Unconventional times test Israel’s international convention industry
Some 182 million viewers tuned in to watch the Eurovision Song Contest in May 2019, the world’s largest live music event broadcast from Expo Tel Aviv.
The spectacular production, hosted by Israel’s largest conferencing and exhibition venue, was an unrivaled showcase of Israeli flair, hospitality and production capabilities.
One year later, Expo Tel Aviv’s 20,000 square-meters of exhibition space are silent. May and June are usually among the most popular months for international conferences, but not this year. A short journey away, the same silence fills the halls of the International Convention Center in Jerusalem (ICC Jerusalem), host to many major international conventions in the capital.
“Nobody was prepared for the coronavirus, and it does not appear in any of the contracts,” said Iris Mazel, the chief marketing officer of Expo Tel Aviv.
“We suffered greatly because we lost a lot of business. We did not keep any money for conferences canceled in March, April and May. We are looking forward to the last quarter, which will hopefully be a good quarter.”
While the Health Ministry is expected to publish regulations regarding the reopening of convention centers later this week, including rules regarding social distancing and attendee limits, uncertainty still remains rife in the industry.
Conference organizers are reluctant to commit to new conference dates due to fears regarding a possible second wave of coronavirus, and persistent quarantine measures render international events unfeasible.
Although many conferences have sought to replace international confabs with Zoom meetings, Mazel is certain that in-person conferencing is here to stay in the long-term. Until then, virtual conferencing solutions and live streaming will likely be introduced until confidence in international travel is restored.
“People like networking, where they can hear and speak about new ideas. It is much more personal than Zoom or a virtual conference, which has been a good solution during this time,” she said.
“In 2021 and 2022, there will be a race to get back all the International Congress and Convention Association (ICCA) meetings. Conference clients pay more than regular tourists, so there is an economic interest too.”
Taking advantage of the quiet period, numerous bodies including the Law Association and Ministry of Health have held examinations at Expo Tel Aviv, where the spacious facilities enable large distances between examinees’ tables. The slowdown has also enabled important repair work to be carried out on the buildings.
The glass facade of ICC Jerusalem, previously known as Binyanei Hauma, is a well-known sight for all those arriving in the capital city. In recent months, all local and international conventions and conferences have all been cancelled.
As management there eagerly awaits the publication of Health Ministry regulations, they hope that some local events could be held as soon as mid-July. In the meantime, the convention center is putting the final touches on a virtual conference platform that will replicate the entire facility and its 27 halls.
“International conventions have a huge impact on the economy of the city and for tourism all around Israel, which is why we need assistance from the government and the Tourism Ministry,” said ICC Jerusalem CEO Mira Altman.
“When the crisis started, we placed all our employees on unpaid leave. It has been two-and-a-half months now. With any kind of regulation, we can open, bring back all our employees and those working in this very large industry.”
Among the events cancelled at ICC Jerusalem since the outbreak of the coronavirus were nine major international conferences and events, expected to attract a total of almost 30,000 participants.
On Sunday, Altman unveiled ICC Jerusalem’s plan to reopen conferencing and convention venues, developed in cooperation with the finance and economy ministries. The plan is now awaiting Health Ministry approval.
Under the proposed plan, temperatures and masks will be checked upon entry, social distancing will be enforced both outside and inside conference venues, and disinfection stands will be placed throughout the 12,000 square-meter building.
“The coronavirus hit us following two of our best years ever,” said Altman. “With a government budget and strategic plan, we shall see the return of international conferences. It is necessary for all of us.”
According to an estimate focusing on the exhibition industry alone, UFI – the Global Association of the Exhibition Industry forecasts that over $88 billion of total economic output will be lost by the end of the second quarter of 2020 as a result of the coronavirus outbreak. Orders that exhibiting companies will not secure will total almost $145b. during the same period.
Israel’s conference and exhibition sector was the “first to be harmed” and will be the “last to return to activity,” said Gil Stier, managing director of Stier Group, the Tel Aviv-based organizers of international exhibition and conferences.
“Even today, after developing plans for the return of each sector, no plan of action has yet been granted in this field in Israel,” Stier said. “Exhibitions are a growth engine and an engine for increasing the activity of the entire economy, and one of the important sectors in stimulating economic activity.”
While industry partners are working hard to secure the necessary Health Ministry permissions to renew operations, Stier warns that – unlike other sectors – it will take time to generate business activity.
“Activity will only commence around October or November if permission is granted today,” he said.