THE cancellation of trade fairs in the first half of the year cost the Philippines nearly P3 billion in export sales, and this is expected to shoot up should organizers decide to call off events for the second half, a likely possibility if the coronavirus pandemic worsens.
Data obtained by the BusinessMirror showed that exporters lost at least P2.91 billion worth of sales from the suspension of local and overseas trade shows in the first and second quarters. For the period, no less than eight events here and abroad were either deferred or canceled, as states try to contain the spread of Covid-19 within their respective jurisdictions.
The Center for International Trade Expositions and Missions (Citem), the export promotion arm of the Department of Trade and Industry (DTI), reported that it postponed CREATE Philippines and the maiden run of the Sustainability Solutions Expo (SSX).
Further, five overseas trade fairs, namely, South by Southwest and Summer Food Show in the United States, International Food and Beverage Exhibition in Japan, Fuorisalone in Italy and the Taipei International Food Show in Taiwan, were called off by organizers.
The deferral of CREATE Philippines and the SSX and the cancellation of the five events abroad are estimated to result in $55.9 million—around P2.83 billion—in sales losses for exporters, the Citem said in an e-mail to the BusinessMirror.
Likewise, the postponed National Food Fair, originally slated from March 12 to 15, had a projected sales of P83 million. Some 268 micro, small and medium enterprises (MSMEs) from 16 regions were supposed to participate in the event to sell their products.
According to the DTI’s Bureau of Domestic Trade Promotion, if the ban on mass gatherings will be retained for the whole of 2020, then it will be left with no choice but to call off as well the National Trade Fair (NTF) in October.
Last year the NTF generated P86 million in sales for the 285 MSMEs that exhibited their goods in the annual trade show. The NTF this year was projected—before the pandemic broke—to tally better.
Trade Undersecretary Abdulgani M. Macatoman said the events were moved to a later date to ensure the safety and security of participants, as the Philippines struggles to curb its Covid-19 cases that now number over 7,000, one of the highest in Southeast Asia.
“2020 was set to be a big year for Citem, especially with the launch of SSX, the country’s first international sustainability trade show. However, we opted to postpone these signature events, along with CREATE Philippines, to prioritize the health and well-being of our stakeholders,” he explained.
The missed sales in trade fairs will rise further if the Citem projects for the second half, such as the Manila FAME, are canceled, along with overseas events that generate multimillion-dollar orders for MSMEs.
Trade shows awaiting developments on the pandemic are: PHX Tokyo; Malaysia International Halal Showcase; Interior Lifestyle China; China-Asean Expo; Maison & Objet, Premiere Classe and SIAL in Paris; and the China International Import Expo (CIIE). Their organizers were forced to take a wait-and-see mode on uncertainties caused by the health crisis.
Many of these trade fairs provide significant amount of sales for MSMEs. The CIIE, the first dedicated import expo in the world and one of China’s largest events, saw the Philippines double its sales last year to $300 million, from $124 million in 2018.
Estimates by UFI, the Global Association of the Exhibition Industry, showed the cancellation of trade shows worldwide in the first half will result in economic losses of €134.2 billion, roughly $144.9 billion. This figure is seen to go up with the rescheduling of the 2020 Olympics in Tokyo, Japan, and the anticipated postponement of the Expo 2020 Dubai.
In response, the DTI is eyeing to put up a digital platform for the country’s export products to make up for lost promotional opportunities in the canceled events.
For home and lifestyle items, the DTI is looking to create an online marketplace where frequent visitors of the Manila FAME can go to to find design products. An information-driven platform, on the other hand, is on the DTI’s pipeline to serve as marketing tool and promotional database for the country’s food and beverage exporters.
Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., favors pushing through with the local trade fairs set in the second half, to provide the export sector opportunities to make up for losses incurred in the first half.
However, with the extension of the lockdown in many areas of the Philippines, including Metro Manila, he said exporters will continue to produce at lower volumes due to the unavailability of workers and the disruption in flow of goods. To this, Ortiz-Luis posed a question: “If the trade shows push through, what will be there to exhibit?”