Today, the global pandemic, COVID-19, has affected several industries around the world. It has swiftly spread from nation to nation and has transgressed the epidemics in the past both in the rate of infection as well as economic damage. Amid the on-going health crisis, business leaders are facing a new reality while preparing for an uncertain future.
If there is one topic to discuss that event organizers can agree upon, it is the disruption that’s caused by the current crisis. In less than a year, it has made sweeping changes in the landscape of the events industry. This is evident from the massive number of events either put on hold or cancelled. Ironically, social distancing has become the new norm, in contrast to social gatherings that events are basically created for.
No event has been held in these past 2 months and there is a high possibility that it will continue as such for at least the next 6 months. In this time of uncertainty, they need to effectively manage and fulfil financial responsibilities and reduce any financial risks at the absolute minimum.
The local event companies invest millions in world-class equipment. They have continuously proved to have the calibre to cater to top tier artists and huge international corporations with their events either internationally or at the world-class resorts in the Maldives. However, with no source of income, the event production sector has no way of paying rent for their warehouses or offices. This bulky equipment cannot be sold off or relocated in these precarious times. In addition to this, the owners are struggling to protect the salaries of their employees as well.
The government has introduced a stimulus package of MVR 2.5 Billion including loans for SMEs. This includes MVR 1.55 Billion for SMEs to meet short-term working capital needs. This may help these event management companies to survive the pandemic. However, they will require more financial assistance to stand throughout the recession.
This year could not have been a more challenging time for the events industry. The government’s response in financial aid as soon as possible will be the only opportunity for these event management companies to get the show going again.
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Source URL: Corporate Maldives