results with those of previous surveys which track the development of operating profits since 2009. It highlights the results of companies declaring an increase of more than 10% and those declaring a more stable result (between -10% and +10%) – see footnote. The detailed results show that most regions maintained in 2016 the good level of performance recorded in 2015; • A majority of companies declare an increase of more than 10% in annual profits for 2016 in Mexico, USA, most countries in Asia/Pacific and Central and South America (except in Thailand: 42%; China: 19% and Brazil: 40%); • In Europe, 3 to 5 companies out of 10 declare an increase of more than 10% in annual profits for 2016 in most zones, except in the UK which outperformed with 57% in that situation; • There is a similar situation in the Middle East (46%) but in South Africa, only 6% declare an increase of more than 10%.

Footnote: The charts included in the second part of this report (“Detailed results for selected countries or zones”) detail these results, adding the percentage of companies with reductions in profits or losses.

18th UFI Global Exhibition Barometer © 2017 Page 6

Operating profits compared to the previous year Americas

Asia & Pacific

Europe

Middle East & Africa

100% 90%

% of companies declaring: - stable profits (between -10% and +10%) - or increases of more than 10%

80% 70% 60% 50%

% of companies declaring: - profit increases of more than 10%

40% 30% 20% 10% 0% 2009

2010

2011

2012

2013

2014

2015

2016

18th UFI Global Exhibition Barometer © 2017 Page 7

3. Most important business issues Companies were asked to identify the three most important issues for their business in the coming year from a predefined list of seven issues. Multiples choices were proposed to get further insight for some answers. As in previous surveys, around 80% of all answers relate to the following 4 issues: • “State of the economy in home market” (25% in the current survey, down 1% compared to 6 months ago) • “Global economic developments” (24% in the current survey, down 2% compared to 6 months ago) • “Competition from within the industry” (20% in the current survey, up 3% compared to 6months ago) • “Internal challenges” (13% in the current survey), unchanged, where “Human resources” are named as the most important aspect. It can be noted however, that, compared with the last survey results, “Competition from within the industry” climbs up by +3% taken to the first 2 issues. “Impact of digitalisation” (“Responding to customer digitalization needs”, “New digital products” or “Internal processes”), “Competition with other media” (“Internet”, “Social media”, “Virtual trade shows” or “Other”) and “Regulatory / Stakeholders issues” (“Sustainability”, “Health & safety” or “Other) keep their exact same level as in the last survey. The next slide shows the consolidated global results, including further insights. The following pages details those results by region and by type of activity (for 3 main segments: “Organiser”, “Venue only” and “Service provider only”). Results show that there are no significant differences based on these criteria, except for the “Impact of digitalisation” which is not so present, generally speaking, in Middle East and Africa and also among “Venues only”, but receives vey high relevance in Germany (21%) and most countries in Central and South America (20%). Regarding venues, “Competition from within the industry” has become the top issue. Also, “Human challenges” are ranked significantly higher .

18th UFI Global Exhibition Barometer © 2017 Page 8

Top issues: global results Top issues ( 26% 27%

22% 24%

20%

17%

: results from last survey conducted in June 2016)

13% 13% 8% 8%

State of the economy in home market

Global Competition economic from within the developments industry

67%

Finance

6% Other

Impact of digitalisation

4% 4%

3% 3%

Competition with other media

Regulatory / Stakeholders issues

Other

50%

84% 34%

Human resources

Internal challenges

4% 4%

49%

40%

Responding Internal New digital to customer processes products digitalisation needs

47% 17%

Internet

Social media

(multiple answers possible)

28% Virtual trade shows

11%

16%

Other

Sustainability

26% Health & safety

Other

18th UFI Global Exhibition Barometer © 2017 Page 9

Most important issues: detail by region and type of activity for the five top issues identified globally Americas

