Could business events be getting a bad rap?

When it comes to hosting events, there are some new risks in town: non-delivery, poor service and payment delays. Complaints of this nature have become more common during the post-pandemic recovery phase we’re in. Meetings explores the question: how can you safeguard your business and brand – and, ultimately, our industry – from the damage these can cause?

Working in the MICE space in 2022 was not for the faint-hearted. Additional challenges such as an exodus of expertise, a shrinking network of suppliers, heavy debt repayments and a struggling economy made already stressful jobs that much harder. And then there were the knock-on effects of these consequences…

Ellen

Oosthuizen,

chairperson of the PCO

Alliance Network, shares that two PCO Alliance Network members secured the same venue for year-end events last December – one paying a hefty deposit, the other in full – only to discover that the landlord had closed the venue down after a lapse in rental payments.

“The venue didn’t inform any clients that it had closed, and four corporates that we know of came to closed doors,” says Ellen, adding, “I have never experienced this in the 28 years I’ve been in business!”

Lee-Ann Alder, association manager of the Exhibition and Event Association of Southern Africa (EXSA), also raised the issue of non-delivery in the Sept/ Oct 2022 issue of Meetings , citing cases of custom stands not being built in time for exhibition openings.

Another concerning trend impacting events, and voiced by several event planners, is a decline in service levels. Angelique Smith, owner of Event Synthesis, elaborates: “Some venues don’t have sufficient staff to coordinate the bookings and manage the events on the ground. Equally, staff are not properly trained in hotels as well as hospitality and banqueting.”

It’s not only venues who are short of expertise, Angelique adds, as technical suppliers have also let them down. She explains, “We had an event where the technical company who was performing the job in Kempton Park had to travel to Pretoria twice to collect missing items, therefore delaying the stage setup and start of event by an hour. Another staging company did not have their health and safety file on-site and the EMS inspector would not sign off on the stage installation or open the event until the file could be produced.”

Kevan Jones, executive director of the Southern African Communications Industries Association (SACIA), has previously warned that the technical services industry is facing a severe skills shortage. “Reliable estimates suggest that almost 30% of the country’s technicians are now working in the Middle East alone. This doesn’t include those who have moved elsewhere or changed careers. Meanwhile, most students entering the workforce have been learning in a virtual environment, due to Covid, and so the practical skills required by event technical crew were not taught,” he says.

Helen Brewer, director of The MICE Academy, notes another trend that is negatively impacting venues – delays in paying deposits to secure a venue. She says, “Taking current circumstances into account, there needs to be a greater understanding of the venue costs, which include alternate means of powering via generators, solar and more gas than usual. This calculates to a greater bottom line of costs and shorter lead times in food purchases as preservation over more than a few days is complicated and expensive. With short lead times in paying confirming deposits – or worse still not paying – it becomes a nightmare for the average MICE venue.”

JP van Schalkwyk, executive director of Up A Tone Events, agrees that clients are now taking considerably longer to make decisions, which has a knock-on effect that can complicate the event planning process.

He says, “It is crucial that clients have a realistic understanding of the time and resources required to plan and execute a successful event. This means setting clear and achievable goals, and providing all necessary information and requirements up front. On the other hand, suppliers and venues must be willing to work closely with clients, and be flexible and responsive to their needs and concerns.”

He agrees that load-shedding and power failures exacerbate the challenges inherent in planning any event, causing an even greater need for added precautions and contingencies to mitigate these risks and the extra costs involved.

So, what can those operating in the MICE space do when trying to stage professional events in this current context? Fortunately, there are many steps one can take to avoid being let down by poor service or non-delivery.

Lee-Ann recommends working with companies who are members of professional industry bodies, such as EXSA, explaining, “All EXSA members are vetted and approved before they can join the association. For example, they must provide evidence of safety files, be POPIA compliant, have evidence of tax compliance and sign a code of conduct. By joining EXSA, they are upheld to certain standards and there is some recourse should anything go wrong.”

Other events industry associations have similar processes, effectively endorsing the professionalism of their members.

