Brno Trade Fairs are profitable, they will build a new pavilion

Brno – Veletrhy Brno, which is a city-owned company, achieved an operating turnover of over one billion crowns last year, which is roughly the same as in the comparable year 2017. When including revenue from the sale of a stake in the Holiday Inn hotel and other business transactions, the turnover amounted to 1.44 billion crowns. Profit grew to 250 million crowns, thanks to these transactions, said CEO Jiří Kuliš at a press conference today. This year is expected to be very successful given the composition of exhibitions and Messe Düsseldorf’s demand for services.

The company succeeded both in its main exhibitor activity and in exhibition services, the main client of which is Messe Düsseldorf, even after the German company withdrew from the shareholder structure. "Last year we did contracts for them worth six million euros (151 million crowns)," Kuliš said. This year, interest should be even stronger. However, the question is whether Veletrhy Brno will find enough subcontractors. "There are few craftsmen, and the wages they receive in Germany are gradually aligning with what they receive at home. People used to be happy when we sent them to Germany for a week, but today the situation is different," noted Kuliš.

Exhibition and congress activities thrived even though the Wood-Tec fair was moved from last year to this year. A very strong year is also expected thanks to the Techagro fair, which takes place once every two years, and in even-numbered years, there is also a stronger engineering fair. "Motosalon, for instance, will be record-breaking in terms of size," said spokesperson Jiří Smetana.

Thanks to long-term successful management, the company is also significantly reducing its debt, which is a legacy primarily from the construction of Pavilion P just before the financial crisis. The fairs have already rid themselves of bank loans and received a loan from Teplárny Brno thanks to their membership in the city-owned company group. Kuliš anticipates that the company will completely eliminate its debt in two years.

The company is also intensively preparing for the construction of Pavilion D and changes in the western part of the complex. The pavilion will be located next to Pavilion C, with the design prepared by architects from the Arch.Design studio. Following protests from heritage protectors regarding the original design, they devised a connection between the pavilions using a two-story corridor. "Heritage protectors liked how we angled the walls adjacent to Pavilion C to maintain a good view of the heritage-protected Pavilion C, which dates back to 1958," said architect Jaroslav Dokoupil.

The project should have a building permit by August, but when construction will actually begin is unclear. According to Kuliš, it depends on the cost of construction work, which is currently high; the budget should be around 450 million crowns. The second reason for the uncertain start is the need to harmonize construction with other projects, which include the construction of a multifunctional hall in the western part of the complex, the construction of a parking garage, a footbridge to Riviéra, a new transport connection for the western part, and the shifting of the western boundary of the complex eastward.