Philippine exporters lost more than P6 billion worth of sales from the cancellation of trade fairs abroad, and they are bound to miss out on all of them next year with minimal government subsidy in hand.
The Center for International Trade Expositions and Missions (Citem) under the Department of Trade and Industry reported at least 12 expos overseas were called off due to the ban on mass gathering amid the Covid-19 pandemic. Likewise, the government deferred three signature trade fairs in the Philippines as a precaution against the contagion.
With these cancellations, Citem told the BusinessMirror that exporters lost a total of $137.21 million, or about P6.63 billion, in potential sales.
Worse, Citem disclosed it will get a decreased funding of P141.88 million for 2021 allocated by the Department of Budget and Management (DBM). This makes it difficult, if not impossible, for the agency to subsidize sending delegation of exporters to trade fairs next year.
“With the substantially reduced DBM-recommended budget of P141.885 million for fiscal year 2021, Citem will not be able to organize overseas trade fair participations in 2021,” the agency said in an e-mail.
What the Citem will do with its operations funding of P94.01 million is pour it in in its regular and new local expos. These events are: Manila FAME, IFEX Philippines NXTFOOD Asia, Create Philippines and the new Sustainability Solutions Expo (SSX).
“Citem will also continue to implement its digital marketing platforms initiatives that were started in 2020, specifically for the digital trade community platforms for Manila FAME, Food Philippines, IFEX Philippines NXTFOOD Asia, SSX and Create Philippines,” the agency said.
“With the very limited government subsidy for 2021, these digital projects will be implemented with the leanest version of content development and distribution efforts,” it added.
According to Citem, the canceled trade fairs abroad are: Foodex Japan and South by South West in March; Food Hotel Asia in April; Fuorisalone, Taipei International Food Show and Summer Fancy Food Show in June; SIAL Middle East, Interior Lifestyle China, Index Dubai and Maison&Objet in September; SIAL Paris in October; and Nordic Organic Food Fair in November.
For next year, the Citem will focus on implementing hybrid events involving physical events with digital platforms. This will give exporters and organizers the opportunity to adjust to the new normal, wherein mass gatherings are expected to be regulated to avoid the transmission of the virus.
“Citem will implement hybrid events in 2021. The agency’s signature and local events will be implemented physically together with an online version of the events,” Citem explained.