Helen recommends venue users adopt the following approach:

• When using limited-capacity ‘private/ independent’ venues, obtain and check references thoroughly while ensuring the contract is clearly spelt out with no loopholes. This includes the repercussions of not delivering that which has been discussed and agreed on.

• If you have any doubts with limitedcapacity ‘private/independent’ venues, it is preferable to utilise venues within hotel groups, as the possibility of nondelivery is lessened.

Helen adds that a professional planner should always check the competency levels of the staff at a venue in keeping with their duties, together with the number of personnel provided for the attendee count. These should be included within the service level agreement (SLA).

“Where competency abilities and personnel complements are not detailed – it is incumbent upon a professional planner to ensure the required personnel are provided,” she says.

Helen advises venues in particular adopt the following strategy:

• Inform all potential clients of the challenges of short lead times, and why this necessitates advance deposit payments.

• No payment by a certain date may allow the venue – on enquiry – to take up a further booking.

Regarding the technical skills shortage, Kevan says, “Event organisers are calling for more training, but there’s no shortcut to experience. To create professional events, organisers will need to plan more effectively and allocate additional time for setup and strike of technical equipment. They’ll need to pump up their budget allocation for technical support, and they’ll need to be confident that their appointed technical contractor has the skills and technologies required to do the job.”

From a legal perspective, Advocate Louis Nel – aka Louis the Lawyer – encourages proactively adopting a good risk management strategy. (“Prevention is better than a cure!”) He shares the following guidelines:

• Do not simply cut and paste terms and conditions (Ts&Cs) you find on the internet. It may not be suitable and/or there may be copyright issues. However, if you do, check about copyright and amend it to your requirements.

• You should address not only Ts&Cs but all the documents you use on a regular basis, such as quotes, delivery notes, SLAs (this is crucial), indemnities, etc.

• There is no need to run to a lawyer every time you are faced with any of the above. First, do your ‘homework’ – i.e. adapt whatever document you are drafting to your specific needs based on your experience. Only then do you need to obtain input from a lawyer, and ideally one well versed in your industry.

• The same applies when a service provider submits to you their Ts&Cs.

• Ideally you should aim to create templates of all the documents you require regularly, thus reducing or obviating legal advice and fees.

Helen says, “The array of service providers within the MICE industry is almost unlimited. SLAs are a necessity and should be specifically worded in keeping with the particular event requirements – and duly signed by both parties.”

Sometimes, it’s too late for a proactive response, such as those measures covered above. What then?

Louis says, “Okay, so you are saddled with a claim for poor or non-delivery. There are various options such as suing or litigation, mediation and arbitration. The route you go will depend mainly on whether there is a contract between the parties or not, and the terms of that contract.”

He says that a contract can be a formal contract or Ts&Cs, hard or soft copy, lengthy or brief and simply referred to in the proposal or invoice.

If there is a contract, both parties are bound by it, whether it is signed or not. This is due to “so-called implicit/tacit acceptance”, explains Louis.

He continues, “If the contract has a dispute resolution clause, such as negotiation, mediation and arbitration, this must be applied before resorting to litigation.

“Litigation and even arbitration can be very expensive, so it is worth using your best endeavours to negotiate an amicable ‘out of court’ settlement. As the saying goes, ‘A bad settlement is better than a good court case’.”

If there is no contract, common law will apply. Louis expands, “This does not preclude instituting court action, and your action will be based on the implied/tacit terms of the contract that the plaintiff alleges and has to prove was agreed on by the parties or, failing that or by choice, delict – e.g. a claim for damages based on negligence. You can well imagine how complex and costly this can be, so it is to be avoided at all costs!”

Unfortunately, it will take time for the industry to recover to the point that these issues are no longer relevant. In the meantime, JP sums it up well when he says, “The South African events industry is facing some serious challenges but, with a collaborative approach and realistic expectations, it is possible to overcome these obstacles and deliver successful, high-quality events.

It is important that everyone in the industry work together to ensure the longterm growth and success of the events industry in South Africa.”

MICE events tend to have several outcomes that all need to be met, and it is a planner’s job to ensure that they all are. How is this careful balance achieved? Meetings reaches out to four different planning professionals across the MICE pillars to get their tips on how they are getting it right.