Excel braced for a 'challenging' 2009

By Rob Virtue on January 23, 2009 1:33 PM |

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The Excel Centre may be feeling the effects of the economic downturn but managing director David Pegler has a positive outlook for the future.

This week it was revealed visitor sales were down at the Boat Show, while recruitment company Reed cancelled an exhibition in March. With no end in sight to the recession, more casualties could occur.

This is all happening as the group carries out a £165million expansion, due for completion in spring 2010.

Mr Pegler said: “Even if we knew in advance what would happen with the economy I don’t think we would have scaled down the plans because the timing is actually good.

“Any disruptions on the site are taking place when the business isn’t as busy as it has been.

“We think 2009 will be challenging and 2010 tough, but we think that in that year we will see signs of improvements in the markets, just in time for the opening.�?

The works, called Phase Two, are being funded by Excel owners Abu Dhabi National Exhibitions Co.

With a major portfolio of businesses, the Dubai State-owned group, which bought the exhibition centre last May, is likely to be patient with its investment – good news for its management who are bracing themselves for a challenging period ahead.

Mr Pegler said: “What we are seeing is one or two events are not taking place in 2009 because of the economy and have deferred until 2010. And that’s happening in exhibition centres across the UK and Europe.

“One of those was the Green Sexy Car Show which was going to take place this year before deciding to postpone.

“Also, the boat show was down on visitor numbers. All shows are affected because of the markets they serve. These markets are tough because people are not spending money – there’s not the credit to do it.�?

The Phase Two development will support the seven events taking place at Excel for the 2012 Olympics.

He said: “It’s all on target for spring 2010 which is great. What’s also encouraging is the forward orders, with some running until 2017. It’s a development which will attract big European and international events and it will open up a whole new group of events for us.�?

The company has released details of its events in the first six months of 2009 and one noticeable addition is the Clothes Show in May.

Mr Pegler said: “We’re very excited by that. It’s been run very successfully at the NEC Birmingham, where it was last held before Christmas and now they want to replicate that for the south east. We’ve confident that tickets will sell very well.�?