AUMA Annual Press Conference

26.05.2006 The international trade fairs in Germany have returned to the growth path once again in 2005. Exhibitor numbers and rented space have increased for the first time in years. The improved investment and consumption climate means that growth in the industry will probably continue to accelerate. This was emphasized by Thomas H. Hagen, Chairman of AUMA – Association of the German Trade Fair Industry – at the association’s annual press conference on 15th May 2006 in Berlin. The numbers of exhibitors at the 141 international trade fairs in 2005 have increased by 2.6% compared with the respective previous events; in the year 2004, a decline in number of 0.7% was still being registered. The revival extends almost across the entire breadth of the trade fair pro-gram: about three-quarters of the trade fairs recorded an increase in their numbers of exhibitors. What is particularly remarkable, according to Hagen, is the stabilization in the number of German exhibitors; as recently as 2004, they were still registering a fall of 4%. In 2005, in contrast, with a figure of 0.5% a slightly positive trend in domestic participations was recorded once again. Apparently, the companies recognize that a further reduction in their trade fair participations would tend to be harmful for them. In the medium term, the growing competition in all sectors of industry and services will be of benefit to the trade fairs, because it will become increasingly important for the companies to show their colours. The presence at the sector meeting places like trade fairs will become a standard for attracting the attention of potential customers and media. The AUMA chairman: “Anyone who avoids the direct comparison with his competitors, could easily be overlooked. Or, alternatively, he must make enormous investments in other communication measures. In addition, the growth in the number of foreign exhibitors continues undiminished. For 2005, AUMA registered an increase of 4.5% in comparison with the previous events. Rented stand space increased once again The rented stand space, which determines the domestic turnover of the trade fair organizers, has grown slightly for the first time since the year 2000. An increase of 0.6% in comparison with the previous events indicates, according to Hagen, that the trend towards a reduction in stand spaces has been halted. The exhibitors have realized that a minimum stand size is absolutely necessary if they want to make the best possible use of a trade fair participation. As far as numbers of visitors are concerned, the figure has not yet moved into the positive zone. The decline of 2.2% has even increased once again in comparison with 2004 (- 1.4%). The main reason for this, however, as the AUMA chairman emphasized, is not to be found in a generally reduced interest in trade fairs; it is a reflection of the slow decline in the average length of stay. In particular, however, some specific large exhibitions open to the general public were seriously affected by unfavourable weather and thus also traffic conditions. Apart from this, almost all types of trade fair recorded predominantly constant numbers of visitors, however, so that the significance of the decline in 2005 should not be overes-timated. In total, stand space of 6.24 million m² was rented at at the international trade fairs. The total number of exhibitors registered was 158,060, of this total, 74,058 came from Germany and 84,002 from abroad, that represents a foreign share of 53%. The 141 international fairs registered 9.59 mill. visitors. In 2005, the turnover of trade fair organizers based in Germany reached 2.35 billion Euro according to the provisional figures, following a figure of 2.45 bill. Euro in 2004. The main reason for this decline is the lower volume of space rented due to the rotation of events. On the other hand, the rapidly growing number of own foreign trade fairs had a considerable stabilizing effect on the turnover of the German organizers. Good prospects for 2006 For 2006, AUMA expects an increase in all the industry’s key indicators. The confidence in the German companies has increased, according to Hagen, and the consumer climate has improved slightly. The image of trade fairs continues to be very good. 2 – 3 % more exhibitors and 1% more visitors are to be expected. There will probably also be a small increase in the total of rented space. The number of exhibitors at the 163 planned trade fairs might even surpass the record result of the year 2000 with about 175,000 participations. Foreign fairs of German organizers with double-digit growth For the first time, AUMA has examined the key indicators of the foreign trade fairs of German organizers on an annual comparison. In 2005, about 1.35 mill. m² of stand space was rented at the 166 events; that was 30% more than in 2004. The reasons for it are the growing number of trade fairs (13 more than 2004), the growth of the individual events, but also the rotation of the trade fairs. Almost 54,000 exhibitors represented an increase of about 18% compared with the previous year. The number of visitors has also increased. Following a total of 3 mill. in 2004, no less than 3.4 mill. came in 2005, that was an increase of 13%. In 2006, the members of AUMA are planning to conduct around 200 trade fairs on all continents. The most important target countries for German organizers are China (63), Russia (28), India (14) and the United Arab Emirates (13). The most important cities are Shanghai with 37 trade fairs and Moscow with a total of 25. AUMA’s chairman: “With the high level of internationality of their do-mestic trade fairs and the growing success of their foreign fairs, the Ger-man organizers are among the winners in the process of globalization. They profit to a great extent from the strong growth in trade between Europe and Asia, but also that between the EU and Russia”. Furthermore, the process of economic liberalization in Eastern Europe and Eastern Asia has made the conducting of trade fairs abroad considerably easier. Continued strong position in worldwide competition In the opinion of AUMA’s chairman, the German trade fair industry is strong enough to be able to assert itself against the international competition. Mergers of organizing companies and increases in capacity in other countries did not automatically strengthen their position in the trade fair market. In the development and cultivation of internationally high-class trade fairs, it is a question of the long-term quality of strategies, the own quality claims and the feeling for the worldwide development of markets. He added that in these categories, the German organizers continued to have a lead over their competitors. Foreign trade fair programme 2007 Commenting on the extent and structure of the foreign fair programme of the Federal Government for 2007, the managing director of AUMA, Dr. Peter Neven, explained that the Federal Ministry of Economics and Technology will probably offer German companies export platforms at 242 foreign trade fairs. The most important target region is East/Southeast/Central Asia with 96 trade fairs, of which 53 will be in China and Hong Kong, followed by other European countries outside the EU (58, of which, 54 in Russia), as well as the Middle East (36) and North America (23). In 2005, about 6,700 exhibitors, primarily small and medium-sized com-panies, took advantage of the joint stands, a total that was higher than ever before. With a budget of 36 mill. Euro, a total of 232 participations could be realized. Since autumn 2005, AUMA has considerably intensified its marketing pro the trade fair medium. Under the motto “Optimessmus – Trade Fairs: Your way to success”, it is supporting the trade fair organizers in their efforts to attract of new German exhibitors. In doing so, AUMA makes use, among other things, of posters on Inter-City Express trains, an own web site – www.messe-start.de – as well as brochures with tips for the successful first trade fair appearance. In addition, AUMA also supports the exhibitors when it is a matter of measuring the success of their trade fair participations. The Trade Fair Benefits Check, which is available online, is already used by almost 15% of all German exhibitors. For the protection of the exhibitors from the increasing brand and product piracy, AUMA has published information sheets. They contain recommendations outlining how exhibitors can already take care of the protection of their intellectual properties prior to a trade fair through the registration of patents, use and taste patterns. However, many companies still continue to behave too recklessly in this connection. Press contact: Harald Koetter, phone: +49/30/24 000-140, fax: +49/30/24 000-340, email: h.koetter@auma.de