The Industry Can’t Do It Alone!

The Meetings Industry Association (MIA), the principal association supporting and growing the business meetings and events industry in the UK, conducted a survey of 197 venues on 18 August 2020. 

We, at venuedirectory.com, as part of MIA, feel committed to echoing throughout the industry the insights generated from this important survey.  

Jane Longhurst, Chief Executive of MIA commented ‘As an association we have worked with venuedirectory.com for many years and rely on its data as the custodian of meeting and event venue information:

A Huge Financial Loss Reported

A huge financial loss, which is largely uncovered by insurance, has been endured by the industry.

Over a third of these 197 venues (34%) are reporting values between £1,000,000 and £5,000,000 for lost business as a result of COVID-19, with the average venue reporting this figure at £2,398,600.

Scaling this survey’s findings to reflect the 700,000 employed within the industry, we estimate there has been 126,000 total job losses to date, with catering, front-of-house and events/account managers being the roles most severely affected. 

And the impact has gone much further than just the venues. Almost half (47%) have had to reduce, or request more flexible terms with their suppliers, while 7% are having to already source new ones because their regular pre-COVID-19 suppliers are no longer in operation.

Despite events now being permitted for up to 30 people in COVID-Secure venues, we are yet to see the green shoots of recovery. Both short and long-term business enquiries continue to remain well below pre-COVID levels. 

A decline in consumer confidence has seen a decrease in Q3 2020 enquiries for 97% of venues, compared to the previous year. On average, enquiries have decreased by a significant 78%, with 94% of venues also seeing a similar decline in Q4 2020, averaging a 75% decrease.

The findings show how the sector has quickly responded by adapting its offering – achieving accreditations and investing a median of £7,500 in safety measures that largely go above and beyond the Government’s requirements – to ensure venues are COVID-secure.

The Industry Cannot Do This Alone

Jane Longhurst

Longhurst confirmed that the industry cannot do this alone. “To ensure the sector is able to survive and facilitate the through business events, we need further support,” she added.

“As the furlough scheme comes to an end before many venues are able to reopen in October. The sector estimates that it could take at least 12-18 months, if not longer, for it to recover to pre-COVID levels, government intervention is urgently required.

Without an extension or a bespoke furlough scheme carrying through into 2021, job losses will continue. The research clearly indicates that almost a third (31%) state 0-5% of those currently on furlough will be made redundant if the scheme isn’t extended, so an average of 38% of employees is expected to lose their jobs come the end of October. Scaling this up to the 700,000 employees within the industry, 266,000 job losses are forecast.

With government intervention, including the extension of the furlough scheme and other support, 75% of venues indicate that this figure would be drastically reduced, with 140,000 jobs across the industry expected to be saved. The government, therefore, has a simple choice, to save jobs by offering an extension, or fund those individuals through benefits.”  

Michael Begley

Michael Begley concludes: “COVID-19 arrived with very little warning to the world of events and has decimated the industry overnight. Thousands of jobs and lives rely on our industry and we need to do whatever it takes to get the industry back on its feet.”