Covid costs NZ events industry 20k gatherings, $570m

8th September 2020 By Bridget O'Connell | bridget@tourismticker.com | @tourismticker

The events industry saw more than half of all events for 2020 – some 20,000 gatherings worth an estimated $570m to the economy – cancelled or postponed due to the Covid-19 outbreak, according to a new survey.

The New Zealand Events Association, which led the joint Taking the Pulse survey alongside Conventions & Incentives New Zealand and three other industry organisations, estimated that the more than half-a-billion dollar loss occurred between March and August.

Segolene de Fontenay

NZEA general manager Ségolène de Fontenay, said: “More than half-a-billion dollars is a significant number when considering the number of jobs, economic and social benefits events deliver, but also the lost revenue to the country in terms of GST takings and regional contribution.”

The joint survey also found that employers had cut their workforce by 35% from pre-Covid levels, however, the full extent of job losses could be much worse, according to NZEA.

“NZEA consider that this is a conservative estimate given the high number of part-time workers, contractors and specialists this industry typically attracts,” the association said.

The survey, which also included Entertainment Venues Association of New Zealand, Entertainment Technology New Zealand and the New Zealand Promoters Association, saw 361 organisations respond.

Separately, NZEA also conducted its own survey of its members and found uncertainty was top of the sector’s concerns.

According to the NZEA survey, to which 214 organisations responded, the main challenges foreseen by the industry for the next six months were:

• 92% Lack of certainty – due to unknown future alert levels
• 82% Requirements under alert level not workable
• 64% Lower number of attendees
• 57% Events not ‘worth’ the financial risk – with insurance not covering for Covid-19 cancellation
• 54% Lack of funding (sponsorship, councils, trusts and gaming machines)
• 48% Closed borders
• 34% Lack of requests/leads

NZEA called on the Government to address the uncertainty through four pillars of action, starting with “consistency and clarity of language around events that clearly differentiates ‘controlled events’ from ‘social and mass gatherings’”.

Secondly, it asked the government to work with the events sector to define future guidelines for controlled events.

Thirdly, given the long lead time involved in the events industry, it called for a “concrete plan” from the government to address how future outbreaks and alert level shifts would be managed so that the sector was not “left floundering without a clear path ahead”.

NZEA said that many in the sector suggested the Government take an underwriting approach to events given that insurance providers would not cover for Covid-19 cancellation.

Finally, the industry sought targeted support such as a further wage subsidy extension for the event organisers and suppliers unable to deliver or postpone their events at alert level 2.

“Without these needs addressed,” de Fontenay said, “the Government runs the risk of losing its capability, expertise and its supply chain which have been instrumental in driving investment, economic and social benefits, domestic tourism and delivering on a world class event industry that Kiwis more than ever need within this period of Covid-induced austerity”.