Middle East & Africa

Europe

Asia & Pacific

32% 25% 25%

25% 21%

21%

23% 19%

18%

21%

23% 16%

16% 12% 13%

13%

12% 9%

7% 2% State of the economy in home market

Global economic developments

Competition from within the industry

Internal challenges

Organiser 27% 24% 18%

25% 23% 20%

29% 24% 19%

Venue only

Service provider only

22% 12%

14%

11% 2%

State of the Global economic Competition from economy in home developments within the industry market

Impact of digitalisation

Internal challenges

5%

Impact of digitalisation

8% 2%

0%

Competition with other media

3%

4% 0%

Regulatory / Stakeholders issues

18th UFI Global Exhibition Barometer © 2017 Page 10

4. Priorities in terms of strategy Companies were asked to share their current priorities in terms of strategy in two specific areas: their range of activities and their geographical exposure. In all regions, a large majority of companies intend to develop new activities, in either the classic range of exhibition industry activities (venue/organiser/services), other live events or virtual events, or in both: 67% in the Middle East & Africa, 87% in Asia/Pacific, 90% in Europe and 96% in the Americas. In terms of geographical expansion, 4 companies out of 10 on average declare an intention to develop operations in new countries, and the rate is much higher in the UK (70%), USA (67%) and the Middle East (57%). These results are also detailed in the following pages for the main segments of “company type” (“Organiser”, “Venue only” and “Service Provider only”).

18th UFI Global Exhibition Barometer © 2017 Page 11

Current strategic priorities related to the range of activities : results by geographical zone Stay within current scope of activities (as a venue, an organiser or a service provider)

WORLD

Develop new activities within the classical range of the exhibition industry

Develop new activities in terms of live events or virtual events

(venue / organiser / services)

14%

57%

5%

24%

Both of these developments Americas

Asia/Pacific

Europe

Middle East & Africa

4%

59%

13%

2%

35%

64%

10%

9%

63%

33%

6%

37%

2%

13%

22%

28%

18th UFI Global Exhibition Barometer © 2017 Page 12

Current strategic priorities related to the range of activities: results by type of company Stay within current scope of activities (as a venue, an organiser or a service provider)

Organiser Service provider only Venue only

11%

Develop new activities within the classical range of the exhibition industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

59%

19%

27%

6%

55%

40%

2%

7%

24%

24%

27%

Both of these developments 18th UFI Global Exhibition Barometer © 2017 Page 13

Current strategic priorities related to geographic exposure: results by geographical zone

Stay in the same countries as those in which I currently operate

WORLD

61%

Americas

Middle East & Africa

39%

69%

Asia/Pacific

Europe

Operate in new countries

31%

64%

54%

62%

36%

46%

38%

18th UFI Global Exhibition Barometer © 2017 Page 14

Current strategic priorities related to geographic exposure: results by type of activity

Stay in the same countries as those in which I currently operate

62%

Organiser Service provider only Venue only

Operate in new countries

38%

49%

51%

92%

8%

18th UFI Global Exhibition Barometer © 2017 Page 15

5. Impact of recent political developments This question aims to assess the perceptions of the impact to international trade and the exhibition industry due to numerous recent major political developments (namely the Brexit vote in the UK, the failed coup in Turkey and the outcome of the US presidential elections). 45% of participants globally anticipate a limited or significant negative impact of some sorts for business. Detailed results at country level indicate that Mexico (60%) and the US (54%) report the highest degrees of concern. By comparison only 1 out of ten on average are expecting a positive impact of some sort. 2 on average anticipate no impact, and between 2 and 3 don’t know are or not sure.

