The results of a survey carried out among exhibitors at this year’s trade fair in Naxxar do not come as a surprise.

Carried out by the Chamber for Small and Medium Enterprises – GRTU – at the end of the 15-day fair, the results show that only three per cent said that there had been an improvement over the previous year, while an amazing 63 per cent of respondents concluded that business during the trade fair had been worse than last year.

Eight per cent said the outcome was good, while 26 per cent said that there had been no change in performance, compared to the previous year.

GRTU director-general Vince Farrugia said the present state of the economy, and a lack of disposable income, were contributing factors to the poor performance registered this year.

To a point, the results certainly reflect a dampened outlook for the Maltese economy. It would not be correct to state that, at a micro-economic level, the Maltese economy is growing at a decent rate. There are various reasons to explain why people’s purchasing power has declined over the past year or so. The surcharge on water and electricity, the increased cost of certain essential items like medicines, have both impacted negatively on a family’s disposable wealth. Therefore it is not surprising – on the contrary, it is to be expected – that there is a correlation between the state of economy and the level of business at the fair.

It is also very important to put these results in the context of changing spending patterns and changing market dynamics. The question we must be asking is “why do people go to the trade fair?”. Some people genuinely do go looking for discounts on a range of products, with the added bonus that they can find what they need in a single location.

However, the majority of people see the trade fair as an opportunity to spend an evening out, visiting a “large open air market” and maybe, if something catches their eye, buying it. The perception that the Malta International Trade Fair is “the” must event of the year has all but faded. Why? In simple terms, competition has forced business to offer discounts and special schemes throughout the year and not just during the trade fair period. Consumers have also become more market savvy, knowing full well that prices during and after the fair will basically remain the same. For that reason, many will not be bothered to make a purchase during the fair.

Another important development over the past 10 years or so has been the focus on specialised fairs throughout the year and these certainly have an effect on business during the July fair.

Examining the survey results in this manner, the correlation between the state of the economy and business at the fair becomes less strong. This fact raises another important question: is the July fair still worth organising? If businesses do not take part in the July Fair, will it have such a negative effect on their yearly turnover? Some may argue that every opportunity to made a sale is worth taking and this is a fair point. Yet, it may be all the more worthwhile to focus on specialised fairs on a more regular basis than to concentrate a considerable amount of effort and resources on the main international fair. That the composition of the trade fair participants has changed enormously over the years – from strictly hard goods vendors to financial institutions offering the latest investment products – adds further weight to this suggestion.

Maybe the time is ripe to take the trade fairs product back to the drawing board and come up with a revised package that meets today’s market realities. Trade fairs will always be important events in the annual calendar for both customers and traders.

Some fine-tuning may just be all that is needed to improve the results of next year’s survey.