 "Some players are concerned that the impact will extend for a longer duration owing to the fear of a second wave of the outbreak")
The Unlock 5 guidelines permitting economic activity, which were released on Wednesday, has given a leg-up to the events business, which had halted after the nationwide lockdown was announced in March.
The rules, issued by the Ministry of Home Affairs (MHA), have allowed exhibitions and allied functions, including entertainment, cultural, sports, and political to be carried out with a 50 per cent capacity of the event area from October 15.
The maximum limit for gatherings has been capped at 200 people, a move that has been welcomed by events companies.
But key states such as Delhi, Maharashtra and Rajasthan have capped gatherings at 50 people only.
Roshan Abbas, managing director of Geometry Encompass, who is president of the Event and Entertainment Management Association, says discussions with these states are currently underway. “Understandably, the ceiling on gatherings is in place in keeping with the Covid-19 situation. However, we have detailed guidelines and standard operating procedures to ensure safety and hygiene. At this stage, we can only hope that the decision is reviewed,” he says.
Two-thirds of Rs 5-trillion events market are unorganised. The organised market, at Rs 1.67 trillion in size, has a significant chunk coming from weddings and corporate events.
Experts say the revenue loss has been significant for events companies, since events and activations had come to a standstill due to the disease over the past seven months. While virtual events have increased over the past few months, industry executives say it will not compensate for the job and revenue losses the sector has seen in the past two quarters.
Brian Tellis, co-founder and group chief executive officer of Fountainhead MKTG, says the industry will bounce back once a vaccine has been found. Small and medium enterprises, says Sabbas Joseph, co-founder and director of Wizcraft International, have suffered the most, as it has been impossible for them to continue in tough market conditions.
Some players are concerned about the impact extending for a longer duration owing to the fear of a second wave of the outbreak in the months ahead.
