economic impact of leipzig congresses #icca11 monday 24/10/11
DESCRIPTION
Presentation on Economic Impact of Leipzig Congresses held during the 50th ICCA Congress. #icca11 MONDAY 24/10/11TRANSCRIPT
ifo Institut für Wirtschaftsforschung an der Universität München
Economic Impact of Leipzig Congresses
for Leipzig, the Free State of Saxony, the new federal states and Germany
Leipzig, 11 May 2010
ifo Institut für Wirtschaftsforschung an der Universität München
2
Contents
1. Objectives of the study
2. Excursus: structure of the study
3. Individual results: 2009
4. Overview/summary
5. Excursus: competition analysis
ifo Institut für Wirtschaftsforschung an der Universität München
3
1. Objectives of the study
ifo Institut für Wirtschaftsforschung an der Universität München
4
Objectives of the study
- Determine the spending of the conference participants and exhibitors for 2009
- Direct economic effects on production, employment and tax revenue
- Identification of indirect economic effects via supply linkages and income effects on production, employment and tax revenue
- Regional economic effects for Leipzig, Saxony, the new federal states and Germany
Comparison: 2002, 2004, 2006 and 2009
ifo Institut für Wirtschaftsforschung an der Universität München
5
2. Excursus: structure of the study
ifo Institut für Wirtschaftsforschung an der Universität München
6
Structure of the studySurveys- Participants- Exhibitors
Indicator extrapolationsfor non-surveyed
congresses
Regional breakdown of expenditures:
- Leipzig, Saxony, the new federal states, Germany, abroad -
(Direct effects: production, employment, tax revenue)
Structuraldata
Input-output calculation
(Indirect effects: production, employment, tax revenue)
Extrapolation
Total expenditures
Extrapolation
Total expenditures
(dir
ect
and
ind
irec
t)
= in
du
ced
eff
ects
Info from1,608
respondents
ifo Institut für Wirtschaftsforschung an der Universität München
7
Expenses of conference participants
Travel costs (long distance, urban transport)
Stand construction, services for exhibitors
Expenditures of stand personnel (accommodation, meals)
Shopping, entertainment, leisure (incl. holiday)
Travel and personnel expenses (pre- and post-processing)
Restaurants (own needs, hospitality), accomodation
Expenses of the exhibitors
ifo Institut für Wirtschaftsforschung an der Universität München
8
Indirect effects
Hotels(direct)
Demand
Demand forinputs (indirect)
Gastronomyservices
Laundryservice
Cleaningservice
Demand for food and drink
Production of agricultural goods
Fertilizers of the chemical industry
ifo Institut für Wirtschaftsforschung an der Universität München
9
3. Individual results: 2009
ifo Institut für Wirtschaftsforschung an der Universität München
10
Individual results: surveyed congresses
Ausgaben je Teilnehmer (befragte Kongresse)
- in Euro -
102
426
507
520
558
933
0 100 200 300 400 500 600 700 800 900 1000
MittelständischerUnternehmertag
RegenerativeMedizin
Gesellschaft fürNuklearmedizin
Diabetes-Gesellschaft
DOG-Kongress(Augenheilkunde)
LINC (Kongress fürGefäßmedizin)
Average: €382
4 days; ca. 50% foreign participants
4 days; ca. 20% foreign participants
4 days; national congress
4 days; national congress
3 days; ca. 25% foreign participants
1 day; regional meeting
LINC (Congress forVascular Medicine) DOG Congress(Ophthalmology)
Diabetes Society
Society forNuclear Medicine RegenerativeMedicine
Congress ofMedium-Sized Business
Expenditures per participant (surveyed congresses)
- in euros -
ifo Institut für Wirtschaftsforschung an der Universität München
11
Expenditure structure of the Congress participants- Comparison of the surveyed congresses -
23,631,3 31,5
38,734,1
15,1
25,2
19,6 19,8
19,024,2
32,9
19,723,8
29,123,3
15,8
15,4
5,6
5,2
4,0 4,1
3,5
10,8
3,7
3,93,8 4,0
6,88,94,1
4,33,7 4,9
10,48,314,5 5,4
5,0 2,4 2,55,5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LINC DOG Diabetes NuclearMedicine
Reg.Medicine
Med.-SizedBusiness
Misc. (incl.entertainment)
Representation
Extended stay
Local transport
Shopping
Gastronomy
Traveling costs
