Spain’s leading cities are among the best-known exhibition destinations in Europe. As with the German model, they are publicly owned, but as is often the case, the public sector is not entirely in step with private enterprise.

Outside of Spain’s major exhibition hubs; the industrial heavyweight Bilbao, commercial and Catalan capital Barcelona, coastal city and host of this year’s UFI Congress Valencia, and national seat of governance Madrid, there are many venues in Spain that are simply devoid of the international exhibitions they are well capable of hosting. Nowhere is this evidenced better than in the north eastern city Zaragoza, host of Expo 2008, a major world’s fair event focused on water and sustainable development. The venue has almost 190,000sqm of covered space and a noticeable dearth of international exhibitions.

The country has huge appeal for tourists, major investment potential as Europe’s fifth largest economy and all in all more than 80 exhibition centres of varying size. And before anybody plays the economy card, Spain’s problems with filling the space available in its nationwide network of exhibition sheds precedes the global financial crisis. Far from being an excuse for the issue, the crisis is a reason for a renewed commitment to pack these venues with people. Spanish recovery is dependent on its export industry. So what needs to be done to fill these venues?

“We are aware of the situation that Spain is facing, and it’s not the best for our industry,” concedes Jose Miguel Corres, CEO of Bilbao Exhibition Centre. “Like everybody in the sector, we are always considering new projects. At the moment we have two projects ready to be launched. The big question is when? Firms need to make cash before attending shows or engaging in other marketing activities. That is the situation we are in. We are aware that the ‘early bird catches the worm’ but we also know that a good project could be ruined by bad timing.”

Bilbao’s industrial prominence in Spain means the majority of its shows sit in sectors such as heavy industry, steel production, forging, capital goods, machine tools, automotive engineering and energy. As a result its major shows are related to B2B, machine tools (BieMH), hardware (Ferroforma), small producers of components for other industries (Cumbre Industrial and Subcontraction), the maritime sector (Sinaval Elite) and energy (EFEF).

“The Government is aware of the importance and dissemination of the effects of MICE activities and wants to encourage them, but their main reason is to help exports,” Corres adds. “The biggest challenge is to recover the levels of activity and figures that we had prior to the crisis, mainly in the bigger shows that we run.

“At the same time we must accept that some areas will never be the same again, and must continue developing new business.”

Through a new strategic plan involving adapting former events to the current time and situation, and creating new shows demanded by the markets, Bilbao hopes to double its turnover in a six-year time-frame.

In the capital, at Feria de Madrid (IFEMA), Luis Eduardo Cortes is also facing the daunting prospect of growing his business in a complicated environment. IFEMA, with the support of its four member institutions the Community of Madrid, the City of Madrid, the Chamber of Commerce and Caja Madrid, oversees 80 trade fairs and 400 annual meetings.

“Without any doubt our guiding mission is to become more and more competitive, now more than ever given the financial situation today,” says Cortes. “To do this it has been essential to innovate, investigate new projects, establish strategies and forge alliances that afford us access to international markets and allow us to consolidate our position.”

Agile adaptation

Cortes maintains IFEMA has strived to adapt in an “agile” manner to current circumstances, developing new fairs and acquiring products that are already well-established, while entering previously unchecked market niches that he refers to as “outside the fair circuit” until now. And the search for competent partners to develop new initiatives is ongoing.

This policy also extends to infrastructure, which has been dynamic, responding to the needs arising from demand, modernisation needs and the development of new architectural projects.
“The most recent and ambitious of these,” says Cortes, “is the design of a themed space in the new halls that serves to provide Madrid with a specialised facility for fashion and lifestyle events including two permanent catwalks. Shows on fashion and style could be major contributors to the success of Spanish exhibitions. The country is after all blessed with that exportable Mediterranean style shared by neighbouring Italy and France.

“We believe that Madrid, despite Spain’s current adversity, will continue to show signs of recovery,” Cortes adds. The economic impact today generated by the IFEMA’s trade fair activity amounts to US$2.7bn annually, about one per cent of Madrid’s GDP and sustains 40,000 direct and indirect jobs. “In this way, our obligation is to continue along these lines and continue to bolster our different activity sectors,” maintains Cortes, pictured below.

