MWC 2020 is without any argument tech’s most important trade show. But many of the tech giants started to pull out from the event after the widespread alarm of Wuhan coronavirus outbreak terrorized the whole world. Major tech giants including LG & GTE, Facebook, AT&T, Nokia, and Cisco began pulling out of the show. Yet there were thousands of other smaller mobile manufacturing companies that wished to show off their new wares, get press coverage, and hopefully sign some sales deals from this event.

Though the bigger companies already planned and declared their individual showcasing programs. But the smaller companies will suffer a big blow for missing the opportunity to attend such a big program. Host city Barcelona will suffer more. This cancellation of the Mobile World Congress is devastating for them.

Barcelona is the second-largest city in Spain. It has a population of around five million. Every year in February, the city depends on the Mobile World Congress to deliver a positive economic boost. And generally, that goes far beyond the facility the trade show is housed in. This show attracts more than 100,000 people to the city. They spend money on eating out, going on tours, hotel rooms, and many other things that stimulate the local economy at every level.

Impact of MWC Cancellation on Barcelona

According to Bloomberg, here’s what Barcelona will lose out on with the cancellation of this year’s MWC:

• More than 100,000 visitors who normally spend money on shelter, eating out, and other economic activities,
• In total, those visitors spent $513 million during MWC 2019 alone—that’s half a billion dollars Barcelona’s economy is going to lose out on this year.
• Hotels will be one of the worst sufferers, considering the cancellations that are likely going on at this moment. Historically during MWC, Barcelona’s all of 430+ hotels are fully booked.
• Moreover, that spend by visitors was creating almost 14,000 temporary jobs for Barcelona in 2019. The need for these jobs will no longer be there now.
• Impact on Transportations like ride-sharing and taxi jobs are also huge. Bloomberg says a local taxi firm has already suspended plans to add another 1,500 drivers during the event.

Obviously, there is always next. This means this city will get the chance to host again next year. But for the city who very much rely on such events for the livelihood of many, next year is too far. Mobile World Congress is Cancelled this year due to the Coronavirus outbreak of Wuhan, but Barcelona and thousands of smaller tech companies are paying a high price for that.

Both the LG and ZTE declared now that they are going to skip the MWC Barcelona 2020. Mobile World Congress is the biggest yearly showcase in the field. This year it will take place in Barcelona, Spain at the end of February.

The spokesperson from ZTE told The Verge that, they are cancelling their MWC press conference this year. They mentioned the secondary effects of the Corona virus outbreak. ZTE also mentioned some practical issues with travel and visa delays in the press briefing.

On the other hand, LG issued a statement that it decided to “withdraw from exhibiting and participating in MWC 2020“. They explained their concern with the health of its employees and partners. Also shared their concern over the health risk of the customers in mind.

According to the statement, “their decision removes the risk of exposing hundreds of LG employees to international travel which has already become more restrictive as the virus continues to spread across borders”. Though they are skipping MWC this year but still LG will arrange separate events soon to announce its latest 2020 mobile products”.

In the meantime the organizer of MWC (GSMA) issued its own statement saying “there is minimal impact on the event thus far”. So still MWC 2020 will proceed as planned. GSMA preparing with many measures to help reducing the spread of the virus. Full statement from MWC is attached here if anyone interested to check the prep works from MWC.