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 percent) are cancelled or postponed due to COVID-19 (coronavirus), 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 percent) were casual or freelance workers, while one in five (22 percent) were employed on a permanent basis.
Three in five businesses working in the industry (59 percent) 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 percent annually since 2014. In 2019, 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 percent loss of revenue due to the escalating effects of COVID-19, on top of the bushfires earlier this year.
In response, the peak industry body, BECA, today announced that it is working with the Australian government to implement a coordinated industry strategy. The COVID-19 Business Events Response & Recovery Framework aims to sustain the business events industry over the next 12 months and position it to rebound and grow effectively following the pandemic.
Chair of the Business Events Council of Australia, Dr. Vanessa Findlay, said in a statement, "Supported by a well-developed policy aligned to Australia’s competitive strengths, the business events industry will play a critical role in the recovery and rebound of Australia’s broader economy from this pandemic.”
The COVID-19 Business Events Response & Recovery Framework, which is currently being finalized in consultation with the government and will be made public at a later date, comprises of two key phases: Response and Recovery (rebound and regrowth).
Visit www.businesseventscouncil.org.au.
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