The land Down Under. Say this phrase to most people and they’ll picture kangaroos, the Sydney Harbour Bridge, white sandy beaches and the red centre’s arid plains. But Australia isn’t just a sunseeker’s paradise or natural wonder; it’s also one of the world’s more dynamic and resilient mature economies. And while smaller in stature than its European, US and Asian counterparts, the country’s exhibition sector is a vibrant one, fiercely committed to growth and innovation.
Australia’s exhibition market is predominantly national in terms of exhibitors and visitors, with the bulk of shows held in its two largest state capital cities: Sydney (New South Wales) and Melbourne (Victoria). That said, event infrastructure is available and utilised across other states and territories where sectors are large enough to warrant their own or additional state-based events.
Diversified Exhibitions Australia for example rotates the national annual edition of its Fine Food trade show between Sydney and Melbourne, then holds biennial editions in Brisbane and Perth, while Reed Exhibitions stages its Gift Fairs in Sydney and Melbourne annually. The two organisers are the largest players in the country, followed by Informa-owned Australian Exhibitions and Conferences (AEC), Exhibitions and Trade Fairs and Expertise Events.
One exception to the geographic rule can be seen in the resources sector. Because a significant proportion of Australia’s natural resources is located in Queensland and Western Australia, shows covering booming markets such as oil and gas, and mining and energy, will head to where buyers are.
“Australia has a strong economy, currency and strong import opportunities as a result,” Diversified Exhibitions Australia MD and EEAA chair Matthew Pearce says. “The fluctuation in the value of the dollar makes this place incredibly expensive when you’re coming from abroad. But if you can land deals and sell product competitively compared with the expensive goods produced here, there are business opportunities.”
Ask any organiser what stymies growth – besides a population of 22m and its physical location – and most will point the finger at limited infrastructure. When it does take events to western Australia, Diversified is wall-bound by a 10,000sqm venue in Perth, which is also Australia’s fastest growing state capital. Both Sydney and Melbourne’s main venues are full in 2013.
But external economic forces are influencing trade. Although the global financial crisis of 2008/2009 affected the country less than most, the Australian market has been impacted by more recent economic turmoil, Australian Exhibition and Conferences (AEC) MD Harvey Stockbridge says.
“The biggest challenge we face today is sentiment of the industry and consumers,” Stockbridge claims. “Savings are at their highest rate since 1984 and people don’t want to spend, so we’ve had to market things even harder.”
Australia’s growth in the last 10 years revolved around mining, construction, housing and the retail industry and Stockbridge pointed out retail is disproportionate to the population level. Tougher trading conditions have slowed some sectors but predominantly bruised uncompetitive retailers rather than caused major disasters.
“As a whole, the number of visitors and exhibitors is shrinking, but we still have a visitor density that ensures exhibitions are successful,” says Stockbridge.
“In our key fashion and retail sectors, our measurement of success until eight years ago was getting the best attendance. Now it’s about the best outcome for a reduced number of exhibitors but a higher level of retail discernment.”
Yet economic uncertainty and jostling for space aren’t curbing launch plans. According to the Exhibition and Event Association of Australasia (EEAA)’s Market Monitor survey to 30 June 2012, Australian exhibition and event organisers plan 27 event launches in 2013, up from 20 last year.
In all, 649 events were hosted in Australia including 136 by EEAA members, attracting more than 1.6m visitors and 22,898 exhibitors. These covered 512,000sqm and utilised more than 1.13m sqm of venue space. Sixty-two per cent of respondents said turnover increased year-on-year and 64 per cent believe the sectors they are operating in are growing.
Reed Exhibitions Australia MD Debbie Evans claims business sentiment in the last three years had been adversely affected by the minority government led by Labor Prime Minister Julia Gillard.
“Australia will have an election this year and if we get a definitive government, that will lead to more definitive business as well,” Evans tells EW. “We also need to keep an eye on the US because if they don’t find a final solution to the fiscal cliff, that naturally flows through to us.”
State forces
One of the unique influencers on business in Australia is the power of individual state governments, which control building works and transport through to education. On the plus side, this fosters state-based competition, but it also means the country picture can be missed.
