Following CMW breaking the news last week that Britain’s national tourism board had decimated its Business Event unit, reducing a nine-member team to just two people – fewer than the Faroe Islands have for marketing their event sector – we have seen a steady stream of news of eye-watering deals involving UK event companies being snapped up by private equity.
Oh, and rather ironic that the VisitBritain redundancies, including the head of Business Events, came as the Board’s bigwigs were telling the US market in Los Angeles, as the news broke, how ‘great’ they were and able to support organisers bringing their major events to Britain.
Of course, it has to be noted that VisitBritain had its budget slashed by 10% thanks to a government that talks about promoting growth but actually has thrown a massive spanner in one of the best performing engines of growth in the country – the UK events sector. Business tourists, according to various estimates, spend upwards of over three times a much as leisure tourists in a destination on average, yet the VisitBritain cuts were heavily concentrated on its business unit rather than leisure. It is also not the first time we have seen cuts in this area. We must raise our voices to stop the sector becoming a soft touch.
Please make it make sense. The VB press release certainly did not, sanitising the news as some kind of achievement in ‘slimming down’ the operation, ozempic style.
And what of the new structure – providing you can have a ‘structure’ for two people? VisitBritain said in its statement that ‘Business Events’ has now been moved to be an England activity led by VisitEngland director Andrew Stokes. “This follows confirmation that there is no ringfenced funding for Business Events or for the Business Events Growth Programme,” said Patricia Yates, CEO VisitBritain/VisitEngland.
“England will work alongside Visit Wales and VisitScotland to promote English destinations,” Yates added. “The priority for the slimmed down team is to enable English destinations to participate in major international business event shows, access global buyers and attract international business events, and to continue the Ambassador Programme to showcase and support regions and their respective key sectors.
“We recognise that these changes have also meant saying farewell to a number of valued colleagues across our organisation and we thank them for their contributions.
“Looking ahead, as we embed our new structures and ways of working, I am confident our reshaping will position VisitBritain/VisitEngland to work even more effectively.”
Taxing times
And don’t get me started on the increasing tax burden across the board which has left many hospitality operators struggling across the country. If the golden British events goose is not fully cooked, it is certainly stewing.
Such body blows come as the UK event sector was rallying well after Covid and getting to grips with post-Brexit realities and obligations for conducting international business with the EU.
Of course, the big deals I spoke about at the start, including UK-based event organisers CloserStill (now owned by Searchlight Capital and Providence Equity Partners following a massive $1.77bn deal) and Hyve, bought by H&F private equity for a reported $1.8bn, are really international, they nevertheless stand out as great examples of British entrepreneurial event spirit and success. Both companies have created increased value and jobs in the UK despite government policy.
Can you imagine the impact on the national economy if the UK government actually got behind the events industry? The current, not small, estimated value of £68.7bn could easily top £100bn in short order, such is the talent and potential. The UK’s latest ICCA Country ranking of 5th place (behind the US, Italy, Germany and Spain) is unchanged from the previous year, so there is no time to rest on any laurels.
So, I congratulate Britain’s industry associations the MIA, beam, who have reacted strongly in condemning the budget cuts at VisitBritain. CMW has also seen a letter sent by The Business of Events (TBOE) and the Event Industry Alliance (EIA) sent to the Culture, Media and Sport Committee (so far officially unpublished pending committee members reading it first) which sets out the folly of the budget cuts and calling for a “joined up approach from government” to ensure Britain can capitalise on opportunities to attract major business events to the UK. The letter stressed the UK needed “to remain competitive in the face of growing international competition” and to safeguard the “very modest funding already provided by DCMS, including its highly successful Business Events Growth Programme to support and protect the UK’s world leading business event economy”. The 29 signatories, which included the All Party Parliamentary Group for Events, the Association of Event Venues and the Association of Event Organisers, Excel London, UKEvents and The Power of Events, noted they had lost confidence in VisitBritain’s ability, or aspiration, to fully support and represent the UK business events sector, and said we now need change.
On 3 June, Global Exhibitions Day, it is a fitting demand that Great Britain’s ‘great’ event industry should be backed up properly by its government agencies, which clearly need the proper funding to do so. Such funding, I am sure, can help seed great successes for our economy and people, while also reaping a bigger harvest for the UK Treasury.
