Mobile World Congress and Coronavirus
The entire world remains on alert for the seemingly unstoppable Coronavirus. So far, there have been more than 1,600 deaths and 69,000 cases around the globe. The state of alert continues, as do the actions to try to contain the disease.
Besides, many begin to warn about the possible economic consequences of the virus, not only for China but for the entire world. China being a key country in international supply chains, the continuity of the state of crisis could have catastrophic consequences for global trade.
Although it is still unknown precisely what the economic impact of this health crisis will be. Its consequences begin to feel inside and outside the Asian giant. Canceled flights, completely stopped cities, factories with interrupted production, among others, are beginning to affect the economy importantly.
Europe has also started to feel the impact of the Coronavirus directly. In France, the first death outside of Asia was caused by the virus. While in Spain, the long-waited MWC or Mobile World Congress was canceled.
The cancellation of the World Mobile Congress
The event, which has been held in the city of Barcelona since 2006, is considered the most important congress in the world around mobile communication. It is there, in the Fira of Barcelona, that companies, investors, engineers, and other experts in mobile technology gather year after year to commercial agreements, attend conferences and present their latest products. However, just a couple of days before its celebration, the event was canceled due to fears of the continued spread of the Coronavirus.
For many, it was an exaggerated reaction without justification, being Barcelona far from being an area of risk. For others, it is merely a consequence of the globalized economy and with the number of participants from China and Asia in general, who would attend the congress, a justified precaution.
The Korean company LG was the first to announce that it would not attend the congress. This announcement was followed by a chain reaction, Ericsson, AT&T, Facebook, Lenovo, Amazon, and Sony, among many other multinationals, canceled their participation. The reason: the fear of health risks because of the spread of the virus.
After that, organizers of the event that expected more than 110,000 attendees and 2,800 had no choice but to cancel the event for the first time in 33 years. This decision will have a tremendous economic impact not only for the organizers of the event, and the city of Barcelona but also for all the companies involved.
Estimated losses:
The city of Barcelona has reported losses of 492 million Euros, and 14,000 temporary jobs will be canceled.
Companies such as Xiaomi and Oppo must delay the global launch of their new series Insignia Mi10 and OPPO Find X2, respectively.
Other companies that will have to postpone and look for other spaces for their new releases are Samsung for their Samsung Galaxy S20 and Samsung Galaxy Z Flip and Nokia for their Global HMD.
The thousands of agreements that are usually made at the congress will be postponed or canceled.
Numerous companies suffer economic losses due to cancellation. However, the most affected will be startups, for whom their participation in the fair means an investment of great importance.
Lastly, the cancellation of the WMC is a sample of how the corCoronavirusy continue to affect international trade and business, in ways that had not been foreseen.
⚠️📣Breaking news! The #MWC20 has been officially cancelled. The impact is going to be huge for the tourism sector in Barcelona, where the hotel average prices are dropping up to -14% for the event’s week. #smartdata #travelintelligence pic.twitter.com/aIsPvUnhDt
— Mabrian Technologies (@MabrianOfficial) February 12, 2020
Tweet from the Big Data for Travel Intelligence Company, Mabrian, with the drop of prices from hotels in Barcelona for the week of the event , according to OTAs (Online Hotels Resellers)