According to Evans, state recognition of the economic benefit events deliver is growing, led by Victoria’s progressive stance. More recently, this has set-off an infrastructure building boom.
The enlargement of the Brisbane Convention and Exhibition Centre’s convention facilities by 52 per cent last year freed up more exhibition space, while South Australian capital Adelaide is also firmly committed to a $350m (US$363.7m)expansion project increasing Adelaide Convention Centre’s offering. Stage one will add 4,300sqm of multipurpose floor space by 2014.
Perth is also lobbying to increase its capacity for events on the back of plans to improve the city’s waterfront district.
Arguably most significant is Melbourne’s dedicated convention centre, which opened in 2009 and has led to a 35 per cent rise in revenue and projections of $66m this year, Melbourne Convention and Exhibition Centre CEO Peter King says. Exhibitions represent about 50 per cent of revenue.
“In 2013-15 we will have our biggest years and we’re still turning away about 30 per cent of the business that comes to us,” he says. “This industry needs more space as there is a lot of pent-up demand, while we’re also seeing the mix of shows changing.”
One of the most significant and controversial infrastructure developments impacting Australia’s exhibition industry is happening in its largest city now. The $1.1bn regeneration of Sydney’s Darling Harbour precinct will see the Sydney Convention and Exhibition Centre (SCEC) and adjacent entertainment centre demolished in favour of an integrated International Convention Centre (see breakout).
Redevelopment problems
While the infrastructure investment aims to improve Sydney’s position as a global events destination, exhibition organisers claim a lack of long-term vision around exhibitions. Their biggest complaint is the loss of more than 25,000sqm of pillarless exhibition space for a two-floor configuration encompassing a columned 20,000sqm ground hall and pillar-free 13,000sqm upper hall.
Making up the promised 40,000sqm is a 5,000sqm outdoor deck and 2,000sqm next to the convention centre, both of which organisers claim will be next to useless. And because funds have been channelled into Darling Harbour, potential improvements to the only possible 25,000sqm alternative, the less accessible Sydney Olympic Park at Homebush, have been taken off the table.
“The plans for the ICC Sydney are not the best solution for growth of our industry,” Evans says.
“We’re happy the NSW Government has done something, but it’s a minimal space increase – our request for at least 40,000sqm wasn’t visionary – and we will fill that in 10 years.
“The government solution fits the budget as opposed to what the exhibition industry needs and therefore what it can deliver back on that investment.”
Pearce labels Sydney’s redevelopment as “an opportunity lost”. “State governments will still provide funding to attract international conventions to the cities, yet these come and go while exhibitions are guaranteed every year and generate far more absolute business for the industries we serve.
“If you went back 25 years, Darling Harbour was seen as a white elephant and the MCEC an example of Jeff Kennett’s [Victorian Premier] ego. Yet both have been at full capacity for several years.”
General manager of site developer AEG Ogden Geoff Donaghy points out Darling Harbour wasn’t a greenfield site but an urban, waterfront location. “There may have been greater expectations from the exhibition industry, but this is the best possible decision under the constraints presented and represents a significant increase in size,” he claims.
“We designed to the Government’s specifications, providing maximum flexibility and to quality standards. We have the long-term view in mind, which is to re-establish Sydney as the premier international events, exhibition and convention destination.”
Infrastructure NSW general manager Tim Parker says having a two-level configuration is not dissimilar to venues in Singapore, Hong Kong and Vancouver. Detailed plans for ICC Sydney are expected by March. “We have to be efficient with design and not denigrate the precinct itself; we didn’t want to lose the location’s appeal by filling it up with buildings,” he says.
Parker also claims the ICC Sydney will raise venue standards to international levels. The agency reported 142 national conventions and 12 exhibitions have been lost in the last five years because of infrastructure limitations.
EEAA general manager Joyce DiMascio takes a pragmatic view, pointing out AEG Ogden will engage further with industry as plans are finalised. While the pillars won’t disappear, there is room to minimise their impact by negotiating where escalators are installed and entrance are placed.
