The participants considered proposals from industry experts and issues of import substitution in the hotel industry.

In his speech, Sergey Voronkov described the situation as stressful for the industry of business tourism:

“We have held a survey among RUEF members. They estimate that at the end of the first quarter of 2022, 33 % of all scheduled events for 2022 have been cancelled or are at risk of being cancelled in Russia. 50 % of organizers representing SMEs from the regions, with the exception of Moscow and St. Petersburg, predict even greater damage: cancellation of up to 60 % of events. Event organizers predict a 35 % drop in revenues in 2022 (in Moscow and St. Petersburg) and a 50 % drop (in the regions) compared to 2019. 

St. Petersburg, despite its leading position in the ranking of event potential of Russia, also expects a significant drop in performance. Departure of foreign companies from the Russian market, reduction of the product range due to the disruption in supply chains, redistribution of the marketing budget of customers will entail a fall in the net area and the number of exhibitors by 35–40 %.

Major international events for 2022-2023 have been officially cancelled at EXPOFORUM alone, including: International Energy Congress, International Congress of Mathematicians, International Arctic Forum, EuroSkills Professional Championship, International Conference for Intercultural and Interreligious Dialogue, International Conference and Exhibition for Liquefied Natural Gas LNG2023.

The damage from the cancellation of these events alone is estimated to be more than RUB 5 billion. As of the end of March 2022, EXPOFORUM area occupancy by exhibitors will decrease by 28 % compared with the planned figures.”

RUEF president outlined the key support measures for the convention and exhibition industry of today:

• infrastructure support with preferential taxes
• staff retention with subsidized salary loans
• budgetary support of events and creation of new mechanisms for their financing with involvement of federal budget and sponsors through specially created ANOs
• creation of development institutions to enter the federal programs, in particular through creation of SAD (special administrative district) for business tourism
• creating new tools to promote the city through event coverage, such as the multimedia platform for good event news
• creation of national SW for the industry

Sergey Voronkov made a list of additional measures of regional support that could help the event industry in St. Petersburg survive. Below are some of them.

• To amend the Law of St. Petersburg No. 81-11 dated 14.07.1995 On Tax Incentives by granting a 100 % exemption from property and land tax for the years 2022 and 2023.

This measure will create conditions to optimize general administrative and conditionally fixed costs. The money released as a result of the received benefit may be redirected for maintenance of infrastructure facilities for convention and exhibition activities.

• To leave the cadastral value of convention and exhibition facilities at the level of 2018. This approach will help save significantly on property tax, as confirmed by EXPOFORUM experience.
• To create a SAD (special administrative district) in the territory of EXPOFORUM with a flexible tax and currency regulation regime.

There are several prerequisites for this measure. On the one hand, EXPOFORUM Convention and Exhibition Center is a backbone enterprise. On the other hand, EXPOFORUM companies include: hotels system Hilton, Hampton, customs and logistics terminal, temporary storage warehouses, centers of international competence Russian-Chinese and Russian-Latin American Business Centers, office of the Honorary Consulate of the Republic of Ecuador. The territory accommodates the Executive Directorate of the Russian Union of Exhibitions and Fairs.

Opening of a SAD on the basis of EXPOFORUM will contribute to creation of favorable financial and administrative conditions for business development, attracting investment to the city, and development of the venue’s infrastructure, enabling construction of the second stage of EXPOFORUM Convention and Exhibition Center with TRAVEL HUB tourist entertainment and park recreational public territory.

• To create a multi-format content platform “St. Petersburg: a good news event”

In the emerging conditions of economic and political blockade of Russia, good news about achievements in the field of industry, science, culture and education acquire particular importance in shaping a positive image of the country. The multimedia content platform can become the main channel for spreading such news to a broader audience, stimulating creation of a civil society with new values, approaches, and benchmarks.

• Jointly with the city, to create ANO Event as a one-stop-shop for creation of a systematic approach to organizing and attracting significant convention and exhibition events to the city on regional, federal and international level.

We already have a success story of establishment of Expoforum International non-profit organization together with the Committee on Education to organize and conduct EuroSkills Professional Championship. 

Creation of such a structure effectively addresses the following tasks:

• structures the work and brings together the capabilities of the city and commercial organizations to attract and conduct events;
• reduces budget losses by avoiding duplication of procured activities, thereby achieving maximum efficiency in spending the budget of St. Petersburg;
• improves the quality of events due to the professional expertise of industry experts. Currently there is no unified system for procurement scheduling (due to the large number of participants and other reasons);
• plans the load on the budget of St. Petersburg through even distribution of events throughout the calendar year;
• reduces personnel costs. Organization of NPO-based events will free up the time of employees of Executive Authority Customers and subordinate institutions for other tasks.

Sergey Voronkov also urged to support the national software platform project submitted for competitive selection of projects to implement Russian solutions in information technology (Russian Government Decree No. 550 of May 3, 2019).

“Receiving a grant to create the first ecosystem in Russia from a single industry-wide digital platform will help manage the convention and exhibition projects, companies and venues in an integrated manner, implementing the full range of necessary services,” he said.

RUEF president passed the proposals for additional measures of regional and federal support worked out by the industry to the members of the Expert Council.