Survey shows: Corona crisis poses existential threat to event industry
The coronavirus is hitting the events industry with full force. The Expo Event Swiss LiveCom Association warns: Help is needed—and immediately. A brand-new survey shows that anyone even remotely involved in trade shows, seminars, conferences, or events—and that includes hundreds of small and medium-sized businesses with thousands of employees—is teetering on the brink of collapse—or is already in free fall.
A massive amount of horror news from the economy is currently raining down on the Federal Parliament. The live communications industry is fully aware that tasks are looming here and now, the likes of which this country has not had to master since World War 2, according to a statement issued on Thursday. "From this point of view, the exchange of information at institutions such as roundtables and in direct contact with politicians has so far gone over commendably. But the very big problem is: the performance has just begun. And it's already going completely off the rails at breakneck speed, especially since no one has the slightest idea how many more acts this drama has in store."
The national industry association Expo Event Swiss LiveCom Association has launched a survey among its 160 active member companies to get as close to the pulse as possible. The numbers are startling:
- Job cuts of 30 percent are expected by the end of April if no financial assistance is available by then.
- The effective liquidity protection of the companies varies completely by nature, but is on average between one and a maximum of three months.
- The first layoffs have already had to be announced, although this is the absolute last measure and brutal emergency solution for all companies.
- 96 percent of the members surveyed have already had to apply for short-time work.
- The foregone gross sales since February 28, 2020 amount to approximately 260 million Swiss francs.
- The gross sales loss expected by the end of May 2020 is approximately 450 million Swiss francs.
In this context, the association welcomes the measure of legal standstill in the debt collection system proclaimed by the Federal Council on March 18, 2020 from March 19 until and including April 4, 2020, the effect of which, however, is rather of a psychological nature. Commendably, the Confederation had very quickly held out the prospect of funds of CHF 8 billion for short-time work and CHF 2 billion for bridging loans.
In contrast to this are the statements or demands of the two ETH professors Hans Gersbach and Jan-Egbert Sturm: A "Swiss fund" of 100 billion francs is to be built up to compensate for the deficits.
"As before, one of the main demands from our side is: We need quick and unbureaucratic measures! And since changes in the law are also pending here, a solution must be found to get them rolling without a session; as can be expected in a crisis situation," says the Even industry association.
Expo Event Swiss LiveCom Association as a solution approach several measures:
- A retroactive application of short-time compensation so that the loss incurred to date can also be claimed.
- Suspension of federal taxes, value-added taxes, and cantonal and municipal taxes without interest on arrears run for the companies.
- Special regulation or suspension of payment of contributions for social insurances / family allowances without negative consequences for the companies.
- Immediate extension of the scope of application for short-time work to:
- fixed-term contracts
- temporary employment relationships
- Business owners
- Apprentices
- People who care for their children at home due to school closures
- Employee Spouse
These demands and the comprehensive situation will again be presented to the federal government and it is hoped that there will be further roundtables with decision-makers in the near future, the statement continues.