One party spying opportunity from Sydney’s transformation is Melbourne. The MCEC has already earmarked a 12,500 adjacent site as additional exhibition space, bringing its capacity to 42,500sqm across one level, without pillars. Funding isn’t on the table this year but it is top of the infrastructure list for the state’s tourism ministry and could get the go-ahead now Sydney’s plans have been announced.
Several MCEC shows are wall-bound such as the Gift Fair, Australian International Motor Show and Fine Food, King says. “With further expansion, we can offer the whole package. The convention centre was built on the pretext of interstate and international visitation and that has been our focus for the last three to four years. But exhibitions are strong, profitable pieces of business and we want to grow that because of the compromised facilities elsewhere.”
As debate rages on Darling Harbour, the immediate focus is how organisers will utilise an interim 25,000sqm Sydney Harbour Expo@Glebe Island site provided by Infrastructure NSW to house exhibitions while the permanent Sydney facilities are built. Ironically, the one-level site is more appealing to many organisers than the future ICC Sydney.
DiMascio is delighted with Glebe Island. “We have influenced the brief in terms of what was created, as well as provided a business continuity strategy for the exhibition industry,” she says.
“Appointing event experts Echo and Pages was a good outcome for us and I foresee a greater appetite for long-term use and remediation of the Glebe Island precinct.
“It’s also a terrific success because we’ve managed to unbundle exhibitions from conferences.”
Pearce believes Glebe Island’s success will come down to getting people in and out, while Evans encouraged Infrastructure NSW to focus on ensuring a seamless business transition from the SCEC.
Areas of opportunity
Venue concern aside, organisers remain optimistic about future growth. According to the Market Monitor, lifestyle is the strongest industry with 52 per cent offering events in the sector, followed by business and retail/wholesale (33 per cent apiece), health, hospitality and manufacturing.
According to King, there’s a lot of work left to do in the resources sector, sustainability, agriculture, food, safety and digital innovation. He reports 43 per cent of the venue’s convention turnover is in biomedical and scientific events, a figure not reflected by exhibitions.
King also doesn’t see why Australian exhibitions couldn’t be more international, although his view isn’t shared by others, who point out neighbouring Asian countries such as Thailand, China and Hong Kong offer more venue space, better regional transport links and bigger audiences.
Pearce predicts numbers will rise at its third Australasian Waste and Recycling Expo in Sydney this year. “Other launches will come down increasingly to niches,” he says. “We launched our food-to-go show Lunch last year. We’re holding that in Sydney and Melbourne in 2013. It’s the natural evolution of a mature exhibition market.”
Reed’s new offerings will also take advantage of niche interests. Its POP division, a spin-off from the US, launches its first Penny Arcade Expo in Melbourne in July. Ecommerce Melbourne will also debut this year and stems from Reed’s acquisition of the Online Retailer expo in Sydney in 2010.
Australia’s quick adoption of new trends and technology are also driving shows and content.
“There are definite launch opportunities here, but it takes more time to get them to a meaningful size,” Evans says. “We’re too far away to get vast international numbers and although we do get visitors from Asia, growing hubs such as China and Indonesia will keep business in the rest of the region.”
Forging ahead
While concerns over the country’s long-term exhibition capacity are persistent, the capability to grow and innovate is strong. “We have a vibrant, healthy exhibition industry in Australia and we don’t have enough venues that can service that, which is frustrating,” Stockbridge says. “We do have amazing shows here and talented people. Australians like a trade show.”
Broadcasting the country’s good news story about exhibitions, is ongoing. Most use the Sydney redevelopment as proof that there’s still a long way to go before exhibitions command the level of investment conventions do.
It might take time to get the metrics right, but the EEAA believes Australia’s exhibitions can get the recognition they deserve. “The reality is this industry keeps seeing opportunities and we have a dynamic and flourishing sector,” says DiMascio.
“People still believe in the power of face-to-face. We have to keep telling our story and leverage opportunities around the infrastructure developments to convey our importance.”
This was first published in the Issue 1 edition of EW. Any comments? Email exhibitionworld@mashmedia.net
