Trade Fair exhibitors report poor performance

Sixty-four per cent of exhibitors at the 49th edition of the International Trade Fair of Malta, in Naxxar, felt their business fared worse than last year, according to a survey by the Chamber of Small and Medium Enterprises - GRTU.

The majority of entrepreneurs (73 per cent) felt the reason behind the fair's slowdown was the public's disposable income, 40 per cent blamed the economy's general situation and 18 per cent put the onus on the World Cup.

Marcel Mizzi, from the GRTU's research unit, told a press conference yesterday that about a third of the 315 exhibitors took part in the survey, which was conducted over the phone or online.

Of the respondents, 30 per cent ran shops selling household goods, 18 per cent sold furniture and 33 per cent retailed a selection of goods including garage doors, perfumes, pest control, lighting and foodstuffs, among others.

A big bulk (27 per cent) of those who said that business was worse than last year saw a drop of 30 to 40 per cent in their sales. Eight per cent who said they fared better than usual saw an increase in business of between 10 and 20 per cent.

Mr Mizzi said it was important to remember that last year businessmen had also experienced a drop, so this was a drop upon a drop.

He added that this year many worried businessmen had called the GRTU to see when the results would be released in order to establish whether bad business was only affecting their sector.

However, the survey showed that the generally poor overall performance was experienced by businesses from all sectors.

The few exhibitors that registered improved sales attributed such improvement to their own efforts in the form of new schemes and further discounts.

Many exhibitors reported that due to discount schemes being offered all year round the International Fair of Malta had lost its importance. The public was now perceiving the fair as "an evening out" rather than an excellent opportunity to see a variety of products and look for advantageous prices.

In fact, when asked which sectors they thought did well this year, many pointed to the catering services at the fair.

GRTU director general Vince Farrugia said that the decrease in turnover and profitability shown in other surveys it took, tallied with the results of this survey. "The surveys show a sense of pessimism that unless something is done with the economy things will not improve," he said.

"There are, of course, specialised fairs and many are using the international fair to shop around before making a purchase. However, there is a consolidated view that the money available for consumption was lacking when compared to the goods on offer," he added.

Many of the exhibitors said that the increasing cost of stands at the fair had a negative impact on their business. They felt that the haphazard layout of the fair created areas that were not as exposed as others, resulting in poor performance for those who did not have the best locations.

It was also suggested that the opening and closing times should be moved forward. It was evident that the first 90 minutes were not the preferred times for the public during the hot July weather. Some also suggested that entrance to the fair should be free and that the cost of stands should cover the entrance fee.

The suggestions to improve the fair were many and varied but what is clear is that the majority of exhibitors blamed this year's poor performance on the state of the economy in general and the lack of disposable income.

Many felt that no matter what the Trade Fair Corporation did, there was no way the outcome would improve unless the economy perked up and consumers were prepared to spend more.

Suggestions to improve the fair

¤ Opening times to be from 7.30 to 11 p.m.

¤ Free entrance to the fair.

¤ Reduction on the number of specialised fairs throughout the year.

¤ Reduction in the price of stands.

¤ Methods to ensure that all areas get the same exposure.

¤ Trade Fair is split up into logical sections as is done in other countries.

¤ Better location for the event with better parking facilities and amenities.

¤ Methods should be found to attract the automotive trade to once again participate in the Trade Fair. Their presence added an attarctive feature to the event which is now missing.

¤ Better marketing strategies such as:

¤ a. A working Trade Fair website with free advertising space for exhibitors.

¤ b. A professional catalogue that should be distributed to all visitors (this year there were exhibitors in the catalogue that did not even participate).

¤ c. Televsion coverage for the event itself with airtime for innovative exhibits as is done abroad.

¤ d. More publicity for the shuttle service.

¤ e. Better signage at the grounds:

¤ The public having difficulty locating stands.

¤ Many do not even know there is a South Gate, for instance.

¤ Better organisation at the fair including :

¤ Better cleaning of the grounds during the event.

¤ Improvement in catering services in terms of quality and prices.

¤ Introduction of a week ticket as many tend to visit more than once.