From the Brexit vote in the UK to the failed coup in Turkey and the outcome of the US presidential elections - numerous major political developments are causing discussions in the exhibition industry. What kind of impact to international trade and the exhibition industry do you expect? WORLD

6%

39%

18%

Significant negative impact

Limited negative impact

No impact

46%

Americas Europe Middle East & Africa Asia/Pacific

17%

9%

40%

11%

36%

3%

34%

16% 15% 26%

6% 4% Limited Significant positive positive impact impact

27% I don’t know I am not sure

2% 7%

28%

9%

27%

4% 6%

28%

7% 3%

26%

18th UFI Global Exhibition Barometer © 2017 Page 16

Part 2: Detailed results for 14 selected countries or zones

North America:

Mexico US

Central and South America:

Brazil Other countries in Central & South America

Europe:

Germany Italy Russia United Kingdom Other countries in Europe

Africa:

South Africa

Middle East:

Middle East

Asia/Pacific:

China Thailand Other countries in Asia/Pacific 18th UFI Global Exhibition Barometer © 2017 Page 17

Detailed results for MEXICO (15 answers) How do you expect your turnover to change when compared to the same period the previous year? 7%

86%

8%

7%

7%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year I don’t know Loss Reduced by more than 50%

22% 20%

Stable (between -10% and +10%) Increase of more than 10%

20%

15%

13% 7% 8%

Decrease: less than 10% Decrease: 10% or more

Impact of recent political developments 20% I don’t know / I am not sure positive impact 13% Significant Limited positive impact (0%)

7%

No impact

2% State of the Global Competition economy in economic from within home market developments the industry

4%

2%

4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

2% 3% Other

Current strategic priorities related to the range of activities Develop new activities in terms of live events or virtual events

Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

7%

29%

0%

64%

both of these developments

Reduced by 11-50%

64%

: global)

27%

Increase

31%

36%

24%25%

I don’t know

62% 92%

Top issues (

60% Limited negative impact

Significant negative impact (0%)

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

69%

31%

2016

18th UFI Global Exhibition Barometer © 2017 Page 18

Detailed results for USA (13 answers) How do you expect your turnover to change when compared to the same period the previous year? I don’t know

Top issues (

: global)

25% 22% 20%

20% 20%

17%

67%

64%

73%

Increase

13% 11%

8%

Decrease: less than 10%

22%

36%

18% 9%

11% H2 2016

H1 2017

H2 2017

Operating profits compared to previous year 20%

I don’t know Loss

30%

Decrease: 10% or more

Reduced by more than 50%

Impact of recent political developments 23% I don’t know / I am not sure 8% Significant positive impact Limited positive impact (0%) 15% No impact

Stable (between -10% and +10%) Increase of more than 10%

2016

9% 4%

State of the Global Competition economy in economic from within home market developments the industry

6%

4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

3% 3% Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

0%

60%

Develop new activities in terms of live events or virtual events

10%

30%

both of these developments

Reduced by 11-50%

50%

14%

54% Limited negative impact Significant negative impact (0%)

Current strategic priorities related to geographic exposure

Stay in the same countries as those in which I currently operate

33%

Operate in new countries

67% 18th UFI Global Exhibition Barometer © 2017 Page 19

Detailed results for Brazil (11 answers) How do you expect your turnover to change when compared to the same period the previous year?

25% 22%

Increase

80%

90%

H2 2016

10% 10%

10%

H1 2017

H2 2017

Operating profits compared to previous year 10%

I don’t know Loss

50%

Reduced by more than 50%

Decrease: 10% or more

Impact of recent political developments 18% I don’t know / I am not sure

9%

22% 20%

11%

Decrease: less than 10%

45%

: global)

I don’t know

22% 33%

Top issues ( 37%

19% 13% 8% 4%

4%

4%4%

State of the Global Competition economy in economic from within home market developments the industry

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

40%

Increase of more than 10%

2016

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

Significant positive impact (0%)

Limited positive impact

27% No impact

9%

82%

Reduced by 11-50% Stable (between -10% and +10%)

4%3%

0%

0%9% both of these developments

45% Limited negative impact

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Significant negative impact (0%)

