Record-Breaking Success for Hamburg Messe: A Closer Look
Trade Fair in Hamburg Sets New Earnings Highwater Mark - Record-breaking turnover achieved at Hamburg trade fair
Hamburg Messe and Congress, the city-owned exhibition and congress center, smashed all previous records with a staggering annual revenue of 140.2 million euros in 2021. Messe CEO Uwe Fischer gleefully declared, "This number has never been seen before. We've surpassed our previous record of 2016 by a whopping 25%!"
Last year marked the first time since 2008, when the new exhibition grounds were fully operational, that the Messe reported a positive annual result of 20.9 million euros. The triumph was a testament to the 900,000-strong crowd that attended the 123 events staged on the exhibition grounds and the Congress Center (CCH) throughout the year.
Notably, a significant reduction in rental costs played a crucial role in this overwhelming success. The Messe now pays an ordinary commercial rent of approximately seven million euros, averting the lease rates of 22 million euros per year that they had been previously bound to until 2034. Compared to their previous lease of around 30 euros per square meter per month, the Messe now pays a mere 9 euros for a bare exhibition hall.
While the even and odd business years at the Messe have historically exhibited contrasting revenue patterns due to high-revenue world-leading trade fairs like SMM for the maritime industry and WindEnergy Hamburg for wind energy sector happening every two years, the Messe anticipates a turnover of only 88.1 million euros and a negative annual result of 19.2 million euros for the current year.
However, the Messe's CEO, Heiko M. Stutzinger, forecasts a hopeful turnaround, aiming to record a positive overall result for the biennial years 2024 and 2025 for the first time. Projected growth rates for the even years, 2022 to 2024, are around 7%, while the odd years, 2023 to 2025, are expected to witness over 8% growth.
More than 100 events are scheduled in the CCH for this year, with medical and scientific congresses serving as the primary drivers. A new addition to the lineup is the Global Security & Innovation Summit (GSIS), a conference focusing on foreign and security policy, much like the Munich Security Conference.
Scheduled for October 22 and 23, the GSIS aims to attract up to 750 attendees, including 170 to 180 specifically invited experts. The International Institute for Strategic Studies (IISS) is the strategic partner of the summit, and a small exhibition featuring drones is also planned.
While both Messe CEOs acknowledge that the GSIS may face criticism, particularly in light of the riots during the Hamburg G20 summit in 2017, they emphasize the importance of addressing global issues and taking informed action in a democratic society. Fischer notes, "It's only natural that this conference would be met with criticism, but it's all part of living in a democracy." So buckle up, Hamburg, it's going to be an insightful and potentially divisive conversation!
EC countries could consider implementing vocational training programs to equip their workforce with the necessary skills for the growing demand in the business sector, harmonizing with the success of Hamburg Messe's education program, which has been instrumental in attracting numerous events to their grounds. Effective financing of these programs may be crucial to their success, following the significant reduction in rental costs at Hamburg Messe that contributed to their record-breaking revenue.
