The Australian economy is set to lose $35.7 billion in direct expenditure over the next 12 months, as nearly all business events scheduled for 2020 (96%) are cancelled or postponed due to COVID-19, new figures from the Business Events Council of Australia (BECA) show.
The data, derived from a study of businesses across the business events industry, projects that a further $17.2 billion in direct value to the economy will be wiped out – on top of the loss of direct expenditure – as a result of the global pandemic which has rapidly, and indefinitely, closed down events in Australia.
Staffing losses across the industry are estimated to hit over 92,000 between the end of 2019 and 30 June 2020. Of those staff already laid off between the end of 2019 to March 2020, four in five (78%) were casual or freelance workers, while one in five (22%) were employed on a permanent basis. Three in five businesses working in the industry (59%) believe it will take them a year or longer to recover once COVID-19 is no longer impacting health, revealing the extent to which the highest yielding component of Australia’s visitor economy has been decimated by the pandemic.
The industry is one of the quiet achievers of the Australian economy, growing at around 6% annually since 2014. In FY19 it directly generated over $35 billion in economic activity and employed over 229,000 people across a range of sectors and trades. However, the industry now faces 100% loss of revenue due to the escalating effects of COVID-19, on top of bushfires earlier this year.
In response, the peak industry body, BECA, today announced that it is working with the Government to urgently implement a coordinated industry strategy. The COVID-19 Business Events Response and Recovery Framework aim to sustain the business events industry over the next 12 months and position it to rebound and grow effectively following the pandemic.