90%

Operate in new countries

10%

18th UFI Global Exhibition Barometer © 2017 Page 20

Detailed results for other countries in Central and South America (12 answers) How do you expect your turnover to change when compared to the same period the previous year? I don’t know

14%

20%

60%

14%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year 10% 30%

Decrease: 10% or more

Impact of recent political developments

I don’t know

20%

13%

20%

13% 8%

7%

4%

7% 3%4%

3%

0% State of the Global Competition economy in economic from within home market developments the industry

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

Loss Reduced by more than 50% Reduced by 11-50%

60%

22%

Decrease: less than 10%

29%

14%

25%

Increase

43%

20%

: global)

20%

43%

43%

Top issues ( 30%

58% I don’t know / I am not sure

8%

0%

63%

0% both of these developments

Significant positive impact Limited positive impact (0%)

Stable (between -10% and +10%)

25% No impact

Increase of more than 10%

8%

Limited negative impact

Significant negative impact (0%)

38%

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

75%

Operate in new countries

25%

2016

18th UFI Global Exhibition Barometer © 2017 Page 21

Detailed results for Germany (15 answers) How do you expect your turnover to change when compared to the same period the previous year? 8%

Increase

100 %

H2 2016

17% 8%

H1 2017

H2 2017

Operating profits compared to previous year 7% 27%

Reduced by more than 50%

27%

40%

2016

Reduced by 11-50%

21%

20% 19% 13%

12%

9%

8%

Decrease: less than 10% Decrease: 10% or more

Impact of recent political developments

I don’t know Loss

23% 22%

9%

50%

17% 8%

: global)

25%

I don’t know

25%

67%

Top issues (

4%

State of the Global Competition economy in economic from within home market developments the industry

5%4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

2%3%

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

40% I don’t know / I am not sure Limited OR significant positive impact (0%)

8%

42%

17%

13% No impact

Stable (between -10% and +10%)

40% Limited negative impact

Increase of more than 10%

7%

Significant negative impact

33%

both of these developments

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

45%

55% 18th UFI Global Exhibition Barometer © 2017 Page 22

Detailed results for Italy (10 answers) How do you expect your turnover to change when compared to the same period the previous year? 11%

22%

78%

56%

33%

22%

11% H1 2017

17%

Reduced by more than 50% Reduced by 11-50%

33%

26% 22%

Stable (between -10% and +10%) Increase of more than 10%

20% 19% 15% 13%

Decrease: less than 10% Decrease: 10% or more

11% 8% 4% 0%

State of the Global Competition economy in economic from within home market developments the industry

4% 0%

3% 0%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Other

Current strategic priorities related to the range of activities

Impact of recent political developments

Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

I don’t know Loss

50%

25%

I don’t know

H2 2017

Operating profits compared to previous year

: global)

30%

Increase

67%

H2 2016

Top issues (

Develop new activities in terms of live events or virtual events

40% I don’t know / I am not sure

29%

71%

0%

Limited OR significant positive impact (0%)

10% No impact

40% Limited negative impact

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

10% Significant negative impact

67%

Operate in new countries

33%

2016

18th UFI Global Exhibition Barometer © 2017 Page 23

Detailed results for Russia (13 answers) How do you expect your turnover to change when compared to the same period the previous year? 11%

22%

10% 10%

H1 2017

H2 2017

Operating profits compared to previous year 18%

Reduced by more than 50% Reduced by 11-50%

36% 2016

Decrease: 10% or more

9%

State of the Global Competition economy in economic from within home market developments the industry

Impact of recent political developments

Stable (between -10% and +10%) Increase of more than 10%

31%

8% 3%

I don’t know Loss

45%

Decrease: less than 10%

33% 12%

20% 20% 13%

60%

H2 2016

29% 25%

Increase

44%

: global)

34%

I don’t know

20%

45%

55%

Top issues (

6%4%

4%

0%

0%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

3%

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

I don’t know / I am not sure Significant positive impact (0%)

23%

Limited positive impact

23%

No impact

23%

Limited negative impact Significant negative impact (0%)

17%

67%

0% 17% both of these developments

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

73%

Operate in new countries

27%

18th UFI Global Exhibition Barometer © 2017 Page 24

Detailed results for the United Kingdom (10 answers) How do you expect your turnover to change when compared to the same period the previous year?

