Advances in Tourism Economics, Lisbon

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Presentation at the Advances in Tourism Economics Conference in Lisbon, April 2009

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  • Insofar as the authors are aware of
  • Usually is not enough and public funding is needed
  • Usually is not enough and public funding is needed
  • Why should the public institutions fund these events?
  • Insofar as the authors are aware of
  • Meeting, Incentives, Conventions and Exhibitions
  • This tourism modality has become more and more significant for Lleida in hosted events as well as in event attendance
  • This tourism modality has become more and more significant for Lleida
  • To support knowledge transfer
  • To support knowledge transfer
  • To support knowledge transfer
  • To support knowledge transfer
  • To support knowledge transfer
  • To support knowledge transfer
  • To support knowledge transfer
  • A total of 92 events organizer were asked. Only 3 declined to answer
  • Distributed on shopping, food, urban transport, leisure, others (accomodation and fees were calculated by primary sources)
  • Most favorable All catalan attendants made expenses in the city // Intermediate 75% // Less favorable scenario only 50% of catalan did spend money in Lleida
  • Each euro in form of direct expenses associated to event organization is finally transformed to 2.66 euro approximately
  • Not only for social benefits generated by hosting events but also for the highly and positive economic impact
  • Advances in Tourism Economics, Lisbon

    1. 1. Universities as Events Organizers: Economic Impact and Importance as Business Tourism Authors: Jordi Sardà Eva Martín ATE 2009
    2. 2. Index ATE 2009 <ul><ul><li>Introduction </li></ul></ul><ul><ul><li>Business tourism </li></ul></ul><ul><ul><li>Events organized by UdL </li></ul></ul><ul><ul><li>Economic impact </li></ul></ul><ul><ul><li>Conclusions </li></ul></ul>
    3. 3. Economic impact by event organization ATE 2009 Extensive literature on impact achieved by event organization Literature on economic impact generated by ordinary activity at universities No studies focussing on the big significance of events organized by universities
    4. 4. University of Lleida (UdL) ATE 2009 Medium-small size university About 9,000 students in seven faculties Located in northeastern Spain
    5. 5. Lleida ATE 2009
    6. 6. University of Lleida ATE 2009 <ul><li>The event expenses are covered by </li></ul><ul><ul><li>Registration fees </li></ul></ul><ul><ul><li>Contributions from private companies </li></ul></ul><ul><ul><li>Public funding </li></ul></ul>
    7. 7. Public funding ATE 2009 Why should the public institutions fund the events organized by University of Lleida?
    8. 8. Benefits ATE 2009 <ul><li>Social benefits </li></ul><ul><ul><li>Good reputation </li></ul></ul><ul><ul><li>Contribut to enlarge global knowledge </li></ul></ul><ul><ul><li>New influx of tourist for professional reasons </li></ul></ul><ul><li>Economic benefits? </li></ul>
    9. 9. Main purpose ATE 2009 Analyzing the economic profit generated by organizing scientific and academic events at UdL And to see whether these benefits compensated the investment made by public institutions
    10. 10. Business Tourism ATE 2009 <ul><li>Also known as a MICE Industry </li></ul><ul><li>Europe is the continent hosting the largest number of meetings </li></ul><ul><li>Benefits in the host place </li></ul><ul><ul><li>Business tourist expends much more than other kind of tourists </li></ul></ul><ul><ul><li>Useful as a marketing tool </li></ul></ul><ul><ul><li>Infrastructure development </li></ul></ul>
    11. 11. Business Tourism in Lleida ATE 2009 Progress in hosted events
    12. 12. Business Tourism in Lleida ATE 2009 Progress in event attendance
    13. 13. Events organized by UdL ATE 2009 Attract people from all over Catalonia, Spain and the entire globe They will later consume in the city and bring in economic profits
