The Economic Significance of Meetings to Mexico UNWTO Model #icca11 MONDAY 24/10/11

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Presentation on The Economic Significance of Meetings to Mexico UNWTO Model. Presentation by Eduardo Chaillo. #icca11 MONDAY 24/10/11

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The Economic Significance of Meetings to Mexico UNWTO Model #icca11 MONDAY 24/10/11

  1. 1. The Economic Significance ofMeetings to Mexico UNWTO Model
  2. 2. Purpose of the Study• Show meetings is an economic engine beyond tourism activity• Identify the importance of meetings to tourism• Provide a basis for on-going benchmarking• Justify investment in the meeting industry by destinations or Governments
  3. 3. Definition of a Meeting• Minimum of 10 participants, 4 hours in length, held in a contracted venue (LOCAL, DOMESTIC AND INTERNATIONAL)• Includes: conventions/conferences, trade shows/exhibitions, incentive events, corporate/business meetings• Excludes: consumer shows, social events, sports events, etc.
  4. 4. Research: Primary and Secondary Survey Audience Sample Completed Response Rate Primary Sample: Venue Managers 314 66 21% Mexico Meeting Organizers 88 31 35% OCVs 58 25 43% Supplemental Sample: US Meeting Organizers 10,445 266 3% Total 388Challenge: Culture of Sharing Information
  5. 5. Meetings Volume by Venue Type Venue Type Events % Lodging facility 159,900 81% Purpose-built 25,700 13% Other 11,800 6% 197,400 100% Challenge: Balance in infrastructure
  6. 6. Meetings Volume by Type Meeting Type Events % Corporate / Business 131,000 66% Convention / Conference 28,000 14% Incentive 6,300 3% Trade Show / Exhibition 4,400 2% Other 27,700 14% 197,400 100%Challenge: Match between destinations and market
  7. 7. Room Nights Generated by Meetings Meeting Type Room Nights % Corporate / Business 11.0 million 46% Convention / Conference 6.4 million 26% Trade Show / Exhibition 4.8 million 20% Incentive 1.4 million 6% Other 0.7 million 3% 24.3 million 100% Challenge: Getting hoteliers on board
  8. 8. Participant Volume by Meeting Type Meeting Type Participants % Corporate / Business 10.2 million 44% Trade / Exhibition 5.4 million 23% Convention / Conference 5.1 million 22% Incentive 0.6 million 2% Other 1.9 million 8% 23.1 million 100%Challenge: Demonstrating value of AssociationMarket
  9. 9. Meetings Participants by Origin Meeting Type Local Domestic Foreign Total Corporate / Business 5.4 million 4.6 million 0.2 million 10.2 million Trade / Exhibition 2.4 million 2.9 million 0.08 million 5.4 million Convention / Conference 2.0 million 2.9 million 0.2 million 5.1 million Incentive 0.02 million 0.2 million 0.4 million 0.6 million Other 1.5 million 0.4 million 0.01 million 1.9 million 11.3 million 10.9 million 0.8 million 23.1 million 49% 47% 4% 100% 51% of participants traveled to meetings. Challenge: so why so much investment?
  10. 10. Meetings Direct Expenditures Category Amount % Participants $10.5 billion 58% Net Production 5.1 billion 28% Other 2.5 billion 14% Total Direct Spending $18.1 billion 100% Challenge: Too good to be true
  11. 11. Meetings Relative to Tourism Tourism* Meeting $18.1 $100.7 billion billion Meetings Share of Tourism = $8.7 billion (9% of Tourism)Learning: This is not a “segment” of Tourism
  12. 12. Meetings Relative to Tourism “Unrelated” to Tourism = $9.4 billion Tourism* Meeting $18.1 $100.7 billion billion Meetings Share of Tourism = $8.7 billion (9% of Tourism) Challenge: Convincing Politicians of its Benefit
  13. 13. Foreign Participants• 830,000 foreign attendees to meetings• Foreign attendees accounted for 7% of travel participants and 11% of spending by travel participants• Foreign attendees spent an average of $1,092 per meeting for travel, registration, and other expenses
