'Economic disaster' warning for venues from NEC boss

Paul Thandi says he has been running a "zero revenue business" since the NEC closed its doors for the first time in its more than four decade history on March 16.

He says he does not expect there to be any live indoor events in the UK in 2020, and with next year also set to be "tough" he has called for support to help the events industry survive.

NEC Group chief executive Mr Thandi, said: "I would now ask that the government supports us in our fight to recover the economy."

Mr Thandi wants the Government to extend the furlough scheme until March 31 for businesses which have been forced to remain closed longer than others, enabling them to save jobs.

He has also asked for VAT and rates payments to be deferred beyond January to prevent firms from facing a "cliff edge", and called on Ministers to boost public confidence by spreading the message that venues are safe to attend.

The NEC Group is the biggest events sector firm in the UK and runs five venues in and around Birmingham, including the NEC, Resorts World Arena, the ICC and Utilita Arena Birmingham.

They cater for seven billion visitors each year and bring in revenue of £4bn.

Although they have been given the green light to reopen on October 1, Mr Thandi said the outlook was "very anaemic", with events unlikely to take place then due to low public confidence in safety measures and exhibitors unable to commit at such short notice.

"The issue is that for exhibitors and visitors to get ready for that date, there needs to be an element of confidence that the event is going to take place," he said.

He stressed that NEC venues all had appropriate Covid safety measures in place and urged the Government to "get a message of confidence out there" to encourage people to return to venues.

On extending the furlough scheme, Mr Thandi said: "In order to protect 800 full time jobs and 1,200 part time jobs we have in our business we need some support to take us through to March 31."

He said that it would be impossible for the business to bring in enough revenue over the next six months to start paying back VAT and rates that have been deferred.

"We want the Government to protect significant businesses like ours that have a strategic value to the country," he said.

"Otherwise we will face an economic disaster, not only in the region but in the country."

Last week the NEC confirmed that the NHS Nightingale emergency hospital currently occupying the venue is to be decommissioned, with a small non-Covid standby facility put in place until the end of March.