Event organisers, suppliers, venues and artists in New Zealand are among those in a fight for survival with the global
coronavirus pandemic causing a 100 per cent loss in activities and revenue, even before the country’s alert level 4
lockdown came into effect.
As a result, some have laid off staff, filed bankruptcy or are considering exiting the events industry altogether due to
its uncertain future. The latest survey carried out by the New Zealand Events Association (NZEA), an independent body
representing the events industry, indicates the dramatic deterioration of the sector.
The survey shows that more than 5,000 events have been cancelled to date. A further 3,393 events are postponed
indefinitely with another potential 5,000 to follow in the next six months. As a consequence, hundreds of full-time
equivalents have already been lost or projected to be lost from the sector in the coming months with businesses
reporting a gross profit loss of approximately $100m.
The numbers will only worsen if the lockdown period extends further than the four weeks initially announced. While the
Government’s financial support is a start, the majority of respondents say that it is not enough to save the industry.
With business events alone contributing around half a billion NZ$ per annum to the country’s economy, many in the
industry wonder what it will take for the Government to recognise the industry’s plight.
In addition to an extension of the 12-week wage subsidy scheme, the sector is seeking immediate financial assistance
with overheads costs, rent freezes on commercial properties and tax relief, says NZEA General Manager Segolene de
Fontenay.
“We have grave concerns that, without this, many event-related businesses will disappear over the coming weeks and
months. It will jeopardise the significant contribution the events industry can make to the post-COVID recovery of New
Zealand’s domestic – and, when global conditions allow, international – tourism sector, the event’s host regions and the
country’s social, cultural and economic wellbeing,” she says.
New Zealand National Fieldays Society CEO, Peter Nation is quick to concur, “As soon as mass gatherings over 500 people
were prohibited, Mystery Creek Events Centre, which held 114 events last year, went to zero income and we were faced
with postponing the iconic and world famous Fieldays® event for the first time in 51 years.” Fieldays held annually in
June, consistently contributes more than $500m in sales revenue for NZ firms and generates more than 2000 jobs each
year. An economic impact assessment by the University of Waikato calculated that the 2019 event added $247m in GDP to
the economy.
Peter continues, “Fieldays is about as representative of the events eco-system as you can get, it takes nearly every
available marquee in New Zealand across its 1,500+ exhibitors, which are supported by event designers, AV suppliers,
lighting and power companies – the list is exhaustive, same as many other events – none of which can be held in the
future without those within the broader events ecosystem surviving.”
Confidence is another key obstacle to the sector’s recovery. Many events require months of lead time to attract sponsors
and exhibitors, promotion and ticket sales. With no certainty around when events can be re-booked and how public
gatherings will be treated by the Government, sponsors are likely to be cautious with their investments. Consumers too
will need to overcome their own financial hardships as well as health concerns around attending large public gatherings
again.
“With every part of the events sector hurting financially for nearly two months already and facing the reality of no
projected revenue for the foreseeable future, we fear it is not a case of simply re-booting when we’re given the green
light,” says de Fontenay. “We need both short and medium-term targeted Government support for these operators urgently,
or we simply might not have these essential events that inject millions into the economy and other industries post
COVID-19,” she concludes.