Wars, FTA and Tarriff impact on exhibition industry

Wars, Free Trade Agreements (FTAs), and tariffs have significant and varied impacts on the exhibition industry. Wars and tariffs generally create negative impacts, while FTAs facilitate growth and market expansion.

Wars and geopolitical conflicts introduce uncertainty and risk, severely impacting the exhibition industry:

Despite the tense economic situation, most organizers are reporting positive business performance. According to projections by the Association of the German Trade Fair Industry (AUMA), the number of exhibiting companies rose by one percent to over 116,000 in the first half of the year, the number of visitors increased by more than three percent to almost 7.2 million and the amount of rented stand space rose by just under two percent to more than 4.2 million square metres.

Wars and geopolitical conflicts introduce uncertainty and risk, severely impacting the exhibition industry:

Travel barriers, stricter visa policies, and general safety concerns discourage international exhibitors and attendees from participating in events in or near conflict zones.

Conflicts can lead to inflation, currency fluctuations, and economic uncertainty, causing businesses to tighten marketing budgets, reduce non-essential expenditures like sponsorships, and limit participation in large-scale exhibitions.

Damage to infrastructure and redirection of resources lead to delays and increased costs for transporting essential exhibition materials and components (e.g., booth construction materials, AV equipment).

Organizers and exhibitors may shift their focus to more stable or domestic markets, potentially leading to a decline in global exhibitions and a rise in regional or virtual events.

Events are often cancelled or postponed in light of security concerns and an uncertain future, leading to significant financial losses for the industry.

FTAs are a significant positive force for the exhibition industry, promoting growth and easing logistical challenges:

FTAs open new markets by reducing or eliminating trade barriers like tariffs and import quotas, making it easier for businesses to expand their reach globally.

By removing import duties and streamlining customs procedures (e.g., within the EU's Single Market and Schengen Area), FTAs significantly lower the cost and complexity of transporting exhibition materials and sample products across borders.

Easier travel (e.g., visa-free access under the Schengen Agreement) encourages more international exhibitors and attendees, increasing the diversity and richness of events.

Predictable Business Environment: FTAs create a more stable and predictable trading environment, which encourages foreign direct investment (FDI) and makes companies more confident in planning long-term exhibition strategies.

Reduced barriers foster greater competition, which drives innovation in booth design, technology integration, and sustainable practices within the exhibition sector.

Tariffs have a largely negative impact, similar to the effects of a trade war: Tariffs directly increase the cost of imported raw materials, technology, and display components used in exhibition booths. These higher operational costs are often passed on to exhibitors and attendees. The added financial burden makes it less viable for businesses, especially smaller ones, to participate in international exhibitions, leading to a potential decline in exhibitor numbers and event size.

Businesses may need to rethink their sourcing strategies, find alternative suppliers, or face delays due to import restrictions and trade tensions.

Tariffs may encourage a shift toward using more domestic suppliers and materials, which could strengthen local industries but diminish the international character of global trade shows.

The unpredictable nature of tariff disputes dampens overall economic confidence, leading to tighter marketing budgets and reduced spending on trade shows and events.

Europe was the largest market in terms of visitors, welcoming 102 million in 2024 (32% of the total worldwide). North America ranked second, with 89 million visitors, followed by the Asia-Pacific with 84 million visitors. Since 2019, the total space rented by exhibitors has performed di erently across regions, with average annual trends varying from -1.4% in Europe to -0.9% in AsiaPacific, -0.4% in Central and South America, -0.3% in North America, stable in Africa, and +0.9 % in the Middle East. Direct spending related to exhibitions (including organiser operations, exhibitor investments, and visitor expenditure) totalled €150 ($162) billion. When accounting for indirect and induced e ects across supply chains and local economies, the sector’s total contribution reached €368 ($398) billion in total output: €175 ($189) billion in North America, €108 ($117) billion in Europe and €73 ($79) billion in Asia-Pacific. Overall, exhibitions globally generated a total output of €78,800 ($85,200) per exhibiting company and €8,500 ($9,200) per square meter of venue gross indoor exhibition space. The ‘Global Economic Impact of Exhibitions’ report shows the far-reaching impact of the exhibition sector, which generates €215 ($233) billion of total GDP supported by exhibitions globally would rank the sector as the 57th largest economy globally, larger than the economies of countries such as Hungary, Qatar, Nigeria, and Ecuador.