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Financial losses and staff shortages significantly jeopardise the New Zealand Events industry

Financial losses and staff shortages significantly jeopardise the New Zealand Events industry
September 27, 2021

The latest survey from the NZ Event Associations on the continued impact of COVID-19 shows the New Zealand Event Sector is likely experiencing the greatest consequences of any industry with the viability of the industry being significantly jeopardised. As well as significant financial losses, the uncertainty over responses to COVID has resulted in staff shortages - the result of redundancies, the lack of access to international talent, and general uncertainly about the industry’s future.

55% of respondents to the NZ Event Associations latest survey stated that the recent COVID-19 response has had a considerable financial impact on their organisation, while a further 23% stated that it had a moderate financial impact. The organisations that were willing to share their financial impact reported losses of up to $2 million dollars each with an average loss of $167,000 per organisation, and total losses of $17.5 million.

The NZ Event Associations advise that this represents just a small portion of the industry and considering the significant size of the event sector, the total financial impact will undoubtedly be many orders of magnitude higher. While this reflects a big hit to the sector, should higher alert levels remain then the impact will only worsen as we move into spring and summer, traditionally the busiest time for events.

Due to the time of year, mainly business events, conferences, exhibitions and trade shows have been affected – many representing millions in lost commerce for other industries as well as the direct effects on the events sector and its supply chain including The Baby Show, Spring Gift & Homewares Fair, Auckland Boat Show and leisure events like WOW, AIMS Games, Land Rover Horse of Year, sixteen performances of Mary Poppins, and the Auckland Marathon. In addition, events such as New Zealand Fashion Week, Motorhome Show, Home Shows, Armageddon Expo (just to name a few) have been put on hold until further alert levels are announced.

The Events Sector is likely experiencing the greatest consequences from the COVID-19 response of any industry - many events can realistically only take place at level 1 and the uncertainty is causing event professionals to leave the sector with the viability of the industry now significantly jeopardised.

Long-term, the sector is already facing a skills shortage with many event professionals having already left the industry due to COVID-19 impacts. More are likely to follow. This shortage is the result of redundancies, the lack of access to international talent, and general uncertainly about the industry’s future. This is particularly concerning with recruitment and planning underway for significant major events such as the ICC Women’s Cricket World Cup 2022, Rugby World Cup 2021 and the FIFA Women’s World Cup 2023, all of which have received Government investment.

The events industry continues to be heavily impacted by lockdowns and many operators are particularly concerned considering the latest statement from Dr Bloomfield stating that more than 90% of people would need to be vaccinated before officials could be confident of moving to Level 1.

NZ Event Associations General Manager, Segolene de Fontenay notes “without clear and concrete measures in place ahead of the peak events season, 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 international tourism when our borders open again) and delivering on a world class event industry that Kiwis more than ever need within this period of COVID-19 Delta variant induced austerity”.

The NZ Events Association is urgently requesting government support: 

Targeted and extended financial support as currently “not fit for purpose”:
Event professionals are effectively faced with zero revenue from the very beginning of an outbreak, until the very end - at best. The reality is that the ongoing uncertainly, coupled with event planning lead-times, results in impacts well beyond the end of an outbreak.  A targeted fund is proposed for event businesses and its supply chain proportionate to the decline in revenue due to COVID-19-cancelled events when compared to pre-COVID-19 turnover.

A risk-based approach to events at Alert Level 2:
This recognises that not all events present the same level of risk. As signalled since mid-2020, events can take place safely under a prescribed COVID-19 management framework at Alert Level 2 with industry-led guidelines for risk minimisation. A pertinent comparison is shopping malls permitted to trade at Alert Level 2, yet they have far fewer controls around crowd movement, record keeping, infection prevention, etc, than an event such as a tradeshow or exhibition can achieve. Events are ticketed so contact tracing is not an issue.

A Government-backed insurance scheme for events:
Given the risks of future Alert Level changes preventing the delivery of events and with plenty of buy-in from the Events Sector, the Government has been asked to underwrite events for $50 million providing a safety net for events professionals from COVID-19-related impacts. This in return would ensure events a key driver of economic and regional development as well as a significant contributor to tourism at all levels (With one third of domestic tourism driven by people attending events). This is on top of the much-needed social well-being for all New Zealanders with events helping to improve social cohesion, community spirit and pride.

Adding ‘tools to the event toolbox’:
Such as rapid COVID-19 testing (i.e. Rapid Antigen Testing) at events to work alongside the country’s increasing vaccination rates on top of the now mandatory record keeping for indoor events.

Improved MIQ systems:
More spots in MIQ with a consistent, fair and speedy system which would enable the critical long-term planning events professionals need to secure international talent and participants.

Image top: Auckland Marathon organisers remain optimistic that they can hold the ASB Auckland Marathon as planned on 31st October 2021; Image centre: Mary Poppins has been postponed in New Zealand until further notice. Image courtesy; Image above Hamilton’s Seddon Park will host seven International Cricket Council (ICC) Women’s Cricket World Cup matches in 2022, including two featuring New Zealand’s White Ferns.The 2022 ICC Women's Cricket World Cup will be the twelfth edition of the Women's Cricket World Cup and is scheduled to be held in New Zealand in March and April 2022. It was originally scheduled for 6th February to 7th March 2021 but was postponed by one year due to COVID.

Related Articles

20th July 2021 - 2021 NZEA NZ Event Awards attract record entries despite COVID impact  

29th June 2021 - NZ Events Association appoints new Chair and Deputy-Chair

7th April 2020 - New Zealand Events Association highlights dramatic deterioration of the sector

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