Top issues (

I don’t know

78%

90%

25% 22%

22%

Increase

80%

: global)

35%

20% 17% 13%13% 8%

Decrease: less than 10%

11% 11%

10%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year 14% 29%

57%

Decrease: 10% or more

20%

30%

I don’t know / I am not sure Significant positive impact (0%)

4%

4%4%

0% State of the Global Competition economy in economic from within home market developments the industry

Impact of recent political developments

I don’t know Loss

4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

0%

70%

Develop new activities in terms of live events or virtual events

10%

Reduced by more than 50%

10%

Reduced by 11-50%

20%

No impact

Stable (between -10% and +10%)

20%

Limited negative impact

Current strategic priorities related to geographic exposure

Increase of more than 10%

20%

Significant negative impact

Stay in the same countries as those in which I currently operate

Limited positive impact

4%3%

20%

both of these developments

30%

Operate in new countries

70%

2016

18th UFI Global Exhibition Barometer © 2017 Page 25

Detailed results for other countries in Europe (26 answers) How do you expect your turnover to change when compared to the same period the previous year? 6%

Top issues (

: global)

28% 25% 22%22%

I don’t know

20% Increase

84%

80%

13%

77%

15% 13%

8%

Decrease: less than 10%

16%

20%

17%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year 19%

35%

15%

I don’t know / I am not sure

Loss

9%

Limited positive impact

Reduced by more than 50%

15%

Stable (between -10% and +10%) Increase of more than 10%

4%4%

State of the Global Competition economy in economic from within home market developments the industry

Impact of recent political developments

I don’t know

Reduced by 11-50%

46%

Decrease: 10% or more

52%

9%

14%

2%

4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

2%3% Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Develop new activities in terms of live events or virtual events

Significant positive impact (0%)

No impact

6%

65%

3%

26%

both of these developments Limited negative impact

Significant negative impact

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

56%

44%

2016

18th UFI Global Exhibition Barometer © 2017 Page 26

Detailed results for South Africa (26 answers) How do you expect your turnover to change when compared to the same period the previous year? 9% 65%

18%

20%

14%

18%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year I don’t know Loss Reduced by more than 50%

6%

14%

12%13% 9%

8% Decrease: less than 10% Decrease: 10% or more

3% State of the Global Competition economy in economic from within home market developments the industry

Impact of recent political developments 23% 8%

I don’t know / I am not sure

5%4%

4%

3%3%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Other

Current strategic priorities related to the range of activities Develop new activities in terms of live events or virtual events

Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

Significant positive impact (0%)

Limited positive impact

27%

No impact

Stable (between -10% and +10%)

35%

Limited negative impact

Increase of more than 10%

8%

Significant negative impact

Reduced by 11-50%

50%

25% 20%

Increase

15%

31%

22%

: global)

46%

32%

13%

I don’t know

18%

45%

Top issues ( 29% 25%

44%

28%

0%

28%

both of these developments

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

71%

29%

2016

18th UFI Global Exhibition Barometer © 2017 Page 27

Detailed results for the Middle East (17 answers) How do you expect your turnover to change when compared to the same period the previous year? 9%

9%

Top issues (

: global)

25% 22% 21%

I don’t know 17%

60%

40% H2 2016

18% 18%

9% 18%

H1 2017

H2 2017

Decrease: 10% or more

2% State of the Global Competition economy in economic from within home market developments the industry

