Events sector recovery expected in 2023
Actors in the events sector are braced for a difficult 2021, with a return to pre-crisis levels not expected until 2023.
These were the conclusions of the newly created Luxembourg Event Association (LEA) in its first annual report, published on Tuesday.
Event industry companies and their employees would continue to suffer “at least throughout the first quarter of 2021” with hopes for a gradual recovery.
“It is already clear that companies’ 2021 revenues will still be significantly lower than in 2019, before the start of the pandemic. At present, reasonable estimates do not allow for a return to the pre-crisis situation before 2023,” president Charles Schroeder wrote.
The association was founded in May 2020 to represent an industry which supports some 120 companies and 3,000 jobs in Luxembourg. Government measures including partial unemployment and the recovery and solidarity fund were critical for the industry as were assistance for uncovered costs and cost avoidance assistance.
Looking ahead, Schroeder wrote: “It is certain that companies will have an imperative need for support. Especially since the post-crisis period will correspond to the moment when the repayments of the “sluggish credits”–concluded in times of crisis to ensure the liquidity of companies–will begin. It is obvious that the ‘Repayable Advances’ and the ‘State-guaranteed Loan’ will weigh heavily on companies’ cash flow and their self-financing capacities.”
The LEA will focus on seeking development and innovation opportunities for hard-hit companies in the sector.
“This is a proposal that the Luxembourg Government has every interest in actively supporting in order to preserve not only a formidable showcase of Luxembourg’s dynamism, but also a key sector of the national economy and thousands of jobs,” the president wrote.