London’s event industry keeps resurging amidst talk of lower interest rates in the UK

LONDON, UK – March 21, 2024 – The decline in inflation has sparked discussions within the UK market, with the consumer price index dropping to 3.4%; financial experts are expressing optimism for the events industry market.

The notable decline in inflation, attributed to the easing of food pricing, has brought forth the possibility of lowering interest rates. This development augurs well for the already resurging events industry in the UK.

According to Allied Market Research, the UK’s events market reached $139.9 billion and is expected to grow with a CAGR of 5.0%.

"This could lead to a resurgence in event attendance and contribute to the industry's overall growth and vitality. Lower interest rates present a significant opportunity for attracting more clients and expanding market presence. With reduced borrowing costs, businesses can invest in enhancing their offerings,” said Harry White, director of London’s premier event company, AV Productions.

Mr. White explained that the first half of the year is always filled with London events, with the city experiencing an influx of visitors during the summer months. This is particularly promising for them as their staging hire services depend heavily on outdoor events, including live events and concerts.

The UK's event industry welcomes the prospect of lower interest rates. It’s nothing short of a lifeline for businesses struggling to recover from the challenges posed by the pandemic. The expected decrease in borrowing costs could pave the way for a revitalization of the industry. Venue owners and event organisers may find it easier to access capital for necessary investments and operational expenses. This could bring renewed energy and innovation to events across the country.

"Financial reports and interest rates have the potential to act as a catalyst for economic activity,” clarified Joel-Blaise Williams, the event economic expert.

“The impact of inflation and interest rate can be seen across various sectors, including the event industry. With reduced financing costs, the corporate sector can undertake strategic investments in events, such as venue renovations, technology upgrades, and marketing campaigns. All this will ultimately stimulate demand for events and related services,” clarified Williams.

According to Williams, virtual events and digital exhibitions became a trend during the COVID-19 pandemic, but live events are back now. Since the 21-40 years old age group dominates the market, he thinks US$5.21 billion in revenue will be generated by the Event Tickets market alone in 2024.

The numbers crunched by Statista validate the claim made by Joel-Blaise Williams. In the UK’s Event Tickets market, the average revenue per user (ARPU) is expected to rise to US$287.40. On the other hand, user penetration is also expected to increase in 2024, reaching 26.3%.

Mr. White considers these stats a good omen for the industry, especially during the summer season.

“The months of May, June, and July are the best time to visit London, and visitors love to attend concerts and events. The availability of cheaper credit can empower event companies to pursue growth opportunities that may have been previously out of reach. This could also play a crucial role in supporting the recovery and expansion of the UK's event economy,” said Harry White.

We may see an uptick in event-driven economic activity, as per Mr. Harry, and the ripple effects felt across supply chains and local economies.

About AV productions

AV Productions is a central London-based event company that caters to the needs of the corporate sector. The company offers full-service event production services, including AV rentals, staging hire, lighting, and IT equipment for live, hybrid, and virtual events.