Event industry crisis 2025: worst liquidity crunch in a decade

Upathum Nisitsukcharoen, President of the Event Management Association (EMA), stated that 2025 has been one of the toughest years in recent memory for the event industry. Both government and private sector events have declined significantly, with companies across the board—small, medium, and large—struggling with severe liquidity issues.

He attributed the downturn to a combination of global and domestic factors, including economic uncertainty fueled by Trump-era policies, the World Bank’s downgrade of Thailand’s GDP forecast from 2.9% to 1.6%, and a tight financial climate across the broader economy. “It’s a total collapse,” he said bluntly.

“Everyone is struggling—organizers, suppliers, freelancers. Many have completed projects but haven't been paid, likely due to liquidity problems throughout the market,” Upathum explained. “In my view, this is the worst the industry has faced in a decade.”

He noted that payment delays, banking restrictions on lending, and administrative bottlenecks in disbursements are contributing to a system-wide cash flow crisis, affecting the entire event supply chain.

“Over the past three years of Covid (2020–2023), companies burned through all their cash reserves just to stay afloat,” he said. “We all thought that once the pandemic ended, things would rebound. But they didn’t. The graph didn’t rise—it fell further.”

Now, with limited access to loans, fewer projects, and slow-paying clients, the entire industry is feeling the strain. “Everyone’s tightening their belts. Downsizing teams. Cutting costs. It feels like the early days of Covid all over again—with no work, and no visibility on when things will improve.”

He also expressed deep concern for Thailand’s broader economy this year. “Liquidity has dried up, especially due to the freeze of major government and private projects. This is triggering a domino effect across the entire supply chain,” he warned.

Upathum added that not all segments of the event industry are equally affected. Amid the downturn, the supply chain sector—particularly lighting, sound, and stage production—still sees steady demand, especially from Electronic Dance Music (EDM) events, which continue to take place regularly, albeit on a smaller scale.

In contrast, large-scale festivals and major public events are becoming increasingly rare, and event organizers are once again facing conditions similar to the early days of the Covid-19 pandemic—no new projects, staff downsizing, and deep cost-cutting across the board.

Despite these challenges and widespread liquidity problems, he remains cautiously optimistic, forecasting that the event industry could still grow by around 10% this year. He explained that the sector has already undergone significant transformation.

“Consumer behaviour has changed. People are more willing to spend to engage directly with their favorite artists. Concerts that foster real participation are in high demand. You can see this clearly—concert tickets now sell out within hours,” he said.

Upathum noted that the event business hasn’t been disrupted by AI or technology, but rather by a shift in how events are organized. The industry is moving more toward lifestyle and festival-based formats, such as Songkran festivals and music concerts, while traditional marketing-driven events are becoming less common.

“This is a transition phase. Soon, we’ll better understand what event formats resonate most with people,” he said. He believes that Thailand’s MICE (Meetings, Incentives, Conferences, and Exhibitions) industry will soon embrace new, global trends in event design and engagement.

Finally, he called on the government to support event businesses, especially by improving access to loans and speeding up budget disbursements. Many companies are struggling not because of lack of ideas or effort—but because banks are reluctant to lend and large-scale projects remain frozen.

“If funding begins to flow again, it could jump-start recovery across the entire ecosystem,” he concluded.