  14. 14. Mexico compared to US Category Mexico US Year of Study 2010 2009 Meetings 197,400 1,790,800 Participants 23.1 million 204.7 million Room Nights 24.3 million 250.0 million Direct Spending $18.1 billion $263.4 billion Tourism Output $100.7 billion $708.3 billionLearning: We are not so bad!
  15. 15. The Great Numbers (Direct) Indication of Direct Economic Contribution: Industry Output $18.1 billion Contribution to GDP* $12.1 billion Employment* 441,000 Labor Income* $2.7 billion *Note: based on ratios from third-party sourcesChallenge: How and What should weCommunicate ?
  16. 16. What a contribution !*Indication of Total (Direct, Indirect, Induced) Economic Contribution:Industry Output $32.5 billionContribution to GDP $25.1 billionEmployment 784,000Labor Income $4.7 billion *Note: Based on multipliers from third-party sources
  17. 17. Next Steps• Development of model for future updates• Potential for continual data collection and benchmarking• Potential to develop the significance of meetings at the state, local, and individual event level
  18. 18. Where is Mexico in Tourism?Mexico is one of the top ten tourist Tourists Arrivalsdestinations in the world: Place Country 2010 (Millions) 22.4 millions visitors in 2010 1 Francia 76.8 6.3 millions cruise visitors 51.3 millions Border crossers 2 EE.UU. 59.7Tourism represents 9% of the GDP. 3 China 55.7Third largest source of foreign currency 4 España 52.7earnings. 5 Italia 43.6More than 2.5 millions direct jobs & 7.5 …….million indirect jobs 10 México 22.4 1st 10th Source: UNWTO, 2011 … 18
  19. 19. Sun and Beach Destination ? 19
  20. 20. 64% Mexico’s Visitors come to Sun and Beach Destinations ! Los Cabos Mazatlán Cancún/ Riviera Maya Puerto Vallarta / Riviera Nayarit Ixtapa Acapulco Huatulco 20
  21. 21. Lead Destinations for Large Congresses Monterrey Los Cabos Mazatlán Cancún/ Riviera Maya Guadalajara Puerto Vallarta / Riviera Nayarit Mexico City Ixtapa Acapulco HuatulcoMexico moved up in the ICCA ranking from 27º to 22º place with 140 congresses in 2010 21
  22. 22. New destinations for Meetings Chihuahua Monterrey Tampico Los Cabos Zacatecas Mazatlán Cancún/ Morelia Riviera Maya Mérida Guadalajara Puerto Vallarta / Puebla Veracruz Riviera Nayarit Querétaro Mexico City Cuernavaca Ixtapa Acapulco Huatulco 22
  23. 23. Building right now! Tijuana Chihuahua Monterrey Tampico Los Cabos Zacatecas Mazatlán Morelia Cancún/ Mérida Riviera Maya Guadalajara Puebla Veracruz Querétaro Puerto Vallarta / Riviera Nayarit Campeche Mexico City Ixtapa Oaxaca Acapulco HuatulcoECONOMIC BENEFITS FROM MEETINGS AND EVENTS INDUSTRY ARE BROAD -BASED 23
  24. 24. Meetings Industry Overall Benefits to MexicoCity wide meetings and UN summits have impacted local and regionaleconomies such as:  World Water Forum Mexico City 2006  Universal Forum of Cultures Monterrey 2007  XVII AIDS Conference Mexico City 2008  UN World Wilderness Forum Merida 2009  ITU Guadalajara 2010  COP 16 (legacy in sustainable business culture, recycling and eolic energy infrastructure). Cancun 2010 We have to be able to measure education, innovation, knowledge shared and Legacy 24
  25. 25. Important Expansion in CVBs Conventions and Visitors Bureau7060 565040 273020100 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 25
  26. 26. Meeting Space has grown by 148% Venues80 868,497.25 m2 677060 545,335.9 m250 4440302010 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 26
  27. 27. Major Convention Centers PALACIO DE CONVENCIONES Zacatecas CENTRO DE CONVENCIONES Mazatlán27 27

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