The Recreational Vehicle Industry Association (RVIA) Board agreed to raise space rental fees 3% at its two shows because the association reported a $937,000 operating loss for its fiscal year 2001 and it anticipates a $500,000 operating deficit for its fiscal year 2002, which will end next Sept. 30.
As a result of the increase, RV manufacturers will pay $3.70 per square foot to exhibit at the RVIA’s show in Pomona, Calif., Oct. 11-20, and $3.80 per square foot to exhibit at its National Trade Show in Louisville Dec. 3-5.
Suppliers’ booth space rental fees also will increase 3% at the two RVIA shows, said Mike Hutya, the RVIA’s director of shows.
The 3% increase will add about $150,000 to the RVIA’s annual revenues, said Dave Humphreys, association president. However, due to the electric power shortage in California, the RVIA will need to pay a $20,000 surcharge for its Pomona show this year, he said.
This year’s show space exhibit fee increase is the first in two years, Humphreys added.
The RVIA is not short of cash because a decline in the value of the association’s investment portfolio was a major reason for the operating deficit during the fiscal year that ended last Sept. 30, said Dick Coon, director of RV sales and marketing at Onan Corp. and the RVIA board treasurer.
The value of the RVIA’s investment portfolio, which is included as a part of the association’s annual revenue, declined $459,000 during the 12 months ended last Sept. 30, Coon said. Consequently, the RVIA’s “membership equity” declined to $5.44 million as of last Sept. 30, compared with $6.38 million as of Sept. 30, 2000.
Revenue from the RVIA’s two shows increased 10% during its fiscal year 2001 to $6.27 million, compared with $5.69 million during fiscal year 2000, Coon said.
Revenue from the Pomona and Louisville shows accounts for two thirds of the RVIA’s total revenue, according to Coon.
Because of lower production volume, revenue from the sale of RVIA seals to OEMs declined to $815,000 during fiscal year 2001, compared with $1.1 million a year earlier, Coon said.
Revenue from membership dues slipped to $1.9 million during fiscal 2001, compared with $2.0 million in fiscal 2000, Coon added.