Reduced by more than 50%

4%4%

4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

6% 3% Other

Current strategic priorities related to the range of activities

Impact of recent political developments

Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

I don’t know

Reduced by 11-50%

46%

12% 8%

Decrease: less than 10%

Loss

35%

13%

64%

Operating profits compared to previous year

19%

15%

Increase

55%

23% 20%

Develop new activities in terms of live events or virtual events

35% I don’t know / I am not sure

21%

50%

18% Significant positive impact

41% Limited negative impact

Increase of more than 10%

6% Significant negative impact

21%

both of these developments

No impact OR Limited positive impact (0%)

Stable (between -10% and +10%)

7%

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

43%

57%

2016

18th UFI Global Exhibition Barometer © 2017 Page 28

Detailed results for China (16 answers) How do you expect your turnover to change when compared to the same period the previous year? 8%

25%

: global)

27% 22%

I don’t know Increase

86%

Top issues (

19% 20% 13%13%

13%

79%

69%

8%8%

Decrease: less than 10%

14%

23%

21%

H2 2016

H1 2017

H2 2017

Operating profits compared to previous year 6% 6%

Reduced by more than 50% Reduced by 11-50% Stable (between -10% and +10%)

19% 2016

Impact of recent political developments

I don’t know Loss

69%

Decrease: 10% or more

Increase of more than 10%

31% I don’t know / I am not sure

10% 4%

State of the Global Competition economy in economic from within home market developments the industry

4%4%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Stay within current scope of activities (as a venue, an organiser or a service provider)

Develop new activities within the classical range of the exhibition industry (venue / organiser / services)

Other

7%

Develop new activities in terms of live events or virtual events

80%

7% 7%

25% No impact

Significant negative impact (0%)

3%

Current strategic priorities related to the range of activities

Limited OR significant positive impact (0%)

44% Limited negative impact

6%

both of these developments

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

75%

Operate in new countries

25%

18th UFI Global Exhibition Barometer © 2017 Page 29

Detailed results for Thailand (14 answers) How do you expect your turnover to change when compared to the same period the previous year? 12% 50%

25% 25% H2 2016

I don’t know Increase

44% 22%

20%

22%

17%

H1 2017

H2 2017

Decrease: 10% or more

Impact of recent political developments

I don’t know

Reduced by more than 50%

Stable (between -10% and +10%) Increase of more than 10%

8%

Decrease: less than 10%

50%

Reduced by 11-50%

42%

22% 19%

14%13%

Loss

50%

: global) 30%

25% 24%

33%

Operating profits compared to previous year 8%

Top issues (

29% I don’t know / I am not sure 7% Significant positive impact 14% Limited positive impact

43% No impact

5% 3% State of the Global Competition economy in economic from within home market developments the industry

Limited negative impact (0%)

Significant negative impact

3%4%

3%3%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

8%

67%

Develop new activities in terms of live events or virtual events

8%

17%

both of these developments

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

7%

4%

73%

Operate in new countries

27%

2016

18th UFI Global Exhibition Barometer © 2017 Page 30

Detailed results for other countries in Asia/Pacific (28 answers) How do you expect your turnover to change when compared to the same period the previous year? 8% 64%

I don’t know

13%

58%

Top issues ( 25%25%

: global)

22%22%

23% 20%

Increase

12%13%

63% Decrease: less than 10%

32%

25%

5% H2 2016

8% H1 2017

Operating profits compared to previous year I don’t know

43%

Decrease: 10% or more

21% 4% H2 2017

Loss Reduced by more than 50%

Impact of recent political developments 21% I don’t know / I am not sure 4% 7%

Significant positive impact Limited positive impact

4% 1% State of the Global Competition economy in economic from within home market developments the industry

Stable (between -10% and +10%) Increase of more than 10%

Limited negative impact

4%

Significant negative impact

4%

3%3% Other

Current strategic priorities related to the range of activities Stay within current scope Develop new activities within the of activities (as a venue, an classical range of the exhibition organiser or a service provider) industry (venue / organiser / services)