Accommodation
(% responses: difference to 100)
ifo Institut für Wirtschaftsforschung an der Universität München
12
Individual results: surveyed congresses
Ausgaben je Aussteller (befragte Kongresse)
- in Euro -
5.192
7.403
15.344
23.758
19.010
22.987
0 2.500 5.000 7.500 10.000 12.500 15.000 17.500 20.000 22.500 25.000
MittelständischerUnternehmertag
RegenerativeMedizin
Gesellschaft fürNuklearmedizin
Diabetes-Gesellschaft
DOG-Kongress(Augenheilkunde)
LINC (Kongress fürGefäßmedizin)
Average: €10,430
4 days
4 days
4 days
4 days
3 days
1 day
LINC (Congress forVascular Medicine) DOG Congress(Ophthalmology)
Diabetes Society
Society forNuclear Medicine RegenerativeMedicine Congress ofMedium-Sized Business
Expenditures per exhibitor (surveyed congresses)
- in euros -
ifo Institut für Wirtschaftsforschung an der Universität München
13
Expenditure structure of the Congress exhibitors- Comparison of the surveyed congesses -
21,727,2
21,8 23,5 24,6 25,9
13,0
21,4 30,019,8
22,625,46,2
11,4 3,1
8,89,6
10,424,2
18,2
18,918,0
24,318,3
16,6
6,38,0 13,5
8,314,39,6
8,7 10,5 10,55,2
1,46,3 5,7 6,9 4,7 4,9 3,1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
LINC DOG Diabetes NuclearMedicine
Reg.Medicine
Med.-SizedBusiness
Misc.
Gastronomy,entertainment
Accommodation
Advertising,representation
Traveling costs
Services for exhibitor
Stand construction
Personnel costs
(% responses: difference to 100)
ifo Institut für Wirtschaftsforschung an der Universität München
14
4. Overview, summary
ifo Institut für Wirtschaftsforschung an der Universität München
15
16,0
24,7
5,1 6,3
12,9
22,7
5,5 6,5
15,9
21,5
4,6 6,3
21,0 20,4
4,5 5,3
05
10152025303540
1. Traveling expenses 2. Gastronomy 3. Extended stay 4. Shopping
2002200420062009
Expenditure structure of the conference participants- Congresses 2002, 2004, 2006 and 2009 -
Total (2009): €36.4 million 2006: €33.1 million
+ 10.0%
Expenses per participant: €382
29,8
6,8 5,6 5,7
35,4
4,76,5 5,8
34,0
6,4 5,7 5,6
32,9
5,5 5,5 4,9
05
10152025303540
5. Accommodation 6. Representation 7. Local transport 8. Misc. (incl. entertainment)
2002200420062009
+ 8.8%
2006: €351
ifo Institut für Wirtschaftsforschung an der Universität München
16
21,7
12,6
29,6
15,1
24,2
10,7
28,3
13,8
23,5
10,3
27,7
15,4
23,1
10,2
25,2
18,4
0
10
20
30
40
50
1. Stand construction 2. Services for exhibitor 3. Personnel costs 4. Traveling expenses
2002200420062009
Total: €21.5 million
Expenditure structure of the congress exhibitors- Congresses 2002, 2004, 2006 and 2009 -
2006: €18.0 million
+ 4.8%
+ 19,4%
9,44,3 5,8
1,5
9,75,2 6,3
1,8
9,45,3 6,6
1,8
8,65,4 8,0
1,10
10
20
30
40
50
5. Advertising, representation 6. Gastronomy, entertainment 7. Accommodation 8. Misc.
2002200420062009
Expenses per congress exhibitor: ca. €10,430 2006: €9,954
ifo Institut für Wirtschaftsforschung an der Universität München
17
2002 2004 2006 2009
Total expenses (million €) 20.1 44.0 54.8 62.4
Spending in Leipzig (million €) 12.8 26.8 36.0 39.1
Expenditures per participant (€) 272 265 351 382
Expenditures per exhibitor (€) 8,488 8,827 9,954 10,430
Production in Germany (million €) 29.1 66.1 79.4 94.4
Employment in Germany (absolute) 418 931 1,077 1,235
Employment in Leipzig (absolute) 278 581 726 791
Tax revenue (million €) 5.7 12.6 15.1 19.6
Tax revenue in Leipzig (million €) 0.4 0.8 1.0 1.3
Indirect returns in Leipzig (x times) 9.6 13.6 13.8 12.3
Overview: congresses
ifo Institut für Wirtschaftsforschung an der Universität München
18
Summary (1 of 3)
1. The spending of the conference participants increased between 2002 and 2009 from €20 million to over €62 million. This also includes expenses incurred abroad (e.g., travel costs, stand construction of congress exhibitors). Of regional, state and national economic interest are the effects that are felt in Germany. For this, only the expenditures made in Germany and the resultant indirect outputs are considered. The economic variables determined in the Ifo study are the production activity, the jobs induced by the congresses and the tax revenues generated by CCL congresses.
