10 Jun 2020 | 10.55 am
Half Of Events Firms Could Go Under
Event Industry Ireland calls for tax incentives
10 Jun 2020 | 10.55 am
A new representative body for the events industry has demanded urgent action from the government to support the sector after predicting that half its members are likely to go out of business due to social distancing regulations.
Event Industry Ireland says the sector fears for its survival in the wake of a 90% decline in revenues for more than half of event companies since the March restrictions were introduced. According to EII, a fifth of event companies in Ireland will stay in operation only for another one to three months if the current restrictions continue.
A survey of member companies showed that:
- One in two event companies have suffered a decline in turnover exceeding 90% since restrictions were introduced in March
- A fifth of businesses in the sector can stay in business only for another 1-3 months on current revenue
- One in three expect they can last only for another 4-6 months.
According to the new body, the sector provides employment for c,35,000 people in Ireland.
EII committee member Ronan Traynor (pictured) said: “The pandemic has thrown what was a thriving sector into doubt, with many businesses now struggling with revenue and their cash flow unlikely to return to normal levels for some time. Culture, the arts, and festivals are integral to the Irish public and we call on the government to support the industry to ensure its survival throughout these very challenging times.
“As an industry, events companies will be one of the last to recover from the effects of the pandemic. We operate across conferences, music events, trade shows, sporting, cultural events and festivals which are of huge importance to the economy. We are concerned for the future of our trade and welcome support to ensure the sector can get back to work as soon as possible.”
Event Industry Ireland members have made the following requests to the government:
- Recognition of the events industry and the monetary and employment value to the Irish economy and the fact that as an Industry it will be the last to recover.
- Support from government to install effective instant testing at entry point for festivals, events, concerts, sporting events, to allow them to take place while waiting for a proven vaccine to be discovered.
- Address insurance issues related to the running of events.
It also wants financial assistance, including:
- The extension of the wage subsidy scheme for businesses in the events industry
- Reduced VAT rate for events businesses
- Introduction of tax incentives for events or stimulus packages for corporate businesses to kick start events within and coming into Ireland
- Funding access to assist businesses in the events industry that are in difficulty.