The data reveals: The epidemic damage that led to the economic crisis in the halls • About 610 out of 950 got into huge difficulties and shut down all activities • "Places that were just established were groaned under the pre-Corona investment financing burden"
This was of course to be expected due to the Corona epidemic damage, but the halls and event gardens industry suffered a severe economic blow after a long closure during 2020. A report by business information company CofaceBdi reveals the impact of the corona on the halls and events industry industry in 2020. The company, the number of halls and event gardens stood at about 950 before the corona crisis and following the corona crisis about 610 got into difficulties.
Following the crisis, some 122 event halls and gardens were closed, and will not be reopened.
The data also show that the average turnover for an event hall or garden before the Corona crisis was about NIS 14 million;
For a very small event hall or garden for NIS 4.2 million;
For a small hall for NIS 13 million, for a medium hall for NIS 29 million, and for a large hall for NIS 70 million.
In terms of geographical distribution, most places are located in the center and Sharon - 46%, in the north with 31% and in the south with 23%.
On the way to small events?
According to Tehila Yanai, Co-CEO of CofaceBdi, "The data in the report reflects the severe damage to the ballroom and event halls industry following the corona crisis. "To continue their activities in alternative ways, the event gardens were forced to completely close their activities. Moreover, there are quite a few halls that were established only shortly before the crisis burst into our lives and as a result groaned under the pre-Corona investment financing burden."
Yanai emphasizes that "with the return to routine, the demand and orders for event garden activity have also returned. However, we may see a change in the behavior of consumers of event gardens, who will prefer an event of a smaller size than before.
"It is important to also address the niche of business events and conferences, whose return to activity at this stage is still significantly reduced compared to the pre-crisis period. In general, we estimate that the recovery of garden and event hall owners will be more gradual than other industries."
Despite the difficult data, Noam Levy, chairman of the Association of Halls and Event Gardens, releases a sedative siren. Levy commented on the data, saying that "there were never 950 halls, but 750 halls.
50 halls may have been closed, but at the same time 40 new halls were opened with investments of tens of millions of shekels.
The events industry is back in full force.
Prices have risen by 25%, and forward occupancy has never been so good.
We stand at 90% occupancy. "
Levy goes on to explain that "prices have gone up because of the costs of manpower and goods, and because of the regulation we are dealing with, which costs us a lot of money. I congratulate the owners of the halls for Lag B'Omer today and wish success to the entire event industry."