The Catalan capital

Fira de Barcelona has a portfolio of 70 trade shows, 15 of which are ranked among the three leading events in their speciality in Europe. These  bring together 35,000 companies (direct and represented) and receive three and a half million visitors every year. The venue recently completed its Gran Via Venue with two new halls that add up to a total of 240,000sqm of exhibition space, which means that today its exhibition floor space covers 405,000sqm with the Montjuïc and Gran Via venues.

It too is feeling the squeeze, and for the first time in its history is adopting the German international model; launching new events in China. It will organise an edition of Construmat in Beijing from 11 to 13 July 2012 thanks to an agreement reached with the China Council for the Promotion of International Trade (CCPIT). Construction grew 26.7 per cent in China so it’s understandable MD of Fira de Barcelona, Agustín Cordón, would go looking for a slice of this market. In addition Fira de Barcelona’s Hostelco will have its own pavilion at HDD Shanghai, aimed at equipment suppliers for the hospitality sector, following an agreement reached with organiser UBM Sinoexpo.

Barcelona is also organising its own shows in Latin America, channelling Fira exhibitors into foreign events and selling services, technology, management and advice to other organisers and exhibition centres.

Although Barcelona has developed a dynamic service sector connected to the tourism industry – it is home to Reed’s EIBTM business travel and events show – one of the strongest pillars of its economy continues to be the industrial sector. Barcelona is a prominent actor in chemical, electronics, logistics, motor, printing, textile, telecommunications and information technology service industries. The greater Catalan region is with good reason the richest of Spain’s 17 semi-autonomous regions.

Pere Camprubí, director of expansion at Fira de Barcelona, explains that regardless of demand, the venue and organiser still needs government assistance.

“By supporting us, the Government is supporting the industry. Amid the current economic crisis, which often implies a weak internal demand, Spanish companies need to go abroad,” he says. “What in the bonanza years was just advisable is now a must. And that is what we are trying to do: help medium and small companies to reach new markets.”

Sailing Spain out of the choppy waters

Going abroad certainly seems to be the order of the day. The Spanish professor of economics and La Caixa bank chair of corporate social responsibility and corporate governance Antonio Argandoña, paints a sobering, if poetic, picture of his beleaguered European country for EW.

“When we discovered the hole at the bottom of the ship we fled the water until we reached the deck. But still the water is coming in. And we have nowhere left to go. The private sector has recognised the situation and adapted, but alas the public sector has not.”

But there’s no escaping the facts. Soaring national debt, a 21 per cent unemployment rate and a nationwide reluctance to spend manifests in economic adversity the likes of which Spain hasn’t seen in years. It’s enough to send a shiver down the spine of any investors, not least its fellow Eurozone nations such as France and Germany.

“Germany doesn’t care about Spain’s debt,” says Argandoña. “Their politicians aren’t interested so long as we remain able to repay what we owe. We still have no help from anyone and if we do, it will be only to ensure that we can keep making repayments to our creditors. We can only help ourselves. And it’s the involvement of foreign industry and export business that can help us.”

This is where, for both Spanish trade and the exhibition and trade fair industry, the story takes a lighter turn. Our industry is built around facilitating foreign investment and export. Argandoña’s reference to Spain’s need to take full responsibility for dragging itself out of the red is pertinent. With its ongoing economic difficulties, wealth of beautiful cities and modern facilities, the exhibition industry is hugely important to Spain. Exhibitions are crucial tools in fomenting and beckoning foreign investment and fuelling the export market. In light of domestic reluctance to spend, perhaps the launch of innovative now shows such as Smart City (see column, page 48), which will bring a new breed of investor to Spain, and the launch of overseas exhibitions such as Fira de Barcelona’s Construmat and Hostelco, will pave the way for wholescale industry growth.

The aggressive promotion of Spain’s leading exhibitions such as food and beverage (F&B) event Alimentaria (a joint venture with Reed Exhibitions) will also do much to help. The F&B industry accounts for 15 per cent of Spain’s GDP and 17 per cent of employment, so flying that flag, and those of Spain’s other major industries, could have a far-reaching effect for Spain’s economy.

Any comments? Email exhibitionworld@mashmedia.net