Widespread cancellation and indefinite postponement of business events across Asia-Pacific has hit boutique event companies the hardest with many resorting to clawing in outstanding payments and implementing tough cost-cutting measures to maintain cash flow and to retain as many of their staff as possible.
In Indonesia, 70 per cent of members with Indonesia Event Industry Council (IVENDO) and the Indonesia Professional Organizer Society (IPOS) are small companies, shared Harry Nugraha, secretary general of IVENDO and founder of IPOS.
According to a member study by IVENDO and IPOS with 112 respondents from 17 provinces in the country, 97 per cent have had their 2020 events postponed while another 85 per cent have had their events cancelled ever since the Indonesian government established a social distancing policy on March 2. The number of postponed or cancelled events ranged from one to 15, where estimated losses stood at between 898 billion rupiah (US$56 million) and 2.7 trillion rupiah.
In Singapore, where the government has ordered the suspension of all events with 250 or more participants in attendance at any one time, boutique event agency owners are feeling the heat.
Vincent Tan, founder and managing director of Singapore-based Citrus Events & Communications which has 12 employees, said: “Things are really bad. We’re seeing a total shutdown of our business and we’re now trying to reduce the bleeding. In the meantime, our staff is taking two weeks of no-pay leave per month, but we’re not sure how long this can be sustained.”
The situation is worse in the Philippines, as a nation-wide quarantine is now underway. Orly Ballesteros, business events organiser with Manila-based Ex-Link Events, has had “zero income” and his staff are on compulsory leave.
Despite being on survival mode, many agency owners are prioritising their staff welfare, choosing to hold off retrenchment for as long as their resources last.
IVENDO’s survey revealed a resilience among its members, with the majority (77 per cent) of respondents expressing a determination to keep the business going. To carry them through the tough times, respondents have reduced work hours (30 per cent), chosen to work from home (27 per cent), cut salary (seven per cent). Only five per cent have resorted to retrenchment.
Andrew Koh, managing director of Singapore-based Events Architects, has chosen to stagger his cost-cutting plans in phases.
He shared: “The current phase involves several non-salary related cost-cutting measures to further stretch our cash reserves. We will also be sending some of our employees on training courses to upskill themselves within the next few weeks.”
However, if the situation fails to improve, pay cuts will be introduced but “only as a last resort”, he said.
Jason Chew, business event producer at Event Horizon Management in Kuching, Malaysia, told TTGmice that he has reassured staff of no immediate pay cuts. However, he conceded that there was a limit to this measure, saying that resources would only stretch for six months and no more.
To conserve resources, Chew has sent his 20 employees to work from home, which has helped to shave utility bills down. He is also chasing down overdue payments from clients to help boost cash flow.
His compatriot, Yusno Yunos, CEO and founder of Evenesis – Y Us Malaysia, hopes to cover monthly operating costs until business begins to return to normal. Most of Evenesis – Y Us’ conferences have been postponed to 4Q2020 and 2021.
Meanwhile, Ballesteros is reaching for help in higher places, by speaking with the various government agencies such as PACEOS (Philippine Association of Convention/ Exhibition Organizers and Suppliers) and the Tourism Congress of the Philippines for providing financial aid to help cushion the impact of the pandemic.
IVENDO has done the same, appealing to the Indonesian government for tax and credit holidays for the events industry.
While agency owners cannot predict when the pandemic will come under control, they have chosen to focus on what they can control – and that is to find alternative business.
Event Horizon Management and Evenesis – Y Us, for instance, are looking to court companies keen on taking their events online.
IPOS is working towards an online forum that allows hotels in Indonesia to present and promote their properties to corporate buyers, meeting planners and event organisers in anticipation of a business rebound.
Thinking out of the box, Irene Maliwanag, owner of Philippine-based im-ACTIVE Tours, Events, MICE Management & services, has turned to non-event jobs for income. She has taken up the role of an English as Second Language (ESL) teacher, with classes conducted online. – Additional reporting from Pamela Chow, S Puvaneswary, Mimi Hudoyo, and Rosa Ocampo