19%

54%

18% No impact

46%

3%

Internal Impact of Competition Regulatory / challenges digitalisation with other Stakeholders media issues

Develop new activities in terms of live events or virtual events

12%

15%

both of these developments

Reduced by 11-50%

57%

11% 8%

Current strategic priorities related to geographic exposure Stay in the same countries as those in which I currently operate

Operate in new countries

55%

45%

2016

18th UFI Global Exhibition Barometer © 2017 Page 31

Conclusion The Global Barometer survey has been measuring the pulse of the exhibition industry since 2008. The 18th survey, concluded in January 2017, was answered by 240 companies from 54 countries. The results are detailed for 14 geographical zones, including 10 major national markets. Survey results reveal that despite an ongoing slowdown in global economic growth, and a decline in open trade promoters on the international stage, the exhibition industry remains geared for continued growth in 2017. Answers indicate turnover increases for a majority of companies in 2017, following two years of relatively stable levels of operating profit. The US, Mexico, China and the UK perform above average. Brazil and Russia also indicate a positive trend in turnover, but for 2017 only. In Germany and Italy however, 2017 appears at this stage weaker than 2016.

When asked about the possible impact of recent major political developments (such as the Brexit vote in the UK, the failed coup in Turkey, and the US presidential elections) on international trade and the exhibition industry, 45% of participants globally anticipate a limited or significant negative impact on business. At country level, Mexico (60%) and the US (54%) report the highest degrees of concern. By comparison an average of only one in ten respondents expects recent political developments to have a positive impact on business. On average, 20% anticipate no impact, and 20-30% are unsure. A core question of UFI’s Global Barometer asks for the “most important business issues” companies are currently facing. As has been the case in recent years “State of the national/regional economy” and “Global economic uncertainty” retain their top positions, yet both items receive slightly less attention than six months ago. In contrast, “Competition from within the industry” has seen a measurable rise in importance, closing the previous gap with the other two top issues. “Impact of digitalisation” receives high relevance in Germany (21%) and most countries in Central and South America (20%). Covering the strategic outlook of the global exhibition industry, the barometer shows an ongoing expansion in the industry’s business activities globally, both at companies’ home bases and in new geographical markets. A large majority of companies from all regions intend to develop new activities, either in the classic range of exhibition industry activities (venue/organiser/services), or in other live or virtual events, or in both. An average of four out of 10 companies also declare an intention to develop operations in new countries. This figure is particularly high for companies based in the UK (70%), the US (67%) and the Middle East (57%).

THE NEXT GLOBAL BAROMETER SURVEY WILL BE CONDUCTED IN JUNE 2017 – PLEASE PARTICIPATE! 18th UFI Global Exhibition Barometer © 2017 Page 32

Appendix: Number of survey replies per country Total = 240 (in 54 countries) North America

31 Canada 3 Mexico 15 USA 13

Central & South America 23 Argentina 4 Bolivia 1 Brazil 11 Chile 3 Colombia 2 Ecuador 2

Africa

30 Egypt 1 Libya 1 Namibia 1 South Africa 26 Sudan 1

Europe Austria Belgium Croatia Czech Republic France Georgia Germany Greece Hungary Italy Luxembourg Netherlands Poland Portugal Romania Russian Federation Serbia Slovenia Spain Sweden Turkey Ukraine United Kingdom (*)

81 2 1 1 1 2 1 15 1 1 10 1 1 1 3 1 13 1 1 1 3 7 2 10 1

Middle East Iran Jordan Lebanon Oman Saudi Arabia United Arab Emirates (*)

17 8 2 1 2 2 1 1

Asia / Pacific 58 Australia 5 China 16 India 4 Indonesia 1 Japan 5 Malaysia 1 New Zealand 1 Pakistan 2 Singapore 6 South Korea 3 Thailand 14

(*): several countries (regional answer)

18th UFI Global Exhibition Barometer © 2017 Page 33

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