Sat. Feb 29th, 2020

What economic impact will Barcelona suffer if the Mobile World Congress is canceled by the coronavirus?



The GSMA, the association that organizes the event, will hold its ordinary general council this Friday in Barcelona, ​​in which it will decide whether or not to celebrate the fair

The celebration this year of the Mobile World Congress (MWC), one of the most important fairs in the world of telephony, is on the verge of cancellation after many tech giants are deciding not to participate in the last days because of the risk of the coronavirus.

The GSMA, the association that organizes the event and is formed by more than 750 mobile phone operators and 400 companies in the sector, will hold its ordinary general council this Friday in Barcelona, ​​in which it will decide whether or not to celebrate the fair. What economic impact would Barcelona suffer if the MWC is finally suspended?

Cancellation would mean losing virtually 500 million euros of revenue that generates this fair in the city and the 14,000 temporary employees, but this figure is less than the hundreds and billions that a fair of these characteristics moves between companies.

It remains to be seen if the companies that have announced their withdrawal from the annual event will have to assume the payment of 100% of your space, or if they finally won’t have to pay it in full.

On the other hand, This year’s Mobile World Congress planned record attendance from 200 countries and regions and an economic impact of 492 million euros in this, its fifteenth edition, as announced by GSMA CEO John Hoffman, at the MWC presentation press conference.

According to 2019 data, 117.7 million of that expenditure was allocated to restaurants and nightlife, as pointed out by the Catalan Federation of Associations of Restoration and Musical Activities (Fecasarm). Per assistant, there are about 275 euros what the group said they were spent on the days of the fair.

Also, in case the MWC is finally canceled, it will be necessary to see what happens with the 5 million euros that the Government normally grants to the Mobile World Capital Barcelona Foundation for the celebration of the event in the Catalan capital, as approved by the Council of Ministers last September.

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