Largely positive business confidence and greater global economic certainty is likely to stimulate demand for business events.
Melbourne, Australia (PRWEB) December 15, 2014
Operators in the Exhibition and Conference Centres industry in Australia have performed moderately well over the past five years. Industry revenue is projected to post 3.5% annualised growth over the five years through 2014-15, to reach $10.8 billion. The global financial crisis caused revenue to plummet during the two years through 2008-09. According to IBISWorld industry analyst Brooke Tonkin, “When the financial crisis hit, business confidence diminished and firms cut back spending on non-essential expenses such as conferences.” Improved business confidence over the two years through 2010-11 helped generate renewed demand for corporate events, meetings and conferences. Rising demand contributed to the industry's revenue jump and overall recovery during the two-year period.
Renewed demand for exhibitions also helped fuel the industry's recovery early during the five-year period. Improved demand from industry associations, which commonly hold large events such as exhibitions, was a major contributor to rising exhibition numbers. Furthermore, rising business confidence caused businesses to focus on attracting new customers through marketing activities such as exhibitions, rather than just retaining existing customers. The high Australian dollar over the two years through 2012-13 constrained the industry's performance for part of the five-year period. “Many overseas corporations refrained from holding, or sending employees to, Australian conferences and other events since the high dollar increased the cost of doing so,” says Tonkin. Modest growth of 2.2% is forecast for 2014-15. The industry displays a low level of market share concentration.
More stable conditions are anticipated over the next five years. Largely positive business confidence and greater global economic certainty is likely to stimulate demand for business events. The Australian dollar is forecast to depreciate further over the next five years. As a result, Australia will become more price competitive and less expensive for international delegates, creating a competitive advantage over competing foreign industries. With the positive externalities provided by major events to event localities, government assistance for the Exhibition and Conference Centres industry is expected to grow. Such assistance is evident in Queensland winning the bid to host the 2015 Global Summit on Cancer Therapy in Brisbane.
For more information, visit IBISWorld’s Exhibition and Conference Centres industry in Australia report page.
This industry includes companies involved in organising and hosting exhibitions and conferences. Industry revenue comes from venues (for example, convention centres and hotels) that are hired for events. Revenue also comes from event organisers and is typically generated from venue hire, registration fees, food and beverage sales, and accommodation.
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