What is happening to people who work in events
Events, entertainment industry says Covid-19 hit 60 million livelihoods
TheEvents and Entertainment Management Association has sent out an SOS signal to the government seeking urgent intervention as the industry that employs 60 million people has come to a standstill following the national lockdown.
The association claims that of the 60 million staff, 10 million have been directly impacted, and their livelihood is at risk as all major national events are postponed or cancelled due to the Covid-19 pandemic.
Losses for the first two months are already over Rs 3,000 crore, the association said.
“Since the outbreak of the Covid-19 pandemic, the impact to their business has been unprecedented with multiple global and national events having been postponed or simply cancelled."
“The adverse impact of this crisis on the events and experiential industry is expected to last for months while the impact in the first two months alone is pegged at over Rs 3,000-5,000 crore, at a minimum, as projected in a survey of 100 units in the sector,” the association said.
The pandemic has led to cancellations of conferences, both public and private, national/international meetings, incentives, conferencing, exhibitions (MICE) events, choking the lifeline of the industry.
Besides the 10 million it employs directly, the events and entertainment industry indirectly provides jobs to another 50 million through allied sectors like food and beverages, hospitality, tourism, advertising and marketing industry.
1) Around 52.91% of companies resulted in 90% of their business being cancelled between March-July 2020
2) 63.1% companies i.e. around 107 companies suffered from a revenue loss of up to 1CR
3) Around 7 companies envisage a 50%-80% retrenchment of their current workforce and 35 between 25%-50%
4) The ideal working capital/loan expected to keep afloat for the next 6 months is around 2-5 CR for 39 companies and 1-2 CR for 118 companies
5) Around 97 companies will need to raise capital or debt from institutions or shareholders, VC funding etc.
“Brands are resetting their plans, expectations, markets, delivery systems, marketing focus and logistics. This will force the experiential industry to lay oﬀ employees, reduce salaries, delay mandatory payouts and worse still shut companies. And if the situation prolongs, it will have a huge impact on the event economy, global and local enterprises, employment, and business environment triggering a new business and economic order. It has also put at risk the livelihood of over 10 million professionals who depend on this segment,” the report further stated.