The Czech trade fair and exhibition market, in decline for a number of years, has stabilized over the past 24 months. But while the number of events held annually is increasing, the number of exhibitors and visitors to the events is falling. Tomás Chmel, director of the business group with trade fair organizer Terinvest, talks with The Prague Post about the challenges facing exhibitions here. He also reveals steps that must be taken to attract global trade shows.

1. The trade fair market has significantly declined recently, and the number of fairs and exhibitions has dropped. What caused the decline? What was behind the market stabilization two years ago?

The decline was not that big, but it's true that some sectors fell. Among the reasons could be that would-be exhibitors were overwhelmed by demand, and the role the Internet played. Many companies took up online advertising instead. Only recently did they realize that online advertising alone is not that effective. Trade fairs are still the second most successful method of selling products. Last but not least, some companies hesitated to show their products in trade fairs because there were so many exhibitors displaying products unrelated to the sector represented.

2. The trade fair market has stabilized in terms of the number of exhibitions, but there the number of exhibitors and visitors to shows continues to decline. Why is this?

One of the most important reasons may be [insufficient] marketing. Many trade fairs do not reflect the needs of the market and so lose valuable exhibitors and visitors. Trade shows are a closed circle — good-quality exhibitors attract good attendance, which is desired. It's up to the trade fair management to make sure the show has both [good-quality exhibitors and is well attended]. Another major factor is the number of competing events that 'dilute' the number of exhibitors and visitors at any given trade fair.

3. The first major trade fair organized by your company was Sports Prague in 2001. What other sectors, apart from sports, have become popular for these fairs?

Terinvest is currently organizing three trade fairs that are the biggest in their sectors here. On top of Amper and Sports Prague, in 2004 we added Tendence, a fair focusing on furniture, decorations and interior equipment. Up to 519 exhibitors took part. The home equipment sector is booming with the rise of the construction sector and the mortgage market.

4. Which are the most visited trade fairs in this country?

Attendance is naturally affected by the [sales] potential of particular products displayed at the fair. As a result, a trade fair that features the construction sector will certainly have a different attendance than a trade fair representing companies that supply healthy nutrition products.

However, this is not always the case. I believe that any event that is clearly defined can attract big attention.

5. Although the Czech Republic is a country with developed industry and a strategic location in Central Europe, no major worldwide trade fair has been held here. What needs to change?

It needs to be said that in many sectors, companies tend to prefer participating in trade fairs held in markets where they have a presence, rather than a global exhibition. The Czech Republic is a small market. This is an obstacle organizers of major global trade fairs face. On the other hand, the [strategic] location of this country, and of Prague in particular, gives us some opportunities. It is also essential that the government cooperate in bringing such a fair here. We're quite flexible in the engineering and automotive industries; those could be the sectors we target.

6. Do you think the government offers adequate support to the trade fair industry? While the Cabinet openly supports tourism in this country, it has not mentioned exhibitions.

The government [mainly supports] export activities of our firms and their participation in trade fairs abroad. It's quite important since, for example, Poland is quite active in this field. We can see here some state agencies that attempt to bring foreign traders and experts to Czech trade fairs. This is good.

7. What is actually the competition among trade fair organizers here?

The competition among trade fair organizers is tough and fast-developing. Trade fairs need to respond to needs as they occur on the market. Some trade fairs pay the price for not paying attention to market signals.

8. Are the two exhibition halls, Letnany and Holesovice, adequate for supporting the industry?

In my opinion, two trade fair centers in Prague seem to be sufficient. In the Letnany center, where we organize our events, two new exhibition halls have been built and another one is being planned. In the short term, the Prague metro should be extended to the Letnany area and it'll lift Letnany into the ranks of good-quality European trade fair centers. Still, [Letnany's] market capacity is limited. I cannot imagine a third center in Prague — the competition would be even tougher. On the other hand, if Prague had a big-capacity exhibition center that could accommodate several thousand exhibitors, it could help bring some [major] shows here.

9. Is the stagnating trade fair market a reason for organizers such as Terinvest to add other business activities to their portfolios?

I do not think the market is stagnating — rather, it is shaping up. Some events are weakening; some are strengthening. Trade fair organizers sometimes must cancel a show that does not have any development potential. On the other hand, new shows can be launched. An example [of a newly launched trade show] is the one focusing on wooden constructions. That show will take place in March 2006 and it has already attracted a lot of attention.

10. Terinvest launched nine international trade fairs here this year, three of which will be held this fall. What is the impulse for launching new trade fairs? Where's the border between success and failure?