The letter highlights the ordeal faced by the industry over the last 11 months and has requested for deferment of all statutory liabilities for a period of 12 months among other demands.

With the budget day around, the Events & Entertainment Management Association (EEMA), the apex body of the experiential business in the country has written an open letter to FM Nirmala Sitharaman urging the government for “extending support in the revival of the industry.”

The letter highlights the ordeal faced by the industry over the last 11 months and has requested for deferment of all statutory liabilities for a period of 12 months among other demands.

Here is the full copy of the letter:

To Smt. Nirmala Sitharaman

Hon’ble Finance Minister, Government of India

North Block,

New Delhi-110001

Respected Madam – Greetings

A unified appeal on behalf of the Events and Entertainment industry for extending support in the revival of the industry from the dire economic situation arising out of the pandemic. I write this letter to your good-self on behalf of Events & Entertainment Management Association (EEMA), the apex body of the experiential business in the country.

In the last few years, the Event Management industry has emerged as one of the fastest-growing sectors contributing significantly to Indian economic development. Whether it be trade promotion events, global roadshows, concerts, sporting contests, weddings, ATLs & BTLs etc. etc. – India is becoming a globally preferred destination for Event Management activities. The diverse cultural heritage, abundant natural resources and biodiversity helps to gain the attraction of foreign travelers to organize the event and to visit the country.

If we take a look at the statistics, we will realize that the size of the business is close to 500000 crores in the organized and the unorganized sector. Unfortunately, this Event Management business has been brought down to almost NIL revenue since the first lockdown came into effect due to COVID-19 pandemic. It would not be unfair to say that event & entertainment industry is one of the worst affected

industry if not the worst by the pandemic and has not even been looked at in the various concessions provided to various industries.

Events & Entertainment Management Association(EEMA) conducted a survey of members with 170 companies which are affected by COVID-19. These 170 companies represent over 1,00,000 companies that are struggling in this pandemic. The report depicts a huge loss of business, employer’s livelihood at stake, revenue being affected globally and requirement of funds to attain stability in long run. The major statistics found in the study were:

• 90% of the business being cancelled or indefinitely postponed.

• 50-80% retrenchment of their current workforce

• Each company suffered loss of minimum Rs.1 crore

• Around 97% companies will need to raise capital or debt from institutions or shareholders, VC funding etc. to survive.

• The ideal working capital/loan expected to keep afloat is around Rs. 2-5 crores Since lockdown, all large scale events across all categories have been postponed or canceled due to COVID-19 outbreak resulting in the event management industry to take a Rs.1 trillion hit.

This comprises both formal and informal sectors. Currently it is difficult to calculate the exact loss. There are high chances that small and medium enterprises, which had the major impact, would wipe out completely as it would be difficult for them to sustain amid several cancellations of events across the country.

Since all big-scale events are being canceled or indefinitely postponed, the event industry is looking at 100% revenue loss. Around 90% of daily wagers and approximately ten million jobs under the event industry were impacted. The industry employees around 10 million people across all verticals. With social distancing/lockdown measures being relaxed constantly and hoping that life once again becomes more normal.

The Event and Entertainment Management Association (EEMA) humbly requests you to kindly consider and extend support basis below mentioned points:

1) Subsidies employment for 12 months by government contribution per employee of 50% of the salary. 2) Deferment of all statutory liabilities for a period of 12 months.

3) Grant/permit for refund of GST collected by the government for 3 years and the same be used to stay afloat.

4) 24 months moratorium/deferment in all principal and interest payment of loans and overdrafts.

5) Reward the corporates with a 200% weighted exemption of expenses on all domestic events and conferences.

6) Immediate processing and availability of term and working capital loans with interest waiver for 12 months.

7) Allow free rentals (on merit of the event) to use national monuments and other government venues for 1 year.

8) Special grant to EEMA for up-skilling the industry on managing digital/virtual events.

9) Remove the clause of minimum turnover, EMD and bank guarantees from all government tenders for EEMA agencies across the nation for next 2 years.

If the above requests are considered and implemented, it would help the event management industry in India to stand back on its feet and contribute to the larger growth of the country. It also helps in establishing INDIA as the most preferred destination for event management drawing foreign travelers from across the globe whilst creating substantial amounts of jobs & infrastructure. It would not be out of place to mention that world-class events like India @ 75, G20 Summit, IPL, National Games, etc. including most of the large Government organized events across all states are now managed and produced by event management companies only. It thus becomes imperative for us to please come forward on time and save this young industry from perishing away into oblivion.

Please accept our gratitude for having heard our plea and the Event and Entertainment Management Association (EEMA) is looking forward to your blessings and kind consideration.

Warm Regards

Samit Garg

Executive Vice President - EEMA

Chairman – Govt. Interaction Committee, EEMA

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Sharing few expectations from the budget, Siddhartha Chaturvedi, General Secretary, EEMA added, "The event industry has supported the Government by following all the guidelines till now. We've survived without any work for almost a year. At the moment, our industry needs Government help badly. Never have we ever faced such a situation where the entire year has passed out without any work. Hence, we request the Government to look at us empathetically in this union budget and lend us a helping hand for the industry to stand back again."

Roshan Abbas, President, EEMA added, "EEMA believes we need to keep engaging with the relevant authorities to seek some recourse for our industry. It’s important to have our voices heard. This industry supports 10 million people and they need some recourse to set their lives back."