FRANCE. Tax Free World Association (TFWA) President Alain Maingreaud has said he remains positive about TFWA World Exhibition proceeding in late September, but acknowledged that “there are a number of uncertainties that we cannot control”.
He added that the association has been reviewing all costs and activities in light of the COVID-19 crisis, and has already decided to postpone the China’s Century Conference planned for 2021 until 2022 (see below).
As reported earlier this month, TFWA said it would proceed with its flagship event in Cannes, from 28 September to 2 October, “assuming that the health situation permits”. It will feature a much changed format, structure and pricing.
Speaking to The Moodie Davitt Report about the decision this week, Maingreaud said: “All in all we are positive and our position remains the same [as when we made the announcement] but we need a couple of weeks to see how people react to the new measures we have put in place. Obviously many companies are monitoring the situation, just like we are.”
The measures announced recently include a -30% decrease in rental charges for exhibitors, free registration for visitors and reduced hotel rates.
Maingreaud said that most of TFWA’s Cannes partners were “very keen to go ahead with us” though he added, “They know that the situation may change.”
He said: “We have made a very good agreement with the hotels association, which has been reactive and supportive. We have agreed a -25% decrease in hotel prices following negotiation with the association, and we then enter negotiations with the individual hotels, but the average decrease will be around -25%.
“The City and the Palais des Festivals have also been supportive. The Mayor of Cannes is very proactive but he cannot make promises of any kind; we are all in the same situation. Everyone should remain humble in the face of this [crisis].”
Asked whether he was concerned that some major travel retailers were questioning their participation, Maingreaud said: “We know perfectly well the difficulties they face. I know that if you ask them now about participating, many will say no or that they are not sure. Today they have other priorities and we understand that. They may change their mind later if the situation moves in the right direction. It really depends on what happens in the next couple of months.
“For them the major expense is hotel accommodation so the lowering of hotel rates may help them make that decision. Also for others who are not buyers the cost is [usually] quite significant, and that will be free for all visitors this year.”
Addressing the wider impact of the crisis on TFWA, its finances and its activities, Maingreaud said: “The cancellation of Singapore combined with the set of measures we have announced for Cannes will have a significant impact on TFWA’s finances. These are huge investments. Thanks to sound management of our resources in the past we have built up some reserves, which help us cope with this difficult period. We are confident that the association can recover from this crisis.”
He added that TFWA was reviewing all aspects of its budget for the year ahead. “There will be significant cost-cutting measures, and we will be making difficult decisions. One of those decisions already taken is to postpone the China’s Century Conference from March 2021 until March 2022. That eases the financial pressure on the association as that event is a big investment for us and we are being cautious. So moving it by a year will limit the impact.”
He said that if TFWA is suffering, it has an impact on other trade partners. “We support many other associations in ways that help the industry. This year we have supported ETRC for its digital labelling project, among other things.”
Asked whether the format of industry events may need to change in the face of this crisis, and its aftermath, Maingreaud said it was too early to say.
“There will be changes for sure in how people travel and behave, which we must monitor and adapt to. But it’s too early to say how different the world will be. We hear a lot about how things will change but we have heard that during other crises and things have come back quickly. Let’s see what this crisis brings and if we need to change and adapt, we will do so.”
On the role of TFWA during a time of crisis, he said: “We are very active in the wider industry, namely in regional associations. I am on the boards of the ETRC, APTRA and Duty Free World Council and am also involved with AFCOV in France. We work closely with our fellow board members and try to support them as much as we can.
“This is the time where we as an industry need to work together and that has never been more vital. We organise events so that people can meet, and that is part of our role in difficult times.”