    14. 14. Events organized by UdL ATE 2009 <ul><li>Classification by type: </li></ul><ul><li>Conferences </li></ul><ul><li>Workshops or symposia </li></ul><ul><li>Scientific meetings </li></ul>
    15. 15. Events organized by UdL ATE 2009 <ul><li>Classification by field: </li></ul><ul><li>Health and Medicine </li></ul><ul><li>Technology </li></ul><ul><li>Social Sciences, Economics, Law and Education </li></ul><ul><li>Language and Literature </li></ul>
    16. 16. Health and Medicine ATE 2009 27.3 % total events Most national tourists Funding by private companies
    17. 17. Social Sciences, Law, Economics and Education ATE 2009 47.3 % total events Most regional tourists
    18. 18. Technology ATE 2009 18.2 % total events Most international tourists
    19. 19. Language and Literature ATE 2009 7.3 % total events Various origins
    20. 20. Events organized by UdL ATE 2009 Only 3.2% of event organizer declined to provide the attendances origin, the revenues and the expenses The rest provide all the information
    21. 21. Revenues Event Organization ATE 2009 100.0% 1,185,183.46 Total 18.1% 214,557.00 Private 30.1% 357,105.24 Public 51.8% 613,521.22 Registration Percentage Total Source
    22. 22. Benefit ATE 2009 The economic benefits come from the money expended in Lleida by participants of the events
    23. 23. Benefit ATE 2009 Estimated by means of secondary sources Report on business tourism demand in Lleida (Turespaña)
    24. 24. Expenses by tourists ATE 2009 74.76 euros
    25. 25. Incomes ATE 2009 <ul><li>Three scenarios </li></ul><ul><ul><li>Most favorable (MFE) </li></ul></ul><ul><ul><li>Intermediate (IE) </li></ul></ul><ul><ul><li>Less favorable (LFE) </li></ul></ul>
    26. 26. Net results ATE 2009 229,106 276,865 301,534 317,511 372,145 381,233 Net result 240,804 216,700 240,804 216,700 240,804 216,700 Public Financing 469,910 493,565 542,338 534,211 612,949 597,933 Income 2007 2006 2007 2006 2007 2006 Less Favorable Scenario Intermediate Scenario Favorable Scenario
    27. 27. Net results ATE 2009 1.95 2.25 2.55 Year 2007 2.28 2.46 2.76 Year 2006 Less Favorable Scenario Intermediate Scenario Favorable Scenario
    28. 28. Net results ATE 2009 Yes, the benefits compensate the investment made by public institutions
    29. 29. Economic Impact ATE 2009 Input Output Metodology Measure the capacity of generating benefits by the organization of an event
    30. 30. Economic Impact ATE 2009 (Thousands euros) 2007 2006 LFE IE MFE LFE IE MFE 1,184.16 1,269.89 1,353.48 1,135.25 1,136.95 1,258.74 Induced Effects 2,549.71 2,740.90 2,927.33 2,458.98 2,519.94 2,734.27 Total Effects 409.49 442.52 474.75 399.83 418.44 447.26 Indirect Effects 956.06 1,028.49 1,099.10 923.90 964.55 1,028.27 Direct Effects
    31. 31. Impact distribution among sectors ATE 2009 17.26 Real Estate and Entrepreneurial Services 15.12 Others 6.61 Transports and Communications 11.34 Commerce 32.94 Hotel Management 100.00 Total 16.73 Manufactured Products Total % TIO Sectors Cat 2001
    32. 32. Economic Impact ATE 2009 Simple multiplier 1.43 Large multiplier 2.66
    33. 33. Conclusions ATE 2009 To cover the event expenses public funding is needed Why should public institutions support these events? Economically feasible generating a high yield of 250%
    34. 34. Conclusions ATE 2009 <ul><li>The events organized directly by UdL represent: </li></ul><ul><ul><li>10% of total events in the city </li></ul></ul><ul><ul><li>11-13% of total attendees at meetings of Lleida </li></ul></ul><ul><ul><li>16-18% of total economic impact of business tourism of the city </li></ul></ul>
    35. 35. Conclusions ATE 2009 Events organizes by UdL are more numerous than meetings organized by other actors in the city The economic impact is higher also because the duration is longer
    36. 36. Conclusions ATE 2009 This paper may serve as a decision tool for local governments to decide to invest or not to invest in events organized by UdL The results could be extrapolative to other events organized by other actors as Universidade Lusíada

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