2. A continuous increase of key economic indicators has been determined. Induced by the CCL congresses, not only the nationwide production activity increased from €29 million to over €94 million from 2002 to 2009, but also the number of congress-induced jobs increased from about 420 to nearly 1,250. In addition, tax revenue increases were triggered by the CCL congresses of just under €6 million to nearly €20 million.
In recent years, on behalf of the Leipziger Messe GmbH, the Ifo Institute for Economic Research has regularly analysed the economic impact of congresses for the region, the new federal states and the Federal Republic of Germany. For the period 2002 to 2009, the following key findings were determined:
ifo Institut für Wirtschaftsforschung an der Universität München
19
Summary (2 of 3)
3. This positive development was evident not only in Germany but also in the Free State of Saxony. In 2009, the CCL congresses in the Free State of Saxony generated an output of almost €56 million. This accounted for jobs for 875 people in the Free State of Saxony. The spending of visitors and exhibitors induced by the congresses also led to tax revenues for the Free State of Saxony: tax revenues of €5.7 million was the result of congresses conducted by CCL.
4. The indirect returns (event turnover for congress-induced turnover in Leipzig) as an indicator for the local significance of the CCL congresses rose from 9.6 to 12.3 in the period 2002 to 2009. A event turnover (in euros) thus generates more than a twelve-fold value in Leipzig . The reason for the slightly lower indirect returns in 2009 is that the growth of the CCL was stronger than the increase of international participants. The latter, however, also contributed to the congress events bringing about a clear increase in output, employment and revenue effects from 2002 through 2009.
ifo Institut für Wirtschaftsforschung an der Universität München
20
Summary (3 of 3)
5. Spending per delegate rose from €272 per participant (2002) to €382 (2009). This is attributable to the growth of national congress events, which in turn led to a greater number of trans-regional participants (participants the former West Germany and abroad) coming to Leipzig. Nationwide conference participants stay longer at the venue and spend more on accommodation and meals. Hotels and restaurants are therefore among the main beneficiaries of the CCL conference events.
6. Expenditure per congress exhibitor developed positively. In 2002 almost €8,500 was spent per exhibitors, and in 2009 it was more than €10,400. The increase is due in particular to the increased rental space per exhibitor: the larger stand space necessitated by exhibitors’ increase in personnel, which resulted in additional expenses at the venue. In the case of national exhibitors, this higher staffing led to more nights spent in Leipzig and also contributed to an increase in the economic impact.
ifo Institut für Wirtschaftsforschung an der Universität München
21
5. Excursus: competition analysis
ifo Institut für Wirtschaftsforschung an der Universität München
22
Düsseldorf Cologne Munich Essen Hamburg Leipzig 2007 2007 2007 06/08 2006 06/09
Total expenses (million €) 238* 208* 42.0 / 42.4 72 54.8 / 62.4
Expenditures in individual city(million €) 36.0 / 39.1
Expenditures per participant (€) 490 468 660 268 / 298 409 351 / 382
Expenditures per exhibitor (€) 9,954 / 10,430
Indirect returns in (x times) 16.7 16.6 13.8 / 12.3**
Production in G. (million €) 79.4 / 94.4
Employment in G. (absolute) 4,497* 4,097* 1,147* / 1,274* 1,769* 1,077 / 1.235
Employment in individual city(absolute) 3,215* 3,196* 656* / 708* 1,369* 726 / 791
Tax revenue (million €) 79* 67* 18* / 21* 15.1 / 19.6
Tax revenue inindividual city (million €) 0.6 / no info 1.0 / 1.3
Overview: congresses- Socio-economic effects -
* = Congresses and events
** = Turnover growth of the CCL is even stronger in relation to rising number of international participants; for this reason, lower indirect returns in Leipzig in comparison to 2006.
A
C
D
E
B