To examine the impact of coronavirus on the live events industry, Events and Entertainment Management Association (EEMA) conducted a member survey with 170 companies.
According to the report based on the survey, around 52.91 percent of companies saw 90 percent of their business being cancelled between March-July 2020 due to coronavirus.
The report highlights loss of business, the revenue impacted, employers affected and the funds required in the long run to attain stability.
Out of 170 companies that were surveyed, 63 percent of them or 107 companies suffered a revenue loss of up to Rs 1 crore due to COVID-19.
Around seven companies estimate a 50 percent to 80 percent retrenchment of their current workforce and 35 companies between 25 percent to 50 percent.
To keep the business afloat for next six months, 39 companies will need working capital or loan in the range of Rs 2 crore to Rs 5 crore and 118 companies will need Rs 1 crore to Rs 2 crore.
Around 97 companies will need to raise capital or debt from institutions or shareholders, VC funding, etc, the report said.
The event and entertainment industry is going through challenging times since the outbreak of the coronavirus pandemic. The industry has witnessed a major dip in business due to the cancellation of events worldwide.
However, the sector is making efforts to stay active through digital events, webinars.
Yet, the daily wage workers and the small and medium scale agencies associated with the trade continue to face the brunt of the crisis and are in need of immediate support.
The 170 member survey represents over a 1,00,000 of companies that were affected by this pandemic and EEMA urges the government to consider some steps like the immediate payout of all income tax refunds, which have been due for a while, and the due payment from the central and state governments to event companies for work done or work-in-progress.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
