Pollstar, the global concert trade publication, puts the total lost revenue for the live events industry in 2020 at more than a staggering $30 billion. This figure includes the unreported events, ancillary revenues, sponsorships, ticketing, concessions, merchandise, transportation, restaurants, hotels, and other economic activity tied to the live events.
As a global voice of live entertainment, they reported the live events industry should have hit a record-setting $12.2bn this year, but instead it incurred $9.7 billion in unexpected losses.
Eighteen-months later, with the Covid cloud progressively lifting and with the business market re-stabilising, Dubai’s events and conferences are prepared for a busy and productive second half of the year as business gradually returns to usual, with some restrictions, of course.
In the next few months, the emirate is gearing up to host several major trade shows, including GITEX Technology Week, and Dubai Airshow, the first dedicated global aviation event to take place anywhere in the world since 2019.
Of course, the biggest show is Expo 2020 Dubai, which is now just days away and is generating excitement far beyond the shores of the UAE. The prospects for a successful and well-attended expo are incredibly high, as air links with key visitor markets reopen and an increasing number of people take to the skies.
For the emirate of Dubai, a thriving events and conferences industry has long been an essential driver of overall economic growth. Dubai World Trade Centre (DWTC), the host of many of the emirate’s largest trade shows, estimates that events held at the venue generated a total of AED13.1bn in economic value in 2018.
For every dirham spent by attendees at a DWTC-hosted event, more than 4.4 times as much is spent in ancillary sectors in the broader Dubai economy.
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Dubai World Trade Centre (DWTC)
While pre-pandemic success will be challenging to revisit, government support continues to play a pivotal role, paving the road to recovery.
The list of possible risks that event planners face is long and includes far more than cancellation or delay. A high-level speaker, for example, may demand a deposit that is non-refundable in case of their withdrawal.
An event can take place successfully and be operationally profitable. Still, something may happen during the event for which the organiser can be deemed liable, such as damage to the venue or any injury to an attendee. Having to pay these expenses from the event’s proceeds will erode profitability and may even result in an overall loss.
Therefore, organisers must look at their total risk profile when procuring insurance cover for an event. Event cancellation insurance will protect against the loss of costs, expenses, or revenues that result from the cancellation, abandonment, postponement, interruption, or relocation of an event. Event liability insurance can help cover expenses if an organiser is deemed responsible for property damage or an injury caused during an event.
Understanding one’s liabilities is essential, and clients would benefit from brokers’ expertise to help them interpret contracts with suppliers, understand their risks, and provide the level of coverage that meets their exposure. An experienced broker will also be privy to local trends and insights, best positioning them to help clients understand insurers’ rules related to periods of national mourning and cancellations or delays attributed to the pandemic.
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Dubai’s events and conferences are prepared for a busy and productive second half of the year.
No matter how small or large an event, every organiser faces several potential risks. They could range from unforeseen cancellation or delay to damage to a venue or injury to an attendee. Whatever the scenario, the loss of non-refundable upfront payments to suppliers or compensation payments to third parties can tip an event into the black.
The implications are not only financial. Reputational damage to business in the face of outcry over the risks mentioned could cost a company dearly.
Event insurance is an essential form of protection, giving organisers peace of mind and allowing them to focus on what they do best: organising and planning. The costly learnings of 2020 are behind us, but the risks remain.
Irrespective of scale, in terms of size or investment, it is imperative that planners and organisers carefully consider the inclusion and careful assessment of cancellation and liability cover ahead of starting work on events.
Saad Dimachkie, CEO of SIACI Insurance Brokers LLC.
By Saad Dimachkie
More of this topic
The show must go on – why the need for event insurance is more pertinent than ever
No matter how small or large an event, every organiser faces several potential risks
Pollstar, the global concert trade publication, puts the total lost revenue for the live events industry in 2020 at more than a staggering $30 billion. This figure includes the unreported events, ancillary revenues, sponsorships, ticketing, concessions, merchandise, transportation, restaurants, hotels, and other economic activity tied to the live events.
As a global voice of live entertainment, they reported the live events industry should have hit a record-setting $12.2bn this year, but instead it incurred $9.7 billion in unexpected losses.
Eighteen-months later, with the Covid cloud progressively lifting and with the business market re-stabilising, Dubai’s events and conferences are prepared for a busy and productive second half of the year as business gradually returns to usual, with some restrictions, of course.
In the next few months, the emirate is gearing up to host several major trade shows, including GITEX Technology Week, and Dubai Airshow, the first dedicated global aviation event to take place anywhere in the world since 2019.
Of course, the biggest show is Expo 2020 Dubai, which is now just days away and is generating excitement far beyond the shores of the UAE. The prospects for a successful and well-attended expo are incredibly high, as air links with key visitor markets reopen and an increasing number of people take to the skies.
For the emirate of Dubai, a thriving events and conferences industry has long been an essential driver of overall economic growth. Dubai World Trade Centre (DWTC), the host of many of the emirate’s largest trade shows, estimates that events held at the venue generated a total of AED13.1bn in economic value in 2018.
For every dirham spent by attendees at a DWTC-hosted event, more than 4.4 times as much is spent in ancillary sectors in the broader Dubai economy.
While pre-pandemic success will be challenging to revisit, government support continues to play a pivotal role, paving the road to recovery.
The list of possible risks that event planners face is long and includes far more than cancellation or delay. A high-level speaker, for example, may demand a deposit that is non-refundable in case of their withdrawal.
An event can take place successfully and be operationally profitable. Still, something may happen during the event for which the organiser can be deemed liable, such as damage to the venue or any injury to an attendee. Having to pay these expenses from the event’s proceeds will erode profitability and may even result in an overall loss.
Therefore, organisers must look at their total risk profile when procuring insurance cover for an event. Event cancellation insurance will protect against the loss of costs, expenses, or revenues that result from the cancellation, abandonment, postponement, interruption, or relocation of an event. Event liability insurance can help cover expenses if an organiser is deemed responsible for property damage or an injury caused during an event.
Understanding one’s liabilities is essential, and clients would benefit from brokers’ expertise to help them interpret contracts with suppliers, understand their risks, and provide the level of coverage that meets their exposure. An experienced broker will also be privy to local trends and insights, best positioning them to help clients understand insurers’ rules related to periods of national mourning and cancellations or delays attributed to the pandemic.
No matter how small or large an event, every organiser faces several potential risks. They could range from unforeseen cancellation or delay to damage to a venue or injury to an attendee. Whatever the scenario, the loss of non-refundable upfront payments to suppliers or compensation payments to third parties can tip an event into the black.
The implications are not only financial. Reputational damage to business in the face of outcry over the risks mentioned could cost a company dearly.
Event insurance is an essential form of protection, giving organisers peace of mind and allowing them to focus on what they do best: organising and planning. The costly learnings of 2020 are behind us, but the risks remain.
Irrespective of scale, in terms of size or investment, it is imperative that planners and organisers carefully consider the inclusion and careful assessment of cancellation and liability cover ahead of starting work on events.
Saad Dimachkie, CEO of SIACI Insurance Brokers LLC.
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